Share Market Highlights: Sensex, Nifty close lower; Zee Entertainment’s accounting irregularities plunge media stocks

Ravindra V.Rao, CMT, CFTe, EPATian

VP-Head Commodity Research

COMEX Gold prices inched higher for the third straight day, amid heightened geo-political tensions, ease in the greenback and China growth concerns. Robust demand from central banks are also aiding the physical gold demand, countering ETF outflows. Swaps traders currently see little chance of the Fed lowering borrowing costs before June, after recent data showed inflation in the world’s biggest economy remains stubbornly sticky. Now the focus will be on the FOMC meeting minutes due on Thursday. A number of Fed officials will be speaking later this week, including Fed Governor Christopher Waller Christopher Waller.

WTI Crude oil futures steadied in early Asian trading, after falling almost 2% on Tuesday amid demand concerns. Chinese figures showed that while trips increased over the Lunar New Year holidays, however, tourists spent cautiously. Meanwhile, the OPEC+ producer Russia met its target for export cuts in January, complying with an earlier pledge to the group, according to government data. This comes after a slew of OPEC members vowing to meet the compliance in the recent days. Investors now await OPEC+’s March decision on whether to extend output cuts into the second quarter.

Indian shares fell on Wednesday, snapping a six-session winning streak, dragged by information technology stocks on fading hopes of early U.S. interest rate cuts and energy stocks.

The NSE Nifty 50 fell 0.64% to 22,055.05, while the S&P BSE Sensex settled 0.59% lower at 72,623.09.

The Nifty 50 had gained as much as 0.24% in the first hour of trade to hit a record high for the third session in a row, before reversing gains in the final hours.

Nine of the 13 major sectors declined, with 37 of the Nifty 50 stocks logging losses.

A likely delay in rate cuts is a sentimental negative for global equities and IT stocks, but strong domestic inflows kept Indian equities resilient over the last six sessions, said Atul Suri, chief executive at Marathon Trends PMS.

Suri also expects bouts of profit booking to continue in the next few sessions, as seen on Wednesday.

IT stocks shed 1.64%, extending its fall for the third straight session in the aftermath of hot U.S. inflation reading. The index has lost 2.78% in the three sessions.

Energy stocks fell 1.68% on the day after gaining about 50% over the last 16 weeks.

The broader more domestically-focussed small- and mid-caps slipped 1.04% and 1.25%, respectively, underperforming the benchmarks.

Profit booking in “over-heated” sectors like energy and in the small- and mid-caps sub-indexes are healthy after their recent sharp rise, Suri added.

Media stocks tumbled 4.91%, led by about 15% slide in Zee Entertainment after a report that the market regulator found accounting irregularities, hours after the broadcaster denied it was attempting to salvage its failed merger deal with Sony India.

Investors now await the minutes of the U.S. Federal Reserve’s latest monetary policy meeting, due later in the day, for its rate outlook.

The Reserve Bank of India will release the minutes from its last policy meeting on Thursday. - Reuters

Jateen Trivedi, VP Research Analyst, LKP Securities. 

“Gold prices remained within a narrow range, fluctuating between 62150 and 62275, while Comex Gold experienced similar range-bound movements, trading between $2032 and $2026. Market participants are eagerly awaiting the release of the FED’s meeting minutes later tonight, which could provide insights into future monetary policy decisions.

The outcome of the FED’s meeting minutes may define the trend for Gold, which has been trading in a range between 62000 and 62400. Investors are closely monitoring any signals or indications from the FED regarding its stance on interest rates and inflation, as these factors are likely to influence the direction of Gold prices in the near term.”

Ambuja Cements, part of Adani Group, has proposed to establish a cement grinding unit with an investment of ₹1,000 crore in Motia Village of Godda district in Jharkhand, post requisite approvals, with a capacity of 4.0 MTPA. 

The project is planned in proximity to Adani Power (Jharkhand) Limited, as part of a comprehensive approach to disposing of fly ash in an environmentally safe manner and contributing to the circular economy, the company has said in its statement.

Ambuja Cements already operates two cement plants in Jharkhand with a combined capacity of 6 MTPA. 

HFCL Ltd (HFCL) has announced expansion into Europe with the setting up of an optical fibre cable (OFC) manufacturing plant in Poland.

The company has said in its statement that HFCL plans to ramp up its share of exports in its OFC vertical revenue from the current 30 per cent to 70 per cent within the next 4-5 years.

Shares of Zee Entertainment Enterprises Ltd (ZEEL) tumbled 12 per cent in the mid-session trade on Wednesday amid reports that SEBI has found financial discrepancies in the accounts of the company.

The stock of the company nosedived 11.58 per cent to ₹170.65 apiece on the BSE.

ZEEL shares plunged 11.39 per cent to ₹170.70 per piece on the NSE.

Satin Creditcare Network Ltd (SCNL) has announced its debut in Telangana and Andhra Pradesh. According to the company’s statement, it has inaugurated two branches in Telangana, situated in Warangal and Huzurabad and one in Kadiri in Andhra Pradesh. 

Commenting on the development, HP Singh, Chairman and Managing Director of Satin Creditcare Network Limited, said, “At SCNL, we view expansion as more than just geographic growth. It is about reaching out to economically marginalised households across the nation and empowering them with financial solutions.”

Tata Power Company Ltd has announced that its wholly-owned subsidiary, Tata Power Trading Company Ltd (TPTCL), has entered a multi-year power purchase agreement with BluSmart to source green power.

Under the agreement, 30 MW capacity will be sourced by TPTCL from the company’s 200 MW Solar PV power plant in Bikaner district, Rajasthan.

Tata Consultancy Services (TCS) has expanded its partnership with The Co-operative Group Limited (Co-op) to provide cloud strategy solutions to support its business growth. The tech giant has been the partner to Co-op for the past 14 years.

The expanded partnership will see TCS help Co-op move from a traditional data centre model to a fully managed, scalable cloud environment powered by TCS Enterprise Cloud. TCS will also manage the hybrid cloud and SaaS estate for resilience and agility. 

Ambuja Cements Ltd., part of the Adani Group, plans to invest Rs 1000 crore in setting up a 4 MTPA cement grinding unit in Godda, Jharkhand, aiming to drive infrastructure development and create employment opportunities in the region. Shares were down by 0.06% to Rs 588.45 on the BSE.

