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Goodbye, 2021!

Tale of the Tape 

Good evening everyone, and a Happy New Year!!! 😊

Markets posted their best weekly gains since Oct 11. Hopes of improved earnings and overshadowed fears of a 3rd wave. Midcaps and Smallcaps were also in form, up +1.5% each. The market breadth was extremely positive with over two stocks advancing for every one loser. 💪

Not a single sector closed in the red. Metals (+1.9%) and Auto (+1.7%) topped the charts. Pharma (+0.6%) stocks rose for a fifth straight day. 📈

Reliance Industries (+0.5%) will buy UK-based battery maker Faradion for Rs 1,000 cr. Read more below. 🔋

IDFC Ltd rallied 13% after the board of IDFC First Bank approved its merger with the company. 🔄

Indigo Paints (+9%) posted its highest single-day gain since listing. Brokerage firm Motilal Oswal initiated coverage on the stock with a “Buy” rating. More details here. 🎨

Textile stocks were buzzing in trade. The Government rolled back its decision to hike GST from 5% to 12%. Himatsingka Seide, S P Apparels, and Arvind Ltd jumped ~4%. 😎

Policybazaar’s (+2%) parent, PB Fintech, will invest Rs 700 cr in the company. 💸 

CMS Info Systems rebounded after a quiet listing. The stock closed at Rs 238 p/sh, +10% from its issue price. ✌️

Cryptos snapped their three-day losing streak. Bitcoin and Ethereum rose ~3%. Solana was up 2%. Avalanche and Terra jumped between 4%-5%. 😇

Here are the closing prints:

Nifty 17,354 +0.9%
Sensex 58,253 +0.8%
Bank Nifty 35,481 +1.2%

Splash The Cash

Merger and acquisitions (M&A) hit a three-year high of $90 billion in 2021. Nearly 80% of the deals were done by startups with an average size of over $100 million. Companies made the most of low-interest rates to ramp up or add new growth drivers to business. 💰

Notable deals include Piramal Group buying DHFL for over Rs 34,000 cr. This is one of the largest resolutions in value terms. Private equity giant Prosus bought BillDesk for a whopping $4.7 billion, the largest acquisition in the fintech sector. 🥇

Adani Green Energy bought SB Energy Holdings for $3.5 billion, the biggest deal in the renewable energy sector. 2021 also marked the return of the Maharaja to the Tata Group for Rs 18,000 cr. Selling the loss-making airline was a vital piece in the government’s privatization plans. 💯

Other prominent deals include Tata Digital buying BigBasket for $1.7 billion, the ZeeSony merger, and Byju’s acquiring Aakash Education for $1 billion. Let’s see if this momentum continues in 2022. 🔥

Overheard on Stocktwits

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Charged Up

Reliance Industries will buy British battery maker Faradion Ltd for Rs 1000 cr. Additionally, it will invest Rs 250 cr capital in the company to boost production and pare its debt. 💸

Faradion is the world leader in sodium-ion cell technology. It offers longer battery life, faster-charging speeds, and functions in extreme weather conditions. Also, It is able to keep costs low since it uses Sodium (the 6th most abundant element on earth) versus rare metals like nickel, and cobalt. 📊

Mukesh Ambani, Chairman at Reliance Industries said: 

We will work with Faradion management and accelerate its plans to commercialize the technology… We believe this will be one of our many steps that will secure large-scale energy storage requirements for our Indian partners developing and transforming India’s EV mobility and transport sector. 

RIL is betting on its green energy business. It recently bought Norway-based REC Solar Holdings for $771 million and bought a 40% stake in Shapoorji Pallonji Group-led Sterling and Wilson Solar for Rs 2,845 cr. The future is green! 💚

Speaking of the future, Ambani is working on handing over his business empire to his three kids. Details are scarce at the moment, but Ambani has dropped a hint of it. Here’s what he said. 🙏

Movers and Shakers 

Here’s a look at this week’s top Nifty 500 movers. Tata Teleservices (+28%) regained the top spot after last week’s profit booking. 🏆 Graphite India (+25%) posted its highest weekly gain since Nov 2020. RBL Bank (-27%) hit the lowest mark since June 2020 after the sudden exit of MD & CEO Vishwavir Ahuja. Dilip Buildcon (-8%) closed lower for a third straight week. 📉 Check out their charts below: