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Going Up!

Tale of the Tape 

Happy weekend everyone. Markets snapped their two-week losing streak. 📈

Nifty and Sensex closed up 1% on strong global cues. Midcaps (+1.4%) and Smallcaps (+1.7%) continued their outperformance. The market breadth was extremely positive, with nearly five stocks gaining for every one loser. 🤑

State-owned Banks and Autos topped the list of gainers, +2% each. Metals (+1.6%) closed up for a second straight day. On the other hand, IT (-0.9%) stocks witnessed profit booking. 📉

Nykaa’s first-ever analyst meet proved to be a big hit as the stock jumped +3% intraday. More details below. 💄

Tata Group company Indian Hotels (+2%) is in high demand. The stock is +23% so far this year vs an 11% fall in the Nifty. Know what’s driving the outperformance below. 🚀

Hero MotoCorp (+3%) will increase prices by up to Rs 3,000 from July 1. 🛵

Nazara Technologies jumped 17% after going ex-bonus. Shareholders of the company will receive one bonus share for every one share held. ✌

Saurabh Mukherjea-led Marcellus Investments sold all HDFC AMC shares from its “Kings of Capital” portfolio. The stock is down 38% in the past year. ⛔

Dr. Reddy’s (+0.3%) will get $72 million as a settlement in a patent dispute with a US-based Indivior. 💸

KNR Constructions (+3%) said promoters bought 2.2 lakh shares from the open market on June 22. ✅

Cryptos extended their gaining streak. Bitcoin was up 2%. Ethereum rose +4%. Solana gained 5% after launching an android web3 phone. 📱

Here are the closing prints:

Nifty 15,699 +0.9%
Sensex 52,727 +0.9%
Bank Nifty 33,627 +1.5%

Lookin’ Pretty

Nykaa means business. The beauty and personal care startup held its first-ever analyst day meet outlining its future growth plans. 🔥 Here are the top takeaways: 

Beauty & Personal Care (BPC) Update: Nykaa expects BPC to grow 40% CAGR led by a robust pan-India online+offline distribution network. Retail accounts for 90% of all cosmetic sales in India and remains a key focus area for the startup. PS – Nykaa +3x its retail stores in the past two years. Within BPC, they expect the share of personal care products to rise. They are also expanding into the online B2B segment with the launch of Superstore by Nykaa. Lastly, they’ve also partnered with Estee Lauder to launch premium salons in India. 💅

Fashion Update: Nykaa is betting big on India’s fast-growing fashion industry. They remain focused on catering to the shopping needs of every customer (male, female, children) across categories and price points. Nykaa aims to increase the share of owned brands and is open to acquisitions in the space. 👚

Profitability Update: Falguni Nayar, MD & CEO at Nykaa, reiterated management’s commitment to a measured approach to growth. They remain focused on improving conversion rates and repeat customer rates whilst adding new users. Marketing expenses may trend higher in the short term before normalizing. 📊

Nykaa rallied +3% intraday before cooling off to end flat. PS – Morgan Stanley sees a 29% upside from current levels. Watch out for this one. 💰

Stay For The Gains

Tata Group-owned Indian Hotels is red hot. The stock is up 23% so far this year vs an 11% drop in the Nifty 50 Index. 🚀

What’s the deal bro? Travel demand has shot through the roof in recent months thanks to record vaccinations and easing restrictions. Experts predict demand for hotel rooms is expected to surpass pre-Covid levels for the first time in +2 years! In case you’re planning a trip or have been on one recently, you’ll know what I’m saying. 🧳

Indian Hotels’ vast inventory catering to leisure travel, corporate events, and business conferences is expected to gain big time. The Tata Group company added ~1,200 rooms in FY22 in anticipation of the travel boom. Reopening international travel along with the emergence of remote working trends are additional positives. ✅ 

Indian Hotels’ leadership position, healthy financials, and strong promoter backing make it an attractive bet, according to experts. But, rising Covid cases plus weak consumer sentiment due to soaring inflation remain key concerns. Let’s see how this goes. 🤓

Movers and Shakers 

Here’s a look at this week’s top Nifty500 movers. ITI Ltd took the pole position after rallying +30%. 🥇 Chemplast Sanmar (+14%) posted the highest weekly gain since Oct 2021. Brightcom Group (-22%) ended lower for the third time in four weeks. Dhani Services (-18%) extended its losing streak to week 4. 📉 Check out their charts below: