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Putin WTF!

Tale of the Tape 

Good evening, everyone. We’re halfway through the week. 😇 

Markets were back in the red. Escalation of Russia-Ukraine tensions and uncertainty ahead of the US Federal Reserve meeting added pressure. Midcaps (-0.7%) and Smallcaps (-1%) witnessed deep cuts. Nearly three stocks fell for every one gainer. 📉

Except for FMCG (+1.2%), all the other sectors ended lower. Metal stocks (-2%) got beat up the most. Pharma (-1.5%) saw profit booking after yesterday’s big jump. Energy and Real Estate fell over 1% each. 🔻

This bank stock hit an 18-month high. Is it the start of a new inning or will investors get out hit wicket? Find out below. 💯

State-run Central Bank of India rallied +14% intraday, the top gainer on NSE500. The Reserve Bank of India removed the lender from its black list allowing it to operate freely, which is a huge W. ✅

Ambuja Cement and ACC were in focus yet again. Promoter Adani Group pledged their entire $13 billion stake in the cement duo. They were down 6% each. 🤕

Swaraj Engines (+10%) hit a new all-time high. M&M will buy an additional 17% stake in the company for Rs 296 cr. 💰

eClerx Services jumped 5% after turning ex-bonus. Shareholders of the company will receive one bonus share for every two shares held. ✌️

SpiceJet sank over 3% after the debt-laden airline sent 80 pilots on unpaid leave to reduce costs. 📊

Cryptos traded sideways. Bitcoin and Ethereum were flat. Solana was down 1%. 😶

Here are the closing prints:

Nifty 17,718 -0.6%
Sensex 59,456 -0.4%
Bank Nifty 41,203 -0.6%

It Ain’t Over Yet

The seven-month-long war between Russia and Ukraine is far from over. Russian President Vladimir Putin sounded off the alarm bells as the conflict between the two nations showed no signs of de-escalation. 🪖

What’s going on? Putin announced on Wednesday a partial military mobilization in its efforts to liberate parts of Eastern Ukraine. In simple words, Russia will deploy more soldiers (around 300,000) as the conflict takes a new turn. ↪️

Recently, the Ukrainian forces successfully reclaimed key parts of the country, serving a major blow to the Russian military. Putin blamed the West for escalating tensions and warned the use of “all possible means” to defend itself. Yikes. Oil prices jumped +2% past the $90 per barrel mark after Putin’s address. Markets dropped over 1% intraday to hit the day’s low meanwhile the rupee weakened to nearly 80 against the US dollar. 📉

Geopolitical events like these are extremely difficult to predict and next to impossible to navigate. Markets may get even more volatile in the coming weeks, warned experts. Inflation and interest rates have grabbed our attention in recent months. But, the latest developments in Ukraine and Putin’s announcements are a reminder of much bigger concerns elsewhere. 🙏🏻


Is It Different This Time?

Yes Bank is on a roll. It is one of the best-performing private sector banks so far this year. The stock hit the highest level since Jan 2021 after rallying +30% in the past 6 months. FYI – That’s higher than ICICI Bank, IDFC First Bank, Axis Bank and HDFC Bank in the same period. 🚀

What’s the deal bro? A combination of factors like the sale of its bad loan portfolio, potential fundraise from large private investors and new management have sparked optimism. Yes Bank will sell Rs 48,000 cr worth of stressed loans to JC Flowers Asset Reconstruction Company. That’s nearly 80% of Yes Bank’s total bad loan portfolio. This is a huge positive as Yes Bank has the NPA percentage amongst private banks. ✅

Yes Bank has also been in talks with several private investors to raise funds. It seems like an eternity since we’ve been hearing this. But, reports suggest private equity firms Carlyle Group and Advent are in advanced talks to invest $1.1 billion. Markets are hoping that this time it may be able to pull in the dough. Rumours of ex-HDFC Bank head Aditya Puri joining its Board of Directors also boosted sentiment. PS – stay on top of what’s happening with your favourite stocks only on Stocktwits. Sign up for free here: https://bit.ly/3UpAmoT.  😎

Investors are betting that the above factors may help the bank turnaround after its collapse back in 2018. However, not everyone is bullish. Experts say they are not yet sure about the lender’s strategy to drive earnings growth. They’d prefer waiting a few quarters to see actual improvement in results before turning positive. Facts over stories every single day! Stiff competition from mid-sized peers like IDFC First, and Federal Bank also poses a key concern. 👀


Stocktwits Spotlight

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