Share Market Highlights 08 December 2023: Sensex gains 300 pts, Nifty hovers around 21,000 as RBI maintains rates

Benchmark Sensex and Nifty rebounded to close at their new lifetime highs on Friday after the Reserve Bank raised the growth forecast for the current fiscal and kept policy rates unchanged, triggering heavy buying in banking and other rate-sensitive stocks.

The 30-share BSE Sensex rose 303.91 points, or 0.44 per cent, to hit its new peak of 69,825.60. The index touched the highest intra-day level of 69,893.80.

The broader index Nifty also climbed 68.25 points or 0.33 per cent to reach a fresh record high of 20,969.40.

The rupee consolidated in a narrow range and settled lower by 2 paise to 83.38 (provisional) against the US dollar on Friday after the Reserve Bank of India kept the policy rate unchanged at 6.5 per cent.

Forex traders said stronger American currency in the overseas markets and a rebound in crude oil prices weighed on investor sentiment.

At the interbank foreign exchange market, the rupee opened at 83.35 and finally settled at 83.38 (provisional) against the dollar, down by 2 paise from its previous close.

Commenting on RBI MPC Meeting, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Steady policy interest rates and maintained policy stance was widely expected and aligns with the trajectory of key global central banks. The undertone however remains precautionary over inflation risks in the upcoming months due to seasonal volatility in food prices. The decision will continue to support the existing momentum of residential real estate demand in India. Despite the escalations in the borrowing costs, the overall housing market has continued to remain upbeat; however, the momentum in the affordable segment has lagged. Thus, a pause is supportive of catering to the housing needs of the vulnerable segment.”

GeeCee Ventures Limited announced the decline of the proposed Fast Track Merger with its wholly-owned subsidiary, GeeCee Fincap Limited. The Scheme of Amalgamation stands declined, and the company will not proceed further with the merger. Shares were down by 0.82% to Rs 211.30, on the BSE.

Max Healthcare Institute Limited’s wholly-owned subsidiary, Crosslay Remedies Limited, entered into a Share Purchase Agreement for the acquisition of a 100% stake in Starlit Medical Centre Private Limited, including the 550-bed Sahara Hospital in Lucknow, for Rs 940 crore. Shares were up by 1.30% to Rs 677.80, on the BSE.

Lemon Tree Hotels Limited signed a Licence Agreement for an 80-room property in Kundapura, Karnataka, set to be operational by FY 2027. Shares were down by 0.46% to Rs 117.75, on the BSE.

Vinati Organics Limited initiated commercial production of Ortho Secondary Butyl Phenol (OSBP) and Di-Secondary Butyl Phenol (DSBP). The shares were up by 0.09% to Rs 1729.80 on the BSE.

Patels Airtemp (India) Limited approved the voluntary wind-up of its wholly-owned subsidiary, Patels Airtemp (USA) Inc. The USA-based subsidiary, which has not conducted any business operations, will be dissolved in accordance with applicable laws in Delaware. Shares were down by 2.25% to Rs 414.40, on the BSE.

The NSE Nifty was up by 0.17% or 35.70 points at 20,936.85 while the BSE Sensex was up 0.30% or 205.27 points at 69,726.96 at 3 pm on Friday.

A total of 3,860 stocks were traded on the BSE, of which, 1,624 advanced, while 2,097 declined and 139 stocks remained unchanged. As many as 343 stocks hit a 52 week high and 19 stocks hit a 52 week low at 3 pm on Friday.

Top losers on the NSE at 3 pm- Adani enterprises Ltd (-2.71%), ITC Ltd (-1.83%), Adani ports and special economic zone Ltd (-2.13%), Oil and natural gas corporation Ltd (-1.56%), Britannia industries Ltd (-1.53%)

Top gainers on the NSE at 3 pm- JSW steel ltd (2.47%), HCL technologies Ltd 2.26%), Ltimindtree Ltd. (2.16%), Apollo hospitals enterprise Ltd (1.51%), Titan company ltd (1.47%)

Stocks hitting 52-week low on the NSE at 2.45 pm- ASK Automotive Limited, Raj Rayon Industries Limited, Gensol Engineering Limited, Flair Writing Industries Limited, SEL Manufacturing Company Limited

Stocks hitting 52 week high on NSE at 2.45 pm- Bhartiya International Limited, Orchid Pharma Limited, Puravankara Limited, Spencer’s Retail Limited, Alok Industries Limited

Godawari Power and Ispat Ltd announced the synchronisation of its new high-efficiency 48 MW Power Turbine Generator at the Integrated Steel Plant in Raipur, Chhattisgarh. The advanced turbine, replacing old ones, is expected to generate an additional 7-8 MW of electric power without increased fuel consumption. Shares were down by 0.90% to Rs 673.80, on the BSE

​Rites Ltd​, in collaboration with ​Oil India Limited (OIL)​, has signed an MoU to develop Duliajan Township, Assam, into a Mini Smart City. The collaboration aims to enhance the overall infrastructure, including drainage systems, solid waste management, road networks, and parking facilities. Shares were down by 0.51% to Rs 479.75, on the BSE.

India has lowered the stock limit of wheat to increase the grain’s availability, the food ministry’s most senior civil servant said. The country has revised the wheat stock limit to 1000 metric tons for traders and wholesalers from 2000 metric tonnes, the Food Secretary said in a statement.

KPI Green Energy has informed, in a regulatory filing, that its subsidiary KPIG Energia Pvt Ltd has received new orders of 1.75 MW for executing solar power projects under ‘Captive Power Producer (CPP)‘ segment of the company. 

Read more here.

Inflows into the equity mutual funds were down 22 per cent at Rs 15,536 crore against Rs 19,957 crore as investors preferred to book profit as benchmark indices hit a new high.

However, all the equity schemes registered net inflows with small and mid-cap funds registering an inflow of Rs 3,699 crore and Rs 2,665 crore while thematic and large and mid-cap funds logged an inflow of Rs 1,965 crore and Rs 1,847 crore, as per data released by the Association of Mutual Funds in India

Intellect Design Arena Ltd’s shares rose 0.91% to Rs 753.05. OTP Bank has selected the company and Lending platform, eMACH.ai, to enhance its banking experience. The partnership aims to improve operational efficiency, and accelerate growth for OTP Bank in the Central Eastern European region.

The NSE Nifty was up by 0.01% or 1.20 points at 20,902.35 while the BSE Sensex was up 0.19% or 130.95 points at 69,652 at 02.05 pm on Friday.

CEAT Limited discloses an order from the Assistant Commissioner, CGST & Central Excise, Puducherry – II, demanding Rs 64.76 lakhs and imposing a Rs 6.48 lakhs penalty for disallowed Input Tax Credit during the initial GST implementation. The company is analysing the matter and preparing to file an appeal. Shares were up by 0.19% to Rs 2293.35, on the BSE.

India will allow duty-free imports of yellow peas until March 31 next year, the government said in a notification, as New Delhi tries to cool prices of pulses. India imports yellow peas mainly from Canada and Russia.

TVS Electronics Ltd.’s shares were down by 2.18% to Rs 345. The company received an order from the office of the Commissioner of Customs on Dec. 6 to pay Rs 35.58 crore.

DRC Systems India Limited and XDuce Corporation announced a partnership for global expansion. It is to enhance market presence, and offer expanded product/service offerings to a global customer base. DRC Systems recently acquired a 100% stake in DRC Systems USA LLC. Shares were down by 5% to Rs 45.41, on the BSE.

Life Insurance Corporation of India (LIC) reduces its shareholding in HDFC Asset Management Company Limited from 9.046% to 6.953%, the open-market sale resulted in a decrease of 2.093% in LIC’s holding during the period from December 14, 2022, to December 7, 2023, at an average cost of Rs 2863.45 per share. Shares were down by 1.30% to Rs 775.30, on the BSE.

The stock market is likely to react positively to the RBI’s recent announcements. The decision to maintain the policy repo rate and the continued focus on inflation targeting provides a stable environment for investors. This stability, combined with India’s strong economic fundamentals and GDP growth, is likely to boost investor confidence. The banking sector may benefit from the steady interest rate environment, as it aids in better margin management. Furthermore, sectors like healthcare and education might receive a positive impact from the enhanced UPI transaction limits, enabling more significant financial transactions in these areas. However, the emphasis on inflation control and potential supply-side shocks could mean cautious investment in sectors heavily reliant on raw material prices. Overall, the stock market is likely to experience a steady momentum, buoyed by a stable policy environment and strong economic indicators.

This is a very bullish indication of where the economy is headed, but not so much for the markets.

The RBI has in no way indicated a relaxation in repo rates. The economy is on strong footing despite the sharp rise in rates and the RBI is seeing no need to reverse direction. 

Even though inflation is expected to inch up in the immediate term due to higher food prices, the RBI will be complacent to such data and will be focusing on the medium-term outlook. Medium term, our growth is expected to be 7% for FY24 and FY25 with inflation under the 6% bar.

Overall, this is a very encouraging statement. When other economies are considering a reversal in policy rates because their economies are slowing down, India, as an outlier, is in the most comfortable place possible.

General Perspective: The RBI’s MPC’s decision to keep the repo rate unchanged at 6.5% signifies a cautious yet optimistic outlook on India’s economic stability. This decision, against the backdrop of stronger-than-anticipated GDP growth and controlled inflation, is a positive signal for the industry. It suggests a continued focus on balanced economic growth while keeping inflation in check, which is crucial for sustainable economic health. This approach should support stable business operations and potentially encourage investment and growth across various sectors.

Stock Market Impact: The MPC’s decision is likely to be well-received by the stock market, as the maintenance of the status quo on interest rates often provides a sense of stability and predictability to investors. Specifically, the banking sector may see a steady operational environment, which can be conducive for sustained lending and financial activities. Other sectors, especially those sensitive to interest rate changes like real estate, automobiles, and consumer durables, could also witness a positive impact as the current interest rate environment supports consumer spending and borrowing.

The RBI’s decision to continue with a pause on the rate hike cycle, staying with the 6.5 percent repo rate, after a cumulative hike in the repo rate by 250 basis points (bps) since May 2022 due to persistent inflation, was on expected lines. In October 2023, the annual retail price inflation in India decreased to 4.87%, marking the lowest level in four months, as opposed to the 5.02% recorded in September. Additionally, India’s wholesale prices experienced a year-on-year contraction of 0.52% in October 2023, following a 0.26% decline in the previous month. Brent Crude trades close to 75$ per bbl despite the extended supply cuts as the market is focused more on demand than supply.

The Gross Domestic Product (GDP) recorded a robust economic growth rate of ~7.7% in H1FY24 exceeding expectations. The Monetary Policy Committee has maintained the status quo on the repo rate as inflation moderates in a resilient growing economy.

Since inflation is moderating, economic activity is steady, oil prices are lower and India is poised to be the growth engine for the global economy the markets were expecting the repo rate to be unchanged at 6.5%. We believe markets in the near term will now be driven by the upcoming earnings season and the 2024 elections.

Markets have touched new highs, especially with earnings for the H1FY24 coming healthy supporting the trajectory. Investors are bullish as they are favouring rate cuts in 2024 which will unanimously boost the equity markets. The banking sector is the most sensitive to changes in rate cycles and has been a major reason for incremental earnings in FY23 and in H1 of FY24 benefitting from the hikes and credit growth being robust and persistent. Prolonged rate cuts will eventually lead to narrowing NIM but we expect rate cuts to begin in the last quarter and hence the trend in the banking sector is likely to continue in FY24. NBFCs will be best positioned to benefit from cuts in rates as credit growth will improve followed by banks. Also, credit-sensitive sectors like auto and real estate will see higher demand.

“Citing the progress that has been achieved in bringing down inflation, the RBI MPC kept policy rate unchanged at 6.5%. However, commentary remained hawkish as the governor highlighted risks from higher food prices. Vegetable and pulses prices remain a key risk. High frequency indicators suggest food inflation could inch higher in November and December. While the committee can look through such transitory shocks, it remains vigilant on their second order effects in terms of such shocks feeding into inflationary expectations. Volatility in crude oil prices also remains a risk. Growth momentum remains robust. While urban demand has been resilient, rural demand is making a comeback. Corporate investment activity has picked up pace this year. Given that capacity utilizations have moved above average levels and leverage remains low, capex momentum is likely to continue. Given the positive backdrop, RBI revised FY 2024 growth estimate to 7% YoY. However, this also suggests that core inflation could remain sticky for longer. The RBI kept inflation projection for FY 2024 at 5.4%. The 4% target is expected to be achieved only by Q2 FY 2025. On liquidity front, the central bank maintained its stance of withdrawal of accommodation. However, compared to October meeting, significant progress has been achieved due to higher currency leakage during the festive season, higher government expenditure and RBI open market operations. This warrants low intervention from the central bank going ahead. To allow for better liquidity management, the central bank has allowed reversal of MSF and SDF facilities even on holidays and weekends. The move will come into effect from 30th Dec 2023 and will be reviewed in six months or earlier if needed.”

PSP Projects Limited secured a domestic project worth Rs 101.67 crore for the construction and maintenance of the Main Building of GBRC at GIFT City, Gandhinagar. Shares were down by 1.11% to Rs 770.50, on the BSE.

IRB Infrastructure Developers Ltd.’s shares were up by 3.56%, to Rs 38.80. The company logged November toll collection at Rs 437 crore, against Rs 366 crore in the same period last year.

Nifty 50 surpassed the 21,000 mark to hit a high of 21006.10 following the RBI’s decision to maintain the repo rate at 6.5 per cent consecutively on Friday. Nifty was up by 74.80 points or 0.36 per cent on the NSE, at 20,975.95 at 11:51 am; while S&P BSE Sensex was up be 299 pts or 43 per cent at 69,820.69.

Mastek Limited reports the allotment of 17,761 equity shares under its Employee Stock Option Plans, increasing the paid-up share capital to Rs 15.33 crore. Shares were down by 0.90% to Rs 2345.85, on the BSE.

KPI Green Energy Limited, announced the receipt of new orders for a 1.75 MW Solar Power Plant under the Captive Power Producer (CPP) segment from Citizen Umbrella Manufacturers Ltd. The cumulative orders for solar power projects surpassed 149+ MW. Shares were down by 0.38% to Rs 1147.80, on the BSE.

Top losers on the NSE at 12.10 pm - Bajaj finance ltd. (-1.31%), Adani enterprises Ltd (-1.88%), Mahindra and Mahindra Ltd (-1.43%), Hero motocorp Ltd (-1.68%), Adani ports and special economic zone Ltd (-1.80%)

Top gainers on the NSE at 12.05 pm - JWS steel ltd. (2.95%), LTI mindtree ltd (2.83%), HCL technologies Ltd (2.53%), Larsen and toubro limited (1.71%), HDFC Bank Ltd (1.20%)

A total of 3,750 stocks were traded on the BSE, of which, 1,914 advanced, while 1,675 declined and 161 stocks remained unchanged. As many as 318 stocks hit a 52 week high and 17 stocks hit a 52 week low at 12 pm on Friday.

• A benign global narrative, tighter system liquidity and easing core inflation despite stronger growth acted as comfortable backdrop of today’s MPC meeting. Fears of financial stability risks have taken a back seat amid swift change in global risk appetite and low volatility in FX. This also thus precludes the need to conduct OMO sales.

• We have been insisting OMO sales was merely announced last time as a way to depict implied policy bias for higher rates and a way to offer higher risk premia to the world and to anchor INR – none of which turned out to be a worry and India-US 10Y spread has widened to ~300bps after having seen the decadal lows of ~240bps in mid-Oct ’23.

Meanwhile, the spread between avg weighted call money rate and repo rate has since widened as liquidity tightened further. 

We expect liquidity to stay comfortable and range-bound in the near term but to tighten by March.

• The policy outcome is largely neutral for bonds and we see markets to stay range bound amid low year-end liquidity, with ten yr yield hovering 7.20-7.30%

• However, RBI’s consistent concern on skewness of liquidity distribution in the banking system has now led them to allow reversal of liquidity facility under both SDF and MSF even on weekends.

• On domestic dynamics, the Gov sounded positive, and has upgraded FY24 growth to 7% after undershooting 1H, now forecasting 6.3% growth in 2H. We however see growth easing to <6% comfortably in 2H and see FY24 at 6.6%.

The RBI’s FY25 GDP forecast for first three quarters looks healthy as well. On inflation, despite risks on account of patchy perishables, the MPC outlook is unchanged at 5.4% for FY24 (Emkay: 5.4%).

• Overall, the policy tone was comfortable, while MPC still insisting on keeping an eye on inflation and financial stability risk and active liquidity management.

The MPC continues to stress the policy stance has to stay actively disinflationary, while supporting growth.

We maintain the RBI will stay vigilant, and it is unlikely to precede the Fed in any policy reversal in CY24. 

Maruti Suzuki India stock was down by 0.78 per cent on the NSE and traded at ₹10,623 as of 11:32 am on Friday.

The company had received an order from Gujarat GST Authority. It disclosed in its regulatory filing about the favourable order dated December 6, 2023, from Gujarat GST Department dropping the demand of ₹17.87 million mentioned in the earlier Show Cause Notice dated September 29, 2023.

IFGL Refractories Limited receives T2 Authorised Economic Operator certificate from the Directorate of International Customs. The shares were down by 0.51% to Rs 4.60, on the NSE.

Tejas Networks Limited subsidiary, Saankhya Labs, secured a provisional purchase order worth Rs 96.42 crore from NewSpace India Limited (NSIL) for the supply and installation of MSS Terminals (Xponders) on marine fishing vessels. The shares were up by 1.63% to Rs 845.55, on the BSE.

