Share Market Highlights 5 February 2024: Sensex falls 354 pts; Nifty settles above 21,750 pts; Tata Motors gains 5.8%, UPL slumps over 10%

Benchmark Sensex fell back by 354 points on Monday due to selling in index major Reliance Industries, Bharti Airtel, and Maruti amid weak trends from Asian and European markets.

The rupee depreciated 8 paise to settle at 83.06 (provisional) against the US dollar on Monday, as strengthening American currency overseas and negative sentiment in the domestic equity markets weighed on the local unit. However, the downward trend in the global crude oil prices supported the domestic unit and restricted its decline, forex traders said.

Aluminium prices have been coming down since the beginning of this month. The Aluminium Futures contract on the Multi Commodity Exchange (MCX) reached a high of ₹204.75 per kg on Wednesday last week and has come off from there. It is currently trading at ₹200.25 per kg.

BSE Sensex is down by 0.49% to 71,731.42 points and NSE Nifty is down by 0.35% to 21,777.25 points

Sundaram Finance reports a 24% rise in net profit at ₹300 crore in the December 2023 quarter when compared with ₹243 crore in the year-ago period. Its disbursements grew 15% to ₹6,524 crore when compared with ₹5,653 crore. For the 9-month period of this fiscal, net profit rose 23% at ₹948 crore when compared with ₹772 crore in 9M FY23. Disbursements grew 27% at ₹19,954 crore (₹15,707 crore in 9M FY23).

A total of 4,093 stocks were actively traded, 1,809 advanced, while 2,135 declined and 149 stocks remained unchanged where 537 stocks hit a 52 week high and 28 stocks hit a 52 week low at 3.17 pm on the BSE

Top losers include Upl (-10.54%), ICICI Bank (-0.18%), State Bank of India (-0.91), Kotak Mahindra Bank (-0.75%), Reliance industries (-0.60%)

NSE Nifty was down by 0.41 per cent to 21,788.70 or 75.10 points, while the BSE Sensex was at 71,735.40 down by 0.64 per cent or 350.23 points.

Swastik Safe Deposit and Investments Limited announced that Nandini Piramal has resigned from her position as a Director, effective September 27, 2023, citing other preoccupations and commitments.

Aurionpro Solutions Limited announced Q3 FY24 results, with a 37% YoY revenue growth, reaching ₹231 crore. 

The EBITDA for Q3 FY24 stands at ₹51 crore, reflecting a 38 per cent YoY increase, and PAT surges by 45 per cent YoY to ₹38 crore. 

Shares rose by 1.01 per cent to ₹2275 on the BSE.

Internationally, we’re at a point where interest rates are likely at their highest and inflation is moderating. Anticipate ongoing investment-driven policymaking, particularly benefiting capital goods, cement, materials, etc. 

India’s domestic macro trends positively, with robust conditions in corporate and retail segments, foreseeing continued health in corporate earnings. Valuations, especially in the mid and small-cap sectors, exceed historical averages. 

The market faces risks such as election-related volatility, a global economic slowdown, potential inflation resurgence, prolonged geopolitical tensions, or delays in the rural economy’s recovery.

Intellect Design Arena Ltd.’s Global Consumer Banking has collaborated with NASFUND Contributors Savings & Loan Society Ltd. to deploy the Intellect Digital Core (IDC) as their core banking system. The shares registered a 3.45% increase, reaching ₹925.65 on the BSE.

Bajaj Finserv AMC is gearing up to unveil the Bajaj Finserv Large and Mid Cap Fund, a unique open-ended equity scheme that stands out for its utilization of a Moat-based investment strategy.

Pantomath Capital Advisors names former Centrum Capital ED Ajay Jain Managing Partner, Investment Banking. He will oversee Business Development in the Investment Banking Division, leveraging two decades of experience.

Alpex Solar Limited, a leading Indian solar systems manufacturer, is set to launch its IPO on February 8, 2024, with the anchor portion opening on February 7 and closing on February 12. 

The company aims to raise around ₹74.52 crore at the upper band, targeting a listing on NSE Emerge. The issue’s price band is set at ₹109 to ₹115 per share, with a lot size of 1,200 equity shares.

Kilburn Engineering Limited has obtained orders amounting to ₹42.55 crores, encompassing contracts for a Hydrogen Fluoride Reactor package, Rotary Dryers, VFBD for wet clay, and Tea Dryers. This led to a 4.99 per cent increase in shares on the BSE, reaching ₹302.45.

Life Insurance Corporation Ltd. has unveiled “LIC’s Index Plus,” a new product effective February 6, 2024. This Unit Linked, Non-participating, Individual Life Insurance Plan is designed for the domestic market, leading to a 7.46 per cent surge in shares on the BSE to ₹1015.10.

Real estate consultant Anarock on Monday announced it has raised ₹200 crore from 360 One Asset Management for expansion and growth of its business amid strong consumer demand for residential and commercial properties.

“We have raised ₹200 crore as equity funding from 360 One Asset. The amount will be utilised for expansion and growth of our business. We will also spend a lot on technology upgradation to provide better service to our clients,” Anarock Chairman Anuj Puri told PTI.

Diagnostics firm Thyrocare Technologies on Monday said it will acquire Chennai-based Think Health Diagnostics and a related entity for an undisclosed amount.

The company has entered into a share purchase agreement with Think Health Diagnostics and their existing shareholders for the deal, it said in a statement.

The strategic acquisition helps Thyrocare provide ECG services at home, it added.

Tata Consultancy Services (TCS) partners with Europe Assistance to enhance its IT operating model, deploying TCS’s AI platform ignio AIOps. 

Shares rose by 1.18 per cent to ₹4013.05 on the BSE.

Ahluwalia Contracts (India) has secured a contract from Emaar India Ltd, amounting to ₹394.36 crore. The company’s stock jumped 6.73 per cent on the NSE, trading at ₹923.55 as of 11:39 am on Monday.

The stock had hit a 52-week high at ₹933.40.

As per the stock exchange filing, Ahluwalia Contracts (India)‘s contract with Emaar India pertains to the construction of residential towers and clubhouse works for PH-I & II (T1, T2, T3, T4, NTA, Club & EWS) at Urban Oasis, Sector-62, Gurgaon, Haryana. The contract is to be executed in 30 months.

The BSE Sensex traded at 72,251.80, up by 166.17 points or 0.23 per cent as of 12.21 pm, and the Nifty 50 traded at 21,929.85, up by 76.05 points or 0.35 per cent.

Nifty Pharma hit a high in today’s trade, rising by 2.07 per cent to 18,343.80. The top gainers among Nifty pharma stocks were Pfizer (higher by 2.14 per cent); Natco Pharma (1.40 per cent); Sun Pharma (1.34 per cent); and Cipla (1.26 per cent).

Varun Beverages Limited reported financial results for Q4 and CY2023 with a 21% YoY revenue growth, reaching ₹26,677 million in Q4. The company’s EBITDA increased by 30%, reaching ₹36,095 million, while the Profit After Tax witnessed a growth of 36% to ₹21,018 million for the same period. Shares up by 0.15% to ₹1287.60 on the BSE.

The index fell off the resistance at 46,600 last Friday. This is a strong barrier where both the 20- and 50-day moving average coincides. It is currently hovering around 45,900.

Ramkrishna Forgings Limited secured a $13.16 million USD contract from a North American axle manufacturer. The four-year agreement focuses on supplying rear axle components and services for the off-highway sector. Shares were down by 0.26% to ₹768.75 on the BSE.

The government on Monday sought Lok Sabha’s approval for a net additional spending of Rs 78,673 crore in the current financial year.

The second batch of supplementary demands for grants for 2023-24 fiscal was tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman.

The supplementary demands for grants includes a gross additional spending of over Rs 2 lakh crore, which would be matched by savings of over Rs 1.21 lakh crore.

The proposal involves net cash outgo aggregating to Rs 78,672.92 crore, said the document tabled in the Lok Sabha. - PTI

Bharti Airtel expands its retail footprint in Kolkata with 34 new stores. The next-gen Airtel stores aim to provide services, including mobile, broadband and DTH. shares were down by 2.56% to ₹1121.15 on the BSE.

Megatherm Induction is engaged in the business of manufacturing of induction heating and melting products. The public Issue was of Rs.3,855.60 lakhs at an issue price of Rs.108 per share.

LIC shares cross ₹1,000 for first time, hit a high of ₹1,028 on the NSE. It currently ruling at Rs 1008, up 6.5 per cent 

A total of 3,998 stocks were actively traded, 2,078 advanced, while 1,751 declined and 169 stocks remained unchanged where 506 stocks hit a 52 week high and 26 stocks hit a 52 week low at 12 pm on the BSE

Top gainers on the BSE at 12 pm include - UCO Bank (16.89%), Sjvn (16.98%), Indian Overseas Bank (14.75%), General Insurance corporation of India (14.40%), NHPC (11.48%)

Top losers on the BSE at 12.08 pm include - One 97 communications Ltd (-10%), UPL (-9.47%), Tilaknagar industries (-7.60%), Bank of India (-6.20%), Greenlam Industries (-5.94%)

Retail AutoEVMart, owned by Greaves Cotton Ltd., broadens its electric three-wheeler range through a partnership with Zero21, an energy solutions company in Hyderabad. 

Zero21’s electric auto rickshaws will now be available at more than 100 AutoEVMart stores nationwide. 

On the BSE, shares rose by 1.41 per cent to ₹168.55.

Mphasis Ltd., in partnership with United Way Bengaluru (UWBe), has initiated a mangrove restoration project on World Wetlands Day in Pulicat, Tamil Nadu. 

The goal is to restore around one million mangroves by 2027, combating their decline and boosting the local economy through improved shrimp and fish production. 

On the BSE, shares dipped by 1.47 per cent to ₹2523.65.

Chintan Mehta’s views on commodities:

• Gold prices decline influenced by a rebound in US Treasury yields and a stronger US dollar index.
• US nonfarm payrolls report reveals a significant increase, boosting confidence in the economy.
• Federal Reserve Chairman Jerome Powell’s statements reduce expectations of rate cuts in March.
• Geopolitical tensions in the Red Sea region contribute to support for gold prices.
• Market awaits Services PMI data and monitors escalating geopolitical tensions.
• Despite a potential correction to around ₹61,000, gold is considered a favourable long-term investment.
• Gold may consolidate at current prices after a possible rally to ₹63,500.

Birlasoft Ltd., a CK Birla Group subsidiary, introduced Cogito, a Generative AI platform for process automation and content generation in enterprises. BSE shares declined by 0.32 per cent to ₹842.05.

Crude oil futures traded higher on Monday morning as US signalled further strikes on the targets of Iran-backed Houthis in the Middle East region.

At 9.53 am on Monday, April Brent oil futures were at $77.56, up by 0.30 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $72.39, up by 0.15 per cent.

February crude oil futures were trading at ₹6023 on Multi Commodity Exchange (MCX) during initial trading against the previous close of ₹6033, down by 0.12 per cent, and March futures were trading at ₹6054 as against the previous close of ₹6058, down by 0.07 per cent.

Nifty 50 has begun the week on a positive note. The index is currently trading at 21,943, up 0.4 per cent.

The price action on the intraday chart indicates that Nifty is getting support around 21,800. That keeps the chances high of the index moving up towards 22,100-22,150 during the day.

Titagarh Rail Systems Limited posted a Q3FY24 performance, witnessing a standalone revenue increase of 25% and a notable 91% rise in profits. The company’s order book currently amounts to ₹27,466 crore.

Bank Nifty opened today’s session almost flat at 45,962 versus last week’s close of 45,971. But the index drifted lower post opening and is now at 45,820, down 0.3 per cent.

The rupee depreciated 4 paise to 83.02 against the US dollar in early trade on Monday, tracking a strong American currency and rising crude oil prices in the international market.

However, positive cues from the domestic equity markets and inflow of foreign funds supported the Indian currency, forex traders said.

Investors will also keep a close watch on the Reserve Bank’s monetary policy decision to be announced later this week, they said.

Ahluwalia Contracts Ltd secured a project worth ₹394.36 crore from Emaar India Ltd. The contract involves the construction of Residential Towers and Club House works for Urban Oasis in Gurgaon, Haryana, to be executed over 30 months. Shares up 5.77% to ₹914.90 on the BSE.

India’s dominant services sector expanded at the fastest pace in six months in January on robust demand, according to a business survey which also showed output prices rose at their slowest rate since February 2023 and optimism was at a four-month high.

That indicated India would continue to hold its title of fastest growing major economy over the coming months, reducing pressure on the government and allowing it to focus on fiscal consolidation over the coming year.

The HSBC final India Services Purchasing Managers’ Index , compiled by S&P Global, jumped to 61.8 last month from December’s 59.0. - Reuters

LIC Housing Finance expects 15 pc growth in loan book in FY25, with focus to be on affordable housing segment 

T Adhikari, Managing Director & CEO said, LIC HFL expects affordable housing portfolio to grow from 8-10 per cent of overall portfolio to 20-25 per cent in two years. It has opened 44 new cluster offices to inject efficiency in underwriting, improving TAT (turnaround time) and taking quick decisions.

Larsen & Toubro Ltd.’s hydrocarbon division secured an onshore project from IndianOil Adani Ventures Limited, encompassing engineering, procurement, construction, and commissioning of Offsite Tankages and associated facilities. Shares down by 0.01% to ₹3377.60 on the BSE.

For a third successive trading day post the RBI ban, Paytm shares lock in the lower circuit. It’s down 10% hitting a 52-week low of Rs 438.35 a share

Waaree Renewable Technologies Limited secured a Letter of Award for an EPC project of a 412 MWp / 335 MWac Solar power plant. The order, valued at ₹547.5 crore, includes operations and maintenance for two years. Shares up by 5% to ₹4444.75 on the BSE.

Taylormade Renewables Ltd. announced trials of its patented TRL Rain technology for treating effluents from Sabic Petroleum Refinery. Shares up by 4.04% to ₹701.15 on the BSE.

VA TECH WABAG Ltd. secured a USD 33.5 Million order for an Industrial Wastewater Treatment Plant (IWWTP) at Ras Tanura Refinery in Saudi Arabia. It involves treating effluents from Desalter Effluent, Tank Farms, and Oily Wastewater sumps using biological treatment, Filtration, Reverse Osmosis, and Wet Air Oxidation technologies. Shares up by 5.55% to ₹697.40 on the BSE

RailTel Corporation of India Ltd. secured an order from Western Railways worth ₹124.90 crore for implementing unified communication infrastructure. The order includes IPMPLS LAN Infra, VOIP exchange, IP-based control communication, and UTN replacement over Western Railway, to be executed by August 3, 2025. The shares were up by 0.84% t0 ₹422.55 on the BSE.

Sunrise Efficient Marketing Limited (SEML) partnered with GS Caltex, to diversify into the automotive oil segment. Shares down by 0.57% to ₹105 on the BSE.

Silver prices fell as the dollar climbed higher and treasury yields moved up after data showing bigger than expected addition in U.S. non-farm payroll employment in the month of January dashed hopes of an early rate cut by the Federal Reserve. The Labor Department’s data showed non-farm payroll employment spiked by 353,000 jobs in January compared to economist estimates for an increase of about 180,000 jobs. Fed Chair Jerome Powell dismissed the idea of lowering interest rates in the spring, but voiced confidence that inflation would return to the 2% target.

Gold dropped dollar index rose above 104 as the US economy’s resilience and hawkish signals from the Federal Reserve further dented sentiment around interest rate cuts. Data showed that the US economy added 353K jobs in January, accelerating from an upwardly revised 333K rise in December and far exceeding market expectations for a 180K advance. Traders now reduced bets for a March rate cut to just 20% and see roughly 137 basis points in total easing this year, down from 150 bps at the end of last year.

Key economic data slated for release includes German Trade Balance, German Final Services PMI from Euro Zone and ISM Services PMI from US Zone.

BANK NIFTY opened higher, scaled a high of 46,892 and witnessed sharp profit booking to decline by 900 points from the high to close near the low point of the day.

The crossover of 46,500 levels gave a intraday breakout but failed to sustain and it would be key to cross for the positive trend 

RSI is piercing upwards crossing its average line and other key technical indicators are in positive momentum. 

Bank Nifty highest call OI has moved to 46,500 CE while on the downside moved higher to 45,500 for the put OI for the weekly expiry.

NIFTY-50 has closed at an all time high on the weekly chart and we continue to remain positive till it does not breach 21,400 levels on the downside.

A doji candle on the daily charts indicates resistance at 22000-, 22,100 levels while on the downside the support would be at 21,630-21,650 levels. 

RSI is witnessing and trending above the average line and we expect the momentum to continue over the next few days. 

Highest call OI is at 22,000 strike while on the downside the highest put OI has moved higher to 21,400 for the weekly expiry.

Gold declined 1% to $2039/ounce after a hotter-than-estimated jobs report reinforced Federal Reserve Chair Jerome Powell’s wait-and-see approach to monetary easing.

Brent Crude decline 2% to below $78/bbl as negotiations advance for an agreement to pause the Israel-Hamas war in what could be a crucial step toward ending the conflict

Focus Today – Singapore arbitrator lets Zee Entertainment approach NCLT to enforce Sony merger deal. ADR/GDR – ICICI Bank down 2%, HDFC Bank down 3%. Both Infosys and Wipro up 1% each, SBI down 1%. Reliance up 2%. Results - Bharti Airtel, Varun Beverages, Ashok Leyland, BSE Limited, Tata Chemicals

US market closed on a record high, mixed bag opening in the Asian markets, oil price fell to 1-month low, growth oriented favorable Union Budget and impressive quarterly results announced by Tata Motor and IndiGo, may open domestic equity market on a positive note. US market surged up 2% after earnings beats from US mega-caps including Facebook-parent Meta Platforms Inc. and Amazon.com. Comments from Federal Reserve chief Jerome Powell that indicate a rate cut is unlikely in March supported stocks. However, hotter than expected US Job data lifted US 10-Year bond yield surged by 14bps to close 1-month high to above 4% and Dollar Index ended 2-month high at 4%. Gift Nifty is flat to negative while US Dow Future decline by 0.1% due to rising US Dollar Index. Market will focus on RBI credit policy to be released on Thursday. The markets responded positively to the budget as increased transparency emerged after Finance Minister Nirmala Sitharaman’s speech. Moreover, rally in the global markets, strong domestic micro data like manufacturing PMI surged to 4-month high, GST collection surged to above Rs1.7 lakh cr, cooling down inflation, impressive quarterly results, impressive auto monthly sales data in Jan. will be positive for the market sentiment. Oil market marketing stocks will be positive after Brent crude fell to 1-month low. Auto stocks will be in focus after Tata Motor reported strong Q3 results. Expects rally on PSU banks to continue due to bond yield falling to nearly 1-year low. 