A total of 3,924 stocks were actively traded, 1,385 advanced, while 2,430 declined and 109 stocks remained unchanged where 336 stocks hit a 52 week high and 13 stocks hit a 52 week low at 3.06 pm on the BSE

Top gainers on the NSE at 3 pm include- Tata Steel (1.74%), SBI Life insurance company (1.24%), Jsw Steel (0.69%), Indusind Bank (0.56%), Tata consumer products (0.56%)

Top losers include - Bharat Petroleum Corporation (-3.92%), Coal India (-3.26%), NTPC (-2.85%), Power grid (-2.83%), HDFC life (-2.08%)

Manali Petrochemicals Ltd’s overseas subsidiary, PennWhite Limited, UK, unveiled the creation of PennWhite India Private Ltd to enhance its footprint in the Indian market. The company is also contemplating the establishment of a manufacturing facility in Tamil Nadu to cater to local requirements. Shares of the company experienced a decrease of 2.07% to ₹71.35 on the BSE.

GOCL Corporation Ltd saw a surge of 12.18% in its shares, reaching ₹500.25. The company disclosed that to comply with the 74% FDI limit, promoter Hinduja Capital, Mauritius, will reduce its stake by 1% to 72.83% from 73.83% through a bulk or block deal.

Union Bank of India Ltd witnessed a 3.01% increase in its shares, reaching ₹145.35. The bank sanctioned a plan to raise up to ₹3,000 crore through QIP at a floor price of ₹142.78 per share.

Transport Corporation of India Ltd inaugurated TCIL Middle East Logistics Services L.L.C., its wholly owned subsidiary, in Dubai, U.A.E., signalling its debut in the Middle East market with a planned investment of $250,000 over two years. 

The company’s shares experienced a decrease of 0.68 per cent to ₹850 on the BSE.

Crude oil futures on Wednesday declined 1.14 per cent to ₹6,357 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for March delivery fell ₹73 or 1.14 per cent to ₹6,357 per barrel with a business volume of 5,509 lots.

Zaggle Prepaid Ocean Services Limited has entered a partnership with Wipro Limited, finalizing a one-year service agreement to offer the “Zaggle Save” platform for employee benefits and expense management. Zaggle’s shares experienced a decline of 0.35% to ₹288.55 on the BSE.

Motilal Oswal Alternates (MO Alts) announces the first close of India Realty Excellence Fund VI (IREF VI), its sixth real estate fund, with commitments totalling approximately ₹1,250 crore. The fund targets a corpus of ₹2,000 crore, including a green shoe option of ₹500 crore, and aims to invest primarily in mid-income/affordable residential projects across India’s top 8 cities. 

Managed by MO Alts, the fund attracts investments from high net worth individuals, non-resident Indians, and family offices/corporates. With a focus on early-stage investments, IREF VI operates as an alternative investment fund (AIF Category II), adding to MO Alts’ cumulative AUM of over $2 billion.

Kaveri Seed Company Limited has established a wholly owned subsidiary, Kaveri Seed Company Bangladesh Private Limited, in Bangladesh. The subsidiary has a capital of 49,953 equity shares valued at Taka 10 each. The company’s shares experienced a decrease of 0.69 per cent to ₹679.15 on the BSE.

Mumbai-based Orient Technologies Limited, a fast-growing information technology (IT) solutions provider, has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi to raise funds for its initial public offering (IPO).

The IPO has a face value of ₹10 and consists of a fresh issue of ₹120 crore and an offer for sale of up to 4.6 million equity shares by the Promoter Selling Shareholders. 

The offer for sale consists of the sale of equity shares of up to 1,150,000 by Ajay Baliram Sawant, up to 1,150,000 equity shares by Umesh Navnitlal Shah, up to 1,150,000 equity shares by Ujwal Arvind Mhatre, and up to 1,150,000 equity shares by Jayesh Manharlal Shah.

The Offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional investors, and not less than 35% of the offer shall be available for allocation to retail individual investors.

The proceeds from the fresh issue, to the extent of ₹79.65 crore for funding its capital expenditure requirements; ₹10.35 crore for the acquisition of office premises at Navi Mumbai; and General Corporate Purposes.

Top gainers on the NSE at 1 pm include - JSW Steel Ltd (3.07%), Tata Steel (2.98%), SBI India (2.07%), Adani Enterprises (1.93%), Hindalco Industries (1.51%)

Top losers include - Power grid corporation of India (-2.01%), Bharat Petroleum Corporation (-1.77%), Coal India (-1.35%), Infosys (-1.27%), Ltimindtree (-1.05%)

India’s market regulator SEBI has found a hole of more than ₹2,000 crore in the accounts of Zee Entertainment Enterprises Ltd., dealing another blow to the embattled media firm less than a month after its merger with Sony Group Corp’s local unit collapsed, per media reports.

The share price of Zee Entertainment Enterprises Ltd declined over 10% to ₹171.95. 

TVS Motor Company’s shares were down by 0.49% to ₹2109.05 on the BSE.

Patel Engineering Ltd was awarded a ₹525.36 crore irrigation project by the Telangana government for constructing RCC Protection Walls along River Munneru in Khammam.

The company’s share price advanced 2.52% to ₹73.35 on NSE. 

Cosmo First clinches two awards: Forbes Asia Best Under a Billion Companies Awards for sustainable innovation and excellence, and The Indian Flexible Packaging and Folding Carton Association (IFCA) Star Award 2023. Shares down by 1.24% to Rs 530.40 on the BSE.

Zen Technologies Limited received a ₹93 crore order, from the Ministry of Defence, Government of India, for its continued collaboration with the government in defense-related initiatives. The shares were up by 0.66% to Rs 531.35 on the BSE

Sterlite technologies Ltd partners with Lumos to build a 100% fiber optic internet network in the US, focusing on the mid-Atlantic region. Shares were up by 6.39% to Rs 143.9 on the BSE.

Government fully exempts custom duty on import of extra-long staple cotton 

The government, vide CBIC notification dated 19 February 2024, has fully exempted custom duty on import of extra-long staple (ELS) cotton ‘Other: of staple length exceeding 32.0mm’ covered under ‘HS 5201 00 25’. The import duty on cotton of <32mm fiber length may continue as earlier at 5% plus agricultural infrastructural and development cess and surcharge, taking the total to 11%. 

Background

The government introduced import duty on cotton in the Budget of February 2021. In April 2022, due to demand-supply mismatch in Indian cotton, the government temporarily exempted import of cotton (all varieties) till September 2022. Introduction of import duty has been detrimental to the prospects of Indian Textile Industry as it severely hit the entire value chain. This was more dire in periods when Indian cotton was expensive than international cotton. The industry has since then demanded to pare import duty on entire cotton imports and on ELS cotton to the minimum. 

Our view

This notification pertains to the import of ELS variety of cotton. US Pima and Egyptian Giza, which are premium cotton, come under this variety. ELS fiber is largely used for value-added products such as high-end cotton garments and bed sheets.

