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Maal Laav

Tale of the Tape

Happy weekend everyone. Markets gained for a 5th straight week! 🤗

Nifty and Sensex closed flat after hitting record highs. Sensex topped 60,000 in its fastest 10K point rally ever. ❣ Midcaps (-0.8%) and Smallcaps (+0.1%) witnessed profit booking. Two stocks declined for every one gainer. 

Most sectors ended lower. Metals (-2.1%) and PSU Banks (-1.8%) topped the list of losers. IT stocks (0.8%) were buzzing after Accenture’s stellar Q4 results. 💪 Here’s more details.

Sansera Engineering kicked things off in style. The stock closed up 10% on its Dalal Street debut. ⭐

PVR dipped 4% after CRISIL downgraded the company’s long-term debt rating. 👎

ICICI Lombard gained 1%. French insurance major, AXA, may sell its entire stake in the company, according to media reports. 💸

Action Construction Equipment (-3%) will raise funds via QIP. The issue price is fixed at Rs 242 p/sh. That’s a discount of 7% over Friday’s closing price. 📉

IRCON International (+3%) won new orders worth Rs 224 cr. 👷‍♂️

Aditya Birla Sun Life AMC’s Rs 3,000 cr IPO will open next week. Read more below. 💰

Cryptos nosedived after China banned all crypto-related transactions. Bitcoin slipped 4%. Ethereum fell 8%. Solana cracked 9%. 😥

Here are the closing prints:

Nifty 17,853 +0.2%
Sensex 60,049 +0.3%
Bank Nifty 37,830 +0.2%

Sweet 60s

Sensex is officially a senior citizen. 👴 The benchmark index crossed the 60,000-mark for the first time ever. It is also the fastest 10,000 points rally in its history. Asia’s oldest stock exchange took less than a year to achieve this feat. Honestly, we’re not complaining. 

What’s fueling the rally? The economy rebounded sharply post the easing of lockdown curbs. Hopes of improved earnings and record vaccinations bode well for the outlook. ✅ Also, Inflation, which has been a cause of worry, cooled off to a 4-month low in August. Low inflation means interest rates can stay low. Easy money policies by global central bankers have further boosted the rally.

With the economy on track and pandemic under control (for now), investors are hopeful. Going forward, experts predict sectors like banks, real estate, and IT to outperform. 😎

Though we are in a strong bull market, there are risks to monitor. Concerns over Chinese property giant, Evergrande, defaulting on its debts and the potential impact on global markets is the #1 worry for investors. 👀

Ready To Rumble

Aditya Birla Sun Life AMC IPO will open on Sept 29. The price band is fixed at Rs 695-712 per share. The company plans to raise Rs 2,768 cr from the markets. 💸 

Aditya Birla Sun Life AMC is the 4th largest asset management company in India. The fund house manages 135 schemes with assets under management (AUM) of Rs 3 lakh cr. The company also offers services like portfolio management, offshore, and real estate. In the last five years, the company’s total investor folios have +2x from 2.9 million to 7 million. They also have a strong pan India presence with an army of +66,000 registered mutual fund distributors. 📊 

Financial Snapshot:

  • FY21 Revenue: Rs 1,191 cr; -3.5% YoY
  • FY21 Net Profit: Rs 526 cr; +6.5% YoY 

The mutual fund industry will benefit big time from increasing retail participation. A record 25 lakh SIP accounts were opened last month. With just 4.3 cr accounts, the growth opportunity is huge. 🤑 But, it won’t be a cakewalk either. 

Lately, there’s been a mad rush of companies entering the mutual fund business. Bajaj Finserv, Mobikwik, Navi Mutual Fund (run by Sachin Bansal), and most recently Groww, who acquired Indiabulls Mutual Fund for Rs 175 cr. Everyone wants a slice of the $444 billion Indian mutual fund industry. 🔥

Having said that, the company’s strong brand value, diverse product offerings, and wide distribution network are key positives. Roll the red carpet, please. 🙌

Make It Rain

Meesho is in talks to raise up to $600 million. Led by Fidelity, the latest funding round could more than double its valuation to $5 billion! 🍾

Founded in 2015, Meesho is a social commerce platform. It basically helps sellers connect with customers on social media platforms like WhatsApp, Facebook, and Instagram. It also provides order management, logistics, and online payment services to its clients. The startup claims to have a network of +13 million entrepreneurs, mainly women, dealing in groceries, fashion, and electronics. Elevation Capital, Sequoia, and SoftBank are amongst its largest investors. 🛒

The overall social commerce market is a huge opportunity. According to estimates, the total market size is set to grow from the current $2 billion in 2020 to $20 billion by 2025. Meesho is currently the largest player in this space. But, competition is steadily rising with the likes of Flipkart, DealShare, and CityMall stepping up their game. Let’s see how this goes. 👍

Movers and Shakers

Here’s a look at this week’s top movers from the Nifty 500. Godrej Properties took the pole position after rallying +35%. 🥇Oberoi Realty (+26%) posted its highest-ever weekly gain. Adani Transmission (-15%) snapped its seven-week gaining streak. 📉 Central Bank of India tripped over 9%. Honorable mentions: Zee Entertainment rallied +24% after announcing its merger with Sony. NDTV ripped 32% amidst rumors of Adani group acquisition. 📺 Check out their charts below: