Market News and updates

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The market was elated on the news of the RBI’s stance to keep rates unchanged. It is great to see that all sectoral indices ended the day in the green. Maximums traction was in the Nifty Bank (+2.05%), which was supported by ICICI Bank, SBI and Axis Bank. Even the market breadth was positive with 39 of the Nifty50 stocks closing with gains today. The Nifty50 ended the week 2.2% higher, extending its upward move into the fifth consecutive week. 

Ceement major Ultratech at lifetime high on news:-

The market has seen Cement major Ultratech see crossing lifetime high today. It has lined up capacity expansion to the tune of 12.8 million tonnes per annum (mtpa) with an investment of 5477 cr. The expansion will be in the eastern, central and northern regions of India. Interestingly, the capex will be funded through internal sources and the company envisages that it will not impact its ongoing plan to become debt-free. The company, which has a 22.3% market share, announced its capex plan at a favourable time. The cement industry is witnessing healthy volumes due to demand from the rural economy and the government’s focus on building infrastructure in the country.

Indigo fly high on positive news:-

The people started to feel more confident to travel. That’s why domestic airlines are now permitted to operate at 80% capacity of pre covid level. This is an increase from 70%. Currently, about 2.5 lakhs people travel by air per day, compared to 30,000 in May. Shares of airline companies such as Interglobe Aviation (+5.7%) and Spicejet (+9.9%) rose today.

RBI keeps same rates, revises GDP forecast :-

The market took RBI’s stance positive. Due to high inflation and better than expected economic recovery RBI kept the rate same. GDP forecast also indicates a positive sign. This means that economic growth in the second half of this fiscal is likely to be better than the first half. The central bank’s accommodative stance favours a rise in the markets, especially in rate-sensitive sectors.

The market is expecting a fresh round of stimulus in the US rise. Global equity markets are seeing high buying interest. On the other hand, the US dollar index has slumped to its lowest point this year. Markets move based on fundamentals in the long term, but in the short term, liquidity (or even expectations around liquidity) can drive the markets.

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