Share Market Highlights 10 January 2024: Sensex climbs 271 pts to settle at 71,657; Nifty rises 73 pts to 21,618

Nifty 50 and Sensex rose on Wednesday, led by gains in IT companies ahead of quarterly results and boosted by a jump in some Adani group stocks on the conglomerate’s plan for a $24 billion investment.

The blue-chip NSE Nifty 50 gained 0.34% to 21,618.70 points, while the S&P BSE Sensex added 0.38% to 71,657.71. Both the benchmarks lost about 0.5% each, before reversing gains in the final hour.

IT stocks rose 0.5%. Market leaders TCS and Infosys are due to report quarterly results on Thursday, kicking off the earnings season in earnest.

While their results are expected to be subdued due to weak spending by key U.S. clients, the forecasts will be in focus. In that regard, U.S. inflation data on Thursday is key. A soft print will likely fortify bets of a rate cut in March, making stocks generally, and IT companies in particular, attractive.

The overall earnings season is critical with valuations at all-time highs. The Nifty 50’s PE ratio (price-to-earnings) is 22.6 times one-year forward earnings, well above the five-year average of 21.6.

The Indian rupee recouped early losses to end higher for a sixth consecutive session on likely foreign inflows.

The rupee settled at 83.0350 against the U.S. dollar, its highest closing level since Dec. 15, against its close of 83.1150 in the previous session.

The local unit opened lower and hit an intraday low of 83.18 earlier in the day, before rising to an over three-week high of 82.98 in the session.

This was due to dollar selling by a large UK-based bank, according to three traders. These were likely external commercial borrowing inflows, they said.

“Dollar inflows have kept the rupee the top performer among Asian currencies,” Dilip Parmar, a foreign exchange research analyst at HDFC Securities, said.

“We will have to see if the move is sustainable given considering how the RBI (Reserve Bank of India) has absorbed such inflows in the past.”

“The weakness in global indices continued to weigh down the domestic indices with every up move. The market is looking for fresh triggers for a direction, and the release of US and Indian inflation data may provide a near-term direction in the market. The investor’s focus will be shifted to the earnings season, on a sequential basis, the earnings growth is likely to be lower, while the expectations for auto, capital goods, and cement will remain strong.”

Major gainers on the NSE at 3 pm: Cipla (2.94%); Adani Enterprise (2.51%); Reliance (2.47%); HCL Tech (2.26%); ICICI Bank (1.44%)

Major losers: ONGC (-2.24%); Divi’s Lab (-2.08%); NTPC (-1.99%); BPCL (-1.89%); Ultratech (-1.28%)

Stocks advanced on BSE at 3pm on January 10, 2024, were 2,050 against 1,761 stocks that declined; 111 stocks remain unchanged. Total stocks traded were 3,922. The number of stocks that recorded a 52-week high was 420, and those that hit a 52-week low was 14.

Capital markets regulator SEBI has kept in “abeyance” the proposed ₹1,500 crore initial public offering (IPO) of Asirvad Micro Finance, a subsidiary of listed NBFC Manappuram Finance.

​Krishna Institute of Medical Sciences Limited​ has made a further investment by acquiring an additional equity stake of 5.04% in Sarvejana Healthcare Private Limited, material subsidiary Company. Consequently, the Company now holds 64.14% of the total paid-up Equity Share capital of Sarvejana Healthcare.

KIMS stock trades at ₹2,032.70 on the NSE, up by 0.81%.

Chambal Fertilisers and Chemicals’ board has approved the resolution approving the buyback proposal for an aggregate amount not exceeding ₹700 crore, being 3.74% of the total paid-up equity share capital, at ₹450 per equity share on a proportionate basis.

The stock declined 1.09% on the NSE, trading at ₹375.20

Metals & Mining - Tushar Chaudhari - Research Analyst, Prabhudas Lilladher Pvt Ltd:

Weekly Update – Indian HRC prices continue to lag behind

Indian benchmark HRC prices remain unchanged at USD Rs 54,600/t. which is at a one-year low. The spot spreads have contracted further 2% WoW to Rs 18,468/t owing to rise in coking coal prices. 

Chinese and European HRC prices have risen ~1% WoW to USD 580/t and USD 635/t respectively after being stable for a month. Chinese spot spreads have risen 7% WoW to USD 75/t from USD 71/t. European spot spreads have risen 4% WoW to USD 130/t. Uptick in steel price and WoW decline in iron ore prices have more than offset the increase in coking coal prices.

Coking coal prices have inched up 2.2% WoW at USD 335/t while iron ore 62% grade declined 2.3% over the same period. The Indian Govt. plans to set up a state backed consortium for coking coal imports which remains volatile due to supply shortages. One of the criteria is to diversify supplies coming from Australia that accounts for more than half of the coal imports.

On import parity basis, global steel prices continue to trade at a premium to Indian steel prices which incentivizes domestic companies to take price hikes. After a quarter which was marred by higher imports and state elections, steel companies shall be able to take price hikes to compensate for the recent surge seen in coking coal prices. JSP, HNDL & NMDC are our Top Picks.

BSE Sensex rises 102.38 pts or 0.14% to 71,488.59. NSE Nifty gains 22.70 pts or 0.11% to 21,567.55.

Brahmaputra Infrastructure Limited has received a LOA from the office of Chief Manager, Water Resource Department, Assam Water Centre, for Dibrugarh Riverbank Protection Work, Dibrugarh District at Nagakhelia, Chaulkhowa.

Top losers of Nifty Realty stocks:

• Phoenix Mills (-2.59%)
• Godrej Properties (-2.21%)
• Oberoi Realty(-1.60%)

Sandeep Raheja, Chairman, K Raheja Realty:

“The demand for real estate in Mumbai constantly surges amidst an era marked by dynamic economic growth and is primarily driven by the intricate balance between urban progress and elevated living standards. The upswing in demand and sales isn’t a mere statistical trend but a testament to the city’s unshakeable commitment to infrastructure advancements.

Elevated connectivity, gated communities and meticulously uplifted amenities together compose a symphony for aspiring homebuyers. Faster and more convenient modes of transport, including the newly constructed metro lines, have further triggered growth.

Positively, we anticipate a 5.5% increase in prime property prices, reflecting a promising outlook for demand and sales in Mumbai’s real estate market.”

Leading investment services provider HDFC securities has today announced the appointment of Puneeth Bekal for the position of Chief Marketing Officer (CMO) and Executive Vice President. Bekal will be heading the marketing department, and HDFC Sky – their flat pricing equity broking app launched in September 2023.

Puneeth has over 19 years of experience in Brands and Marketing, with key expertise in Brand Strategy, Marketing Strategy, and Digital Marketing across industries and verticals. He was

was recently awarded as the 100 Most Influential Marketers by Business World and authored the prestigious Business World Marketing White Book. Before joining HSL, Puneeth worked for organizations including Mastercard, Godrej Group, Lodha Group, and Ceat Tyres. He holds a Marketing degree from IIM-Calcutta. In his career spanning nearly two decades, he has worked in over 42 cities across India and 7 countries, giving him a deep understanding of India’s diverse culture and sense of global interconnectedness.

Crisil:-

One-month view

In January, domestic G-sec yields are likely to remain stable. Low crude price and robust foreign portfolio investment (FPI) flows into the debt market will act supportive. An elevated December CPI inflation number could exert some upward pressure.

Three-month view

The 10-year Gsec is expected to soften through March supported by fiscal consolidation, downside to oil prices as global demand softens and continued foreign capital flows.

Framework for outlook

CRISIL provides its outlook on key benchmark rates for different debt classes — 10-year G-secs, state-development loans (SDLs), and corporate bonds (CBs) — based on statistical models and inputs from our in-house experts. We also incorporate our views on policy expectations, macroeconomic outlook, key events (local and global), and market factors (liquidity and demand/supply).

Imagicaaworld Entertainment Limited has been honoured by the Bureau of Indian Standards (BIS) with the distinction of All India First Esteemed Licensee – Theme Park. 

The stock declined by 1.15% on the BSE, trading at ₹60.04.

Nazara Technologies informed that transfer of 10,000 Optionally Convertible Debentures of ₹10,000 each of Brandscale, held by the Company for an aggregate consideration of ₹10 crore in favour of Nodwin Gaming Private Limited (Nodwin), a material subsidiary of the Company, has been completed after complying with all the requisite formalities. 

Nazara stock rose by 1.36% on the NSE, trading at ₹869.50

Pavna Industries Limited has informed the Exchange that the Board of Directors has decided to issue equity shares on rights basis in the ratio of 0 : 1,21,80,800, i.e 0 Equity Shares for every 1,21,80,800 Equity Shares held. Issue Price is ₹0 per share.

The stock surged 5.08% on the NSE, trading at ₹612.20

The benchmark BSE Sensex fell 117.55 pts or 0.16% to 71,268. NSE Nifty declined 46.80 pts or 0.22% to 21,498.05.