Shreeji Translogistics Ltd secured the ‘Customs Bonded Truck Operator of the Year Award’ at the 4th South East Air Cargo Conclave & Awards 2023. Stock trades at Rs 64, up by 2.78% on the BSE.

The Reserve Bank of India (RBI) has bumped up its real GDP growth projection for FY24 to 7 per cent from 6.5 per cent even as the CPI inflation projection has been retained at 5.4 per cent.

The Reserve Bank of India (RBI) today proposed enhancing the limit of UPI transactions undertaken for medical or healthcare and educational services from Rs ₹1 lakh to Rs ₹5 lakh per transaction.

Vikas Ecotech Limited secures orders worth Rs 22.5 crore for specialty polymer compounds, anticipating a revenue contribution of nearly Rs 100 crore in the current fiscal year. Shares were down by 1.50% to Rs 3.29, on the BSE.

Jindal Stainless Limited (JSL) reported plans to achieve a 50% reduction in carbon emissions before the 2035 target, with an investment of Rs 700 crore in sustainability projects, JSL aims to cut 1.5 million tonnes of carbon emissions annually. Initiatives include a 100 MW wind-solar hybrid project and a green hydrogen plant. Shares were up by 1.07% to Rs 536.50, on the BSE.

Ms. Anitha Rangan, Economist, Equirus

“RBI in line with market expectations held on to its Repo rate at 6.5% with a unanimous vote. However the big surprise was revision in growth estimate for FY 24 to 7% from 6.5%. Along with expectations of strong growth, RBI has not revised its inflation estimate downward. This means that RBI is comfortable that at the current policy rate, growth is not inflationary but rather real-demand led growth. Furthermore, on the stance of liquidity, governor said that there was not need for “OMO sales” with liquidity remaining tight. This is a big relief to the bond markets, which were edgy on OMO sales expectations. While sounding a point of caution on food inflation getting entrenched and being watchful of the 2nd round effects, governor also noted comfort on moderation in core and other components in head-line inflation. In summary, while reiterating their stance of remaining vigilant and watchful, there was a tone of comfort with most global central banks remaining on pause. A pro-growth policy without too much worry on inflation”

Aalesh Avlani, Founder and Director, Credit Wise Capital

“The unchanged repo rate is a positive step for India’s credit economy, particularly for customers in rural areas who can now borrow more freely. This was witnessed during the recent festive season, where vehicle sales reached record highs, largely due to steady interest rates and lenders passing on the benefits to customers”.

Deep Polymers Ltd. announced the purchase of machinery to boost production capacity and enhance testing capabilities. The acquisition includes a Twin Screw Compounder from Germany for a 15% production capacity increase, and a Compact Laboratory Spinning machine from Italy, for lab testing. The shares were up by 2.01% to Rs 85.88, on the BSE.

The RBI maintained the exact status quo with regard to policy rates and liquidity stance, as anticipated. The RBI has increased its GDP forecast for FY24 by 50 basis points, to 7%, while leaving the inflation forecast unchanged. Although the magnitude of the GDP forecast upgrade exceeded our initial projections, all other declarations and positions remained largely consistent with our expectations. As of now, the RBI anticipates that liquidity conditions will remain stable. The policy was, on the whole, less hawkish than had been anticipated. Simultaneously, the governor issues specific warnings regarding premature adjustments to monetary policy rates and liquidity stance, which indicate that the rate pause and liquidity withdrawal stance may persist for a longer duration than initially expected. We maintain our assessment that no rate reductions would occur until the latter part of fiscal year FY25. An upward adjustment to the GDP forecast would have a favourable effect on market sentiment.

HEC Infra Projects Limited secured a work order from Tata Power Solar Systems Limited worth Rs 7.15 crore for the complete EPC (Turnkey) of a 66kV transmission line in the Radhanpur project. Stock trades at Rs 57.45, up by 4.84%, on the NSE.

Wealth First Portfolio Managers Limited incorporated its wholly-owned subsidiary, ‘Wealthshield Insurance Brokers Private Limited,’ yesterday, in Gujarat. The subsidiary, with an authorised share capital of Rs 1 crore, is focused on insurance broking services. The shares were up by 1.80% to Rs 398, on the NSE.

Affle (India) Limited announced the acquisition of a new patent in the US, it focuses on utilising advertisement fraud data to blacklist or whitelist entities. The shares were up by 0.87% to Rs 1148.40, on the BSE.

Crude oil futures gained in early trade on Friday morning as Russia and Saudi Arabia asked OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+, members to adhere to production output cuts.

At 9.56 am on Friday, February Brent oil futures were at $75.26, up by 1.63 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $70.38, up by 1.50 per cen

The rupee appreciated 2 paise to 83.34 against the US dollar in early trade on Friday, tracking a positive trend in domestic equities ahead of the Reserve Bank of India’s monetary policy decision.

At the interbank foreign exchange, the rupee opened 2 paise higher at 83.34 against the dollar amid a firm trend in domestic equities.

On Thursday, the rupee settled at 83.36 against the US dollar.

Forex traders said investors are awaiting cues from the Reserve Bank of India’s monetary policy decision.

Bank Nifty began today’s session slightly lower at 46,797.20 compared to yesterday’s close of 46,841.40. It has now moved up to 47,040, up 0.4 per cent.

The bullish tone is supported by the advance/decline ratio of Bank Nifty which currently stands at 9/3.

The Monetary Policy Committee (MPC) continued its status quo on the policy repo rate as the latest retail inflation reading, despite hitting a four-month low, is still above its comfort zone and there are upside risks from food inflation. The decision to keep the repo rate unchanged was unanimous.

SpiceJet Limited reports the Dubai International Financial Centre (DIFC) Court’s discharge of a freezing order on October 30, 2023, related to aircraft VT-SLM. The aircraft, grounded at Al Maktoum International Airport, Dubai, can now operate freely, following the court’s decision in favour of SpiceJet yesterday, and an inquiry into incurred losses. Shares were down by 1.61% to Rs 51.45, on the BSE

The BSE Sensex was up by 205.05 points or 0.29 per cent at 69,726.74 in early trade on Friday, while the Nifty was up by 66.10 points or 32 per cent at 20,967.25

Stocks that opened as gainers were JSW Steel, Hindalco, UPL, Apollo Hospitals, and HCL Tech, while major losers were Maruti, Bajaj Finance, Dr Reddy Laboratories, Bharti Airtel, and SBI.

