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Markets Hit New 52-Week High!

Tale of the Tapeย 

Hey, guys. ๐Ÿ‘‹

Nifty and Sensex hit new 52-week highs!!! Easing inflation worries, cooling off in oil prices and continued FII buying boosted sentiment. Midcaps and Smallcaps also inched higher, +0.5% each. ๐Ÿ“ˆ

Not a single sector closed in the red. IT (+2.6%) stocks were the stars of the day. Financials (+1%) and Energy (+0.9%) also witnessed healthy gains. ๐Ÿ’ช

Tata Consumer (+3%) is in the race to acquire Bisleri. More details below. ๐Ÿ’ฏ

Adani Enterprises (+0.5%) is in talks with Mubadala Investment Company and Abu Dhabi Investment Authority (ADIA) to raise $5 billion, according to media reports. ๐Ÿ’ฐ

Fino Payments Bank rallied +14% after Capri Global Holdings bought 13.2 lakh shares (1.6% equity). ๐Ÿ”ฅ

Apollo Hospitals (+5%) gained the most in two months. Global brokerage firm Credit Suisse sees a +10% upside from current levels. ๐Ÿš€

IPO update. Keystone Realtor closed at Rs 557 per share, up 3% from its issue price on its Dalal Street debut. โœ…

KPI Green Energy (+6%) will consider the proposal of a bonus issue on Nov 30. โœŒ๏ธ

IOL Chemical & Pharma (+6%) received the thumbs up to manufacture blood pressure drug. ๐Ÿ’Š

Glenmark Pharmaโ€™s (-1%) Goa unit received a warning letter from the USFDA. โ›”

Cryptos traded with minor gains. Bitcoin was flat. Ethereum rose +3%. Solana jumped +9%. โค๏ธ

Here are the closing prints:

Nifty 18,484 +1.2%
Sensex 62,272 +1.2%
Bank Nifty 43,075 +0.8%

Blue Sky Zone

Nifty may hit 20,500 by December 2023, up +12% from current levels according to Goldman Sachs!!! ๐Ÿš€

They point to Indiaโ€™s strong domestic fundamentals as the main reason. PS – oil prices are down more than 20% from their peak. As we all know, India imports 83% of its total oil requirements. Lower oil prices would strengthen Govt finances, and boost consumer spending and corporate profits. Goldman Sachs forecasts corporate profits to grow 15% over the next two years, which is a positive. ๐Ÿ’ฏ

Government focus on capital expenditure, solid corporate health and a well-capitalized banking system should further boost Indiaโ€™s medium-term growth prospects, they added. Going forward, they are bullish on Banks, Insurance, Industrials and Cement sectors. ๐Ÿ’ช

Having said that, valuations have turned slightly expensive. At 22x one-year forward P/E, Indian equities are trading at a significant premium to their historical and regional average. This in turn may limit the upside for stocks, according to Goldman. Improving global economic factors like easing inflation worries and China reopening may also restrict the outperformance of Indian stocks. ๐Ÿง


H2 WOAH!

Tata Consumer Products bounced +3% intraday on reports that they may acquire Bisleri for Rs 7,000 cr. ๐Ÿ’ธ

Bisleri was originally an Italian company founded by Felice Bisleri in 1851. Veteran Industrialist Ramesh Chauhan acquired the company in 1969 for Rs 4 lakh. Fun fact: Ramesh Chauhan created various super brands such as ThumsUp, Gold Spot, Maaza and Limca before selling them to Coca-Cola in 1993. ๐Ÿน

Today, Bisleri is Indiaโ€™s largest bottled drinking water company with a +60% market share. Bisleri operates across mineral water, soft drinks and soda. They have 122 plants (13 owned) and a solid army of 4,500 distributors across India. Bisleri pulled in a respectable Rs 220 cr in profits from a Rs 2,500 cr topline in FY21. ๐Ÿš€

Big picture: The Rs 19,000 cr Indian bottled water market is estimated to grow 13% CAGR, according to market research and advisory TechSci Research. Access to clean drinking water, rising brand awareness and income levels are key growth drivers. ๐Ÿ“Š

Tatas also sell packaged mineral water under the โ€œHimalayanโ€ brand. They recently expanded into the energy drink/hydration market with Tata Gluco Plus. Tataโ€™s neither confirmed nor denied reports of acquiring Bisleri. Other brands like Reliance Retail and Nestle are also believed to be in the race. Letโ€™s see how this goes. ๐Ÿ‘


Stocktwits Spotlight

Financials have been on a tear recently. Hereโ€™s an interesting analysis of the Nifty Financial Services Index by Piyush Chaudhary on Stocktwits. Follow him for more awesome insights like these and add $NIFTYFINSERVICE.NSE to your watchlist and track the latest from our community. Hereโ€™s the link: https://bit.ly/3TZQMml.