Share Market Highlights 15 February 2024: Sensex gains 227 pts; Nifty closes above 21,900; midcap, smallcap stocks shine

Equity benchmark ​Sensex climbed over 225 points to reclaim the 72,000-mark​ on Thursday, while the Nifty settled close to the 22,000 level, supported by hectic buying in market heavyweights M&M, HDFC Bank and SBI amid a largely firm trend in global equities.

Besides, a heavy rush on auto, energy and utility counters also helped the indices, traders said.

Rising for the third straight session, the 30-share ​BSE Sensex​ climbed 227.55 points or 0.32 per cent to close at 72,050.38. The index opened strong and touched a high of 72,164.97 and a low of 71,644.44 during intra-day trades.

The broader ​NSE Nifty​ also gained 70.70 points or 0.32 per cent to end at 21,910.75.

The rupee consolidated in a narrow range and depreciated by 2 paise to close at 83.04 (provisional) against the US dollar on Thursday, tracking a strong American currency and elevated crude oil prices in the international market.

Forex traders said the Indian currency depreciated as foreign fund outflows weighed on the rupee. However, positive domestic markets cushioned the downside.

At the interbank foreign exchange market, the rupee opened at 83.00 and finally settled at 83.04 (provisional) against the dollar, down by 2 paise from its previous close.

Apollo Tyres Ltd has received Ooder passed under Central Excise Act levying penalty of ₹15.34 lakh pertaining to dispute regarding cenvat credit.

The Company will file appeal before Appellate Authority in due course.

Tejas Networks has received ₹27.78 crore as incentives for the fiscal year 2022-’23 under the PLI (Production-Linked Incentive) Scheme for Telecom and Networking Products.

Stock closed 3.30% higher on the NSE, at ₹733.

Kranti Industries has received an order from Carraro Drive Tech Italia Spa for supply of a component called Beam Trumpet, amounting to a sum of EURO 31.582.08.

The Kranti Industries stock surged by 5.29% on the BSE, trading at ₹81.

CLC Industries Ltd [formerly known as Spentex Industries Ltd] has entered into an agreement with Neo Stretch Private Ltd to transfer Pithampur Undertaking on slump sale basis. 

Major gainers: M&M (6.39%), BPCL (4.79%), Power Grid (4.74%), ONGC (3.40%), NTPC (3.17%)

Major losers: Axis Bank (-2.34%), Apollo Hospitals (-1.90%), ITC (-1.86%), Hindustan Unilever (-1.67%), Britannia (-1.21%)

A total of 2,371 stocks advanced on BSE at 3 pm on Feb 15, against 1,466 stocks that declined; 83 stocks remained unchanged. Total stocks traded were 3,920. The number of stocks that recorded a 52-week high was 304, and 27 hit a 52-week low.

Coal India Ltd (CIL) has signed a Memorandum of Understanding (MoU) with Haryana Power Purchase Centre (HPPC), which has expressed interest in purchasing 800 MW of power from ‘Mahanadi Basin Power Ltd’ (MBPL), a wholly-owned subsidiary of Mahanadi Coalfields Ltd (MCL). The MoU’s purpose is to formalise and define the basic framework of discussions of the power purchase agreement.

Coal India stock trades higher by 2.13% on the NSE, trading at ₹476.30.

EaseMyTrip.com has launched its first offline retail store in Indore, Madhya Pradesh. The Easy Trip Planners stock declined by 1.12 per cent on the NSE, and is trading at ₹48.75.

India’s exports increased 3.12 per cent on-year to $36.92 billion in January, according to data released by the government on Thursday. Imports rose by about 3 per cent year-on-year to $54.41 billion in January this year.

Trade deficit in January 2024 stood at $17.49 billion, an agency report said.

Oil India Ltd has said an incident occurred at well plinth NHK 162 at Western Asset Mine in Assam at around 3.05 pm on February 14, 2024 during bleeding of hydrotest water through 2” bleed line. An injured employee later died. 

The company’s stock trades at ₹561.25 on the NSE, higher by 12.53%.

Zinc futures (February contract) on the Multi Commodity Exchange (MCX) have been witnessing a sharp fall in price since the beginning of this month. It faced a barrier at ₹230 against which the downtrend began. Read more

Shiseido Company Ltd has launched its global make-up brand NARS Cosmetics (NARS) in India through a distribution partnership agreement with Global SS Beauty Brands Ltd, a subsidiary of Shoppers Stop Ltd.

The Shoppers Stop stock trades at ₹744.50 on the NSE, up by 0.78 per cent.

Happiest Minds Technologies Ltd has tied up with Soroco, an AI company, to bring intelligence to automation discovery, with process and task mining. Read more

Vibhor Steel Tubes IPO has been subscribed 196.24 times as of 1.30 pm on Feb 15, 2024. The QIB portion has been subscribed 45.56 times, NII 514.08 times, retail 146.94 times, and those reserved for employees 150.29 times. Issue closes today.

Sterlite Technologies has announced its partnership with BAPS Hindu temple in Abu Dhabi.

STL Tech stock surges by 4.10% on the NSE, trading at ₹138.25.

We reiterate BUY rating owing to strong order book and healthy margin profile, and value the standalone business at a P/E of 12x FY26E and HAM projects at 0.6x P/BV with a TP of Rs.1,120

MIC Electronics Limited has developed 42V/3A electric vehicle (EV) battery charger for e-cycles and two-wheelers. The EV battery chargers will be launched shortly, and commercial operations will begin in the month of March 2024. 

Stock jumps 8.26% on the NSE, trading at ₹41.95.

Visa Steel reported its net loss for the quarter ended Dec 2023 at ₹24.36 crore as against ₹41.17 crore loss in the corresponding quarter previous year.

Tembo Global Industries has informed the exchange about withdrawal of order for the civil contract by Kalpataru, which was delayed due to unforeseen circumstances.

Stock trades at ₹285.55 on the NSE, down by 1.30%.

ABB India is launching a new product today, viz; next generation compact drive, ACH180, for HVACR systems. 

Shares decline by 1.28% on the NSE, trading at ₹4,499.85.

Bharti Airtel has launched four new stores in the city of Cochin. The new stores have come up in Chalakkudy, Palachuvadu, Nurani & Olavakkode.

Bharti Airtel has also launched two new, next-gen Company owned stores in the city of Jabalpur in Near Sriram Marriage garden, Adhartal, & Gwarighat road, Tagore Nagar.

Stock trades at ₹1,122.30 on the NSE, up by 0.58%.

SecureKloud Technologies Ltd’s step-down subsidiary, Healthcare Triangle Inc launched new SaaS solutions aimed at driving digital transformation and AI integration in healthcare. The company said that its goal is to revolutionize patient care, diagnostics, and treatment outcomes on a global scale. Healthcare triangle also said that these solutions are designed to enhance accessibility, efficiency, and patient-centricity in healthcare operations, aligning with the shift towards digital solutions in the global healthcare sector.

Ester Industries board has approved the issuance of up to 1,05,60,250 equity shares of face value of ₹5 per share, at an issue price of ₹94.60 per equity share. The stock rose by 2.23 per cent on the NSE, trading at ₹91.55.

Vedanta shares have dropped 3 per cent at Rs 270. According to exchange details, about 8.2 crore shares or 2.2 per cent equity worth Rs 2,255 crore changed hands. Buyer unidentified. 

Major gainers: M&M (5.41%), BPCL (3.68%), ONGC (3.11%), Power Grid (3.03%), Coal India (2.17%) 

Major losers: Axis Bank (-1.99%), Britannia (-1.41%), Kotak (-1.28%), HCL Tech (-1.17%), Apollo Hospital (-1.17%)

A total of 2,390 stocks advanced on the BSE at 12 noon on Thursday, against 1,304 stocks that declined; 107 stocks remained unchanged. The total stocks traded were 3,801. While 264 stocks recorded a 52-week high, 24 hit a 52-week low. 

Glenmark Pharmaceuticals Ltd reported a consolidated revenue of ₹2.9 crore in the third quarter ending December 31, 2023, reflecting a 16 per cent year-on-year decline from ₹3.46 crore. The company attributed the dip to an impact on its domestic business. Read more

Lupin has launched Ganirelix Acetate Injection, 250 mcg/0.5 mL, single-dose pre-filled syringe, after receiving the USFDA’s approval. The stock trades at ₹1,599.95 on the NSE, down by 0.73 per cent. Read more

Bank Nifty opened today’s session slightly higher at 46,027, compared to yesterday’s close of 45,908. It is now trading at around 45,900, essentially flat for the day so far.

Interestingly, the advances/ declines ratio stands at 6/6, indicating a possible tug-of-war between the bulls and the bears.

Happiest Minds Technologies has announced partnership with Soroco, an AI company. 

Through this partnership with Soroco, Happiest Minds brings intelligence to automation discovery with process and task mining. 

Stock rose by 1.35% on the NSE to trade at ₹838.50

Star Health and Allied Insurance has received a Demand order from the Office of the Deputy Commissioner (ST)-II, Large Taxpayers Unit, Chennai-35 under Section 73 of the Central Goods and Services Tax Act, 2017 (“the Act”), February 14, 2024 alleging a total demand of ₹170,67,13,561/- and imposing penalty of ₹ 8,67,25,664/-. Stock trades at ₹555.25, up by 0.73% on the NSE.

PSP Projects’ (PSP) 3QFY24 PAT at INR 325mn (down 8% YoY) missed JMFe of INR 420mn (consensus: INR 419mn) due to lower margins. While revenue was ahead of expectations, EBITDA missed JMFe due to lower margin which was impacted by ECL provisions and UP project closure costs. As of Dec-23, PSP has o/s assets of INR 1.4bn pertaining to SDB project against which PSP has filed for claims of INR 5.4bn. PSP would prefer to settle it outside court with client (probably at a lower amount) or else will go for arbitration which may take more than a year to realize the claims. Board has approved equity fund raise of up to INR 3bn which could be exercised in case resolution in SDB takes time. Funds would be used to normalize NWC and fund growth. Meanwhile, gross debt has further increased from INR 4bn in Sept-23 to INR 4.8bn in Dec-23 due to rise in NWC. PSP has lowered its margin guidance from 11-13% to 11-12%. Accordingly, we have tweaked margin and debt assumptions which led to 10-11% earnings cut in FY25/26E. The coverage stands transferred to Vaibhav shah. We value PSP at 15x FY26E EPS to arrive at price target of INR 870. Maintain BUY.

Nifty 50 opened today’s session higher at 21,907 versus yesterday’s close of 21,840. It has now softened to 21,870, up 0.1 per cent for the day so far.

While the benchmark index looks marginally positive, the mid- and small-cap indices have advanced well. For instance, Midcap 50 and Smallcap 50 are up 0.7 and 1.3 per cent, respectively.

Kirloskar Oil Engines’ (KOEL) 3QFY24 quarterly number was broadly in line with JMFe. Revenue grew 13.5% YoY to INR 11.4bn, driven by growth across segment. EBITDA margins expanded 80bps YoY to 11.7% due to favourable revenue mix. Demand scenario continues to remain strong in domestic market driven by government focus on Infrastructure spend. Management reiterated its growth strategy of growing revenue by 2x in 3 years (targets revenue of INR 65bn in FY25) with double digit EBITDA margin. Margins are likely to be better than expectation driven by 1) expanding HHP market opportunity with launch of OptiPrime 2) growing aftermarket segment and 3) expanding reach in exports market. Introduction of CPCB-4 norms product is expected to increase the addressable market size in new export geographies (with stringent emission norm) and also drive aftermarket sales due to increasing complexity of products. We transfer coverage to Deepak Agarwal. We expect revenue and earnings CAGR of 20%/27% over FY23-26E. Maintain BUY with SOTP of INR 930 FY26, valuing standalone business at 20x FY26E.

Trident reported consol. EBITDA of INR2.6bn, lower than JMfe of 2.8bn primarily on account of higher input costs. Revenue from home–textile segment increased 5% QoQ while paper and chemicals segment increased 4.5% QoQ. Textile segment reported EBIT margins of 7.3% during the quarter vs 7% during 2Q while margins for the paper and chemicals segment remained flat QoQ to 24% vs 24.1% in 2Q. Consolidated EBITDA margins came in at 14.3% vs 2Q margin of 13.4% tracking lower other expense. Net debt increased by ~22% QoQ to INR14.6bn. W.r.t to its earlier announced capex plan a) company has operationalized ~95k spindles during 3Q out of total proposed addition of 193k spindles. Structural drivers of increased market share in the US, US ban on Xinjiang imports, duty reimbursement by GOI and market share gain on China+1 theme are likely to drive earnings going forward. Further, FTAs with UK/EU over time could likely increase the addressable market size, possibly leading to further re-rating. Maintain BUY

Vibhor Steel Tubes IPO has been subscribed 131.24 times as of 11 am on Feb 15, 2024. The QIB portion has been subscribed 8.67 times, NII 340.61 times, retail 111.93 times, and those reserved for employees 110.30 times. Issue closes today.

NMDC (13.84%), MRPL (13.52%), OIL (12.30%), RIIL (11.82%), KIOCL (10.13%)

Major losers:

Rajesh Exports (-7.96%), NH (-4.64%), Paytm (-4.35%), IFCI (-3.97%), ISGEC (-2.80%)

Mangalore Refinery and Petrochemicals (13.29%)

Oil India (12.68%)

BCL Industries (10.66%)

Chemfab Alkalis (10.17%)

Lumax Auto (9.73%)

Indian equity markets closed with healthy gains after opening in negative territory amid weak global cues as the higher-than-expected retail inflation in the U.S. dampened the optimism of rapid rate cuts by the U.S. Federal Reserve. The key benchmark indices witnessed a sharp recovery from the day’s low driven by fag end buying across the sectors as sentiments were improved following positive European markets along with lower-than-expected inflation data from the U.K. of Jan 2024.

Bond yields rose following the surge in U.S. Treasury yields after higher-than-expected U.S. inflation data dampened the expectation of an early rate cut by the U.S. Federal Reserve.

The yield on the 10-year benchmark paper (7.18% GS 2033) rose by 1 bps to close at 7.11% as compared to the previous close of 7.10%.

Mahindra & Mahindra (M&M) reported 3QFY24 EBITDA margin of 12.8% (-20bps YoY, +20bps QoQ), 40bps above JMFe. Domestic tractor industry is expected to decline by 10% / 5% during 4Q / FY24 owing to muted demand and inventory correction. Normal monsoon remains a key enabler for FY25. In the auto segment, supply constraints have largely eased. Gradual addition to SUV capacity (by 4QFY24), high outstanding bookings (226k+ units) and healthy new bookings’ rate are likely to drive sales growth. Higher operating leverage and benign commodity costs are expected to support the margin performance going ahead. Driven by strong demand tailwind in autos, we maintain BUY with a Mar’25 target price of INR 1,850 (SOTP valuation, 16x core business). Revival in tractor demand remains a key monitorable.

Ravindra Rao, Head - Commodity Research at Kotak Securities. 

“COMEX Gold prices declined for the fifth day in a row as hawkish comments from Fed officials amid the backdrop of upbeat economic data and hotter than anticipated inflation numbers improved the conviction that rates might stay higher for longer and the officials are not in a hurry to cut rates. Federal Reserve Vice Chair for Supervision Michael Barr said the US central bank needs to see more data indicating inflation is heading back to 2% before it begins lowering interest rates. According to CME Fedwatch tool, investors are now expecting only 37% odds of a quarter point Fed rate cut in May 2024 FOMC meeting. Today, US retail sales data, weekly jobless claims and industrial production data will be in focus along with speeches from Fed officials.

WTI Crude oil futures fell 1.6% on Wednesday after an unexpected crude stock buildup in US. The EIA inventory data released yesterday showed that stocks of crude oil in the US soared by 12.018 million barrels during the prior week, the most since early-November. US gasoline and distillate stocks fell more than expected by 3.7 million barrels and 1.9 million barrels, respectively, as refinery outages curtailed production. Meanwhile, heightened geo-political tensions in the middle east provided some cushion against prospects of higher rates in US. Investors might watch for IEA monthly report to be released later today.”

With the Indian economy growing at a faster rate than other economies, S&P Global has announced the launch of the ‘India Research Chapter’. It aims to provide India-oriented research and reports.

“We are creating a platform for continuous dialogue, insights, and analysis on the Indian market and the economy’s key trends and developments,” Abhishek Tomar, Head of the India Leadership Council (S&P Global and CRISIL) and Chief Data Officer, S&P Global Market Intelligence said. “Through the lens of S&P Global experts, we will enable our customers and the market to anticipate changes and capitalize on opportunities shaping India’s economic future,” he added.

With the latest tranche issued last month, 30 tranches of electoral bonds issued have collected over ₹16,500 crore, government data shows.

The scheme, introduced in 2018, aims “ to ensure clean tax-paid money is coming into the system of political funding through proper banking channels.” As per clause 10 of the Electoral Bond Scheme (Gazette Notification dated 02.01.2018), no commission, brokerage or any other charges for the issue of a bond shall be payable by the buyer against the purchase of the bond. Also, no GST or any other taxes/cess are charged to the purchaser on purchasing electoral bonds.

AIA Engineering has informed that Vega ME has further acquired additional 13% stake in VEGA MPS PTY LIMITED (VMPS), Australia at a total consideration of AUD 3,999,375. 

Vega ME has so far acquired 43% shares of VMPS.

Gujarat Ambuja Exports Limited has informed the exchange regarding commissioning 100TPD Sorbitol Unit at our existing unit in Hubli, Karnataka. The stock trades at ₹374 on the NSE, up by 1.29%.