NBCC’s earlier intimation regarding the receipt of order “Construction of Phase III of BPSGovt. Medical College, Khanpur, Sonepat (Haryana)“ for a total cost of ₹285 crore, it is hereby mentioned that the Administrative Approval to the increase in the cost of project by ₹134.13 crore has been sanctioned by the Govt. of Haryana.

NBCC India is also in receipt of an order from the National Institute of Fashion Technology for ₹218 crore.

NBCC stock is up 1.20% on the NSE, trading at ₹92.45

Vodafone Idea has informed about an order received from Assistant Commissioner (ST), Penamaluru, Vijayawada III, Andhra Pradesh, passed u/s 73 of Central Goods and Services Tax Act, 2017, inter-alia, levying a penalty of ₹85,66,586.

The Company does not agree with the Order and will take appropriate legal action(s) for rectification/ reversal of the same.

The stock declined 1.54% on the NSE, trading at ₹15.95

G R Infraprojects informed the completion of upgradation of Highway starting from junction with NH‐44 at Panipat connecting Kairana, Shamli, Muzaffarnagar, Miranpur, Bijnor and terminating at its junction with NH‐74 at Kotwali to Two/four lane with paved shoulder configuration (Pkg No. NH/IAHE/47, Category‐II) ‐ Shamli to Muzaffarnagar Pkg – II of NH ‐709AD (Length 42.870 km)”. The stock inches by 0.75% on the NSE trading at ₹1,133.45

Ramkrishna Forgings has entered into a transformative consultancy agreement with McKinsey, a global management consulting firm. The stock rose 1.50% on the NSE trading at ₹796.

Top losers of Nifty energy stocks:

NTPC (-3.38%)

ONGC (-2.98%)

BPCL (-2.80%)

IOC (-2.16%)

Delta Corp stock declined 1.56% on the NSE, trading at ₹148.30. The company had reported a fall of 59 per cent y-o-y at ₹34.48 crore. Its revenue fell 15.6 per cent to ₹231.74 crore.

BSE Sensex fell 112.69 pts or 0.16% at 71,273.52. Nifty 50 declined 45.90 pts or 0.21% at 21,498.95 as of 12:50 pm.

Tanla Platforms entered into its first commercial agreement with a bank in India for Wisely ATP. 

Tanla stock surged 6.14% on the NSE, trading at ₹1,153.10

Tata Tele Business Services (TTBS) has initiated IT Professionals Day – January 10 , with the campaign thought of #DontForgetToThankIT. The focus of the initiative is to urge businesses to celebrate and express gratitude to IT Professionals and IT Departments, who work diligently for seamless operations of our digital infrastructure. 

The stock declined 1.26% on the NSE, trading at 94.20

GHCL Textiles has entered into a Memorandum of Understanding (MoU) with Guidance, the Nodal Agency of Government of Tamil Nadu on January 08, 2024 as part of the Tamil Nadu Global Investors Meet 2024 for investing up to ₹535 Crore over a period of four-year. 

The stock jumps 10.29% on the BSE, trading at ₹80.95.

Huhtamaki India Ltd informed the exchange about the penalty and fine aggregating to ₹3,55,000 imposed by the Customs Dept., on account of non-compliance of applying PIMS (Paper Import Monitoring system) before the arrival of shipment.

The stock declined 2.14% on the NSE, trading at ₹326.25.

The initial public offering (IPO) of Rajkot-based CNC machine supplier Jyoti CNC Automation will remain open till January 11, 2024. The total offer is worth around ₹1,000 crore which is entirely fresh issue. The proceeds from the issue will be utilised for pre/repayment of debt (₹475 crore), funding long-term capital requirements (₹360 crore) and general corporate purposes. Should you invest in it?

Copper futures on the Multi Commodity Exchange (MCX) have been on a decline since the beginning of this month. It started to fall after facing resistance at ₹740. These have turned the outlook weak for copper futures.

Fitch Ratings has assigned State Bank of India’s (SBI, BBB-/Stable) proposed senior unsecured notes an expected rating of ‘BBB-(EXP)‘. The notes will constitute SBI’s direct, unconditional, unsubordinated and unsecured obligations and will at all times rank pari passu among themselves and with all of SBI’s other unsubordinated and unsecured obligations. The notes will be issued by SBI’s London branch.

The final rating is subject to the receipt of final documentation conforming to information already received.

Lupin stock trades at ₹1,400.40 on the NSE, up by 0.29%. The company announced the launch of Bromfenac Opthalmic Solution, 0.07 per cent in the US after receiving approval from US FDA.

Lupin has also announced the launch of Varenicline Tablets, 0.5 mg and 1 mg, after having received approval from the US FDA. 

Nifty 50 is trading flat. After touching an intraday low of 21,448, the index rose back to recover the loss. It is currently trading at 21,556, up 0.04 per cent.

Bank Nifty opened today’s session with a gap-down at 47,073.85 versus yesterday’s close of 47,242.65. But the index has now recovered to 47,280.

Life Insurance Corporation of India (LIC) registered a 93.8 per cent increase in total premium for December 2023 at ₹22,981.28 crore against ₹11,858.50 crore in December 2022. This strong show was aided by 178 per cent increase in Group Premium in December 2023 at ₹ 17,812.46 crore (₹ 6,407.37 crore), data with Life Insurance Council showed. 

The share price of LIC gained ₹7.75 or 0.93 per cent to ₹840.20 at 11.54 am on NSE.

Maruti Suzuki plans more investments in Gujarat with a New Greenfield Plant and a fourth line in SMG.

The company has reached an understanding with the State of Gujarat for construction of a new automobile production plant and is aimed to start operation in FY2028-29. In the future, the annual production capacity is expected to become 1 million units with total investment amount of 350 billion rupees (excluding land acquisition cost). 

Maruti Suzuki also announced the establishment of a fourth production line in its wholly owned subsidiary Suzuki Motor Gujarat Private Limited (“SMG”) by investing ₹32 billion, in view of increasing production of electric vehicles in the future. The fourth line is expected to start operation from FY2026-27. With the completion of the fourth line, annual production capacity of SMG will increase from the current 750,000 units to 1 million units. Combined with the new plant in Gujarat, the total annual production capacity in the State of Gujarat will be 2 million units. 

The new plant in Kharkhoda, Haryana which is planned to start operation in 2025, the new plant in Gujarat and the fourth production line of SMG will help achieve the milestone of 4 million.

The stock trades at ₹9,970 on the NSE, down by 0.54%.

Major gainers on the NSE at 12:05 pm:

Adani Enterprises (2.24%); Cipla (2.11%); HCL Tech (2.08%); Adani Ports (0.99%); ICICI Bank (0.97%)

Major losers:

NTPC (-3.14%); ONGC (-2.79%); BPCL (-2.50%); Coal India (-1.84%); Divi’s Lab (-1.60%)

Stocks advanced on BSE at 12:05 pm on January 10, 2024, were 1,918 against 1,765 stocks that declined; 150 stocks remain unchanged. Total stocks traded were 3,833. The number of stocks that recorded a 52-week high was 375, and those that hit a 52-week low was 11.

Adani Group to invest ₹2 lakh crore over the next five years in Gujarat to create over 100,000 direct and indirect jobs, said Gautam Adani, Chairman of Adani Group.

“I announced our investment of over Rs. 55,000 crore by 2025. We have already surpassed Rs. 50,000 crore across the various sectors I had promised and have vastly exceeded our target of 25,000 direct and indirect jobs,” he said at Global Summit in Gujarat on Wednesday.

Aurionpro Solutions board has approved raising of funds through issuance of instruments or security including equity shares, convertible/ redeemable preference shares, on a preferential allotment basis and/or a qualified institutions placement and/or rights issue and/or further public offering for an amount not exceeding ₹650 Crore.

The stock rose by 1.51% on the NSE, trading at ₹2,423.

Pellet production, after increasing by 16% YoY in 8M FY2024, is likely to reach an all-time high of 85-90 million tonnes (mt) in FY2024 supported by strong domestic demand for steel and YoY pick up in pellet exports. Pellet exports (after having impacted in FY2023 due to the imposition of export duty) have picked up in 8M FY2024 (owing to low base), though the improvement was curtailed due to muted demand from China in H1 FY2024. With demand improving in China in recent months and an increase in international pellet prices (leading to higher contribution), exports have now turned lucrative for Indian merchant pellet exporters. This also provides an attractive opportunity for Indian merchant player to increase their share of exports in the global market especially in the backdrop that Brazil, the largest pellet exporter globally, has not yet ramped up its production (following curtailed operations) and the supplies from Ukraine, another dominant exporter, continue to remain constrained, said ICRA.

HCL Technologies Ltd Q3FY24 Result Preview by Dhruv Mudaraddi, Research Analyst, Stoxbox:

We expect HCL Tech’s Q3FY24 revenue to grow in the mid-single digits QoQ driven by the Verizon deal ramp-up, the additional contribution from the ASAP Group acquisition for two months, and the seasonality benefits in Products and Platform (P&P) business. EBIT margins are also expected to improve owing to cost efficiencies, seasonal strength in the high-margin P&P business, and forex benefits. However, this improvement will be partly offset by wage hikes, furloughs, and the costs associated with large deal ramp-up. Further, we would be looking out for comments on recovery of ERS demand after sharp decline, updates on large deals won in past quarters, and update on the acquisition strategy in and capital allocation policy.

