Is “Sell In May” Over?

Tale of the Tape

Good evening y’all. Markets snapped their three-day losing streak. 😇

Nifty and Sensex rebounded sharply from the lows as investors bought the morning dip. Midcaps (+1.4%) and Smallcaps (+0.8%) also pushed higher. The advance-decline ratio was split evenly. 🙃

Most sectors ended in the green. State-owned Banks (+3.2%) gained the most. Metals (+2.7%) pulled back after the recent rout. 📈

InterGlobe Aviation rallied +10% despite weak Q4 results. Read more below. 💰

Sugar stocks are down between 15%-20% in the past five days. Know what’s bothering the sector below. 🚨

ITC closed down 2% after going ex-dividend. 🤑

Rattan India (+4%) picked up a majority stake in drone maker, Throttle Aerospace Systems. 💸

Saksoft Ltd (+8%) approved a 1:10 stock split. ✂️

Aether Industries IPO got oversubscribed +6x on the final day. 💪

Cryptos crept lower. Bitcoin tumbled 2%. Ethereum fell ~7%. Memecoins Doge and Shiba Inu slipped 6% each. 🔻

Here are the closing prints:

Nifty	16,170	+0.9%
Sensex	54,252	+0.9%
Bank Nifty	35,094	+2.2%

Flying High!

InterGlobe Aviation’s Q4 results missed Street estimates. IndiGo reported a loss for the 8th time in the past 9 quarters. Omicron-related travel disruption in the first half of Q4 hurt topline growth. Yet, the stock flew +10%; the highest single-day gain since Sept 2021. Why so? 🤔

Travel demand has rebounded sharply after the 3rd wave and is expected to continue well beyond the holiday season. Higher ticket prices and strong pent-up demand is expected to boost topline growth. IndiGo is also upgrading its aging aircraft fleet which should help save fuel costs. Focus on scaling up corporate and international travel are key positives, said experts. ✅ Here’s its report card, for those who care:

Revenue: Rs 8,021 cr; +29% YoY (vs Est: Rs 9,500 cr)
Net Loss: Rs 1,682 cr (vs Est of Net Profit: Rs 600 cr)

IndiGo is down 10% YTD. 📉

Why Are Sugar Stocks Sulking?

Sugar companies got dumped after GOI capped exports of the white sweetener for the first time in 6 years!!! 🤯

The Government decided to restrict sugar exports to 10 million tonnes for the ongoing sugar season. The government says the 10 million tonnes limit has been imposed as a precautionary step to ensure enough domestic supply and control prices. Fair enough.

Here’s some context: India is the world’s 2nd largest sugar exporter after Brazil. But, due to dry weather conditions, Brazil’s sugar output is expected to drop over the previous year. This in turn has sent global sugar prices soaring making exports more lucrative.

What’s the deal bro? Sugar companies have already agreed to export 8.5 million tonnes of sugar in the ongoing season. Hence, a 10 million ton limit leaves little room for upside. Uncertainty over policy changes is also something investors are not happy with. 🙅‍♂️

The likes of Balrampur Chini, Dhampur Sugar, and Triveni Engineering are down between 15%-20% in the past five days. Are you buying the dip? 🕵️‍♂️

Stocktwits Spotlight

Divi’s Lab is down 7% in two days. Chart guru Vishal Mehta sees a further 12% fall from current levels! Follow him for more awesome trading ideas like this and add $DIVISLAB.NSE to your watchlist. Here’s the link: https://bit.ly/3apXYHp.

Earnings Highlights

Torrent Pharma: Revenue: Rs 2,131 cr; (+10% YoY) | Net Loss: Rs 118 cr;
Bata India: Revenue: Rs 665 cr; (+13% YoY) | Net Profit: Rs 63 cr; (+1.1X YoY)
Apollo Hospital: Revenue: Rs 3,546 cr; (+24% YoY) | Net Profit: Rs 90 cr; (-46% YoY)
Colgate Palmolive: Revenue: Rs 1,301 cr; (+1% YoY) | Net Profit: Rs 323 cr; (+3% YoY)
Page Industries: Revenue: Rs 1,111 cr; (+26% YoY) | Net Profit: Rs 191 cr; (+64% YoY)