December 29, 2021

2022 Downloading

Tale of the Tape

Hey guys.

Markets were at their boring best as we approach 2022. Nifty and Sensex closed barely down. Midcaps (+0.1%) and Smallcaps (+0.6%) showed some sign of life. ✌️

Most sectors ended in the red, but losses were minor. Pharma (+2%) stocks saw the most action. Check out their charts below. Metal stocks (-1%) witnessed profit booking. 📉

MTNL (-5%) is +2x in the past month. The Government is reportedly selling non-core assets. Read more below. 💰

Bajaj Auto (+3%) will invest Rs 300 cr to set up a new EV manufacturing unit in Pune. ⚡

Supriya Lifesciences rallied +19% adding on to its stellar listing gains. 🤑

Teamlease Services gained +3% after Kotak upgraded the stock to a “Buy” with a target price of Rs 4,420, or 11% upside from current levels. 👍

Mazagon Dock Shipbuilders (+2%) announced an interim dividend of Rs 7.1 per share. 💸

G R Infraproject (+2%) won the contract to develop the Noida metro rail project. 🚇

Mishtann Foods was locked in a 5% upper circuit. The company signed a pact with the Gujarat Government to produce ethanol from food grains. ⛽

Cryptos trended lower. Bitcoin and Ethereum slipped 2%. Solana dove 6%. 😓

Here are the closing prints:

Nifty	17,213	-0.1%
Sensex	57,806	-0.2%
Bank Nifty	35,045	-0.4%

Wrong Number?

State-owned telecom operator MTNL has more than doubled in the past month. The stock hit a 9-year high of Rs 40.85 on Wednesday. No shit! But what’s the deal? Reports of the government actually selling its non-core assets like property and reducing its mammoth debt are fueling the rally. 🥴

We all know that MTNL is a mess. It is under a loss of Rs 18,000 cr and owes more than Rs 25,000 cr to banks. Stiff competition is killing the business. Legacy issues like poor network coverage and lazy workers/employee unions only compounded their problems. 🙅‍♂️

The Government is focused on reviving the telecom operator by reducing overhead costs and selling its super valuable land bank. Additionally, it plans to infuse Rs 25,000-30,000 cr in the company. For all those who forgot that MTNL exists, this is a good reminder. Let’s hope for the best. 🤞

Overheard on Stocktwits

Here’s an interesting chart setup by Kush Ghodasara on Stocktwits. Follow Kush and $MINDTREE.NSE to see if his trade setup follows through.

Chartbusters

Pharma and healthcare stocks were in the pink of health. The Government gave the green signal for the use of anti-Covid drug Molnupiravir. The new drug is effective at treating patients with a medical history and preventing hospitalization. Thyrocare, Shalby Ltd, and Laurus Labs zoomed 4%-6% each. Check out their charts below: 📈

Get In!!!

MamaEarth became the latest startup to enter the Unicorn club. Congrats guys. 🍾

The company raised ~$80 million in its latest funding round led by Sequoia Capital. The Series F funding valued the startup at $1.1 billion, +43% from its previous round

Founded in 2016, MamaEarth is a leading D2C beauty and personal care brand. It sells ~180 products across different brands to +5 million customers. Sales crossed Rs 500 cr in FY21 and the startup aims to grow 100% in 2022. It recently acquired women-focused content platform Momspresso. 💸

India’s Beauty & Personal Care market is $26 billion and growing 10% per year. Changing lifestyles, rising beauty awareness, and higher income levels are key growth drivers. 👍

Speaking of startups, GlobalBees also turned unicorn after its latest fundraise. That takes the overall tally for the year to #44. 🦄

Not Ready Yet

The Securities and Exchange Board of India (SEBI) has advised mutual funds to steer clear of crypto assets until there is regulatory clarity. 🚫

This means no blockchain or crypto fund will get approval anytime soon. ICYMI, asset manager Invesco had plans to launch India’s first blockchain-focused fund. The exchange-traded fund (ETF) would’ve given investors a less volatile option to gain crypto exposure. But, it found itself in the wrong place at the wrong time and the new offering got scrapped.

The Indian government was expected to pass the cryptocurrency bill in the recent Parliament session. Now, we’re in the wait-and-watch mode until the details are ironed out. Here’s hoping that 2022 has good news in store for all you hodlers! 😇