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Tale of the Tape

Happy Tuesday y’all. Markets rebounded sharply after yesterday’s ugly crash. 📈

Nifty and Sensex jumped +1% each as investors sought bargains in beaten-down sectors. Midcaps and Smallcaps also moved in sync, +1.3% each. The market breadth was extremely positive, with over two stocks gaining for every one loser. ✌️

It was a completely opposite picture from yesterday. Not a single sector closed in the red. Metals (+3%) snapped their four-day losing streak. IT (+2%) and Real Estate (+1.6%) stocks saw healthy gains. 💪

Wipro will buy US-based cybersecurity firm Edgile for $230 million. 👨‍💻 The stock jumped +4%. 

Real Estate stocks were in high demand. Indiabulls Real Estate, Lodha and Brigade Enterprises soared between 5%-7%. Check out their charts below. 📈

The 90-day negotiating period for the ZeeSony merger ends today. Details regarding a formal bid are still awaited. We’ll get you the latest as soon as we hear anything. 🧐

MapMyIndia got off to a stellar start. The stock closed at Rs 1,394 p/sh, +35% from its IPO price. 💸

Vedanta (+4%) will acquire leading nickel and cobalt producer Nicomet for an undisclosed amount. Nickel and cobalt are key raw materials used in manufacturing EV batteries. 🔋

Strides Pharma (+2%) commissioned a vaccine manufacturing unit in Bangalore. The company will export 50 million Sputnik V light vaccines from the unit. 💉

CMS Info Systems IPO received a lukewarm response. The public offer was subscribed just 0.4x on day 1. 🙃

Cryptos were back among the gains. Bitcoin ripped +5%. Ethereum (+6%) reclaimed the $4K mark. Avalanche continued its outperformance, rallying +15%. 💓

Here are the closing prints:

Nifty 16,770 +0.9%
Sensex 56,319 +0.9%
Bank Nifty 34,607 +0.5%

Sold Out!

Mumbai property sales hit a 10-year high in 2021 after new sales crossed the 1 lakh mark. 🥇

People are spending more time at home than ever before. Work-from-home is here to stay and there’s only so much home improvement to do. Cheaper home loans, discounts from developers, and a duty reduction have further boosted demand. 🏠

Going forward, experts believe the sentiment remains strong. Increasing take-home salary, desire to upgrade to bigger homes, and Government focus on housing provide ample confidence. 👍

Real estate stocks posted the highest gains in two months. Brigade Enterprise, Marcrotech developers, and Indiabulls Real Estate led the gains. 📈 Check out the charts below:


Take #2

Snapdeal has filed its IPO papers with SEBI. The company plans to raise Rs 1,250 cr from the markets. 💸

Softbank, its lead investor, will reduce its shareholding from 35% to 24%. Besides Softbank, Foxconn, and Sequoia Capital are amongst those opting for partial exits. Snapdeal will use the funds to scale up its operations and strengthen its logistics capabilities. 👍

Founded in 2010, Snapdeal used to be one of India’s leading e-commerce firms. The company had a 32% market share in 2015, behind then market leader Flipkart. ⚡ But then Amazon happened and things quickly began to go downhill. By the end of 2016, the company was on the verge of bankruptcy. A failed merger with Flipkart only added to its woes. 

But, the Company’s founders Kunal Bahl and Rohit Bansal were not done yet. The company took some drastic steps like selling non-core assets (Freecharge), targeting smaller cities, and focusing on unit economics. 👍 The Covid-19 pandemic further boosted the company’s remarkable turnaround. Between 2018-2020, Snapdeal’s revenues grew 85% and traffic surged +100%. The company added +6 million new customers during the lockdown of which ~90% come from non-metro cities. 😎 

Snapdeal has surprised everyone with its remarkable turnaround. Yet, concerns over stiff competition and consistently high losses remain. Let’s see how this goes. 👀


Overheard On Stocktwits

Here’s an interesting chart setup by Prashant Bhansali on Stocktwits that you should check out. Add $GLENMARK.NSE to your watchlist and track the latest from our community. Here’s the link: https://bit.ly/3FkJrXW


Crypto Wave

Investors poured $30 billion into the crypto industry in 2021, more than in all previous years combined. 💰

It has been a rollercoaster year for cryptocurrencies. From the Chinese crackdown, regulatory uncertainty in India, to El Salvador becoming the first country to adopt bitcoin, and the launch of the first U.S. Bitcoin futures ETF. Retail investors YOLO’d their saving into meme coins while FOMO eventually got the better of large institutions. This in turn pushed the cryptocurrency market cap to $3 trillion in November. 🚀

Rising crypto investments have made it difficult for traditional players to avoid the ecosystem. Visa aims to make buying and selling cryptos easy for users. FWIW: Visa has processed +3 billion worth of cryptos in 12 months. Going forward, it aims to launch global crypto advisory services. Here’s more deets! 🔥

Meanwhile, the Dubai World Trade Center (DWTC) is set to create a dedicated zone for digital assets. It seeks to develop new economic sectors and has turned to the world of cryptos to attract new business. 2021 will go down as the year cryptos truly went mainstream. 😎

If you’re new to the space and don’t know where to start, just chill we got your back. We’ve launched a series called Crypto Chronicles that aims to de-mystify crypto in a fun, jargon-free, easy-to-consume way. We will explain key concepts like its underlying technology and its use cases. Check out our playlist here: https://bit.ly/3qdftPh