Bharti Airtel has informed the exchange about the receipt of notice from the Department of Telecommunications, Nagpur, Maharashtra LSA, imposing a penalty of ₹1,09,000 for alleged violation of subscriber verification norms. 

Knowledge Marine & Engineering Works Ltd secures a project worth Rs 3.45 crore from Visakhapatnam Port Authority for supplying, operating, and maintaining a pilot launch on hire basis for three years. The shares were down by 3% to Rs 1613.95 on the BSE.

Nifty 50 opened the final session of the week higher at 20,934.10 versus yesterday’s close of 20,901.15. The index is now at 20,960, up 0.3 per cent.

Equity markets across Asia are sending positive cues. Major indices such as ASX 200 (7,190), Hang Seng (16,400) and KOSPI (2,510) have scaled higher between 0.2 and 0.8 per cent. Notably though, the Nikkei 225 (32,320) has lost 1.6 per cent.

Easy Trip Planners Ltd.’s stocks trade at Rs 38.84, up by 0.34%, on the BSE. It became the principal sponsor for UP Yoddhas, the Pro Kabaddi League Franchise owned by the GMR Group.

IIFL Securities Ltd’s shares were up by 8.98%, to Rs 128.60, on the BSE. The Securities Appellate Tribunal has set aside SEBI’s order prohibiting the company from onboarding new clients for two years and reduced the monetary penalty from Rs 1 crore to Rs 20 lakh.

Bankers in the public sector and old private sector banks have some good news, with the Indian Banks’ Association and the unions agreeing to a 17 per cent annual increase in salary and allowances.

This increase is higher than the 15 per cent agreed in the last (11 ^th) bipartite wage settlement.

Crude oil futures gained in the early trade on Friday morning as Russia and Saudi Arabia asked OPEC (Organisation of the Petroleum Exporting Countries) and its allies, known as OPEC+ members to adhere to production output cuts. At 9.56 am on Friday, February Brent oil futures were at $75.26, up by 1.63 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $70.38, up by 1.50 per cent. December crude oil futures were trading at ₹5881 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹5802, up by 1.36 per cent; and January futures were trading at ₹5928 as against the previous close of ₹5850, up by 1.33 per cent.

The central bank is expected to maintain its hawkish policy stance. Asian stocks fell early Friday, shrugging off a rally on Wall Street, as traders ratchet up bets the Bank of Japan is nearing the end of its negative interest rate policy. Overnight, Wall Street rose to snap its first three-day losing streak since Halloween. Domestic equity indices took some breather on Thursday with Nifty falling below 20,900 amid selling in the capital goods, FMCG, Information Technology and metal stocks.

“The market is likely to remain in a range in the near-term. A consolidation around the present levels is likely before the next phase of the rally begins. The undercurrents in the economy indicate a robust economy capable of sustaining the current trend of earnings growth into FY 25. Leading indicators like power demand, housing demand, credit growth and revival of rural demand suggest a resilient economy which can keep the market buoyant, restrained only by valuations. Fairly valued segments like banking may be accumulated on dips.

Falling crude is positive for paints, tyres and aviation where demand continues to be robust.”

Dalmia Bharat Limited discloses receiving a Central Goods and Services Tax Act order on Dec 7, 2023, demanding Rs 57,510 for availing input tax credit in FY 2017-18 from a supplier with retrospectively cancelled GSTIN. The company disagrees and will appeal. Stock trades at Rs 2359, up by 0.01%, on the BSE.

Major gainers: JSW Steel (2.92%); Hindalco (1.53%); UPL (1.19%); Apollo Hospitals (1.16%); HCL Tech (1.05%)

Major losers: Maruti (-0.62%); Bajaj Finance (-0.55%); Dr Reddy (-0.40%); Bharti Airtel (-0.33%); SBI (-0.31%)

India has extended restrictions on the export of onions until March 31, 2024, showed a government order. The restriction, which stipulates a minimum export price of $800 per metric ton, was earlier valid until Dec. 31, 2023.

Sudev Industries: Stock Split From Rs. 10/- to Rs. 5/-; Ex-Date: 11-Dec-23

Teamo Productions: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 14-Dec-23

Pooja Entertainment: Bonus Issue 6:1; Ex-Date: 08-Dec-23

Sonata Software: Bonus Issue 1:1; Ex-Date: 12-Dec-23

Safari Industries: Bonus Issue 1:1; Ex-Date: 12-Dec-23

Newgen Software Tech: Bonus Issue 1:1; Ex-Date: 12-Jan-24

SIS Ltd: Ex-Date: 12-Dec-23

Somany Ceramics: Ex-Date: 15-Dec-23

12-Dec-23

BPCL: Interim Dividend - Rs. - 21.00

13-Dec-23

RCF: Final Dividend - Rs. - 3.70

Anupam Rasayan India Ltd, a Surat-based entity engaged in custom synthesis and manufacture of speciality chemicals, on Thursday announced the registration of a wholly-owned subsidiary in Tokyo — Anupam Japan GK.

Move into a short-term ASM framework: Adani Energy Solutions, Adani Green Energy, New Delhi Television, TV18 Broadcast. 

Move out of short-term ASM framework: Insecticides (India), Swan Energy.

Bharat Forge: The company’s unit, Kalyani Strategic Systems, proposed to acquire a majority stake in Zorya Mashproekt India. ZMI is engaged in the development of indigenous capabilities for build-ups, repairs, and overhauls of all types of gas turbine engines.

DB Realty: Unit Vanita Infrastructure’s subsidiary acquired equity shares of DB Conglomerate Realty. Post-acquisition, DB Conglomerate Realty has become a step-down subsidiary of the company.

