Tale of the Tape 

Howdy folks.

Nifty (-0.7%) and Sensex (-0.7%) continued to decline as nervous investors sold ahead of Q3 earnings season. Midcaps (-0.9%) and Smallcaps (-1.4%) got dumped. 367 stocks in the NSE 500 ended lower. Check out the Stocktwits Sentiment Meter:

Except FMCG (+0.9%), every other sector ended in the red. Real Estate (-2.7%) and Energy (-2%) saw the deepest cuts.

Specialty chemical stocks were on a roll today over a US gas shortage! Read our top story to find out why this may not translate into a solid Q3. 

Antique Broking sees a ~50% upside rally in these two recycling stocks. More details below. 

Swiggy, JSW Energy and Borosil Renewables all saw big moves today. Check out their charts below to find out why.

Bajaj Auto (+2%) was the top Nifty gainer after CLSA upgraded the stock; the brokerage sees a further +9% upside from current levels.

Manappuram Finance rallied +6% before giving up all gains after the RBI lifted lending restrictions on its microfinance unit. PS - Jefferies has raised its target price to Rs 190 p/sh (vs Rs 167 earlier).

Religare Enterprises (+4%) gained after reports said the Madhya Pradesh HC allowed its AGM and open offer to be conducted.

Acme Solar gained +3% after commissioning 1,023 MW of solar projects in Rajasthan.

Here are the closing prints:

Market
Watch Out For This Theme in 2025!

Recycling stocks had an insane 2024, with players like Ganesha Ecosphere and Gravita India doubling over the last 12 months. The rally was fuelled by key GOI programmes that promote formalisation. Experts say these growth triggers will still play out over 2025-26! Here’s what you need to know. 

ICYMI - the GOI requires metal & plastic producers to manage their waste in a phased manner.

These requirements become more demanding over the next few years. For example: brand owners need to recycle 50%-80% of plastic waste and use 30%-60% recycled content over FY26-29. So, the next three years are expected to be a HUGE opportunity for organised players. PS - The formalised sector is just 35% of the overall market right now which is expected to rise to 75% in the next 2 years.

The GOI also throws out regular incentives along the way. Last Budget, it introduced mandatory recycling for critical minerals. And in September 2024, crucial GST relief was granted for scrap players, which will boost 2025 revenue. Finally, industry associations are expecting subsidies for recycling equipment in the Budget 2025. Let’s wait and watch how this pans out. FYI - Antique Broking has a new target price of Rs 2,770 p/sh on Ganesha Ecosphere (a whopping +52% upside from current levels) and sees a further +47% rally on Gravita India!

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Top Brokerage Picks For 2025

We’re back with Part 2 of our New Year Stock Picks series. This time we take a look at hot investment ideas from India’s leading broking houses - with up to 60% potential upside!!! The perfect cure for your underperforming portfolio. Do not miss it folks!