Tale of the Tape 

Howdy folks. Welcome back to the market of stocks!

Nifty and Sensex recovered from the day’s low to close down -0.6% each. Midcaps (+0.4%) and Smallcaps (+0.7%) saw solid buying. PS - so much for all the Black Monday dooming. The advance-decline ratio was in favour of the bulls (3:2). 

It was a mixed-bag kinda day for sectors. Metals (+0.7%) were the top gainers. IT (-1.5%) and Auto (-0.9%) witnessed the most selling pressure.

The Israel-Iran war sounds scary, but experts say you should buy on dips. Read our top story on why there’s little reason to be worried.

Kalpataru’s IPO kicks off tomorrow. Check out our analysis below to help you decide whether to subscribe.

IT stocks took a beating today. Look at their charts below to find out why.

Zee Entertainment (+11%) was the top NSE 500 gainer after unveiling a strategic roadmap including promoter stake hikes + capital infusion.

BSE (+3%) and Indigo (+1%) were in focus after reports said they could be added to the Nifty. PS - Hero MotoCorp and IndusInd Bank may be kicked out.

Ola Electric (-6%) hit a new all-time-low after 2.4 crore shares, 0.55% equity, changed hands in multiple block deals; the buyers and sellers were not known.

Northern Arc Capital zoomed +10% intraday after reports said ace investor Madhusudan Kela had acquired a stake in the firm through last week’s block deals.

MRPL (+8%) and Chennai Petro (+11%) soared after Yes Securities issued a bullish call.

LT Foods (-6%) was the top NSE 500 loser after the US imposed a whopping 340% duty on its subsidiary’s soybean exports.

Zen Technologies was locked in a +5% upper circuit after it entered the UAV industry with a small acquisition.

Market
Are Markets Immune To War?

With the US stepping into the Israel-Iran conflict, it’s natural for global and Indian markets to feel jittery. The headlines may seem alarming, but most experts say this is just a speed bump and you should continue buying! Here’s why:

1) What history tells us: Since 2011, we’ve had four major global conflicts that have had an impact on the world’s energy market. The maximum Nifty drawdown we’ve seen is -6%, which is during Russia’s invasion of Ukraine when prices of Brent crude peaked at $128 per barrel. During other conflicts like the Libyan Civil War, the Nifty actually went up +7%. PS - More recently, while we’ve seen some volatility in June, the Nifty is actually up +13% from April lows!

2) Higher oil prices: Yes, rising energy prices can affect our macros. But they are in great shape and even if oil prices go up by $10 per barrel, the impact will be minimal. We also have more than enough forex to deal with volatility and inflation recently hit a 6-year-low. Now, Iran has threatened to close a key shipping route called the Strait of Hormuz. If this happens, global crude prices could go CRAZY. But the GOI has said we can step up purchases from other sources aka Russia and the US and that we have enough stocks to wait out the crisis.

3) Not a forever war: Trump has made it clear that the US’s involvement was limited to precision strikes. Defence analysts say it's unlikely to become a drawn-out affair, which is good news for a quick ending to this conflict.

Zooming out: Experts say there’s nothing to suggest we need to start selling. Obviously keep an eye out for oil-sensitive stocks; OMCs, aviation, paints. But otherwise, continue your SIPs and maintain calm!

Specials
IPO Express - Oswal Pumps

We’re back with Episode 2 of IPO Express! In this edition, we sit down with Amulya Gupta, promoter of Oswal Pumps, to dive into the company’s operations, growth plans, and 5-year vision. Watch the full interview below!