IRB Infrastructure Developers: The company logged November toll collection at Rs 437 crore, against Rs 366 crore in the same period last year.

Sanghi Industries: Adani Cement appointed Sukuru Ramarao as CEO and Sanjay Kumar Khanjanchi as CFO of the company effective Dec. 7.

UPL: The company incorporated a step-down subsidiary, Advanta Seeds Zambia, in Zambia for carrying out seeds and related business.

Jindal Saw: The board will consider fundraising at a meeting on Dec. 14.

Shriram Finance: The company signed an agreement with SIDBI for co-lending to MSMEs.

Gold update as $2030

Gold is stabilizing around $2,030 after recent volatility, with investors awaiting a crucial U.S. monthly jobs report for insights into the future trajectory of interest rates. Recent data from the U.S. showed that initial claims rose less than anticipated, while continuing claims fell more. The Challenger report indicated sharper cuts in jobs for November. The market is currently pricing in about a 60% chance of a Federal Reserve rate reduction in March.

Key economic data slated for release include German Final CPI m/m from Euro Zone and Average Hourly Earnings m/m, Non-Farm Employment Change, Unemployment Rate from US Zone.

Crude oil (CMP: 70.30$)

Crude oil prices experienced a recovery, likely due to technical-related buying, although they were still on track to register a weekly loss of over 5%. This decline was influenced by indications of increasing global supplies and weakening demand. The notable increase in U.S. gasoline inventories, coupled with data showing near-record crude exports, contributed to the bearish sentiment.

Key economic data slated for release include German Final CPI m/m from Euro Zone and Average Hourly Earnings m/m, Non-Farm Employment Change, Unemployment Rate from US Zone.

The Securities Appellate Tribunal has set aside SEBI’s order prohibiting the company from on-boarding new clients for two years and reduced the monetary penalty from Rs 1 crore to Rs 20 lakh.

JTL Industries: Promoter group Pranav Singla bought 9.14 lakh shares on Dec. 7. 

Usha Martin: Promoter group Usha Martin Ventures sold 18,560 shares between Dec. 4 and 5. T

Hirumalai Chemicals: Promoter group Narayan Santhanam sold 8,006 shares on Dec. 6. 

Shalimar Paints: Promoter group Surya Kumar Jhunjhnuwala, Ritu Jhunjhnuwala, Gaurang Jhunjhnuwala, Sarika Jhunjhnuwala, and Shivang Jhunjhnuwala sold 77.75 lakh shares between Dec. 5 and 6. 

Ethos: Promoter Mahen Distribution sold 20.53 lakh shares on Dec. 6.

The BSE has sought clarification from following companies with reference to significant movement in price, in order to ensure that investors have latest relevant information about them and to inform the market so that the interest of the investors is safeguarded.

Hubtown

Jet Infraventure

Eighty Jewellers

Optimus Finance

National Fittings

Bloom Industries

Bella Casa & Fashion Retail

India Ratings and Research (Ind-Ra) opines the improving trend in credit profile of mid & small corporates (revenues below INR10 billion) seen until FY23, could reverse in FY24 and beyond. This could be led by continued low revenue growth, lower operating leverage and limited bargaining power that would necessitate them to raise additional debt to meet their working capital and capex requirements. Large corporates (revenues above INR10 billion) on the other hand, are likely to be better positioned and a reversal, if any, could be limited. 

Overall, the gap between the credit profiles of large corporates and mid-corporates widened during 1HFY24. Ind-Ra’s rated entities have continued to exhibit high operational stability, given the buffers built up; however, continuing low revenue growths impact on credit profile remains a key monitorable.

Our channel checks suggest overall demand is likely to remain weak in Q3FY24, contrary to expectations of a recovery during the festival and marriage seasons. Consumer sentiments are weak post-Diwali. While October showed strong YoY growth, November saw a decline. Our channel checks show Grasim is focused on attracting dealers by offering: 1) store makeover to non-Asian Paints dealers, 2) buying shelf space with Asian Paints dealers, 3) reducing inventory of dealers, and 4) providing clarity on scheme payouts.

Q3FY24 demand remains weak on low base

Overall demand continues to be soft contrary to expectations of a good recovery in Q3, due to the long festival and marriage seasons

Our interactions with dealers indicates that consumer sentiments remain weak and while October saw robust growth YoY due to the shift in festival season, demand has been poor post Diwali, which may impact overall volume growth in Q3

Our checks across several regions indicate combined volume for October and November will be in the mid-single digits as post October there has been a decline, except in the Rajasthan market where volume growth has been in the double digits, primarily driven by a higher number of weddings. Volume recovery in December would be key 

Downgrading to economy paints and the recent price reduction of 1-2% would impact value growth of paint companies. We believe value growth could be in the mid-to-low single digits 

Grasim entices dealers with offers to improve visibility

Non-Asian Paints dealers are being offered a complete makeover of stores with 70% cost funded by Grasim. The store would be exclusive with a three-year arrangement. Furthermore, such a store would be provided with a sales person as well

In an Asian Paints dealer, Grasim is focusing on buying shelf space in a store to improve visibility

Grasim is focused on reducing dealer inventory, which has increased significantly due to aggressive schemes offered by the leader in the recent past

Further, it would provide clarity in terms of scheme payouts, which has been cause for concern, as several schemes launched by the leader has created a confusion

Our view: negative stance on the paints sector

We remain negative on the paints sector as we believe increased competition will drag category EBITDA margin once companies focus on gaining market share and driving volume growth.

D’Mart Ready sustains competitive advantage

We analyzed price trend of 125 products across D’Mart Ready, Jiomart and Big Basket in key consumer categories of Loose grocery items, dairy, packaged food, beverages, personal care and home care. We observed that out of 125 products that we compared, the price gap (Nov’23 vs Aug’23) between D’Mart Ready & Big Basket increased for 40% of products, while for Jiomart the trend was mixed with 36%/24% of products seeing gap increase/decrease. D’Mart Ready continues to remain most competitive in online retail led by 1) sustained price gap with BB & Jiomart 2) rising consumer activations and advertising and 3) increase in delivery charges/higher cart value for free delivery by other channels.