Result Update - Vivek Kumar BUY INR 1,000

In 3QFY24, JLR reported EBITDAM of 16.2% was +70bps above JMFe. 130bps sequential margin improvement was led by favourable mix and higher operating leverage. India business (CV+PV) EBITDAM stood at 9.8%, 80bps above JMFe. Supply normalization aided JLR in reducing its order backlog to c.148k units. While the US market continues to be strong, demand environment in EU remain stable. Management indicated of higher marketing spends going forward to drive JLR’s order book. Focus is on achieving 10% EBIT margin by FY26 (vs. 8%+ in FY24) through better mix and higher operating leverage. Strong FCF generation is expected to support investments towards electrification at JLR and the company is on track to reduce net debt to <£1bn by FY24 end and turn net cash by FY25. TTMT’s EV portfolio is leading the domestic EV space. CV demand is expected to remain muted in the near-term. However, improving margins for both domestic CV and PV segments augurs well for overall profitability. Domestic business is also on track to turn net debt free. Maintain BUY with Mar’25 SOTP of INR 1,000 (standalone / JLR valued at 10x /2.5x EV/EBIDTA). Slowdown in key global markets remains a monitorable.

Result Update - Sameer Bhise BUY INR 800

SBIN reported a steady quarter with NII of INR 398bn (+0.8% QoQ, +4.6% YoY) as domestic NIMs declined -9bps QoQ at 3.34%. International NIMs was steady at +2bps QoQ at 2.21%. Higher opex from revision in wage provisions led to a PPoP of INR 203bn (+4.7% QoQ, -19% YoY). Credit costs remained lower at 0.21%, however revision of pension liabilities led to additional provisions worth INR 71bn which resulted in lower PAT of INR 91.6bn (-36% YoY,-36% QoQ). Loan growth was healthy (+5.2% QoQ, +15% YoY) at INR 35.2trln while deposits growth was soft at +1.6% QoQ, 13% YoY at INR 47.6trln. Loan growth was well-rounded across sectors and management maintained its growth guidance of 14-15% going ahead. Asset quality improved sequentially with GNPL of 2.42% (-13bps QoQ) and NNPLs of 0.64% (flat QoQ). PCR for the bank remains strong at 74.2%. Mgmt expects CET1 to reach c.11% by Mar’24 (from current levels of 9.1%) driven by strong profitability in FY24E (currently considering 9MFY24 PAT, CET-1 stands at 10.4%). We believe delivery of growth on guided lines, sustenance of NIMs near current levels and controlled asset quality parameters aiding controlled credit costs should lead to strong profitability going ahead. We build in RoA/ RoE of 0.94%/16% for FY26E. We value the core banking business at 1.2x FY26E P/BV and we arrive at our SoTP-based target price of INR 800. Maintain BUY.

Last week’s negativity has still not gone away, but we hope that the 83-82.9 region will hold. Alternate scenario sees 82.78, but falls beyond the same is less expected. Upsides may be limited to 83.06-83.14.

Nifty weekly contract has highest open interest at 23000 for Calls and 21000 for Puts while monthly contracts have highest open interest at 23000 for Calls and 21000 for Puts. Highest new OI addition was seen at 22100 for Calls and 21600 for Puts in weekly and at 22500 for Calls and 22000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 3.01%, decreased future index shorts by 2.31% and in index options by 24.64% increase in Call longs, 31.45% increase in Call short, 23.49% increase in Put longs and 47.50% increase in Put shorts.

Friday’s rejection trades in the face of record peaks should ideally lead to a full reversal aiming at the 21200s again, or a deeper dive to 20800. However, we would like to draw some inspiration from the successful push above the peaks of 23rd and 30th of January, both of which had seen heavy selling. This allows us to pin our hopes on the support clusters around 21720 or 21600 to allow bulls to regroup and avoid a full reversal that Friday has indicated. This would also encourage us to retain our upside objective of 22450-550 for now. 

International spot, futures and domestic futures of gold and silver tumbled on Friday after the U.S. Dollar and Treasury Yields rallied on Friday after upbeat jobs report. 

The US economy added 353K jobs in January 2024, compared to an upwardly revised 333K in December, and way above market forecasts of 180K.

The unemployment rate in the United States held at 3.7% in January 2024, unchanged from the previous month, while Average hourly earnings on US private nonfarm payrolls rose by 0.6%.

Markets are now pricing in a 15% chance of a March rate cut, down from a 53% ahead of the jobs data, according to CME’s FedWatch Tool.

The strong jobs report will make it harder for the FOMC to be confident that the recent improvement in inflation could be sustainable.

The Dollar also took support after Fed Chair Powell, in an interview repeated that it was likely too soon to have confidence to cut rates in March.

From an intraday perspective, international gold and silver prices started weaker this early Monday morning in Asian trade as the dollar and Treasury yields jumped after an upbeat U.S. jobs report dashed hopes for early interest rate cuts from the Federal Reserve.

In the upcoming week, investors will also closely watch for insights from Federal Reserve officials, along with key economic indicators such as ISM Services PMI and trade balance data.

Internationally, the range for COMEX April is $2,025 to $2,070, while that for COMEX March silver is $22.000 to $23.275.

Domestically, the range for MCX gold April is 62,000 to 62,700 while that for MCX silver March is 69,800 to 71,500. -- Sriram Iyer of Reliance Securities -- Sriram Iyer of Reliance Securities

International and domestic oil futures fell on Friday on concerns over weak demand.

The ongoing concerns about China’s economic recovery added to the downward pressure, with the IMF predicting a slowdown in growth over the next few years, impacting crude demand.

However, losses were capped as an unexpected surge in US hiring last month may ease some of the worries.

But, the dollar surged following the jobs report on expectations interest rates will stay high for longer and weighed on crude prices.

From an intraday perspective, international futures have started with small gains this early Monday morning in Asian trading as investors continued to monitor developments in the Middle East.

Intraday, the NYMEX WTI March futures could trade in band of $71.20 to $73.95, while MCX February crude futures could trade within 5,940 to 6,160.

International and domestic gas futures rebounded from lows to end with small gains on Friday.

Short covering emerged in gas futures Friday, but weather will be key in the short-term and move the markets.

From an intraday perspective, international futures have started with small cuts this early Monday morning in Asian trading as weather will be key driver.

Intraday, the NYMEX gas March futures could trade in band of $2.035 to $2.115, while MCX February crude futures could trade within 171 to 176 -- Sriram Iyer of Reliance Securities

International and domestic fell on Friday as the dollar index jumped to a seven-week high after strong U.S. payrolls data.

Adding downward pressure on top of patchy global industrial activity and concerns about demand in China.

Chinese shares registered their worst weekly drop in five years this week after cautious and piecemeal government stimulus measures to shore up the shaky economy.

Additionally, Copper inventories in SHFE warehouses rose 36% this week to 68,777 tons, the highest since July 2023 and weighed on prices.

Other metals on LME ended weaker on Friday and were set for a weekly decline amid mixed economic data globally and on signals that U.S. rate cuts will be delayed until later this year.

From an intraday perspective, international copper prices have started flat as the Dollar remained elevated this early Monday morning in Asian trade.

Additionally, concerns about weaker demand with the continued contraction of China’s factory activity in January will keep upside capped.

With most of the key triggers factored in prices could track the Dollar and data this week. ISM Services PMI and trade balance data are scheduled this week.

However, with China’s New Year holiday approaching demand and trading with could be muted this week and will keep any upside capped.

Intraday, the range for COMEX March copper is $3.805 to $3.837, while that for MCX copper February is 718 to 715.

Other Metals on LME started weaker this early Monday morning in Asian trade.

Intraday, the range for LME aluminium is $2,225 to $2,245, while that for MCX aluminium February is 200 to 203.

So that’s it from our side, thanks for listening. Have a pleasant day. -- Sriram Iyer of Reliance Securities

The Indian Rupee appreciated against the Dollar on Friday supported by upbeat risk appetite following the presentation of India’s federal budget and a fall in the U.S. bond yields and the Dollar Index in the previous session.

However, gains were capped as dollar demand from state-run banks likely on behalf of the Reserve Bank of India and importers.

The Rupee finally settled at 82.9175 against the U.S. dollar, compared to its previous close of 82.9650.

The domestic unit gained by 0.20% for the week.

Meanwhile, most Asian peers were stronger this Friday and also aided sentiments.

From an intraday perspective, the Indian Rupee could start weaker this Monday morning against the Dollar after a robust U.S. jobs report and comments by Federal Reserve Chair Jerome Powell prompted a plunge in the odds of an interest rate cut in March.

The NDF market is indicating that the Rupee could open around 83.0000 to 83.0200 against the Dollar compared with 82.9175 in the previous session and the range for the session is between 82.8500 to 83.1000.

Investors are now pricing in only a 15% probability that the Fed will cut rates at its next meeting in March.

The Dollar and the Bond Yields rose on Friday and remained elevated this Monday morning and will weigh on sentiments.

Most EM and Asian peers were weaker this early Monday morning and will weigh on sentiments.

Amongst other domestic pairs, EURINR, the GBPINR and the JPYINR could start weaker on Monday’s session.

Moving onto the overseas markets, the U.S. Dollar Index gained against the basket of currencies on Friday after data showed U.S. job growth in January surged well past expectations, while average hourly earnings increased the most since March 2022.

The Dollar also took support after Fed Chair Powell, in an interview repeated that it was likely too soon to have confidence to cut rates in March.

The Euro, the Sterling and the Yen tumbled against the Dollar on Friday, tracking the strength of the greenback.

From an intraday perspective, the U.S. Dollar Index extended gains against its major peers early Monday morning in Asian trade as the US economy’s resilience and hawkish signals from the Federal Reserve further dented sentiment around interest rate cuts.

ISM non-manufacturing PMI will be the key trigger this Monday.

The range for the Dollar Index is $103.20 to $104.35.

The Euro, the Sterling and the Yen started weaker against the greenback early Monday morning.

Germany trade balance and PMI number for Eurozone and Germany will be the key trigger this Monday.