Wipro Ltd Q3FY24 Result Preview by Dhruv Mudaraddi, Research Analyst, Stoxbox:

We expect Wipro’s Q3FY24 revenue to decline in low single digits QoQ due to a lower services income owing to weakness in BFSI and Hi-tech verticals, along with challenges in the consulting business. Margins in services business is expected to decline slightly, with the impact of a one-month wage hike and furloughs being offset by operational efficiencies. Overall EBIT margins are also expected to dip marginally, attributed to soft sales performance and the impact of wage hikes effective from December 1, 2023. on the size and nature of large deals in the quarter, margin levers, any signs of stabilization in discretionary project ramp-downs and the impact of attrition among senior leadership.

Navratna company ONGC Videsh Ltd (OVL) has incorporated a wholly owned subsidiary OVL Overseas IFSC Ltd. (OOIL) in GIFT City, Gujarat.

This GIFT city entity will function as the Global Treasury Centre to cater to the treasury activities of OVL and its 25 subsidiaries (including step-down subsidiaries) spread across 15 countries. Given the business-friendly regulatory environment in GIFT City, OOIL expects to efficiently consolidate funds available with the group in various countries and raise additional funds needed to achieve the ambitious target of producing 40 Million Metric Tonnes Oil & Oil equivalent (MMToe) by 2040 from overseas assets.

The stock rises by 3.72% on the NSE, trading at ₹1,110.

Viksit Engineering informed the appointment of Dinesh Kumar Deora to continue as the Resolution Professional in terms of the provisions of the Insolvency and Bankruptcy Code, 2016 with respect to the Corporate Insolvency Resolution Process of the Company.

“We believe that the company’s revenue is poised to rise by 0.70% on QoQ basis, reaching ₹60,100 Cr, showcasing steady growth from the previous ₹59,692 Cr.

Our optimistic outlook extends to the company’s operational performance, with the expectation of 2% increase in operating profit on a QoQ basis, projecting it to reach ₹14,787 Cr compared to the prior quarter’s ₹14,483 Cr.

In terms of the bottom-line, we foresee a promising 2.14% QoQ increase in profit after tax, with an estimated figure of ₹11,624 Cr, as opposed to the previous ₹11,380 Cr.

We expect Infosys to have an sideways movement post results with an expected range of 3600-3750.”

Tata Consultancy Services Ltd. Q3FY24 Result Preview

“We expect TCS’ Q3FY24 revenue to be flat sequentially as growth was tepid due to ongoing weaknesses in discretionary spending and furloughs during the quarter. However, this downturn is expected to be partially mitigated by the positive impact of previously secured deals that are now ramping up. Margins, on the other hand, are anticipated to witness a slight expansion QoQ, driven by the easing of supply-side constraints, operating leverage, and currency exchange benefits. We also expect the deal win momentum to sustain, particularly driven by cost optimization initiatives. Further, we would be looking out for comments on the demand outlook in the US (BFSI sector), UK, and Europe, any signs of recovery in discretionary projects, and margin outlook.”

Infosys Ltd. Q3FY24 Result Preview

“We expect Infosys’ Q3FY24 revenue to marginally decline QoQ owing to a challenging quarter primarily influenced by sustained weak demand, the absence of certain one-time sales and the impact of furloughs. The absence of mega deals is expected to moderate deal momentum in 3Q. EBIT margins are also anticipated to decrease slightly QoQ, attributed to the impact of two months of wage hikes in the quarter and the absence of one-time sales in 2Q, partially offset by lower pass-through sales and currency benefits. Further, we would be looking out for comments on the demand outlook in the BFSI and Hi-Tech verticals (currently under pressure), feedback on its clients’ CY24 budget, deal ramp-up visibility and margin levers.”

The company infused equity of ₹5 crore and inter corporate loan of ₹133.15 crore into AMW Autocomponent.

Network18 Media & Investments (20%)

Motisons Jewellers (19.99%)

RBZ Jewellers (19.99%)

TV18 Broadcast (17.73%)

Silgo Retail (16.01%)

Major gainers on the BSE at 11 am:

Network 18 (19.99%); TV Broadcast (15.25%); Arvind (7.84%); Tanla Platforms (7.09%); Dish TV (6.67%)

Major losers:

Inox Wind (-6.07%); Trident (-5.45%); Manappuram (-5.07%); IGL(-3.60%); Sona BLW (-3.44%)

ICRA Analytics on key benchmark indices:

Indian equity markets gave up the healthy gains of the early trading session and closed with mild gains despite having strong global cues. The key benchmark indices witnessed a selling pressure towards the fag end, mainly due to sell-off in banking and financial services stocks, driven by profit booking following mixed cues from Asian markets.

Bond yields declined amid optimism in response to a proposal to include eligible domestic bonds to the Bloomberg Emerging Market Local Currency index.

Yield on the 10-year benchmark paper (7.18% GS 2033) fell by 1 bps to close at 7.19% as compared to the previous close of 7.20%.

JASH Engineering reported in the month of December 2023, the consolidated orders received by the Company are worth ₹33 crore out of which orders worth ₹22 crore are for Indian market and orders worth ₹11 crore are for markets outside India. 

As on January 1, 2024 the total consolidated order book position of the company is ₹863, crore out of which, orders worth ₹268 crore are for Indian market and orders worth ₹595 crore are for markets outside India. Out of the consolidated orders worth ₹595 crore for markets outside India, ₹383 crore worth orders are for USA market and remaining ₹212 crore constitute orders for rest of the world. 

The stock declined 1.39% on the NSE, trading at ₹1,524.55.

Marathon Nextgen Realty’s Operational Highlights for O3FY24:

Area sold stood at 2,21,862 sq. fts., an increase of 24% 

Sales value stood at ₹370 crores, an increase of 23% 

Collections stood at ₹274 crores, decrease of 8% YoY over corresponding period of last year. 

The stock surged 5.60% on the NSE, trading at ₹436.90.

Dynacons Systems & Solutions has bagged a contract from Bharat Heavy Electricals Ltd for ₹137 crore, for providing comprehensive suite of devices, including High-End Desktops, Workstations, LED Projectors and UPS paired with an array of services such as device management, security, maintenance, and tech support.

Dynacons Systems stock trades at ₹666 on the BSE, up by 3.75%.

BHEL stock trades at ₹194.70 on the NSE, down by 0.46%.

Polycab India stock rose 1.48% on the NSE, trading at ₹4,939. The company has denied any rumours of tax evasion by the Company circulating in media. The Company asserts its commitment to compliance and transparency, having fully cooperated with the Income Tax Department officials during the search proceedings in Dec ‘23. The Company has not received any communication from the Income-tax department regarding the outcome of the search.

Crude oil futures traded higher on Wednesday morning as the data published by the American Petroleum Institute (API) showed a decline in crude oil inventories in the US.

Benchmark equity indices declined in early trade on Wednesday amid fresh foreign fund outflows and a largely weak trend from global markets.

The 30-share BSE Sensex declined 81.35 points to 71,304.86. The Nifty dipped 27 points to 21,517.85.

Wardwizard Innovations & Mobility Limited has unveiled six concept models of electric vehicles at the 10th edition of Vibrant Gujarat Global Summit. 

The stock surged by 7.51% on the BSE, trading at ₹74.45.

Puravankara’s Operational Update for Q3FY24:

Sales value of ₹3,967 crores in 9MFY24. Up by 89 per cent when compared to ₹2,100 crores in 9MFY23. 

Sales value of ₹1,241 crore for Q3FY24. Up by 56 per cent compared to ₹796 crores in Q3FY23. 

Customer collection for 9MFY24 increased to ₹2,515 crores compared to ₹1,597 crores in 9MFY23, up by 57 per cent. 

The stock rose by 4.35% on the NSE, trading at ₹230.40.

Elara Securities:

Expect Elara coverage universe (239 companies) to see muted sales growth of 1.7% YoY in Q3E, owing to oil marketing companies (OMCs) seeing lower crude prices compared with prior quarter. Ex-OMCs, sales growth for our universe still looks tepid at 7.6%. Despite this, bottomline growth may be healthy at 15.4% YoY, primarily due to expected earnings expansion in Auto, Banks ,Consumer Discretionary and Cement. Earnings for IT may decline ~3% YoY as furloughs weigh down on operating margins.

Easing cost pressure and operating leverage benefits for cement companies as also higher marketing margins for OMCs may increase EBITDA margin (ex-Financials) for our universe by 169bps YoY, while slight firmness in raw material prices for Auto and inventory losses for OMCs may drag down margin sequentially by 123bps to 15.8%.

Emerald Haven Realty Limited (EHRL), subsidiary of TVS Holdings has incorporated a wholly-owned subsidiary in the name of Emerald Haven Builders Private Limited (EHBPL).

TVS Holdings stock trades at ₹8,117.05 on the NSE, up by 0.72%.

The rupee depreciated 4 paise to 83.17 against the US dollar in early trade on Wednesday amid selling of equities by foreign investors and an upward movement in crude oil prices.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“The market is moving up and down without a directional trend. Up moves are countered with selling and down moves are responded with buying. A trend might emerge in the coming days in response to Q3 results.

There is an important dichotomy in the market which has implications for investors. Segments like defence and railways have run up too much too fast based on expectations triggered by order inflows. It will take time for these orders to be executed and reflect on the bottom lines. On the other hand there is value in segments like banking, particularly in high-quality private sector majors. But this value is not getting reflected in the price. This is a short-term aberration which will correct in the medium to long term. Here patience is the key.

Q3 results starting tomorrow will be keenly watched. Regarding IT the management commentary will be more important than the results which will be tepid.”

Anand James, Chief Market Strategist, Geojit Financial Services:

Nifty weekly contract has the highest open interest at 21,700 for Calls and 21,000 for Puts while monthly contracts have the highest open interest at 22,000 for Calls and 21,000 for Puts. The highest new OI addition was seen at 22,150 for Calls and 21,200 for Puts in weekly and at 22,000 for Calls and 21,800 for Puts in monthly contracts. FIIs increased their future index long position holdings by 0.99%, increased future index shorts by 25.00% and in index options by 20.13% in Call longs, 3.18% in Call shorts, 61.53% in Put longs, and 37.72% in Put shorts.

Ratings agency Moody’s Investors Service on Tuesday said it has downgraded its rating on the senior unsecured bonds issued by Vedanta Resources to Ca from Caa3.

RateGain Travel Technologies Limited has been awarded in two categories at the recently concluded 2024 Hotel Tech awards organized by Hotel Tech Report as well as recognized amongst the Top 10 companies loved by hoteliers. 

RateGain stock rises 2.37% on the NSE, trading at ₹757.40.

The National Company Law Appellate Tribunal (NCLAT) on Tuesday dismissed a plea of an operational creditor to initiate insolvency proceedings against Aditya Birla Fashion and Retail Ltd (ABFRL).

Major gainers:

SBILife (1.72%); HCL Tech (0.96%); Cipla (0.93%); HDFC Life (0.62%); Adani Enterprises (0.45%)

Major losers:

ONGC (-2.86%); BPCL (-2.86%); NTPC (-1.78%); Coal India (-1.65%); Eicher Motors (-1.44%)

Aditya Gaggar, Director of Progressive Shares:

D-street started 9th January trade on a strong note but towards the end erased the majority of its gains and ended the session at 21,544.85. Looking at the larger picture, the Index is oscillating in a range of 21,500-21,800, and breakout in either direction will provide clarity. As indicated earlier, Banking stocks continued to dent the market sentiments as follow-up selling was seen in yesterday’s trade which confirms a Head and Shoulder breakdown. From the Energy space, we remain bullish on OMCs (HindPetro- Buy on dips strategy) while Phoenix Mills (Flag and Pole Breakout) from the Realty sector looks strong. On the technical front, turnaround is expected in the Textile stocks. The technical set-up of the Pharma sector is robust and one can opt to buy on dips strategy (Divis Labs- Inverted Head & Shoulder Breakout). A couple of Civil Construction stocks have given a strong breakout with considerable volumes namely Ashoka Buildcon and NBCC (technical coverage), follow-up buying can be expected.

Ex/record Right Issue: Grasim Industries. 

Ex/record stock split: Cochin Shipyard. 

Ex/record AGM: Spicejet. 

Moved into a short-term ASM framework: 5paisa Capital, Amines and Plasticizers, Sigachi Industries, Sula Vineyards, Syncom Formulations, Transindia Real Estate, Trident.

Moved out of a short-term ASM framework: Adani Energy Solution, Adani Green Energy, Alok Industries, TVS Holdings.

India’s benchmark indices, Sensex and Nifty, displayed a weak opening on Wednesday, lacking definitive positive cues. Despite Tuesday’s Nifty rebound signifying bullish resilience, analysts highlighted the dependence on global market trends to bolster the next upward move. Early trade saw the BSE Sensex slipping by 47.73 points to 71,338.48, while the NSE Nifty decreased by 9.65 points, settling at 21,535.20.

Global markets, particularly led by US stocks, grappled with directional uncertainty. Capital.com’s Kyle Rodda discussed equity valuations, driven by the expectation of aggressive interest rate cuts. He emphasized the consequential impact of softer inflation data and the ‘Powell pivot’ on financial conditions and market multiples, foreseeing imminent rate cuts as a strong support for stock indices.

Attention also centred on forthcoming quarterly results, with major corporations like Infosys, Tata Consultancy Services, HDFC Asset Management, and 5Paisa slated for December 11 releases. YES Securities’ Q3 preview projected a potential 8.8% year-on-year topline growth, hinting at a modest rebound in economic activity. While EBITDA margins showed promising expansion, PAT growth surged impressively by 27% year-on-year basis.

Meanwhile, equities across the Asia-Pacific region, except for Japanese markets, witnessed a downturn of around 0.5%. The US stock market closed mixed, demonstrating an absence of a clear directional trend; Nasdaq showed gains, while Dow Jones and S&P-500 ended in the red.

Rodda cautioned about potential market volatility amid the Federal Reserve’s projections for an economic soft landing, emphasizing the probable need for rate cuts. Mishra advised caution, urging limited trades and hedged bets amidst uncertain market shifts. The outlook highlighted a reliance on global cues for market stability before a sustained upward trend could potentially take hold.

RailTel Corporation of India Ltd. has received the work order from Centre for Development of Telematics (C-DoT) for Installation, Testing and Commissioning of MPLS VPN connectivity at 26 number of sites across India amounting to ₹29.54 Crore (Excluding GST).

Crude oil futures traded higher on Wednesday morning as the data published by the American Petroleum Institute (API) showed a decline in crude oil inventories in the US. At 9.09 am on Wednesday, March Brent oil futures were at $77.78, up by 0.24 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $72.45, up by 0.29 per cent. January crude oil futures were trading at ₹6032 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6034, down by 0.03 per cent; and February futures were trading at ₹6060 as against the previous close of ₹6062, down by 0.03 per cent.

Associated Alcohols & Breweries Limited (AABL), a flagship company of Associated Kedia Group, has launched its handcrafted premium gin ‘Nicobar.’

‘Nicobar’ is a spirit infused with elderflower and hibiscus, with a flavour of grains of paradise. The integrated alcoholic beverages manufacturer claims that Nicobar is the only gin in the country using three kinds of juniper, a spice that gives gin its distinct flavour. Some other notes in the liquor are citrus from added sweet orange peel and coriander seeds. AABL also acquired specialised copper stills for the gin’s craftsmanship and distillation, a choice they claimed as their commitment to producing high-quality gin. 

Pondy Oxides And Chemicals: Co Signed Mou With Tamil Nadu To Set Up Recycling And Manufacturing Plants For Non-ferrous Metals, Lithium-ion Batteries, Others. Co Proposes To Invest 3-5B Rupees In Proposed Projects In Next 5 Years.

Shrikant Chouhan, Head – Equity Research, Kotak Securities

The benchmark indices witnessed a volatile trading session, after a roller coaster activity the nifty ended 32 points higher while the Sensex was up by 31 points. Among Sectors, Reality, Pharma and Infra indices gained over 1 per cent whereas the Media index corrected sharply, and shed nearly 3 per cent. Technically, after an early morning, intraday rally the index took the resistance near 21725/72000 and due to profit booking at higher levels, it corrected sharply. On intraday charts, the index still holds a lower top formation; on daily charts, it has formed inside bar candles indicating indecisiveness between the bulls and bears.

One97 Communications Limited (OCL), which owns the brand Paytm, has announced an investment of ₹100 crore in Gujarat International Finance Tec-City (GIFT City) to build a global financial ecosystem, ahead of the Vibrant Gujarat Global Summit 2024, in Gandhinagar. The company will make the investment over a period of time and will seek requisite approvals for the same.

Vijay Shekhar Sharma, founder and CEO, said, “The strategic investment in GIFT City represents a pivotal step towards building an Artificial Intelligence-driven cross-border remittance and payments technology landscape, presenting global opportunities. 

“This will enable us to deliver fast, reliable, and cost-effective remittance solutions, reducing friction, at a global scale. We are excited about GIFT City serving as an exemplary innovation hub for cross-border activities, enabling overseas investors the flexibility to maintain foreign currency accounts. Furthermore, we intend to leverage this investment to establish a dedicated development center.”

Silver prices declined as the dollar strengthened, prompting investors to await U.S. inflation data for insights into potential interest rate adjustments by the Federal Reserve. The New York Federal Reserve’s report indicated consumer expectations of reduced inflation, coupled with anticipated weakness in income and spending over the upcoming years. Fed Governor Michelle Bowman’s remark that the U.S. central bank’s monetary policy appears “sufficiently restrictive” added to the market sentiment.

Looking ahead, investor focus shifts to Thursday’s U.S. consumer and producer inflation reports, anticipating a deceleration in price rises for December.

