Lazy Monday

Tale of the Tape 

Hola Amigos. Welcome back to the Daily Rip! 👋 

Nifty and Sensex ended flat after heavyweight selling weighed on markets for most of the day. Midcaps (-0.4%) and Smallcaps (-0.2%) had a weak trading session as well. The advance-decline ratio was in favour of the bears (3:2). 📉 

It was a mixed-bag kinda day for sectors. FMCG (+1.6%) and Oil & Gas (+0.9%) were the big winners. PSU Banks (-1.6%), Metals (-0.9%) and Pharma (-0.6%) saw profit booking. 💸 

Titan (-3%) was the top Nifty loser after its Q1 update left investors worried. Read our top story below to find out more. 📊 

Looking for a foreign investor assessment of India and Indian stocks? Check out the top takeaways from our co-founder Howard Lindzon’s chat with JC Parets and Michael Parekh. 💯 

RVNL, Marico and Man Industries all saw big movements today. Check out their charts below to find out why. 🔥 

Q1 biz updates. Bank of Baroda cracked -4% after reporting its weakest deposit & advance growth in the last 12 quarters! Meanwhile, Adani Wilmar rallied +4% intraday after posting +13% YoY volume growth.  

Stylam Industries gained +5% after Equiris initiated coverage on the stock; the brokerage sees a +21% upside from current levels. 🤑 

Paytm jumped +8% after Vijay Shekhar Sharma said his goal was to make Paytm a $100 billion firm. 🚀 

KPI Green Energy was up +4% intraday after signing a power supply agreement with a Gujarat discom for a solar-wind project. ⚡️ 

Swan Energy was locked in a +5% upper circuit after 12 lakh shares changed hands in a block deal; the buyers and sellers could not be immediately identified. 🤝 

Here are the closing prints:







Bank Nifty



Titan(ic) Sinks!

Titan (-4%) was the top Nifty loser after a disappointing Q1 biz update! ICYMI - the company’s overall business grew +9% YoY, below analyst estimates which were ALREADY low. To add salt to injury, its topline growth was mostly due to an increase in average selling prices and not a bump in new customers. 🚨 

The jewelry king has multiple excuses: higher gold prices and a lower number of wedding days during Q1 are on the top of the list. And this appears fair, on the surface at least. After all, there has been INSANE volatility in gold prices due to investors turning to safer assets as a way of dealing with geopolitical turmoil. 🤕 

But this doesn’t pass the smell test. There are two problems with this. First, as JP Morgan notes, the more concerning issue is that Titan is seeing very low growth in the premium studded jewelry segment. A vertical that is supposed to be a key growth driver with huge potential. In fact, despite all the price swings, growth in the low-margin plain gold segment beat out the studded vertical. Perhaps a sign of downtrading, which is a negative.  👎️ 

Secondly, all the sectoral issues that Titan cites should apply to other players in the same sector. But that isn’t hurting other companies like Senco Gold or Kalyan Jewellers, both of whom have been KILLING it. ⚔️ 

Yes, nobody expects a giant like Titan to be as agile as smaller rivals, who are experimenting with categories, formats and new markets. But, being the industry leader should also come with perks that lets you keep up with the rest of the pack. After all, Titan has CRAZY high valuations that it needs to justify. FYI - JP Morgan has downgraded Titan to ‘neutral’ now and slashed its target price from Rs 3,850 p/sh to Rs 3,450 p/sh! Whew. 👀 

What’s your view on the stock?

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Stocktwits Trends With Friends

India In A Sweet Spot

While the first half of 2024 has been a WHIRLWIND for markets, FII ownership is at an all-time low. If you’re wondering what people across the pond are thinking about India, we got you covered. Stocktwits co-founder Howard Lindzon chops it up with pals JC Parets and Michael Parekh (former global head of technology equity research at Goldman Sachs) in the latest episode of Trends with Friends. 💯 

Here are the top takeaways:

1) On India elections and foreign capital: A smaller mandate for the Modi government is a GOOD thing. Puts the brakes on the minority stuff and improves the environment for any US company looking to invest more regularly. India has a big demographic dividend, but the country needs capital to come in with confidence beyond the small group of billionaires that snap up most of the current opportunities! 📈 

2) On booming stock market: Nifty 50 and Nifty 500 movements in June have been impressive AF, the way they bounced back after results day. India’s stock market will likely beat Japan soon. Yes, some sectors are expensive. But if you look at the potential opportunity in sectors like banking, and how India is leapfrogging, it looks good. 💪 

3) On Indian stocks listed in the US: MakeMyTrip is still very small and has a HUGE growth runway. The GOI is spending massively on airport travel and if you had to bet today between and MakeMyTrip, the latter looks good. Ditto for ICICI Bank and Dr Reddy’s, whose charts show “relative strength” but not overextension. 🤑 

Watch it on YouTube, Spotify, or Apple, and subscribe to catch each episode when it goes live!



Here are three companies that saw big movements today:

1) RVNL (+16%) was the top NSE 500 gainer after 1.5 cr shares (0.8% equity) changed hands in a big block deal. The buyers and sellers were not immediately known. PS - broader investor sentiment around rail stocks was bullish as dates for the upcoming Budget were announced. People are expecting big things from the GOI! 🚄 

2) Marico rallied +6% intraday after posting a solid Q1 biz update! FYI - the company’s top line grew in “high single-digits” and it also expects gross margins to expand YoY due to a better product mix. Domestic volumes were up QoQ on the back of its Saffola and hair oil biz. ICYMI - experts are bullish on FMCG stocks in anticipation of a rural revival + the GOI hopefully boosting consumption. 📈 

3) Man Industries hit a 52-week-high after it bagged its LARGEST-EVER single order win worth Rs 1,850 cr. The company said the contract is for delivering value-added pipes to a major oil & gas company. Fun fact: with this Man Industries total unexecuted order book now stands at Rs 4,000 cr, providing plenty of medium-term revenue visibility! 💰️ 

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