Nifty50: 17,340 ▲ 181 (+1.0%)
Sensex: 58,115 ▲ 545 (+0.9%)
Howdy, people!
Wondering how the weekend went by so quickly? Well, you are not alone. As a matter of fact, the Earth broke its record for the shortest day as it completed a full spin 1.59 milliseconds lesser than its standard 24-hour rotation on Saturday!
While we can’t tell you why the Earth is spinning faster, we can tell you what is causing the markets to rally. More on that later.
- After a gap-up opening, benchmark indices extended their gains for the fourth straight day.
- In all, 38 of the Nifty50 stocks closed in the green.
- A whopping 68 lakh income-tax returns were filed till 11pm on Sunday alone!. Till 30 July, more than 5 crore tax returns were filed.
Among the Nifty sectoral indices, Auto (+3.2%) and Media (+2.3%) saw the most gains, whereas Pharma (-0.08%) closed flat.
| Top gainers | Today's change |
| TATA Motors | 480 ▲ 30 (+6.7%) |
| M&M | 1,234 ▲ 70 (+6.0%) |
| Adani Ports | 801 ▲ 37 (+4.8%) |
| Top losers | Today's change |
| Sun Pharma | 916 ▼ 26 (-2.8%) |
| HDFC Life | 545 ▼ 10 (-1.8%) |
| HUL | 2,597 ▼ 40 (-1.5%) |
What’s trending
⭐ Auto sales rise in July
MARUTI (NSE): 8,994 ▲ 221 (+2.5%), M&M (NSE): 1,234 ▲ 70 (+6.0%)
Auto stocks were in the fast lane on Monday, powered by strong monthly sales figures. Market leader Maruti Suzuki reported an 8.2% rise in sales in July to 175,916 units. Meanwhile, Mahindra & Mahindra reported 33% y-o-y rise in passenger vehicles (PV) sales to 28,053 units. Tata Motors sales increased by 57% y-o-y to 47,505 units in the PV segment.
⭐ Airline stocks take off on ATF price cut ⛽
INDIGO (NSE): 1,888 ▲ 20 (+1.0%), SPICEJET (NSE): 40 ▲ 1.9 (+4.9%)
Shares of airline operators were upbeat on Monday. The rise comes after the aviation turbine fuel (ATF) prices were cut by 12% on the back of easing international crude oil prices. ATF reportedly accounts for 50-55% of the operating cost for airlines.
⭐ Astral launches bathware range 🚿
ASTRAL (NSE): 1,889 ▲ 74 (+4.0%)
Leading pipe maker Astral Limited on Monday announced the launch of its bathware range. The company also acquired an existing ready-to-use bathware manufacturing unit to facilitate timely production. In October 2021, it had announced its entry into the faucet and sanitaryware business. According to the company, the faucet and sanitaryware division has a market potential of nearly ₹15,000 crore in India.
⭐ JK Paper on a roll 🎢
JKPAPER (NSE): 370 ▲ 23 (+6.7%)
JK paper reported a net profit of ₹264 crore, up 154% year-on-year (YoY) in Q1FY23. In the same period, the company’s revenue also rose 109% (YoY) to ₹1,508 crore. The management attributed this strong performance to higher production and sales volumes along with enhanced sales realisation and a better product mix. It also added that the demand for paper continues to be strong.
⭐ Manufacturing activity at 8-month high
Manufacturing activity in India picked up pace in July, driven by better demand and higher sales. India’s Purchasing Managers’ Index, a barometer of manufacturing activity based on a survey of purchasing managers, rose to 56.4 from 53.9 in June. The survey also noted that the robust demand for raw materials meant that cost burdens continued to rise.
In Focus
Foreign investors are back
In the past few weeks, investors must have noticed a turnaround in the Indian markets. Instead of selling pressure led by fund outflows by foreign portfolio investors (FPIs), the benchmark indices are witnessing a steady rise.
In fact, in July alone, the Nifty50 index rose over 8.7%. This reversal in market sentiment coincides with FPI inflows. After nine consecutive months of selling, FPIs turned net buyers last month. But why this change in sentiment? Let’s explore.
FPIs infused ₹4,989 crore in Indian equities and were net buyers in nine trading sessions last month. The turning point for net inflow was the softness in the dollar after its record high. Further, the US Fed chairman dismissed chances of a US recession and signalled a slowdown in rate hikes going forward. This change in narrative may have prompted foreign investors to return.
Also, strong corporate earnings during the first quarter seems to have lifted the mood for foreign investors. Moreover, the recent correction in the equity markets offered a good entry point to FPIs to invest again.
While the markets celebrated the return of foreign investors in the last few weeks, market experts are still cautious. They believe that the recent buying by FPIs is based on short-term trends in the US, and any aggressive rate hike by the US Fed could worsen the outflows in emerging markets, including India.
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Good to know
What is mark-to-market settlement?
Marked-to-market, or mark-to-market (MTM) settlement, refers to the process by which the profit or loss made on an open position of a derivatives contract is adjusted on the same day from the trader's account. The MTM calculations are done based on the closing price of the day. With the help of brokers, the exchange collects the losing amount from a trader who has suffered a loss and pays the same to the gaining party.
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