ONGC Videsh Ltd. (OVL), the wholly-owned subsidiary and overseas arm of ONGC, has incorporated a wholly owned subsidiary OVL Overseas IFSC Ltd. (OOIL) in GIFT City, Gujarat. 

This GIFT city entity will function as the Global Treasury Centre to cater to the treasury activities of OVL and its 25 subsidiaries (including step-down subsidiaries) spread across 15 countries. 

OVL said it expects the new subsidiary to efficiently consolidate funds available with the group in various countries and raise additional funds needed to achieve the ambitious target of producing 40 Million Metric Tonnes Oil & Oil equivalent (MMToe) by 2040 from overseas assets.

Gold rebounded as investors seized the opportunity presented by the previous session’s price dip, directing their focus toward U.S. inflation data later in the week to glean insights into the Federal Reserve’s policy trajectory. The New York Fed survey indicated consumer expectations of declining inflation, coupled with anticipations of gradual increases in household earnings and spending in the coming years. The market, as reflected in the CME FedWatch Tool, assigns a 60% probability to a U.S. rate cut in March.

Looking ahead, investor focus shifts to Thursday’s U.S. consumer and producer inflation reports, anticipating a deceleration in price rises for December.

Buy, TP Raised to Rs 450 

Believe TPWR will outperform for 3 crucial reasons: 

a) CGPL, even under section 11, continues to break even 

b) Consol RE can deliver Rs 100 bn EBITDA by FY27 

c) Lowest capital outlay/MW for pumped hydro entails higher platform 

Additionally, remain a bit concerned on incremental expense trajectory in UTI International owing to investment in business expansion (ex. USA)

However, retain view that UTI AMC is better placed than peers to control or optimize cost trajectory

Cos with favourable vertical exposure to maintain growth pace

Higher-for-longer growth rates to command premium multiples 

KPIT Tech – Buy, TP raised to Rs 1930 from Rs 1655 

Cyient –Buy, TP raised to Rs 2570 from Rs Rs 2294

Buy, TP Rs 730

Media reports suggest UPL set to acquire part of Mancozeb portfolio of global Ag major Corteva; deal terms undisclosed 

A small but +ve development enabling to strengthen market positioning in key markets, especially LatAm 

Trades @ 5.5x FY25e EV/EBITDA

Buy, TP Raised to Rs 955(on roll fwd)

Europe, UK & China led significant vol growth in 3Q 

CO raised JLR Ebit margin guidance to 8% from 6% for FY24 & expects Ebit margin to reach 10% by FY26 

JLR expects to reduce net debt to £1bn by end of FY24.

News Flow Suggests Potential Uncertainty Around Merger Completion. 

However, assuming merger goes through (base case assumption), expect it to drive advt. & subscription revenue synergies along with potential cost synergies as well.

Double upgrade to Buy, TP raised to Rs 270 

Steady tenancies, 5G loading to aid 

Upside optionality from tariff hike/potential fund raise at VIL 

See room for FY25E EV/EBITDA of 5X (vs tower avg. of 12.5X) to re-rate

Upgrade to Neutral, TP raised to Rs 1145 

See a meaningful tariff hike (est. 20%+ tariff hike in CY24) 

Expect market share shift towards Bharti & Jio at faster pace as 5G rollout gradually scales up 

Val at 9.4X FY25E proportionate EV/EBITDA not cheap. 

LIC’‘s shareholding in Navin Fluorine International Ltd has increased from from 4.792% to 5.037% of the latter’s paid-up capital. The number of equity shares the Corporation holds in the company has increased from 23,75,398 to 24,97,139

Issue Open - 26-December-23

Issue Close 10-January-24 (Today)

Right issue Size: Rs. 98.37 Crs (6.35 Crs Shares)

Stock Price – 44.74 /-

Right issue Price: Rs. 15.50/-

Payment Terms: 100% at the time of the application

Rights Entitlement Ratio: 1 Rights Equity Shares for every 17 (Effectively 0.06 for every 1 share held).

Last Trade date (Cum Right): 13 December 2023

Ex-Right Trading date: 14 December 2023

Record Date: 14 December 2023

Right Entitlement (RE) Trading Period:- 26 December 2023 to 05 January 2024

Last day of Renunciation of Rights Entitlements: 05 January 2024

Date of Allotment (on or about): 18 January 2024

Date of listing (on or about): 24 January 2024

INDUSTOWER: BofA Sec double upgrades Indus Towers to buy call, says risk-reward turning favourable. Potential reduction in capex, from current 29% capex/sales as investments reduce improving free cash flow.

On cement prices, Nomura says pan India prices moderated further by ₹10/bag MoM, adding that demand in the north remained subdued due to seasonality

TATAPOWER: Antique gives buy call on Tata Power, says believe co will outperform as Coastal Gujarat Power, even under section 11, continues to break even because its share in coal profits is adjusted.

11 January 2024 

Derivative Segment 

• HDFC AMC Ltd 

• Infosys Ltd. 

• Tata Consultancy Services Ltd. 

12 January 2024 

Derivative Segment 

• HCL Technologies Ltd. 

• HDFC Life Insurance Co Ltd. 

• Wipro Ltd. 

Cash Segment 

• Just Dial Ltd. 

13 January 2024 

Derivative Segment 

Nil 

Cash Segment 

• Avenue Supermarts Ltd. 

15 January 2024 

Derivative Segment 

Nil 

Cash Segment 

• Angel One Ltd. 

• PCBL Ltd. 

16 January 2024 

Derivative Segment 

• HDFC Bank Ltd. 

• ICICI Lombard General Ins Co 

• L&T Technology Services Ltd. 

• The Federal Bank Ltd. 

Cash Segment 

• CE Info Systems Ltd. 

• ICICI Securities Ltd. 

• Jindal Saw Ltd. 

• Bank Of Maharashtra 

17 January 2024 

Derivative Segment 

• Asian Paints Ltd. 

• ICICI Prudential Life Ins Co Ltd. 

• LTIMindtree Ltd. 

• Oracle Financial Serv Software 

Cash Segment 

• Happiest Minds Tech Ltd. 

18 January 2024 

Derivative Segment 

• Polycab India Ltd. 

• Tata Communications Ltd. 

Cash Segment 

• 360 One Wam Ltd. 

• Poonawalla Fincorp Ltd. 

• Mastek Ltd. 

• Supreme Petrochem Ltd. 

19 January 2024 

Derivative Segment 

• Atul Ltd. 

• Ultratech Cement Ltd. 

• Hindustan Unilever Ltd. 

Cash Segment 

• CreditAccess Grameen Ltd. 

• One97 Communications Ltd. 

• Supreme Industries Ltd. 

20 January 2024 

Derivative Segment 

• ICICI Bank Ltd. 

• JK Cement Ltd. 

• Persistent Systems Ltd. 

Cash Segment 

• The Jammu & Kashmir Bank Ltd. 

22 January 2024 

Derivative Segment 

• Coforge Ltd. 

Cash Segment 

• Zensar Technologies Ltd. 

23 January 2024 

Derivative Segment 

• Axis Bank Ltd. 

• Indus Towers Ltd. 

• Pidilite Industries Ltd. 

Cash Segment 

• Gujarat State Fert & Chem Ltd. 

• Tanla Platforms Ltd. 

24 January 2024 

Derivative Segment 

• Bajaj Auto Ltd. 

• Container Corp Of India Ltd. 

• Exide Industries Ltd. 

• Tech Mahindra Ltd. 

• TVS Motor Company Ltd. 

Cash Segment 

• Blue Dart Express Ltd. 

25 January 2024 

Derivative Segment 

• Cholamandalam Inv and Fin Co 

• Cipla Ltd. 

• JSW Steel Ltd. 

• Syngene International Ltd. 

• Shriram Finance Ltd. 

Cash Segment 

• Cyient Ltd. 

• Maharashtra Scooters Ltd. 

27 January 2024 

Derivative Segment 

Nil 

Cash Segment 

• Capri Global Capital Ltd. 

• Craftsman Automation Ltd. 

• Yes Bank Ltd. 

29 January 2024 

Derivative Segment 

• Bajaj Finance Ltd. 

• Bharat Electronics Ltd. 

• Petronet LNG Ltd. 

Cash Segment 

• CSB Bank Ltd. 

• Latent View Analytics Ltd. 

• Nippon Life India AMC Ltd 

• UTI AMC Ltd 

30 January 2024 

Derivative Segment 

• Bajaj Finserv Ltd. 

• Dr. Reddy’s Laboratories Ltd. 

• M&M Financial Services Ltd. 

Cash Segment 

• Bajaj Holdings & Investment Ltd. 

• Blue Star Ltd. 

• KPIT Technologies Ltd. 

• Star Health & Allied Ins Co Ltd. 

• Vaibhav Global Ltd. 

• Apar Industries Ltd. 

31 January 2024 

Derivative Segment 

• Dabur India Ltd. 

• IDFC Ltd. 

• Jubilant FoodWorks Ltd. 

• Shree Cement Ltd. 

