Share Market Highlights 11 December 2023: Sensex, Nifty end marginally higher; Dr Reddy’s sheds 5%

The rupee stayed almost flat and settled 1 paisa lower at 83.39 (provisional) against the US dollar on Monday as investors remained on the sidelines ahead of the Fed Meeting.

Forex traders said the bullish equity market and sustained inflow of foreign funds failed to boost investor sentiment.

The US Federal Reserve is expected to announce its monetary policy decision later this week.

The BSE Sensex crossed 70,000 levels today, while the broader market outperformed the main indices. However, profit booking was evident at higher levels as traders anticipated clues from tomorrow’s significant data releases on inflation from the US and India, as well as the IIP. While US inflation is predicted to remain stable, the market anticipates a rise in domestic inflation. The better-than-expected US job data and a moderate increase in US bond yields from the recent lows, however, also encouraged investors to book profits at higher levels. Investors will be closely watching the upcoming FOMC meeting tomorrow for clues about potential future rate cuts while expecting to keep rates the same this time.

The numbers includes sales made by subsidiary company Mahindra Last Mile Mobility Limited w.e.f. September 01, 2023.

Indian markets closed marginally higher on Monday. BSE Sensex gained 102.93 points or 0.15% to 69,928.53. NSE Nifty advanced 27.70 points or 0.13% to 20,997.10, per provisional data. Among the Nifty50 stocks, Dr Reddy’s Laboratories was the major loser. The stock declined 5% to Rs 5475.7.

Relaxo Footwears has been declared as a successful bidder for the purchase of land parcel of approximately 30 acres situated in Pathredi Industrial Area, Bhiwadi – II, (Rajasthan), India, which was auctioned by IndusInd Bank Limited. The acquisition is worth ₹135 crore.

Life Insurance Corporation has received communication/ demand order for collection of GST along with interest and penalty for Telangana state. The said order is appealable before Appellate Joint Commissioner (ST), Hyderabad Rural Division. 

Demand order cum penalty notice for F.Y. 2017-18 GST – INR 81,18,43,219.98 

Penalty – INR 93,76,78,918.00 Interest – INR 8,11,84,320.00 

The stock trades at ₹773.95 on the NSE, up by 0.19%.

Esab India has informed the exchange that the company’s head of IT, Kalaiselvi passed away on Saturday, December 9, 2023. Esab stock declines by 1.19% on the NSE, trading at ₹5,727.05.

Major gainers:

• UPL (2.73%)
• Ultratech Cement (2.45%)
• ONGC (1.74%)
• LTIMindtree (1.31%)
• Adani Enterprises (1.11%)

Major losers:

• Dr Reddy (-5.11%)
• Cipla (-1.41%)
• BPCL (-1.41%)
• Axis Bank (-1.16%)
• M&M (-0.97%)

Stocks advanced on BSE at 3 pm on December 11, 2023, were 2,359 against 1,480 stocks that declined; 166 stocks remain unchanged. Total stocks traded were 4,005. The number of stocks that recorded a 52-week high was 350, and those that hit a 52-week low was 26.

DroneAcharya Aerial Innovations Limited has solidified an alliance with D.Y. Patil International University, Akurdi, Pune, marking a pivotal moment in drone-centric education. This Memorandum of Understanding (MoU) ushers in a wave of opportunities for students, faculty, and aspiring technologists.

Government has respectively received about Rs 5933 crore, Rs 4260 crore and Rs 94 crore from Coal India Ltd, ONGC and National Aluminium Co. Ltd (NALCO) as dividend tranches.

RACL Geartech stock is up by 2.65% on the BSE, trading at ₹1,259.80. The company had received a nomination from an overseas customer in Germany for supply of gears for pedal assisted electric bicycles gear boxes.

Ace Software Exports has executed a sale deed effecting the sale of part of the Company’s plot situated at Village Munjka, Rajkot District, for a consideration of ₹1.90 crore. The stock surges by 9.99% on the BSE, trading at ₹32.80.

Anupam Rasayan India has been honoured with the Confederation of Indian Industry (CII) Award for Best Industry Practice in Waste Management.

The stock trades at ₹1,031.50 on the NSE, down by 0.44%.

Major gainers:

• Wockhardt (14.21%);
• Sandur Manganese (11.01%)
• KPI Green (10%)
• GTL Infra (9.73%)
• Coffee Day (9.58%)

Major losers:

• Maharashtra Seamless (-6.88%)
• Dr Reddy (-5.47%)
• Carysil (-4.55%)
• Hindustan petro (-3.55%)
• Safari Industries (-3.49%)

​Pennar Industries​ to right size business operations; to focus on five of the 16 areas that it has been working on. “All of the areas that we are divesting are doing well and profitable. But we are divesting them to focus management bandwidth on the five core areas,” Aditya Rao, MD of Pennar Industries.

Shri Bajrang Alliance has formed strategic partnership as an approved co-manufacturer with Nestle India Limited for several food items. 

Shri Bajrang stock jumps by 10.21% on the BSE, trading at ₹270.90.

Tata Power EV Charging Solutions Limited (TPEVCSL), a Tata Power Group Company and one of the leading EV Charging solutions providers, and Indian Oil Corporation Limited (IOCL) have signed a Memorandum of Understanding (MoU) to roll out fast and ultra-fast electric vehicle (EV) charging points across India. The collaboration will see Tata Power install 500+ EV charging points across multiple IOCL retail outlets. 

Tata Power stock is up by 2.24% on the NSE, trading at ₹330.80. Indian Oil Corporation stock declines by 1.09% on the NSE, traidng at ₹117.50

3i Infotech Limited was recently recognised as an ‘Aspirant’ in the Next-Generation Quality Engineering Services by PEAK Matrix Assessment 2023. 

The stock trades at ₹44.80 on the NSE, down by 0.22%.

Trident Lifeline board has approved proposal to subscribe 51.00% i.c. 5100 [Five Thousand One Hundred) equity shares of Rs. 10/- each of the proposed Company TLL PARENTERALS LIMITED which is under process of incorporation.

Trident Lifeline stock rises by 2.70% on the BSE, trading at ₹190.

The Indian Hospital Industry is currently undergoing a profound transformation and experiencing remarkable growth. In FY23, it witnessed substantial mid-teen revenue growth, driven by several factors including expansion in Average Revenue Per Occupied Bed (ARPOB), amplified occupancy rates, augmented operational bed capacity, and a reduction in the average length of patient stays (ALOS). Despite pre-pandemic comparisons, the industry maintained robust operating margins, attributed to increased ARPOB, higher surgical volumes, an improved payor mix, and the sustained advantages derived from cost-optimisation strategies implemented during the pandemic.

The recovery phase post-Covid-19 has ignited a surge in capital expenditure within the hospital industry. Multiple industry players are expanding their capacities and diversifying geographically to secure larger market shares. Simultaneously, larger companies are exploring inorganic growth opportunities, bolstering investor interest in the industry.

CareEdge Ratings anticipates that several factors such as increasing healthcare awareness, the surge in lifestyle diseases, a growing elderly population, the expansion of health insurance coverage, improved disposable income, augmented public expenditure on healthcare, and the rise in medical tourism will collectively contribute to the industry’s growth at a healthy Compound Annual Growth Rate (CAGR) of approximately 12% over the next three fiscal years.

Flash Update - Abhishek Kumar

Cyient (CYL IN; NOT RATED), in its Investor Day 2023, projected a double digital growth outlook over the next 3-5 years. Its optimism is predicated on uptrend in Aerospace (MRO, ER&D), semi-con led automotive (SDV) and Energy sector. Cyient’s pro-active portfolio diversification lends predictability to its future growth while also allowing it to bet on areas with right to win. Cyient is positioning itself as clients’ digital transformation partner with appropriate interventions in its sales and delivery organisation to realise the opportunity. Strong deal wins in 1H and healthy pipeline are signs of early success. Cyient’s move up the ER&D value chain – from mechanical to systems to solutions – is emblematic also of India’s growing importance as an ER&D sourcing hub, something Boeing alluded to during the meet. This has positive read-through for ER&D exports out of India

Life Insurance Corporation board has approved infusion of share capital of ₹25 crore in LIC Mutual Fund Asset Management Limited on a preferential basis. The stock trades at ₹773.80 on the NSE, up by 0.17%.

Emphasising Article 370’s temporary nature, CJI affirmed J&K’s integration, decisions’ irrevocability during President’s rule, and ordered J&K Assembly polls by Sep 30, 2024, validating the presidential power to revoke Article 370.

REC stock inches up by 0.78% on the NSE, trading at ₹408.60. The company had signed a 200 million Euro loan agreement with the German Bank KfW.

GRM Overseas Limited has sold over 3% stake in GRM Foodkraft Private Limited, a material subsidiary of the company to Sauce.vc, a Consumer-Focused Venture Capital Fund.

The stock trades at ₹195.20 on the NSE, up by 3.58%.

Wockhardt has announced the completion of the pivotal Phase 3 pneumonia Study of its macrolide antibiotic Nafithromycin WCK 4873. The stock trades at ₹386.60 on the NSE, up by 15.11%.

RBI has cautioned members of the public not to fall prey to false and misleading campaigns on loan waiver and report such incidents to law enforcement agencies.

Easy Trip Planners Limited has declared Interim Dividend of ₹0.10 per equity share. The company’s stock trades at ₹38.90 on the NSE, up by 0.91%.

Major gainers on the NSE at 12:

Adani Enterprises (2.51%); UPL (1.93%); ONGC (1.56%); Ultratech (1.52%); Adani ports (1.51%)

Major losers: 

Dr Reddy (-5.15%); Cipla (-1.21%); Axis Bank (-0.92%); Asian Paints (-0.79%); M&M (-0.57%)

Stocks advanced on BSE at 12 noon on December 11, 2023, were 2,341 against 1,347 stocks that declined; 177 stocks remain unchanged. Total stocks traded were 3,865. The number of stocks that recorded a 52-week high was 308, and those that hit a 52-week low was 24.

Bosch Ltd has informed that the manufacturing operations in Company’s Nashik Plant will remain temporarily closed from December 29, 2023, to January 01, 2024, due to annual stock taking. 

The stock trades at ₹21,773 on the NSE, up by 0.68%.

GMR Airports Infrastructure stock is up by 3.12% on the NSE, trading at ₹71.05. The company’s step-down subsidiary has executed financing agreement for an amount of ₹3,215 crore, with a consortium of five banks/financial institutions, lead by India Infrastructure Finance Company Limited (IIFCL), to part finance the Phase I development of Bhogapuram International Airport.

Arvee Laboratories (India) (20%)

Energy Development Company (19.95%)

Palred Technologies (13.64%) 

Cheviot Company (13.21%)

Subros (11.55%)

Support for the index is at 47,250-47,200 region. Outlook is bullish to see a rise to 48,000-48,250 in the coming sessions

The rupee appreciated 3 paise to 83.37 against the US dollar in early trade on Monday, amid sustained inflow of foreign funds and bullish sentiment in the domestic equity market.

An upward movement in crude oil prices, however, weighed on the Indian currency, according to forex traders.

UCO Bank has reviewed the Benchmark rates and decided for revision in MCLR, effective from December 10.

MCLR Tenor Rate 

Overnight 8.00% 

One month 8.20% 

Three month 8.35% 

Six month 8.60% 

One year 8.75%

The stock is up by 1.76% on the NSE, trading at ₹40.55.

Jash Engineering has informed that in the month of November 2023, the consolidated orders received by the company were worth ₹54 crore of which orders worth ₹34 crore are for Indian market. The stock trades at ₹1,496.20 on the NSE, up by 0.50%.

Markets witnessed modest gains lead by banking and information technology stocks. Sentiments were boosted after the central bank raised the GDP growth forecast for FY24.

Wardwizard Foods and Beverages has presented its latest creation to its portfolio, WOL Energy Drink. The stock rises by 1.91% on the BSE, trading at ₹30.37.

Indian Bank has chosen Intellect Design Arena’s eMACH.ai powered Cash Management System for its corporate banking modernisation. Intellect Design Arena stock surges by 4.07% on the NSE, trading at ₹779.

Indian Bank stock is up by 1.03% on the NSE, trading at ₹432.65.

Kansai Nerolac Paints: Prabhudas Lilladher has retained accumulate rating with target price of ₹370 from the earlier ₹351.

The stock currently trades at ₹327.80 on the NSE, down by 0.77%.

The Great Eastern Shipping Company Limited (G E Shipping) took delivery of a 2014 built kamsarmax dry bulk carrier “Jag Amaira” of about 80,919 dwt. The company had contracted to buy the vessel in Q3 FY24. 

The stock declines by 1.35% on the BSE, trading at ₹881.70.

The stock markets kicked off Monday on a bullish note, with the Sensex breaching the 70,000 mark, hitting a high at 70,048.90. At 10:15 am, the NSE Nifty rose by 0.14% to 20,999.20, while the BSE Sensex surged by 0.17% to 69,943.37. BSE recorded 3,266 stock trades, with 2,160 advancing, 959 declining, and 147 unchanged. Additionally, 199 stocks touched a 52-week high, while 19 struck a 25-week low. Dr. V K Vijayakumar of Geojit Financial Services highlighted the Bank Nifty’s 5.5% surge against the Nifty’s 3.5% rise, projecting its continued outperformance due to fair valuations in leading banking stocks. Major NSE gainers included Coal India, ONGC, IndusInd, UPL, and Ultratech, while Dr. Reddy’s, Axis Bank, Asian Paints, Maruti, and M&M showed losses. BSE MidCap and BSE SmallCap indicated gains of 0.55% and 0.63%, respectively.

RattanIndia Enterprises Ltd’s shares were up by 2.17 per cent after the company introduced the L07, a compact delivery drone tailored for the eCommerce and healthcare sectors. According to the company, market projections foresee a rise in India’s e-commerce industry, expecting a surge from $75 billion to $276 billion by 2030.

The shares were up by 2.17 per cent to ₹9.42 at 10.10 am on the BSE.

Major gainers of Nifty Bank stocks:

• PNB (3%)
• Bank of Baroda (2.45%)
• Bandhan Bank (2.02%)
• IndusInd (1.34%)

Zydus will oversee clinical development and marketing, while Daewoong will handle pre-clinical studies, production, and supply in South Korea.

The shares were up by 0.38 per cent to ₹641 at 9.46 am on the BSE.

Coforge Ltd has introduced the Quasar Responsible AI solution, a comprehensive solution that guarantees the utilization of AI adheres to ethical standards, fairness, transparency, and regulatory compliance. 

Coforge stock rises by 1.73% on the NSE, trading at ₹5,883.

Kothari Sugars And Chemicals had commenced its sugar production on December 10, 2023, for the sugar season 2023 - 2024. The stock is up by 2.28 per cent on the NSE, trading at ₹51.60.

Zydus and Daewoong Pharmaceuticals announce exclusive licensing agreement for development and commercialization of Leuprolide Long-Acting Injectable in the U.S.

Major gainers on the NSE at 9:30 am:

Coal India (1.48%); ONGC (1.38%); IndusInd (1.28%) UPL (1.14%); Ultratech (0.85%)

Major losers:

Dr Reddy (-5.93%); Axis Bank (-1.03%); Asian Paints (-0.80%); Maruti (-0.65%); M&M (-0.57%)

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “A significant trend in the market is the outperformance of the Bank Nifty over the Nifty. Last week while the Nifty appreciated by 3.5 per cent, Bank Nifty shot up by 5.5 per cent. This outperformance is likely to continue, given the fair valuations of banking stocks, particularly the leading names.

For the overall market safety is now in large caps

Zydus Worldwide DMCC, a wholly owned subsidiary of Zydus Lifesciences Ltd, and Daewoong Pharmaceutical Co., Ltd. have entered into a licensing agreement to co-develop and commercialize Leuprolide Acetate for Depot Suspension (RLD: Lupron Depot®, AbbVie) in six dosage strengths for the United States (US) market.

Crude oil futures gained on Monday morning following the US Energy Department’s decision to replenish strategic oil reserves in that country. At 9.15 am on Monday, February Brent oil futures were at $76.30, up by 0.61 per cent; and January crude oil futures on WTI (West Texas Intermediate) were at $71.60, up by 0.52 per cent. December crude oil futures were trading at ₹5981 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹5935, up by 0.78 per cent; and January futures were trading at ₹6018 as against the previous close of ₹5975, up by 0.72 per cent.

On Monday, the Indian equity benchmarks, Sensex and Nifty, commenced in positive territory. Analysts foresee profit-taking due to elevated valuations, anticipating increased selling that will likely confine the market within a range. The 30-share BSE Sensex initiated trading by rising 62.27 points to 69,887.87, while the NSE Nifty advanced 6.96 points, reaching 20,976.35. 

Within the Nifty index, ONGC, Adani Enterprises, IndusInd Bank, SBI, and Tata Motors registered gains, whereas Dr. Reddy’s, Wipro, Asian Paints, Cipla, and Sun Pharma witnessed declines.

Asian stocks showed early positive movements on Monday.

Despite foreign portfolio investors resuming their buying, selling by domestic funds and even by some smart retail investors, keep the bulls under control, said analysts.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said: FPIs made a major comeback to India in December. Even though FPIs invested Rs 9,000 crore in November, they were sellers for ₹368 crore in the cash market. This changed in December with big-time buying in the cash market.

“The cash market buying in December through 8th is Rs 10,874 crores. But the actual inflows caused by MSCI EM Index rebalancing, among others, is very high. As per NSDL data, the total inflows into India including investment through the primary market, through 8th December stands at a whopping ₹26,605 crore,” he added.

The indication of political stability after the 2024 General elections, strong growth momentum in the Indian economy, inflation cooling off, steady decline in U.S. bond yields and the correction in Brent crude have turned the situation in India’s favour.

“Going forward, FPI inflows are likely to continue. FPIs have turned buyers in leading banks where they have been sellers. Large caps in segments like IT, telecom, automobiles and capital goods are also witnessing buying. This trend is likely to continue,” Vijayakumar said.

