Tale of the Tape 

Good evening everyone. Welcome back to the Daily Rip

Markets were nervous AF ahead of Trump’s tariff nuke on April 2! Nifty (-1.5%) and Sensex (-1.8%) fell big time as investors chose to lighten their positions. Midcaps (-0.8%) and Smallcaps (-0.7%) saw decent cuts too. The advance-decline ratio was in favour of the bears (3:2). Check out the Stocktwits Sentiment Meter:

Most sectors ended in the red. Real Estate (-3.1%) was the top loser, followed by IT (-2.5%) and NBFCs (-2.1%). 

Vodafone-Idea (+19%) was the top NSE 500 gainer after the GOI threw it a life raft. Read our top story to get the lowdown on the latest bailout.

HAL has its eyes on the prize after winning the LARGEST ever defence order. More details below.

ITC was in focus after a big acquisition. Meanwhile, Madhya Pradesh’s liquor ban places more pressure on booze stocks. More details below.

IndusInd Bank (+5%) was the top Nifty gainer after it reportedly sold corporate loans worth Rs 10,000-cr to shore up its liquidity.

HCL Tech (-4%) was the top Nifty loser, leading the IT sell-off, over worries of the US economy taking a hit due to Trump’s tariffs.

Auto stocks reacted to their March monthly sales. Ashok Leyland (+2%) and TVS Motor (+1%) beat Street estimates. Here’s the complete lowdown.

Maharashtra based real estate developers like $LODHA.NSE ( ▲ 4.71% ) and $OBEROIRLTY.NSE ( ▲ 1.34% ) were under pressure after the Govt increased the Ready Recknor Rate by 4%.

BSE approved a 2:1 bonus issue. Shareholders will receive 2 bonus shares for every share held.

Order wins. Sterling & Wilson jumped +7% on bagging three new solar & hybrid projects worth Rs 1,470 cr. Transrail Lighting was up +5% after winning a Rs 240 order for transmission lines.

Here are the closing prints:

Stock
Govt To Own 49% Stake In Vodafone Idea

Vodafone-Idea jumped +20% intraday after the GOI converted Rs 37,000 cr in outstanding spectrum dues into equity! This means its stake in VI will jump to 49% vs 22.6% earlier. This is a huge positive as it would reduce regulatory payouts by upto 75,000 cr (including interest).  

It’s clear India isn’t going to let VI fail. The GOI’s ‘3+1’ telecom policy (3 private players + BSNL) is intact. This is important because in late 2024, there was a lot of buzz that $IDEA.NSE ( ▲ 3.48% ) was headed for bankruptcy. 

Secondly, the GOI has bought Vodafone breathing room for one year. It had dues worth Rs 30,000-cr to be paid in 2025 and it got a reprieve on that. This means it can focus its attention on more important things like its 5G rollout.

The flipside is that this is still a drop in the ocean. VI’s overall debt was Rs 2.3 lakh cr as of Dec 2024, so there’s still a LOT left to clear. This is also the final missile left in the GOI’s arsenal: if it converts any more debt into equity, Vodafone will become a PSU which nobody really wants. So, what’s happened is that we’ve kicked the can down the road for one more year. 

Big Picture: Experts say the GOI’s relief should allow Vi to complete its Rs 25,000-cr fundraise for its capex plans. Yes, this isn’t a permanent solution and it still needs to stop losing market share & subscribers. But some analysts are bullish. PS - CLSA has opened a 90-day positive catalyst watch and has a target price of Rs 12 p/sh; +50% upside.

Stocktwits Specials
Ashish Kacholia Portfolio Changes

Thank you all for loving our Investor Portfolio series!! On high public demand, we cover the top holdings and latest portfolio changes of ace investor Ashish Kacholia!