Tale of the Tape 

Good evening everyone!

Markets climbed back from the day’s low to close with minor cuts. FYI - the Nifty closed down for a record 10th straight day. Midcaps closed flat, while Smallcaps (+0.7%) posted decent gains. The advance-decline ratio was in favour of the bulls (3:2).

It was a mixed-bag kinda day for sectors. PSU Banks (+1.6%) and Energy (+0.8%) saw the most buying. Auto (-1.3%) and IT (-0.9%) were hit by the deepest cuts.

India’s met dept has predicted a scorching heatwave. Our top story below tells you how best to play the summer stocks theme!

After a brutal M&A war, is the cement industry set for a turnaround? More details below.

Defence stocks soared today. Check out their charts below to find out why.

Bajaj Auto (-5%) was the top Nifty loser, extending yesterday’s losses. PS - the firm reported a -14% YoY drop in two-wheeler sales for February!

SBI gained +3% after getting a double upgrade from Citi. The brokerage hiked its target price to Rs 830 p/sh vs Rs 720 p/sh earlier.

Gensol Engineering hit a -20% lower circuit after Care Ratings downgraded some of its borrowings to default!

Sona BLW fell -3% after Trump’s Mexico and Canada tariffs came into effect.

Senores Pharma jumped +6% after acquiring 14 ANDAs from Dr Reddy’s.

Here are the closing prints:

Stock
Sizzling Summer Stocks

India saw its warmest February since 1901, with mean temperatures around 1.3 degrees above normal! The IMD says this will translate into an “intense heatwave” from March to May, potentially surpassing last year’s brutal weather.

So where should you place your bets? First up are the classic consumer durables. Channel checks by analysts suggest that dealers are aggressively stocking up on ACs to avoid a stock-out situation like last year. Demand for fans & refrigerators, which slumped in the winter,  are also expected to pick up by March. FYI - BNP Paribas estimates that some large retailers are stocking up ACs at 1.5x vs last year’s levels! The brokerage’s top picks are Voltas (+13%) and Havells (+38% upside). That said, price hikes are a key monitorable; especially since margins have fallen recently for several players.

Beyond this there’s cool drinks. Hotter weather = more people drinking soda pop. FYI - CLSA upgraded Varun Beverages to a ‘high conviction’ pick and sees a +62% upside. They say that with its capex cycle over, the ground is set for strong future growth in profits. 

Finally, we have travel & hospitality which see demand spikes in the summer. We covered the hotel sector last week (do check it out here!). But in travel, IndiGo has been KILLING it, with its market share hitting an all-time-high of 65% in Jan 2025. This partly explains why it’s barely seen any correction so far this year!

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Stocks To Buy In This Fall

Markets have seen a healthy correction from their all-time highs. Experts say this may be one of the best times to build your portfolio. Here are 5 midcap & smallcap stocks that you must absolutely not miss according to market experts.