Discover more from Invest Karo India
India Market Wrap 9 July 2023
This week's market action in less than 5 mins!
The about page for TheWrap is here. Here are your insights from everything that went down this week in Indian equity markets 📈.
This week’s market action in one line
Smart meters for everybody, pharma sector takes a backseat, Hero attacks Eicher’s turf, metals, financial stocks and oil marketing companies enter the bull party 🐃
The market started this week with large announcements for smart meter tender wins - mainly by Genus, HPL Power and Tata Power - those were the winning trades this week including the proxy plays for smart meters - Shivalik Bimetal and Permanent Magnets.
Very few market participants were paying attention to the reforms made by government in power market - something we have written in detail about going all the way back in late 2021.
This is only the beginning of these reforms - as evident by Genus forming a $2 Billion partnership with GIC. Here is Genus’s promoter explaining their partnership with GIC in detail.
Beyond smart meters expect trickle down effects in transmission lines, cables, net metering and rooftop solar. The government is serious about reforming the ailing discoms while also assuring reliable round the clock cheap and clean energy to everyone across the nation.
Have written about it in a lot of detail, you may want to read the above post.
Here are some of the charts for this sector:
Moving on from smart meters.
Some new sectors showcasing strength this week are - oil marketing companies, lot of metals and mining related stocks, gold loan companies, small and mid sized banks (both public and private) and finally financial market related stocks like CDSL (chart below), 5 Paisa and Anand Rathi.
Large cap (particularly FMCG companies like Colgate also showcasing some strength).
Here are four of my favorite charts for the coming week:
Finally, here is the chart for the best performer for this week - Swelect Energy Systems - this one beat the returns for even the smart metering guys - returning a 35.5% in last 5 days.
Swelect is one of the best solar cell and module producers in the world (in terms of efficiency) but their plant and scale of operations is very small (in few megawatts). The promoter who runs the company is also very old and there doesn’t seem to be a proper succession plan.
Its a likely target for a takeover esp. for the technology behind their solar cells. I am merely speculating at this point, there has been no news but the abnormal increase in volume over last week supports this hypothesis.
Here is the list of 448 technically strong stocks.
If you like all the effort - please do share it widely - it goes a long way in helping us grow.
Below are this week’s important insider trades.
Parag Milk Foods: Promoter continuing last week’s buying into this week
If there was a drought of announcements last week, this week was flooded with them. Here are this week’s important filings that you should pay attention to.
Mergers and Spin Offs
Reliance and Jio Demerger Details (this is a big one and sets ground work for eventual three way demerger of all of reliance’s big business verticals)
A whole bunch of known names in Capacite Infraprojects
Smallcap world fund investment in Titagarh Wagons at 380/share (~25% lower than Friday’s closing)
APL Apollo Tubes indicating a strong quarter
MOIL indicating a strong quarter
NMDC’s best ever June Month and Q1 Performance
Its not just large banks, even smaller ones are loaded with money - CSB’s 30% YoY growth in term deposits
Adani Ports docks one of the longest ship in the world - an indicator of both how India’s ports are becoming deep water as well trade routes to India flourishing
Gulshan Poly new ethanol plant
Vishnu Chemicals new product facility commences production
Shree Pushkar Chemicals new facility commences production
Universal Cables 50% increase in capacity
Paras Defence 400 drones for Nano Fertilizer - Important theme playing out, read Ideaforge DRHP for more details
Cosmic CRF (newly listed) wins orders from Titagarh Wagons
Olectra Greentech order win for ~INR 10,000cr worth of buses
Talbros Auto ~INR 205cr of EV related orders
Siemens acquired a small electric vehicle parts company for INR 38cr
SJS bought a automotive interior company
Other Important Announcements
Tube Investments incorporating a new subsidiary to foray into commercial electric vehicles
Another Tube Investments subsidiary signs agreement with Anupam Rasayan for collaboration on pharma molecules for CDMO
After many delays, Reliance finally launches a cheap 4G Phone
Datamatics recognized in international market report for its product
Hero Motocorp launches its first Harley Davidson collaboration for Indian markets - Investors in Eicher motors hated it (🔻11% vs 🔼 8% for Hero)
Torrent Power starts pilot project for blending Hydrogen in city gas distribution network
ABB India’s new product for data centers
Essen Speciality Films - Home Furnishing Manufacturer
Greenchef Appliances - Kitchen Appliances Manufacturer
Magson Retail and Distribution - Grocery Retailer and Distributor
Pentagon Rubber - All types of conveyor belts for various industrial uses
Veefin Solutions - Digital Lender
HMA Agro Industries - Animal Meat Processor
Ideaforge Technology - Drones
Goldman Sachs on India
Ken Griffin Interview
Alright. That was exactly five minutes. You’re done.
Feedback and criticism are always welcome.
In case you’re in a mood to read more, here is my write up on the business of PolicyBazaar.
Go enjoy the rest of your weekend, see you next Sunday!
The legend says clicking on the like button helps one’s portfolio compound by double digits - like the post and see it for yourself.
Did you like today’s issue (or hated it?). Leave a comment and let me know!