Zomato up 5 percent, Rice producing companies rally

Indian Markets:

• Nifty 50 Movement: The index opened lower at 17,653.35 and, while it briefly turned positive during early afternoon trading and hit the day’s peak at 17,666.15, it later retracted and closed below 17,620
• The major stock indices suffered their third consecutive decline amidst growing uncertainty over the path of U.S. monetary policy.
• IT and PSU banks took a hit, while metals, oil & gas, and realty shares bucked the trend.
• Investors have become increasingly cautious, as concerns over the U.S. monetary policy outweighed optimism about China’s economic recovery.
• The release of the Fed’s Beige Book report later on Wednesday is being closely monitored for the central bank’s assessment of the U.S. economy

Global Markets:

• The Dow Jones index futures were down 116 points, indicating a weak opening in the US stocks.
• European shares tumbled while Asian stocks settled mixed on Wednesday as officials of the U.S. Federal Reserve delivered mixed signals on future rate hikes.
• The UK saw a decline in consumer price inflation to 10.1% in March, with a drop in motor fuels and housing and household services, while food and recreation/culture became more expensive.
• In the US, major indexes closed near the flatline Tuesday, as investors reviewed earnings reports from Goldman Sachs and Bank of America.

Stocks in Spotlight:

• Zomato’s shares rose 5% during the afternoon trade on April 19, following the announcement that most of its Blinkit stores have reopened after wage protests. Since April 12, Blinkit’s delivery executives have been on strike, demanding the reversal of recent changes to incentive structures. The proposed change is seen as a significant reduction in potential earnings by the delivery executives.
• Shares of rice producing companies saw significant gains on April 19, following a report by Fitch Solutions stating that the global market for rice will experience its biggest shortfall in two decades this year. Factors such as rising temperatures and supply disruptions due to the Russia-Ukraine war and the Covid pandemic have caused a decline in rice production across the world. Sanctions on Moscow have only added to the supply woes, leading to a sharp increase in rice prices. The Fitch Solutions report predicts that rice prices are likely to remain high until 2024, due to the ongoing production challenges in the industry.
• JK Tyre and Industries is set to expand its current capacity by 2 million units per annum by the end of the financial year 2023-24, as it seeks to meet the growing demand from automakers. The company plans to invest Rs 800 crore in the scaling-up exercise, with the bulk of the capex, Rs 530 crore, going towards increasing the output of passenger car radials (PCR). The remaining amount of Rs 270 crore will be spent on capacity expansion of truck and bus radials (TBRs). Singhania, a fourth-generation member of the promoter family, confirmed the plans.

News from the IPO world?

• EbixCash receives SEBI clearance to float IPO
• Mankind Pharma sets IPO price band at Rs. 1026-1080
• Zepto hires new CFO ahead of IPO

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