The range for the Euro is $1.0700 to $1.0865, while that for the Yen is $146.85 to $149.20 and the Sterling is $1.2570 to $1.2730. -- Sriram Iyer of Reliance Securities

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

“The global construct for equity markets continues to be good with the mother market US doing well aided by a surprisingly strong economy. The latest data on job creation in January has again surprised with the addition of 3,53,000 jobs. There are no signs of the US economy tipping into a mild recession any time soon. This means that the Fed rate cuts expected this year are likely to be back-loaded. This has pushed up the 10-year bond yield again above 4% and the dollar index to 104. This might prompt some selling by FIIs. But the market momentum is good supported by strong DII and retail buying.

Among the recent results Tata Motors and Interglobe Aviation stand out and these stocks have more room to go up. RIL also is exhibiting strength.”

CapitaLand India Trust (CLINT) has signed a forward purchase agreement with Casa Grande Group to acquire three industrial facilities with a total net leasable area of 0.79 million sq ft at OneHub Chennai, India for a total purchase value of about Rs.268 crore. The transaction price includes CLINT’s partial funding for the lease of the project land and full funding for the project’s development, said the company.

Major gainers on the BSE at 9.30 am include - UCO Bank (12.73%), Nhpc Ltd. (11.50%), Mmtc Ltd. (9.82%), Sjvn Ltd. (7.42%), Tata Motors Ltd. (6.93%)

Major losers on the BSE at 9.30 am include - One 97 communications (-10%), Bank of India (-6.13%), Greenlam Industries (-6.47%), Upl (-5.90%), Tilaknagar industries (-5.71%)

Crude oil futures traded higher on Monday morning as US signalled further strikes on the targets of Iran-backed Houthis in the Middle East region. At 9.15 am on Monday, April Brent oil futures were at $77.61, up by 0.36 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $72.44, up by 0.22 per cent. February crude oil futures were trading at ₹6024 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6033, down by 0.10 per cent; and March futures were trading at ₹6054 as against the previous close of ₹6058, down by 0.07 per cent.

Indian benchmark indices, namely Sensex and Nifty, kicked off the week with a flat opening on Monday. In the early trading session, the 30-share BSE Sensex saw a drop of 25.74 points, reaching 72,059.89, while the NSE Nifty gained 5.25 points, reaching 21,859.05. The previous session witnessed the Nifty 50 achieving a record high, but the stronger-than-expected U.S. jobs data reduced hopes of an early Federal Reserve rate cut, impacting Asian markets. 

Pravesh Gour from Swastika Investmart underscores Nifty’s record high at 22,126, emphasizing the necessity to sustain this level for continual upward momentum, setting targets at 22,350 and 22,500. Bank Nifty is facing resistance at 47,000 after a bounceback from the 200-DMA. Immediate demand zones are noted at 45,700–45,400, with support at 45,000. FII’s long exposure in index futures remains at 33%, and the put-call ratio stands at 0.8.

According to Himanshu Marfatia of Incred Capital, the Indian stock market is gearing up for an election rally despite a provisional budget lacking growth focus. Optimism prevails due to an authoritative tone, forward-looking commitments, and growing confidence in the government’s electoral prospects. The Interim Budget showcases a drastic fiscal deficit drop, development priorities, and a vision for 2047. While a pre-election rally continues, risks include potential volatility and FIIs’ sell-off. The market cautiously balances positive signals with challenges influenced by Q3 results, premium valuations, bond yield impacts, and fiscal deficit concerns.

Nifty 50 hit an all-time high for the fifth time in 2024 on Friday, buoyed by gains in Reliance and IT stocks, and positive sentiment from the government’s fiscal prudence in the budget. Foreign portfolio investors purchased a net Rs 70.69 crore worth of shares on Friday, while domestic institutional investors added stocks worth Rs 2,463 crore, according to exchange data.

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(Nirmal Bang Retail Research) 

Result ahead of Expectation 

Revenue from Operations came at Rs. 2194.5 Cr (13% QoQ, 20.3% YoY) vs expectation of Rs. 2150.9 Cr, QoQ Rs. 1941.7 Cr, YoY Rs. 1823.8 Cr 

EBIDTA came at Rs. 109.4 Cr (-801.5% QoQ, -249.3% YoY) vs expectation of Rs. 47.3 Cr, QoQ Rs. -15.6 Cr, YoY Rs. -73.3 Cr 

EBITDA Margin came at 5% vs expectation of 2.2%, QoQ -0.8%, YoY -4% 

Adj. PAT came at Rs. 19.5 Cr vs expectation of Rs. -66.1 Cr, QoQ Rs. -102.9 Cr, YoY Rs. -195.7 Cr 

Quarter EPS is Rs. 0.3 

Stock is trading at P/E of -93.1x FY24E EPS 

(Nirmal Bang Retail Research) 

Result is in line with expectation (excluding one offs); higher opex growth was set off by lower credit cost; PBT came in line 

Advances came at Rs. 3519514 Cr (15% YoY, 5.2% QoQ) 

Net Interest Income came at Rs. 39816 Cr vs expectation of Rs. 40209 Cr, YoY Rs. 38069 Cr, QoQ Rs. 39500 Cr 

NIM came at 3.22% vs QoQ 3.29% 

Non Interest Income came at Rs. 11459 Cr vs YoY Rs. 11468 Cr, QoQ Rs. 10791 Cr 

PBP came at Rs. 20336 Cr vs expectation of Rs. 22422 Cr, YoY Rs. 25219 Cr, QoQ Rs. 22834 Cr 

Provisions came at Rs. 688 Cr vs expectation of Rs. 2709 Cr, YoY Rs. 5761 Cr, QoQ Rs. 115 Cr 

Credit Cost came at 0.1% vs QoQ 0.0% & YoY 0.8% 

PBT before exceptional items came at Rs. 19648 Cr vs estimate of Rs. 19713 Cr, YoY Rs. 19459 Cr, QoQ Rs. 22718 Cr 

PAT came at Rs. 9164 Cr vs expectation of Rs. 13377 Cr, YoY Rs. 14205 Cr, QoQ Rs. 17747 Cr 

This quarter there was exceptional loss of Rs. 7100 Cr pertaining to the new uniform rate of pension (Rs. 5400 Cr) and certain ex gratia benefit for pre 2002 retiree pensioners (Rs. 1700 Cr). 

Gross NPA came at Rs. 86749 Cr vs QoQ Rs. 86974 Cr at 2.42% vs QoQ 2.5% 

Net NPA came at Rs. 22408 Cr vs QoQ Rs. 21352 Cr at 0.64% vs QoQ 0.64% 

Net Slippages came at Rs. 5046 Cr vs QoQ Rs. 4081 Cr at 0.57% vs QoQ 0.49% 

O/s Restructured book came at Rs. 18880 Cr vs QoQ Rs. 20854 Cr at 0.54% vs QoQ 0.62% 

Quarter EPS is Rs. 10 

Stock is trading at P/E of 9.3x FY25E EPS & 1.2x trailing P/Adj. BV 

(Nirmal Bang Retail Research) 

Result ok 

Revenue from Operations came at Rs. 954.7 Cr (2.1% QoQ, 24.6% YoY) vs QoQ Rs. 935.5 Cr, YoY Rs. 766.4 Cr 

EBIDTA came at Rs. 110.7 Cr (-3.8% QoQ, 52.3% YoY) vs QoQ Rs. 115.1 Cr, YoY Rs. 72.6 Cr 

EBITDA Margin came at 11.6% vs QoQ 12.3%, YoY 9.5% 

Adj. PAT came at Rs. 74.6 Cr vs QoQ Rs. 70.6 Cr, YoY Rs. 32.6 Cr 

Quarter EPS is Rs. 5.5 

Stock is trading at P/E of 49.7x FY24E EPS

(Nirmal Bang Retail Research) 

Result inline with expectation 

Revenue from Operations came at Rs. 498.7 Cr (15.6% QoQ, 32.6% YoY) vs expectation of Rs. 492.2 Cr, QoQ Rs. 431.3 Cr, YoY Rs. 376.1 Cr 

EBIDTA came at Rs. 96.7 Cr (10.8% QoQ, 20.4% YoY) vs expectation of Rs. 100.1 Cr, QoQ Rs. 87.2 Cr, YoY Rs. 80.3 Cr 

EBITDA Margin came at 19.4% vs expectation of 20.3%, QoQ 20.2%, YoY 21.4% 

Adj. PAT came at Rs. 76.8 Cr vs expectation of Rs. 75.4 Cr, QoQ Rs. 66.8 Cr, YoY Rs. 69 Cr 

Quarter EPS is Rs. 5.5 

Stock is trading at P/E of 56.8x FY24E EPS 

(Nirmal Bang Retail Research) 

Result is ok 

Revenue from Operations came at Rs. 214.5 Cr (3.5% QoQ, 51.9% YoY) vs QoQ Rs. 207.3 Cr, YoY Rs. 141.2 Cr 

EBIDTA came at Rs. 131.4 Cr (1.6% QoQ, 54.3% YoY) vs QoQ Rs. 129.4 Cr, YoY Rs. 85.2 Cr 

EBITDA Margin came at 61.3% vs QoQ 62.4%, YoY 60.3% 

Adj. PAT came at Rs. 107.4 Cr vs QoQ Rs. 108.9 Cr, YoY Rs. 74.6 Cr 

Quarter EPS is Rs. 10.3 

Stock is trading at P/E of 55x FY24E EPS

(Nirmal Bang Retail Research) 

Result marginally ahead of Expectation 

Revenue from Operations came at Rs. 194.7 Cr (7.5% QoQ, -18% YoY) vs expectation of Rs. 198.2 Cr, QoQ Rs. 181.1 Cr, YoY Rs. 237.4 Cr 

EBIDTA came at Rs. 86.6 Cr (15.7% QoQ, -20% YoY) vs expectation of Rs. 83.8 Cr, QoQ Rs. 74.8 Cr, YoY Rs. 108.2 Cr 

EBITDA Margin came at 44.5% vs expectation of 42.3%, QoQ 41.3%, YoY 45.6% 

Adj. PAT came at Rs. 62.6 Cr vs expectation of Rs. 60 Cr, QoQ Rs. 52.2 Cr, YoY Rs. 83.8 Cr 

Quarter EPS is Rs. 5.9 

Stock is trading at P/E of 64.7x FY24E EPS 

(Nirmal Bang Retail Research)

View: Positive

# Overall revenue increased by 25% YoY, driven by strong performance in JLR and India CV divisions.

# The consolidated EBITDA witnessed a 59% YoY growth, primarily attributed to improved margins in JLR and India CV divisions. The EBITDA margin expanded to 13.9%, marking a 300 bps increase.

