Tale of the Tape 

Good evening everyone!

Markets were in the green for a third day in a row, with Nifty and Sensex up +0.4% each. The big trigger was the Fed cutting rates for the first time this year. Officials also indicated two more cuts this year and said the focus had shifted to boosting employment. Broader markets saw gains too as Midcaps (+0.4%) and Smallcaps (+0.3%) saw buying.

It was a mixed-bag kinda day for sectors. Pharma (+1.5%) was the star of the show, followed by IT (+0.8%) and Banks (+0.4%). Meanwhile, Energy (-0.4%) saw minor cuts.

In today’s issue of the Daily Rip, we look at JioBlackRock’s first active equity mutual fund, analyse iValue Infosolutions IPO, the day’s biggest newsmakers and more.

Honourable Mentions:

Indian Hotels was in focus after reports said it would sell New York’s Pierre hotel to the Saudis in a $2-billion deal. SEPC rallied +10% intraday after bagging a Rs 442 cr order from Delhi’s water resources department.

Check out the NSE 500 heatmap:

NFO
New Kid On The Block

Hey guys, today we’re gonna take a look at Jio-BlackRock’s new flexicap fund! ICYMI - the two giants have already been shaking up the mutual fund industry. Their passive fund NFOs led to record MF inflows in July. But next week, they’re rolling out their first active equity MF. 

If you’re a tiny bit skeptical, we don’t blame ya. Around half of India’s active MFs fail to beat their benchmarks. So what is this flexicap fund going to do differently? For starters, it’s built on BlackRock’s SAE (systematic active equity) platform which uses AI & machine-driven processes to track 400+ signals. Fun fact: their proprietary sauce is called Aladdin which helps run the whole thing. Simply put, 95% of the investment process is tech-driven, which eliminates human risk & bias. The other 5%, of course, is where the fund manager’s touch comes into play.

CIO Rishi Kohli says the fund maintains a controlled active risk of around 3%-4%, lower than the industry average. And that a 10-year-simulation indicates their model should deliver a 3%-4% outperformance over the benchmark index -- which is similar to results they’ve seen in China and Japan. That’s pretty much peak performance for flexicap funds (which dabble in all small, medium and largecap stocks). PS - out of a universe of 1,000 stocks, the fund will target 750 stocks based on liquidity, turnover and execution feasibility.

Oh, and in case you were wondering, the NFO kicks off on September 23. The minimum application amount for SIPs & lumpsum is Rs 500. More details here

Specials
Auto Stocks To Buy After GST Cut!

The Nifty Auto Index is trading near its all-time high after GST 2.0 reforms spark hopes of a blockbuster festive season. Here are 3 stocks that market experts and SEBI RAs are currently tracking on Stocktwits.