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Tale of the Tape

Good evening y’all. Markets rallied for a fifth straight day. ❣

Nifty and Sensex rose +1% each. Lower than expected inflation and strong industrial production data boosted investor sentiment. Midcaps (+1.5%) and Smallcaps (-0.1%) traded mixed. 📈

All sectors, except for Real Estate (-0.2%), closed higher. Auto stocks (+3.4%) were miles ahead of the others. IT stocks (+1.2%) snapped their two-day losing streak. 👍

Tata Motors rallied +20%. TPG Group will invest $1 billion in the company’s EV business. The stock hit the highest level since Feb 2017. Read more below. ⚡

Buy buy buy. The mega-deal between Tata Motors and TPG Group had a positive rub-off on Tata Group stocks. Tata Power, Tata Chemicals, and Tata Investment Corporation rallied +14%. Check out their charts below. 🤑

No shit. Avenue Supermarts rallied +8% to cross the Rs 3 lakh crore market cap figure. The stock is up +19% in the last 5 days. 🙏

Infosys (+1.1%) reported earnings post-market hours. Its Q2 results were above Street expectations on all key parameters. Read more below. 📊

Reliance Industries (+1%) invested $29 million in German solar panel maker, NexWafe. 💸

Centrum Capital rose +13% after the Reserve Bank of India (RBI) issued it a license to operate as a small finance bank. 

The Aviation ministry allowed domestic airlines to operate at 100% capacity. SpiceJet rose 4% while InterGlobe Aviation closed down 1%. ✈

UltraTech Cement (+1%) started a new plant in West Bengal. This will enable the company to address the strong cement demand in the Eastern markets. 🏭

Cryptos traded off day’s low. Bitcoin was down 3%. Ethereum was up 0.5%. Solana (+4%) and Polkadot (+6%) saw decent gains. ✌

Here are the closing prints:

Nifty 18,162 +0.9%
Sensex 60,737 +0.8%
Bank Nifty 38,636 +0.3% 

All Electric ⚡

Tata Motors was the star of the day. The stock rallied +20% after TPG Group announced it will invest $1 billion in the company’s EV business. 💰

What’s the deal bruh? TPG will acquire a 15% stake in the new company. The deal values Tata’s EV business at a whopping $9.1 billion. TPG will infuse the funds in a staggered manner over the next 18 months. The first round is expected to be completed in March 2022. Tata Motors will use these funds to expand its electric offering, set up charging points across India, and develop new-age battery tech. 🔋

N Chandrasekaran, Chairman at Tata Motors said:
I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We will continue to proactively invest in exciting products that delights customers… We are excited and committed to play a leading role in the Government’s vision to have 30% electric vehicles penetration rate by 2030.

Big picture: Electric vehicles are still at a nascent stage in India. But, Tata Motors dominates the space with a 70%+ market share. The company is clocking over 1,000 units in EV sales every month. As of FY21, Revenues from the EV business stood at Rs 500-600 crore. Tata Motors will gain big-time from its early mover advantage and strong brand equity, say experts. Revival in both passenger car and commercial vehicle business plus easing debt burden are additional positive triggers.✅

Check out the latest episode of Stocktwits & Friends. In this episode, we have Harsh Dixit aka  @TrendonomicsHD with us. Harsh is an independent trader with 10 plus years of practical experience in Trading Stocks, Indices, F&O and Commodities. His trading setup revolves around Price Action, Breakouts and Elliott Waves.

In this episode, Harsh goes on to explain why he prefers Technical Analysis, Strategy of option buying, Sectors that look bearish to him and much more. Watch here –

Only Tata

Tata Motors’ big bang announcement had a positive rub-off on Tata Group stocks. Tata Power, Tata Chemicals, and Tata Investment Corporation rallied +14%. Check out their charts below: 🤑

Overheard on Stocktwits

Here’s an interesting chart setup by Anosh Mody on Stocktwits that might interest you. Add $CDSL.NSE to your watchlist and track its performance. 

Earnings Roundup

Infosys (+1.2%) reported better than expected Q2 earnings. Broad-based growth across its key verticals drove the outperformance. Margins remained steady despite higher costs. The company won new orders worth $2.1 billion during the quarter. Here are the key stats: 📊

  • Revenue: $4 billion; +6% QoQ (vs Est: $3.9 billion)
  • Net Profit: Rs 5,421 cr; +4% QoQ (vs Est: Rs 5,254 cr) 

Salil Parekh, CEO and MD at Infosys said:
Our stellar performance and robust growth outlook continue to demonstrate our strategic focus and the strength of our digital offerings. As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities have uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred partner in the market.

Enthused by the strong performance, Infosys raised its FY22 revenue growth guidance to16.5-17.5% vs 14-16% earlier. 👍 Margins are expected to remain steady in the range of 22%-24%. 

Infosys share price is +36% YTD. 📈

Fellow IT companies Wipro and Mindtree posted earnings that were in line with Street expectations. Wipro guided for 2%-4% topline growth in Q3. No real surprises here. Tune in tomorrow for more details and reactions. 🤓

Mark The Dates

Be sure to know when your stocks report earnings. Here’s the earnings calendar: