Nifty50: 15,692 ▼ 39 (-0.2%)
Sensex: 52,541 ▼ 152 (-0.2%)
Wassup, folks!
Markets may not have been consistent in these past few weeks amid surging inflation and tightening monetary policies. But India’s ace javelin thrower Neeraj Chopra is a prime example of Mr. Consistent. In his first event since the Tokyo Olympics, the 24-year-old won silver with a throw of 89.30m, bettering his own national record of 88.07m.
Meanwhile, Maruti Suzuki’s shares have rallied on strong growth prospects. More on that later.
- In another range-bound session, markets swung between positive and negative before closing lower.
- The market breadth was even with 25 stocks closing in the green and 25 closing in the red.
- Investors are cautious as they await the outcome of the US Fed meeting, which is indicating an aggressive rate hike to combat rising inflation.
Among the Nifty sectoral indices, Auto (+0.9%) and Pharma (+0.3%) were top gainers, while Oil and Gas (-0.7%) and Metal (-0.7%) lost the most.
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| Top gainers | Today's change |
| Bajaj Finserv | ▲ 4.2% |
| Bajaj Finance | ▲ 2.2% |
| TATA Motors | ▲ 1.9% |
| Top losers | Today's change |
| ONGC | ▼ 3.1% |
| NTPC | ▼ 2.0% |
| Infosys | ▼ 1.3% |
For more updates on F&O, click here.
What’s trending
⭐ Paytm sees solid loan growth 💸
PAYTM (NSE): 614 ▲ 7.7 (+1.2%)
Shares of One 97 Communications (Paytm) were up by over 2% intraday after the company reported 5.5 million loan disbursals aggregating to ₹3,576 crore in the first two months of FY23. The loan value disbursed grew 829% year-on-year mainly due to a low base effect (May 2021 loan disbursements stood at ₹385 crore).
⭐ Nod for 5G spectrum auction 📡
BHARTIARTL (NSE): 681 ▼ 1.0 (-0.1%), IDEA (NSE): 8.7 ▼ 0.05 (-0.5%)
The cabinet has approved the much awaited auction of the 5G airwaves. The airwaves will be auctioned for a period of 20 years. The final list of bidders will be declared on July 20. Companies can pay for the spectrum in 20 annual instalments. The amount will need to be paid in advance at the start of each year.
⭐ Shiprocket to acquire Pickrr 🤝
ZOMATO (NSE): 69 ▼ 0.7 (-1.0%)
Shiprocket, the Zomato-backed logistics tech company, announced that it has entered into an agreement to acquire a majority stake in courier aggregator Pickrr. Shiprocket will pay $200 million in cash and shares for the deal. Shiprocket raised $185 million last year in a Series E funding led by Singapore-based Temasek.
⭐ Chicken get inflationary wings
VENKEYS (NSE): 1,940 ▲ 1.8 (+0.1%), GODREJAGRO (NSE): 514 ▼ 0.8 (-0.1%)
Chicken seems to have flown off the plate as retail prices are up by over 30% to ₹240/kg this summer. Skyrocketing prices of poultry feed such as maize and soybean have contributed to rise in prices. Also, a prolonged heat wave this year has led to a decrease in supplies, pushing up prices further. Prices are expected to cool off only after October, when new harvesting of soybeans begins..
⭐ Bitcoin touches record low 😱
Amid a selling frenzy, Bitcoin plummeted to near five-year low of $21,000. The top cryptocurrency has fallen for nearly 12 straight weeks, from nearly $49,000 in March to around $21,000. In November 2021, Bitcoin had touched an all-time high of over $68,000.
In Focus
Maruti Suzuki on a roll 🚗
Shares of Maruti Suzuki, India’s largest automobile manufacturer, seems to have moved into top gear. The stock price is up by over 8% in the last one month, outperforming the benchmark Nifty50 index, which has fallen 0.9% in the same period.
Investors seem optimistic amid expectations of recovery in consumer demand in the second half of the year. The company’s total market share fell to 43% in FY22 from 51% a year ago. However, the company plans to cover lost ground through upgrades of its bestselling cars. In April 2022, Maruti launched upgrades of Ertiga and XL6 and plans to upgrade Brezza and Baleno in the coming months.
In addition, Maruti has lined up launches of four new SUV brands in the next 2 years, including a midsize SUV in collaboration with Toyota, which will increase its portfolio offerings and gain market share in the SUV segment. The shift towards CNG vehicles amid rising petrol prices will also benefit the company as it has a strong CNG product portfolio.
In May 2022, the company’s total sales stood at 161,413 (domestic + exports). The shortage of electronic components had a minor impact on the production of vehicles. However, the sales were well above the pre-Covid sales figures (January 2020 sales: 154,123).
IPO Corner
Despite the rising market volatility, domestic mutual funds have continued to invest in IPOs. In May, these mutual funds invested around ₹7,800 crore in the eight IPOs including LIC, Delhivery and Paradeep Phosphates. Of the ₹7,800 crore invested, a lion share (₹4,112 crore) of funds went to the LIC IPO.
Good to know
What is Return on Equity (RoE)?
Return on equity (RoE) is a measure of a company’s financial performance. It is calculated by dividing the net income of the company by its shareholders’ equity. The figure indicates how effectively the company is managing shareholders’ funds. The ideal level of RoE varies across sectors. As an investor, one should compare the RoE of a given company to the average for the company's sector or its peers.
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