PSP Projects is in receipt of work order worth ₹630.90 Crore for Construction of Gati Shakti Vishwavidhyalaya at Vadodara for Rail Vikas Nigam Limited in Government Category. The project is to be completed within a period of 30 months. 

PSP stock trades at ₹741.65 on the NSE, higher by 3.56%. Meanwhile, RVNL stock trades at ₹255.60 on the NSE, up by 2.71%.

Indian Institute of Technology Madras has partnered with Redington, a global technology solution provider, to establish the ‘R Srinivasan International Visiting Chair’ dedicated to advancing research in logistics and supply chain management, with a special emphasis on sustainable practices.

Major gainers:

Bank of Baroda (1.85%), Bank of India (1.84%), Union Bank (1.83%), PNB (1.34%), SBI (0.67%)

Oil India (8.61%), Aegis Logistics (8.56%), Hindustan Petroleum (4.30%), GSPL (3.38%)

Genus Power Infrastructures stock surges 5% on the NSE, trading at ₹277.40, after reporting its financial results for the quarter ended Dec 2023.

Anand James, Chief Market Strategist, Geojit Financial Services.

While charting a downside course yesterday, we had expressed our disclination to play an outright plunge. This hesitation kept options open for the surprising short covering rally that unfolded yesterday. Having closed above 21835 that had remained our upside marker this week so far, we may have got back onto the 22450-550 trajectory. Alternatively, if we fail to float above 22000 after an early burst, though we may not be keen to play downside unless below 21735.

Genesys International Corporation stock jumps 9.50% on the NSE, trading at ₹524.05, after the company reported its financial results for the period ended December 31, 2023.

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

“A significant feature of a bull market is its ability to bounce back from a steep fall. This was evident yesterday when Nifty bounced back by around 300 points from the lows. The heavy selling by FIIs,which was expected in response to the spike in US bond yields, didn’t impact the market since it was neutralised by DII and individual investor buying.

A significant feature of the market now is the change in leadership. Reliance has emerged as the leader of the rally and is supported by ICICI Bank and SBI. The strength of these fundamentally strong stocks augurs well for the bulls.

The valuation gap between large caps and the broader market continues to be an area of concern.”

Last date for Cum-Dividend Today

Saven Technologies Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 70.68

Aarti Pharmalabs Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 507.05

Akzo Nobel India Limited.

Dividend Per Share Rs.50

Previous day Closing Price – Rs. 2803.15

Alkem Laboratories Ltd

Dividend Per Share Rs.35

Previous day Closing Price – Rs. 5236.3

Bajaj Consumer Care Ltd

Dividend Per Share Rs.3

Previous day Closing Price – Rs. 213.95

Banco Products (India) Ltd.

Dividend Per Share Rs.20

Previous day Closing Price – Rs. 686.25

Beml Ltd.

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 3047.8

Computer Age Management Services Ltd

Dividend Per Share Rs.12

Previous day Closing Price – Rs. 2838.5

Dalmia Bharat Sugar And Industries Ltd

Dividend Per Share Rs.3.75

Previous day Closing Price – Rs. 394.95

Disa India Ltd.

Dividend Per Share Rs.100

Previous day Closing Price – Rs. 14965.05

Emami Ltd.

Dividend Per Share Rs.4

Previous day Closing Price – Rs. 464.8

Firstsource Solutions Ltd.

Dividend Per Share Rs.3.5

Previous day Closing Price – Rs. 199.4

IOL Chemicals & Pharmaceuticals Ltd.

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 406.25

Ircon International Ltd

Dividend Per Share Rs.1.8

Previous day Closing Price – Rs. 222.7

J.B.Chemicals & Pharmaceuticals Ltd.

Dividend Per Share Rs.5.5

Previous day Closing Price – Rs. 1675.75

Jk Paper Ltd.

Dividend Per Share Rs.3.5

Previous day Closing Price – Rs. 382.75

Jk Tyre & Industries Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 490.5

Manappuram Finance Ltd.

Dividend Per Share Rs.0.9

Previous day Closing Price – Rs. 182.45

NLC India Ltd

Dividend Per Share Rs.1.5

Previous day Closing Price – Rs. 236.5

Oil And Natural Gas Corporation Ltd

Dividend Per Share Rs.4

Previous day Closing Price – Rs. 268.9

Orient Cement Ltd

Dividend Per Share Rs.0.75

Previous day Closing Price – Rs. 256.85

Page Industries Ltd.

Dividend Per Share Rs.100

Previous day Closing Price – Rs. 36041.25

Shivalik Bimetal Controls Ltd.