• Godrej Consumer Products 

Cash Segment 

• Amara Raja Energy & Mobility 

• Motherson Sumi Wiring India Ltd. 

• Kalyan Jewellers India Ltd. 

01 February 2024 

Derivative Segment 

• Mphasis Ltd. 

• Titan Company Ltd. 

Cash Segment 

• Castrol India Ltd. 

• Sumitomo Chemical India Ltd. 

• V-Guard Industries Ltd. 

• Tube Investments of India Ltd. 

02 February 2024 

Derivative Segment 

Nil 

Cash Segment 

• Alkyl Amines Chemicals Ltd. 

• Bikaji Foods International Ltd. 

• Mahindra Holidays & Resorts 

• Mahindra Lifespace Dev Ltd. 

• Medplus Health Services Ltd. 

05 February 2024 

Derivative Segment 

Nil 

Cash Segment 

• Kansai Nerolac Paints Ltd. 

06 February 2024 

Derivative Segment 

• Max Financial Services Ltd. 

• Navin Fluorine International Ltd. 

Cash Segment 

• Endurance Technologies Ltd. 

• TTK Prestige Ltd. 

• Computer Age Mgmt Serv Ltd. 

07 February 2024 

Derivative Segment 

• Nestle India Ltd. 

08 February 2024 

Derivative Segment 

Nil 

Cash Segment 

• Esab India Ltd. 

12 February 2024 

Derivative Segment 

Nil 

Cash Segment 

• BASF India Ltd. 

• Glaxosmithkline Pharma Ltd. 

• HEG Ltd. 

• Lakshmi Machine Works Ltd. 

13 February 2024 

Derivative Segment 

• Bosch Ltd. 

• Hindalco Industries Ltd. 

14 February 2024 

Derivative Segment 

• Crompton Greaves Cons Ele Ltd 

20 February 2024 

Derivative Segment 

• ABB India Ltd. 

23 February 2024 

Derivative Segment 

Nil 

Cash Segment 

• Rain Industries Ltd.

Franklin Industries Ltd

Stock Split Rs.10/- to Rs.1/-

Previous day Closing Price – Rs. 47.71

Ex - Stock Split 11 January 2024 (Tomorrow)

Last day trade for before split Today

Integra Essentia Ltd

Bonus issue 1:1

Previous day Closing Price – Rs. 12.95

Ex Bonus 11 January 2024 (Tomorrow)

Last date Trade for Before Bonus Today

Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Oct-Dec’23 Earnings Preview – Robust inflows & execution to drive healthy Q3

We expect our capital goods coverage universe to report healthy performance in Q3FY24 led by 1) continued execution of strong opening order books, 2) robust demand/orders/volumes in domestic market, and 3) traction in key export markets such as Middle East, Americas, Africa etc. Overall, we expect Revenue/Adj. PAT growth of ~16.6%/22.0% YoY (13.5%/14.1% YoY ex-L&T). Margin guidance, European demand outlook, order/enquiry pipeline and impact of elections on domestic demand/orders will be key monitorables. Our top picks are L&T, Siemens, ABB, Triveni Turbine, and Praj Industries.

3QFY24 is likely to have been another painful quarter for both chemical intermediate makers and crop-protection chemical companies. We see high risk of earnings downgrades for several companies including NFIL, RALI, SRF and UPLL (versus KIE estimates) and ATLP, DN and TTCH (versus consensus). Given rich valuations and recent strength in stock prices, we remain cautious on the sector and see risks of disappointing returns from most leading stocks.

Customer destocking, unfavorable Rabi season to hurt crop chemicals sector

3QFY24 was likely a difficult quarter for the crop-protection chemicals industry, with exports likely hurt more than domestic sales amid continued destocking by customers. That said, even the domestic Rabi season was challenging amid low water levels, elevated channel inventories and intense competition. Some companies again cut prices during the quarter; margins likely remained under pressure. UPLL may be the worst-hit amid customer destocking and pricing pressures. RALI is also likely to report sharply lower earnings owing to a collapse in export revenues. GOAGRO will likely report a subdued quarter, with strength in its domestic crop protection business offset by continued agony at Astec. BYRCS’ earnings growth may once again be supported by lower employee costs, although revenue growth may be lackluster.

No signs of recovery yet for chemical intermediate makers

We find the Street’s hopes about privatization of PSUs quite misplaced given the issues of (1) policy, (2) practice and (3) price. (1) The government’s stated policy on privatization of PSUs, (2) practical issues seen in previous attempts to privatize PSUs and (3) high prices of PSUs should provide plentiful caution against making privatization as an investment thesis for PSUs.

Sharp run-up in PSU stock prices; don’t bank on privatization

We are not sure if the privatization thesis for PSUs is an ex ante reason for or a post facto justification for the sharp run-up in stock prices of PSUs in the past few months (see Exhibit 1). We are surprised by the privatization argument for PSUs in light of (1) stated policy of the government for PSUs, (2) practical challenges seen in the attempts to privatize BPCL, CCRI and (3) high prices (inflated valuations) of the PSUs with many PSUs trading at a large premium to their private sector counterparts, presumably the bidders for the PSUs

Choice International Ltd., a prominent player in India’s financial services sector, proudly announces a major milestone in its trajectory. As of today, the company has crossed the esteemed ₹5000 Crore mark in market capitalization, showcasing the resounding success and investor confidence in its strategic growth and performance.

Since its inception in 1992, Choice International Ltd. has been dedicated to providing tech-driven financial services, catering to the diverse needs of individuals, institutions, and governments. Over the years, the company has demonstrated unwavering commitment and a vision aimed at addressing financial challenges, bridging gaps, and creating value for its clients and society at large.

The company’s expansion, diversification of financial offerings, and commitment to leveraging technology for enhanced customer experiences have been key contributors to this achievement. Choice International Ltd. remains committed to its vision of empowering clients, fostering financial growth, and continuing to create substantial value for stakeholders.

Q3E to see 1.8% YoY revenue growth led by volume recovery…

Expect Elara Textiles universe to post a revenue growth of 1.8% YoY (2.6% QoQ) in Q3FY24E, led by volume recovery on favorable base, which may be offset by price deflation. KPR Mill may lead the pack, with the sharpest increase of 8.4% YoY in revenue. Volume growth may be muted YoY for garment players, whereas spinning volumes may inch up. A sequential improvement in volumes is expected with orders kicking in from export markets, as India cotton prices turn favorable against international prices and domestic demand remains resilient. Q3E EBITDA may grow 19.9% YoY (up 5.1% QoQ), led by favorable cost structure compared with Q3FY23. Q3E APAT may improve 23.8% YoY (up 4.2% QoQ), percolating from EBITDA growth.

Credit demand has been consolidating as personal unsecured & SME/MSME loans are performing better compared to tractor financing, new CV loans, etc.

■ Margin pressure, amid competitive yields and rising cost of deposits along with elevated opex, may hit profitability but the asset quality trend to remain steady.

■ HDFCB, SBIN, BAF, MMFS and Spandana to surprise positively but we remain skeptical on AXSB amid margin pressure and elevated operating expenses

As per Pharmatrac, a pharmaceuticals market research company, the domestic pharma market has grown at a better pace of 9.2% YoY in Dec 2023, after a poor show of just 2.9% YoY growth in Nov 2023. Volume growth was muted at 2.2% YoY. Thus, price remains the major driver. CY23 value growth at 6.8% (flat volume) is significantly below original expectations. This has reflected in most listed companies’ reported numbers as well.

Our view

We expect marginal improvement in growth rate in CY24/FY25 – volume growth will likely pick up while price increase will likely moderate. We continue to believe that the organic growth expectations built into the pharma stocks (which we believe is in 11-14% range) will disappoint. This could be a risk, specifically for companies with high domestic-business contribution to overall profits.

Chronic therapies drive growth

In Dec 2023, the pick-up was led by Cardiac (up 11.5% YoY), Anti-infectives (up 10.3% YoY), Gastro-intestinal (up 10.0% YoY), Pain (up 10.2% YoY) and Neurology (up 12.0% YoY). Anti-diabetics too saw decent growth of 8.9% YoY. Oncology continued with its strong performance, up 13.7% YoY, but is a smaller part of the overall pie.

Volume growth stood at 0.8% in Q3FY23 vis-à-vis negative growth of ~4% in Q2FY23 and Q1FY23 led by healthy volumes in Chronic therapies, though partly negated by muted growth in Acute. Amongst therapies Anti-neoplastics grew 21% in Q3FY23. Value growth for Q3FY23 was driven by Anti-neoplastics, Cardiac, Respiratory and Anti-diabetic.

Sun Pharma, Cipla, Torrent, Alkem and Glenmark grew in mid-high, single-digit percentage, in Dec 2023, as per data. Mankind Pharma, Zydus Lifesciences and Lupin grew in 10-15% range. Abbott, Ipca, Dr Reddy’s and Sanofi grew <10%. AWACS data does not usually correlate with companies’ reported numbers and should not be extrapolated to reported growth.

