September 23, 2021

Stonks Only Go Up

Tale of the Tape

Happy Thursday everyone. Markets hit new all-time highs!!! 🚀

Nifty and Sensex rallied 1.6% each. No negative surprise from the US Federal Reserve meet. Plus easing concerns over Evergrande’s debt repayment boosted sentiment. Midcaps (+1.5%) and Smallcaps (+0.8%) saw decent gains. 📈

All sectors closed in the green. Real Estate (+8.5%) stocks continued their insane rally. Banks and NBFC rebounded sharply; up +2% each. 🤑

Zee Entertainment saw profit booking after yesterday’s massive rally. The stock closed down -5%. 👎

Bharti Airtel (+0.1%) said its Rs 21,000 cr rights issue will open on October 5. Here are more details. 📊

Japanese agri equipment maker, Kubota Corp, is in talks to increase its stake in Escorts (-1%). Here’s ET with more. 💸

JBM Auto (+13%) won the order to supply 500 CNG/electric buses. 🚌

Reliance Jio continues to lead by example. The market leader added 65 lakh new subscribers in July vs 19 lakh for Bharti Airtel. Meanwhile, Vodafone Idea lost 14 lakh customers. 📱

RattanIndia Enterprises (-1%) forayed into the drone business. ✅

Paras Defence and Space Technologies IPO was oversubscribed 304x on the final day. 💪

Cryptos rebounded after heavy selling in the last few days. Bitcoin jumped +4%. Ethereum gained 6%. Cardano (+5%), Solana (+12%) and Doge (+7%) also advanced. 🤗

Here are the closing prints:

Nifty	17,823	+1.6%
Sensex	59,885	+1.6%
Bank Nifty	37,772	+2.2%

Max Power

JSW Energy is the best-performing power generating company in the world. The stock has gained +5x this year. I know what you’re thinking: What the heck is going on here? 🤯

Sajjan Jindal-led JSW Energy is one of India’s leading power-producing companies. In August, power demand in the country increased 18% YoY, surpassing pre-Covid levels. Demand is set to increase further as the economy returns to normalcy. This is a big W for the company. 🏆

The Street is also excited about JSW’s expansion plans. The company will invest Rs 70,000 cr over the next 10 years to scale up its green business. By 2030, JSW is hopeful of generating 20GW of power entirely from renewable sources. Two months back, the company announced it is partnering with Australia’s Fortescue Future Industries to enter the green hydrogen space. ♻

Investors are also hyped about the company’s restructuring plans. As per media reports, JSW Board is considering listing its green business separately. Buzz of a global energy giant tying up with the company has added to the optimism. All we can say is: Green is our new favorite color 💚

Bring It On

Oyo is set to file papers for its $1.2 billion IPO next week, as per media reports. Details are scarce but reports indicate the IPO will be a mix of fresh issue and offer for sale. 💰

Founded in 2013, Oyo is an online hotel aggregator. The startup claims to have a network of 100,000+ small hotels and homeowners. Oyo has aggressively expanded to many markets including Southeast Asia, Europe, and the U.S. in recent years. SoftBank, Airbnb, and Sequoia Capital are amongst its largest investors. The company recently raised $5 million from Microsoft at a valuation of $9.6 billion. 😎

The Covid-19 pandemic hurt Oyo’s aggressive growth plans. Lack of travel hurt business. Growth slowed and thousands were laid off. But, travel demand has seen a sharp revival in recent months. Hotels are going full thanks to easing restrictions and record daily vaccinations. 🧳

Oyo now has its task cut out. Must revert to its high growth trajectory and turn profitable. 📊

Crypto 101

Hello and welcome to “Crypto 101”, our weekly feature where we explain complicated crypto terms in simple language. In today’s class, we’ll explain what is crypto mining and who are crypto miners. 🤓

What is crypto mining?

Crypto mining is the process by which new coins enter into circulation. You do so by verifying crypto transactions happening on the blockchain network. Individuals who validate these transactions are called miners. 👩‍💻

How do they do it?

Crypto mining has evolved considerably over the years. Miners need to invest in high-end graphic cards or GPUs (graphics processing unit) and ASIC (application-specific integrated circuit) to mine Ethereum and Bitcoin. It is common these days for miners to use hundred of computers to verify transactions on the blockchain. 🖥

Why do they do it?

Say you buy a cup of coffee using your credit card. The bank acts as an intermediary by verifying the transaction. Without its verification, you can’t transfer the money.

Miners play the role of banks by verifying crypto transactions. Miners will then receive transaction fees in the form of newly created Bitcoins, or any other cryptocurrency they verify. 🤑