# JLR experienced a 22% YoY revenue growth, propelled by higher volumes. 

JLR’s EBITDA margin saw a substantial 430 bps expansion to 16.2%, supported by enhanced scale and reduced material costs, despite higher marketing/administration expenses and forex revaluation.

# Standalone (India CV) revenue was buoyed by a better mix, higher pricing, and a slight uptick in volumes. The EBITDA margin expanded by 264 bps to 11.4%, driven by improved pricing and a superior mix.

# India PV division’s revenue increased due to higher volumes and realizations.

## Future Guidance:

1) Consolidated: The company expresses confidence in achieving its previously outlined deleveraging plan, targeting near-zero net automotive debt by the end of FY25.

2) JLR: The company remains on track to meet its targets, expecting an EBIT margin of over 8% and a net debt target below GBP1bn for FY24, with positive net cash anticipated in FY25.

3) India CV: After achieving a double-digit EBITDA margin in Q3FY24, the goal is to sustain double-digit margins.

4) India PV: The company aspires to achieve double-digit EBITDA margins in PV, enhance margins in EV, and deliver growth.

Stock is trading at P/E of 18.1x FY24E EPS

Ex-Dividend 06 February 2024 (Tomorrow)

Last date for Cum-Dividend Today 

Aarti Drugs Ltd. 

Dividend Per Share Rs.1 

Previous day Closing Price – Rs. 509.05 

CMS Info Systems Ltd 

Dividend Per Share Rs.2.5 

Previous day Closing Price – Rs. 385.65 

Gail (India) Ltd. 

Dividend Per Share Rs.5.5 

Previous day Closing Price – Rs. 178.1 

Kirloskar Pneumatic Co. Ltd. 

Dividend Per Share Rs.2.5 

Previous day Closing Price – Rs. 654.95 

Motilal Oswal Financial Services Ltd. 

Dividend Per Share Rs.14 

Previous day Closing Price – Rs. 1773.05 

NTPC Ltd. 

Dividend Per Share Rs.2.25 

Previous day Closing Price – Rs. 332.5 

Shriram Finance Ltd 

Dividend Per Share Rs.10 

Previous day Closing Price – Rs. 2404.45

IOCL/BPCL/HPCL – are up c.60-100% in three months, driven by strong EPS upgrades & low initial vals 

If things stay as they are, then FY25 EPS projections might still be upgraded 

Prefer BPCL over HPCL

Indian refiners are in a multi-year re-rating & earnings upgrade cycle & remain underappreciated even after recent outperformance 

Reliance, BPCL, HPCL, & IOC are in early days of this re-rating 

HPCL has re-rated, closing gap with BPCL; IOC to follow

Sell, TP Rs 2400 

Rev below expectations given higher than expected furloughs while margins were better 

Val are at 27x 1-yr fwd consensus EPS 

Mgmt. commented growth in 4Q will likely be better, beyond the benefit from reversal of furloughs

Upgrade to buy, TP raised to Rs 1830 

Inline qtr. – AUM growth of 23% yoy, spreads compressed 17bps qoq to 5.1% (mgmt. guidance >5%), while opex was well managed at 3.5%.

Expect AUM growth to be at higher end of 20-25% guidance

Downgrade to Neutral, TP Rs 405

Contained opex (down 4% qoq with 2.5% opex/assets) & higher NII led to earnings beat (PAT up 25% YoY to Rs1.58bn vs CitiE of Rs1.53bn).

Else, interest spreads contract 13bps qoq with rise in funding cost

CLSA

Downgrade to O-P from Buy, TP raised to Rs 725 (on roll fwd)

Spreads high, but will normalise

Stage 2 loans improve and credit costs high due to increasing PCR

Rerating potential limited given sluggish growth and 12%-13% normalised ROE

MS

EW, TP Rs 495

PAT beat MSe by 9% and consensus by 4%.

Better loan spread drove a 9% NII beat and, with lower expenses, led to a 12% PPOP beat.

Credit costs were 62bps, vs. MSe 50bps, owing to AIF-related provisions, which will invite investor scrutiny

OW, TP Rs 455

Revenue slightly below est.

Reported EBITDA better then MSe

Co reported positive PAT helped by better than-expected other income

HSBC

Hold, TP Raised to Rs 920

Continued to beat est., led by benign global demand, pricing, & continued RR demand

Near-term outlook still strong & may keep stock buoyant; launch of CURVV is key monitorable for domestic biz

Val look too punchy now

Jefferies

Buy, TP raised to Rs 1100

3Q EBITDA grew 59% YoY (+12% QoQ) to a new high (9% above JEFe).

Tata expects a better 4Q led by seasonality & improving supplies at JLR

Raise FY24-26 EPS by 7-11%

MS

OW, TP Raised to Rs 1013

Posted a strong set of earnings in F3Q

Raise JLR est. & multiple, lower India CV multiples

OW with JLR driven by de-leveraging & EVs driven by PV turnaround.

Nomura

Buy, TP Rs 1057

3Q JLR margins ahead – further re-rating likely

Est, net debt to go down further by Rs 150/sh by FY26F; success of EVs could drive JLR re-rating

3Q JLR EBIT margins ahead at 8.8% 

Trades at 5x FY26F EBITDA

GS

Buy, TP raised to Rs 960

3Q rev/EBIT +2%/+9% ahead of consensus as better than expected RR realization & improving CV mix & pricing supported 50bps EBIT margin beat

Management sees +ve biz momentum in JLR & target to raise EBIT margin to 10% in FY26E

JPM

OW, TP Rs 725

3Q PAT impacted by Rs71bn one-time impact on pension liabilities & wage revisions.

Adj. PAT was up 2% y/y with 16% ROE, in-line

Core NIMs down 12bps q/q driven by deposit repricing but reported was down 7bps offset by refunds (+5bps)

Credit costs (8bps) were lower with core loan loss (20bps) offset against account level upgrades.

Asset quality remains strong with net slippage at just 0.4% (Gross 0.6%)

4Q will likely see another wage revision hike but F25 should benefit from moderation in wages

Jefferies

Buy, TP Rs 810

Profit of Rs92bn, -35% YoY, missed est. due to one-off wage costs; core results were in-line.

NIMs managed well (-7bps QoQ) & aided NII growth

Loan growth improved to 14% with uptick in corp. loans, but unsecured retail is normalising down

Nomura

Buy, TP Rs 755

Soft NIM & chunky one-off expenses

Strong loan growth delivery; though NIM softer than expectations

Opex was controlled excluding impact of elevated wage revision provisions

Cut FY24F EPS by 13%

Bernstein

O-P, TP Rs 710

1-time exceptional item driving RoA sharply lower to 0.62%, excluding which RoA remained closer to 1%

Continued deposit repricing led to low NII growth at 5% YoY, while higher Opex growth continued

Sequential deposit growth below system

INCRED

ADD, TP Raised to Rs 800

Lower 3Q PAT of Rs91.6bn (est: Rs140.8bn), despite consistent operational performance, amid 1-off Rs71bn pension provision. 

Overall opex may remain high despite management’s focus on improving employee productivity

O-P, TP Rs 1300

Eugia III inspection ends with 9 observations

hEugia 3 is biggest injectable plant in Co’s network with 17 production lines

Est. plant contributes close to 10% of rev & mid-teens EBITDA contribution

While total number of observations look high, nature of observations remains unknown.

However, believe worst case outcome, import alert, is a low probability event given decade high drug shortages in US

MS

OW, TP Raised 4145

Strong b/s & healthy vendor relationships helping Indigo offset hit from aircraft grounding issues.

Earnings growth tapering off but business moats getting stronger

UBS

Buy, TP raised to Rs 3900

Strong beat across board; yield surprise can continue

Q3 - ASK up 27% YoY, PLF at 86% & yields up 26% QoQ

Outlook remains robust; 136 aircraft will need inspection

Co guiding for ASK decline of 6% QoQ; new aircraft addition strong

JPM

OW, TP Raised to Rs 3470

Delivered a broad-based in a seasonally strong qtr (PAT at Rs30bn, +42% vs. JPMe).

Yields continued to surprise & more than offset inflation in fuel & other costs.

ASK growth in 4Q is guided to be at 12% YoY

Jefferies

U-P, TP Rs 2500

3Q a beat driven by strong QoQ improvement in yields

Q3 EBITDA increased 65% YoY

Believe yields may come under pressure, as Air India’s large fleet comes online through yr

Recent sedate industry growth is another concern

CLSA

Downgrade to O-P from BUY, TP Rs 2800

Targeting steady double-digit rev growth & sustained margins

Cipla acquisition shelved as of now 

3Q: steady growth and sustainable margin

India biz: expecting double-digit sales growth to continue

US remains tepid

Jefferies

Buy, TP raised to Rs 2930

3Q revenue/EBITDA in line 

India’s revenue grew 12% YoY while Brazil/Germany witnessed further recovery

Increase FY25-26E Ebitda by 1-2%

JPM

Neutral, TP raised to Rs 2690

3Q Rev/EBITDA in line driven by healthy growth in India, Brazil & Germany

EBITDA margins at 31.8% 

Co expects 31.8% margins to be new base & guided for 50-100bps of annual improvement going forward

Bajaj Finance: The non-banking financial company will acquire a 7% stake on a fully diluted basis in RMBS Development Co. for an undisclosed amount

Citi on Adani Ports: Maintain Buy on Company, raise target price at Rs 1564/sh (Positive) 

Citi on Indigo: Maintain Buy on Company, raise target price at Rs 3700/sh (Positive) 

MS on Indigo: Maintain Overweight on Company, raise target price at Rs 4145/sh (Positive) 

GS on Indigo: Maintain Buy on Company, raise target price at Rs 3500/sh (Positive) 

Citi on Delhivery: Maintain Buy on Company, raise target price at Rs 550/sh (Positive) 

Macquarie on Tata Motors: Maintain Outperform on Company, raise target price at Rs 1028/sh (Positive) 

Jefferies on Tata Motors: Maintain Buy on Company, raise target price at Rs 1100/sh (Positive) 

CLSA on Tata Motors: Maintain Buy on Company, raise target price at Rs 1061/sh (Positive) 

Nuvama on Tata Motors: Maintain Hold on Company, raise target price at Rs 960/sh (Positive) 

Emkay on Tata Motors: Maintain Add on Company, raise target price at Rs 925/sh (Positive) 

GS on Tata Motors: Maintain Buy on Company, raise target price at Rs 960/sh (Positive) 

Nomura on State Bank: Maintain Buy on Bank, raise target price at Rs 755/sh (Positive) 

Elara on State Bank: Maintain Buy on Bank, raise target price at Rs 758/sh (Positive) 

Jefferies on State Bank: Maintain Buy on Bank, target price at Rs 810/sh (Positive) 

JP Morgan on State Bank: Maintain Overweight on Bank, target price at Rs 725/sh (Positive) 

Jefferies on Torrent Pharma: Maintain Buy on Company, raise target price at Rs 2930/sh (Positive) 

CLSA on Torrent Pharma: Maintain Buy on Company, target price at Rs 2800/sh (Positive) 

Citi on M&M Fin: Maintain Neutral on Company, target price at Rs 315/sh (Neutral) 

Citi on MPhasis: Maintain Sell on Company, target price at Rs 2400/sh (Neutral) 

Bernstein on State Bank: Maintain Buy on Bank, target price at Rs 710/sh (Neutral) 

Phillip Cap on State Bank: Maintain Buy on Bank, target price at Rs 720/sh (Neutral) 

Emkay on State Bank: Maintain Buy on Bank, target price at Rs 750/sh (Neutral) 

Citi on State Bank: Maintain Sell on Bank, target price at Rs 600/sh (Neutral) 

Macquarie on Auro Pharma: Maintain Outperform on Company, target price at Rs 1300/sh (Neutral) 

GS on Devyani: Maintain Buy on Company, target price at Rs 210/sh (Neutral) 

Citi on Devyani: Maintain Buy on Company, cut target price at Rs 210/sh (Neutral) 

MOSL on UPL: Maintain Buy on Company, cut target price at Rs 530/sh (Neutral) 

Citi on UPL: Maintain Buy on Company, cut target price at Rs 650/sh (Neutral) 

Jefferies on UPL: Maintain Buy on Company, cut target price at Rs 635/sh (Neutral) 

Incred on UPL: Maintain Add on Company, target price at Rs 694/sh (Neutral) 

JP Morgan on Torrent Pharma: Maintain Neutral on Company, target price at Rs 2690/sh (Neutral) 

Jefferies on Indigo: Maintain Underperform on Company, target price at Rs 2500/sh (Neutral) 

MS on LIC Housing: Maintain Equal weight on Company, target price at Rs 495/sh (Neutral) 

CLSA on LIC Housing: Downgrade to Outperform on Company, raise target price at Rs 725/Sh (Neutral) 

Nuvama on UPL: Downgrade to Reduce on Company, cut target price at Rs 486/Sh (Negative) 

DAM on UPL: Maintain Sell on Company, cut target price at Rs 462/sh (Negative)

The Board of Directors of Procter & Gamble Hygiene and Health Care Limited at its meeting held today, have declared an Interim Dividend for the Financial Year 2023-24 of Rs. 160 per Equity Share (Face Value of Rs. 10/- each). This interim dividend includes a one-time special dividend of Rs. 60 per equity share to commemorate 60 years of serving consumers, customers, shareholders, employees, and society. The dividend shall be paid on or before February 29, 2024.

The record date for the purpose of eligibility for payment of said Interim Dividend shall be February 9, 2024.

Singer India Limited, a company with a 170-year legacy and a leading manufacturer of sewing machines and home appliances, announced the launch of its global bestseller - M 330, with an iconic Blue color, exclusively on Amazon India.

HDFC securities’ flat pricing equity broking app has announced the addition of over 1 lakh customers in January 2024. The flat price broking app launched in September 2023 currently has a total of over 3 lakh customers on its platform. HDFC SKY is a one-stop-shop platform for all investment needs - Equity, MF, Global investing, and more.

Adani Gangavaram Port has set a new record of cargo handling. The Port has broken its previous records and achieved its highest ever monthly handling volume of 4 MMT in January 2024. This has surpassed its previous highest monthly cargo of 3.51 MMT which was achieved in June 2023.

The port has achieved excellent performance due to strategic investment in infrastructure for cargo handling and railway facilities. The port expects to set further operational records and deliver Industry best Services to its customers

ESAF Small Finance Bank has announced a bancassurance partnership with Edelweiss Tokio Life Insurance. This partnership is an integral part of ESAF Small Finance Bank’s strategy to diversify its offerings

Eicher Trucks and Buses, a division of VE Commercial Vehicles, has announced its entry into the Small Commercial Vehicle (SCV) segment with the Global Unveil of its EVFirst Eicher Truck at Bharat Mobility Global Expo 2024. Carrying forward Eicher’s proud tradition of delivering innovative, sustainable, and economically viable transportation solutions, this Pro Business Pro Planet range spans from 2T to 3.5T GVW. The product has been meticulously designed to revolutionize city and near-city distribution and transform last-mile logistics.

The Prime Minister Narendra Modi has laid the foundation stone of the Phase-1 NLC India Talabira Thermal Power Project 3x800 MW (2,400 MW) in Sambalpur, Odisha. 

The NLC India Talabira Thermal Power Project, an initiative by NLC India Ltd., a Navratna Public Sector Enterprise under the Ministry of Coal, is set to revolutionise the energy landscape of the nation. With an estimated investment exceeding Rs 27,000 Crore, this coal-based Ultra Super Critical Pit Head Thermal Power Project signifies a monumental step towards fostering energy security and driving the nation’s growth trajectory.

McDonald’s Corporation (Pre market) (Sector- FMCG)

Caterpillar, Inc. (Pre market) (Sector- Capital Goods)

Air Products and Chemicals, Inc. (Pre market) (Sector- Chemical)

Estee Lauder Companies, Inc. (Pre market) (Sector- FMCG)

IDEXX Laboratories, Inc. (Pre market) (Sector- Healthcare)

ON Semiconductor Corporation (Pre market) (Sector- Technology)

Tyson Foods, Inc. (Pre market) (Sector- FMCG)

Loews Corporation (Pre market) (Sector- Financial)

CNA Financial Corporation (Pre market) (Sector- Financial)

Vertex Pharmaceuticals Incorporated (Post market) (Sector- Healthcare)

Itau Unibanco Banco Holding SA (Post market) (Sector- Financial)

NXP Semiconductors N.V. (Post market) (Sector- Technology)

Simon Property Group, Inc. (Post market) (Sector- Realty)

Palantir Technologies Inc. (Post market) (Sector- Technology)

Symbotic Inc. (Post market) (Sector- Capital Goods)

AECOM (Post market) (Sector- Infrastructure)

* HINDCOPPER

* INDUSTOWER

* INDIACEM

* SAIL

* ZEEL

JSW Neo Energy Ltd, a wholly-owned subsidiary of JSW Energy Limited (or ‘the Company’), has secured capacity allocation of 6.5 KTPA for setting up of green hydrogen production facility in the first-ever auction conducted by Solar Energy Corporation of India under the Strategic Interventions for Green Hydrogen Transition scheme. The company has received Letter of Award from SECI and the capacity is to be commissioned within 36 months from the date of LoA. This will entail incentive for a period of three years from commissioning to the tune of ₹67.6 Crore.

A new order of 15 MW for executing solar power project from Aether Industries Limited have been received by KPIG Energia Private Limited, a wholly owned subsidiary of KPI Green Energy Limited under ‘Captive Power Producer (CPP)‘ Segment of the Company.

-- Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.

The government sticking to its fiscal glide path boosts sentiment; the market hits a record high. The Nifty reaches an intra-day high of 22,127, while the Midcap Index also sets a new record. Sensex and Nifty are close in the green, but off highs, Nifty gives up 22,000.

Global markets are currently in a fabulous mood, with the Nasdaq up 2% and the Dow Jones up 1.22% in the month of January 2024. US 10-year bond yields and the dollar index are also cooling off, which gives strength to the market. These factors will be closely monitored, as they have the potential to influence market sentiment. The crude oil prices fell as part of negotiations between Israel and Hamas, which could be an important step towards ending the conflict. On the other hand, despite a production cut by OPEC, prices of crude oil are under pressure due to China’s fear of demand.

Additionally, data like US non-farm payroll data and the unemployment rate for January will be announced on February 2, 2024. The US ISM services PMI for January will be declared on February 5, 2024. These factors will be closely monitored, as they have the potential to influence market sentiment.

