Tale of the Tape 

Howdy folks. Nifty ended above the 25k-mark!

US Federal Reserve Chief Jerome Powell’s dovish comments cheered markets, with the Nifty and Sensex rallying +0.8% each. More details below. Midcaps (+0.6%) followed suit while Smallcaps (+0.3%) ended with minor gains. The advance-decline ratio was in favour of the bulls (3:2). Check out the Stocktwits Sentiment Meter:

Except for PSU Banks (-0.5%), all other sectors ended in the green. Metals (+2.2%), Real Estate (+1.8%) and IT (+1.4%) were the top gainers.

Tata Elxsi zoomed +11% today! ICYMI- Marcellus recently exited the stock lol. Read our top story to understand how Saurabh Mukherjea’s investing strategy failed after Covid.

Paytm, Zydus Lifesciences and Honasa Consumer all saw big movements today. Check out their charts below to find out why.

NIIT was locked in a +20% upper circuit after ace investor Ramesh Damani picked up a 0.59% stake in the firm.

Brokerage reactions. Emcure Pharmaceuticals rallied +5% intraday after Jefferies initiated coverage on the stock; the brokerage sees a +13% upside from current levels. Bansal Wire Industries was up +6% after Invesec says it sees +18% upside from Monday’s close.

Interarch Building Products had a solid market debut, ending the day +34% higher than its IPO price.

BHEL was up +3% intraday after bagging a massive Rs 11,000 cr thermal power project order from Adani Power.

Max Estates (+5%) hit a 52-week-high after getting approval for its big ‘Delhi One’ project in Noida.

Shilpa Medicare (+5%) gained after successfully completing Phase-3 trials for a new fatty liver drug.

MedPlus Health was in focus after 1.5 cr shares (12.8% equity) changed hands in a block deal; the buyer and seller were not immediately known.

Here are the closing prints:

Market
The Time Has Come

Markets finally broke out after trading in a narrow range for the past couple of weeks. The Nifty reclaimed the 25,000-mark for the first time since Aug 1. This comes after the dovish remarks by US Federal Reserve Chief Jerome Powell at the Jackson Hole Summit sent US stocks rallying. 🚀

For the unaware - The Jackson Hole Economic Symposium is an annual event where central bankers, economists, and top global leaders meet and discuss key global economic issues. Consider it as the Comic-Con or Coachella for finance nerds. The theme for this year’s conference is “Reassessing the Effectiveness and Transmission of Monetary Policy” 🥱

So why is everyone sooo excited over a bunch of old dudes meeting? Well it's mainly because Fed Chairman Jerome Powell confirmed, in no uncertain terms, that interest rate cuts are coming starting next month! 🥳

In the early part of his speech, he said, “The time has come for policy to adjust. The direction of travel is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

The question now is not whether the Fed will cut but how quickly it will need to cut based on the economy’s trajectory. Currently, the market is pricing in 125 bps in cuts before the end of the year, which is significantly more aggressive than the Fed’s June projections. 👀

Either way, this is a big positive for stocks, according to market experts. Palka Arora Chopra, Director of Master Capital Services said: 📈

“A Fed rate reduction will result in a weaker US dollar, increased liquidity, cheaper borrowing costs, etc. Given these factors, Indian sectors that might benefit from a Fed rate cut are IT, BFSI, auto, and realty.” 

(PS - kudos to Tom Bruni from our US team for contributing to this piece)

Stocktwits Specials
Right Time To Enter HAL? 💣

HAL has cooled off sharply post Budget and is trading near its key support levels. Brokerages and SEBI RAs continue to remain bullish and see healthy upside from current levels. What should be your next step - if you’re already holding the stock or considering buying? Check out our latest video and find out.