In today’s briefing:
- NIFTY MIDCAP150 Index Rebalance: 13 Changes a Side; Lots of Overlap with Other Index Flow
- Hang Seng Internet & IT Index (HSIII) Rebalance: 3 Changes; Big FAF Increase for Horizon Robotics
- Volatility Cones: Opportunities Across 8 Hong Kong Stocks
- Intel’s Historic Agreement Or Moment Of Surrender?
- Fortinet’s Product Pipeline Surges—Can Its Growth Outpace Rivals?
- Global Payments: Expanding Boldly Into International Markets With Genius Platform Push!
- Apple Is Falling Behind: Is Google Winning The Smartphone AI War?
- Zillow Group: Initiation of Coverage- Riding a 56% Rentals Revenue Surge—Will Partnerships Unlock Even Bigger Gains?
- CDW Expands End-to-End IT Solutions—But Where Does It Stand In The Digital Race?
- Novanta Inc.: Expansion into High-Growth Markets…
NIFTY MIDCAP150 Index Rebalance: 13 Changes a Side; Lots of Overlap with Other Index Flow
- There are 13 changes a side for the NIFTY Midcap 150 Index at the September rebalance. There are many stocks with flows from passive trackers of other indices.
- Estimated one-way turnover is 7.8% resulting in a round-trip trade of INR 18.23bn (US$209m). With over US$43bn tracking the index actively, the impact on the stocks will be much larger.
- The adds to the index have outperformed the deletes over the last 5 months and there has been noticeable outperformance in the last couple of weeks.
Hang Seng Internet & IT Index (HSIII) Rebalance: 3 Changes; Big FAF Increase for Horizon Robotics
- There will be 3 changes for the Hang Seng Internet & Information Technology Index (HSIII Index) at the September rebalance.
- Estimated one-way turnover at the rebalance is 10.3% resulting in a round-trip trade of HK$6.4bn (US$818m). There are a bunch of stocks with over 0.5x ADV to trade.
- There is a huge FAF increase for Horizon Robotics and that will bring passive buying from the HSTECH trackers too. The stock is being added to a global index on Tuesday.
Volatility Cones: Opportunities Across 8 Hong Kong Stocks
- Context: Volatility cones chart implied volatility against historical percentiles across the term structure, providing a clear framework to evaluate whether options are trading cheap or rich.
- Highlight: Several high-profile HK stocks currently show historically cheap implied volatility. With some of them trading near 52-week highs, now may be an opportune time to hedge.
- Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.
Intel’s Historic Agreement Or Moment Of Surrender?
- Intel has agreed to convert US CHIPs Act funding (past & future) & Secure Enclave contracts into a 10% equity stake for the US Administration.
- The equity stake will comprise 433.3 million primary shares of Intel common stock at a price of $20.47 per share, a roughly 16% discount to their market value yesterday
- In his commentary on the deal, President Trump referred to Intel CEO Lip-Bu Tan as a victim, stating he came to the White House to save his job. Wow!
Fortinet’s Product Pipeline Surges—Can Its Growth Outpace Rivals?
- Fortinet’s second quarter of 2025 financial results reflect a strong and balanced performance, driven by its strategic focus on unified cybersecurity solutions and robust customer growth.
- Fortinet saw a 15% increase in billings to $1.78 billion, with revenue growing 14% to $1.63 billion, primarily fueled by its expanding market presence in unified Secure Access Service Edge (SASE) and AI-driven security operations.
- The company maintained a solid non-GAAP operating margin of 33%, indicating operational efficiency despite increased investment activities.
Global Payments: Expanding Boldly Into International Markets With Genius Platform Push!
- Global Payments Inc. has reported its second quarter 2025 earnings, showcasing progress across several business segments and initiatives.
- The company’s earnings for the quarter slightly surpassed expectations, with adjusted net revenue reaching $2.36 billion, marking a 5% constant currency growth when excluding dispositions.
- The adjusted operating margin improved by 130 basis points to 44.6%, with adjusted EPS increasing by 11%.
Apple Is Falling Behind: Is Google Winning The Smartphone AI War?
- As of August 2025, the smartphone war has shifted—hardware takes a backseat, and AI drives the battle.
- Google’s Pixel 10 has emerged as the AI leader, showcasing real-time voice translation, proactive features like Magic Cue, and intelligent photo tools.
- These aren’t experimental; they’re already in users’ hands.
Zillow Group: Initiation of Coverage- Riding a 56% Rentals Revenue Surge—Will Partnerships Unlock Even Bigger Gains?
- Zillow Group’s recent quarterly performance highlights several strategic advancements and operational successes alongside some challenges that offer a comprehensive view of its current and future growth trajectory.
- Zillow Group reported a 15% year-over-year increase in total revenue, reaching $655 million for the second quarter, surpassing their predicted outlook.
- This growth is an encouraging sign, especially when paired with the attainment of a positive net income for the second consecutive quarter.
CDW Expands End-to-End IT Solutions—But Where Does It Stand In The Digital Race?
- CDW Corporation’s second quarter financial results for 2025 showcased a balance of solid performance alongside the challenges posed by a dynamic market landscape.
- The company reported consolidated net sales of $6 billion, marking a 10% increase over the same period last year.
- Gross profit rose by 5% to $1.2 billion, and non-GAAP net income per share increased 4% to $2.60.
Novanta Inc.: Expansion into High-Growth Markets…
- Novanta Inc. reported its second-quarter 2025 earnings, reflecting solid operational performance amidst a challenging macroeconomic and trade environment.
- The company achieved revenue of $241 million, marking 2% reported growth but indicating a slight 2% decline in organic revenue.
- Notably, sales from newly launched products surged by over 50%, and customer orders saw a significant uptick sequentially, highlighting a strengthening market outlook.
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