On the domestic front, the reserve bank governor-headed six-member MPC meeting is scheduled from February 6th to February 8th, 2024. The RBI will hold its key interest rate steady at 6.50%, as per the report. The Q3 quarterly results season will continue to remain in focus. Apollo Hospital, Bharati Airtel, Britannia, Power Grid, Nestle, Lupin, Grasim, Power Finance, and Tata Power will announce their results this week.

Market participants will be keeping an eye on the movement of the rupee against the dollar and crude oil prices. Investments by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) will also be monitored.

The Nifty has recently reached a new all-time high, reaching 22,126. However, for sustained upward momentum, it’s crucial for the index to maintain this level; otherwise, it might revert to a sideways trend. Above the 22126 mark, the next targets will be 22350 and 22500.

Conversely, on the downside, the range between 21,640 and 21,500 presents an immediate demand zone. 

Bankifty is facing resistance at the 47000 mark after a meaningful bounceback from the 200-DMA. 45700–45400 is an immediate demand zone, while 45000 is a key support level. It has to cross the 47000 mark for a move towards the 48000 level.

FII’s long exposure in index futures remains at 33%, accompanied by a put-call ratio of 0.8.

-- Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.

Benchmark indices snapped two week losing streak by ending the Budget week higher with IT companies and Reliance gaining the most. Market sentiments were boosted after Govt sticking to fiscal glide path. On the sectoral basis, PSU banks gained the most while FMCG and Media fell the most. 

The Finance Minister Nirmala Sitharaman presented the Interim Budget announcing a sharp cut in Fiscal deficit to 5.1% for FY25 and 5.8% from 5.9% for FY24. The govt also decided to keep capex growth steady and grow capex by 11.1% to Rs 11.11trillion for FY25. Budget made no change in direct, indirect taxation. The major focus of the budget was on capex and consolidation theme. The major sectors which will benefit from the budget in the long term are infra, aviation, railways, metros, power, capital goods, agriculture, housing and technology to stay supported by government spends. Govt is also promoting tourism by providing long term interest free loans to promote iconic tourist centres.

This budget doubles down on its green growth efforts with initiatives aimed at improving the ecosystem for electric vehicles and biomanufacturing. Notably, the push for rooftop solarization will indirectly boost the income as it is estimated to save households Rs 15000-18,000 annually on electricity bills.

On the domestic front, India can become 3rd largest economy in the world with 5 trillion GDP from current 3.7 trillion in next 3 years and aspire to become 7 trillion economy by 2030.

The market focus will be on the ongoing Q3FY24 earnings season which is contributing to the movement in stock price, with many companies announcing their results in the coming days such as Ashok Leyland, Bharti Airtel, Sun Pharma, Britannia, Birla Corp, CAMS, Godrej Properties, Lemon Tree, Apollo Tyres, Nestle, Grasim, LIC, Godrej, IRFC and many more.

Earnings growth and demand is sustained this quarter, with optimism continued for Indian corporates business performance. IT sector companies reported mediocre performance while banks reported better performance than expected. Real estate sector continues to boom while consumer sector struggled for growth for another quarter due to weak rural demand.

The market will react to the major domestic and global economic data, crude oil inventories, FII/DII investment pattern, movement of rupee against dollar, ongoing earnings season, upcoming elections. Economic numbers will impact the market such as S&P global Services PMI of countries like India, UK, US, crude oil inventories, US trade balance, Initial jobless claims, 10-year Note Auction, China’s Inflation numbers and India’s Interest rate decision and forex reserve numbers are some of the events which should be kept in focus.

Indian indices, BSE Sensex and Nifty, traded in the green in first half & made fresh all time high at 22126.80 on Friday before settling the week at 21853.80, while, Sensex ended the week at 72085.63. Boosted by rise in global market and gains in index heavyweight RIL.

In Nifty, For the week, the index gained 2.35 percent and formed a long bullish candlestick pattern with an upper shadow that formed a Double Top formation, which is a bearish reversal pattern. Conversely, a break below the support level at 21,500 may indicate a bearish momentum

Shifting focus to Bank Nifty, the index faced selling pressure from the higher levels near 46800.For upside 46800 and 47200 can now act as immediate resistance, While, 45500-45200 will act as an immediate support.

- Date: 7 - 9 Feb, 2024 

- Price Band: ₹445- ₹468 

- Market Lot: 32 Shares 

- Appl Amt: ₹14,976 

- Size: ₹523 Cr Approx 

- Retail Portion: 35% 

- Retail Form: 1,22,245 

- HNI Small Form: 1,247 

- HNI Big Form: 2,495 

- Face Value: ₹10

- Date: 7 - 9 Feb, 2024 

- Price Band: ₹393- ₹414 

- Market Lot: 36 Shares 

- Appl Amt: ₹14,904 

- Size: ₹570 Cr Approx 

- Retail Portion: 35% 

- Retail Form: 1,30,686 

- HNI Small Form: 1,334 

- HNI Big Form: 2,667 

- Face Value: ₹10 

- Date: 7 - 9 Feb, 2024

- Price Band: ₹295- ₹311 

- Market Lot: 48 Shares 

- Appl Amt: ₹14,928 

- Size: ₹600 Cr Approx 

- Retail Portion: 35% 

- Retail Form: 1,40,675 

- HNI Small Form: 1,435 

- HNI Big Form: 2,871 

- Face Value: ₹5

APLLTD, ASHOKLEY, ALBERTDAVID, ASKAUTO, AURIONPRO, AVANTIFEED, BAJAJELEC, BARBEQUE, BESTAGRO, BHARTIARTL, CHOLAHLDNG, DHARMAJ, EMUDHRA, FAIRCHEMOR, FUSION, GET&D, GICHSGFIN, GULFOILLUB, HALDYNGL, IDEAFORGE, INSECTICID, KANSAINER, KPRMILL, KSL, LINDEINDIA, MANINFRA, ORIENTCEM, PRINCEPIPE, RBZJEWEL, RESPONIND, SIRCA, SPARC, SUVENPHAR, TAJGVK, TATACHEM, TVSSCS, UNICHEMLAB, VBL, VIJAYA, VRLLOG, ETC.

Listing of new securities of TATA STEEL LTD

Trading of 8,64,92,993 Equity Shares of Re. 1/- each issued pursuant to the Scheme of Amalgamation amongst Tata Steel Limited and The Tinplate Company of India Limited and their respective Shareholders and Creditors

Listing of new securities of Tata Consumer Products Ltd

Trading of 2,38,23,166 Equity Shares of Re. 1/- each issued pursuant to the Composite Scheme of Arrangement amongst Tata Consumer Products Limited and Tata Coffee Limited and TCPL Beverages & Foods Limited and their respective Shareholders and Creditors

Listing of New Securities BCL INDUSTRIES LIMITED

500000 equity shares of Rs. 1/- each issued at a premium of Rs.35/- to Non Promoters on a preferential basis pursuant to conversion of warrants.

Listing of Eq Shs of HARSHDEEP HORTICO LTD (BSE SME IPO)

16094060 Equity Shares @ 45/-….Market Lot: 3000 shares 

Last Heard: 32…45+32=77: +71%

Listing of Equity Shares of Megatherm Induction Limited (NSE SME IPO)

18840729 shares @ 108/-…market lot: 1200 shares.

Last Heard: 110…108+110=218: +102%

Listing of Eq Shs of Mayank Cattle Food Limited (BSE SME IPO)

5400000 Equity Shares @ 108/-…Market lot 1200/-

Last Heard: 9…108+9=117: +8%

While it is almost certain that UPL will be dislodged by Shriram Finance in the National Stock Exchange Nifty50 Index, the position of Bharat Petroleum Corporation (BPCL) could also be at risk. Brian Freitas of Periscope Analytics, an insight provider who publishes on Smartkarma, suggests a slim possibility that the staterun fuel retailer could get replaced by Bharat Electronics in the 50share benchmark index.

Although Jio Financial Services, Zomato, and Avenue Supermarts (DMart) have higher freefloat market capitalisations than Shriram Finance and Bharat Electronics, they are ineligible for index inclusion as they are not part of the derivatives segment. 

The review period for the March rebalance for Nifty indices concluded on January 31, and the announcement of changes will be made at the end of this month. -- Himanshu Marfatia of Incred Capital 

The grey market premiums (GMPs) for the four initial public offerings (IPOs) opening this week range between 0 per cent and 44 per cent. The highest demand is for Apeejay Surrendra Park Hotels, and the lowest is for Capital Small Finance Bank (SFB), while Jana SFB and Rashi Peripherals stand at about 25 per cent each.

These four issues, set to cumulatively raise over ₹ 2,600 crore, follow the Interim Budget and the policy announcement by the US Federal Reserve, keeping some companies in wait-and-watch mode.-- Himanshu Marfatia of Incred Capital

The benchmark National Stock Exchange Nifty hit a record intraday high of 22,127 on Friday, surpassing its previous intraday peak from January 15. According to technical analysts at ICICIdirect, an over 1,000point rally in the index might be on the horizon.

The retail brokerage said in a note, “Our composite model, with equal weights on general election year price behaviour, bull market corrections, and bottomup Nifty projection, strongly recommends buying the current decline for a target of 23,400 by June 2024.” It added, “In a general election year, Nifty tends to bottom out in February–March, followed by a minimum 14 per cent rally towards the general election outcome in each of the seven instances over the past three decades.” 

-- Himanshu Marfatia of Incred Capital

Key Points:

- Provisional Budget Overview:

- Provisional budget lacks growth-oriented objectives.

- Conservative 11% increase in capital expenditure, contrasting with the revised target of 28%.

- Market Anticipation:

- Despite conservative budget, market anticipates a rally before the final budget in July.

- Optimism driven by authoritative tone, commitment to forward-looking measures, and growing confidence in the government’s electoral prospects.

- Key Statements in the Interim Budget:

- Drastic drop in fiscal deficit to 5.1% in FY25.

- Government’s commitment to adopt economy policies for growth.

- Focus on unprecedented development in the next 5 years.

- Priorities: Garib, Mahilayen, Yuva, and Annadata.

- Vision of a developed India by 2047.

- Market Dynamics and Risks:

- Continuation of pre-election rally, but potential for high volatility.

- Foreign Institutional Investors (FIIs) in sell-off mode, with increasing outflows in Asia.

- India outperformed in CY23 due to lower selling and strong inflows from retail and mutual funds.

- Earnings Growth and Valuation:

- Lower-than-forecast Q3 results, especially in banking and IT sectors, leading to higher selling volumes from FIIs.

- India trading at a premium valuation, but slowdown in earnings growth moderating valuation.

- Impact of Interim Budget on Bond Yields:

- Positive outcome with a reduction in bond yields.

- Govt 10yr yield drops by 10bps to 7.05% on a larger-than-expected reduction in fiscal target to 4.5% in FY26.

- Fiscal Deficit Concerns:

- Sharp decrease in fiscal deficit may imply reduced government spending for FY25.

- Government targets efficiency improvements for ambitious fiscal targets.

- Commitment to Growth Measures:

- Interim budget seen as somewhat conservative, but promises unprecedented growth measures in the final budget.

- Commitment to introducing relevant economic policies and emphasizing key priorities.

The market remains cautiously optimistic, balancing positive signals from the interim budget with potential challenges and uncertainties, particularly in the context of global investor sentiment and economic conditions . -- Himanshu Marfatia of Incred Capital

We recommended that investors buy the stock of Gujarat Fluorochem (GFCL) in December 2022, then trading at 24 times one-year forward earnings (FY24). The stock has since delivered 28 per cent returns and is now trading at even higher forward earnings of 40 times FY25 expected EPS.

Over the past year, the jewellery stocks have given a stellar performance, comfortably beating the benchmark Nifty 50

Contrary to our expectation to extend the fall, the Indian benchmark indices witnessed a strong bounce back last week. Nifty 50 and the Nifty Bank index had closed over 2 per cent. Sensex was up 1.96 per cent. However, on Friday, the benchmark indices had come down sharply from their intraday highs. This leaves a doubt on the strength of the bounce witnessed last week.

While valuations are expensive, they are not as frothy as they were in the dotcom boom

- China Caixin services PMI (January)

- Indonesia GDP (Q4)

- Australia trade (December)

Significant geopolitical developments:

1. U.S. Strikes in the Middle East:

- The United States intends to launch further strikes at Iran-backed groups in the Middle East. Recent attacks targeted Tehran-aligned factions in Iraq, Syria, and Yemen.

2. Attacks Against Houthi Targets in Yemen:

- The U.S. and Britain conducted attacks against 36 Houthi targets in Yemen, following the U.S. military’s strikes on Tehran-backed groups in Iraq and Syria. This action is a response to a deadly attack on U.S. troops in Jordan.

3. Ongoing Conflict in Gaza Strip:

- Palestinian gunmen continue to launch attacks against Israeli forces in the Gaza Strip. Despite recent military interventions, there is still persistent fighting in Gaza City and Khan Younis.

4. Wildfires in Central Chile:

- Wildfires in central Chile have resulted in at least 99 casualties, with hundreds still missing. President Gabriel Boric characterized the situation as a “tragedy of very great magnitude.” The fires are threatening Vina del Mar and Valparaiso, two coastal cities with over a million residents.

5. - Heavy rainfall and hurricane-force winds hit storm-battered California. Second Pineapple Express weather system in the past week. Severe conditions prompt a rare hurricane-force wind warning for Big Sur and nearby areas. The storm coincides with the Grammy Awards in Los Angeles. Concerns about power outages, flooding, and mudslides.

The provided information outlines key factors that will likely influence Asian markets, providing a comprehensive view of the economic landscape and potential challenges in the Asia & Pacific region. Let’s delve deeper into the potential implications:

1. Impact of U.S. Employment Numbers:

- Strong U.S. employment numbers are expected to have a positive impact on Asian markets, following Wall Street’s lead. This reflects global interconnectivity and the influence of U.S. economic indicators on international financial markets.

2. Treasuries and Bond Yields:

- Heavy selling in Treasuries has led to a ripple effect across Asian debt markets, particularly affecting government bonds in Australia and New Zealand.

- The rise in yields on Australian and New Zealand bonds suggests a reevaluation of interest rate expectations, possibly due to the robust U.S. jobs report.

3. Fed Policy Clues:

- Investors are closely watching for further clues on Fed policy as Chair Jerome Powell appears on CBS’s 60 Minutes. Any insights provided during this interview could impact market expectations and investor sentiment.

4. Oil Market Focus:

- Recent U.S. and UK strikes against Houthi targets have heightened focus on oil markets. The Iran-backed Houthis’ vow to respond adds geopolitical risk, potentially impacting oil prices, including West Texas Intermediate.

5. Key Economic Indicators:

- Monday’s scheduled economic indicators, including PMI figures from China and Japan, Indonesian GDP, Thai inflation, and Australian trade data, will be crucial for understanding the economic health of the region. These indicators can influence market sentiment and investment decisions.

6. Tech Earnings and Market Momentum:

- The S&P 500 and Nasdaq reaching new highs due to strong tech earnings may contribute to positive momentum in Asian markets. Tech sector performance often influences broader market trends.

7. Concerns over China’s Economy:

- China’s CSI 300 index’s significant weekly decline, coupled with the IMF’s warning of potential slowing growth and U.S. allegations against Chinese companies, introduces uncertainties and potential challenges for the region.

8. Dollar Strength and Bond Yields Impact:

- The rebound of the U.S. dollar and rising U.S. bond yields could have implications for global financial markets, impacting currencies and capital flows in the Asia & Pacific region.

9. Political and Trade Tensions:

- Ongoing political and trade tensions, including potential tariff threats from Donald Trump, introduce an element of uncertainty. Investors will monitor developments closely for potential market reactions.

10. Investor Sentiment and Actions:

- Despite concerns, positive signs of investor sentiment, such as record inflows into Chinese stocks and increased hedge fund buying, suggest confidence in the market.

11. Regional Economic Developments:

- Indonesia’s expected GDP growth and Thailand’s pressure to cut its policy rate amid low inflation highlight the diverse economic situations in the region.

Investors will closely watch how these factors play out to gauge the overall market direction and potential risks in the Asia & Pacific region. The diverse economic indicators provide a nuanced view of the challenges and opportunities facing different countries in the region

Source: InCred Capital

• China Caixin Composite PMI, Monday

• India: HSBC India Composite, Services PMI

• Eurozone S&P Global Services PMI, PPI, Monday

• Australia rate decision, Tuesday

• Eurozone retail sales, Tuesday

• Germany factory orders, Tuesday

• Poland rate decision, Wednesday

• Thailand rate decision, Wednesday

• Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker speak, Tuesday

• Fed Governor Adriana Kugler, Richmond Fed President Tom Barkin speak, Wednesday

• Bank of England Deputy Governor Sarah Breeden speaks, Wednesday

• CPI data for Brazil, China, Chile, Mexico, Russia, Thursday

• US initial jobless claims, Thursday

• US Treasury Secretary Janet Yellen speaks at a Senate banking committee hearing, Thursday

•\u0009Pakistan general election, Thursday

• ECB Chief Economist Philip Lane, ECB Governing Council member Pierre Wunsch speak, Thursday

• European Central Bank publishes economic bulletin, Thursday

• Canada unemployment, Friday

• China aggregate financing, money supply, new yuan loans, Friday

• Germany CPI, Friday

• Australian Reserve Bank Governor Michele Bullock delivers parliamentary testimony, Friday

Source: Incred Capital

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Paytm’s wallet business could perhaps be the first victim of the Reserve Bank of India’s strict ban on the Paytm Payments Bank imposed on January 31, 2024. Housed under Paytm Payments Bank, highly placed sources say the company is in exploratory talks with a few interested investors to sell the wallets business. HDFC Bank and Jio Financial Services are said to be among the forerunners to acquire the same.

Fast-moving consumer goods (FMCG) companies have reported single-digit volume growth with improved margins in most segments during December quarter, helped by moderating commodity inflation, though operating environment remained challenging.

Some of the companies also reported a decline in their topline numbers, as they extended the benefits of softening commodity prices to the consumer by lowering the prices, which had a bearing on their gross sales numbers.

Companies such as HUL, ITC, Marico, Dabur, and Godrej Consumer Products said urban markets continued their moderate growth, while consumer demand from rural India remained subdued even as they expect an improvement in coming quarters.

The combined market valuation of eight of the top-10 most valued firms climbed ₹2.90 lakh crore last week, with Reliance Industries emerging as the lead gainer, amid optimism in equities.

Last week, BSE benchmark Sensex jumped 1,384.96 points or 1.95 per cent.

From the top-10 pack, Reliance Industries, Tata Consultancy Services, HDFC Bank, ICICI Bank, Infosys, LIC, State Bank of India, and Hindustan Unilever were the gainers, while Bharti Airtel and ITC faced erosion of their valuation.

The market regulator may look to regulate algo platforms and make it mandatory for brokers to get approvals for algo strategies used by clients, said two people familiar with the matter.

Some platforms that offer algo software and strategies include Tradetron, AlgoBulls, Algobaba and Robo-matic. Both algo platforms and algo strategy providers may have to register with SEBI, similar to an investment adviser or research analyst. An exam may be mandated for algo strategy providers. The returns claims of such providers may have to be substantiated through a Performance Validation Agency (PVA).

India’s primary market continues to be red hot, with four mainboard initial public offerings (IPOs) and one small and medium enterprise (SME) platform-related offering set to hit the market this week to mop up about ₹2,700 crore.