RBI kept the repo rate unchanged at 6.50 per cent in its Monetary policy, citing strong GDP growth and easing inflation. RBI also raised the GDP growth expectation by 50bps to 7 per cent for FY24 and kept the inflation forecast unchanged at 5.4 per cent. It is expected that the RBI’s decision would help in the growth of the economy. Increasing the GDP forecast will have a positive effect on the market.

“We expect that the rate pause will continue for some time,” said Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd.

It is expected that the reversal of trends in the global market and FIIs starting to buy again with stronger participation of retail investors will keep the market spirits high. Benchmark indices hit record highs. Investors are optimistic about India’s strong economic growth, which gives India an edge over China. Lower prices of crude oil are also benefiting India to control inflation.

India faces a wheat crisis with stocks at a seven-year low of 19 million tonne, causing a 20 per cent surge in prices despite a global correction. Government resistance to imports sparks concerns as domestic production falls 10 per cent short, pushing traders to anticipate a further dip in stocks below 6 million tonne by April 1. 

Calls for intervention intensified as farmers sell stocks, flour mills deplete inventories, and the government draws from reserves to stabilize prices, emphasizing the critical need for strategic imports during this opportune global price correction.

Wheat inventories in state warehouses have hit a seven-year low at 19 million tonne. This decline is attributed to two years of falling production, compelling government agencies to sell more grain to private players.

Last year, government banned wheat exports due to reduced output caused by a heat wave. Global prices surged due to Russia’s invasion of Ukraine, but US wheat prices have corrected over 35 per cent in 2023. In contrast, Indian prices have risen over 20 per cent despite the export ban.

Trade and industry officials suggest that domestic wheat output is at least 10 per cent less than the farm ministry’s estimated record production of 112.74 million metric tons. The government purchased only 26.2 million tonne from farmers, falling short of its 34.15 million tonne target.

11th December: EASEMYTRIP to consider Dividend; Last Mile Enterprises, SpiceJet, Steelman Telecom to consider Fund Raising

12th December: SMLT to consider Dividend; Kaushalya Infrastructure Development Corporation to consider Consolidation of shares; Adani Ports and Special Economic Zone, Magnum Ventures, Valencia Nutrition to consider Fund Raising

13th December: RSYSTEMS to consider Dividend; Growington Ventures India to consider Stock Split

14th December: Jindal Saw to consider Fund Raising

15th December: Akshar Spintex to consider Dividend, Bonus issue & Buyback; Anmol India to consider Fund Raising

18th December: Sandur Manganese & Iron Ores to consider Bonus Issue

20th December: Maagh Advertising And Marketing Services to consider Bonus Issue & Stock Split

21st December: Shreeji Translogistics to consider Bonus Issue

Silver prices dropped as the dollar strengthened on stronger-than-expected U.S. non-farm payroll data, coupled with a report showing a surge in consumer sentiment and a notable pullback in consumers’ inflation expectations. The robust jobs data tempered expectations for early interest rate cuts by the Federal Reserve. Treasury yields also rose following the release of the report, offsetting recent optimism regarding a potential pivot toward interest rate cuts by the Fed in March 2024. Current market expectations for a Fed rate cut in March have decreased from 60% to about 45% after the jobs report.

Gold prices steadied as investors looked forward to several major central bank meetings and the release of U.S. inflation data this week for further direction. Despite the U.S. nonfarm payrolls showing an increase of 199,000 jobs, above expectations, gold dealers in India increased discounts to seven-month highs, attempting to stimulate demand amid record local prices. Meanwhile, COMEX gold speculators lowered their net long position.

No major economical data to release on Monday

The Board of Sky Gold Ltd. has approvedan allotment of 23,32,800 equity shares on a preferential basis in addition to the allotment of 1,76,400 equity share warrants at a price of Rs. 425 each.

Some prominent investors who have filed their consent for subscription to the issue are as follows:

1. Ashish Kacholia

2. Bengal Finance and Investments Private Limited

3. Acron Consultants LLP

4. Narayana Trading and Investments

5. Jinesh Shah

OMC stocks have rallied up to 15-20% in the last fortnight, likely driven by the ruling BJP winning three of the four major state elections by a comfortable majority. The markets now do not seem to anticipate populist measures, retail auto-fuel price-cuts being one of these. Probability of the incumbent government winning a third term in the upcoming general elections has also increased. Further, the recent decline in oil prices to USD75/bbl has led to expansion in marketing margins. While we do see possibility of retail price-cuts before the general elections and believe that oil price volatility may continue, we maintain our constructive view on OMCs as price cuts could be for a brief period. Valuations remain reasonable, with current one-year forward price-to-book multiples being 25-50% lower than the 10-year peak multiples; however, post-election optimism wrt revisiting disinvestment, re-deepening of deregulation and other reforms could drive a further rerating. We raise our target Sep’25E EV/EBITDA multiple for BPCL/HPCL/IOCL by 0.4x each to 6.0/6.1/6.2x and raise the TP by 9/11/12% to Rs545/445/135, respectively; we have a BUY rating for both, BPCL and HPCL, and an ADD recommendation for IOCL. Near-term stock correction is possible, given the strong & rapid run-up, though it would present attractive entry points.

As the oldest music label in India, Saregama boasts of an enviable catalog of older-generation songs that are nearly impossible to replicate.. Company is now putting the pedal to the metal on acquiring new content, to close the gap with the market leader and ensure that it remains relevant even a few decades later. The music licensing industry has flourished, with waning of piracy; Saregama has capitalized on this opportunity, consistently exceeding industry growth. We expect the steady growth to endure, though transition from the ad-supported to the paid-subscriber model for OTTAs might be a temporary speed-breaker. It now has its foot in the door to explore the fast-growing digital media landscape via its recent acquisition of Pocket Aces. Ramping up of non-music segments will offer added growth impetus. Growing digital revenue and ramp-up of paid subscribers ensure a long growth runway. We initiate coverage on Saregama with BUY and DCF-based TP of Rs465/sh (25% upside). Key risks: i) content costs rising, ii) piracy reflaring, iii) non-adoption of the paid subscription model.

Aditya Vision (AVL), a consumer-durable retailer, holds leadership share of over 50% in Bihar/Jharkhand, aided by low penetration so far, curated assortment, competitive pricing, Buy & Win scheme, and impeccable service/consumer trust. AVL has passed the litmus test of scale and is now a well-oiled machine to pursue the 5x expansion opportunity in six states of the Hindi Heartland. SSG should remain above 20% in the near term, led by maturing of new stores and low penetration. AVL’s payback period of under 3yrs is ‘better-than-the-best’ in other retail formats. We expect AVL to post a strong, revenue-led EBITDA CAGR of over 30% during FY23-27E and in the mid-teens over FY27-35E. Maturing of new stores should lead to better asset sweating and allied ROIC gains (1,000bps+ in FY23-27E). Despite better growth prospects, valuation at 35x 1YF is at 35-50% discount to retail peers’ and provides scope for re-rating. We initiate coverage on AVL with BUY and Dec-24E TP of Rs5,000 (40x Dec-25 EPS)

We met with a few industry experts, to gauge the pulse of demand in the chemicals market; we understand that, broadly, demand stays muted, even in Q3. Geography-wise, Europe, China and some parts of Asian markets remain weak, whereas US & domestic demand is relatively stable. Discretionary spends like pigments and polymers have started seeing some improvement, whereas textiles and dyes remain weak. Non-discretionary spends like agrochemicals will have a relatively shorter cycle, but every molecule is likely to have its own lifecycle and channel inventory build-up. The sentiment is expected to improve from H1FY25, when a large part of the destocking would have been completed; individual molecules will see demand recovery depending on the different levels of channel inventory. We expect bulk chemical companies, which have a relatively diversified end-user market, to see faster recovery once demand improves, followed by gradual recovery in agrochemicals and pharma.

HDFC Bank: Execution on track; marching toward steady growth and profitability; NIMs to revive gradually

- Loan growth is likely to remain healthy, and the bank expects to double its balance sheet in the next ~4-5 years, which implies growth to remain closer to its historical run rate. HDFCB plans to continue with its aggressive branch expansion run rate of 1,400-1,500 branches in FY24 and aims to increase its total branch count to 13k-14k to sustain its growth trajectory over the medium term. The CASA mix has declined to 38% in 2QFY24, the bank has noted its overall market share in incremental CASA flows remains higher than the outstanding deposit market share.

- HDFCB indicated that NIM recovery is likely be gradual as deposit rates and competitive intensity in the industry remain high. Though, the bank said that margins are currently at the lower end of the spectrum and should recover to 3.7% in 18-24 months while recovery to ~4.1% will take further 2-3 years.

- HDFCB has everything in place to deliver strong profitability and growth trajectory over the coming years (similar to pre-merger levels) and the management believes that execution remains the most important factor for the bank. HDFCB is confident of sustaining the steady growth momentum and has highlighted that it has been able to maintain its incremental market share of ~16-20% despite an increase in its size. We maintain BUY with a TP of INR1,950 (premised on 2.7x FY25E ABV + INR209 from subs).

Jefferies on Coforge: Maintain Buy on Company, raise target price at Rs 6580/sh (Positive) 

MS on DLF: Maintain Overweight on Company, raise target price at Rs 770/sh (Positive) 

MS on Prestige: Maintain Overweight on Company, raise target price at Rs 1300/sh (Positive) 

MS on Macrotech: Maintain Equal weight on Company, raise target price at Rs 960/sh (Positive) 

MS on Godrej Prop: Maintain Equal weight on Company, raise target price at Rs 2050/sh (Positive) 

Nomura on Medplus: Maintain Buy on Company, raise target price at Rs 974/sh (Positive) 

MS on SAIL: Maintain Equal weight on Company, raise target price at Rs 85/sh (Neutral) 

MS on Tata Steel: Maintain Equal weight on Company, raise target price at Rs 120/sh (Neutral) 

MS on JSW Steel: Maintain Underweight on Company, raise target price at Rs 620/sh (Neutral) 

MS on JSPL: Maintain Underweight on Company, raise target price at Rs 525/sh (Neutral) 

Antique on Dr Reddy: Maintain Sell on Company, target price at Rs 4766/sh (Neutral) 

Macquarie on Kansai Nerolac: Maintain Neutral on Company, target price at Rs 345/sh (Neutral) 

Macquarie on Max Health: Maintain Underperform on Company, target price at Rs 465/sh (Neutral) 

MS on Wipro: Maintain Underweight on Company, target price at Rs 370/sh (Neutral) 

MS on Kansai Nerolac: Maintain Underweight on Company, target price at Rs 250/sh (Neutral) 

MS on Oberoi Real: Maintain Underweight on Company, raise target price at Rs 1180/sh (Neutral)

Network18 Media & Investments

Rating: NOT RATED

RTM of potential entity could lead to jump in market share

We believe the merger of TV18 Broadcast and Network18 Media & Investments (NW18) is a serious attempt to target a larger share in the fragmented M&E market of India, specifically within digital media. India’s M&E market for TV, print and digital is huge at USD 18bn in CY22 (Source: EY FICCI) whereas NW18 has a consolidated revenue base of a mere USD 0.8bn in FY23 with a market share of ~4%; the revenue synergy post-merger could lead to a potential market share of ~6% by FY26. Moreover, bundled offering with a bigger target audience and reach would help with revenue scalability and better reach for advertisers. Cost control measures and synergy benefits would drive efficiency for the merged entity, leading to a better EBITDA margin.

Potential for a media super app bundled with news/entertainment

Network18 may bundle all services under one umbrella coupled with sizeable audiences across mediums which could lead to higher scalability. Superior user experience along with differentiated and good quality content may drive a potential subscription revenue base. NW18 also would have a big advantage of the last mile with Reliance Jio having a subscriber base of 450mn smartphone users. There is a possibility of NW18 forming a media super app, providing content, such news, sports, ticket bookings, and webs series, which may lead to a large customer base and can be used potentially for better digital ad revenue and audience monetization. NW18 has the potential to become a digital-first company within India’s media ecosystem.

Potential market cap of INR 140-180bn for the merged entity

Based on Consensus figures, the news segment and digital segment are set to post a revenue CAGR of 10% and 15%, respectively, over FY24-26, due to synergy post-merger, which would translate into a revenue synergy of INR 846mn and INR 1,840mn in FY25 and FY26, respectively, for the merged entity. Since the size of the entity will become large post-merger, cost synergy also can be expected. A reduction of 5% each in content cost , employee cost and advertising cost can be expected from FY25, which could translate into a cost synergy of INR 2,318mn in FY25 and INR 1,567mn in FY26. Thus, with scalability on the digital side and proper execution, a potential synergy is expected of INR 3,165mn in FY25 and INR 3,407mn in FY26 at the EBITDA level. NW18 can be valued segment-wise, excluding IPL revenues (digital IPL rights on Jio Cinema app), which has a hefty content cost of approx. INR 50bn per year and may not be able to break even over medium term. The business ex IPL can be valued at 15x one-year forward P/E whereas the IPL revenues could be valued at one-year forward market cap-sales of 2x, due to hefty losses. The merged entity can thus have a market cap of INR 180bn (80% upside) (including synergy); even without synergy, the merged entity can have a market cap of INR 140bn over medium term, which represents a reasonable amount of upside (40%). Proper execution of scale on digital revenues and a superior user experience would drive higher valuation rerating.

Mazagon Dock Shipbuilder received an order worth Rs 1,145 crore from ONGC for laying approximately 44.4 km of subsea pipelines in 19 segments. 

Bank of India’s QIP worth of Rs 4,500 cr was oversubscribed by 4.11 times. It received 104 bids, aggregating to 18,483.30 cr. 

REC signed a 200 million Euro loan agreement with the German Bank KfW. This is the company’s sixth line of credit under Indo-German Development Cooperation. 

JSW Steel secured a coveted position in the DJSI World Index and the DJSI Index for Emerging Markets. 

Ramco Cements: Kolimigundla clinker plant capacity increased to 3.15 MTPA from 2.5 MTPA. 

IDFC First Bank: Cloverdell Investment reduced its stake in the company to 2.25% from 4.04%. 

Dr Reddy Laboratories: The US FDA issued Form 483 with three observations in its inspection from Dec. 4 to Dec. 8.

HCL Tech expands its footprint in Romania with a new global delivery centre in Iaşi, Romania. 

Cipla received the US FDA for ANDA for Vasopressin. 

Lemon Tree Hotels signed a licence pact for an 80-room hotel in Karnataka.

Lloyds Metals And Energy approved the expansion of iron ore mining capacity up to 55 MTPA, the establishment of 45 MTPA BHQ beneficiation plants, the establishment of 3 MTPA integrated steel plants and the enhancement of 4 MTPA pellet plants to 8 MTPA pellet plants. The company’s board approved the issue of 6.35 crore shares by way of a rights issue for Rs 99.9 crore.

Apollo Tyres: The Supreme Court has dismissed the appeal filed by SEBI and has directed SEBI to refund the entire penalty amount of Rs 65 lakh imposed for the alleged violation of certain provisions of the Buy Back Regulations, 1998. 

Max Healthcare: The company’s unit will acquire a 100% stake in Starlit Medical Centre for 125 crores.

Vinati Organics: The company’s commercial production of Ortho Secondary Butyl Phenol (OSBP) and Di-Secondary Butyl Phenol (DSBP) has commenced at the company facility with an installed capacity of 5000 MT for (OSBP) and 1000 MT for (DSBP). 

Imagicaaworld Entertainment signed an MoU with the Uttarakhand Government to set up an entertainment park in Uttarakhand.

Shoppers Stop and the Good Glamm Group are looking to collaborate on creating disruptive omni-channel experiences. 

Blue Dart: The board approved the purchase of two leased aircraft from the Netherlands’ DLH Aviation for Rs 40 crore.

IREDA launches a retail division with an enhanced emphasis on providing loans to borrowers in the PM-KUSUM scheme, rooftop solar, and other business-to-consumer (B2C) sectors. 

S.P. Apparels purchased the entire or partial shares of Young Brand Apparel Private, which is a subsidiary of M/s Bannari Amman Spinning Mills.

Religare completes the acquisition of a 100% equity stake in MIC Insurance Web Aggregator Private. Post-acquisition, MIC has become a wholly owned subsidiary of the company.

Tata Motors will hike commercial vehicle prices up to 3% from January. Further, Ministry of Road, Transport, and Highways has issued a notification directing all N2 and N3 category truck, produced from Oct 1, 2025 need to have factory-fitted air conditioned cabin for drivers. The move is expected to increase production costs.

Ashok Leyland: Ministry of Road, Transport, and Highways has issued a notification directing all N2 and N3 category truck, produced from Oct 1, 2025 need to have factory-fitted air conditioned cabin for drivers. The move is expected to increase production costs.

Route – Tender Buyback Price: 550/- Current Market Price: 483.95/- Market Cap: Rs 7,053 crores Buyback Size: ₹90.00 Crs (representing 9.87% and 4.04% of the aggregate of the Company’s fully paid-up equity capital and free reserves) Buyback Size: 16,36,363 shares (representing 1.12% of O/s. shares) Retail Quota: 2,45,454 Shares

Last Cum Trading Date – 11 December 2023 (Today) Ex-Date – 12 December 2023 Buyback Record Date: 12 December 2023

Buyback Schedule: Not Yet Announced

The agriculture ministry has estimated 2023 kharif foodgrain output to total 148.57 million tonnes, lower by 4.6 per cent from a year-ago

Paytm stock was among the worst performers at the bourses this week, thanks to its management announcing plans to scale down postpaid loans of ticket size less than ₹50,000. The decision is a pre-emptive measure, according to Paytm, after consultation with its lending partners, given the present market conditions and regulatory changes.

IndiGrid raises ₹670 crore through Institutional Placement. The IP process, launched on December 5, saw strong demand from both existing and new Indian and global institutional investors. With the recently concluded Institutional Placement, the company has successfully raised equity funds of ₹1,070 crore in FY2023-24.

