Tale of the Tape 

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Nifty (+0.5%) and Sensex (+0.4%) gained for a third straight session as worries over global uncertainty subsided. Midcaps (+0.7%) and Smallcaps (+1.1%) continued their robust recovery. The advance-decline ratio was in favour of the bulls (4:1). Check out the Stocktwits Sentiment Meter:

Apart from Auto (-0.4%) and Pharma (-0.2%), all other sectors ended in the green. PSU Banks (+2.45) were the top gainer, followed by Oil & Gas (+1.3%) and FMCG (+0.8%).

SEBI is finally unravelling the Gensol Engineering scam. Read our top story for how promoters duped tens of thousands of retail investors. 

IREDA jumped +6% after solid Q4 numbers. Meanwhile, ICICI Prudential was up +3% on a surprising margin bump. More details below.

City gas distribution stocks were under pressure. Check out their charts below to find out why.

IndusInd Bank (+7%) was the top Nifty gainer after the official probe found a lower impact on the lender’s financials than expected.

JBM Auto (+11%) and Olectra Greentech (+4%) gained after reports said the GOI was planning to launch a new tender for 10,000 electric buses.

Bajaj Electricals jumped +8% after signing a supply deal with a Slovakian maker of lighting control electronics.

Easy Trip Planners sank -8% after the ED raided EaseMyTrip offices as part of the Mahadev betting app case.

Lupin (-4%) and Zydus Lifesciences (-6%) fell after losing a patent case in the US over their bladder treatment drugs.

Here are the closing prints:

Stock
End of the Road for Gensol

If it looks like fraud, smells like fraud, it probably is fraud! $GENSOL.NSE ( ▼ 2.0% ) promoters have been banned from the markets after a SEBI probe. The regulator’s interim findings are BRUTAL. Barring some miracle, this is probably the end of the road for Gensol. So let’s get into it.

Caught red-handed: The most shocking bit is loan diversion. Gensol raised Rs 830 cr (664 cr from IREDA & PFC and Rs 166 cr of its own equity margin) to buy 6,400 EVs. Turns out, it actually bought only 4,704 cars for Rs 568 cr. The rest was diverted: 

• Around Rs 43 cr went to buying a luxury flat in DLF’s ‘The Camellias' project in Gurgaon. (Now you know who can actually afford those houses.)

• A few crores on personal items -- foreign exchange, golf equipment, Titan jewellery and yes, spa treatments worth Rs 10 lakh (WTF?). Anmol Jaggi also used some of it for personal investments including Rs 50 lakh in Ashneer Grover’s startup!

• The bulk of the money though appears to have gone to circulating funds into related parties. FYI - we’ve called this out before. 

There’s more. Remember when ICRA accused Gensol of falsifying documents? It turns out that Gensol submitted FAKE conduct letters from IREDA and PFC saying all was OK with its debt servicing. Forgery 101. 

The final kicker: In Jan 2025, before it all collapsed, Gensol claimed it received pre-orders of 30,000 units for its newly-launched EVs. Turns out they weren’t actual orders but a non-binding agreement. When NSE officials visited the firm’s manufacturing plant, there was no activity actually happening there.

Big Picture: Gensol was the smallcap superstar of 2023-24. Finfluencers hyped it up and retail shareholding soared. But the red flags were always there: promoter stake sales, high pledging, Gensol propping up BluSmart, and Jaggi’s maze of related parties transactions.

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