Tale of the Tape 

Hola Amigos!

Markets climbed higher on trade deal hopes. Nifty and Sensex gained +0.4% each on resumption of trade talks between US and India. We’re still far away from a deal, but investors are optimistic that Washington’s softening stance may reduce uncertainty. Broader markets were up big time, with Midcaps (+0.9%) and Smallcaps (+0.7%) seeing strong buying. 329 stocks in the NSE 500 ended higher.

Except Auto (-1.2%) every other sector finished green. IT stocks (+2.6%) led the rally, followed by PSU Banks (+2.1%) and Real Estate (+1.1%).

In today’s issue of the Daily Rip, we break down the Cummins India rally and the road ahead, unpack Dev Accelerator's IPO, trending charts and more.

Honourable Mentions:

Cartrade cracked -10% after JM Financial downgraded the stock; it sees a further -4% downside from current levels. Idea filed a fresh plea in the Supreme Court over AGR dues.

Check out the NSE 500 heatmap:

Stock
What’s Popping?

Cummins India has been KILLING it! The stock is up +41% over the last six months at a time when markets are refusing to move. We know what you’re thinking: what the he*k is going on here? Let’s break it down.

For the unaware: Cummins is one of India’s biggest manufacturers of engines & gensets. It’s coming off a hot Q1FY26 where both strong domestic & export demand boosted revenue up +26% YoY and profit up +30% YoY.

So.. what’s popping? Experts say there are three big triggers at play.

• Cummins recently forayed into the clean energy battery system market. It might sound confusing -- a company that makes diesel gensets wanting to tap into solar power? But clients these days use hybrid power systems. So this offers a neat way for Cummins to tap into them AND companies that only use clean energy. PS - this market is expected to triple to $9 billion by 2030, so it’s big bucks.

• GST cuts don’t directly affect Cummins India. But if demand in general goes up, we could see higher investments which is a positive. Also, the company still enjoys lower GST on all of its input materials. Analysts say this could see Cummins India cutting prices in the near future which will make its products more affordable.

• Several of its BIGGEST customers are in sectors that are set to soar. This includes quick commerce (yeah dark stores need power) and data centers (a sunrise sector). PS - Cummins management has also guided for double-digit growth over the next two years in its industrial biz (railway and mining).

TL;DR: After a meh FY25, Cummins India is teeing up for a solid FY26 on the back of new product lines, a GST-driven demand boom and clients in new sunrise sectors. FYI - Nomura sees a +12% upside from current levels.

Specials
3 Smallcaps On Traders’ Radar

Wondering what stocks the pros are tracking? In our latest video, we reveal three smallcaps stocks that SEBI RAs have recently added to their Stocktwits watchlist. PS - stay tuned till the end for a bonus pick!