Mid Week Blues

Tale of the Tape

Hey, guys. Markets were super volatile. 🎢

Nifty and Sensex cooled off sharply in the final half hour to end near the day’s low. Midcaps (+0.3%) and Smallcaps (+0.5%) fared slightly better. 👍

Most sectors ended in the green, but the gains were minor. Financials continued to outperform. Metals (-0.4%) remained under pressure. 📉

This large-cap automaker can deliver +30% returns from the current level. More details below. 🚘

More bad news for Nykaa after its CFO Arvind Agrawal resigned. The stock closed down 2%. 🏃

Travel and Hospitality stocks bucked the overall market weakness. InterGlobe Aviation, GMR Airports and Wonderla Holidays rose +3% each. Check out their charts below. 📈

Vedanta announced a 3rd interim dividend of Rs 17.5 per share. 💸

Inox Green had a muted listing. The stock closed at Rs 59 per share, down -9% from its issue price. 😞

DCW (+4%) will invest Rs 125 cr to double its pipes manufacturing capacity. 🏭

Poonawalla Fincorp may sell its housing finance business, according to media reports. 🤝

Cryptos took a break from the “post-FTX collapse” beating. Bitcoin jumped +5%. Ethereum rallied +8%. Litecoin (+27%) hit a 6-month high. 🚀

Here are the closing prints:

Nifty	18,267	+0.1%
Sensex	61,510	+0.2%
Bank Nifty	42,729	+0.6%

Fast and Furious

Auto stocks have been on fire in 2022. Big boy Maruti Suzuki is up +21% this year vs a 16% gain for the Nifty Auto Index during the same period. 🔥

Two big things are working in Maruti’s favour. Firstly, car demand has shot through the roof in recent months. PS – festive season sales hit the highest level since the start of the pandemic. Maruti is not JUST selling more cars, but also bigger (read premium/SUVs) cars. 🚙

India’s largest car maker is betting big on SUVs. They’ve already launched 4 new models this year and aim to +2x its SUV capacity by March-end. Fun fact: Maruti has pending orders for +4 lakh units out of which nearly a third are for recently launched models. Experts believe this would not only help Maruti gain market share but also improve margins, which is a major W. 💯

Maruti also finally laid down its plans for electric cars. They will invest Rs 10,000 cr over the next 5 years to scale up their EV biz. Maruti will also use the funds to manufacture EV batteries and set up a vehicle recycling facility in Gujarat. 🏭

Besides this, easing supply constraints, cool off in commodity prices and a pick up in rural demand are key positives, said experts. But, stiff competition and impact of rising interest rates remain top concerns. PS – Global brokerage firm Jefferies sees a +30% upside from current levels. Watch out for this one. ✅

Chartbusters

Travel and hospitality stocks were up big. Air travel increased 60% YoY in October, according to the latest data. Going forward, a combination of the wedding season and year-end/Christmas holidays is expected to boost travel demand, said experts. 🧳

Hotels at several tourist destinations like Goa, Shimla, and Rajasthan witnessed a sharp spike in bookings, as per recent reports. Ticket prices continue to soar led by strong demand and higher costs. This is a big positive for the entire travel and hospitality sector. InterGlobe Aviation, GMR Airports and Wonderla Holidays rose +3% each despite overall market volatility. Check out their charts below: 📈

Stocktwits Spotlight

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