Nifty50: 18,255 ▲ 165 (+0.9%)
Sensex: 61,749 ▲ 555 (+0.9%)
Dear readers,
Do you know what day it is today? It’s International Firefighters Day! Today we celebrate the brave men and women who run into burning buildings while the rest of us are still trying to figure out which shoe goes on which foot.
These are the real-life superheroes who don't need a cape to save lives, just a trusty hose and a whole lot of courage. So, let's take a moment to appreciate these amazing firefighters and the hot stuff they deal with every day. Speaking of hot, the markets today were pretty hot n’ happening too. Let’s take a look.
- Markets close in green above 18,200 after a small dip yesterday
- In all, 33 of the Nifty50 stocks closed in the green
- US Fed Reserve hikes key rate by 0.25%, marking the 10th consecutive increase
Among the Nifty sectoral indices, PSU Bank (+1.2%) and Metal (+1.2%) were the top gainers, while FMCG (-0.1%) was the only marginal loser.
| Top gainers | Today's change |
| Adani Enterprises | 1,925 ▲ 86 (+4.6%) |
| Bajaj Finance | 6,379 ▲ 198 (+3.2%) |
| HDFC | 2,862 ▲ 74 (+2.6%) |
| Top losers | Today's change |
| IndusInd Bank | 1,131 ▼ 15 (-1.3%) |
| UPL | 731 ▼ 8.1 (-1.1%) |
| Nestle India | 21,717 ▼ 157 (-0.7%) |
What’s trending
⭐ Indian markets bounce back
Indian markets gained nearly 1% today after the outcome of the US Fed meeting was in line with expectations. The US central bank hiked its key interest rates by 0.25% on Thursday. This was the tenth rate hike in a row. Click here to know more.
⭐ PSU insurance stocks rally
Share prices of several PSU insurance companies such as GIC (+17.7%), New India Assurance (+11.6%) and LIC (+0.1%) made substantial gains today. Experts feel that the double-digit growth in quarterly net profit of listed peers like ICICI Lombard, HDFC Life and SBI Life is having a rub-off effect on other companies.
⭐ HDFC’s Q4 profit soars
The housing finance company reported a standalone net profit of ₹4,425 crore for Q4FY23, up 20% YoY. Meanwhile, its net interest income (NII) grew by 16% YoY to ₹5,321 crore. The company said demand for home loans remained strong despite interest rate hikes. The company also announced an interim dividend of ₹44 per share for FY23.
⭐ Dabur reports flat profit growth
Shares of the FMCG major closed 1.5% lower today after the company posted middling Q4 results. The company’s net profit for the quarter was ₹300 crore as against ₹294 crore, indicating a flat growth of 2.2% YoY. However, its consolidated revenue for the same period grew by 6.4% to ₹2,677 crore. The company has proposed a final dividend of ₹2.70 per share.
⭐ Bajaj Consumer gains traction
Shares of Bajaj Consumer Care rallied over 10% today. This comes after the company reported a revenue growth of over 14% to ₹249 crore, with a net profit of ₹40.4 crore for the March quarter. Meanwhile, the company posted strong volume growth of 9.9% in the March quarter and 5.6% for FY23. The board also declared a dividend of ₹5 per share.
In Focus
Go First closure unnerves listed entities
Low-cost airline Go First filed for bankruptcy this week. The company cited a cash crunch and the unavailability of Pratt & Whitney engines as the main reasons for its predicament. Although the airline is not listed on the stock exchange, its bankruptcy has sent shockwaves through several listed companies. Here are the complete details:
Companies that faced the brunt
Following the bankruptcy announcement, shares of PSU banks such as the Central Bank of India and Bank of Baroda witnessed a sharp decline of 4 to 5%. Both these banks have extended loans to Go First Airlines, with the Central Bank of India having the highest exposure at ₹1,987 crore. For Bank of Baroda, the exposure is ₹1,430 crore. As a result, shares of these banks have been trading under pressure this week.
Meanwhile, the budget carrier has total liabilities of over ₹11,000 crore, owed to banks, other financial institutions, vendors, and aircraft lessors.
Besides banking, shares of Wadia Group companies, including Bombay Burmah, National Peroxide, and Bombay Dyeing, have also underperformed and are down 3 to 7% this week. The Wadia Group has a stake of over 32% in Go First Airlines. In FY22, Go First’s reported losses (-₹1,804 crore) were more than the combined profits (+₹1,305 crore) of all four listed Wadia Group companies.
Who made hay?
While the grounding of Go First airlines is certainly not good news for the industry, listed airlines like Indigo and SpiceJet witnessed positive movement. Shares of these companies gained 3 to 7% this week. Why?
Experts believe that Go First’s bankruptcy could lead to existing players gaining market share and a 10-15% increase in airfares on domestic routes. In March 2023, Go First's market share was 6.9%.
All in all, the fate of Go First Airlines now lies with the National Company Law Tribunal (NCLT), which will hear its insolvency petition. Will Go Airline take to the skies again? We will have to wait and watch.
Powerful buying made simple!
Markets often see sharp price movements triggered by positive news or technical patterns. In such situations, you may want to double down on certain high-conviction trades. However, having limited capital could be an obstacle in leveraging such opportunities. With Margin Trading Facility (MTF) on Upstox, you can increase your trading capacity instantly. Click here to know more about MTF.
Benefits of MTF:
🔹 Get 2X leverage on equity delivery orders
🔹 Borrow up to ₹25,00,000 at a time
🔹 Hold stocks bought via MTF for up to 365 days.
Phrase of the day
Going Long
When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’. When should you go long, find out from this chapter What does going Long mean?
Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.