Dividend Per Share Rs.0.7

Previous day Closing Price – Rs. 543.25

Siyaram Silk Mills Ltd.

Dividend Per Share Rs.3

Previous day Closing Price – Rs. 509.25

Sundaram Finance Ltd.

Dividend Per Share Rs.14

Previous day Closing Price – Rs. 3699.05

Torrent Power Ltd.

Dividend Per Share Rs.12

Previous day Closing Price – Rs. 1130.2

Triveni Turbine Ltd.

Special Dividend Per Share Rs.1

Dividend Per Share Rs.1.3

Previous day Closing Price – Rs. 437.8

Vidhi Specialty Food Ingredients Ltd.

Dividend Per Share Rs.0.6

Previous day Closing Price – Rs. 425.75

CMP : 2380| BUY | TP :2760 | Mkt cap : 5,823crs | 52W H/L : 2670/918

We maintain our BUY rating on Ethos, revising the target price to Rs.2760 (from Rs.2380) as we roll over to Q3FY26 while making a slight upgrade to earnings and adjust our target multiple.

Despite facing challenges in certain regions due to floods and store renovations, Ethos continues its impressive performance with average revenue growth of ~35% over the last eight quarters

The planned addition of more than ~20 new boutiques in the coming year indicates a sustained growth trajectory. With a dedicated and visionary promoter, a focus on introducing exclusive brands, and a commitment to delivering exceptional shopping experiences, Ethos is well-positioned for continued dominance and market share gains.

The re-rating is well-deserved, underscoring its consistent outperformance in a rapidly growing industry. Ethos looks ahead to sustained momentum with growth catalysts in Seconds, Jewellery, and Luggage segments.

Detailed Report -https://bit.ly/ETHOSQ3FY24MNCL

CLSA

U-P, TP Rs 1440

Tonnage growth remains muted but spreads improve a bit

Some improvement in NIM but further rise in cost of funds likely

MFI subsidiary is doing well on growth & improvement in profitability but is only c.10% of consol AUM

MS on Utilities

Forecast capex of >US$550bn in next decade, as India builds energy security & momentum in its energy transition.

Power demand is rising while supply-side constraints are becoming more complex

Prefer regulated utilities over IPPs.

Upgrade BHEL to EW, TP raised to Rs 220

NTPC – OW, TP Raised to Rs 390

Power Grid OW, TP Raised to Rs 296

Tata Power – UW, TP Raised to Rs 308

Torrent Power – UW, TP Raised to Rs 940

Buy, TP Rs 860

Earnings to gain pace in FY25 after opex blip

B/S remains pristine; RoA to improve to 1.2% byFY26E

Loan growth likely to sustain @13-14%

Liability franchise robust;CD ratio remains robust @66%

Wage provisioning nearly over

HSBC

Buy, TP Rs 1900

PV market share gains are likely to continue in FY25, with new launches & increased capacity

Tractor business may stabilise in FY25, after 2 years of muted performance, though monsoons are key for demand

Nomura

Buy, TP Rs 2143

3Q in line; strong earnings growth to continue driven by SUVs despite weakness in tractors

Quite optimistic about structural growth of SUVs & MM’s strong positioning

Believe MM’s SUV/EV model cycle is strong &will remain well ahead of Industry

MS

OW, TP Rs 1952

F3Q in-line at EBITDA level

Expect tractor business decline rate to trough out in March-24, strong UV momentum to support growth

Expect 13% YoY growth in FY25 (vs guidance of mid- to high-teens growth)

Jefferies

Hold, TP Rs 1615

3Q standalone EBITDA grew 15% YoY & 4% above JEFe.

EBIT margins contracted 50-80bp QoQ in farm & auto segments 

Tractor slowdown intensifying after an elongated upcycle

Stk not cheap @17x FY25E core biz PE

Major gainers on the NSE at 9.30 am:

M&M (3.30%), Power Grid (2.01%), BPCL (1.69%), NTPC (1.57%), UPL (1.25%)

Major losers:

Kotak Bank (-0.89%), Axis Bank (-0.88%), ICICI Bank (-0.66%), Nestle India (-0.53%), Hindustan Unilver (-0.46%)

Old private sector lender City Union Bank (CUB) has won seven awards in various categories in the recently concluded ‘19th Banking Technology Conference, Expo & Citations 2023’ by the Indian Banks Association (IBA) in Mumbai.

The awards aim at recognising the best technology providers in the banking industry and instill competition to demonstrate their state-of-the-art innovative products, and sense of purpose and bring huge value addition in Best Practices for serving the bank’s clientele, said a statement.

Tata Motors on Wednesday said its new Nexon (ICE) has got a 5-star rating (32.22/34 points) for adult occupant protection, and a 5-star rating (44.52/49 points) for child occupant protection from Global NCAP. 

Asian Paints has acquired 51% of the equity share capital of Harind Chemicals and Pharmaceuticals Private Limited from Aapex Power and Industries Private Limited for a consideration of ₹14.28 crore.

Indian benchmark indices, Sensex and Nifty, began Thursday on a positive note, bouncing back from a recent downturn in Asian and U.S. markets triggered by higher-than-expected U.S. inflation. The 30-share BSE Sensex rose by 189.88 points to 72,012.71 in early trading, while the NSE Nifty increased by 68.35 points to 21,908.40. Except for the FMCG index, all sectoral indices are trading in the green, with the Nifty Auto and IT indices leading the gains.

On Wednesday, both the Nifty 50 and BSE Sensex reversed early losses to finish with gains of approximately 0.5% each. Public sector banks and a continued post-results surge in energy stocks drove this uptick.

Foreign institutional investors offloaded Indian shares worth Rs 3,930 crore on a net basis on Wednesday, while domestic institutional investors purchased stocks worth Rs 2,898 crore.

Crude oil futures traded higher on Thursday as the official data showed a huge increase in the crude oil inventories in the US. At 9.08 am on Thursday, April Brent oil futures were at $81.25, down by 0.43 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $76.25, down by 0.51 per cent. February crude oil futures were trading at ₹6337 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6397, down by 0.94 per cent; and March futures were trading at ₹6330 as against the previous close of ₹6378, down by 0.75 per cent.

PSU steel major SAIL has initiated the process of carrying out ₹100,000-crore expansion and modernisation plan to raise capacity to 35 million tonnes per annum by 2030-31.

The steel maker’s current capacity (crude steel) stands at around 20 mtpa and capacity utilisation is at 95 per cent.

The board has already approved a greenfield expansion plan for IISCO Steel Plant in West Bengal to hike capacity to 4 mtpa.

Expecting to cash in on the expanding demand for premium non-basmati varieties, some of them priced above basmati rice, the popular Basmati brand “India Gate” has decided to focus on some of these varieties under the branded category after realising their sales potential. As the sales revenue from the non-basmati segment is likely to reach ₹200 crore this fiscal, KRBL, the owner of India Gate, will likely commission two processing units, one in Kandla (Gujarat) and another in Karnataka, mainly for its expansion plan in non-basmati rice.

Canara Bank has mopped up Rs 2,000 crore through issue of Additional Tier (AT)-1 Bonds at a coupon rate of 8.40 per cent.

The total issue size of the non-convertible, taxable, perpetual, subordinated, fully paid-up, unsecured Basel-III compliant AT 1 Bonds of face value Rs 1 crore each was up to Rs 2,000 crore, including a base issue size of Rs 500 crore.

The issue opened and closed on February 12. The date of allotment was February 14.

Silver price rebounds on short covering causes after pressure was observed amid dwindling expectations that the Federal Reserve would cut interest rates anytime soon. According to Labour Department data, the United States’ consumer price growth slowed to 3.1% in January from 3.4% in December. Expectations were for inflation to drop to 2.9%. The report reaffirmed the Federal Reserve’s position that before changing policy, officials should obtain additional information, particularly data pertaining to inflation.

Investors await reports on weekly jobless claims, retail sales, industrial production and import and export prices, due on Thursday.

Gold prices stayed below the crucial $2,000 mark as investors withdrew their bets on early Federal Reserve interest rate cuts in response to hotter-than-expected U.S. inflation data. According to data, U.S. consumer prices increased 3.1% annually in January, which was higher than the 2.9% increase that economists predicted in a Reuters poll. Instead of four rate cuts in 2024, traders now anticipate three, in accordance with the Fed’s “dot plot” that was made public in December. The US Federal Reserve may hold off on lowering interest rates until June.

Asian stocks rose on Thursday, with the Nikkei breaching a new 34-year peak, while the dollar took a breather near a three-month high as markets assess when the Federal Reserve is likely to start its easing cycle after a run of strong economic data.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7%, with the IT index surging more than 2%. Taiwan stocks spiked 2.6% higher, with chipmaker TSMC up nearly 8%.

Hong Kong’s Hang Seng Index eased 0.67% in early trading. China’s markets are closed for the week due to the Lunar New Year holidays - Reuters

Dilip Buildcon (DBL) Q3FY24 (standalone) operational numbers (EBITDA) came in-line with our and consensus estimate. PAT was boosted by one off gains. After weak Q1-FY24, DBL has reported revenue increase of 7 to 8 per cent y-o-y and we expect it to close FY24E with revenue increase of 5 per cent y-o-y.

Debt has been reducing, which is positive but need to watch for debt level as DBL aim to have asset ownership business in long term. 

In Q3-FY24, Multi Commodity Exchange of India (MCX) delivered revenue growth of 33.4 per cent on a YoY basis on the back of improving ADT of Options contracts, which increased by 143.6 per cent on a y-o-y basis. MCX has finally transitioned to a new platform from 16th Oct 2023.

However, operating margins were adversely affected during the quarter due to two factors. Firstly, MCX extended its software contract with 63 Moons until December 2023 at ₹125 crore per quarter. 

Sugar prices in 2024 will likely be lower than last year with prices currently ruling at a three-week low but they will stay elevated than normal. Month-on-month prices are up 2 per cent but the commodity has come under pressure on prospects of a rise in production. 

The Trading Economics website said prices have declined now on expectations of robust supply from Brazil, world’s top exporter, offsetting worries of shortage in Asia, particularly India and Thailand. 

Gold prices fell by ₹804 per 10 grams in the spot market to ₹61,590 as the US inflation rate remained higher than expected and this in turn might delay the much-expected US Fed interest cut programme this year. The market expected the first US Fed rate reduction to come by May before the country goes for election in November.

The yellow metal for April delivery on MCX was down by ₹149 per 10 grams at ₹61,355 while the June contract fell by ₹140 to ₹61,717 on Wednesday.

11:00 AM CG Consumer

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11:00 AM Natco

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11:00 AM Arihant Super

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11:00 AM Suprajit Eng

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11:00 AM Gujarat Gas

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11:30 AM Capacite Infra

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12:00 PM Tarsons Product

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12:00 PM Eureka Forbes

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12:00 PM Creative Newtech

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12:00 PM KRBL

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12:00 PM Valiant Organic

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1:30 PM Sequent Scientific

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2:00 PM Genus Power

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2:00 PM DCW

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2:30 PM Ester Ind

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2:30 PM Techno Electric

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3:00 PM Deepak Nitrite

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3:30 PM NBCC (India)

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3:30 PM Dishman Carboge

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3:30 PM Aditya Birla F

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3:30 PM Ipca Labs

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4:00 PM IG Petro

No Contact Available

4:00 PM Esconet Techno

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4:00 PM Abans Holdings

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4:00 PM Ganesh Benzo

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4:00 PM AXISCADES

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5:00 PM R Systems Intl

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Vibhor Steel Tubes issue closes today for public subscription. The IPO has attracted an overwhelming response from all categories of investors thus far, as issue was subscribed 101.30 times at the end of Day 2 (Wednesday).

The ₹72.17-crore initial public offering of Vibhor Steel Tubes that opened on Tuesday received bids for 36.39 crore shares against 35.92 lakh shares on offer (net-off anchor position).

The steel pipes and tubes manufacturer has set the price band at ₹141-151, and the market lot is 99 shares.

Buzzing Stocks: Canara Bank, Wockhardt, Paytm, Hindustan Unilever, Utkarsh SFB, Piramal Enterprises, Anand Projects

📌 Market Levels

BSE Sensex: 71822.83 (+267.64)

Nifty 50: 21840.05 (+96.80)

NIFTY MID CAP 100: 48331.90 (+496.25)

NIFTY SMALL CAP 100: 15896.05 (+252.30)

📌 Index PE & PBV

SENSEX PE / PBV : 24.54 / 3.64

NIFTY 50 PE / PBV : 

22.59 / 3.83

NIFTY MIDCAP 100 PE / PBV : 25.10 / 3.87

NIFTY SMALLCAP 100 PE / PBV : 28.85 / 3.92

📌 Inflow/Outflow*the *(Daily/MTD) 

FII / FPI Activity: (3929.60 crs) / (11107.02 Crs)

DII Activity: 2897.98 crs / 13545.08 crs

📌 Volatility Index

India VIX - 15.43

📌 Commodities

Brent Crude: $83.08

Gold USD Oz/10 gm: $1990.36 = INR 61372

Silver: INR 69429

📌 Currency

Rs/$: 83.03

US Dollar Index (DXY) - 104.84

📌 10 Year Yield

7.26% GOI 2033: 7.14% (Old)

7.18% GOI 2033: 7.11% (New)

US 10 Yr Yield - 4.31%

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

Here’s an interesting stock idea