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Good evening, everyone! ✋
Nifty and Sensex ended lower -o.5% lower but managed to recover from the day's lows. Midcaps (-o.3%) followed suit while SmallCaps (-o.9%) were hit harder. The advance-decline ratio was in Favour of the bears (3:2)
Most sectors ended in the red. Auto (-2%), Metals (-1.6%) and PSU banks (-1.4%) got beat up the most. Pharma (+4%) and FMCG (+0.3%) saw minor gains👍
The 'hybrid versus electric (EV) war is heating up in India, with major implications for auto stocks. Maruti rallied 7% yesterday after the Uttar Pradesh government waived registration fees for hybrid car sales.
hybrid sales made up 2% of total car sales in 2023 vs 6% for EVs. But more importantly, hybrids are catching up, their monthly sales beat EV sales for the first time in September, October, and November 2023. This is surprising because hybrids are a lot more expensive🚗
This is why the UP-government's decision is a big deal. Uttar Pradesh is the 2nd largest passenger car market and accounts for 10% of India's total car sales. The latest relief measure announced could result in a hybrid car's cost dropping by 10%. Experts also say it could trigger similar moves across states because hybrid buyers in neighboring states are likely to rush to UP for the registration savings
The GOI also wants to reduce GST in hybrid, but automakers like Hyundai oppose them! This brings us to the lines being drawn on the battlefield. This is how many companies are divided in the hybrid vs EV debate⚔
Nifty and Sensex ended lower -o.5% lower but managed to recover from the day's lows. Midcaps (-o.3%) followed suit while SmallCaps (-o.9%) were hit harder. The advance-decline ratio was in Favour of the bears (3:2)
Most sectors ended in the red. Auto (-2%), Metals (-1.6%) and PSU banks (-1.4%) got beat up the most. Pharma (+4%) and FMCG (+0.3%) saw minor gains👍
You can see how each sector performed from the image given below.
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| Sector Performance |
Mahindra & Mahindra (-7%) was the top Nifty loser after it announced price cuts for its popular SUV models
Supreme Industries was in focus after Jefferies slapped a buy call on the stock, the brokerage sees a +13% upside from current levels 
Emcure Pharma had a solid market debut, ending the day +35% higher than its IPO price of Rs. 1008 p/sh. 
Delhivery share (-1%) was in focus after 2.34 cr shares (3.17%) equity changed hands in a block deal, reports say the Canada pension plan investment board was the likely seller🤝
KIMS rallied +4% intraday after acquiring a Vishakhapatnam-based hospital🏥
Why did Mahindra & Mahindra stock fall 7% today?
hybrid sales made up 2% of total car sales in 2023 vs 6% for EVs. But more importantly, hybrids are catching up, their monthly sales beat EV sales for the first time in September, October, and November 2023. This is surprising because hybrids are a lot more expensive🚗
This is why the UP-government's decision is a big deal. Uttar Pradesh is the 2nd largest passenger car market and accounts for 10% of India's total car sales. The latest relief measure announced could result in a hybrid car's cost dropping by 10%. Experts also say it could trigger similar moves across states because hybrid buyers in neighboring states are likely to rush to UP for the registration savings
The GOI also wants to reduce GST in hybrid, but automakers like Hyundai oppose them! This brings us to the lines being drawn on the battlefield. This is how many companies are divided in the hybrid vs EV debate⚔
- Pro-EV: Tata Motors, Hyundai
- Pro-Hybrid: Maruti, Toyota, Honda
These are rough categories because while Maruti obviously is benefiting big time from hybrids, it also plans to launch an EV soon. Tata Motors though has said it's only focusing on EVs for now.
There are firms like Mahindra & Mahindra which have no presence in either category. M&M was the top NSE 500 loser today, cracking -7% intraday after it announced a 'temporary' price cut for some of its top SUV models. Sounds like they need to keep up with the game soon! 😔
No player can afford to ignore either EVs or hybrids. EVs have ruled the roost so far, but hybrids are quickly catching up. Place your bets carefully folks! 💰
Chartbusters
1) Rail Vikas Nigam (RVNL): RVNL rallied + 11% intraday after announcing that it had bagged multiple orders worth Rs. 390 cr. The first contract is for constructing six metro stations and will cost Rs. 187 Cr. The second is a Rs. 202 substation project for the Southern Eastern Railway. Looks like rail stock euphoria is not going away anytime soon 🔥
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| RVNL STOCK CHART |
2) Asian Paints: Asian paints was up +3% after reportedly hiking prices by up to 1% across its product portfolio. The rival Berger Paints did the same. Investors are happy because they were worried that the price war set off by Birla would take a big hit on margins. With a hike in prices, this look likes less of a problem now.
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| ASIAN PAINTS STOCK CHART |
3) Mankind Pharma: Mankind Pharma rallied +5% intraday 37% lakh shares (0.9%) equity changed hands in a big block deal. Reports say PE firm Hema CIPEF was the likely seller. With markets at all-time highs, you can't blame investors for looking for the exit doors!🤑
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| MANKIND PHARMA STOCK CHART |
| NIFTY | 24324 | -0.5% |
| SENSEX | 79925 | -0.5% |
| BANKNIFTY | 52189 | -0.7% |
