Udta Punjab

Tale of the Tape

Hey guys. Markets were back in the green. 😇

Nifty and Sensex snapped their four-day losing streak. Midcaps (+0.5%) and Smallcaps (+0.2%) also moved higher. The advance-decline ratio was split evenly. ✌️

Most sectors ended in the green. Energy and Pharma gained the most, +1.2% each. Metal stocks (-1.3%) continued their underperformance. 📉

Liquor stocks were in high spirits. United Spirits, GM Breweries, and Associated Alcohol & Breweries gained between 2%-3% each. Check out their charts below. 🍻

The rupee hit a new all-time low of Rs 77.80 against the US dollar. 👎

TVS Motor (+2%) is reportedly in talks to raise up to $350 million for its EV business. 💰

Voltas (+2%) guided for a 25% share of the room air-conditioning market in FY23 vs 19.5% as of March-end. 📊

IEX rallied over 5% after May electricity volumes rose 16% over the previous year. ⚡

Credit Suisse sees a 25% upside from current levels in Coal India. The stock closed +0.5%. 🤑

BLS International (+8%) acquired travel service provider Zero Mass for Rs 120 cr. 💪

Cryptos were mostly quiet. Bitcoin was flat. Ethereum gained 1%. Solana rose 5%. 🚀

Here are the closing prints:

Nifty	16,478	+0.7%
Sensex	55,320	+0.8%
Bank Nifty	35,085	+0.4%

In Banks We Trust?

Banking stocks have been one of the biggest laggards in the past year. On the other hand, the demand for modern technology like AI, cloud, and cybersecurity sent IT stock soaring. However, the trend may reverse… at least in the short term, according to renowned investor and market expert Madhusudan Kela. ⚔️

What’s the deal bro? A combination of factors like competition from fintech startups, slower digital adoption, and continuous selling by foreign investors kept banking stocks under pressure. But, a sharp pickup in lending growth plus easing bad loan pressure has boosted industry-wide earnings. Madhu believes the current geopolitical tensions and soaring inflation may eventually cool down, at which point banks would no longer be available at such mouth-watering valuations. 😍

On the flip side, demand for IT services may slow down amidst fears of a recession in the West. To be clear, Madhu is not bearish on the IT sector. He just prefers banks over IT stocks because of the earnings certainty. Make sense? PS, a few weeks back Nomura had downgraded the IT sector for the very same reason. Double Yikes! 👀

Investors in liquor stocks had an early start to the weekend. The newly-elected Aam Aadmi Party (AAP) slashed excise duty on liquor in Punjab. The latest move may bring down prices by up to 60%, said experts. Balle Balle! 🕺

Punjab is one of the largest consumers of liquor in the country. The sharp drop in alcohol prices is expected to boost volumes and curb illegal smuggling from Chandigarh and Haryana. United Spirits, GM Breweries, and Associated Alcohol & Breweries gained between 2%-3% each. Check out their charts below: 🔥

Stocktwits Spotlight

Oil India is up ~7% in three days! Chart guru Vishal Mehta sees a further 12% upside from current levels! Follow him for more awesome trading ideas like this and add $OIL.NSE to your watchlist. Here’s the link: https://bit.ly/3tlT70s.