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All Eyes On Fed

Tale of the Tape 

Good evening, everyone. Happy Hump Day! 😇

Nifty and Sensex dropped sharply in the last hour of trade to close near the day’s low. Investors were edgy ahead of key announcements by the US Federal Reserve. Midcaps (-0.6%) and Smallcaps (-0.5%) also trended lower. Nearly two stocks fell for every one gainer. 👎

Except for Auto (+0.4%) stocks, all the other sectors closed in the red. Real Estate (-1.9%) and PSU Banks (-1.4%) fell for a third straight day. 📉

Paytm tanked 8% after the 30-day lock-in period for anchor investors expired today. 🔻

TVS Motor (+2%) partners with BMW to manufacture electric two-wheelers. 🏍️

Nykaa jumped 6% after launching luxury skincare brand Elemis. 💄

ITC (-2%) slipped for a third straight day despite positive comments from analysts. Here’s ET with more. 😓

Natco Pharma will acquire US-based Dash Pharma for $18 million. 💰The stock closed down 3%. 

The Government cleared a Rs 76,000 cr scheme to promote domestic semiconductor production. We recently discussed Tata Group investing $300 million to produce semiconductors in India. 💸

Cryptos were finally back among the gains. Bitcoin jumped 3%. Ethereum rose 2%. Solana was up 8%. Doge built on its gain, rallying +13%. 💓

Here are the closing prints:

Nifty 17,221 -0.6%
Sensex 57,788 -0.6%
Bank Nifty 36,789 -0.3%

Chemistry For Success?

Supriya Lifescience IPO will open on Dec 16. The price band is fixed at Rs 265-274 per share. The company plans to raise Rs 700 cr from the markets. 💸

Founded in 1987, Supriya Lifescience is a leading manufacturer and supplier of active pharmaceutical ingredients (API). Here’s what it means! APIs refer to the main ingredient in a drug, used to treat and cure patients. 💊 Its portfolio comprises 38 products used to treat allergies, asthma, and others. It exports its products to over 1,200 clients across 86 countries. 🌎 The company will use the proceeds mainly to repay its debt, and to scale up its presence.

Financial Snapshot:

  • FY21 Revenue: Rs 385 cr; +23% YoY
  • FY21 Net Profit: Rs 124 cr; +70% YoY

The global pharmaceutical market is expected to grow 6% compounded annually by 2025, to reach $1.7 trillion. 📈 Key growth drivers include an aging population, rise in chronic diseases, and overall increased demand for healthcare. 

China is the world’s largest producer of APIs. Post covid, most companies have begun to look for alternatives. India with its cheap labor and technical expertise has emerged as a credible #2 player. ✌️

Its strong financial track record, rich global clientele, and attractive valuation may impress investors. A strict regulatory environment and high dependence on top products/clients are key concerns. 👍

I See Money

Lenskart is in talks to raise $250 million. The latest deal is estimated to value the startup at $5 billion, according to Economic Times. 💰

Lenskart will use the funds to scale up its technology, supply chain, and distribution networks. Also, it may use the funds to expand its global presence. The company earlier raised $220 million in a funding round back in July. 💸

Founded in 2010, Lenskart is an omnichannel eyewear brand. The company sells its products in 800+ retail stores across 200 cities in India. Fun fact: it manufactures over 300,000 glasses in a month. Besides India, it is also the largest eyewear chain in Singapore. And, it has presence in the Middle East, Southeast Asia, and even the US. Softbank owns around 20% of Lenskart. KKR, TPG, and Falcon Edge are other notable investors. 🤓

Going forward, Lenskart aims to acquire global eyewear brands and consolidate them into one platform. Additionally, it also plans to expand into newer businesses like fashion. Let’s see how this goes. 😇

Going All In

Myanmar’s National Unity Government (NUG) has recognized Tether, a stablecoin, as an official currency. ✌️

But, here’s the twist. NUG is only a shadow government, meaning it doesn’t hold any official positions in the government. Reports say the group includes elected ministers who no longer hold official positions. This is following a coup by the country’s military that recently ousted Myanmar’s leader Aung San Suu Kyi. So, technically Tether can’t become the official legal currency of Myanmar. FYI, the Myanmar government banned all digital currencies in 2020. 😞

Note: Tether is the fourth-largest cryptocurrency. Unlike Bitcoin or Ethereum, it is not volatile since it is backed by USD. 💲

Meanwhile, recent media reports suggest that the much-anticipated crypto bill in India may not be introduced for now. Early indications were that the bill would be presented in the current parliamentary session. So, the wait for the official bill continues. 😟