Tale of the Tape 

Howdy folks. Markets were on fire today! 🔥

Nifty (+3.2%) and Sensex (+3.4%) blasted off to record highs after exit polls predicted a big victory for the BJP in the 2024 elections. Midcaps (+3.2%) and Smallcaps (+2.4%) joined the party as well. 401 stocks on the NSE 500 ended in the green. 🐂

Check out the Stocktwits Sentiment Meter:

It was a sea of green across sectors. PSU Banks (+8.4%), Oil & Gas (+6.8%) and Metals (+3.3%) knocked it out of the PARK! 📈

Markets rallied on exit polls predicting a thumping victory for the BJP. But, there are more reasons to be bullish on stocks. Read our top story below. 💯

Kronox Lab Sciences Rs 130 cr IPO opened for subscription today. Check out our analysis below to help you decide whether to invest. 🔍

The Rupee strengthened 32 paise against the US Dollar; the biggest single gain in 6 months. India VIX fell -15% to end at 20.94. 😇

Reliance Industries (+6%) hit a record high of Rs 3,027.7 p/sh. State Bank of India’s (+9.5%) market cap crossed the Rs 8 lakh crore mark for the first time ever. 🚀

Eicher Motors (-1%) was the top Nifty loser after its Royal Enfield sales fell -8% YoY in May. 🏍️

IRB Infrastructure Developers jumped +10% after reports claimed the GOI was going to hike toll charges between 3%-5%. 💰

Here are the closing prints: 

Market
Markets Ride The Modi Wave

Markets ZOOMED to record highs after exit polls showed that the BJP is all set for a COMFORTABLE victory for the third time in a row! Yes, this is what everyone had predicted. But in the last month, several factors (low voter turnout, weird Modi campaigning) led to a spike in uncertainty. FYI - after the exit poll release, the India VIX, a volatility indicator, crashed 19% to hit a cool 19.9. Lower VIX = lower uncertainty which is another positive. ✅

It’s not just exit polls either. Investors are also happy about a bunch of positive macro signals. ICYMI - India’s FY24 GDP growth came in at 8.2%, soaring past all estimates. Overall growth was led by a solid performance in manufacturing, mining and construction sectors. For those worried about consumption growth, which is a legit concern, May’s GST collections rose +10% YoY to Rs 1.73 lakh cr. Ultimately, what everyone cares about is stability in GOI policy, which is why they are happy about the exit poll estimates. 🥳

As Axis Securities put it: “If the Lok Sabha results on 4th June materialize as per the exit poll direction, our country is likely to enter a ‘Golden Phase’ of political stability and policy continuity. The Indian economy is in a sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy. With this expectation, the prospects of the Indian economy appear notably brighter and more promising in the upcoming years.”

That said, here’s a mandatory health warning: exit polls CAN be wrong. They’ve been wrong in the past, both on outcomes and margins of victory & loss, so take it as an encouraging sign and move on with your day. 📈

Specials

Multi-Year Breakout Stocks To Buy! 🚀 

Sitting out and holding on cash is RISKIER than being invested, according to experts. Here are 5 stock picks by SEBI registered advisors that can light up your portfolio. Each of these stocks are trading at their multi-year highs and offers substantial upside from current levels. 💰️ 

IPO

Kronos Lab Sciences IPO Review

Kronox Lab Sciences IPO opened for subscription today! The price band is fixed at Rs 129-136 p/sh. The company aims to raise Rs 130 cr from the IPO. 💸

Founded in 2008, Kronox makes specialty chemicals for a wide range of industries including pharmaceuticals, biotech and metals! Their secret sauce is making ‘high purity’ fine chemicals of various grades ranging from 10 to 100 mesh. Kronox also has clients in over 20 countries including the US, Australia, UK and China. Fun fact: its export revenue has grown at a solid 37% CAGR over FY21-FY23. They also have three manufacturing facilities in Gujarat, which are pretty close to port facilities in Mundra and Kandla. 🏭

FYI - this IPO is completely an ‘Offer for Sale’. ’That means all the money raised will be used to provide an exit to the owners, which is a bit of a negative tbh. 👎

9MFY24 snapshot:

• Revenue: Rs 68 cr; -9% YoY

• EBITDA: Rs 20.5 cr; +14% YoY

• EBITDA Margin: 30.23% vs 24.1% YoY

• PAT: Rs 15 cr; +10% YoY

Big Picture: The entry barriers to Kronox’s business are pretty high. This is good because it means competition isn’t a big concern. That said, Kronox is a smaller player compared to its unlisted peers. The global chemical & pharma industry has also been going through a downturn in FY24, which explains Kronox’s topline drop in 9MFY24. A LOT depends on its ability to expand, execute and ride the upcycle wave whenever it comes. FWIW - the IPO is reasonably priced and current grey market data suggests it may list at a WHOPPING 60% premium. 🤑

Charts

Chartbusters

On a day when markets were on steroids, which stocks saw the most gains? Here are the top NSE 500 gainers and losers for today. To nobody’s surprise, Adani Power took the poll position, surging +17% intraday; Modi victory + Adani is a deadly combo. Power Finance Corporation, took second, up +13.5%, while GAIL rallied +13%. Check out their charts below:

Links That Don’t Suck

🚀 Multi-Year Breakout Stocks to Buy | Latest Stock Picks | Stocks to Buy Right Now 

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