Tale of the Tape 

Good evening everyone.

Nifty and Sensex ended in the red for a second straight session, down -0.2% each. Midcaps (+0.3%) and Smallcaps (+1%) traded mixed. The advance-decline ratio was in favour of the bulls (3:2). Check out the Stocktwits Sentiment Meter:

It was a mixed-bag kinda day for sectors. IT (+0.5%), PSU Banks (+0.3%) and Metals (+0.3%) saw decent gains. Real Estate (-1%) and Energy (-0.8%) witnessed profit booking.

SEBI Chairperson Madhabi Buch is in the news for all the wrong reasons. Read our top story on all the allegations and why she needs to set her house in order.

Zomato rallied +8% intraday after JP Morgan sees a +33% upside from current levels. Meanwhile, Chola Investment also gained on Goldman Sachs initiating coverage on the stock. More details below.

Titan Company (+3%) was the top Nifty gainer after gold prices hit a two-week low today.

Linde India (+3%) hit a record high after agreeing to acquire Tata Steel’s industrial gas supply assets in Odisha.

Ola Electric was up +4% after reports said it was testing a new three-wheeler model.

Max Financial Services (-1%) was in focus after 1.5 cr shares (4.3% equity) changed hands in a block deal; the buyer and seller were not immediately known.

Easy Trip Planners jumped +10% after announcing a foray into EV manufacturing.

Interarch Building Products gained +5% after opening a new manufacturing plant in Andhra Pradesh.

Newly-listed Premier Energies soared +19% after bagging a Rs 215 cr order for supplying solar water pumps to Uttar Pradesh.

Here are the closing prints:

Market
Daal Main Kuch Kala Hai Ya Daal Hi Kali Hai?

SEBI chief Madhabi Puri Buch is firmly in the hot seat. It feels like every day, there’s a new allegation of impropriety or hint of a scandal. FYI - there’s two sides to every story and nothing has been proven. But the stability of markets is crucial and can only be achieved if a regulator’s integrity is intact. Let’s take a look at what’s keeping the pot boiling.

1) Congress-ICICI: The opposition claims Buch violated ‘office for profit rules’ by receiving Rs 16.8 cr in benefits from her former employer ICICI between 2017-2024. These benefits were higher than the salary she drew from the private lender. It goes without saying that a SEBI chief can’t earn income while being a regulator. ICICI and Buch say this is just ESOPs, but Congress has responded by saying it would violate the bank’s rules. PS - a new allegation comes from Mint today which says Buch was moonlighting by working for a PE firm while she worked at ICICI back in 2013! WTF?

2) Zee saga: Chairman emeritus Subhash Chandra has accused Buch of corruption, that she allegedly accepted bribes to settle cases and that she scuttled the Sony merger for unknown reasons. No evidence has been provided for these claims. ICYMI - SEBI has been investigating Zee on fund diversion charges. A final probe verdict is awaited as the regulator finishes its investigation.

3) Employee mutiny: A section of SEBI staff have accused Buch and the management of a toxic work culture, demanding higher pay and a more fair employee review system. While this would normally be an organizational issue, SEBI has strangely accused the employees of being “misguided by external elements” to ruin the regulator’s credibility. The employees staged a protest today, demanding Buch’s resignation!

Big Picture: Nobody should take any accusation at face value. For example, both the Congress and Chandra have reasons to make SEBI look bad. At the same time, markets can’t thrive when the reputation of the regulator is under constant question. No individual should overshadow the institution. In this context, Buch has already failed and should look to put out all the fires ASAP.

^{_{Stocktwits Specials}}

Stocktwits India Momentum Index 🚀

The Stocktwits India Momentum Index was down -0.3% today. 

Oil India was the biggest casualty after dropping -4%. Motilal Oswal closed up for a 4th straight day to hit a new all-time high. Last week’s top mover Godfrey Phillips also ended higher. On the other hand, new entrants NBCC (-1%) and Indus Tower (+2%) 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.