We note that Ecom in Grocery and Food is witnessing accelerated growth due to rising acceptance of quick commerce. However, quick commerce is gaining ground at the expense of Mom and Pop stores while formats like Hypermarts and online platforms (D’Mart Ready, JIO, Big Basket, Amazon) continue to cater to monthly/bi-weekly grocery requirements. We expect D’Mart Ready to sustain strong growth due to sourcing and scale advantages. We expect D’Mart Ready to report sales of Rs48bn with EBIDTA loss of R424mn by FY26 with full turnaround by FY28. Retain ‘Buy’ on D’Mart with DCF based TP of Rs 4724

The life insurance industry, as anticipated, reported 3.8% decline in Retail APE for Nov-23 due to a higher base of Nov-22 (post the Diwali month) and given the Diwali festive disruptions during Nov-23. 

Private players logged a minor dip of 1.3% YoY while LIC posted a sharper 8.7% drop in Retail APE, during Nov-23. In Nov-22, the industry saw strong Retail APE growth of 22% (private sector: 27%; LIC: 13%) bolstered by Diwali festivity disruption occurring earlier in Oct-22 and some players running distribution incentive programs (such as MDRT) in the month. 

In line with our expectations, Nov-23 witnessed Max Life reporting better-than-industry Retail APE growth at 8.3% YoY while HDFC Life and SBI life clocked a 3.7% and 2.7% decline, respectively, among listed players. With festive disruptions now behind and given the ongoing incentive programs, Dec-23 is crucial for the FY24 sector-growth, as private players are likely to see a YoY decline in Mar-24 YoY owing to bumper sales in Mar-23. We expect the industry to deliver 6-7% Retail APE growth during FY24E, led by private players—forecast to register 11-12% growth, whereas LIC is expected to deliver a low single-digit growth. From the equity investment perspective, the life insurance sector continues to offer an attractive risk-reward proposition.

We remain in favor of SBILIFE, HDFCLIFE and MAXF.

We recently met the management of Torrent Pharma (TRP) to understand the outlook of core segments in further details.

- We were enthused with TRP’s efforts to not only scale-up, but also improve profitability of the Curatio portfolio. Apart from enhancing its presence in derma therapy, it has firmed up levers to drive better-than-industry growth in prescription-led portfolio.

- Following the initial success in the OTC program for the India market, TRP intends to scale up activities through new launches and marketing efforts.

- TRP has also strengthened its MR force and product launches to outpace the Brazilian market and drive better margins as well.

- Following the clearance of the Dahej site by USFDA on the regulatory front, a gradual uptick in the US generics business is anticipated.

- Compared to 10%/15%/10% sales/EBITDA/PAT CAGR over FY18-23, TRP is expected to deliver 14%/18%/29% sales/EBITDA/PAT CAGR over FY23-26, led by 16% sales CAGR in branded generics (DF/Brazil), 11% sales CAGR in US generics, and 300bp margin expansion. We value TRP at 28x 12M forward earning to arrive at a price target of INR2,160. We maintain a Neutral stance on limited upside from the current levels.

(CIFC IN, Mkt Cap $11.5b, CMP INR1137, TP INR1420, 25% Upside, Buy)

- Cholamandalam Finance (CIFC) has taken a successful leap forward in reducing the cyclicality, which was inherent in its core vehicle financing business. Non-auto product segments now account for ~40% of the loan mix, which includes ~11% from new businesses of Consumer and Small Enterprise (CSEL), SBPL and SME (incorporated in Jan’22).

- As of Sep’23, AUM of new businesses rose ~180% YoY (albeit on a small base) to ~INR133.3b. Among new businesses, CSEL accounts for ~7% of total AUM.

- CSEL typically has two sourcing channels: 1) Traditional branch and DSA-led sourcing, and 2) Partnerships with fintechs and consumer-tech. CIFC and other lenders in this product segment have acknowledged higher delinquencies and stress build-up in the partnership-led CSEL business, which makes up ~25% of total CSEL AUM of ~INR82b.

- GS3 in CSEL (traditional) stood at 0.82%, whereas GS3 in CSEL (partnerships) stood at ~4.7%. CIFC management has already initiated corrective actions in the CSEL portfolio, where NPL levels are still well within the industry norms

Oriental Foundry Pvt Ltd, a wholly owned subsidiary of Oriental Rail Infrastructure Ltd, has entered into an agreement with United Wagon Company, a Russia-based company for the purpose of providing Full Design, Technical details & Support in relation to Modern Wagons & Bogies for Indian Railways.

The company intends to use proceeds to repay debt, fund working capital needs and for general corporate purposes.

The company has also completed the Voluntary Retirement Scheme (VRS) (for Commercial function employees in Field Sales and HO) and spent a sum of ₹156.57 crore as the one-off cost of the VRS.

Container Corporation of India Ltd and NTPC Vidyut Vyapar Nigam Ltd have signed a Memorandum of Understanding to explore the possibility of setting up PV Solar renewable energy projects in Concor terminals.

Reliance Industrieshas executed a deed of guarantee in favour of State Bank of India (SBI) in consideration of SBI sanctioning a term loan of ₹1,750 crore to Alok Industries, a joint venture of the company. This is in addition to a guarantee already issued by the company in favour of Axis Bank recently in consideration of a term loan of ₹1,750 crore.

The order for supply of 40 electric buses is on outright sale basis. The buses will be delivered over a period of 7 months.

The mega ₹17,000-crore buyback offer from Tata Consultancy Services witnessed a strong response from investors, as it was subscribed 6.5 times, according to BSE data.. The buyback offer that opened on December 1 closed on Thursday.

The company planned to repurchase 4.09 crore shares at ₹4,150 apiece and received bids for 26 crore shares. . TCS shares closed at ₹3,616 on Thursday on BSE.

