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Will Crypto Survive In India?

Tale of the Tape

Happy Wednesday everyone. Markets closed down. ๐Ÿ“‰

Nifty and Sensex dropped sharply in the last hour of trade to close near dayโ€™s low. Midcaps (-0.4%) and Smallcaps (+0.6%) traded mixed. The advance-decline ratio was evenly split. ๐Ÿ˜ถ

Most sectoral indices closed lower. IT (-1.5%) and Auto (-1.3%) stocks topped the list of losers. Banks (+0.4%) closed in the green for a second straight day. โœŒ

Zee Entertainment jumped 6%. Media reports of the companyโ€™s merger with Sony entering the final stages cheered investors. ๐Ÿ˜‡

Latent View Analytics was locked in a 20% upper circuit. Paytm (+18%) rose for a second straight day. Policybazaar rallied +6%. Check out their charts below. ๐Ÿ“ˆ

Lyka Labs was locked in a 5% upper circuit. Ipca Laboratories (+0.2%) will acquire a 26% stake in the company. ๐Ÿ’ฐ

Indian Overseas Bank and Central Bank of India rallied +10% on privatization rumors. ๐Ÿ’ช

Ajanta Soya was locked in a 20% upper circuit. Renowned investor Dolly Khanna acquired a 1% stake in the company. ๐Ÿค‘

Coal India (+2%) will consider the proposal of interim dividend on Nov 29. โœ…

Balaji Amines (+0.5%) resumed production at its DMF plant. The facility had been shut down due to a minor incident in October. ๐Ÿญ

Media reports of the Government banning all cryptocurrencies triggered widespread panic. Bitcoin was down 10%. Ethereum dropped 8%. ๐Ÿ’”

Here are the closing prints:

Nifty 17,415 -0.5%
Sensex 58,341 -0.6%
Bank Nifty 37,442 +0.5%ย 

Back To Square One?

The debate around the Indian governmentโ€™s stance on cryptocurrencies is back to where it all started. ๐Ÿ˜“

So, what happened? The government is set to introduce a bill on cryptocurrency in the upcoming parliamentary session. Complete details about the bill are not out yet. However, its summary suggests the government wants to halt all cryptos bar select ones. It also seeks to create a framework for a cryptocurrency backed by the Reserve Bank of India (RBI). ๐Ÿšซ

In other words, the bill is similar to what the government had in the previous parliamentary session. Notably, recent reports indicated that the government may allow people to buy and sell cryptocurrencies like any other asset class. This triggered panic selling across the board with Bitcoin and Ethereum crashing over 20%. Crypto exchange Wazrixโ€™s servers were fried as investors rushed to sell their holdings. ๐Ÿคฏ

What next? Experts have expressed disappointment with the bill summary. But, are hoping for a progressive bill allowing investors to (at least) trade all cryptos. All eyes are now on the finer details on the crypto bill. ๐Ÿ‘€


Team Work Is Dream Work

Petrol and diesel prices may dip in the upcoming weeks following a global effort to control rising oil prices. ๐Ÿค—

India has decided to release 5 million barrels of crude oil from its Strategic Petroleum Reserves (SPRs). Why now? Oil prices reached a 7-year high. Brent crude currently trades above $82 a barrel. ๐Ÿ“ˆ

Indiaโ€™s move is a coordinated effort with the US, Japan, China, Britain, and the Republic of Korea. The US will release 50 million barrels of crude oil from its SPRs. The coordinated release may add around 70 million barrels to the global market. ๐Ÿ›ข

Crude oil accounts for a major portion of Indiaโ€™s imports. Any reduction in crude oil prices reduces the governmentโ€™s burden and eases its finances. Also, oil prices are perfectly correlated with inflation. This means if oil prices rise, inflation also rises which is negative. ๐Ÿ˜Ž


Chartbusters

Shares of recently listed companies saw healthy gains despite overall market weakness. Latent View Analytics (+20%) added on its listing gains. Paytm (+18%) and Policybazaar (+6%) also advanced. Check out their charts below: ๐Ÿ“ˆ


Another One

NoBroker became the 36th startup to achieve Unicorn status in 2021. Party hard guys! ๐Ÿพ

The company raised $210 million in its latest funding round led by Tiger Global and General Atlantic.ย  The Series E financing round valued the startup at $1 billion. NoBroker will use these funds to ramp up its product team, and to enter new markets. โซ

Founded in 2013, NoBroker allows people to buy or rent houses without a middleman. The startup operates in six cities like Bengaluru, Delhi, and Hyderabad. NoBroker marketplace has over 7 million properties with 16 million+ transactions done through its platform. The company has expanded its platform to offer loans, and housekeeping services. It also provides logistics support to help people move homes. โœŒ๏ธ

The proptech market is heating up with private investments in the sector hitting a record $551 last year. The expansion of Indiaโ€™s middle-class, increased property demand, and rising digitization are key growth drivers. Besides NoBroker, Magicbricks, NestAway, and 99acres also compete in the PropTech space. ๐Ÿ”ฅ