This exemption may benefit exporters the most as generally customers require their products to be made from premium cotton such as US PIMA or Egyptian GIZA. In such cases, import duty on cotton is adjusted against the export benefits received by the exporter and hence, results in lower accrual of benefit to them. With this exemption in custom duty, exporters may be in a position to use the export benefit fully. This may result in improved competitiveness of Indian exporters for premium products, resulting in higher volume of premium products. It could also result in slight margin improvement for exporters (the share of premium products is lower in overall sales). India has sufficient cotton in staple length <32mm and hence, imports are almost insignificant in those varieties.

Impact on companies

Ambika Cotton, Himatsingka Seide, Indo Count Industries, Welspun Living, Indo Count Industries, and Trident among others are likely to benefit. Directionally, this may be positive for spinners and the entire value chain, though the journey is long as regards removal of import duty on all varieties.

BluSmart joined forces with Tata Power to secure 30 MW of green energy from a Rajasthan solar plant, aiming for complete renewable energy adoption. Shares of Tata Power were up by 0.61% to Rs 381.25 on the BSE.

Zaggle Prepaid Ocean Services Ltd awarded Arcadis Consulting India Private Limited a customer service agreement for its Employee Benefits and Expense Management platform. Shares down by 0.45% to Rs 288.25 on the BSE.

Lead futures (February contract) on the Multi Commodity Exchange (MCX) have been on a decline since the beginning of this year. However, after reaching ₹175 a couple of weeks back, the contract rebounded.

Although there has not been confirmations of a bullish trend reversal, the current price action indicates a potential upside to ₹182, which could be a corrective rally.

Risk-on sentiments are still prevalent in 2024, as is evident from the SMIDs outperformance over Nifty in last one month. However we continue to believe that 2024 would be the year of large caps over SMID, as asset allocators would prioritise valuation comfort. 

Corporate commentary in the quarter gone by lacked any concrete evidence of pickup in rural demand which reflected in the underperformance of the FMCG sector in every time frame in last one year. 

Breakup of the FII flows data indicate that FIIs massively sold ‘Financials’ (USD 30bn) while amidst concerns, IT sector saw large buying ($4.5 billion) in Jan’24. 

Although Powell’s categorical indication of peak policy rates was consoling, but markets reacted negatively to his clear indication for no policy easing in Mar’24, which was later corroborated by a hotter than expected CPI print. Even in India, core inflation easing below 4% mark should not lead to expectations of policy easing unless inflation aligns with the target in a durable manner. 

But in general, central banks around the world are keeping a close eye on the risk of resurgence in inflationary pressures. The impact of the disruption in the Red sea will be clear when trade data for Jan’24 is released, but freight rates continue to remain elevated as trade volumes gets diverted through the longer route.

OPEC+ to support Brent ~$80/bbl; ONGC/Oil India favourably placed

IEA has largely maintained its CY24 global oil demand growth estimate at 1.2 mmbpd, though it is still lower than CY23 growth of 2.3 mmbpd. Global commercial oil inventory is estimated to have fallen by ~60 mmbbl MoM in Jan’24 due to 1.4 mmbpd MoM decline in global oil supply because of the Arctic freeze (~900 kbpd hit to crude output in the US and Canada) coupled with OPEC+ voluntary output cuts (of ~300 kbpd).

Though non-OPEC+ oil supply growth in CY24 is expected to be strong at 1.7 mmbpd, OPEC+ output cuts are likely to keep the market in a small deficit in 1QCY24 while the deficit/surplus scenario for CY24 will be contingent on OPEC+ output cut decision for CY24. 

We still believe the strong pricing power of OPEC+ will continue to support Brent crude price at ~$80/bbl, which is the fiscal break-even crude price for Saudi Arabia. 

This is a sweet spot for ONGC/Oil India. 

We maintain BUY on ONGC and Oil India given strong 6-8% dividend play and also because CMP is discounting ~$65/bbl net crude realisation.

‘Power’ vision for Modi 3.0

Energy demand/ peak power continues to rise, touching 1,225BU/243GW during 9MFY24 (7.6%/12.7% YoY) primarily driven by 100% access to power and strengthening of T&D infra. 

The reduction in AT&C losses (25.72%/15.4% in FY15/FY23), narrowing of ACS-ARR gap (INR/kWh 0.78/0.45 in FY14/FY23) and LPS rules have collectively led to decrease in the total outstanding dues of discoms (₹1.4-lakh crore/ ₹49,500 crore in FY22/FY23), enabling capex in the value chain. 

The Minister of Power, during a recent discussion on the power sector, enumerated three priorities for ‘Modi 3.0’: 

1) Adding RE capacity of 322GW to achieve 500GW by 2030 alongside development of pumped-hydro storage capacities (4.7GW/3-4GW/35GW under operation/ construction/ clearances) 

2) Addition of 93GW of thermal power plants to ensure uninterrupted power supply for the nation’s growth

3) Further reducing AT&C losses to 10-12% (25.72%/15.40% in FY15/FY23) with policy initiatives and modernisation of distribution infrastructure

Despite a neutral global market sentiment and slight selling from foreign institutional investors (FIIs), the domestic market remains robust, hitting a lifetime high for the second consecutive day. GIFT Nifty suggests a positive opening near the 22250 levels. We anticipate Nifty to trade with a positive bias today. On the downside, significant Put strikes are observed at 22000 and 22100, expected to provide immediate support.

Looking ahead, if Bank Nifty sustains above 47200 levels, we foresee a move towards 47500 levels. Notably, the 47000 Call strike in Bank Nifty holds substantial Open Interest (OI) of around 23 lakhs shares, while the 47000 Put strike holds sizable OI of approximately 29 lakh shares. It’s advisable to adopt a “buy on dips” strategy in this scenario.

The Outlook is Stable, reflecting the Outlook on the Indian sovereign rating (BBB-/Stable). The rating on Hudco’s ₹5,000 crore medium-term note (MTN) programme has also been affirmed at ‘BBB-’.

Fitch classifies Hudco as a government-related entity (GRE) that is credit-linked to the Indian sovereign. Hudco’s ratings are equalised to those of the sovereign based on our view that the government has significant responsibility and incentives to provide financial support to Hudco in case of need.

Hudco’s close ties with the government are reflected in its policy mission to support the supply of affordable housing and development of urban infrastructure, in addition to its regulation by the Reserve Bank of India and National Housing Bank, and its administrative control by the Ministry of Housing and Urban Affairs (MoHUA).

The shares of Tinna Rubber and Infrastructure were down by 0.55% to ₹678.95

Bank Nifty futures (February expiry) began today’s session with a gap-up at 47,400 compared to yesterday’s close of 47,188. But it has now dropped to 47,100, down 0.2 per cent.

By closing at 47,188 on Tuesday, the Bank Nifty futures have broken out of the range of 45,000-47,000. Consequently, the odds of a rally from here have gone up.

The Nifty 50 February futures (22,255) are up 0.2 per cent. The contract has a key resistance at 22,270. Support is in the 22,220-22,200 region. As long as the contract sustains above this support zone, the outlook will remain positive. 

As such the chances are high of the Nifty 50 futures contract to breach 22,270 and rise to 22,400 and higher.

Valiant Communications’ shares gained 4.99% to ₹426.15 on the BSE.

​Kilburn Engineering Limited​’s shares were down by 0.95% to ₹7.28 on the BSE.

NIFTY-50 OUTLOOK

NIFTY-50 has scaled a new all time high and we expect some resistance near to 22,400 levels being the highest call OI in the weekly expiry. f The hourly support range has moved higher to 22,000 levels and on the downside the trend reversal level has moved higher to 21,600 levels. f RSI is overbought on hourly charts and other key technical indicators are poised for some consolidation from current levels. f Highest call OI is at with 22,400 strike while on the downside the highest put OI has moved higher to 22,000 for the weekly expiry. 

BANK NIFTY OUTLOOK

BANK NIFTY has witnessed a sharp breakout to cross the resistance of 46,800 levels led by index pivotal and now it will act as strong support from current levels. f On the higher side 47,600 will act as resistance and we expect the markets to trade volatile in the second half with respect to the weekly expiry. f The pivot support of 46,800 would hold for the day and will act as trend reversal point from current levels. f Bank Nifty highest call OI is at 47,500 levels while on the downside put OI will has moved higher to 46,500 levels.

Garment Mantra Lifestyle’s shares down by 0.95% to ₹7.28 on the BSE. 

The rupee sustained its upward momentum for the third straight session and gained 6 paise to 82.91 against the US dollar in early trade on Wednesday, tracking a weak American currency and positive equity market sentiment.

However, selling pressure from foreign equity investors amid elevated level of crude oil prices resisted a sharp gain in the domestic currency, analysts said.

At the interbank foreign exchange, the domestic currency opened at 82.90 and slipped to 82.91 against the greenback in initial deals, registering a gain of 6 paise from its previous close.

Anand James, Chief Market Strategist, Geojit Financial Services.

Nifty outlook:

While pencilling in 22175-22250 region at the start of the week as an intermediate challenge, we had expected uptrend to proceed without much drama enroute 22450-550. But this region continues to be stiff, urging us to reconsider downside prospects, even though, yesterday’s downside marker at 22118, deflated the early weakness. Nevertheless, we continue to see low odds of a collapse, given the number of congestion supports not far below, encouraging us to expect a 22118-22250 range to hold for most part of the day. 

Derivative outlook:

Nifty weekly contract has highest open interest at 23000 for Calls and 22000 for Puts while monthly contracts have highest open interest at 23000 for Calls and 22000 for Puts. Highest new OI addition was seen at 22550 for Calls and 22200 for Puts in weekly and at 23000 for Calls and 22100 for Puts in monthly contracts. FIIs increased their future index long position holdings by 3.84%, decreased future index shorts by 2.51% and in index options by 2.19% increase in Call longs, 13.87% increase in Call short, 2.73% increase in Put longs and 12.79% increase in Put shorts. 

USD-INR outlook:

Continued to trades below 83 has rendered the trend weak, exposing 82.9, bringing in 82.78 onto the radar. It would require bargain hunting from the 82.9 vicinity to stop a slide and a pull back above 83.1 to initiate an uptrend.

JPM on Paints

Dealer Checks

Cautious demand narrative; margin to be challenged by need for higher (brand & price) investments

Asian Paints– Neutral ; believe earnings risk will keep stock rangebound in near term despite underperformance & less demanding valuations 

Jefferies on Grasim

Buy Call, Target ₹2,300

Co Is Set To Launch Its Paint Product & Inaugurate Highly Anticipated First Paint Plant This Mth

Co Will Commission 2 Other Plants During Q4FY24 And 3 Plants In Next 12-15 Months

Co Has Already Spent Nearly 60% Of Planned Capex Of ₹10,000 Cr For Paint Business

Look Forward To Attending Inaugural Event This Week & Better Understand Growth Outlook

Better Understand Margin Vs Market Share Strategy In This Extremely Competitive Biz

CLSA on Autos

Electric two-wheelers volumes would likely remain flat YoY in Feb-24, despite increase in discounts.

Competition is escalating in the 2-wh segment, especially in electric scooters & premium motorcycle segments, which will likely impact margins

Nomura on Ramco Cements

Buy, TP cut to ₹1100

Cut multiple due to concerns over unbridled capex & ltd deleveraging potential

Concerns over capex overflow remain

For FY24F, management has already revised its capex guidance by 120% to ₹2,000 crore

BUY TP ₹900

Capacity expansion to propel growth

Scale-up through capacity expansion

Strong RM linkages & cost competitiveness

Steel demand relatively stronger in 4Q, should help garner better margins

Stk trades at 5.2x FY26E EV/EBITDA

Jefferies on KFin Tech

Buy Call, Target Raised To ₹760

Co Is At An Inflexion Point To Monetise Investments In Overseas Markets

See Co Breaking Into Larger Mkts Like Singapore/Hong Kong

See Co Exploring Inorganic Opportunities In West

Higher Growth From Intl Ops, AIFs & Value Added/Analytics Svcs Should Aid Higher Growth In FY25-26

Raise EPS Estimate By 2-4%

Stronger Cashflows & Pragmatic View Will Likely Anchor Inorganic Opportunities

RattanIndia’s Revolt Motors expanded its presence with the inauguration of 15 new dealerships.

CBI Industrial Order Expectations from GBP Zone

Consumer Confidence from Euro Zone

FOMC minutes from the US Zone

172 stocks hit 52 week high and 4 stocks hit 52 week low at 9.33 am on the BSE

Top gainers on the NSE at 9.30 am include - Hindalco Industries (2.70%), JSW Steel (2.10%), Tata Steel (1.13%), Bharti Airtel (1.05%), Eicher motors (1.09%)

Top losers include- Infosys (-1.14%), Bharat Petroleum Corporation (-1.06%), Power grid corporation of India (-0.92%), Bajaj Auto (-0.76%), Axis Bank (-0.62%)

Gold managed to remain stable, supported by a slightly depreciating dollar and with investors anticipating the release of the minutes from the most recent policy meeting of the US Federal Reserve later in the day for further insight into the Fed’s interest rate path. President of the Federal Reserve Bank of San Francisco Mary Daly stated that “there is more work to be done” to preserve stable prices despite “remarkable” progress on U.S. inflation. Another Fed official issued a warning in the meanwhile about procrastinating rate decreases for too long. 

