Hi, Ashish here,
Welcome to this edition of the newsletter, make sure you subscribe and share it with your friends.
Well, a lot of activities have taken place this week on Dalal street. To begin with, Nifty 50 closed 3.70% (618.4 points) higher for the week with strong support from all the sectors. The index closed at 17,323 at a lifetime high. Key sectors that shined last week were Nifty realty (Up 10%), Nifty Energy (Up 5%) and Nifty Metals (Up 4.1%). Nifty Bank also closed 3.2% stronger and is yet to break its previous highs of 37,700 made earlier in February this year.
I still remember when we started this newsletter on 1st August, First newsletter was titled Long wait to 16000.
Finally, the index broke out its two long month range and today we are at 17300. Just Bull Market things !! 😎
Mota Bhai finally Roars
Reliance, the largest company in the country (Mcap wise), has started moving after being rangebound for more than a year. The stock was stuck in a range of 1900 to 2300 after announcing back to back investments in JIO Infocomm Ltd and its Retail arm last year. Now that RIL has turned to the renewable energy business, it aims to invest Rs 75,000 crore in four renewable energy gigafactories over the next 3 years. The share closed 7.23% higher this week at its lifetime high making it the first company to cross the market capitalization of Rs 15 Lakh Crore.
Q1 GDP Growth touched a record high on a low base
Despite 2nd wave of Pandemic, India records 20.1% GDP Growth in Q1 FY22. This is on account of a weak base of last year i.e. Apr 20 to June 20 when the rate was contracted by 24.4%. Growth in exports, the strong performance of the Agricultural sector and rise in GST collections along with pent up demand is supposed to push GDP growth further.
What’s happening at AU Small Finance Bank?
In the last few months, four key managerial people had either changed their roles or resigned from the company, which led to a steep fall in the share price of the bank. The stock is down 16% from its recent highs and continues to be under pressure despite good results and NPA numbers. But, the resignation from auditors citing personal reasons is a sign of caution as per me. To read more about AU SFB, check out this blog.
Talking about SFB, Tally solutions which provide Business ERP software to MSMEs in semi-urban and rural areas has applied for a small finance bank license. RBI on Monday said it received applications from Bengaluru-based Tally Solutions for ‘on tap’ license to operate as small finance banks. Looks like everyone wants a piece of cake 🍰
IEX, INDIAMART, POLYCAB and others Zoom ahead of addition into FnO Segment
10 new stocks were added in the futures and options segment from the September series and most of them rallied from 3 to 25 per cent last week. IEX surged almost 25% ahead of a new milestone in its trading volume. IEX is India’s premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates. It has more than 95% market share. Polycab and Indiamart both have rallied 17 and 13 per cent respectively this week.
Bharti to raise money via Rights Issue
On 29th August, Bharti Airtel announced a rights issue at Rs 535 (CMP Rs 658). The eligibility will be one equity share (right) for every 14 equity shares held by eligible shareholders as on the record date. The company’s capital raise move will keep leverage stable and is credit positive, says Moody’s.
Maruti to call back more than 180000 Cars
The largest auto manufacture decided to recall petrol variants of Ciaz, Ertiga, Brezza, S-Cross and XL6 manufactured between May 4, 2018- October 27, 2020 to replace faulty motor-generator unit. The company is also facing a semiconductor chip shortage which will lead to a cut down in vehicle production in September by 60 per cent.
Strong Demand ahead of Festive season but no Chips
Monthly Auto numbers were reported this week and strong demand is seen across all verticals but is restricted by global chip shortage. Check out this blog to know more about auto monthly sales data.
Also here is a podcast of the week on Deepak Nitrite.
Hit that 💛 button in case you like the newsletter and share it with your friends. That’s all for this week, see you next Sunday.
Take Care :-)