Yesterday’s Market Performance

Nifty: 17369.30 I 15.80  (0.09%)
FII Buy Net: 423.44 CR
DAX: 15,609.81 I 13.34 (0.09%)

Sensex: 58305.07 I 54.81 (0.09%)
DII Buy Net: 704.21 CR
FTSE: 7,029.20 I 4.99 (0.07%)

(Market numbers are of 9th Sep)

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In today’s issue, we discuss;

• Telecom & Media – the top performer in FII portfolios
• TikTok Reportedly Overtakes YouTube In US Average Watch Time
• Ford to bid adieu to India
• And some fundamental analysis concepts to widen your horizon (not saying otherwise 🙈)  Read along!

UCO Bank: 14.20 | +1.40 (+10.84%)

• The share price gained over 10% after the Reserve Bank of India lifted Prompt Corrective Action (PCA) restrictions on the bank

• The stock slips around 4% after Canada Pension Fund said that that they plan to sell 2% stake in the company, eyes Rs 2,440 Cr at top end

What have our friends, the FIIs & DIIs been up to during the week? Names, Sectors, MCaps et al.  🤩🚀

• FIIs sold equities to the tune of INR 15 Bn this week (6th – 9th September), consistent with the general trend observed over the last ~12 weeks (see image below)

• In comparison to other Asian Indices, FII behavior towards India was similar, with a particular cooling post the initial strength observed at the start of the month (India & South Korea were negative, while Indonesia, Taiwan & Malaysia recorded positive buying, consistent to the month as a whole)

• DIIs have maintained their consistent buying, mopping up INR 4 bn during the week, building on the theme developed over the last ~12 weeks

• Activity & Flows wise, the last two weeks have been hectic, with the Nifty consolidating at all-time highs through some strong FII buying (selectively) and consistent DII actions

Interesting! Tell me more? Names, sectors? (You knowww the drill) 🤔

Sectors 

• Telecom & Media was the top performer, up 5.5%, while also seeing a 12% addition on Open Interest

• Consumer Discretionary was up 2.1%, with a marginal rise in Open Interest

• Financial Services saw a 15% rise in Open Interest (indicating a higher number of traded contracts, with greater focus in the sector, in comparison

1-50 Market Capitalisation (MCap) 

• Grasim & Bharti Airtel were up during the week (5.5% & 4.1% respectively), with decent Open Interest change as well (6% & 9%)
• Financial Services were in discussion, with HDFC Limited & Kotak Bank ending the week strongly (up 2% & 1.3%), while SBI Life (down 5.8%) and Axis Bank (down 1.3%) closed in the negative

51-100 MCap

• IRCTC was a rocket during the week, up 15%, with an Open Interest change of 23%; on a YTD basis the stock has added 127% vs Sensex 22% during the same period

• Naukri & Indostar were up during the week as well, 7.6% and 7% respectively, with a sizeable jump in Open Interest (23% and 7.3%) respectively

• Healthcare stocks (think: Auropharma, Torrent Pharma) were down during the week; surprisingly another name that suffered was Indigo (we covered the stock from a technical perspective last week)

101- onwards MCap (Midcap & beyond, all our favorites cos) 

• Idea was up 16% during the week, with Open Interest in the name rising by 65% (of course!!!); the stock initially made an intraday high on news circulating on a possible relief package for the company ahead of a cabinet meeting (convenient :P)

• Voltas (consumer durable picking up with post-monsoon season upon us) & Indian Energy Exchange were up 11%, while IndiaMart was also up 9% during the week

TikTok overtakes YouTube in US / UK average watch time (damnn, so less is more?? :P)  😵

• According to a report from an app analytics firm, TikTok users spend upwards of 24 hours per month consuming content on the app, which is greater by ~2 hours in comparison to YouTube (22 hours & 40 minutes) for the US markets (for android devices)

• In the UK, the difference is wider, with users spending ~26 hours per month consuming content, vs 16 hours spent on YouTube

• Taking cognizance of the meteoric rise TikTok has had over the last couple of years, tells us something intriguing about consumption habits – less is more, with 3-minute maximum video limit a stronger pull vs the average video length of 10 minutes on YouTube (interesting)

• Granted the data above, is only for Android users, yet how different are our consumption habits over different platforms? To prepare for a fast-emerging preference?, YouTube has launched YouTube Shorts

Damn!! Nice! Tell me more? 🤔

What else caught our eye? 👀

Oyo x Microsoft (sounds too exciting!!)

• Oyo has entered into a multi-year alliance with Microsoft to develop new travel technologies (using the Azure cloud infra and AI)

• It has invested $5 million into the hospitality startup.

• Through this collab, OYO is looking to streamline its booking process, price-optimization and improve the overall digital capabilities of small and medium hotels.

• Jio-bp (the JV of Reliance and bp) has partnered with BluSmart (a ride-hailing platform) to set up a network of large-scale EV charging stations.

• Meanwhile, Tata Power and the Lodha Real Estate Group have tied up to provide EV charging infrastructure in all the latter’s residential and commercial projects.

• Ford Motor Co. will shut down its manufacturing units in India, affecting about 4000 employees and costing the company $2 billion in restructuring charges.

• Huge losses and weak demand have not helped Ford’s case, and it has decided to instead focus on markets like China to create a more sustainable business.

• Coming shortly after Tesla’s hesitancy to set up shop here, Ford’s retreat is being seen as a major blow to the government’s Make in India initiative.

ASM & GSM