The expectation of a rate cut in March was crushed by data last week about US consumer and producer prices, which were hotter than expected.

Market is awaiting more demand signals as PMI (purchasing managers index) data of some economies and US crude oil inventory data are set for release during the week. At 9.17 am on Wednesday, April Brent oil futures were at $82.66, up by 0.39 per cent; and April crude oil futures on WTI (West Texas Intermediate) were at $77.30, up by 0.34 per cent. 

March crude oil futures were trading at ₹6421 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6430, down by 0.14 per cent; and April futures were trading at ₹6426 as against the previous close of ₹6431, down by 0.08 per cent.

Ex Bonus 22 February 2024 (Tomorrow)

Last date Trade for Before Bonus Today

Mas Financial Services Ltd

Bonus issue 2:1

Previous day Closing Price – ₹1,006

SG Mart Ltd

Bonus issue 1:1

Previous day Closing Price – ₹11,712.5

Ex-Dividend 22 February 2024 (Tomorrow)

Last date for Cum-Dividend Today

A.K. Capital Services Ltd.

Dividend Per Share ₹8

Previous day Closing Price – ₹1058.5

Avt Natural Products Ltd.

Dividend Per Share ₹0.3

Previous day Closing Price – ₹110.81

Gujarat Themis Biosyn Ltd.

Dividend Per Share ₹0.75

Previous day Closing Price – ₹344.6

NHPC Ltd.

Dividend Per Share ₹1.4

Previous day Closing Price – ₹94.81

Sunshield Chemicals Ltd.

Dividend Per Share ₹1.2

Previous day Closing Price – ₹874.7

Tide Water Oil (India) Ltd.

Dividend Per Share ₹12

Previous day Closing Price – ₹1776.8

DLF: The company unit has acquired land parcels in Gurugram, Haryana for ₹1,241 crore, enabling partial redemption of bonds for ₹775 crore. The company’s unit has completed the registration and transfer of the first tranche of land parcels. 

Zee Entertainment: The company clarified that it is not involved in any negotiations in relation to the Sony merger deal. 

GOCL: To meet the FDI limit of 74%, promoter Hinduja Capital, Mauritius, will be reducing their stake by 1% to 72.83% from 73.83% via bulk or block deal.

Ashok Leyland: The company will set up a new integrated commercial vehicle plant focused on green mobility in Uttar Pradesh.

NTPC: Unit NTPC Green Energy signed an agreement with the Andhra Pradesh government to develop a green hydrogen hub in Visakhapatnam, which includes the construction of a production facility for 1,200 tonnes per day. 

Thermax: The company entered into a licence and technical assistance agreement with Flowtech Co., South Korea, to obtain technology to manufacture Poly carboxylate ether products to strengthen its construction chemicals business portfolio. For the $300,000, 50% will be adjusted against royalty payments and the balance will be a refundable deposit until the agreement period. 

Bondada Engineering: The company received a work order worth Rs 4.93 crore from Sundrops Energia to supply the equipment for the solar power plant.

Medplus Health Services: A company unit received a suspension order from Drugs and Control authorities for suspending the operations of a store for two days. 

Varun Beverages: The company, through its unit, entered into an exclusive snack appointment agreement to manufacture and package ‘Cheetos’ in Morocco. The commencement of production from the company’s own manufacturing facility will be effective from May 1, 2025, with a capex of ₹100 crore. 

ONGC: The board approved a JV for compressed biogas plants with a seed equity contribution worth up to ₹10 crore. 

Tourism Finance Corp: Aditya Kumar Halwasiya bought 1.18 crore shares (13.05%) at Rs 209.75 apiece, Koppara Sajeeve Thomas sold 34.44 lakh shares (3.81%), Pansare Holdings PTE sold 42.56 lakh shares (4.7%), Varanium Capital Advisors sold 10.04 lakh shares (1.11%), Varanium India Opportunity sold 30.97 lakh shares (3.42%) at Rs 209.75 apiece.

Jindal Saw: Eriska Investment Fund sold 23.5 lakh shares (0.73%), Nippon India Mutual Fund - Small Cap Fund bought 12 lakh shares (0.37%), Samco Mutual Fund bought 5.5 lakh shares (0.15%) at Rs 521 apiece. 

Mangalore Chemicals and Fertilizers: Promoter Zuari Agro Chemicals created a pledge of 1 lakh shares on Feb. 16. 

Apollo Micro Systems: Promoter Karunakar Reddy Baddam revoked a pledge of 62.50 lakh shares on Feb. 16.

NGL Fine-Chem: Promoter Sunita Potdar sold 20,000 shares on Feb. 19. 

Authum Investment and Infrastructure: Promoter Mentor Capital bought 1.5 lakh shares on Feb. 19. 

Coffee Day Enterprises: Promoter Malavika Hegde sold 98 lakh shares on Feb. 19. 

G N A Axles: Promoter Maninder Singh sold 1.06 lakh shares on Feb 15, Promoter Gursaran Singh bought 1.12 lakh shares on Feb 15.

Price band revised from 20% to 10%: Force Motors, Wockhardt. 

Ex/record Dividend: PI Industries, Mrs. Bectors Food Specialities, MRF, NCL Industries, SJVN, Saregama India, Cummins India, Electrosteel Castings, Uniparts India, JK Lakshmi Cement, Hero MotoCorp, Life Insurance Corporation of India, Sula Vineyards. 

Moved into short-term ASM framework: Aegis Logistics, Dilip Buildcon, HPL Electric & Power, Natco Pharma, Nuvama Wealth Management. 

Moved Out of short-term ASM framework: Sindhu Trade Links, Zuari Industries.

The ₹1,800-crore initial public offering of Juniper Hotels, which runs the “Hyatt” brand, opens today for public subscription. The IPO comes out with a price band of ₹ 342-360 and the minimum bid lot is 40 shares. The issue closes on Friday, February 23.

Juniper Hotels IPO has reserved up to 75 per cent of the issue to qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 10 per cent for retail investors.

The company on Tuesday, as part of IPO process, raised ₹810 crore from anchor investors. The hotel major informed the bourses that it allocated 2.25 crore shares at ₹360 a share to marquee investors.

India’s equity benchmarks are likely to open on flat note with downward bias amid lack of major cues. With the country is gearing up for general elections, analysts expect the market to move in a narrow range. Foreign portfolio investors continued their selling by offloading shares on every rise.

Gift Nifty at 22,255 indicates that NSE Nifty50 is likely to open down as Nifty Feb futures closed at 22,217.20 and Nifty March futures at 22,359.15. BSE Sensex, too, is likely to follow a similar path.

As global cues are negative with the US stocks and equities across Asia-Pacific region down, experts believe domestic markets will see profit taking at every rise.

