🐂Bulls are back
❓Trouble in Crypto land
🌞Gassy problems in Europe, AGAIN!!!
What a comeback...🙌
As corporate earnings keep surprising, markets have made a strong comeback with NIFTY rising more than 2.5% during the week🚀. Small cap index remained muted in trade, only because inflation is affecting the margins of smaller companies more than we thought.
Some of the biggest movers this week👇
Large Cap - Bajaj Twins (Finserv & Finance), Tata Steel, SBI Life
Mid Cap - Navin Fluorine, Schaeffler India, Dr Lal PathLabs
Small Cap - CanFin Homes, Ujjivan Financial, PVR
FED raised rates again by 75 bps, despite that global markets were buzzing in trade for the week. Corporate earnings have been super strong in most cases💪
Indian corporate earnings glimpse...
✅Positive results from ICICI Bank, Greenpanel, Atul, Nocil, Axis Bank, Tata Steel, Crasftman Automation, Tata Power, Asian Paints, Bajaj Auto, Bajaj Finance, VIP Ind, SBI Life, SBI Card, TVS Motor, Westlife Development, Sun Pharma
🔴 Negative from Bandhan Bank, JSW Steel, HDFC AMC, Anupam Rasayan, Tatva Chintan, Orient Electric, Astec Lifesciences, TechM, Relaxo, Dixon, Tata Motors
Notable results coming from Bajaj Finance with highest ever customer acquisitions in 1Q. GNPA dipped to 1.25% from 1.60% in 1Q. TVS Motor recorded margins of 12.4% against estimates of 9.8%, a solid beat. SBI Life moved more than 8.5% as the company reported 79% YoY APE (Annual Premium Equivalent) growth coupled with VNB (Value of new business) margin expansion to 30.4%🐂
Brent up more than 5% this week on supply concerns & decline in US oil inventory. Singapore GRM recovers to $6-7/bbl in last 2 days and so did the OMC stocks (BPCL, HPCL, IOC). Europe gas price has surged 30% in last few days (reason in the next section) and thus we saw weakness in CGD (City Gas Distribution) companies in Indian market. IOC results yesterday came in weak.
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Around the world in 3 mins
Bulls are back, What recession??🐂
The bulls have been bull-dozing the bears this week as markets across the globe have been buzzing in green💹
FED raised interest rates by 75bps again, taking the total tally of June-July to 150bps, highest since Paul Volcker's early 1980s era. The US 2Q GDP came in at -0.9% vs -1.6% in 1Q. So two consecutive quarters of negative growth means recession right?
Naaa.. Officially, the National Bureau of Economic Research (NBER) – a non-profit group of economists – defines when the US is in a recession and it depends on multiple factors like wage growth, industrial production etc. Unemployment is at multi-year lows, wage growth is rising but consumer confidence and housing market is cooling off at a fast pace❄️
Commodity prices have collapsed across the board which might be positive from an inflation standpoint and hence markets are buzzing like a bumble bee🐝... European stocks are set for their biggest monthly gain since November 2020.
Nasdaq and S&P500 recouped losses at a fast pace. Investors are turning optimistic as they're betting on the FED slowing down rate hikes amid recession fears. Corporate earnings have been super strong with biggies in both global and domestic markets beating earnings estimates across the board📈
So yeah, while one part is scared of an oncoming recession, corporates are getting optimistic as business fundamentals are turning green
A gassy situation in Europe, AGAIN!!😲
Not more than a week after restart, Kremlin cut NordStream pipeline capacity by half to 20% citing additional repairs😵. This has sent global gas and electricity prices soaring 🚀 as investor fears come true. Gas prices are at record highs with winter consumption yet to start.
Check out the video below and this link to learn more about it
Europe already had a sword hanging over its head by the scorching summer heat, and now cut-in flows are going to create bigger problems for manufacturing. Second order impacts have already started with European manufacturers ringing the alarm bells on cutting production as costs are spiking once again❌
This might be positive for sectors like chemicals, fertilizers, metals etc in India as we once again have the opportunity to eat into the market share of European manufacturers.
But let's not try to jump the gun. We're heading into winter🥶and it creates a messy situation with gas prices rising and a stronger than expected LNG demand as the market still remains tight. CGD sector in India will take the brunt head-on again...
Trouble in crypto land😵💫
With the recent crash in Crypto markets, troubles seem to mount instead of cooling off. According to Bloomberg, US SEC is investigating Coinbase whether they improperly let Americans trade digital assets that should have been registered as securities😓
Total crypto market value sank below $1 trillion this week. Solana, Cardano, Ethereum, Bitcoin are down anywhere between 50-75% YTD. Recent indication by FED to cool off rate hikes has resulted in a rally in crypto markets in the last two days but investors are still haunted by the Terra-Luna crash in May.
Crypto biggies continue lay-offs, with Gemini executing a second round of layoffs less than two months after axing 10% of staff. Blockchain.com also laid off 25% of its staff this week.
Oh and wait... founders of famous crypto hedge fund, ThreeArrows Capital, have been found finally😝
After five weeks in hiding, Zhu and Davies spoke extensively about the spectacular implosion of their fund. Creditors claim $2.8 billion owed to them by Three Arrows.
So is it over and out?? Only time can tell but you can learn more here
This week in Numbers
$500 billion
Cost of Saudi Arabia’s Crown Prince Mohammed bin Salman's flagship project Neom
$7 billion
Revenue of India's OTT video market by 2027 (current $3 billion), according to a new report by MPA (Media Partners Asia)
$3.6 trillion
Direct world economic impact by Synthetic Biology (synbio) by 2030-2040😲
Take a Kachow! break
(What we read, heard, and saw this week)
Breaking Down A Tesla read more
The strange case of the cricket match that helped fund Imran Khan’s political rise read more
Why it is too early to say the world economy is in recession read more
Visualized: Battery Vs. Hydrogen Fuel Cell read more
How the Golden State Warriors Gamified Fandom With NFTs read more
Betting Big on Web3 with Li Jin listen more
The Deadliest Virus on Earth😰
Why Germany is hooked on Russian gas🤔
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