Tale of the Tape 

Good evening everyone. Welcome back to the Daily Rip!

Markets continued to climb higher with the Nifty (+0.6%) ending just ~60 points away from 26k! Midcaps (+0.8%) and Smallcaps (+1.1%) followed suit. PS - Stocktwits India Momentum Index dipped -0.2%. The advance-decline ratio was in favour of the bulls (3:2).

Except IT (-0.5%), all other sectors ended in the green. PSU Banks (+3.4%), Real Estate (+2.2%) and Oil & Gas (+1.9%) were the top gainers.

BSE has been on a red, hot streak. Read our top story to understand the factors behind the rally and the way ahead.

Manba Finance IPO kicked off today. Check out our analysis below to help you decide whether to invest.

Fusion Finance, Adani Total Gas and Amber Enterprises saw big movements today. Take a look at their charts below to find out why.

Mahindra & Mahindra was the top Nifty gainer after Goldman Sachs hiked its target price to Rs 3,400 p/sh. PS - the stock is up +11% in the last week.

SBFC Finance (+19%) was the top NSE 500 gainer after getting a credit rating upgrade from ICRA.

Vodafone Idea was up +4% after inking a Rs 30,000 cr deal with Nokia and Ericsson for supply of key telecom equipment.

SpiceJet gained +6% after raising Rs 3,000 cr via the QIP route. PS - the airline desperately needed funds after recent troubles.

Glenmark Pharma rallied +9% intraday after the USFDA issued a clean chit to its Aurangabad facility.

Hind Rectifiers hit a +5% upper circuit after bagging an order worth over Rs 200 cr from the Indian Railways.

Here are the closing prints:

Stock
Khelo India Khelo

BSE has been on fire after rallying +47% in the last month. This is INSANE by any standard, especially considering the stock had already +2x in the year before that. Here’s a quick look at the reasons behind the surge.

1) New investors: BSE has benefited from being the primary casino in India’s crazy & often speculative trading boom. ICYMI - the total number of demat accounts crossed the 17-cr mark recently, with 42.3 lakh new accounts opened in August alone! This means India’s total demat account now is greater than the population of countries like Russia, Mexico and Japan. Lol.  

2) IPO craze: At least a part of this demat surge is likely due to the insane IPO frenzy we’ve seen in 2024. More than $28 billion was raised through IPOs in H12024, with listings giving an average gain of 25% on their first day of trading. People want easy money and can you blame them? 

3) NSE IPO: Arguably the biggest trigger has been speculation around the NSE listing. The stock exchange’s IPO has been delayed by SEBI for over a year now due to several legal issues. With these being cleared up, the IPO is coming soon. There is a rub-off effect on BSE. But there’s also excitement because NSE has to list on BSE due to GOI rules against self-listing. As Piper Serica’s Abhay Agarwal notes: “When a company like NSE, worth 3-4 trillion rupees, lists on BSE, it will drive up volumes and improve the latter’s market share.” 

Big Picture: While there’s a lot going for BSE, be careful of the potential downsides. The SEBI wants to crack down on the F&O party, a major growth driver for the stock exchange. If it pushes through its new rules, then it is a big negative. Also, BSE’s valuations are crazy high right now. PS -  Navodit Tiwari, a SEBI-registered analyst, recommends to book as much profit as you can and hold only a little till NSE’s IPO. Check out his analysis on Stocktwits here.

Stocktwits Specials
Buy The Dip In Defence Stocks?

Most defence stocks are down 25-30% from their all-time highs. Experts say this could be a “golden opportunity” to add select defence stocks at current levels. Find out which are these stocks and their 12-month target prices in our latest video.