- ‘Downgrade cycle fading; summer holds the key’ by Mr. Nirransh Jain, India Analyst - Consumer Durables 

Sector outperformed Nifty 50 by c18% in CY23, but underperformed c6% ex-C&W - In aggregate, the India Consumer Durables sector outperformed the Nifty 50 index by c18% in CY23. Excluding the cables & wires (C&W) companies, however, the sector underperformed by c6% following cuts to the forward FY24/25E Bloomberg consensus earnings over the past 6-12 months. This is not a new dynamic with the sector (ex-C&W) underperforming over the last four years, attributed to inflation-led slowdown in discretionary demand, higher commodity prices, energy rating implementation and higher competitive intensity.

· 3QFY24 preview: A mixed bag expected with trends similar to 2Q - Aggregate 2QFY24 revenue for the sector rose c12% y-y. However, the underlying trends were mixed. While C&W firms saw strong volume growth y-y, B2C firms continued to see softness in consumer demand, along with price erosion in the lighting segment and a shift in festive demand. Our channel checks (Some hits, some misses) suggest that these trends have been broadly maintained through 3QFY24, barring the festive period. We expect our coverage universe to post strong c14% y-y revenue growth and see the impact of the base effect on some companies due to channel filling/de-stocking in 3QFY23, especially for fans and refrigerators on the BEE rating change.

· Demand tailwinds ahead; margins bottoming out; VOLT and HAVL remain our top picks - We continue to prefer the B2C companies within our coverage. While we expect competition to remain high, particularly across electric consumer durables (ECD) and white goods, the recovery in consumption demand and a pick up in real estate activities should drive a healthy offtake for the durables sector in 2024, along with margin recovery from the FY23 lows. We think that the sector’s earnings downgrade cycle is largely behind. While the B2B segment continues to show strong volume resilience, we believe that most of the optimism is priced in and offers limited upside potential. Factoring in our near-term expectations, we revise our estimates and roll forward valuations from Sep-25 to FY26 (multiples unchanged). Our TPs are raised by c2-11% but ratings are unchanged

Tausif Shaikh, India Analyst - Pharma and Healthcare

Indian health ministry sets stricter GMP guidelines

· A 12-month implementation time frame for smaller players: The latest guidelines is expected to come into force in six months for large manufacturers (with turnover >INR2,500m) and 12-months for smaller players (turnover <INR2,500m). The Indian pharmaceutical market is valued at cUSD50b with a near equal share of the domestic and exports market. We estimate the market share of top 50 players in the domestic market to be 80-90%. The ten pharma companies under our coverage have a combined export sales of USD14.3b, which is 57% of India’s pharma export. Given that a substantial share of revenue is derived from large players, who are largely compliant with GMP, we believe that the revised guidelines is unlikely to have a significant impact on the industry

· Domestic focused companies to see greater benefit from the latest GMP revision. We believe the revision of Schedule M by the government is a positive step for IPM as it will ensure that the compliance standards match global quality standards. However, the implementation of the new norms would be challenging for smaller firms, which may lead to rise in near term capex and a permanent increase in operating costs. While the event is positive for the sector, we believe a larger benefit would be felt by companies which have a high exposure in the domestic market as small and new players, which have traditionally competed by launching drugs at a steep discount to incumbents, are likely to exit the market given the increase in compliance costs. In the near-term, they can rationalize their operating cost structure by lowering their MR count and marketing expenses, which also bodes well for larger players.

Goldman Sachs Downgrade ONGC with a revised target price of Rs175 (prior Rs160) and IOCL to Sell with our revised target price of Rs105 (prior Rs85), from Neutral and BPCL to Neutral from Buy target price of Rs500 (prior Rs 435). GS remain Buy rated on RIL

LT view spurs a BUY on Sapphire; valuations outdo JUBI prospect

Our long-term view on Indian QSRs remains constructive, but the ongoing slowdown has been prolonged vs. Street/our expectations. Despite a big sporting event, demand trends remained weak in Q3 as we expect muted pick-up in ADS sequentially vs. mid-to-high single digit pick-up historically (SSGs should be negative across QSRs). We factor-in normal seasonality here-on vs. pent-up demand earlier, leading to a 10-15% EBITDA cut across QSRs under our coverage. However, our DCF-based TP cut is relatively softer, as the long-term view remains intact, driving 3-23% increase in implied multiples (Refer to Exhibits 6-10, for key DCF assumptions). We expect the negative SSG to cause a 70-300bps EBITDA margin decline across players, despite benign RM-led 100-200bps gross-margin gains. We continue to like Sapphire/Westlife, for which we see a relatively faster recovery trend or valuation comfort. Our negative view on Jubi/Devyani is based on valuations exceeding growth prospects

BofA on Indus Tower: Upgrade to Buy on Company, raise target price at Rs 270/sh (Positive) 

CLSA on Tata Motors: Maintain Buy on Company, target price at Rs 955/sh (Positive) 

Nuvama on Prestige: Maintain Buy on Company, raise target price at Rs 1596/sh (Positive) 

Nuvama on Infosys: Upgrade to Buy on Company, raise target price at Rs 1800/sh (Positive) 

Nuvama on FSL: Upgrade to Buy on Company, raise target price at Rs 230/sh (Positive) 

Nuvama on LTIMindtree: Maintain Buy on Company, raise target price at Rs 7350/sh (Positive) 

Nuvama on Coforge: Maintain Buy on Company, raise target price at Rs 7300/sh (Positive) 

Nuvama on Persistent: Maintain Buy on Company, raise target price at Rs 8600/sh (Positive) 

Nuvama on TCS: Maintain Buy on Company, raise target price at Rs 4400/sh (Positive) 

Nuvama on HCL Tech: Maintain Buy on Company, raise target price at Rs 1700/sh (Positive) 

B&K on GSK Pharma: Maintain Buy on Company, raise target price at Rs 2450/sh (Positive) 

MOSL on Kirloskar Oil: Maintain Buy on Company, target price at Rs 840/sh (Positive) 

HSBC on UPL: Maintain Buy on Company, raise target price at Rs 730/sh (Positive) 

HSBC on Cyient: Maintain Buy on Company, raise target price at Rs 2570/sh (Positive) 

HSBC on KPIT: Maintain Buy on Company, raise target price at Rs 1930/sh (Positive) 

Jefferies on Godrej CP: Maintain Buy on Company, target price at Rs 1400/sh (Positive) 

GS on Reliance Ind: Maintain Buy on Company, raise target price at Rs 2885/sh (Positive) 

CLSA on Reliance Ind: Maintain Buy on Company, raise target price at Rs 3060/sh (Positive) 

Antique on Tata Power: Maintain Hold on Company, raise target price at Rs 450/sh (Positive) 

BofA on Bharti Airtel: Maintain Neutral on Company, raise target price at Rs 1145/sh (Neutral) 

Nuvama on Wipro: Maintain Hold on Company, raise target price at Rs 450/sh (Neutral) 

Nuvama on LTTS: Maintain Hold on Company, raise target price at Rs 5200/sh (Neutral) 

Nuvama on Cyient: Maintain Hold on Company, raise target price at Rs 2200/sh (Neutral) 

Nuvama on eclerx: Maintain Hold on Company, raise target price at Rs 2750/sh (Neutral) 

Nuvama on Birlasoft: Maintain Hold on Company, raise target price at Rs 650/sh (Neutral) 

Nuvama on Zensar: Maintain Hold on Company, raise target price at Rs 590/sh (Neutral) 

Nuvama on TechM: Maintain Hold on Company, raise target price at Rs 1050/sh (Neutral) 

Nuvama on MPhasis: Maintain Hold on Company, raise target price at Rs 2250/sh (Neutral) 

HSBC on LTTS: Maintain Hold on Company, raise target price at Rs 4905/sh (Neutral) 

HSBC on Persistent: Maintain Hold on Company, raise target price at Rs 6950/sh (Neutral) 

GS on ONGC: Downgrade to Sell on Company, raise target price at Rs 175/sh (Neutral) 

GS on BPCL: Downgrade to Neutral on Company, raise target price at Rs 500/sh (Neutral) 

GS on IOCL: Downgrade to Sell on Company, raise target price at Rs 105/sh (Negative) 

GS on HPCL: Downgrade to Neutral on Company, raise target price at Rs 360/sh (Negative)

• BALRAMCHIN 

• BANDHANBNK 

• CHAMBLFERT 

• DELTACORP 

• ESCORTS 

• GNFC 

• HINDCOPPER 

• IEX 

• INDIACEM 

• NATIONALUM 

• PEL 

• SAIL

For Dec-23, Naukri’s JobSpeak Index was down 15.6% YoY/up 2.4% MoM. The index has now seen decline in nine of the twelve months in CY23 (on YoY basis). The slight uptick on MoM basis can be attributed to a favorable base effect owing to the festive season. The IT sector index reported a sharp drop of 21.5% YoY in Dec-23, and has now noted a decline for all months in the year – this reflects the persistent challenges faced by the IT sector, wherein muted demand has generated weak hiring trends in the last few quarters, in sync with the recent management commentary. Our latest interactions with the management suggest that there has been no material change, of late, in demand either, and potential recovery in hiring remains contingent on a macro recovery

Vedanta, Polycab, Karantaka Bank, Steel Strips Wheels, Delta Corp, Lupin, KIOCL, Power Finance Corp, 7NR Retail, UH Zaveri

Nihar Info Global Limited, a BSE-listed e-commerce company, has announced that it is going to acquire a majority stake (51 per cent) or more of the equity stake in healthcare startup firm Life 108 Healthcare Private Limited.

