Tale of the Tape 

Good evening everyone.

Nifty and Sensex rebounded in the last hour of trading to end at record highs and up +0.4% each. Midcaps (-0.4%) and Smallcaps (-0.5%) had a bad day. The advance-decline ratio was in favour of the bears (3:2).

Most sectors ended in the green. Oil & Gas (+0.9%), FMCG (+0.7%) and Auto (+0.5%) saw the most buying. Pharma (-0.5%) and Metals (-0.5%) witnessed the most selling pressure.

Reliance Industries AGM was a little disappointing, but hey it announced a bonus issue! Read our top story below on the top takeaways.

What’s the best way to play India’s ‘out of home’ consumption story? More details below, along with Bernstein’s top picks for the sector.

TV18 Broadcast, Sonata Software and Welspun Living saw big movements today. Check out their charts below to find out why.

Paytm gained +3% after it received GOI approval for investment in its payment services arm. PS- this will allow it to re-apply for an aggregator licence from the RBI.

Interglobe Aviation (-2%) fell after 2.3 cr shares (6% equity) was traded in a large transaction; promoter Rakesh Gangwal was the likely seller.

PFC (+3%) and REC (+1%) gained after UBS initiated coverage on the stocks; the brokerage sees a +21% upside for the former and +15% upside for the latter!

Vedanta will consider a 3rd interim dividend for FY25 on September 2.

Order wins. Genus Power was locked in a +5% upper circuit after bagging three smart meter orders worth Rs 4,469 cr. Meanwhile, KEC International was up +4% after winning transmission orders in the Middle East worth Rs 1,171 cr.

Here are the closing prints:

Stock
RIL AGM 2024

Reliance Industries AGM was a bit of a no-show. Investors were expecting key announcements on either a Jio or Reliance Retail IPO, but were left disappointed. The stock was still up +2% though after it said it will consider a 1:1 bonus issue on September 5. Beyond this, there were some interesting takeaways on the future path ahead:

1) Jio and AI: The company wants to roll out artificial intelligence models & services across its group companies through a platform called ‘Jio Brain’. To back this up, it will invest to create AI infra which will include new gigawatt-scale data centres in Jamnagar. As Ambani put it: “Our goal is to create the world’s lowest AI inferencing cost, right here in India. This will make AI applications in India more affordable than anywhere else”.

2) New energy biz: Ambani promised that the new vertical’s earnings would match the core oil-to-chemicals biz in the next 5-7 years. Solar modules will start being manufactured by the end of 2024 and the new electrolyser giga factory will be ready by 2026.

3) Reliance’s scale: The conglomerate’s reach is now insane. Jio is the world’s largest telco with 490 million users, each consuming on average 30GB data monthly. PS - RIL also announced the Jio AI Cloud offer with 100 GB free storage starting this Diwali. Finally, Reliance Retail is now among the top 5 global retailers in terms of stores and among top 10 in terms of market cap!  Finally, a little bit of forward guidance: Ambani expects Jio and Retail arms to double their EBITDA in the next 3 to 4 years.

Stocktwits Specials
Stocktwits India Momentum Index 🚀 

The Stocktwits India Momentum Index was down -0.5% today! 

Oil India extended its unbeaten run to day 6, Godfrey Phillips (+6%) hit a new all-time high and new entrant Motilal Oswal (-3%) closed down for a 3rd successive day. 

PS - The Stocktwits India Momentum Index highlights the top 10 performing companies based on their weekly returns. Plus, we bring you tons of exclusive content on the featured stocks including SEBI RA trade ideas, latest news & earnings updates, fundamental and technical insights.