Turnaround Tuesday

Tale of The Tape

Good evening ladies and gentlemen. Markets snapped their four-day losing streak. 🤗

Nifty and Sensex rebounded from morning lows as investors bought the morning dip. Midcaps and Smallcaps also pushed higher. Both closed up +1.8% each. The advance-decline ratio (4:1) remained firmly in favor of the bulls. 🐂

There was a green wave across the board. Metals (+3.3%) topped the list of gainers. PSU Banks (+2.5%) and Real Estate (+2%) stocks also saw healthy gains. 💪

Paytm finally got some love from investors. The stock jumped +10% today. ✅ PS it’s still down over 30% from its issue price.

Bharti Airtel (+2%) added 3 lakh new customers in September, as per the latest industry data. On the other hand, Reliance Jio lost a staggering 1.9 cr subscribers. Read more below. 📊

Latent View Analytics took the W. The stock closed at Rs 490 per share, +2.5x from its IPO price. 🤑

Vedanta rallied +6%. The company’s promoters will buy 17 cr shares at a price of Rs 350 apiece. 💰

Raymond (+11%) hit a new all-time high. Reports indicate that the company may reorganize its businesses. 💯

Vodafone Idea will increase the prices of prepaid plans by 20% from Nov 26. 📈 The stock closed flat.

Greaves Cotton (+7%) opened its largest EV production facility in Tamil Nadu. 🔌

The global crypto market declined 2%. Bitcoin and Ethereum fell ~2.5%. Solana slipped 3%. Shiba Inu (-6.5%) continues to grind lower. 📉

Here are the closing prints:

Nifty	17,503	+0.5%
Sensex	58,664	+0.3%
Bank Nifty	37,273	+0.4%

Wrong Number?

The Telecom Regulatory Authority of India (TRAI) subscriber data for September is out and the numbers don’t look good for Reliance Jio. 😢

Jio lost 1.9 cr users. (Not so) Fun Fact: This is the first time the operator lost users in over 18 months. 🤯 But, the management in the recent earnings call played down the loss in its user base.

Jio offered various Covid-related benefits to its users to help them stay connected. However, it has since pulled the plug on these incentives resulting in a big drop. Delay in the launch of the JioPhone Next also added pressure. Vodafone Idea’s misery continued. The operator lost over 10 lakh users. ⏬

On the other hand, Bharti Airtel is absolutely killing it. The telecom operator added ~3 lakh new customers in September and increased prices for the second time in four months. ✌

Not Coming Soon?

MobiKwik has pushed back its IPO plans indefinitely. 👎

Earlier, media reports suggested that the payments firm could delay its public offer by 2 to 3 months. The company is seeking to raise Rs 1,900 cr from the markets. MobiKwik was aiming to list at a valuation of around $1 billion. 💸

Paytm’s disappointing listing plus lack of demand from institutional investors are cited as key reasons for the delay. MobiKwik received its regulatory approval in October. The company now has a year to launch its IPO. ⏱️

Talk about a chain reaction. Notably, BharatPe founder Ashneer Grover believes Paytm’s listing has brought the curtains down on the IPO cycle in India. Specifically, Grover told the media that it’s all but over for the fintech IPOs in the current cycle. Ouch. 😧

Delivering The Goods

One of Swiggy’s key investors, Prosus, gave a sneak peek into the food delivery startup financials. And it looks yum. 😋

Swiggy’s gross merchandise value (GMV) rose 69% YoY to $984 million in the first six months of FY22. Meanwhile, its core food delivery biz saw a 56% growth over the previous year. An increase in order value plus higher revenue from delivery fees led to the growth. ⏫

Swiggy also recorded a whopping 75% growth in its grocery business. Quick commerce is one of the fastest-growing verticals in India and is estimated to grow 16x by 2025. Swiggy also announced a new Swiggy One membership program. The new membership program seeks to push its core users who are ordering food towards its other verticals. 🛒

Swiggy is betting big on online grocery. But, stiff competition from both organized and unorganized players, wafer-thin margins, and high cash burn are key challenges.😬

New Dog On The Block

We have a new rival to Dogecoin. Meet, Shih Tzu! Another dog-based token named after a playful and outgoing dog breed that originated in Tibet. 🐕‍🦺

But what really is Shih Tzu? For starters, a multi-chain-based wallet, a metaverse gaming, and an ecosystem of NFT marketplace are under the umbrella of Shih Tzu. The project is designed to support animal rights initiatives through the sales of the NFTs created by its community.

Shih Tzu witnessed an insane rally in two hours. The meme token was up by over 2000X. In other words, Rs 1,000 on Shih Tzu would have turned into Rs 60 lakhs in 2 hours. Just when you think you have seen it all, the world of cryptocurrency continues to throw a surprise. 🤯

The meme token has been riding the momentum generated by NFT and metaverse gaming. But, experts do not believe the rally to be sustainable. Our advice: stay as far away as you can from this one.