3 PE Fund shareholders are planning to sell shares worth $225 million (Rs 1,900 crore) via block deals this week, say reports. Matrix Partners is likely to sell 5.87 percent stake. 

Up to 5% discount likely on market price; Kotak Sec Broker to deal 

10:00 INDIA RBI Interest Rate Decision (Expected: 6.5% versus Previous: 6.5%)

12:00 INDIA RBI Press Conference

19:00 U.S. Non-Farm Employment Change (Expected: 185K versus Previous: 150K)

19.00 U.S. Unemployment Change (Expected: 3.9% versus Previous: 3.9%)

20.30 U.S. Prelim UoM Consumer Sentiment (Expected: 62.0 versus Previous: 61.3)

Economic Calendar - 09.12.2023

07.00 CHINA CPI y/y (Expected: -0.2% versus Previous: -0.2%)

• BALRAMPUR

• DELTACORP

• IBULHSGFIN

• INDIACEM

• NALCO

• SAIL

• ZEEL

Turnover : (NSE + BSE) 

F&O Volume : 40441713 + 729237.87 Total : 41170950.87

Provisional Cash Rs. In Crs. 

FII/FPI (13934.88 - 15498.91) NET SELL: -1564.03

DII (9313.11 - 9322.77) NET SELL: -9.66

Recent Interview

As of 18:01 PM Thursday 07 December 2023

Anand Milk Unio: Jayan Mehta, MD

Company Is Growing In Double Digits This Year: Amul

https://www.youtube.com/watch?v=mDv4TFLQ_EA

CCL Products: Challa Srishant, MD

Robusta Coffee Bean Prices Near 30 Year High

https://www.youtube.com/watch?v=G5SxhWC3-VM

Dixon Technolog: Atul Lall, MD

Largest Trigger Of Growth Will Be Mobile Phone Manufacturing: Dixon Tech

https://www.youtube.com/watch?v=-TWNKRZahRA

ITC: Sanjiv Puri, CEO

Risks Today Are External With Large Parts Of The World Not Doing Well: ITC MD Sanjiv Puri

https://www.youtube.com/watch?v=p9uF_Wds6Cg

Jindal Drilling: Raghav Jindal, MD

Jindal Drilling Gets 3-Years Rig Contract From ONGC | Raghav Jindal

https://www.youtube.com/watch?v=JhgWDf-3yPY

Larsen: R Shankar Raman, CFO

We Are Likely To Outperform Revenue Projections Of 12-15% For FY24: L&T

https://www.youtube.com/watch?v=ehxjfe1nAsI

Lupin: Ramesh Swaminathan, CFO & ED

Expect $250-300 m Of Sales From Respiratory Segment In The Next 5 Yrs: Lupin

https://www.youtube.com/watch?v=W5jS8Jw4sjY

M&M: Rajesh Jejurikar, chief executive

Will launch new products in ICE & EV segments,’ says Rajesh Jejurikar of #M&M.

https://twitter.com/cnbctv18news/status/1732638491107041383?s=48&t=v93OK0uc4_THpPO_aS8n7w

Narayana Hruda: Viren Shetty, ED

January Is Usually A Weaker Quarter In Terms Of Footfall: Narayana Health

https://www.youtube.com/watch?v=clcLuZz6hdE

SBI: Dinesh Khara, Chairman

Don’t Expect Significant Impact On Loan Growth From RBI’s New Rule On Risk-Weighted Assets: SBI

https://www.youtube.com/watch?v=mizUzQyraSA

Events today…

https://www.researchbytes.com/Default.aspx?cc=event

Results today…

https://www.researchbytes.com/Default.aspx?cc=result

The Centre on Thursday banned sugar mills and distilleries from using sugarcane juice or sugar syrup for the production of ethanol with immediate effect to ensure adequate availability of sugar for domestic consumption.

Stock market bears took advantage of the situation by crushing sugar companies stocks soon after the announcement. Among the companies, Uttam Sugar Mills declined by 8.38 per cent to ₹408.35 on the NSE followed by EID Parry (down 6 per cent), Dalmia Bharat Sugar & Industries (5.52 per cent), Balrampur Chini Mills (5.37 per cent), DCM Shriram Industries and Triveni Engineering Industries (4.8 per cent each) . Other such as Magadh Sugar, Avadh Sugar, Ugar Sugar Works, Bajaj Hindusthan, Sakthi Sugars, Dwarikesh Sugar and Dhampur Sugar fell between 3 per cent and 4.5 per cent.

Finance Minister Nirmala Sitharaman on Thursday said the forthcoming interim Budget will not have any big-ticket announcements. The Minister is expected to present the interim Budget on February 1, 2024.

It will be her sixth Budget – five full budgets and one interim. As general election will take place next year, which is why there is interim Budget so to take approval from Parliament for expenditure beyond March 31. The new government is likely to move full budget for FY25 in July.

India’s stock market capitalisation has the potential to touch about $50 trillion by 2047, when the country turns 100, Ashish Chauhan, Managing Director & CEO, National Stock Exchange (NSE) said on Thursday.

This is going by the assumption that India’s GDP — which is at $3.4 trillion now — will grow to about $30 trillion by 2047 and the market cap-to-GDP ratio will increase from 1.2 to 1.6 per cent, Chauhan said at the Global Economic Policy Forum 2023, organised by the Department of Economic Affairs in Finance Ministry and Confederation of Indian Industry (CII).

The short-term outlook is bullish for JSW Energy. The stock price has surged over 7 per cent so far this week. Immediate resistance is at ₹464. But the strength of the price action on the charts keeps the chances high for the stock to breach this hurdle. Moving average cross over on the daily chart also strengthens the bullish case indicating limited downside from here.

Here are the intraday supports and resistances for widely traded Nifty50 stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS, and SBI

Tokyo stocks opened lower on Friday despite gains in US shares, as a stronger yen against the dollar weighed on the Japanese market.

The benchmark Nikkei 225 index lost 0.95 percent, or 312.72 points, to 32,545.59 at the open, while the broader Topix index slid 0.78 percent, or 18.45 points, to 2,341.46.