Tale of the Tape 

Happy Friday y’all. The bear market lasted for the whole of just one week.

Nifty and Sensex recovered all of the previous week’s losses and gained more to end at fresh all-time highs. Midcaps (+0.7%) and Smallcaps (+0.8%) were also up big time. The advance-decline ratio was in favour of the bulls (3:2). Check out the Stocktwits Sentiment Meter:

Except FMCG (-0.7%) and Oil & Gas (-0.7%), all other sectors ended in the green. Real Estate (+1.7%), PSU Banks (+1.2%) and Metals (+0.9%) were the top gainers.

The EV industry is in a state of flux. Read our top story on the positive triggers headed its way. 

Nazara Technologies (+4%) gained after a big acquisition. Bharti Hexacom jumped +10% intraday after getting an upgrade. More details below.

Kalyan Jewellers India (+4%) gained after Citi hiked its target price to Rs 770 p/sh (vs Rs 650 earlier).

Patanjali Foods cracked 4% after 1.1 cr share (3% equity) changed hands in a block deal; the buyers and sellers were not known immediately.

Wipro (+4%) was the top Nifty gainer totally ignoring Kotak‘s sell call after a recent management interaction lol. 

Order wins. HG Infra Engineering gained +4% after bagging a Rs 716 cr contract from the 

Central Railway. Transformers and Rectifiers India was up +2% after winning an order worth Rs 114 cr.

Panacea Biotech was locked in a +5% upper circuit after getting a $20 million loan from US DFC for capex expansion.

Here are the closing prints:

Sector
The Future Is Electric

India’s electric vehicle (EV) sector has been chaotic AF lately. After a huge boom in 2023, sales have hit a speed bump. EV car volumes were down -10% YoY in August 2024 and were the LOWEST they’ve been so far this year. FYI - EV two-wheelers are doing a little better. Growth did slow down in August, with sales down -17% MoM, but were still up a solid +41% YoY. 

EV blues are due to a couple of reasons. Some are temporary (a lack of GOI subsidies), some are uncertain (will hybrids kill EVs?), and some are long-term (charging infra & service standards still suck).

But there’s a lot on the menu in the months ahead. For starters, thousands of crores are being pumped into the two-wheeler segment. ICYMI - the GOI recently launched the PM e-drive scheme with an outlay of Rs 10,900 cr. This is basically FAME 3.0, which companies had been waiting for a LONG time now. Two wheelers will get the subsidy boost they lost back in April 2024. PS - the Ola Electric IPO and the upcoming Ather IPO will increase liquidity and hopefully allow them to set up more charging outlets quickly. 

At the other end, EV carmakers are starting to do what they should have already done: launch more models with different sizes and at different price points. At some point, you have to start throwing things at the wall and see if something sticks. The way traditional car companies did with the compact SUV segment. FYI - JSW-backed MG Motors recently launched the Windsor, its CUV priced at an aggressive Rs 10 lakh. This is just the first of its new launches and the tip of the iceberg. In the next six months we will have Maruti’s eVX, Hyundai's updated Kona EV, Kia's EV9, and Mahindra's XUV e8. Full steam ahead!

Stocktwits Specials
Stocktwits India Momentum Index 🚀 

The Stocktwits India Momentum Index was up +2% today

Godfrey Phillips rallied +10% on Friday; extending its unbeaten streak to a 6th consecutive week. Oil India closed down for the week despite today’s big up move. On the flip side, NBCC and new entrant Aegis Logistics are very close to dropping out.

PS - The Stocktwits India Momentum Index highlights the top 10 performing companies based on their weekly returns. Plus, we bring you tons of exclusive content on the featured stocks including SEBI RA trade ideas, latest news & earnings updates, fundamental and technical insights.