January 5, 2022

Roaring Ahead!

Tale of the Tape

Happy Wednesday guys!

Markets closed up for a fourth straight day, the longest winning streak since Oct 18. Midcaps (+0.2%) and Smallcaps (-0.3%) traded mixed. The advance-decline ratio was evenly split. 🤗

Most sectors ended higher. Banks (+2.3%) and NBFCs (+2.0%) single-handedly drove markets higher. IT stocks (-1.9%) snapped their four-day gaining streak. 😌

Bajaj Finance (+4.5%) was the top Nifty gainer after reporting solid Q3 growth. Here’s more details. 📈

Starting next week, IT companies will report their Q3 results. More details below. 👇

Panama Petrochemicals jumped 11%. Renowned investor Ramesh Damani picked up 1.3% stake in the company. 💰

Thermax (+1.9%) won new orders worth Rs 546 cr from the Uttar Pradesh Government. 💸

Future Group stocks came under pressure after the Delhi High Court rejected its petition to terminate the Amazon case. Future Consumer, Future Retail, and Future Lifestyle Fashions fell between 2%-4%. 😞

Kirloskar Electric was locked in a 5% upper circuit. The company will sell its unused property in Karnataka for Rs 100 cr. 💵

Cryptos snapped their three-day losing streak. Bitcoin and Ethereum rose ~2% each. Solana also gained 2%. Doge and Shiba Inu traded flat. 🥺

Here are the closing prints:

Nifty	17,925	+0.7%
Sensex	60,223	+0.6%
Bank Nifty	37,695	+2.3%

Eyes Glued On IT

India’s top five IT firms could see 3%-5% QoQ growth in Q3 revenues. 👍

Analysts expect broad growth across industry verticals and new client wins driven by the usual digital transformation and cloud adoption trends. 🤝

Motilal Oswal expects Infosys to lead the IT pack with a 4.8% QoQ revenue growth. According to the firm, HCL Tech is set for 4.5% growth while Tech Mahindra and Wipro at 3.7%, and TCS at 3.2%. 🤑

Investors are likely to keep a close tab on revised guidance and future outlooks. They will also monitor margin pressure from aggressive hiring, higher salaries, and lack of cost control. We can’t wait to cover the IT results! 👊

Precious Scheme

Asset manager ICICI Prudential has launched India’s first silver exchange-traded fund (ETF). ✨

We all know Indians have emotional bonding to precious metals like Gold and Silver. Many own precious metals for investment purposes (and jewelry of course lol). 🙈 BUT, owning Silver in physical form is a lot harder than Gold so this ETF could be popular! 💡

The ETF allows investors to buy Silver in digital form, which eliminates Silver’s price difference across various cities. 💪 This is a real pain point for physical Silver holders. And the best part, investors can participate in this scheme for only Rs 100. 🤩

Unlike Gold, Silver is more tied to equities. It often performs well in times of economic recovery, but falls on market downturns. It benefits from growing industrial demand while Gold is viewed as an inflation hedge. FWIW, Silver has grown at a 2% CAGR over the past 10 years. 😔

If you’re still down for the Silver scheme, it’s open to investors between Jan 5 to Jan 19. 🤞

Overheard on Stocktwits

Anosh Mody shared this trade idea on Stocktwits. The stock rose 12% since Anosh posted this idea last week! Add $BALAMINES.NSE to your watchlist and follow Anosh for his latest market thoughts.

Hungry For More

Food products company iD Fresh Food raised Rs 507 cr in a Series D funding led by NewQuest Capital Partners. Existing investor Premji Invest also joined the round. 💸

The latest funding round reportedly valued the startup at Rs 1,800 cr. The company will use the funds to 1) expand presence in India, the UAE, and the US; 2) launch new products, and 3) build new capacity. It also hopes to distribute its products in the UK, and the US market. Fun fact: early investor Helion Ventures made an exit with a 10x return on its investment made seven years ago. 😮

Founded in 2005, iD produces a range of food products from idli/dosa batter to parottas. They have manufacturing facilities in Bengaluru, Hyderabad and Mumbai. PS: In 2020, iD opened the “world’s largest idli-dosa factory” in Karnataka. 🤯 The company claims it will post revenue of Rs 500 cr in the current fiscal year. ✌️

The pandemic has pushed people towards ready-to-cook (RTC) products. RedSeer estimates the RTC market to grow 18% compounded annually and could touch Rs 4,800 cr by 2024. iD is now set to solidify its position in South India! Hopefully, this gives more Indians the chance to try their yummy food. 😋