Markets Continue To Pullback

Tale of the Tape

Hey, guys. Welcome back to The Daily Rip! 🤗

Markets hit a 1-month high. Nifty and Sensex closed up for a 4th straight day on strong economic data. FY23 direct tax collections rose +18% YoY; higher than GOI expectations. Manufacturing activity hit a 3-month high in March. Midcaps (-0.1%) and Smallcaps (+0.7%) traded mixed. The advance-decline ratio (3:1) stood in favour of the bulls. 🐂

Most sectors ended higher. FMCG (+1.4%) and IT (+1.2%) topped the list of gainers. Pharma (+0.9%) stocks closed up for the 5th time in the past 6 days. PSU Banks (-0.8%) and Autos (-0.6%) remained under pressure. 📉

Q4 earnings update. Bajaj Finance rallied +3% intraday. Godrej Consumer Products hit a new 52-week high on hopes of strong Q4 earnings. More details below. 💰

Reliance may appoint one of the pioneers of the Indian FMCG industry to lead its retail business. Read more below. 💯

Britannia approved an interim dividend of Rs 72 per share. Separately, Dhampur Sugar announced an interim dividend of Rs 5 per share + a special dividend of Rs 1 per share. 💸

Oil & Gas stocks were in focus yet again as the GOI removed the windfall tax on fuel exports. ✅

Cyient hit a new 52-week high after the appointment of Karthik Natarajan as CEO. 👍

NBCC (+4%) won new construction orders worth Rs 448 cr. 🚧

IPO update. Avalon Technologies IPO got subscribed just 10% on day 2. 😴

Cryptos extended their winning streak. Bitcoin rose +2%. Ethereum hit an 8-month high. Doge dashed +30% after Elon Musk replaced the Twitter logo with the meme. 🚀

Here are the closing prints:

Nifty	17,557	+0.9%
Sensex	59,689	+1.0%
Bank Nifty	40,999	+0.4%

Earnings Sneak Peak

It’s that time of the year again. Earnings season is just around the corner (again) and companies are giving previews of what to expect. 📊

Bajaj Finance’s Q4 business update turned out better than expected. The company gave out fresh loans to 76 lakh customers, up +21% YoY. Bajaj Finance added a record 31 lakh new customers in Q4. Their Assets Under Management (AUM) grew 29% YoY to nearly Rs 2.5 lakh crore! This is a big positive as most experts had estimated a slowdown in credit growth due to rising interest rates. 🔥

Godrej Consumer Products estimates double-digit topline growth in Q4. The company said its core-domestic business “exceeded expectations”. Demand was healthy across key sectors like Home and Personal care. Importantly, the company is confident that consumer demand would see a gradual recovery going forward! They further added that: The quality of our profits should see improvement, led by Gross Margin recovery and continued marketing investments translating to strong double-digit EBITDA growth. 📈

PS – The earnings season kicks off from April 12. As usual, IT giant TCS will be the first to report its Q4 earnings. Mark your calendar. 📅

RIL’s Big Move

Reliance Industries is in talks to appoint former Amul head R S Sodhi to lead their FMCG business, according to Times of India (TOI). Sodhi’s vast experience and expertise in the dairy business would be tremendously beneficial for Reliance’s food and grocery business. 💯

What’s the big deal? Amul is the largest dairy cooperative in India and the world’s largest producer of milk and milk products. Amul’s flagship products include milk, butter, cheese, ice cream, and yogurt. They’ve also expanded into chocolates, sweets, and baby food. Amul has a strong distribution network, with over 7,000 distributors and 10 lakh retailers across India. They also export their products to +60 countries! 📊

Under Sodhi’s leadership, Amul has become one of the most recognized dairy brands in the world. He was also instrumental in making the business profitable. He introduced several initiatives and strategies that helped the company increase its revenue and market share. Fun fact: Amul reported Rs 52,048 cr in sales and a net profit of Rs 1,017 cr according to its latest FY21 data. Sodhi has won several awards for his contribution to the dairy industry including the Padma Shri, the highest civilian award in India! 🙏

Details about his appointment and role are still scarce at the moment. Let’s see how this goes. 👍

Winner Winner Chicken Dinner

Congratulations Market View Plus aka Rahul Bora for winning the Community Star of the Month! ⭐

Rahul Bora is a part-time trader and has been engaged in the markets since 2013. He trades in index options and currency pairs, mainly USDINR. His trading style revolves around price action, scalping (for reversals) and positional hedging with self-developed strategies. Follow him for amazing trading insights on Stocktwits. Here’s the link: https://stocktwits.com/MarketViewPlus

Disclaimer: All ideas shared by Market View Plus are for educational purposes. Market View Plus is neither SEBI registered nor an investment advisor.