Tale of the Tape 

Good evening everyone. 🤘

Nifty (+0.3%) and Sensex (+0.2%) hit a new all-time highs (again) before cooling off to end with minor gains. Midcaps (+1%) and Smallcaps (+1.2%) continued their party. The advance-decline ratio was in favour of the bulls (3:2). 🚀

Most sectors ended in the green. PSU Banks (+1.2%) and Oil & Gas (+0.8%) were the top winners. FMCG (-0.5%) saw some selling pressure. 💸

Missed buying the dip last week? Read our top story below to find out how to play the rest of 2024. 💯

Oil stocks have been on fire. Is it too late to join in on the fun? Read our story below to help you decide. 🔥

TVS Supply Chain, Shipping Corporation and Vodafone-Idea have all seen big movements. Check out their charts below to find out why. 📈

Federal Bank (+4%) gained after reports said it submitted three CEO names to the RBI, including former Kotak Mahindra Bank’s KVS Manian. 👀

Go Digit General Insurance rallied +10% intraday on strong Q4 results. 📊

HCL Tech rallied +3% intraday after renewing a $278-million deal with Germany’s apoBank. PS - Morgan Stanley says this will help HCL hit its FY25 revenue guidance. 🥳

Ixigo IPO was subscribed +100x on the final day of bidding. 🤯

Here are the closing prints: 

Market
Market Kya Lagta Hai?

Markets crashed after the election result but then quickly recovered. To top things off, Nifty hit a new all-time high today. For folks who were waiting to get in at lower levels, we don’t blame you for having major FOMO right now. Two obvious questions here: what the hell is happening and how should you be looking to play the rest of 2024? 🔍

First off, there’s no getting around it. Retail investors are the OGs. FYI - SIP inflows hit a RECORD HIGH in May at Rs 20,904 cr, the 11th straight month of a new high. Initial data for June shows the same thing, with FIIs selling and domestic investors snapping things up. 💰

Now, this doesn’t mean markets will keep shooting up forever. Most experts are advising caution, but also saying look for pockets of opportunities. Where should you be cautious? No surprises, but it's in the midcap and smallcap spaces. Bernstein is underweight on both segments, while JM Financial says it prefers large caps due to valuation concerns in other areas. 📈

On the opportunities front, analysts say don’t run away from all pre-election themes just yet. After all, the new Modi cabinet signals policy continuity which has helped keep market spirits high. As Prudent Equity’s Diwakar Rana notes: "It is expected that the NDA government will continue to prioritize industries like banking, infrastructure, and green energy which they did in the first and second term.” 💯

Beyond this, almost everyone is looking at sectors that will bounce back if the GOI boosts rural consumption: FMCGs, consumer durables, liquor and tractors. Finally, for those wanting to stay on the sidelines for a bit, that’s fine too. Just make sure to keep your SIPs going! 💪

Specials

Election Stocks Picks By Brokerages 🚀 

Modi 3.0 begins is off to a bang with markets hitting new all-time highs. Which stocks should find a seat in your portfolio? Check out our recent video where we cover brokerage picks post-election results.

Stocks

Everyone ♥️ Oil Stocks

Oil stocks have been KILLING it. Indian Oil, BPCL, HPCL and ONGC have all posted over +40% gains in the last six months. But how much longer can this party continue? Here’s everything you need to know. 😎

This may come as a surprise, but OMC stock gains came at a time when their Q3 and Q4 were not that great. Oil prices spiked after the Israel-Gaza conflict started which led to a drop in their profits. The thing is though, most investors saw this just as a temporary disruption. 🛢️

Morgan Stanley called it just the beginning of a ‘multi-year re-rating and earnings upgrade cycle’.The brokerage cited healthy demand + refining capacity expansion as key positive triggers. As it turns out, they weren’t wrong. Oil prices hit a 4-month-low at the start of June, DESPITE OPEC+ extending production cuts till 2025. This is a big positive because lower crude oil prices = higher refining margins. 📊

The only major worry here is that with lower oil prices, the new GOI may be encouraged to slash fuel prices to win back voters that went against them in the recent election. But oil minister Hardeep Puri’s initial remarks have been very reasonable, saying it would only happen if oil prices sustained at $80-levels. ✅

Finally, beyond this, PSU refiners have kept shareholders happy with decent dividend payouts. And best of all, despite the recent gains, valuations STILL look good. This is because they saw small & healthy corrections along the way. FYI - HSBC is upbeat on HPCL (target price: Rs 630 p/sh), BPCL (Rs 860 p/sh) and IOC (Rs 185 p/sh). 🚀

Charts

Chartbusters

Here are three companies that saw BIG movements today:

1) TVS Supply Chain hit a two-month high after it bagged a 5-year ‘strategic’ contract with Germany’s Daimler. The logistics pact will see the company help streamline Daimler’s supply chain in the Asia-Pacific. FYI - TVS management expects the deal to help it post +15% topline growth in FY25. 🤑

2) Shipping Corporation of India rallied over +7% intraday after reports claimed its strategic sale would move ahead. ICYMI - negotiations were delayed over the PSU not receiving a stamp duty waiver from the Maharashtra government. With the elections over, it looks like it's full steam ahead! 🥳

3) Vodafone Idea is up +8% over the last week on a bunch of small, positive triggers. FYI - reports say the company is looking to convert debt owed to Nokia and Ericsson into equity. This would also help it secure 5G service equipment from both firms. Beyond this, reports also say it’s gotten in-principle approval for a Rs 14,000 cr loan from a SBI-led consortium. 🛜

Check out their charts below:

Links That Don’t Suck

💯 Brokerage stock picks for Modi 3.0 | Stocks to buy post election | Latest stock picks 

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