The company’s board of directors approved the plan to acquire the stake in Life108 on Tuesday.

Franklin Templeton India’s Chief Investment Officer, Anand Radhakrishnan, is set to join Sundaram Asset Management Company. He is expected to replace Sunil Subramaniam who is likely to step down by April. Subramaniam, 62, will step down after completing 19 years in Sundaram Mutual, sources said.

IPO volumes are seen doubling in 2024 from last year with a significant uptick in the average deal size, with $12-13 billion being raised in the primary equity markets, according to V Jayasankar, Managing Director of Kotak Investment Banking.

Talking to the media, he said that large companies in sectors such as manufacturing, healthcare, financial institutions group, consumer and digital are evaluating primary issuances that can hit the market in the current year. Other sectors that are likely to see IPO launches are electric mobility, fintech and consumer technology. The average deal size would also be higher at over $200 million, again doubling from the average deal size of $109.5 million seen last year.

The age of unicorns is just starting to get warm and 15 to 20 unicorns in the internet sector with “solid models and teams” will be ready to hit the markets with their public issuances in the next 12-24 months, according to Kotak Investment Banking.

During the period, the segment will also see 20 to 30 mid to large mergers and acquisitions either pre or post IPO.

RK Swamy, one of the largest marketing services providers and market research services companies, has received SEBI approval for its proposed initial public offering.

The company’s offer includes fresh equity issuance of ₹215 crore and an offer for sale of up to 87 lakh equity shares by selling shareholders. The offer for sale comprises up to 17.88 lakh equity shares by Srinivasan K Swamy, 17.88 shares by Narasimhan Krishnaswamy, 44.46 lakh shares by Evanston Pioneer Fund LP and 6.78 lakh shares by Prem Marketing Ventures LLP.

The number of voluntary delisting offers dipped to 12 in 2023 from 19 and 22 in the previous two years, according to a note by Touchstone Partners, a firm that specialises in M&A activity. The spike in delisting offers between 2020 and 2022 was triggered by cash-rich promoters who sought to take advantage of reduced market prices.

India’s imminent inclusion into the Bloomberg EM Index has come as an icing on the cake and would further boost foreign portfolio investments in country’s debt markets in 2024, say economists and analysts.

This is also expected to support increased debt issuances by the government in the coming years. Ahead of the Indian government bond inclusion in global bond indices from June 2024, several FPIs are expected to front load their investments in the debt markets this year.

It was a rough year for the market regulator at the Securities Appellate Tribunal, with setbacks in key cases. The tribunal reversed the disgorgement order passed by the Securities and Exchange Board of India (SEBI) in the NSE matter in January last year. The disgorgement order passed by SEBI against Ramalinga Raju and his relatives in the high-profile Satyam scam case, faced a similar fate. Both these orders were set aside by SAT citing the inappropriateness of unlawful ‘gains’ identified by SEBI for the purpose of disgorgement.

Hikal Ltd will invest ₹500 crore in its existing fine chemical plant at Panoli, Gujarat, covering all three of its business verticals— pharma, crop protection, and animal health.

Hikal and the Gujarat government signed a Memorandum of Understanding (MoU) to this effect as part of the Vibrant Gujarat Global Summit 2024 investment initiative, the company said. The investment is expected to create employment opportunities of about 400 jobs, it added. 

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

The short-term outlook for Latent View Analytics is turning positive. The stock had surged about 5 per cent on Tuesday. This rise has happened from around the key support level of ₹440. It indicates that the uptrend in place since May last year is intact.

19:45 U.K. BOE Gov Bailey Speaks

U.S. EARNING CALENDAR 10.01.2024

KB HOME (POST MARKET) (SECTOR: REAL ESTATE)

INDIA Q3FY24 EARNING CALENDAR 10.01.2024

SPS

INDIA Q3FY24 EARNING CALENDAR 11.01.2024

GTPL, HDFCAMC, INFY, PLASTIBLEN, TCS

Bajaj Auto: Dinesh Thapar, CFO

Buyback Decision Reflects Co’s Strong Business Performance: Bajaj Auto

https://www.youtube.com/watch?v=DSW8RXQkcNE

Brigade Ent: Pradyumna Krishna Kumar, Executive Director

Will Complete New Projects In Chennai Over Next 3-4 Years: Brigade Group

https://www.youtube.com/watch?v=xvP_-WFaQm4

Chambal Fert: Abhay Baijal, MD

If Red Sea Issue Flares Up Till March, This Will Be A Long-Term Impact: Chambal Fertilsers

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

Gokaldas Export: Sivaramkrishnan Ganapathi, MD

No Red Sea Impact On Us As Increase In Shipping Costs Is Borne By Our Customers: Gokaldas Exports

https://www.youtube.com/watch?v=Ddb5r-DalD0

Jyoti CNC: Parakramsinh Jadeja, CMD

Current Debt Is At ?800 Cr & Debt-To-Equity Will Be Less Than 0.25x Post IPO: Jyoti CNC Automation

https://www.youtube.com/watch?v=39t6pXjrIaw

Shriram Properties: Murali Malyappan, MD

Demand Has Been Very Good. Believe H2 Will Be Much Stronger Than H1: Shriram Properties

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

Ugro Capital: Shachindra Nath, Executive CMD

We Aim To Partner With Private Banks: U GRO Capital

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

CEBBCO: Vivek Lohia, Managing Director

Will See Higher Execution From Brake Biz In FY25: Jupiter Wagons

https://www.youtube.com/watch?v=dApW_7dvJ_E

J&K Bank: Baldev Prakash, MD CEO

Cost Of Deposits To Be Higher For Next 6 Months | Baldev Prakash Of J&K Bank Ltd Explains

https://www.youtube.com/watch?v=FeaEzQKj_0g

Suzlon Energy: Himanshu Mody, CFO

Confident Of Budgetary Allocations For Renewable Energy: Suzlon Group’s Himanshu Mody

https://www.youtube.com/watch?v=n85UG76kqPA

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

BSE Sensex: 71386.21 (+30.99)

Nifty 50: 21544.85 (+31.85)

NIFTY MID CAP 100: 46969.95 (+75.60)

NIFTY SMALL CAP 100: 15409.70 (+67.15)

📌 Index PE & PBV

SENSEX PE / PBV : 25.26 / 3.68

NIFTY 50 PE / PBV : 

22.97 / 3.77

NIFTY MIDCAP 100 PE / PBV : 25.07 / 3.76

NIFTY SMALLCAP 100 PE / PBV : 29.25 / 3.80

📌 Inflow/Outflow (Daily/MTD) 

FII / FPI Activity: (990.90 crs) / 2315.42 crs

DII Activity: 104.23 crs / (7036.35 crs)

📌 Volatility Index

India VIX - 13.26

📌 Commodities

Brent Crude: $77.84

Gold USD Oz/10 gm: $2035.13 = INR 62334

Silver: INR 72526

📌 Currency

*Rs/$: 83.12

US Dollar Index (DXY) - 102.37

📌 10 Year Yield

7.26% GOI 2033: 7.22% (Old)

7.18% GOI 2033: 7.19% (New)

US 10 Yr Yield - 4.04%

Asian markets showed a mixed trend post a tech-led upturn on Wall Street, marking the beginning of a week centred on significant inflation figures and bank earnings. 

Japanese stocks commenced on a high note on Wednesday, extending the previous session’s upward momentum after Wall Street’s varied closure. The Nikkei 225 index surged by 1.19%, equivalent to 403.10 points, reaching 34,166.28 in early trade. Additionally, the broader Topix index climbed by 0.69%, adding 16.62 points, totalling 2,429.71. South Korea’s KOSPI weakened by 0.37%, slipping by 9.42 points to 2551.82, while Hong Kong’s Hang Seng dropped 0.28%, down by 46.05 points to 16,143.77. Australia’s S&P/ASX 200 traded 0.22% lower, shedding 17.90 points, landing at 7,502.60.

Regarding commodities, crude oil stabilized after a more than 2% surge on Tuesday, propelled by ongoing contractions in US stockpiles and an official forecast suggesting a limited global deficit this year. West Texas Intermediate remained above $72 a barrel, while Brent hovered close to $78.

On Tuesday, Wall Street experienced subdued trading with a mix of movements, witnessing declines in most stocks while a few influential companies prevented significant losses. The S&P 500 dipped by 7.04 points, marking a 0.1% decrease from its recent strong performance. Simultaneously, the Dow Jones Industrial Average dropped by 157.85 points, a 0.4% decline, reaching 37,525.16, while the Nasdaq composite managed a slight increase of 13.94 points, up 0.1% to 14,857.71.