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Relief Incoming

Tale of the Tape

Good evening folks. Happy Engineer’s day. 🤗

Markets broke out after trading sideways recently. Nifty and Sensex hit new all-time highs as strong exports (+45% YoY) and softer inflation data lifted sentiment. Midcaps (+1%) and Smallcaps (+0.7%) also moved in sync. ✌

All sectors except Media (-1.6%) closed higher. State-owned Banks (+2.8%) topped the list of gainers. IT (+1.8%) and Energy (+1.5%) also saw big gains. 📈

Telecom stocks were the center of attention after the Government announced a series of relief measures. Bharti Airtel soared +4.5%. Vodafone Idea closed up 3%. Read more below. ✅

Zee Entertainment was volatile AF. The stock closed down 2% after rallying +14% in early trade. PS. Rakesh Jhunjunwala bought 50 lakh shares of the company yesterday. 🎢

The Union Cabinet approved a Rs 26,000 cr production linked incentive (PLI) for the Auto sector. The scheme will boost the production of EVs and hydrogen fuel vehicles and create 7.5 lakh new jobs. 💰

Rice stocks were in high demand. LT Foods, Chaman Lal Setia, and KRBL gained between 3%-6%. Check out their charts below. 💸

SpiceJet (+6%) is in talks to acquire Air India, as per media reports. 🛫

NCC (+7%) received the order for Bangalore metro rail construction. 🚇

Cryptos climbed higher. Bitcoin bounced up 3%. Ethereum crossed above the $3,400 mark. Solana dipped ~5%. Doge traded 1% higher. 👍

Here are the closing prints:

Nifty 17,519 +0.8%
Sensex 58,723 +0.8%
Bank Nifty 36,852 +0.7% 

It’s All Going To Be Fine?

Telecom stocks were in focus all day. The highly anticipated (and much leaked) telecom relief package was finally announced. The Government approved a host of measures to aid the ailing sector. 🤗

The most important announcement was the change in the Adjusted Gross Revenue (AGR) definition. Under the new rules, non-telecom revenue will not be counted for calculating AGR dues. ✅ 

Prior to today, teleco’s were required to pay dues even on non-telecom-related revenue. This has been their #1 demand in the 14-year long legal battle with the Government. 

A four-year moratorium on unpaid dues and 100% Foreign Direct Investment (FDI) via the automatic route were some of the key announcements. Here’s ET Telecom with the complete low down.

Vodafone Idea will gain the most from these measures. Vodafone Idea owes Rs 60,000 cr in AGR dues to the Government. This move will help reduce the financial burden on the company and boost cash flows. Improving financial health along with a revamped strategy may ensure the company’s survival. Bharti Airtel, which is in a much better financial condition than Vodafone Idea, should get even stronger. 💪 All’s well that ends well. 

Topping The Charts

Rice stocks were in high demand. Below average monsoon coupled with bumper export demand drove prices higher. LT Foods, Chaman Lal Setia and KRBL gained between 3%-6%. 🤑 Check out their charts below:

Rice production relies significantly on monsoon. 🌦 As per estimates, India has received 10% below normal rainfall this year. Punjab and Telangana, the top two rice-producing states, have been adversely affected by this. India is also the world’s largest exporter of rice. Erratic weather conditions in neighboring countries like Bangladesh, China among others have further pushed demand. This in turn has seen prices go up by 20-25% in key markets. 📊

Apple’s Magical New iPhone Lineup

Apple spent the afternoon rolling out the red carpet for its swath of new products. 🎬 🌟

Apple announced a new iPad, iPad Mini, iWatch, and four new iPhones during a 77-minute keynote held this afternoon. All of the devices featured some meaningful hardware upgrades. The best part? None of the devices saw significant increases in price, which was an imminent concern given ongoing shortages. 👏

The standout products from today’s keynote were Apple’s four new phones. All of the phones flexed more powerful chips, brighter and sturdier displays, bigger batteries, and more storage than previous generations. But the real standout features were Apple’s latest iPhone cameras. 📸

The two mid-range phones — the iPhone 13 Mini ($699) and iPhone 13 ($799) — have two upgraded camera sensors for wide and ultra-wide pictures. The two premium phones in the lineup — the iPhone 13 Pro ($999) and iPhone 13 Pro Max ($1099) — have three (telephoto, wide, and ultrawide).

All four phones run on the backbone of Apple’s new A15 Bionic chip, which Apple claims is the “fastest chip ever in a smartphone.” The high-end Pro and Pro Max have an even-stronger version of the A15 than the midrange phones. All phones will be available for preorder starting this Friday, with shipping beginning on Sept. 24.

$AAPL stock closed -0.96% on the day.