Gold and silver may rebound

Nifty futures might outperform Bank Nifty futures this week

The short-term outlook for the stock of HDFC Asset Management Company (HDFC AMC) (₹2987.05) appears bullish. The stock finds an immediate resistance at ₹3,120 and the major one at ₹3,280. A close above the latter will change even the long-term outlook positive.

Bharat Petroleum Corporation Ltd.

Dividend Per Share Rs.21

Previous day Closing Price – Rs. 470.5

Ex-Dividend 12 December 2023 (Tomorrow)

Last date for Cum-Dividend Today

Ex Bonus 12 December 2023 (Tomorrow)

Last date Trade for Before Bonus Today

Dhyaani Tile And Marblez Ltd

Bonus issue 9:5

Previous day Closing Price – Rs. 98.12

Safari Industries (India) Ltd.

Bonus issue 1:1

Previous day Closing Price – Rs. 4059.45

Sonata Software Ltd.

Bonus issue 1:1

Previous day Closing Price – Rs. 1416.05

Hindustan Foods Ltd has said that BSE has revised a penalty amount to ₹52.21 lakh against earlier demand of ₹84.49 lakh for alleged violation of certain listing regulations.

The board of DCB Bank has apprved an issue of 60.58 lakh shares to Aga Khan Fund for Economic Development, one of the promoters of the bank on a preferential basis. The issue price ₹137 a share was a 14 per cent premium to Friday’s closing price. The promoters will be infusing a total of ₹830 crore in the lender. Following this, the promoter stake in DCB will rise to 15.66 per cent from 14.02 per cent.

1 BALRAMCHIN

2 DELTACORP

3 HINDCOPPER

4 IBULHSGFIN

5 NATIONALUM

6 SAIL

7 ZEEL

9FFSL23

Quarterly Results 

DYNAMICP

General 

EASEMYTRIP

Interim Dividend 

ENBETRD

General 

FEDFINA

Quarterly Results 

KAMADGIRI

General 

LASTMILE

Issue Of Warrants;Preferential Issue of shares

NMSRESRC

General 

POOJAENT

General 

PRATIKSH

General 

SOMICONV

General 

SPCAPIT

General 

SPICEJET

Quarterly Results;Preferential Issue of shares

STDSFAC

General 

STML

Issue Of Warrants;General 

TDSL

General 

TELESYS

General 

VICEROY

General

STEELXIND

E.G.M. 

LSUDIN

Stock Split From Rs.10/- to Rs.5/-

Buzzing Stocks: GMR Airports, IREDA, Adani Energy, Bank of India, JSW Steel, Dr Reddy’s Lab, Lemon Tree, REC, Greenlam, Max Healthcare, Vinati Organics, Ramco Cements, TCML, Subros, SP Apparels, ONGC, Mazagon, Bondada, Parmax Pharma, Mega Nirman, Torrent Power

Crude oil prices slumped last week and breached key supports. Brent crude oil futures on the Intercontinental Exchange (ICE) was down 3.8 per cent as it closed at $75.9 per barrel. Crude oil futures on the MCX lost 5.5 per cent and it ended the week at ₹5,935 a barrel.

Escorts Kubota (₹3,205.2): The stock has largely been moving in a sideways trend since September. It has been held between ₹3,000 and ₹3,450 for the past three months.

The daily chart shows that Escorts Kubota is in the process of forming a head and shoulder (H&S) pattern

Timken India’s stock, which was consolidating for five weeks, broke out of the range last week. It breached a resistance at ₹3,000 early last week and rallied through the week. The breakout has brought back the bulls into the game. 

Nazara Technologies’ stock has largely been tracing a sideways trend since September. Prior to that, it saw a steady rally that began in April on the back of the support at ₹500. 

City Union Bank’s stock was fluctuating in a band since mid-February. The boundaries of the range are ₹120 and ₹145. Last month, the scrip broke out of the resistance at ₹145, turning the outlook positive. 

SEBI chairperson Madhabi Puri Buch said on Friday that the regulator is working with the mutual fund industry to make it viable for the latter to offer systematic investment plans, or SIPs, of as low as ₹250 per month. This will allow greater participation in MFs from the bottom of the pyramid, and is in keeping with the market regulator’s objective of greater financial inclusion.

Galaxy Surfactants is poised on an even keel at the current moment. On one side, the profitability per tonne has dropped sharply, which led to earnings decline in the last three quarters. On the other hand, the demand situation has reported a marked turnaround in Q2FY24. The stock, currently trading at 26 times FY25 earnings, is in line with its historical average. However, it is still on the higher side when compared to broader markets.

The stock of India’s most valued company, Reliance Industries (RIL), after a decade-long underperformance — from 2007 to 2017 — has managed to treble over the last six years.

However, when you look at the stock on a three-year basis, RIL with 11 per cent CAGR returns (including the value of demerged Jio Financial Services), has underperformed Nifty 50 which has delivered CAGR returns of a little over 14 per cent in the same time period. This however is nothing to fret about. 

Gold steadied on Monday after a sharp decline in the previous session, as investors looked forward to several major central bank meetings and U.S. inflation data release this week for further direction. 

Spot gold was up 0.1% at $2,005.85 per ounce as of 0038 GMT, after dropping about 3.3% last week in its worst week in more than two months. U.S. gold futures rose 0.3% to $2,021.90.

COMEX gold speculators lowered their net long position by 11,895 contracts to 132,515 in the week ended Dec. 5, the U.S. Commodity Futures Trading Commission said on Friday.

Spot silver rose 0.3% to $23.25 per ounce, while platinum gained 0.5% to $918.88 and palladium climbed 0.3% to $950.13 per ounce. - Reuters

Current: 3.7% 

Expected: 3.9% 

Previous: 3.9% 

(Data seen Better with estimates supportive for dollar )

Lloyds Metals and Energy: Company approved enhancement of 1x4 million tonnes per annum pellet plant to 2x4 million tonnes per annum pellet plant at Konsari. Company says took note of mineral resource report received from Tata Steel Industrial Consulting for Surjagarh Iron Ore Mine.

