Nifty50: 15,752 ▼ 28 (-0.1%)
Sensex: 52,907 ▼ 111 (-0.2%)
Hey there, earthlings!
Fashion shows are all about supermodels walking the ramp in the latest fashion. But a man from Fiji turned the whole thing on its head. He hilariously imitated the models, donning everyday objects like a ladder, buckets and even a wooden bench!
Anyway, the markets ended lower today, as oil stocks took a huge spill. More on that later.
- Markets recouped most of the early losses to close nearly flat amid weak global cues.
- In all, 39 of the Nifty50 stocks closed in the red.
- GST collection for the month of June 2022 stood at ₹1.44 lakh crore, up 56% year-on-year.
Among the Nifty sectoral indices, FMCG (+2.8%) and Realty (+1.5%) were the top gainers, while Oil and Gas (-4.1%) was the sole loser.
| Top gainers | Today's change |
| ITC | 284 ▲ 11.2 (+4.1%) |
| Bajaj Finance | 5,617 ▲ 217 (+4.0%) |
| Bajaj Finserv | 11,315 ▲ 383 (+3.5%) |
| Top losers | Today's change |
| ONGC | 131 ▼ 20 (-13.3%) |
| RIL | 2,406 ▼ 189 (-7.3%) |
| PowerGrid | 206 ▼ 5.3 (-2.5%) |
What’s trending
⭐ Monthly auto sales rise 🚗
MARUTI (NSE): 8,399 ▼ 70 (-0.8%), TATAMOTORS (NSE): 413 ▲ 1.9 (+0.4%)
Major auto manufacturers announced monthly sales numbers today. In June 2022, Maruti Suzuki reported a 5.7% rise in sales to 1.55 lakh units. Meanwhile, Tata Motors sold a total of 82,462 vehicles, a rise of over 78% compared to June 2021. Higher monthly sales indicate a demand revival in the auto sector, which has been affected by high input costs and shortage of electronic components.
⭐ Phoenix Mills gets investment from GIC 💰
PHOENIXLTD (NSE): 1,173 ▼ 10 (-0.9%)
Shares of retail mall developer and operator Phoenix Mills rose by nearly 2% intraday after three of its subsidiaries received investments worth ₹400 crore. The second tranche of investment was done by GIC, a sovereign wealth fund owned by the Government of Singapore through private placement. With this investment, GIC now holds 32.9% stake in these subsidiaries.
⭐ Import tax on gold hiked 👑
GOLD (MCX): 51,654 ▲ 1,137 (+2.2%)*
The government has hiked the basic import tax on gold from 7.5% to 12.5%. India is the world’s second-largest consumer of gold, and the move is aimed at curbing gold imports amid a record fall in the rupee. India’s total gold import stood at 107 tonnes or $6.03 billion in May 2022, and the figure is expected to be higher in June.
* as of 5 pm on Friday, 1 July.
⭐ Home sales dip in Q1 🏡
Housing sales across seven major cities have declined 15% in Q1 FY23 as compared to the previous quarter, according to an industry report. This is due to a rise in property prices and interest rates. The report said that inflationary pressures on input costs have compelled developers to increase prices, while RBI's rate hikes have made home loans costlier.
⭐ US stocks see worst fall in 50 years! 📉
As concerns over rising inflation grow, US stocks saw their worst drop in the first six months of a year in the last 50 years. So far in 2022, the S&P 500 is down nearly 21%. Meanwhile, the Dow Jones Industrial Average is down more than 16%, while Nasdaq is down about 25%. The drop comes after the US economy shrunk by 1.6% in the first quarter of 2022 amid a record trade deficit.
In Focus
Crude awakening for oil exporters
The government had given the oil producers a reason to cheer on Wednesday. But even before celebrations could end, the government has pulled the rug from under their feet, sending oil stocks reeling. If we look at Reliance Industries (-7.3%), its shares fell 8.7% intraday on Friday. This is its biggest intraday drop since November 2020. What's happened? Here are the deets.
On Friday, the government introduced an additional export tax on petrol, diesel and aviation turbine fuel (ATF). The tax has been set at ₹6 per litre for petrol and ATF, and at ₹13 per litre for diesel.
With rising international prices, exports have become very attractive for refiners, and they've begun to prioritise sales to overseas markets. The new rules will require oil companies to sell the equivalent of 50% of the petrol and 30% of the diesel they export to domestic buyers.
On the flip side, after this levy, supplies in the domestic market are likely to be boosted. It could also potentially bring down the price at which domestic oil marketing companies like HPCL (+4%) and BPCL (+2%) purchase fuel.
That's not all though. The government has also imposed a hefty tax on oil producers that have been benefitting from the higher global crude prices. Producers will have to pay a special additional excise duty (SAED) of ₹23,250 per tonne on domestic crude production.
The government said that crude prices have risen sharply. And due to this, domestic oil producers are making windfall gains by selling crude to domestic refineries at international prices. Hence, a duty is being introduced, but it won't affect fuel prices at India’s petrol pumps.
The new taxes are expected to impact earnings of refiners like Reliance Industries and Mangalore Refinery (-9.9%), and oil producers like ONGC (-13.3%) and Oil India (-14.8%). Understandably, stocks nosedived on Friday. But is this an overreaction? To answer that, we'll have to see how this plays out.
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Good to know
What is a private placement?
A private placement is a sale of shares or bonds to pre-selected investors rather than on the open market. A private placement can be an alternative to an initial public offering (IPO) for unlisted companies, or a follow-on public offering (FPO) for listed companies. Investors that are generally invited to participate in private placement include HNIs, banks, mutual funds, insurance companies and pension funds.
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