Tale of the Tape 

Howdy folks and welcome back to the market of stocks!

Markets were on FIRE today as investors cheered the GOI’s decision to cut GST rates on a wide range of goods. The Nifty (+1%) and Sensex (+0.8%) saw solid gains. The optimism spread to broader markets as well, with Midcaps (+1.1%) and Smallcaps (+1.4%) seeing strong buying. A cool 385 stocks in the NSE 500 ended in the green.

Most sectors ended higher as well. Real Estate (+2.2%) and Metals (+1.9%) led the rally. Meanwhile, IT stocks (-0.6%) witnessed some selling pressure.

In today’s issue of the Daily Rip, we look at which sectors will benefit the most from the GST bonanza, Vikram Solar’s upcoming IPO, trending charts and more.

Honourable mentions: 

Plastic pipe stocks saw a bump after the DGTR recommended an anti-dumping duty on PVC resin imports. Astral, Supreme Industries and Finolex rallied between +3% and +6%. Glenmark Pharma (-3.5%) was under pressure; Nomura sees a -25% downside from current levels.

Check out the NSE 500 heatmap:

Market
GST 2.0 Is Coming

We’re heading into a rough Independence Day weekend folks! All investor eyes are currently on the Trump-Putin summit that will take place in Alaska on Friday. This is a BIG deal for us, especially considering our economy and stock markets are ALREADY struggling. Here’s what you need to know.

ICYMI - India’s been hit with 50% tariffs for buying Russian oil. In Trump’s eyes, us buying oil from Russia means we support the Ukraine war which is a major no-no for him. And let’s be real, a 50% tariff is brutal. It will shave 1% off our GDP -- say good-bye to 6%+ GDP growth -- and result in massive job losses + pain in the informal economy. Experts say it could also delay the recovery in corporate earnings, which is a big negative. 

That said, it gets worse. US officials have warned that if the Trump-Putin summit doesn’t go well, they could increase our tariffs EVEN MORE. Treasury secretary Scott Bessent said: “It’s put up or shut up time… We put secondary tariffs on the Indians for buying Russian oil. And I could see if things don’t go well, then sanctions or secondary tariffs could go up.”

All of this has taken the sheen off India’s markets. The Nifty (+4% YTD) has severely underperformed Asian rivals including China (+30% YTD), South Korea (+34% YTD) and even Japan (+9% YTD). This gels with a recent BofA survey which shows India went from the most-preferred market to least-preferred in just three months. Yes, global investors are fickle and we can bounce back easily. But it’s a solid signal of the current sentiment around India’s markets.

Big Picture: We don’t bring any of this up to alarm you. But it is important to remember a stock market’s broader performance depends on fundamentals + narrative. Trump’s tariffs hurt us on both counts. The GOI needs to get to work and hopefully with a little luck, Alaska will go our way. As expert Ajay Bagga notes: “The setup is good for a recovery ahead, but the economy and earnings need to show spunk. Once the markets, which are forward looking discounting mechanisms, sense this, expect a strong rally.”

Specials
Ashish Kacholia Portfolio Changes

With ₹2,600+ Cr across more than 40 stocks, Ashish Kacholia’s portfolio is full of interesting picks. In our latest video, we dive into his top holdings, new stock picks, and major portfolio changes this quarter.