Tale of the Tape 

Good evening everyone. Welcome back to the Daily Rip!

Nifty (+0.4%) and Sensex (+0.3%) ended in the green on the back of strong global cues + a rally in banking stocks. Midcaps (+1.1%) and Smallcaps (+1.6%) zoomed too.The advance-decline ratio was in favour of the bulls (4:1).

Except Real Estate (-0.1%), all other sectors gained. PSU Banks (+1.5%), Energy (+1.2%) and IT (+1%) saw the most buying.

The rare earth magnet crisis is starting to hit India’s auto sector. Read our top story to get all the deets.

HDFC Bank was recently hit by fraud allegations. Exaggerated or a cause for concern? More details below.

Swiggy, MCX and MGL saw big moves today. Check out their charts below to find out why.

Bajaj Finance (+3%) has set June 16 as the record date for its stock split & bonus issue.

Jio Financial (+4%) was the top Nifty gainer after its mutual fund biz with BlackRock appointed a new leadership team.

Time Technoplast jumped +7% after Motilal Oswal initiated coverage; the brokerage sees a +38% upside from current levels.

Olectra Greentech was in focus after its chairman & MD abruptly resigned citing personal reasons.

Kalpataru Projects rallied +5% intraday after bagging new orders worth a whopping Rs 3,789 crore.

Stock
Odd Bank Out!

Banking and NBFC stocks are partying after the big RBI rate cut barring HDFC Bank. ICYMI - HDFC and its CEO were hit by fraud allegations, which have been weighing on sentiment. The whole affair is kinda murky, but let's take a look. 

The lowdown: The medical trust behind Mumbai’s Lilavati Hospital has accused HDFC boss Sashidhar Jagdishan of financial fraud, criminal conspiracy & evidence tampering. More importantly, they claim that Jagdishan was helping a “rogue” trustee group -- aka some members of the Mehta family, which runs the Lilavati trust --- in siphoning off public charitable funds and harassing the trust’s founder Kishor Mehta. 

They also allege about ~Rs 2 cr was given in “unaccounted cash payments” to Jagdishan. If you find this confusing, congrats you aren’t alone! The obvious question is why HDFC’s Jagdishan is involved in what looks like a family feud. Which brings us to the bank’s defence…

HDFC reply: The lender says its involvement with the Mehta family is limited to another one of its companies (Splendour Gems) defaulting on ~Rs 65 cr. The bank has been trying to recover its money and that all of these allegations by the medical trust are "retaliatory in nature” and done for “evading repayment of long-standing dues”.

So what happens next? Tbh, there doesn’t appear to be any immediate impact on HDFC itself. The Lilavati trust has filed an FIR against Jagdishan and the bank says it will fight it out in court. For HDFC investors, the only thing to keep an eye out for is if SEBI or RBI gets involved which would hint that this is more serious than it looks.

Specials
Best Stocks To Buy Now

Markets are less than 5% away from new all-time highs! Experts say this may be one of the best times to build your portfolio. Here are 5 midcap & smallcap stocks that you must absolutely not miss!