Domestic benchmark indices opened in the green on Tuesday after a long weekend. The markets were closed on Monday due to Independence Day celebrations. The Sensex was up nearly 400 points or 0.67% at 59,850, while the NSE Nifty 50 added 133 points or 0.76% to breach 17,800 levels.
The markets made a sharp U-turn on Friday as the headline gauges closed in the red on Friday amid a volatile session. The BSE Sensex quoted at 59646.15 points, down 1.08% or 651.85 points, while the NSE Nifty closed at 17758.45 points, down 1.10% or 198.05 points. The losses in financial and oil & gas shares offset the gains in IT shares.
Market Movers
Some of the top gainers during the week were Hikal Ltd. (Up 20.92%), Solara Active Pharma Sciences (Up 20.53%), Gujarat Alkalies & Chemicals Limited (Up 18.02%), RattanIndia Enterprises Limited (Up 17.62%) and Campus Activewear Limited (Up 17.1%).
On the other hand, some of the top losers were Inox Leisure Limited (down 12.76%), PVR Limited (down 12.17%), Aster DM Healthcare Limited (down 11.79%), Muthoot Finance Limited (down 10.94%) and Ipca Laboratories Limited (down 9.49%).
The Recap
In this week’s recap, we shall take a look at the WPI inflation, the future of Paytm’s CEO, the cement industry’s weak quarter and more.
WPI Inflation fell for the second consecutive month
WPI Inflation eased for the second consecutive month in July, led by lower food, metals and chemical prices.
The fall would have been sharper if mineral oil prices and electricity tariffs weren’t increased.
Experts say that going ahead, the signs of global supply chain normalisation coupled with recession fears in major economies might support the downtrend in commodity prices.
The Indian markets were just 2000 points away from all-time highs
The Indian stock markets received a boost from positive global equities and lower oil prices on Tuesday. The BSE Sensex quoted at the 60,000 level, while the Nifty held on to 17,900 levels.
The Sensex was just 2,000 points away from its all-time high of 62245 points that it hit in October last year.
Experts said that the decline in inflation, declining crude, strong growth momentum, good monsoon and above all FIIs turning into consistent buyers in India have turned the sentiments in favour of the bulls.
What does the future hold for Paytm’s founder Vijay Shekhar Sharma
A proxy advisory firm last week recommended that shareholders replace the founder as CEO, citing concerns about his ability to reverse losses at the payments provider.
Paytm’s founder Vijay Shekhar Sharma’s future is in the hands of the company’s shareholders.
Shareholders will decide whether they want him at the helm of the fintech pioneer or not. His role as the CEO is among the items to be voted on at the company’s annual general meeting.
The cement industry’s weak quarter that leads to a fall in prices
The second quarter of any fiscal year is generally weak for the domestic cement industry as construction activities slow down due to monsoon rains and cement prices fall at this time.
The cost of key inputs like petroleum coke and coal remain elevated in the September quarter and companies cannot pass on the burden to customers.
As a result, the margins of cement companies contract and the stocks reel under pressure.
The data monetization buzz related to IRCTC
IRCTC’s shares ascended from ₹ 671.65 to ₹752.75 apiece levels in the last two sessions, logging a 12% increase in a short span of time.
The market was buzzing about the railway PSU selling its passenger database, which may help it generate additional revenue that would enable it to improve its margins.
However, IRCTC clarified that it was exploring business opportunities in new areas and it had floated a tender, merely to appoint a consultant.
Written by Simran Bafna