Yum Restaurant India Private Ltd is likely to divest its entire stake (4.4 per cent) in Devyani International Ltd via block deals, per reports. The floor price is likely to be ₹153.5 a share, as against Tuesday’s closing price of ₹165.85 on the BSE, the report added.

The board of Union Bank of India on Tuesday approved a fund raising plans of ₹3,000 crore through Qualified Institutions Placement (QIP). The funds will utilised to fund its business growth.

Aditya Birla Group company Novelis Inc has filed papers with the US market regulator Securities and Exchange Commission relating to the proposed initial public offering of its common shares. Novelis, the leading aluminium solutions provider, is the wholly owned subsidiary of Hindalco Industries. The proposed IPO of Novelis is completely offer for sale by the existing promoter Hindalco Industries. On Tuesday, Novelis said that it confidentially submitted a draft registration statement on Form F-1 with the SEC relating to the proposed initial public offering.

Wipro on Tuesday said it expanded its partnership with IBM to offer new Artificial Intelligence (AI) services and support to clients. The company has introduced the Wipro Enterprise Artificial Intelligence-Ready Platform, leveraging IBM watsonx, which will allow clients to create enterprise-level, fully integrated, and customised AI environments.

Swan Energy on Tuesday announced opening of its ₹4,000 crore fund raise through a qualified institutional payment (QIP), with a starting price fixed at ₹703.29 per share. In a stock exchange filing, Swan said pricing of the issue would be decided on February 26.

The Competition Commission of India (CCI) on Tuesday said it approved Minda Corporation’s proposed 8.79 per cent stake purchase in Pricol. Minda Corporation is in the business of manufacturing of auto components and caters to Original Equipment Manufacturers (OEMs) and Tier-1 in various segments in India. The proposed combination relates to an acquisition of up to 8.79 per cent (approx.) of the equity share capital of Pricol by Minda, according to a release. Pricol manufactures automobile components for OEMs, Tier-1 and replacement markets across India and globally. Deals beyond a certain threshold require approval from the regulator CCI.

Sun Pharmaceutical Industries Ltd has announced that it would acquire a 16.33 per cent stake in Surgimatix, Inc, a US-based firm for $3.05 million (over ₹25 crore). Surgimatix is engaged in the business of developing a proprietary soft tissue fixation device for laparoscopic hernia repair and other minimally invasive surgeries. It is yet to commence its commercial operations, Sun Pharmaceutical Industries said in a regulatory filing.

The board of ABB India has recommended a final dividend of ₹23.80 a share of face value of ₹2 each for the financial year ended December 31, 2023, subject to shareholders’ approval at the ensuing Annual General Meeting.

Godrej Industries Limited (Chemicals) has been ranked on the leadership index in the CDP’s Climate Disclosure Index 2023. “Besides the public disclosure of our targets, strong governance structure, risk management strategies and measures implemented to mitigate the impacts of climate change we scored higher on our scope 3 emissions and climate change opportunities disclosure that helped us in scoring “A-” in Climate Change disclosures,” said the company in a notice.

Cian Healthcare has won a tender for supply of drugs and medicines to Pharmaceutical and Medical Device Bureau of India (PMBI) for a period of two years. The estimated value of contract awarded is ₹4.78 crore.

Weak growth across geographies dent performance

(CIE Automotive India, Mkt Cap $2.2b, CMP ₹473, TP ₹540, 14% Upside, Buy)

EU light-vehicle production to decline ~3% YoY in CY24E

- CIEINDIA reported a muted performance in 4QCY23 due to lower-than-estimated growth in both India and EU. The demand outlook for EU remains weak as the production of light-vehicles is expected to decline ~3% YoY in CY24, along with an anticipation of muted growth in Metalcastello for the next few quarters.

- We cut our CY24E/CY25E EPS by 4%/3% to factor in weakness in the underlying markets. Reiterate BUY with a TP of ₹540 (based on ~18x CY25E consol. EPS).

Q4FY24 QTD earnings run-rate of OMCs is steady and somewhat better than expectations so far, thereby indicating a 3-5% earnings upgrade to our FY24E earnings for IOCL, BPCL, and HPCL, respectively. 

Auto fuel price freeze continues with crude largely range-bound at $80-85/bbl, while refining spreads hold steady. The continued momentum in OMC stocks is likely to be fuelled by a stable macro environment, leading to visibility of a stellar FY24E with oil PSUs trading at attractive valuations. 

For FY25, we have built-in a sharp ~50% cut to earnings YoY, led by cool-off in refining spreads and normalization of marketing margins. While we have valued OMCs on 6-6.2x Dec-25E mid-cycle EV/EBITDA multiple, further re-rating cannot be ruled out on the back of post-election optimism and resumption of steps like frequent (or even daily) revision in retail prices (to maintain margins) and disinvestment agenda. We, therefore, maintain our constructive stance in this space

Capacity expansion to propel growth

(Jindal Steel & Power, Mkt Cap $9.3b, CMP ₹760, TP ₹900, 18% Upside, Buy)

- The ongoing capacity expansion at Angul (Odisha) will significantly enhance Jindal Steel and Power’s (JSP) crude steel capacity by over 65% to 15.9mt. The planned expansion, which is expected to be completed by 3QFY26, will catapult JSP to the fourth largest steel manufacturer in India.

- Along with the capacity expansion, JSP plans to strengthen its raw material integration, increase the share of CPP, increase the share of flat steel, and undertake product enrichment. The planned capex will result in volume growth and a reduction in structural costs.

- JSP recently commissioned and dispatched its first rake from 6mt HSM at Angul in a record period of 30 months. This achievement enables the company to cater to key sectors such as automobile, construction, oil, GP, color coating, etc.

- In Oct’23, JSP started production at Gare Palma IV/6 mines, which supply coal to its Raigarh facility. At the current mine, JSP has already mined ~1mt of coal in 3QFY24 and as production ramps up, the mine can see increased raw material integration, which helps JSP to accelerate its capacity expansion.

- In addition, JSP has also commenced production at its Utkal C coal block within a record time of 12 months and the entire incremental benefits from this mine are expected to accrue in FY25E, which should further strengthen RM integration.

- JSP has followed a prudent deleveraging policy to strengthen its balance sheet. With net debt of ~INR91b in 9MFY24 and a net debt-to-EBITDA ratio at a comfortable level of 0.9x, JSP has one of the strongest balance sheets among the domestic ferrous manufacturers. The stock trades at 5.2x FY26E EV/EBITDA and 1.3x FY26E P/B. We reiterate BUY on the stock with a TP of ₹900 (6x FY26E EV/EBITDA).

- Key downside risk: A delay in the commissioning of the remaining coal mines may delay cost synergies and margin improvement.

GR Tarakote Sanjichhat Ropeway Pvt Ltd, wholly owned subsidiary of G R Infraprojects Limited, has executed the concession agreement with Shri Mata Vaishno Devi Shrine Board, Katra (J&K) on 20th February 2024 for Design, Engineering, Construction, Development, Finance, Operation & Maintenance of Passenger Ropeway between Tarakote & Sanjichhat at Katra (J&K), on BOOT Basis.

The estimated project cost is ₹200 crore.

ABB India has reported total income of ₹2835.08 crore during the period ended December 31, 2023 as compared to ₹2846.01 crore during the period ended September 30, 2023.

The company has posted net profit / (loss) of ₹338.66 crore for the period ended December 31, 2023 as against net profit / (loss) of ₹362.87 crore for the period ended September 30, 2023.

The company has reported EPS of ₹15.98 for the period ended December 31, 2023 as compared to ₹17.12 for the period ended September 30, 2023.

ESAF Small Finance Bank has received ISO 9001:2015 certification for its operations. The International Organisation for Standardisation (ISO), a global body headquartered in Geneva, grants this certification to organisations that exhibit an unwavering commitment to international standards, specifically in Quality Management Systems.

Rating: ACCUMULATE

Target Price : ₹165

Better performance than global peers

DASH lags ZOMATO in terms of revenue and GOV growth in Q4CY23

US-based food ordering & delivery platform DoorDash (DASH US, CMP: USD 116, Not Rated) reported 27% YoY revenue growth to $2.3bn in Q4CY23 whereas Zomato (ZOMATO IN) food delivery adjusted revenue grew 29.4% YoY to ₹20.3bn in Q4CY23, higher than DASH. DASH also reported lower gross order value (GOV) YoY growth at 22% vs ZOMATO’s 27%. DASH’s GOV and revenue growth is attributed to a 23% YoY increase in total orders, growing the number of users (monthly active users [MAU] grew to 37mn), higher average order frequency, and better advertisement revenue. DASH is set to invest aggressively in CY24, especially in new verticals, such as grocery, and global markets.

Improvement in profitability of ZOMATO similar to DASH

DASH profitability has been improving across business verticals, with revenue up 31.2% YoY in CY23 while adjusted EBITDA as a percentage of GOV grew 115bp YoY to 1.8%. Contribution margin has expanded steadily to 3.9% in Q4CY23 and 3.7% in CY23 whereas ZOMATO contribution margin rose 200 bp YoY to 7.1% in Q4FY24. Both DASH and ZOMATO are strategically emphasizing acquisition of repeat customers through their respective subscription programs, DashPass and Zomato GOLD, to potentially reduce customer acquisition cost while concurrently enhancing margin and overall profitability. Additionally, both platforms are focused on increasing monthly active users, bolstering order frequency, and elevating average order value (AOV). By prioritizing these aspects, DASH and ZOMATO aim to build a loyal customer base and foster sustainable growth.

Robust growth in grocery delivery business for both companies

The grocery delivery vertical of DASH saw huge growth in CY23 with higher user retention and better unit economics. DASH has signed 0.1mn grocery stores in North America in the past three years. Similarly, GOV growth for ZOMATO’s delivery service Blinkit surged to 103% YoY in Q3FY24, helped by increased transacting customers, up 74.1% YoY in Q3FY24, and higher AOV, up 14.8% YoY in Q3FY24. In terms of growth outlook, DoorDash expects GOV to reach ~USD 76bn (growth of 13.8% YoY) with adjusted EBITDA margin (as % of GOV) expected to grow 150 bps YoY to 2.2% in CY24. Zomato, on the other hand, expects its topline to grow by 50% over the next couple of years with adjusted EBITDA margin (as % of GOV) of the food delivery business to reach 5% over the same period.

Valuation: reiterate Accumulate with a TP of ₹165

We retain our Accumulate rating with a SOTP-based TP of ₹165. We value the food delivery business at 50x one-year forward EV/EBITDA, Blinkit at 6x one-year forward EV/sales and 2.5x to Hyperpure.

Given the new renewable purchase obligation (RPO) and energy storage obligations (ESO) norms, there is an increased impetus on capacity augmentation of energy storage systems (ESS). Assuming 4 hours of storage per GW, India requires ~12 GW storage capacity in FY24, which is likely to increase further to ~70 GW by FY30.

The industry would necessitate ~₹14 lakh crore incremental debt financing for the installed Renewable Energy (RE) capacity to reach 425 GW, pumped storage projects (PSP) capacity of 19 GW and battery-enabled storage solutions (BESS capacity) of 42 GW by 2030.

Levelised cost of storage from PSP remains competitive at ₹4.81 per unit as against ₹11.64 per unit from BESS.

Assuming a round-the-clock supply of RE, the landed cost from PSP is ~₹4.74 per unit as against ₹6.59 per unit from BESS. Significant technological advancements, cost economies and financing stimulus are needed to uplift BESS.

Fitch Ratings has affirmed the ‘BBB-’ ratings on the $400 million senior secured notes issued by the restricted group of India-based Adani Energy Solutions Limited (AESL, BBB-/Stable), previously known as Adani Transmission Limited. The Outlook is Stable.

The restricted group (AESL RG1) includes six co-issuers - Barmer Power Transmission Service Limited, Chhattisgarh-WR Transmission Limited, Hadoti Power Transmission Service Limited, Raipur-Rajnandgaon-Warora Transmission Limited, Sipat Transmission Limited and Thar Power Transmission Service Limited - and one non-issuing SPV, Adani Transmission (Rajasthan) Ltd (ATRL).

Mazars in India’s PE deal tracker report unveils a comprehensive overview of the Private Equity (PE) scenario in India during Q4 2023. The quarter recorded a bustling activity with 268 deals, amounting to $5.0 bn, showcasing the vibrancy of the PE sector. 

However, in terms of growth, the private equity investment activity during the quarter experienced a slowdown. While the number of transactions shrunk by 19.0% during the period, the total deal value witnessed a decline of 14.2% and reached $5.0bn. These insights not only dissect the current trends in the PE market but also offer valuable information for those keen on understanding the intricacies of the financial landscape.

Volatility Index

India VIX - 16.07

📌 Commodities

Brent Crude: $82.66

Gold USD Oz/10 gm: $2026.75 = INR 62165

Silver: INR 71408

Currency

₹/$: 82.97

US Dollar Index (DXY) - 104.13

10-Year Yield

7.26% GOI 2033: 7.09% (Old)

7.18% GOI 2033: 7.06% (New)

US 10-Yr Yield - 4.28%

DATE 20-02-2024

NIFTY SPOT 22196 +74 (+0.34%)

NIFTY FUT.FEB. 22217 VS 22160

NIFTY PREMIUM FEB. +21 VS +38

BANKNIFTY SPOT 47094 (+0.32%)

BANKNIFTY FEB. 47225 VS 46652

FII DATA IN CRORE

CASH FII -1335 & DII +1491

INDEX FUT +617 STOCK FUT -1704 

INDEX OPT -17767 STOCK OPT +166 

FNO TOTAL NET -18687 

\u0009

NIFTY HIGHEST OI (IN LACS)

CALL WEEKLY MONTHLY FEB. 

23000 -65, 23000 -61,

22600 -63, 22500 -26,

PUT WEEKLY MONTHLY FEB.

22000 -89, 22000 -43, 

22100 -66, 21000 -41, 

NIFTY HIGHEST OI ADD (IN LACS)

CALL WEEKLY MONTHLY FEB. 

22550 +20, 23000 +03,

22200 +15, 23500 +03, 

PUT WEEKLY MONTHLY FEB.

22100 +20, 22100 +05,

22200 +18, 22000 +05,

HIGHEST OI BANKNIFTY (IN LACS) WEEKLY

CALL PUT 

48000 +38, 46000 +44, 

HIGHEST OI ADD TODAY (IN LACS) WEEKLY

CALL PUT

48000 +15, 47000 +26,

PUT CALL RATIO

NIFTY – 1.24

BANKNIFTY-1.45

INDIA VIX

16.07 VS 16.02

NSE ADV/DEC. DATA

Advances +1255

Declines -1290

Unchang. 101

52-WK H/L(NSE)

HIGH- +161, LOW- -16,

FNO BAN STK 21-Feb.(OI%) 

BALRAMCHIN 110 

BANDHANBNK 87 

BIOCON 93 

CANBK 86 

GMRINFRA 97 

GNFC 99 

HINDCOPPER 87 

INDIACEM 82 

INDUSTOWER 96 

NATIONALUM 92 

RBLBANK 107 

SAIL 80 

ZEEL 87

Recent Interviews

As of 17:54 PM Tuesday 20 February 2024

Balaji Amines: D Ram Reddy, MD

Balaji Amines Subdued Q3

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

Brigade Ent: Pavitra Shankar, MD

We Will Continue To Invest In Land & New Projects: Brigade Enterprises

https://www.youtube.com/watch?v=b53bzqKYIt8

Deepak Nitrite: Maulik Mehtav, CEO

Key Levers For Growth; Uptick In Margins Likely?

https://www.youtube.com/watch?v=-C-wib0knzI

Five Star Business F: Srikanth Gopalakrishnan, CFO

Expect 25-30% Growth In Disbursals In FY25: Five-Star Business Finance

https://www.youtube.com/watch?v=9Px6ZM92_h8

Gulf Oil Lubric: Ravi Chawla, MD

Looking At 14-16% As The Next Level For Margin Expansion: Gulf Oil Lubricants

https://www.youtube.com/watch?v=47ZUrkcVytw

IRCTC: Sanjay Kumar Jain, CMD

Discussing Bharat Gaurav Trains With More States: IRCTC

https://www.youtube.com/watch?v=ufZk_0RM3b8

MM Forgings: Vidyashankar Krishnan, MD

Expect Both Domestic And Exports To Grow 10-12% In FY25: MM Forgings

https://www.youtube.com/watch?v=djaC5AKIS38

PSP Projects: PS Patel, CMD

Target ?3,000 Cr Revenue And ?3,600 Cr Order Inflow In FY25: PSP Projects

https://www.youtube.com/watch?v=zz2qMnD-jYE

Shree Renuka: Atul Chaturvedi, Executive Chairman

Punjab & Haryana Farmers Should Be Encouraged To Grow More Mustard During Rabi: Shree Renuka Sugars

https://www.youtube.com/watch?v=1lnCn4yd3Rc

Glenmark: VS Mani, ED and Global CFO

Not Looking At Novartis’s India Biz Or Any Other M&A Plan As Of Now: Glenmark Pharma

https://www.youtube.com/watch?v=sxFsHZ2ZedI

Events today

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

Results today

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

Rio Tinto Plc (Pre market) (Sector- Metal)

Analog Devices, Inc. (Pre market) (Sector- Technology) 

Verisk Analytics, Inc. (Pre market) (Sector- Technology)

Exelon Corporation (Pre market) (Sector- Power)

Vertiv Holdings, LLC (Pre market) (Sector- Capital Goods)

Garmin Ltd. (Pre market) (Sector- Technology)

NVIDIA Corporation (Post market) (Sector- Technology)

Synopsys, Inc. (Post market) (Sector- Technology)

Suncor Energy Inc. (Post market) (Sector- Energy)

ANSYS, Inc. (Post market) (Sector- Technology)

Nutrien Ltd. (Post market) (Sector- Chemical)

ICON plc (Post market) (Sector- Healthcare)

Rivian Automotive, Inc. (Post market) (Sector- Automobile)

Nordson Corporation (Post market) (Sector- Capital Goods)

Host Hotels & Resorts, Inc. (Post market) (Sector- Hotel)

Marathon Oil Corporation (Post market) (Sector- Energy)

Avangrid, Inc. (Post market) (Sector- Power)

Texas Pacific Land Corporation (Post market) (Sector- Realty)

The short-term outlook is bullish for Deepak Nitrite. A fresh leg of upmove within the overall uptrend has just begun a week ago. The 3.3 per cent rise on Tuesday indicates that the upmove is gaining momentum.

Moving average cross overs on the daily chart also strengthens the bullish case. All these factors indicate that the downside could be limited, and dips are likely to be bought. Strong support is in the ₹2,275-2,250 region.

Click here to know know intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS, and SBI

Oil steadied as investors juggled signs of tighter supplies with elevated tensions in the Middle East and a still-shaky demand outlook, per a Bloomberg report.

West Texas Intermediate edged higher above $77 a barrel after dropping 1.8% on Tuesday from Friday’s close. Brent was near $82. OPEC+ producer Russia met its target for export cuts in January, complying with an earlier pledge to the group, according to government data. Chinese figures showed that while trips increased over the Lunar New Year holidays, tourists spent frugally, the report added.

Stocks in Asia fell Wednesday, after traders weighed big tech prospects ahead of Nvidia Corp.’s hotly anticipated earnings that dragged Wall Street away from its all-time highs, per a Bloomberg report.

Japan’s equity benchmark traded lower led by declines in the tech sector. Shares in Australia and South Korea also fell. 

Futures indicated declines in Hong Kong. The Nasdaq 100 dropped almost 1% while the S&P 500 fell below 5,000. Nvidia sank more than 4% in the run-up to its results later Wednesday, where traders will be looking for confirmation the chipmaker can meet the lofty expectations set by the artificial-intelligence boom, the report added.