Hello,
A very Happy Independence Day to all.
As we celebrate 75th Independence Day today, Markets are at a lifetime high. Our nation has the potential to achieve much more in the coming decades than what we have achieved in the last 75 years. The rising GST Collections & Foreign capital rushing in the country are signs of economic recovery from the pandemic and the dream of achieving a $5 trillion economy is not far. Before we discuss events of financial markets in the week gone by, do subscribe to this newsletter 👇
In case you have read previous newsletters, I have talked about Nifty hovering below 16000 and it has finally closed above 16500 this Friday. The index closed 1.8% higher (290 Points) with strong support coming in from the IT index which ended 4% higher this week, whereas Pharma stocks tumble ahead of Q1 results.
The Mid and Small-cap space has outperformed Nifty in the last 6 months but the picture might change as the money is shifting from small-cap stocks to large caps. The Bombay Stock Exchange has issued a notification to restrict massive movement in the share prices. Later the exchange clarified that it will only apply to certain categories of companies. You can read this in detail here.
Key Results announced his week:
We had a massive commodity & material cycle (which ain’t likely to pause) in the last 4-5 months. Steel and sugar companies were major participants of this rally. The Steel Giant Tata Steel released its Q1 earnings this week. It posted the highest ever quarterly consolidated EBITDA of Rs.16,185 crores. The total revenue from operations saw a jump of 109.5% to ₹53,372 crore as against ₹25,662 crores in Q1FY21. The company expects steel demand continue to improve with the waning 2nd wave of COVID-19.
The debutant Zomato reported a Net loss of Rs 360.7 crore as against Rs 99.8 crore in the same quarter last year. This is largely on account of non-cash ESOP expenses. Revenue rose 22% QOQ to Rs 844.4 crore. The company stated it will conduct earnings con-call for investors & analysts only once at end of the fiscal year. No key metrics of business were shared in the results. Meanwhile investors to Zomato -
Voda-Idea released its quarterly earnings yesterday and posted a consolidated loss of Rs 7,319 crore in Q1FY22 against Rs 25,460 crore loss in the same quarter last year. The consolidated revenue from operations declined by about 14 % YOY to Rs 9,152.3 crore. It also suffered 12.3 million subscribers loss and present liabilities are at 1.91 lakhs crore 🤯. The Avg revenue per user popularly known as ARPU stands at Rs 104 vs Rs 146 for Bharti and Rs 138 for Jio.
Major Events:
The Ed-tech platform Upgrad raised a whopping $185 Million and became the 21st Unicorn of 2021.
Tata is likely to enter the semiconductor business amid a global semiconductor chip shortage. They aim to set up an independent semiconductor manufacturing unit. Read more about this here.
HDFC Securities to enter low-cost brokerage business, well some competition for Zerodha !!
Sapphire Foods, which operates around 437 KFC, Pizza Hut and Taco Bell stores across India, Sri Lanka and Maldives have filed for an IPO. The company raised ₹ 1,150 crores from PE investors. It is a direct competitor of Devyani International which is likely to be listed tomorrow.
Biggest Crypto Heist
Hackers stole around $600 million in cryptos from Poly Network which is a Defi (Decentralised Finance) Platform. Total token hacked was $611 MN of which Ethereum was $273M, Binance Smart Chain was $253M and Polygon was $85M. The hacker returned most of it and got rewarded a $500,000 bug bounty. Even after this some of my friends think cryptos are safe. I beg to differ.
That’s all folks, see you next Sunday.
Cheers!