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Tale of the Tape 

Heya guys. 👋

Nifty and Sensex closed up for a third straight week. Strong earnings, bullish economic outlook, and the return of FII buying fuelled the rally. Midcaps (+0.2%) closed with minor gains while Smallcaps ended flat. 😐

Most sectors ended lower. Energy (-1.4%) and Autos (-1.1%) were the top losers. IT (+0.6%) stocks closed up a third straight day. 📈

The three-day Monetary Policy Meeting (MPC) concluded today. The Reserve Bank of India (RBI) governor Shaktikanta Das increased interest rates by 0.5% as inflation remains elevated. More details below. 🧐

M&M dropped over 4% from day’s high despite record Q1 sales. Know more below. 📊 

Crompton Greaves Consumer slipped over 4% intraday after 2.1 cr shares (3.5% equity) changed hands in multiple block deals. 🔻 

Manappuram Finance rallied +7% after a double upgrade by CLSA. The global brokerage firm sees up to a 20% upside from current levels. 💸

Aurobindo Pharma received the clean chit from the US Food and Drug Administration (USFDA) for its Hyderabad unit. ✅ The stock closed flat. 

IGL (+1%) increased cooking gas prices by Rs 2.63 in Delhi. 💰

Sugar stocks were in high demand after the GOI allowed additional 1.2 million tons of sugar exports for the ongoing sugar season. FYI –  Govt had put a cap on sugar exports to 10 million last month. ✌️

Cryptos were back in the green. Bitcoin rose 1%. Ethereum gained +2%. Solana, Matic, and Doge were up between 3%-4% each. 🚀

Here are the closing prints:

Nifty 17,397 +0.1%
Sensex 58,387 +0.2%
Bank Nifty 37,920 +0.4%

Back To Pre-Covid Levels

The Monetary Policy Committee (MPC) increased interest rates by another 50 basis points to 5.4%, the highest since Aug 2019. 📈

The RBI increased interest rates for the third time since May as inflation continues to remain above its tolerance limit for the past six months. In total, they’ve increased interest rates by 140 basis points or 1.4%, reversing all Covid-era cuts in the process. 🔄 

Besides interest rates, we got tons of information on the economy. Starting with the good news, the RBI maintained its FY23 growth forecast at 7.2%. But, despite all their efforts, they left the inflation estimate unchanged at 6.7%. Experts say this opens up the possibility of further rate hikes. 🙈

One of the main objectives of any central bank is to control inflation and the RBI has been a bit slow in tackling that problem. The main reason for this is the uncertainty caused by global factors. A weaker rupee has only made matters worse. Increasing interest rates too quickly is also not an option since it may risk slowing down the economy big time. So there’s only soo much Shaktikanta Das and his crew can do. 🤷‍♂️

For me, the road to salvation lies through incessant toil in the service of my country and there through of humanity” – Shaktikanta Das quoted Mahatma Gandhi during his speech. That should set the tone for the next policy meet. 👀

Stocktwits India Update!

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Earnings Roundup 

M&M had a massive Q1. The automaker reported its highest-ever quarterly sales. An insane response to its new launches coupled with robust tractor demand drove the outperformance. PS – Domestic tractor volumes hit an all-time high in Q1. M&M continues to dominate the fast-growing SUV market with over 17% market share. Here are its key stats: 💰

  • Revenue: Rs 19,613 cr; +67% YoY (vs Est: Rs 19,822 cr)
  • EBITDA: Rs 2,341 cr; +43% YoY (vs Est: Rs 2,449 cr)
  • EBITDA Margin: 11.9% (vs Est: 12.3%) 
  • PAT: Rs 1,430 cr ; +67% YoY (vs Est: Rs 1,438 cr) 

Yet, the stock fell over 4% from its intraday high. Why so? Firstly, M&M’s results were a tad below Street estimates. To be fair, markets had already anticipated a record-breaking Q1 for the automaker. The low base of last year, easing supply bottleneck plus price hikes boosted earnings expectations. 📊

M&M rallied +18% in the past month driven by these high expectations and record booking for its brand new SUV Scorpio-N. Hence, some profit booking cannot be ruled out. The stock is up +50% so far this year. 🤑

Movers and Shakers 

Here’s a look at this week’s top Nifty 500 movers. Spicejet took the pole position after rallying 29%. 🏅 Nazara Technologies had the best week since Oct 2021. Brightcom Group (-18%) closed down for a second straight week. Balrampur Chini fell 11% on weak Q1 results. 💣 Check out their charts below:

Earnings Highlights

  • Balkrishna Industries: Revenue: Rs 2,725 cr; (+44% YoY) | Net Profit: Rs 307 cr; (-7% YoY)
  • Manappuram Finance: Revenue: Rs 1,503 cr; (-5% YoY) | Net Profit: Rs 282 cr; (-35% YoY)
  • Graphite India: Revenue: Rs 897 cr; (+30% YoY) | Net Profit: Rs 24 cr; (-84% YoY)
  • Venky’s India: Revenue: Rs 1,205 cr; (+10% YoY) | Net Profit: Rs 49 cr; (-11% YoY)
  • Alembic Pharmaceuticals: Revenue: Rs 1,263 cr; (-5% YoY) | Net Loss: Rs 66 cr;


Be sure to know when your stocks report earnings. Here’s the results calendar: