Share Market Highlights 16 February 2024: Nifty closes above 22,000 mark, extends gains for fourth straight session

Equity benchmark indices marched higher for the fourth straight session on Friday, with Nifty closing above the 22,000 level, tracking gains in index majors L&T, Infosys and M&M, amid a firm trend in the global markets.

The 30-share BSE Sensex surged 376.26 points or 0.52 per cent to close at 72,426.64. The index touched a high of 72,545.33 and a low of 72,218.10 during intraday trade.

The broader NSE Nifty also climbed 129.95 points or 0.59 per cent to end at points 22,040.70.

Lupin Limited’s shares were up by 1.37 per cent after the company received approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application for Minzoya (Levonorgestrel and Ethinyl Estradiol Tablets, USP and Ferrous Bisglycinate Tablets), 0.1 mg/0.02 mg and 36.5 mg.

This approval, allows Lupin to market a generic equivalent of Balcoltra (Levonorgestrel and Ethinyl Estradiol Tablets, USP and Ferrous Bisglycinate Tablets) 0.1 mg/0.02 mg and 36.5 mg, which is manufactured by Avion Pharmaceuticals LLC. The generic product will be manufactured at Lupin’s Pithampur facility in India.

JSW Steel Ltd.’s shares went up 1.23 per cent after the company reported its expansion plans. The Chief Minister of Odisha, Naveen Patnaik, laid the foundation for JSW Steel’s Mega Integrated Green Steel Manufacturing Complex in Paradip, Odisha. 

This project, proposed to be executed in multiple phases, entails an investment of approximately ₹65,000 crore by JSW Steel & JSW Group entities and is expected to generate around 30,000 direct and indirect jobs.

The rupee rose four paise to settle at 83.01 (provisional) against the US dollar on Friday, amid positive sentiment in the domestic equity markets and softening crude oil prices.

Forex traders said a strong American currency and outflow of foreign funds, however, capped a sharp gain in the domestic currency.

At the interbank foreign exchange market, the local unit opened at ₹83.03 and touched the intraday high of ₹83.00 against the greenback.

IRCTC announces commencement of commercial production at Rail Neer Plant in Vishakhapatnam, with a daily capacity of 72,000 litres.

NLC India Limited inaugurates its 300 MW Solar Power Project in Barsingsar, Rajasthan, with Prime Minister Narendra Modi via video conference.

Ddev Plastiks Industries partners with Amplus Solar, adding 1 MW solar panels, boosting total capacity to 7.7 MW, saving 37600MT carbon emissions annually.

ACC Ltd has been granted approval by the Regional Director (Western Region), Ministry of Corporate Affairs, Mumbai, for relocating the company’s registered office from Maharashtra to Gujarat. 

Following this news, ACC stock surged by 3.21% on the NSE, trading at ₹2,722.30.

Major gainers: Wipro (4.80%), M&M (4.14%), SBI Life (3.67%), Adani Ports (3.15%), Maruti (2.92%)

Major losers: Power Grid (-1.95%), Britannia (-0.84%), Reliance (-0.75%), SBI (-0.72%), Apollo Hospitals (-0.54%)

A total of 2,248 stocks advanced on the BSE at 3 pm on Friday, against 1,565 stocks that declined; 89 stocks remained unchanged. A total of 3,902 stocks were traded. While 312 stocks recorded a 52-week high, 13 hit a 52-week low.

Dhunseri Ventures has infused $2 million in DVL USA INC., amounting to a total investment of $5.765 million, of which $5 million is through direct investment in DVL USA INC and $0.765 million through a share purchase agreement. The Dhunseri Ventures stock has fallen 3.49% on the NSE, trading at ₹392.15.

Zydus Lifesciences has received final approval from the USFDA for Isosorbide Mononitrate Extended-Release tablets USP, 30 mg, 60 mg, and 120 mg. The stock rose by 1.26% on the NSE, trading at ₹890.05.

Marine Electricals (India) Ltd has received multiple orders worth ₹104.25 crore. It has received an order from TATA Projects Ltd for LT Panel (Sub Panel, PCC Panel and Hookup Panel) for Micron Technology (Project Pioneer), Sanand. Delivery will be over a period of 6 months. 

It has also received an order from Fleet Maintenance Unit (FMU), Visakhapatnam for AIAMC. Delivery will be over a period of 24 months. 

The Marine Electricals stock has surged 5 per cent on the NSE, and is trading at ₹104.

Surya Roshni has received a ₹52.13-crore order from Indian Oil Corporation Ltd for supply of ERW API coated pipes. The Surya Roshni stock trades at ₹648.20 on the NSE, up by 0.97%. The Indian Oil Corp stock falls 1.19% on the NSE, trading at ₹187.60.

An increase in the export of soyabean meal helped India register 1 per cent growth in total oilmeal exports during January. Data compiled by the Solvent Extractors’ Association of India (SEA) showed that India exported 4.77 lakh tonnes (lt) of oilmeals in January 2024, against 4.72 lt in January 2023. Read more

Shalby Ltd’s wholly‐owned subsidiary Mars Medical Devices Ltd (MMDL) has received a consultative letter from the office of the Commissioner of Customs (Audit) for short payment of customs duty. The Shalby stock trades at ₹300.85 on the NSE, up by 0.97%.

YES Bank shares were down marginally at ₹29, after Carlyle Group sold shares of the bank through the open market. Yes Bank shares gained 1.7 per cent to ₹29.5 per share on February 15 after Carlyle Group sold a 1.35 per cent stake worth ₹1,056 crore at an average price of ₹27.1 apiece through an open market transaction.

YES Bank stocks have surged 13 per cent in the last one month, as against a 1 per cent decline in the benchmark Sensex.

According to bulk deal data, the US-based group through its affiliate CA Basque Investments sold 39 crore shares in YES Bank. CA Basque Investments is a special purpose vehicle owned by CA Marans Investments and managed by affiliates of The Carlyle Group.

Oberoi Realty entered into an agreement with Marriott International. The agreement marks the development of two Marriott properties: JW Marriott Hotel Thane Garden City and Mumbai Marriott Hotel Sky City in Borivali, both set for completion in 2027-2028.

Oberoi Realty stock trades at ₹1,321.30 on the NSE, up by 0.92%.

YES Bank shares were down marginally at Rs 29 after Carlyle Group sold shares of the bank through open market.

Shares of Yes Bank gained 1.7 percent to Rs 29.5 per share on February 15 after Carlyle Group sold a 1.35 percent stake worth Rs 1,056 crore at an average price of Rs 27.1 apiece through the open market transaction.

Yes Bank stocks have surged 13 per cent in the last one month, as against 1 per cent decline in the benchmark Sensex.

According to bulk deal data, the US-based group through its affiliate CA Basque Investments sold 39 crore shares in YES Bank. CA Basque Investments is a special purpose vehicle, owned by CA Marans Investments and managed by affiliates of The Carlyle Group.

Karnataka government will establish 43 Cyber Economic and Narcotics(CEN) police stations to take active action against harm caused by Deep fakes and other cyber crimes

Nifty Auto rose by 2.44% trading at 19,981.70. 

Major gainers of nifty auto stocks include: M&M (4.23%), Bajaj Auto (3.36%), TVS Motors (3.23%), Maruti (3.02%)

Natco Pharma (16.79%)

Glenmark (8.84%)

IPCA Lab (7.64%)

Gland Pharma (7.01%)

Biocon (5.30%)

Major gainers of Nifty pharma stocks:

Natco Pharma (16.79%)

Glenmark (8.84%)

IPCA Lab (7.64%)

Gland Pharma (7.01%)

Biocon (5.30%)

Adani Wilmar Ltd informed that the High Court Division of the Supreme Court of Bangladesh has granted approval to the scheme of amalgamation of a wholly owned step-down subsidiary of Adani Wilmar Limited, Shun Shing Edible Oil Limited, Bangladesh (SSEOL) with its holding company, Bangladesh Edible Oil Limited, Bangladesh (BEOL). Accordingly, the entire undertaking of SSEOL as a going concern together with all its assets and liabilities will be transferred and vested in BEOL. 

AWL stock surges by 4.01% on the NSE, trading at ₹350.55.

Lupin Limited has received approval from USFDA for its Abbreviated New Drug Application for MinzoyaTM (Levonorgestrel and Ethinyl Estradiol Tablets. The product will be manufactured at Lupin’s Pithampur facility in India. 

Lupin stock is up by 1.74% on the NSE, trading at ₹1,633.

Key takeaways: Merchandise trade deficit in January 2024 narrowed to its lowest levels this financial year amid sharp sequential decline in non-oil non-gold imports. Services exports at USD 32.8bn in January 2024 were highest on record, sustaining a healthy pace to keep overall net exports and thus providing further potential downside to current account deficit estimates for FY24E. We revise FY24E CAD estimates to 1.1% from 1.3% earlier. We see USDINR trading in the range of 82.9-83.1 for the rest of FY24E and FY25E USDINR averaging 81.5. 

Trade deficit moderates led by sharp fall in non-oil non gold imports

India’s merchandise trade deficit narrowed to USD 17.5bn in January 2024 from USD 19.8bn in December 2023 amid sharp sequential decline in non-oil non gold imports. YoY, merchandise exports increased by ~3.13% YoY to ~USD 36.92bn in January from ~0.97% YoY growth in December. Imports for January were USD 54.4bn, up 2.99% YoY versus a 4.85% YoY drop in December.

TeamLease Services has received a revised approval letter from National Stock Exchange of India Limited (NSE), against application submitted for reclassification of shareholding of Aarti Menon from “Promoter Group” Category to “Public” Category. 

Teamlease Services stock trades at ₹3,176.05 on the NSE, up by 1%.

Aurobindo Pharma informed that the USFDA has concluded inspection at the manufacturing unit of Auro Peptides Ltd, the synthetic peptides API business arm of the company, situated at Indrakaran Village, Kandi Mandal, Sangareddy District, Telangana, with zero observations.

Aurobindo Pharma stock rises by 1.78% on the NSE, trading at ₹1,035.30.

In a bid to strengthen the startup ecosystem in state, the Karnataka government will promote and support innovative initiatives under Rajiv Gandhi Entrepreneurship Program. Government will also take initiative to support women entrepreneurs in the ecosystem. With an aim to promote agri startups, five acres of land will be provided to C-Camp Agri innovation park.

ITCONS E-Solutions Limited has entered into a service agreement with Wipro Limited for providing Oncall Support Services for PAN India. 

ITCONS stock jumps 7.66% on the BSE, trading at ₹43.55. 

Wipro stock rose by 1.73% on the NSE, trading at ₹527.45.

The Karnataka government will issue a new industrial policy in a bid to attract increased investments and ensure development and retention of Karnataka’s progress in the sector: CM Siddaramaiah

All sectoral indices trade in the green except Nifty Oil & Gas. Nifty Auto trades higher by 2.50% at 20,480.80; Nifty Pharma up by 1.86% trading at 18,913.45; and Nifty PSU Bank up by 1.53%, trading at 7,270.45

Bondada Engineering has received a contract from Sundrops Energia Pvt Ltd, worth over ₹20 crore. The stock has surged 4.66% on the BSE, trading at ₹845.

DroneAcharya Aerial Innovations Ltd has entered into a memorandum of understanding with JAIN (deemed-to-be university), Bengaluru, aimed at advancing aviation and aerospace education. The DroneAcharya Aerial Innovations stock trades at ₹177 on the BSE, down by 0.53%.

Natco Pharma (13.84%)

Coffee Day Enterprises (7.27%)

Jindal Stainless (6.67%)

Force Motors (4.97%)

M&M (4.58%)

ABB India stock trades higher by 1.37% at ₹4,530 on the NSE, following the launch of its compact drive, ACH180, for HVACR (heating, ventilation, air conditioning and refrigeration) equipment.

Major gainers: M&M (4.40%), Bajaj Auto (3.42%), Maruti (3.05%), Adani Ports (2.52%), Tata Motors (2.18%)

Major losers: Power Grid (-1.69%), Axis Bank (-0.86%), Apollo Hospitals (-0.83%), Britannia (-0.59%), Reliance (-0.32%)

Odisha Chief Minister Naveen Patnaik has laid the foundation stone for the greenfield integrated steel manufacturing complex of JSW Steel at Paradip in Odisha. The JSW Steel stock rose by 1.16% on the NSE, trading at ₹821.80.

GAIL (India) has informed that Rameshwar Teli, Minister of State for Petroleum and Natural Gas & Labour and Employment , has performed ground breaking ceremony of a Community Kitchen Cum Dining Hall to be constructed under CSR initiative of Maharatna PSU GAIL (India) Limited. 

Gail stock trades at ₹183.85 on the NSE, dowb by 0.22%.

For FY2024-25, Karnataka govt allocates Rs28608 crore for disbursement under Gruha Lakshmi scheme, under which one of the five guarantees of Rs 2000 per month was given to women

Zerodha Fund House today announced the launch of its new scheme ‘Zerodha Gold ETF’, an open-ended, simple and low-cost ETF to take exposure to gold in one’s investment portfolio. The scheme opens for public subscription on February 16, 2024, and will close on February 21, 2024. 

The fund is expected to be listed on NSE and BSE exchanges by 1st March, 2024.

Bank Nifty opened today’s session higher at 46,454, compared to yesterday’s close of 46,219. It is now at 46,450, up 0.5 per cent.

The advances/ declines ratio of the index stands at 10/2, which implies positive sentiment. Federal Bank, up 4.2 per cent, is the top gainer, whereas Axis Bank, down 0.1 per cent, is the top loser.

Wealthmills Securities

Softer than expected retail sales print in the US has fuelled bets of dovish outlook by Fed. As per the CME Fed watch tool, odds of rate cut in May’24 jumped up to 40%, for Jun’24 they were around 80%. On the other hand, fall in weekly jobless claims signalled strength in labour market. Investors will await PPI report for more cues. Separately, after Japan, now the UK’s economy has slipped in to technical recession. The economy shrank by 0.3% for Q4CY23 on a quarterly basis compared with contraction of (-) 0.1% in the Q3CY23. This was led by broad based decline across the sectors, services (-0.2%), production (-1%) and construction (-1.3%). Furthermore, weakness in labour market and persistently high inflation added to the contraction. However, analyst expect the recession will be short lived with recovery expected in CY24, with inflation likely to moderate.

Global indices closed higher. US indices ended in green as hopes of a possible rate cut by Fed resurfaced after disappointing retail sales data (-0.8% from +0.4% in Dec’23). Nikkei surged by 1.2% and is on course to record an all-time high. Sensex (0.3%) continued to advance supported by gains in oil & gas and power stocks. It is trading higher today, in line with other Asian stocks.

The Nifty 50 began today’s session with a gap-up at 22,020, as against yesterday’s close of 21,911. The index is now hovering around 22,025, up 0.5 per cent.

The advances/ declines ratio is at 43/7, showing a strong positive bias. All mid- and small-cap indices, too, are in the green. Also, barring Nifty FMCG, down 0.1 per cent, all the other sectors have advanced. This indicates a broad-based buying.

Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) have signed the first supply agreement on components of Volkswagen´s MEB for Mahindra’s purpose-built electric platform INGLO. The deal covers the supply of certain electric components as well as unified cells. 

M&M stock trades at ₹1,804.80 on the NSE, higher by 2.25%.

Major gainers on the BSE at 11 am:

Confidence Petroleum (14.40%), RAIN (13.74%), Natco Pharma (11.92%), Wock Pharma (11.54%), DishTV (10.40%)

Major losers:

Gujarat Gas (-4.92%), MMTC (-4.45%), SJVN (-3.80%), Reliance Infra (-3.22%)

Glenmark Pharmaceuticals’ India business will be back on track in the next quarter, said Glenn Saldanha, Chairman and Managing Director, following the impact from a one-time restructuring to set right “inefficiencies” in the distribution channel.

The inefficiencies have existed since inception, and the correction will help working capital, Saldanha said, adding that in Q4 (the last quarter of the financial year), the India business would be “back on track”, trending at about Rs 1,000 crore.

Corporate earnings – domestic cyclicals propel growth: The 3QFY24 corporate earnings ended on a strong note, with widespread outperformance across aggregates driven by continued margin tailwinds. Domestic cyclicals such as Autos and Financials, along with global cyclicals (i.e., Metals and O&G) drove the beat. Technology posted a marginal decline in earnings, its first in 26 quarters.

- Financials and Autos drive 3QFY24 earnings: The aggregate earnings of the MOFSL Universe companies exceeded our expectations and rose 29% YoY (vs. our est. of +19%). Earnings for the Nifty-50 jumped 17% YoY (vs. our est. of +11%). The earnings growth for the MOFSL Universe was fueled by domestic cyclicals (such as BFSI and Autos), as well as healthy gains from global cyclicals (i.e., Metals and O&G). BFSI clocked a 22% YoY growth (vs. est. of +17%), while Autos registered a significant growth of 60% YoY (vs. est. of +34%). Metals earnings jumped 74% YoY (vs. est. of +25%) over a weak base of 3QFY23, led by TATA Steel, JSW Steel, and Coal India. OMC’s profitability surged 4.6x to INR120b in 3QFY24 from INR26b in 3QFY23, due to strong marketing margins.

- Heavyweights on the march: Nifty delivered a strong beat with a 17% YoY PAT growth (vs. est. of +11%). Five Nifty companies – Tata Motors, HDFC Bank, Tata Steel, ICICI Bank, and JSW Steel – contributed 56% of the incremental YoY accretion in earnings. Ex-OMCs, Nifty’s earnings grew 17% YoY (vs. est. of +10%). Ex-Metals & O&G, Nifty’s earnings were up 15% YoY (vs. est. of +10%).

- The beat-miss dynamics: The beat-miss ratio for the MOFSL Universe was unfavorable, with 38% of the companies missing our estimates, while 33% reported a beat at the PAT level. For the MOFSL Universe, however, the earnings upgrade-to-downgrade ratio has turned weaker for FY25E as 58 companies’ earnings have been upgraded by >3%, while 84 companies’ earnings have been downgraded by >3%. The earnings upgrade/downgrade ratio of 0.6x was the worst since 3QFY22. EBITDA margin for the MOFSL Universe (ex-Financials) rose 210bp YoY to 16.6%.

- Report card: Of the 23 sectors under our coverage, 6/10/7 sectors reported profits above/in line/below our estimates. Of the 252 companies under our coverage, 82 exceeded our profit estimates, 95 posted a miss, and 75 were in line.

- The 9MFY24 snapshot: The MOFSL/Nifty Universes delivered 41%/26% YoY earnings growth in 9MFY24. Excluding OMCs, MOFSL/Nifty reported 24%/19% YoY earnings growth. For 4QFY24, we expect MOFSL/Nifty earnings to report a growth of 4%/5% YoY.

- FY24E earnings highlights: The MOFSL Universe is likely to deliver sales/EBITDA/ PAT growth of 5%/21%/32% YoY in FY24. The Autos, O&G, and Banks (Private/PSU) are projected to be the key growth drivers with 91%, 73% and 28% YoY earnings growth, respectively. They are likely to contribute 64% of the earnings growth.

- Nifty EPS stable: Our EPS estimates for FY24/FY25 have remained unchanged at INR975/INR1,142 (vs. INR976/INR1,142). We now expect the Nifty EPS to grow ~21%/17% YoY in FY24/FY25.

Adani Ports and Special Economic Zone stock had hit a 52-week high at ₹1,294. Thhe stock currently trades at ₹1,284.70, higher by 1.39%.

Karnataka CM Siddaramaiah kickstarts his budget speech, declares total outlay to be Rs3.71 lakh crore, estimates state economy to grow at 6.6 per cent in 2023-24

Happy Forgings Limited (HFL) has received a order from a leading automobile manufacturer of passenger vehicles for manufacturing and supply of fully machined components for the SUV segment. The total size of the order is worth ₹60-70 crore p.a. and ₹400 crore for a period of 6 years starting from April 1, 2024. 

Happy Forgings stock trades at ₹972 on the NSE, up by 0.73%.

Entero Healthcare Solutions Ltd.’s initial public offering (IPO) witnessed a negative debut, listing at Rs 1,228 per share, a 2.33% decline from its issue price of Rs 1258. This underwhelming performance fell short of pre-listing expectations and highlighted certain concerns surrounding the company’s financial health.

Entero has incurred losses in the past three fiscal years, raising concerns about its financial sustainability and profitability. It also faces challenges with negative cash flows from all three major activities, impacting working capital requirements.

While Entero possesses certain strengths, its financial situation calls for a cautious approach, and this stock is best avoided by new investors. Even investors who got allotments through IPO are advised to exit their holdings.

CMP : 395| BUY | TP :475| Mkt cap : 45.3bn| 52W H/L : 411/250

We maintain a positive stance on Borosil Ltd, setting a target of Rs. 475 for the consumer business (post demerger) as we roll over our earnings estimate to Q3FY26E.

The company has exhibited exceptionally robust performance over the last 9 months, surpassing leading consumer companies in the country with a growth of 26% YoY.

We anticipate continued buoyancy in the Opalware facility and expect the commissioning of the new glassware facility, which will lower overall production costs and broaden the product offerings.

With the demerger completed and the growing demand for glassware in the country, we believe the growth opportunities remain extremely promising, supported by one of the most recognizable brands in the country

Detailed Report -https://bit.ly/BOROSILQ3FY24MNCL

Coal India stock trades at ₹481.15 on the NSE, up by 0.90%. The company had signed a memorandum of understanding (MoU) with Haryana Power Purchase Centre (HPPC) which expressed its interest to purchase 800 MW of power from ‘Mahanadi Basin Power Ltd’ (MBPL) a wholly owned subsidiary of Mahanadi Coalfields Limited (MCL).

Tejas Networks stock falls 2.04% on the NSE, trading at ₹723.45. The company had received ₹27.78 crore as incentives for the fiscal year 2022-’23 under the PLI (Production-Linked Incentive) Scheme for Telecom and Networking Products.

Magellanic Cloud (MCloud) has registered a net profit of ₹22.56 crore in the third quarter ended December 31, 2023, as against ₹17.35 crore in the same quarter last year, showing a growth of 30 per cent.

During the quarter, the company reported revenue from operations of ₹131.37 crore, as against ₹132.76 crore in the comparable quarter last year. Expenses narrowed to ₹80.57 crore (₹99 crore) in the same period.

TCS Motor (3.68%), Bajaj Auto (2.98%), Tata Motors (2.63%), Maruti (2.32%)

Elgi Equipments Ltd has signed a technical licensing agreement with D.V.P. Vacuum Technology S.P.A., Italy, to acquire from DVP the know-how, technical information and assistance to assemble, manufacture and sell the “Vacuum Products” in India, and outside India at relevant time with consent of DVP. 

Elgi Equipments stock trades at ₹651.05 on the BSE, up by 0.35%.

The rupee rose 4 paise to 83.01 against the US dollar in early trade on Friday, tracking positive cues from the domestic equity markets.

Forex traders said a strong American currency and elevated crude oil prices, however, weighed on the local unit.

At the interbank foreign exchange, the domestic currency opened at 83.03 and inched up to 83.01 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

Paytm stock trades at ₹324.50 on the NSE, down by 0.17%. The stock had hit a fresh 52-week low at ₹318.05 today.

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

“The market has been range bound in recent days due to bouts of selling and buying. During the last 2 days, FIIs sold equity worth Rs 6993 crores in the cash market while DIIs bought equity worth Rs 5173 crores. The trend of FII selling is likely to continue since the 10-year US bond yield is high at 4.24%. The trend of DII buying too is likely to continue since the flows into the DIIs continue to be robust.

The global market construct continues to be favourable with the mother market US remaining resilient with S&P 500 at record highs.

Pockets of overvaluation in the broader market continue to be a worry. Banking stocks are fairly valued. RIL is strong.”

Anand James, Chief Market Strategist, Geojit Financial Services, on Nifty outllook

Yesterday’s doji stands in the way of a smooth passage enroute 22450-550 objectives. This raises the prospects of rejection trades near 22100, which is a fair possibility. However, we will persist with the “buy on dips” approach, until below 21785

RattanIndia Enterprise Ltd (REL)‘s subsidiary Neosky India limited has launched drone training program, in association with ‘Narayana Health’, for school children in Bangalore, Karnataka. 

RattanIndia stock rose 3.56% on the NSE, trading at ₹87.25.

Major gainers on the NSE at 9.30 am:

M&M (6.81%), Power Grid (4.57%), BPCL (4.38%), NTPC (3.92%), ONGC (2.83%)

Major losers:

Axis Bank (-2.01%), Apollo Hospitals (-1.84%), ITC (-1.65%), Britannia (-1.31%), Hindustan Unilever (-1.30%)

Crude oil futures traded marginally lower on Friday morning as the oil market report by IEA (International Energy Agency) indicated decline in global oil demand during 2024. At 9.15 am on Friday, April Brent oil futures were at $82.78, down by 0.10 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $78.08, up by 0.06 per cent. February crude oil futures were trading at ₹6488 on Multi Commodity Exchange (MCX) in the initial trading hour of Friday morning against the previous close of ₹6483, up by 0.08 per cent; and March futures were trading at ₹6454 as against the previous close of ₹6458, down by 0.06 per cent.

JTKET India has received a Show Cause Notice from the Office of the Department of Trade and Taxes Government of NCT of Delhi, Sales tax/ AVATO Jurisdiction Ward-2, Zone-2 Delhi.

16th February: SCHAEFFLER to consider Dividend; Sreechem Resins, Silgo Retail to consider Fund Raising; Bodhi Tree Multimedia to consider Stock Split

19th February: CIEINDIA, JWL to consider Dividend;

20th February: ABB, ELANTAS to consider Dividend;

21st February: The South Indian Bank to consider Fund Raising

23rd February: FOSECOIND, SANOFI to consider Dividend;

26th February: Canara Bank to consider Stock Split; Omkar Overseas to consider Scheme of Arrangement; Sprayking Agro Equipment to consider Stock Split

27th February: Remsons Industries to consider Stock Split

28th February: Balaxi Pharmaceuticals to consider Stock Split

To Read More: http://tinyurl.com/mrxb2cpd

DERIVATIVE SNAPSHOT

Nifty Feb. cl @22005.05(+88.2)

Prem : +94.3 v/s +76.8

Nifty Jan. OI (-3.67 lac shares)

PCR decreased to 1.04 from 1.23

Option statistics:

Indian VIX: 15.23 v/s 15.44

Addition in OI (Nifty Feb. Contract): 21900 PE +2.86 lakhs, 23000 CE +2.80 lakhs

Reduction in OI (Nifty Feb. Contract): 20500 PE -5.11 lakhs, 21800 CE -2.87 lakhs

Top Longs: NTPC (10.8%), GMRINFRA (3.5%), SBIN (5.6%)

Top shorts: VEDL (38.3%), ITC (5.9%), MOTHERSON (5.8%)

Top long unwind: HINDCOPPER (-4.3%), BANDHANBNK (-1.1%), ABFRL (-1.2%)

Top short covering: IDEA (-1.3%), NMDC (-3.3%), GAIL (-1.4%)

Top 10 rise in volume/rise in price for F&O stock: NMDC, POLYCAB, ESCORTS, GAIL, IGL, MGL, GLENMARK, FEDERALBNK, M&M, PIIND

Top 10 rise in volume/fall in price for F&O stock: MUTHOOTFIN, VEDL, CROMPTON, ABFRL, ICICIPRULI, HCLTECH, HINDUNILVR, ITC, JKCEMENT, NESTLEIND

Hold, TP Rs 1125

3Q steady led by India & generics exports segments; branded markets should recover

Outlook remains steady for its India biz; export markets should also sustain growth barring some near-term volatility

O-P, TP Rs 266 ‘

3% contraction in lifestyle rev &12% growth in Pantaloons rev in 3Q

Gross margin improved by 190bps YoY while Ebitda margin improved by 114bps YoY as management focused on profitability 

Management expects to shift focus back to reve growth

UW, TP Rs 133

PPOP beat was 27% on higher total income (18% above MSe) & lower operating costs

PAT 12% below MSe as higher PPOP was offset by higher credit costs of 1.76% (MSe 45bps)

F25-26 EPS est. move lower by 11.5% each

Downgrade to N, TP Rs 4200

AC struggles; Electronics may add value over time

AC business is struggling with OEM assembly moving in-house

Electronics can add high value over time; Titagarh JV to help railways scale-up

Weak results driven by challenges in AC segment following shift to components

STK trading at 48x FY25E PE, slightly higher than its long-term average, (risk/reward is balanced)

Jefferies

U-P, TP raised to Rs 470

Operationally weak qtr with Ebitda inline but vol 4% below JEFe on further market share loss in Morbi

Pricing strategy suggests margin defence over gaining back market share 

Modest vol growth guidance for FY25 a dampener

CLSA

Sell, TP Rs 360

Disappointing performance & muted commentary

Below est. PAT due to lower margins coupled with margin miss

Management guided for 10% vol growth(15%+ in CNG) & unit Ebitda margin of Rs4.5-5.5/scm

Find 30x PE multiple unsustainable

CAP, CTSH, Genpact & EPAM 2024 sales growth guidance remain weak

Reiterate cautious stance 

Believe rubber will meet road when Infosys & HCL Tech issue their annual growth guidance in April 2024

Forecast at mid-high single digits

O-P – INFY and Tech Mah

Sell – Wipro and LTIMindtree

See more downside risk to FY25 est. despite growth having troughed

Downgrade to sell from buy, TP raised to Rs 215

Domestic Price at Export Parity; Little Volume Upside Beyond FY25

NMDC has hiked prices by Rs850/t (19%) since Oct23, closing 20% + disc. to export parity (now at par).

According to our global team, China’s policy support has been somewhat underwhelming however they see risk skewed to upside 

Mgmt. indicated prices should be largely stable with minor adjustments on either side

Co expect strong volumes in FY25 (largely discounted)

Upgrade BPCL to Buy from U-P, TP raised to Rs 890 BPCL offers largest margin of safety

IOC – Hold, TP Raised to Rs 215 from Rs 135

HPCL – U-P, TP raised to Rs 550 from Rs 330

Marketing losses in diesel to hurt HPCL

Key risks: Rise in crude price, narrowing of discount on Russian crude, any intervention in retail pricing, any increase in excise duties on auto fuels, large capex commitment in new energy.

Can set alert for them at www.researchbytes.com 

8:30 AM Glenmark

Dial: +91 22 6280 1298 

Weblink: http://tinyurl.com/2s3fkd9w

11:00 AM Apex Frozen

(Results, Investor/Analyst Presentation)

Dial: +91 22 6280 1256

Weblink: http://tinyurl.com/bdh72yyc

12:00 PM Dhruv Consultan

Weblink: http://tinyurl.com/4akc2kfk

12:00 PM Uday Jewellery

Weblink: http://tinyurl.com/ynwbzcdx

2:30 PM HPL Electric

Dial: +91 22 6280 1146 

Weblink: http://tinyurl.com/ymz22xaj

3:00 PM Bharat Agri

Dial: +91 22 6280 1239 

Weblink: http://tinyurl.com/yc3ee8vc

4:00 PM Khadim India

Weblink: http://tinyurl.com/5n7zd339

4:00 PM PTC India

Weblink: https://www.c-meeting.com/web3/join/3BLWA3TFBQMXKN

4:00 PM Prevest Denpro

Weblink: http://tinyurl.com/3f8fw64k

4:00 PM Jyoti CNC

Dial: +91 22 6280 1224

4:00 PM Hinduja Global

Dial: +91 22 6280 1341

Weblink: http://tinyurl.com/2sv7y7fv

( Hosted by Adfactors )

4:00 PM Ice Make Refrig

Dial: +91 22 6280 1341

Weblink: http://tinyurl.com/jspwj6n3

( Hosted by Aaryana Matasco )

4:00 PM Epack Durable

Dial: +91 22 6280 1341

Weblink: http://tinyurl.com/2s4dy59e

( Hosted by Valorem )

R Systems Intl : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295741

IG Petro : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295725

Gujarat Gas : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295736

Ganesh Benzo : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295727

AXISCADES : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295730

Abans Holdings : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295718

Dishman Carboge : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295733

Ipca Labs : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295708

Aditya Birla F : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295715

Deepak Nitrite : (replay)

https://www.researchbytes.com/webcast.aspx?WID=295711

Results today …

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

Recent interviews …

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

Replays available at www.researchbytes.com

Indian benchmark indices, Sensex and Nifty, started the day higher on Friday, building on the momentum from the previous three sessions. This trend is supported by consistent domestic buying and mirrors the positive sentiment in Asian markets, boosted by new U.S. data suggesting an economic slowdown. The 30-share BSE Sensex rose by 301.80 points to 72,352.19 in early trading, while the NSE Nifty climbed 99.60 points to 22,010.35. All Nifty sectoral indices are trading positively, with the IT and Auto indices leading the gains.

Kotak Securities suggests that most sectors and stocks are currently overvalued, with the overvaluation varying across different categories. They note that the market seems willing to pay high prices for weak business models and unsustainable profitability, indicating high levels of exuberance and low concerns about risks. Despite the rich valuations, they see no immediate negative triggers for a sharp correction. They also highlight the dichotomy between weak and strong investment demand, expecting consumption to recover gradually over the next 2-4 quarters.

While foreign institutional outflows intensified after hot U.S. inflation data released earlier in the week, domestic institutional inflows have remained strong.

Foreign portfolio investors have sold shares worth Rs 4,919 crore in the first half of February, according to National Securities Depository data.

In contrast, domestic institutional investors have been net buyers in nine out of the 11 sessions in February so far, injecting Rs 15,822 crore into the capital market segment, according to provisional data from the National Stock Exchange.

Shalimar Paints: Open: 12-Feb-24; Close: 26-Feb-24

Glenmark Life Sciences: Open: 15-Feb-24; Close: 29-Feb-24

Adroit Infotech: Open: 07-Feb-24; Close: 16-Feb-24

Shree Ajit Pulp And Paper: Open: 30-Jan-24; Close: 20-Feb-24

Magnum Ventures: Open: 07-Feb-24; Close: 21-Feb-24

Yarn Syndicate: Open: 06-Feb-24; Close: 21-Feb-24

Mangalam Industrial Finance: Open: 12-Feb-24; Close: 26-Feb-24

Affordable Robotic: Open: 26-Feb-24; Close: 07-Mar-24

MAS Financial Services: Bonus Issue 2:1; Ex-Date: 22-Feb-24

DRC Systems India: Bonus Issue 2:1; Ex-Date: 27-Feb-24

Fiem Industries: Bonus Issue 1:1; Ex-Date: 28-Feb-24

Zydus Lifesciences: Ex-Date: 23-Feb-24

Garware Technical Fibres: Ex-Date: 12-Mar-24

7TEC: Interim Dividend - Rs. - 2.00

BANCOINDIA: Interim Dividend - Rs. - 20.00

AKZOINDIA: Interim Dividend - Rs. - 50.00

BAJAJCON: Interim Dividend - Rs. - 3.00

IOLCP: Interim Dividend - Rs. - 5.00

TORNTPOWER: Interim Dividend - Rs. - 12.00

DALMIASUG: Interim Dividend - Rs. - 3.75

JKPAPER: Interim Dividend - Rs. - 3.50

IRCON: Interim Dividend - Rs. - 1.80

DISAQ: Interim Dividend - Rs. - 100.00

NLCINDIA: Interim Dividend - Rs. - 1.50

TRITURBINE: Interim Dividend - Rs. - 2.30

MANAPPURAM: Interim Dividend - Rs. - 0.90

CAMS: Interim Dividend - Rs. - 12.00

AARTIPHARM: Interim Dividend - Rs. - 2.00

SUNDARMFIN: Interim Dividend - Rs. - 14.00

JBCHEPHARM: Interim Dividend - Rs. - 5.50

ORIENTCEM: Interim Dividend - Rs. - 0.75

PAGEIND: Interim Dividend - Rs. - 100.00

JKTYRE: Interim Dividend - Rs. - 1.00

BEML: Interim Dividend - Rs. - 5.00

VIDHIING: Interim Dividend - Rs. - 0.60

SBCL: Interim Dividend - Rs. - 0.70

ALKEM: Interim Dividend - Rs. - 35.00

EMAMILTD: Interim Dividend - Rs. - 4.00

ONGC: Interim Dividend - Rs. - 4.00

SIYSIL: Interim Dividend - Rs. - 3.00

20-Feb-24

MAJESAUT: Interim Dividend - Rs. - 15.00

PFC: Interim Dividend - Rs. - 3.50

MSTCLTD: Interim Dividend - Rs. - 5.00

PRECWIRE: Interim Dividend - Rs. - 0.30

HIKAL: Interim Dividend - Rs. - 0.60

CENTUM: Interim Dividend - Rs. - 3.00

APOLLOHOSP: Interim Dividend - Rs. - 6.00

REFEX: Interim Dividend - Rs. - 0.50

AMRUTANJAN: Interim Dividend

AUROPHARMA: Interim Dividend

COALINDIA: Interim Dividend

HAL: Interim Dividend

SAIL: Interim Dividend

TCIEXP: Interim Dividend

Zomato Malaysia Sdn. Bhd, step down subsidiary of Zomato Limited situated in Malaysia, has initiated the process of liquidation w.e.f. February 15, 2024.

Buzzing Stocks: Cipla, Vedanta, Oil/Oil Marketing companies, Dilip Buildcon, UPL, Escorts

The Red Sea disruptions and recessionary trends in the West notwithstanding, India’s goods exports inched upwards in January 2024, posting a 3.12 per cent growth (year-on-year) to $36.92 billion, propped by sectors such as electronics, engineering goods and pharmaceuticals.

More than two years after it was first announced by the market regulator SEBI, the proposed trading in the country’s first spot physical gold exchange product, Electronic Gold Receipt, remains a non-starter due to taxation issues.

EGRs are like depository gold receipts traded on the stock exchanges and held in demat accounts, just like shares.

Sun TV Network’s EBITDA remained flat y-o-y at ₹570 crore (in line) with margins contracting 200bps y-o-y, dragged by higher operating expenses and soft revenue growth. Revenue grew 3.3 per cent y-o-y to ₹890 crore (in line), exhibiting some moderation. This is primarily attributed to weakened ad revenues, stemming from the impact of cricket World Cup.

Eicher Motors’ (Eicher) Q3-FY2024 operating performance came in line with estimates, while its bottom line missed estimates due to lower-than-expected other income. Revenue increased by 1.6 per cent q-o-q to ₹4,179 crore (vs. estimate of ₹4,134 crore) because of a 2.1 per cent q-o-q increase in ASPs as volumes were down by 0.5 per cent q-o-q. EBITDA increased by 0.3 per cent q-o-q to ₹1,090 crore (vs. estimate of ₹1,098 crore).

We find most sectors and stocks quite overvalued. The level of overvaluation increases in inverse order of (1) market cap., (2) quality and (3) risk. The market seems happy to overpay for weak business models in a few cases and unsustainably high profitability in others, which highlights high levels of exuberance (only greed) and low concerns about potential risks (no fear).

Stocks are overvalued in general; some less, some more, some bizarre

We find most sectors and stocks quite overvalued with the degree of overvaluation ranging from (1) low for most large-cap. consumer, IT services and pharmaceuticals to (2) medium in the investment space to (3) high in the case of several low-quality companies. It seems the market is happy to overpay for weak business models and superficial narratives without due consideration to fundamentals, risks and valuations. Among the larger sectors, the financial sector is the only exception with most stocks trading at reasonable valuations. 

Nothing negative on the horizon to suggest a sharp correction though

The large ‘disconnect’ between price and value may sustain, notwithstanding the rich valuations across sectors and stocks, if (1) the BJP was to win the forthcoming national elections in May, as is widely expected and (2) the market was to continue to ignore potential medium-term disruption risks. Also, (1) India’s reasonable macroeconomic situation (strong GDP growth, manageable BoP, fiscal and inflation); possible weak monsoons from El Nino conditions may further postpone consumption and rural recovery though and (2) a sluggish global outlook (lower inflation and interest rates) should provide some tailwind for the market.

Consumption is struggling, investment is booming

3QFY24 results showed the familiar trends of (1) weak consumption demand for staples and parts of discretionary sectors and (2) strong investment demand, especially for premium real estate. The dichotomy reflects continued challenges of low-income households (low income, high inflation) and decent financial condition of high-income households. We expect consumption demand to recover only gradually over the next 2-4 quarters. The low quality (in terms of value-add) of the bulk of new jobs may pose structural headwinds to a swift revival despite continued strong government and household investment. Certain manufactured exports (bearing, capital goods) declined sharply but we see this as a temporary blip linked to global factors, rather than a reversal of MNCs’ offshoring plans for India.

The ₹72.18 crore initial public offering (IPO) of Vibhor Steel Tubes has received bids worth ₹16,211.36 crore. The IPO, which closed on Thursday, saw an overwhelming response from all categories of investors and was subscribed 298.86 times.

Vibhor Steel Tubes, which supplies its products to Jindal Pipes, received bids for 107.36 crore shares against 35.92 lakh shares on offer (net-off anchor position). The entire issue of the firm is a fresh issue that will go to the Haryana-based company.

The steel pipes and tubes manufacturer came out with a price band of ₹141-151.

The short-term outlook is bullish. The stock has surged over 8 per cent on Thursday. This rise has taken the share price well above the key resistance level of ₹416. It also marks the resumption of the overall uptrend in this stock. Aegis Logistics share price can rise to ₹460 over the next two-three weeks.

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

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

Max Financial Services issued a clarification regarding a plea alleging Axis Bank and group companies of profiting from the purchase and sale of equity shares of its material subsidiary, Max Life Insurance Company. The company stated that the highlighted share transactions were conducted after obtaining appropriate approvals from regulators such as the RBI, IRDAI, and CCI, where applicable. Max Financial Services expressed confidence that there were no legal or regulatory anomalies in the transactions, and they would take all necessary legal steps to defend the matter in court.

Tejas Networks: Company has received 277.8 million rupees as incentives for the fiscal year 2022-23 under the PLI (Production-Linked Incentive) scheme for telecom and networking products.

📌 Market Levels

BSE Sensex: 72050.38 (+227.55)

Nifty 50: 21910.75 (+70.70)

NIFTY MID CAP 100: 48821.90 (+490.00)

NIFTY SMALL CAP 100: 16105.20 (+209.15)

📌 Index PE & PBV

SENSEX PE / PBV : 24.66 / 3.66

NIFTY 50 PE / PBV : 

22.62 / 3.84

NIFTY MIDCAP 100 PE / PBV : 25.38 / 3.91

NIFTY SMALLCAP 100 PE / PBV : 29.23 / 3.97

📌 Inflow/Outflow*the *(Daily/MTD) 

FII / FPI Activity: (3064.15 crs) / (14171.17 Crs)

DII Activity: 2276.93 crs / 15822.01 crs

📌 Volatility Index

India VIX - 15.22

📌 Commodities

Brent Crude: $81.48

Gold USD Oz/10 gm: $1998.06 = INR 61486

Silver: INR 69429

📌 Currency

Rs/$: 83.04

US Dollar Index (DXY) - 104.56

📌 10 Year Yield

7.26% GOI 2033: 7.11% (Old)

7.18% GOI 2033: 7.09% (New)

US 10 Yr Yield - 4.23%

Here’s an interesting stock idea: The recommendation we have for you today is Aegis Logistics

1 ABFRL 

2 ASHOKLEY 

3 BALRAMCHIN

5 BIOCON

6 CANBK 

7 DELTACORP 

8 HINDCOPPER 

9 INDIACEM 

10 INDUSTOWER 

11 SAIL 

12 ZEEL

Asian stocks started the day on a positive note on Friday, following the upward trend on Wall Street. Despite disappointing U.S. retail sales data, investors remained optimistic. In early trading, Japan’s Nikkei 225 rose by 1.75% to 38,827.16, and the broader Topix index climbed 1.28% to 2,625.14. South Korea’s KOSPI increased by 0.56% to 2,628.48, while Australia’s S&P/ASX 200 gained 0.38% to 7,634.40.

On Thursday, U.S. stocks closed higher despite the retail sales drop of 0.8% in January, which was more than expected. The S&P 500 rose by 0.58% to 5,029.67, the Nasdaq Composite increased by 0.30% to 15,906.17, and the Dow Jones Industrial Average climbed 0.91% to 38,774.73. The retail sales decline, primarily from auto dealerships and gasoline stations, did not deter investors who were less concerned about the earlier inflation data that had caused a temporary dip in the market.