Tale of the Tape 

Hola Amigos!

Markets were fine mood today with the Nifty and Sensex gaining +0.7% each! Broader markets were up big too as Midcaps (+1.1%) and Smallcaps (+0.8%) clawed back most of this week’s losses. Gold continued to break all records crossing the $4.2k mark for the first-time-ever, as Fed rate cut optimism lifted spirits.

It was a wave of green across sectors. Real Estate (+3%) led the rally, followed by PSU Banks (+1.7%) and Metals (+1%).

In today’s issue of the Daily Rip, we cover Axis Securities’s Diwali picks, Tata Communications & Persistent Systems Q2 results, the top newsmakers and more.

Honourable Mentions:

Keystone Realtors tanked -8% after the promoters will sell ~46 lakh shares (3.6% equity) via the OFS route. SKF India was in focus after adjusting for the demerger of its industrial business. PS - the newly demerged business will be listed as a separate entity later next month.

Check out the NSE 500 heatmap:

Stock
Fataka Stocks!

It’s that time of the year again folks! As we kick off festivities next week, the mood is shaky. Nifty has underperformed every major Asian rival YTD, FII flows are weak and the Trump tariff bomb hasn’t been defused. But in every crisis, there is opportunity. Here are Axis Securities’s top three Diwali picks:

1) Rainbow Children’s Medicare: For the unaware, this is India’s largest pediatric healthcare network with nearly ~1,900 beds across 3 cities! What’s popping? Well, it’s in the process of a big 1.5x increase in total bed capacity by FY28 which includes expanding into 4 new cities. Analysts expect double-digit revenue growth in the medium-term and best of all, it’s a ‘defensive’ pick which means it’s insulated from the domestic & global economy. PS - Axis sees a +22% upside from current levels.

2) DOMS Industries: India’s leading stationery maker is down -8% YTD. But there are three big triggers that could spark a rally. The first are the GST cuts which are already starting to boost volume growth. Secondly, its recent acquisition of notebook manufacturer Super Treads should juice up its paper stationery portfolio. And finally its new 44-acre greenfield facility will start production from Q4FY26 which should help cater to rising demand + grow exports. FYI - Axis has a target price of Rs 3,110 p/sh; implying a +25% rally. 

3) Kotak Mahindra Bank: The stock is up +20% YTD easily beating most benchmark indices. But analysts say its rally is just getting started. Let’s start with the positives; it’s finally got its unsecured book under control which means it can now look at credit card & personal loans as a growth driver again. The stress in the microfinance & retail CV verticals is tapering off and should be fine by H2FY26. All of this could pave the way for big-time growth. PS - Axis sees a further +16% jump from current levels.