Tale of the Tape 

Good evening ya’ll. Welcome back to the Daily Rip!

Markets were boring AF! Nifty and Sensex closed barely unchanged. Midcaps and Smallcaps were equally lazy. The advance-decline ratio was evenly split. PS - keep an eye out for the RBI rate decision on Wednesday.

Most sectors ended in the green. PSU Bank stocks (+1.8%) were the star of the day, followed by Oil & Gas (+1.4%) and Real Estate (+0.9%). Auto (-0.2%) and Pharma (-0.2%) saw minor cuts.

We have a packed newsletter for you today where we look at whether India’s consumption story is set to take off, cover Glottis and Pace Digitek’s IPOs, unpack HUL’s gloomy Q2 biz update and Marcellus’s latest woes.

Honourable Mentions:

Wockhardt (+15%) was the top NSE 500 gainer on Trump’s pharma tariff clarification. Vascon Engineers hit a new 52-week high after partnering with Adani Infra.

Check out the NSE 500 heatmap:

Economy
The Great Indian Consumer!

Hey guys, today we’re gonna be looking at India’s consumption story. So here’s a quick look at what’s going on and sectors/stocks that stand to gain.

Since February, we’ve seen three big moves. First, the RBI cutting interest rates to a 3-year-low. Secondly, the GOI slashing income tax rates & GST rates. And finally, a GDP recovery that’s been accompanied by lower inflation + improved GOI capex. 

All of this has started to pay off in a BIG way:

• Auto sales: Maruti delivered 25k cars on September 22 (first day of Navratri), Hyundai clocked 11k dealer billings (its best one-day show in 5 years), while Tata Motors sold 10k units. Analysts say this is a start of a revival for the sector. Motilal Oswal now projects 8% volume growth for the industry in FY27 vs 4% earlier. PS - no wonder the Nifty Auto Index has zoomed +16% YTD, easily beating the Nifty’s 4%.

• E-commerce sales: Amazon’s Great Indian Festival saw its biggest-ever opening, with Tier-2 & 3 cities driving 70% of traffic, which is INSANE. FYI - Amazon says consumer durables and electronics were the biggest categories. No surprises that some of the better performing companies like Amber Enterprises are up +14% over the last month.

• Credit card spending: After the RBI’s personal loan crackdown last year, some experts worried overall credit growth would drop. But overall credit card spending hit an all-time-high in July, while spends grew +14% YoY in August.

TL;DR: Consumption is starting to pick after a weak 2024. But we’re still a long way off from the post-pandemic highs. That’s why you need to do your homework. Some industries require more time or have other factors affecting them. For example - FMCG stocks are likely to continue to drag, which is why the Nifty FMCG Index is down -3% YTD.

Specials
Rally In VodaIdea Share!

VodaIdea has rallied ~30% in the last month. Is it a sign of changing fortunes or just wild speculation? We break down all the latest news, industry developments and brokerage ratings in our latest video. Miss it at your own expense!