Lloyds Metals and Energy: Company approved expansion of iron ore mining capacity of company up to 55M tonnes per annum. Company approved establishment of 45M tonnes per annum banded hematite quartzite beneficiation plant at Hedri. Company approved establishment of 3M tonnes per annum integrated steel plant at Konsari, District Gadchiroli.

Blue Dart Express: Company says approved purchase of two leased aircrafts by Blue Dart Aviation deal for 400M rupees. Company says the two aircrafts are currently operating on lease basis by unit Blue Dart Aviation.

Top Additions - RECL, BAF, DIXON & APAT | Top Reductions - SKF, KNPL, BOOT & TTCH | New Entry – MDA, IREDA (IPO), TATATECH (IPO) , ETHOSLTD, ASKAUTOL 

▫️ Indian Life Insurance, excluding LIC of India, commands an impressive aggregate equity AUM of nearly INR 4.2 trillion. Nuvama Alternative’s Insurance Portfolio Analyzer offers monthly insights into the top 5 players, collectively representing almost 80% of the AUM.

🔹 Report Link - https://shorturl.at/hP235

🔹 Workbook Link - https://shorturl.at/hou37

◽️ Here’s a snapshot of November Portfolio:

▫️ ICICI Pru Life’s (biggest Pvt life insurer) prominent additions were Bajaj Finance (INR 201Cr), Honasa Consumer (INR 151Cr | IPO), Shriram Finance (INR 142Cr) – *Nuvama Alt’s high conviction entrant for Nifty 50 in Mar 24. The fund reduced* holdings in Bharti Airtel (INR 207Cr), Persistent Systems (INR 146Cr)- seized opportunity to book profits as stock got included in MSCI Nov 23 review, FSN E-Com (INR 112Cr)- Nuvama Alt’s probable inclusion for MSCI Feb 24. *New entrants included I R E D A (IPO) and Radico Khaitan while complete exits were Sadbhav Engg and Gujarat State Petro.

▫️ SBI Life’s large additions were HDFC Bank (INR 378Cr), Indian Hotels (INR 257Cr), Reliance Inds (INR 247Cr). Its major reductions were Bank of Baroda (INR 89Cr), Hindustan Unilever (INR 85Cr), Patanjali Foods (INR 84Cr). Cello World (IPO) and Honasa Consumer (IPO) were new entrants, while Aditya Birla Capital and V-Mart Retail were complete exits.

▫️ HDFC Life’s large additions were APL Apollo Tubes (INR 193Cr), Macrotech Devl (INR 67Cr), Union Bank (INR 62Cr)- Nuvama Alt’s probable inclusion for MSCI Feb 24. Its prominent reductions were Abbott India (INR 170Cr), Kansai Nerolac Paints (INR 163Cr), Timken India (INR 162Cr). New entrants included Tata Technologies (IPO) and I R E D A (IPO) while Abbott India and Kansai Nerolac Paints were complete exits. 

▫️ Tata AIA Life’s major additions were Balkrishna Inds (INR 196Cr), REC (INR 193Cr), Dixon Tech (INR 155Cr). The fund reduced holdings in Tata Motors (INR 177Cr), Motherson Sumi Wiring (INR 129Cr), Polycab India (INR 128Cr). FSN E-Com and Alkem Lab were new entrants*importantly both are Nuvama Alt’s probable inclusion for MSCI Feb 24 (need more price jump),* while complete exits were Motherson Sumi Wiring and Polycab India- seized opportunity to book profits as stock got included in MSCI Nov 23 review.

▫️ Kotak Life’s large additions were Minda Corp (INR 109Cr), Bharti Airtel (INR 98Cr), NTPC (INR 65Cr). Its prominent reductions were NHPC (INR 69Cr), Biocon (INR 52Cr), Angel One (INR 47Cr). New entrants included Tata Technologies (IPO) and I R E D A (IPO) while complete exits were NHPC and Astra Microwave.

- Abhilash Pagaria

Nuvama Alternative & Quantitative Research

FIIS : BUY +3,632 (19,329-15,697)

DIIS : SELL -434 (9,533-9,967)

Balrampur Chini: Vivek Saraogi, MD

Expect Sugar Prices To Drop By At Least 5% From Current Rs 39/kg: Balrampur Chini Mills

https://www.youtube.com/watch?v=_7qXE8JATzs

Coforge: Sudhir Singh, CEO

Q3 Should See A Strong Improvement In Margin: Coforge

https://www.youtube.com/watch?v=uz5xyOVyig4

RITES: Rajeev Mehrotra, CMD

RITES Sign MOU For Multi Modal Logistics Project With Meghalaya MIDC

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

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

Events today…

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

Results today…

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

Replays available at www.researchbytes.com

Nifty 50 and Sensex scaled new highs last week. The indices broke above their key resistances and surged over 3 per cent last week. Both the indices have closed on a strong note and are looking bullish.

Nifty Bank index, on the other hand, outperformed the Sensex and Nifty last week. The index surged over 5 per cent.

India now world No 4, with over $4-trillion market-capitalisation, thanks to the robust equity rally during the Modi years, high-value IPO listings, and rising mid-/small-cap stock gains

The recent run-up in Indian equities has made the market more expensive but experts are not sounding the alarm yet. 

Hopes of an end to the rate tightening cycle by the US, falling US yields, a weakened dollar index and a thumping win for the BJP in the recent Assembly elections has taken the market to record highs. 

Japanese stocks kicked off the week on a high note following an upswing in Wall Street fuelled by optimism about the US economy. The Nikkei 225 index surged 1.64%, climbing 528.91 points to reach 32,836.77 early in the trading session. Simultaneously, the broader Topix index rose by 1.26%, adding 20.37 points to hit 2,353.84. 

In contrast, South Korea’s KOSPI index showed subdued movement, edging up by 0.67 points to 2,518.52, while Australia’s S&P ASX 200 index registered a 0.21% increase, up by 14.80 points at 7,209.70.

The yen’s depreciation against the dollar typically benefits Japanese exporters by augmenting their profits upon repatriation and enhancing their competitiveness in global markets.

Early in Asian trade, the dollar strengthened to 145.55 yen, climbing from 143.88 yen observed in Tokyo on Friday.