Worst Day Since June

Tale of the Tape

Hey, guys. Markets had their worst week since the June low. 🤕

Nifty and Sensex tumbled ~2%, the worst single-day fall in over 3 months. Fears of sharp rate hikes and weak global cues blew up the bull’s party. The market breadth was extremely weak with over 5 stocks falling for every 1 gainer. 🚨

It was a sea of red across the board. Not a single sector closed in the green. Real Estate and IT stocks witnessed deep cuts, down 3.7% each. Auto stocks fell ~3% after hitting new all-time highs yesterday. 📉

Vedanta tanked over 7% after clarifying that the semiconductor business will not be a part of the listed entity. 💣

Adani Group completed the acquisition of Ambuja Cement (-3%) and ACC (-4%). Separately, the Adani Group overtook Tata to become India’s most valuable business house. 💯

Vodafone Idea (-4%) may not convert the interest on AGR dues to equity, according to media reports. 👎

CSB Bank jumped +4% intraday after appointing Pralay Mondal as Managing Director and Chief Executive Officer. Mondal was the head of retail business at Axis Bank before joining CSB Bank. ✅

Oil refining companies were under pressure. Oil refining margins turned negative amidst concerns of a global recession. HPCL and Chennai Petroleum fell ~4%. Reliance, IOC and BPCL fell 2% each. 📊

Tata Metaliks will invest Rs 600 cr to expand its ductile iron pipe capacity. 🏭

Cryptos continued to drag lower. Bitcoin slipped by +2%. Ethereum was down 9%. 💔

Here are the closing prints:

Nifty	17,530	-1.9%
Sensex	58,840	-1.8%
Bank Nifty	40,776	-1.1%

Welcome To The Patanjali-verse!

The Patanjali Group is in talks to list four more companies in the next five years!!! 💸

Currently, only Patanjali Foods is listed on Indian exchanges. ICYMI, Patanjali Ayurveda sold its foods business to Ruchi Soya and renamed the company they bought in 2019 to Patanjali Foods in April. Besides this, Patanjali Ayurved, Patanjali Medicine, Patanjali Wellness and Patanjali Lifestyle shall soon go public. ✌️

Speaking of its Foods business, the Group aims to become India’s largest palm oil maker. They seek to earn Rs 2,000 cr in annual sales from the palm oil business in the next five years. The Baba Ramdev-led Patanjali Group is also betting big on its Wellness business. They have a target to open 2,000 centres in India and abroad in the short term in its mission to promote traditional Indian medicine and therapy systems. During this period, the Group aims to reach Rs 1 lakh crore in turnover, up 2.5x and create 5 lakh new jobs! 💯

Bottomline: FMCG is clearly one of the hottest spaces currently. Ambani-backed Jio Retail recently announced plans to enter the FMCG sector. Watch out HUL, Nestle, and Britannia. 🤼

Pink Of Health

Mankind Pharma filed its IPO papers with SEBI. The Manforce condom maker seeks to raise Rs 5,500 cr from the markets, making it one of the largest pharma IPOs in Indian history! 💰

The public offer will be a 100% fresh issue aka the entire money will go to the company. Pricing details are not yet available but reports indicate that the company is targeting a $7-$8 billion valuation. 😎

Founded in 1991, Mankind is India’s fourth largest pharmaceutical company in terms of domestic sales. They have a wide presence across prescription medicines, consumer health products and pet care. Manforce condoms, Prega-News pregnancy testing kits, and Gas-O-Fast ayurvedic antacids are some of its marquee brands. They have 23 manufacturing units located across India and cater to 34 overseas locations. Private equity giant ChrysCapital holds around a 21% stake in the company. 📊

Financial Snapshot: (FY22)

Revenue: Rs 7,782 cr; +25% YoY
Net Profit: Rs 1,434 cr; +13% YoY

Speaking of IPOs, it is expected to be a busy second half for the primary markets. A whopping 71 companies have received SEBI clearance to launch their public offer. Aadhar Housing Finance, BoAt, and PharmEasy are some of the marquee names. Let’s go! 🕺

Movers and Shakers

Here’s a look at this week’s top Nifty500 movers. Tata Investment Corp took the pole position after rallying by +51%. 🥇 Karur Vysya Bank (+23%) had the best week since Feb 2021. Timken India (-14%) snapped its three week gaining streak. Dhani Services (-13%) closed down for a second straight week. 📉 Check out their charts below: