Share Market Highlights 01 January 2024: Sensex, Nifty end marginally higher; Nestle India gains 3%

Equity benchmark indices Sensex and Nifty kicked off 2024 on a flat note, with the 30-share index closing with marginal gains following some buying in energy, services and telecom counters.

In a highly volatile trade, the Sensex gauge eked out a modest gain of 31.68 points or 0.04 per cent to settle at 72,271.94 after a muted beginning. During the day, it hit a low of 72,031.23 and a high of 72,561.91, its lifetime intraday peak.

The Nifty rose 10.50 points or 0.05 per cent to 21,741.90.

The rupee started the new year on a weak note, depreciating by 6 paise to 83.22 against the US dollar amid a muted trend in domestic equities and dollar demand from importers.

Forex traders said the rupee traded in a narrow range in the absence of global cues. Global crude oil markets were closed for New Year Day holiday.

At the interbank foreign exchange market, the rupee opened at 83.18 and finally settled at 83.22 (provisional) against the dollar, down by 6 paise from its previous close.

GR Infraprojects received Letter of Intent from REC Power Development and Consultancy Limited for establishment of transmission system for Evacuation of Power from RE Projects in Rajgarh (1000 MW) SEZ in Madhya Pradesh‐Phase II, valued at ₹419.74 million.

“Market exhibited strength led by optimism on rate cuts, easing global inflation, and softer bond yields. But profit booking was visible at higher levels as lingering concerns over Red Sea disruptions pose short-term risks to global supply chains and freight costs. The spotlight of this week is also on FOMC minutes which will provide an insight for 2024 rate cut. Momentum in mid & small caps remains strong, buoyed by a positive macro-outlook however private banks experienced a reversal trend.”

SG Finserve Limited (SGFL) has closed the loan book for Q3-FY 2024 at ₹1,888 crore vis-a-vis closing book of ₹1,658 crore as on Q2- FY 2024, adding incremental loan book to the tune of ₹230 crore, accomplishing Quarter-on-Quarter growth of 14 per cent.

Tata Motors sales in the domestic & international market for Q3 FY 2023-24 stood at 234,981 vehicles, compared to 228,169 units during Q3 FY 2022-23. The stock traded at ₹792 on the NSE, up by 1.54%.

Majority of the stocks of the Adani group of companies have ended 2023 with losses ranging from 8-73 per cent, indicating that the key companies in the group have not been able to recapture the former highs seen in 2022, prior to Hindenburg Research’s damaging allegations of fraud and stock price manipulation.

New Delhi-headquartered Esconet Technologies files DRHP, to be listed on NSE Emerge

IPO comprises a fresh issue of 33,60,000 equity shares with a face value of Rs. 10 each

Company manufactures high-performance supercomputers, data servers and workstations, besides offering a wide range of IT solutions for SMEs, large organizations and public sector clients, such as data storage and networks, security, virtualisation, and data protection

Esconet intends to utilize Rs. 16 crore of the IPO proceeds to fund its long-term working capital requirements and Rs. 2.5 crore to invest in its wholly-owned subsidiary ZeaCloud Services Private Limited to fortify data backup capabilities

Company recorded a total revenue of Rs. 96.90 crore in FY23 and Rs. 71.46 crore in H1FY24

Appoints Corporate Capital Ventures as the Book Running Lead Manager and Skyline Financial Services is the Registrar for the issue

Institutional investments in Indian real estate maintain steady momentum at $5.4 billion, inching towards pre-pandemic levels

Foreign inflows led at 67% share; Canada & Singapore contributed to almost four-fifths of the foreign inflows in 2023

Domestic investments rose 66% YoY in 2023; led by residential and alternatives

Office continued to drive capital inflows with a commanding 56% share in 2023

Industrial & warehousing saw 2x investments compared to 2022

Zomato received 3 tax orders from Sales Tax Officer, Ward 300, Delhi and Deputy Commissioner, DGSTO-4, Bengaluru, Karnataka alleging short payment of GST along with applicable interest and penalty under Section 73 of the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’), Delhi Goods and Services Tax Act, 2017 (‘DGST Act, 2017’) and Karnataka Goods and Services Tax Act, 2017 (‘KGST Act, 2017’) with an amount totalling to ₹4,24,12,179.

Snowman Logistics Limited has commenced operations at a newly leased multi-temperature controlled warehouse in Guwahati, Assam. The warehouse has a total capacity of 5,152 pallets, features eight chambers and four loading bays equipped with modern infrastructure. 

The company has sold 4.19 mt in December 2023, as against 3.32 mt in December 2022. 

The stock is up by 1.81% on the NSE, trading at ₹213.45.

JK Tyre & Industries Limited has concluded its fund-raising plans of ₹5O0 crore by way of Qualified Institutional Placement, priced at ₹345 per share (including a premium of ₹343 per share with face value of ₹2 per share)

Apollo Tyres informed the exchange about order passed by Additional Commissioner, Rajasthan (GST) under GST Act demanding GST and levying consequential penalty of ₹117.75 lakh. 

“The Company will file appeal before Appellate Authority in due course. There is no material impact of the same on financial, operations or other activities of the Company,” it said in a regulatory filing.

The stock trades at ₹453.90 on the NSE, down by 0.03%.

Zydus Lifesciences stock trades at ₹700.30 on the NSE, up by 0.61%.

The Company is reviewing the Order and evaluating the next steps in this matter. The stock inches up by 0.71% on the NSE, at ₹438.65.

Adani Energy Solutions Limited was awarded the ‘Global Sustainability Leadership Award 2023’ in the ‘Best Overall Sustainable Performance’ category by the World Sustainability Congress in Mauritius. 

According to the company, the award acknowledges AESL’s sustainable practices and its contributions as an innovator in the power sector, aligning with the annual recognition presented to organizations demonstrating leadership in sustainability.

The stock trades at ₹3,750, down by 0.75% on the NSE.

Paras Defence and Space Technologies has informed that a wholly-owned subsidiary company in the name of “Quantico Technologies Private Limited” has been incorporated on December 30, 2023. 

ICICI Securities has allotted 830 equity shares of face value of ₹5 each on January 1, 2024 under ICICI Securities Limited - Employees Stock Option Scheme - 2017. 

ICICI Securities stock declines by 1.09% on the BSE, trading at ₹710.

Snowman Logistics Limited has initiated operations at a newly leased multi-temperature controlled warehouse in Guwahati, Assam. The total capacity of the warehouse is 5,152 pallets and this facility features eight chambers and four loading bays, equipped with the latest infrastructure.

The company’s stock trades at ₹66.05 on the NSE, up by 4.02%.

The stock trades at ₹1,859.35, up by 0.13% on the NSE.

The country’s largest passenger vehicle manufacturer Maruti Suzuki India (MSIL) on Monday reported that its wholesale (dispatches to dealers) sales in the domestic market stood at 1,04,778 units, a decline of 6.45 per cent year-on-year (YoY) as compared with 1,12,010 units in December 2022.

Hyundai Motor India (HMIL) reported domestic wholesales of 42,750 units in December 2023, which is a 10 per cent YoY jump from December 2022 sales. 

Utility vehicles maker Mahindra & Mahindra (M&M) also recorded a wholesales growth of 24 per cent YoY in December to 35,174 units as compared with 28,445 units in December 2022. 

Biocon (3.14%)

Granules (2.61%)

Laurus Labs (1.35%)

Glaxo (1.26%)

Sanginita Chemicals (20%)

Aarey Drugs & Pharmaceuticals (19.98%)

Rajshree Sugars & Chemicals (19.93%)

Oricon Enterprises (17.04%)

Ahlada Engineers (16.35%)

Jubilant Ingrevia Limited’s shares were up by 0.60 per cent after the company announced the commencement of operations at its new multipurpose agro-intermediate plant located in Bharuch, Gujarat. The plant is designed to produce value-added derivatives and meets the increasing global demand for agro intermediates. 

Dindigul Farm Product Limited (DFPL), a subsidiary of Indrayani Biotech, has filed the draft red herring prospectus dated December 31, 2023, in BSE for SME-IPO (Small and Medium Enterprises Initial Public Offer). 

The stock of Indrayani Biotech trades at ₹63.55, up by 0.60% on the BSE.

JK Tyre & Industries Limited, one of the leading tyre manufacturers in India has successfully concluded its fund-raising plans of Rs.500 crore by way of Qualified Institutional Placement (QIP). QIP was priced at Rs.345 per share (including a premium of Rs.343 per share with face value of Rs.2 per share). QIP received overwhelming response from marquee investors including Indian mutual funds, insurance companies and foreign institutional investors.

Atul Auto has recorded sales of 2,503 vehicles in December 2023, as against 2,151 vehicles in December 2022. The stock rises by 1.35% on the NSE, trading at ₹579.80.

Adani Energy Solutions Limited (AESL) was honoured with the ‘Global Sustainability Leadership Award 2023’ under the ‘Best Overall Sustainable Performance’ category by the World Sustainability Congress at Mauritius. The stock rises by 1.46% on the NSE, trading at ₹1,061.

Maruti Suzuki India Limited sold a total of 137,551 units in December 2023. Total sales in the month include domestic sales of 106,492 units, sales to other OEM of 4,175 units and exports of 26,884 units. 

Maruti Suzuki stock declines by 0.49% on the NSE, trading at ₹10,252.15.

Tiger Logistics (India) has been awarded government tender from Hindustan Petroleum Corporation Limited. The stock rises by 1.22% on the BSE, trading at ₹720.

Yes Bank has received an order from the Goods and Services Tax (GST) department, Tamil Nadu, raising demand for tax liability and interest on various GST issues in addition to levy of a penalty of ₹3,01,50,149. This penalty has been imposed in accordance with Section 73(9) read with Section 122(2)(a) of the Central Goods and Services Tax Act, 2017 (“CGST Act”) and Tamil Nadu Goods and Services Tax Act, 2017 (“TNGST Act”). 

The Bank believes that it has adequate legal grounds to reasonably substantiate its position in this matter and does not expect any material impact on financial, operation or other activities of the Bank due to the said Order. The Bank would pursue an appeal / evaluate other legal options against the said Order, it said in a regulatory filing. 

The stock rises by 4.43% on the NSE, trading at ₹22.40.

Max Estates Ltd board has approved acquisition of 100% equity shares of Astiki Realty Private Limited by way of investment. (₹10,000 towards investment in the entire 1,000 equity shares of Target Entity of ₹10 each).

The stock inches up by 0.21% on the NSE, trading at ₹310.95.

​CSL Finance ​has witnessed q-o-q growth of 12% with an Assets under management (AUM) of approximately ₹965 crore (including DA of ₹31 crore) as at Dec’23, as compared to ₹858 crore (including DA of ₹46 crore) as at Sept’23. 

New loans disbursed during the quarter were ₹260 crore (₹150 crore in WSL and ₹110 cr in SME) as compared to ₹296 crore in Q2FY24.

The stock inches up by 0.11% on the NSE, trading at ₹455.60.

Major gainers on the NSE at 12: Adani Enterprises (3.03%); Coal India (2.43%); Adani Ports (2.06%); UPL (1.84%); Tata Motors (1.52%)

Major losers: Eicher Motors (-2.26%); M&M (-1.47%); Bharti Airtel (-1.43%); Hindustan Unilever (-0.96%); Bajaj Auto (-0.77%)

Stocks advanced on BSE at 12 noon on January 1, 2024, were 2,594 against 1,133 stocks that declined; 185 stocks remain unchanged. Total stocks traded were 3,912. The number of stocks that recorded a 52-week high was 345, and those that hit a 52-week low was 13.

Zinc prices have been moving up very well since mid-December. The Zinc Futures contract on the Multi Commodity Exchange made a low of ₹214.95 kg in December. From there, the contract has surged over 8 per cent. It is currently trading at ₹233.50 per kg.

Crompton Greaves Consumer Electricals Limited received order from the Assistant Commissioner of CGST for the period July,2017 to March,2018, imposing tax demand of ₹24,91,122, interest ₹2,87,100 and penalty of ₹29,552.

Indian equities are poised to rise further after closing out a record eight-year winning run in 2023, on expectations of continued inflows from retail and foreign investors as well as strong growth in corporate earnings.

That’s the key takeaway from an informal Bloomberg News survey of 10 fund managers and strategists, seven of whom said the NSE Nifty 50 Index will rise in 2024. Of them, two predicted a gain in excess of 10%. Two other respondents forecast a drop. The benchmark has risen 20% this year, setting new records along the way and beating MSCI’s Asia Pacific and emerging markets indexes.

Tiger Logistics (India) Limited’s shares were up 1.40 per cent after the company reported bagging a government tender from Hindustan Petroleum Corporation Limited, for an entry into the petro segment. 

Harpreet Singh Malhotra, the MD of Tiger Logistics (India) Limited, said, “This achievement not only showcases our expertise in international cargo and project logistics but also positions us strategically for further growth in this lucrative industry.”

Prakash Industries has made payment of ₹23.25 crore to the Forest Department, Distt. Surajpur, Chhattisgarh, towards Net Present Value (NPV) of diverted forest land to be used for its Bhaskarpara Commercial Coal Mine in Chhattisgarh. 

The stock surges by 3.53% on the NSE, trading at ₹173.10.

KPI Green Energy board has recommended issue of bonus equity shares in the proportion of 1:2 i.e. 1 bonus equity share of ₹10 each for every 2 existing equity share of ₹10 each fully paid up.

The stock declines by 2.37% on the NSE, trading at ₹1,433.

Major gainers on the BSE at 11 am:

JBMA (10.95%); PTC (10%); IDEA (9.61%); KIOCL (8.95%); SHBCL (8.82%)

Major losers:

Cholamandalam Finance (-3.46%); Sanduma (-2.85%); Safari (-2.58%); Usha Mart (-2.26%); Sonata (-2.36%)

Samor Reality has received in-principal approval from BSE Ltd regarding Migration of Equity Shares of the Company from BSE SME Platform of the BSE to the main board of BSE Ltd. 

The stock rose 1.14% on the BSE, trading at ₹89.

Dev Labtech Venture Limited has applied for a Solar Power Project of 1300 KV (DC) in Gujarat Energy Development Agency (GEDA) for the Captive use of Growing Lab grown CVD diamond.

The rupee started the new year on a flat note and depreciated 3 paise to 83.19 against the US dollar in the morning session, amid a negative trend in domestic equities and dollar demand from importers.

The Indian stock market has begun the new year on a weak note. Nifty 50 is trading at 21,701 and is down 0.14 per cent. The near-term outlook is slightly mixed.

SSWL has achieved a net turnover of ₹332.15 crore in December 2023 Vs ₹334.41 crore in December 2022, recording a marginal dip of 0.68% y-o-y. Steel Strips stock trades at ₹258.50 on the NSE, down by 0.27%.

SJVN stock rises by 1.70% on the NSE, trading at ₹92.50. The company had commissioned and achieved COD of it’s 75 MW Gurhah Solar Power Project located in district Jalaun, Uttar Pradesh. 

In addition, SJVN Green Energy Limited had bagged this 75 MW Solar Power Project at a tariff of ₹2.98 per unit through Competitive Tariff bidding conducted by Uttar Pradesh New & Renewable Development Agency (UPNEDA).

Sunil Shah, Group CEO and Director at Khambatta Securities limited

“In 2023, returns were robust across market segments with small-caps giving 45%, mid-caps around 43% and large-caps 20%. The positives appear to be fully factored in and whilst the optimism may continue due to strong growth prospects, the only concern is the rich valuation. A repeat of the 2023 performance next year is possible only if there is significant acceleration in corporate profitability.”

Ramky Infrastructure stock trades at ₹802 on the NSE, up by 1.29%. Srinagar Banihal Expressway Limited (SBEL), a material subsidiary of Ramky Infrastructure Ltd, had entered into a one-time settlement of debt with lenders for a settlement amount of ₹1245.49 crore.

Bondada Engineering stock rises by 3.69% on the BSE, trading at ₹411.90., following the acquisition of 60% stake in Atpole Technologies Private Limited.

VIP Industries: Promoter Kiddy Plast bought 4,150 shares on Dec. 28. The promoter group DGP Enterprises bought 4,400 shares on Dec. 28. Promoter Dilip G. Piramal bought 7,100 shares on Dec. 28. 

Paisalo Digital: Promoter group Equilibrated Venture CFLOW bought 9.72 lakh shares on Dec. 29. 

Nahar Spinning Mills: Promoter group Nahar Capital and Financial Services bought 22,000 shares between Dec. 27 and Dec. 28. 

Wardwizard Innovations and Mobility: Promoter group Wardwizard Solutions India sold 26 lakh shares on Dec. 27. 

Shalimar Paints: Promoter group Sarita Devi Jain sold 20,000 shares on Dec. 29. 

Ultramarine and Pigments: S Narayan sold 4,000 shares and Promoter Deepa Ajay sold 7,000 shares on Dec. 28. 

Cigniti Technologies: Promoter C.V. Subramanyam sold 13,815 shares on Dec Dec. 26.

Price band revised from 10% to 20%: PTC India Financial Services. 

Price band revised from 5% to 20%: Centum Electronics, JBM Auto, KSolves India. 

Moved into a short-term ASM framework: Mangalam Cement. 

Moved out of short-term ASM framework: Kiri Industries, NINtec Systems, and PC Jeweller.

“As the New Year begins it is a Goldilocks scenario for the economy and markets. The growth momentum in the economy is strong. 7% GDP growth in FY24 is likely to be followed by around 6.7% growth in FY25 with decent corporate earnings growth. The banking system is in the pink of health and all macroeconomic indicators are stable. Political stability after the General elections looks almost certain.

From the global perspective, the US economy appears to be heading for soft landing. The US 10-year bond yield at 3.87 % and the dollar index at 100.6 are tailwinds for the market. FPI inflows in 2024 are likely to be robust.

The concern, however, is that most of this good news is in the price; valuations are a bit stretched and above the long-term averages. So, the market is vulnerable to corrections from presently unknown risks.

The broader market is overvalued; safety is in large-caps.”

ISRO’s New Year gift to the world was the successful launch of XPOSat, an X-ray Polarimeter Satellite, aiming to unravel fundamental phenomena in galaxies and black holes. This launch positioned India as the second country, after the US, to join NASA’s Imaging X-ray Polarimetry Explorer initiative. Marking their continued success from the prior year’s historic milestones, including Chandrayaan-3 and the Aditya-L1 solar mission, ISRO achieved this feat with PSLV-C58’s 60th flight. XPOSat’s mission, equipped with POLIX and XSPECT payloads, aims to study X-ray polarisation, magnetic fields, and cosmic sources, solidifying PSLV’s status as India’s reliable, versatile, and cost-effective launch vehicle in the global space arena.

Fun FAQs

We take a not-so-serious look at some of the usual imponderables (returns, top ideas) at the beginning of every calendar year. We are not sure if much changes between the end of one year and the beginning of another when it comes to stocks. Anyway, this annual ritual becomes redundant fairly quickly, given unforeseen developments. We might as well have some fun!

What will the market do in 2024?

The returns in 2024 will depend on the tussle between fundamentals and sentiment. In an entirely ‘fundamental’ market, returns will likely be modest for the market and negative for many stocks. A bottom-up plug-in of our 12-month FVs for individual stocks shows a modest 1% upside for the Nifty-50 Index (see Exhibit 1). In a less-than-fundamental market, market returns can vary, as it is impossible to factor in sentiment in any market calculus. Thus, we are amazed by the general obsession with forecasting prices (versus deciphering value) and awed by most participants’ purported ability to forecast prices. 

What will result in a market correction?

Any market correction will be entirely based on a big change in the market’s expectations of potential returns. We have no idea though as to what will change the market’s bullish return expectations, which have been reinforced by the stellar returns of the past three years (see Exhibit 2) for ‘new’ retail investors (see Exhibit 3). We can point to a few fundamental factors, such as (1) earnings downgrades (although earnings misses are passe in the current state of irrational exuberance) and (2) higher-than-expected interest rates (unlikely). Increased focus on fundamentals versus flows may result in a correction, but we wonder why investors ask this question but stay invested.

What will stop retail flows?

We do not see any major event that can shock retail investors and curtail flows (see Exhibits 4-6). Domestic (decent macro-economic situation) and global (lower interest rates) factors are supportive; see Exhibits 7-8. The Indian market has seen a significant correction on (1) extreme valuations (2001, 2008) or (2) domestic or global shocks (2004, 2016-17, 2020); see Exhibit 9. We find this obsession of institutional investors with retail flows quite fascinating; we hope that “sophisticated” investors are not taking their cues from retail flows.

What are your top-3 buy ideas?

We stick with our positive view on large-cap. banks where valuations are still somewhat reasonable. Most other sectors and stocks are overvalued; see Exhibits 10-13. Investors have had certain odd arguments for their distaste for banks (peaking margins, bottoming credit costs). These arguments sound odd in that they are very well-known and presumably factored in Street expectations. Anyway, the risk of de-rating is on the lower side for banks, while it seems very high for most other sectors (see Exhibit 14). We assume investors are asking for top buy ideas as they are very comfortable with market valuations.

Major gainers on the NSE at 9:30 am:

Coal India (1.49%); Tata Motors (1.44%); Grasim (1.23%); BPCL (0.92%); Nestle India (0.82%)

Major losers:

Eicher Motors (-1.79%); M&M (-0.90%); Bharti Airtel (-0.81%); Britannia (-0.79%); Hindustan Unilever (-0.78%)

Jubilant Pharmova share price can target ₹950-1,050 over the next one-two years

We zoom in on the prospects of Vedanta, as also the prospects of two other stocks — Bandhan Bank, Dodla Dairy

At ₹720 per share, the valuation of the Birlasoft has re-rated from trailing PE of 21 times in April to trailing PE of 55 times now

At ₹166.70, the NCC stock trades at 18 times its trailing 12-months per share earnings and 14 times its likely per share earnings for FY24

IndoStar Capital Finance has sold a portion of its SME loan portfolio to Encore Asset Reconstruction Company. The sale consists of several stressed accounts, aggregating to principal outstanding of ₹292 crore.

Despite a strong undercurrent favouring Indian equities, the Sensex and Nifty, key Indian equity indices, opened on a weak note. 

During early trade, the 30-share BSE Sensex experienced a decline of 99.84 points, settling at 72,140.42, while the NSE Nifty dropped by 20.70 points to reach 21,710.70. Analysts highlighted a shift in focus towards upcoming quarterly results and the Budget. Furthermore, global markets remained closed due to New Year’s Day, leading analysts to anticipate subdued trading activities.

Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, said the market is steeping into 2024 with record highs; in the upcoming year, major domestic and global factors will influence the market movement. Market crucial events that should be tracked in 2024 are the upcoming quarterly earnings season, the Budget and the General elections, the Fed rate decision, and the US presidential election.

Vinod Nair, Head of Research at Geojit Financial Services, said the euphoria is expected to continue during the start of the next year due to the exuberance of rate cuts and the drop in bond yields.

“We expect a modest return of 10 to 12 per cent on the main market in CY24. It is advised to diversify the investment pattern to multi-assets. It is suitable to be diverse when equities are trading above the long-term average for a prolonged period. We presume CY24 to be a year of reversal in sector and category wise. We like large caps compared to mid and small caps. Generally, it will be a stock- and sector-specific year. Sectors we like are Banks, Manufacturing, Pharma, Chemical and IT. A correction in the consumer sector should be capitalised in CY24.”

According to Arvinder Singh Nanda, the market outlook 2024 is expected to be positive considering positive GDP growth prospects, macroeconomic environment, better demand, manageable inflation, steady interest rates, robust quarterly numbers potential, and continuity of current govt.

In 2023, the 30-share BSE Sensex jumped 11,399.52 points or 18.73 per cent, and the NSE Nifty climbed 3,626.1 points or 20 per cent.

Lok Sabha elections, the US Presidential polls, the trajectory of interest rates, particularly in the US and India, inflation trends and geopolitical situation will be the key factors for the stock market, analysts opined. 

Escorts Kubota Limited Agri Machinery Business Division in December 2023 sold 4,536 tractors as against 5,573 tractors sold in December 2022.

HFCL Ltd has received an Advance Purchase Order aggregating to ₹1127.27 crore from Bharat Sanchar Nigam Limited (BSNL). This order pertains to the implementation of BSNL’s optical transport network for carrying traffic of BSNL on PAN India basis.

In the last week of 2023, Indian bell weather indices Sensex and Nifty gained around 1.6 per cent and 1.8 per cent respectively as positive momentum on expectations of rate cuts by the US Fed and buoyant Indian economy continued to propel markets.. Except BSE IT (-1 per cent), all sectoral indices ended green during the last week with the best performers being BSE Auto (4 per cent), BSE Metals (4 per cent) and BSE FMCG (3 per cent).

Among large-caps 

Coal India, ITC, SBI, L&T, HCL Tech, Titan, Ultratech Cement & M&M 

Among mid-caps 

Ashok Leyland, Godrej Properties, Angel One, Metro Brand, Global Health, PNB Housing, Kirloskar Oil Engine, & Lemon Tree

Expect A Gradual Recovery For The Pizza Segment 

Expect Recover In Pizza Space Due To Elevated Levels Of Competitive Intensity 

Should Aid Near-Term Recovery For Domino’s And Pizza Hut 

Strong Performance In KFC Should Support Growth For Devyani & Sapphire 

Westlife & RBA’s Performance Should Witness Steady Performance In Burgers 

At Current Levels, Prefer Devyani Intl & Sapphire, As Risk-Reward Remains Favourable 

Maintain SELL On Jubilant Food Due To Near-Term Headwinds In Pizza Segment

Cement Px Decline In All Regions In Dec-23 In Range Of 1-2% 

Q3FY24 Growth Pegged At 3% QoQ Which Is In-line With Initial Expectations 

For Q3, Highest Growth In South, & Flat To 3% In Other Regions 

Demand Trend Mixed In Dec After Sub-10% YoY Growth Seen In Combined Oct-Nov-23 

Many Dealers Expect Px To Improve From 3rd Week Of Jan 

Easing Energy Costs Is Positive For Sector

Buy Call, Target Raised To Rs 475 

Expectation Of Sustained Improvement In Hosp EBITDA Margin Remains Intact 

Increased ARPOB CAGR Assumption Over FY25-30F From 4% To 5.8% 

Factoring In Expectation Of Sustained Improvement In Case Mix 

Factoring In Expectation Of Improvement Payor Mix Along With Price Hikes 

Newer Brownfield Capacity Is Expected To Come Up Over Next 4 

Newer Brownfield Capacity Should Support The ARPOB Improvement 

Initiate Buy, Target Rs 920 

Has Developed Strong Competitive Advantages 

Generates EBITDA Margin/ ROCE Of >25%/30% 

Expect Co To Benefit From Industry Growth Of 10%+ P.A 

Expect Co To Benefit From Formalisation Of Sector, Unorganised Mkt Share Is Still 35% 

Expect Co To Register 18.7% Revenue CAGR Over FY23-26E 

Crude Oil Price Correction Offers Margin Tailwinds 

Execution Miss, If Any, Is a Key Risk

Buy Call, Target Rs 2,800 

Top Pick For 2024 

Ambitious Growth Plans, Execution In Focus 

Optimistic About Co’s Long-Term Outlook 

Co Plans To Increase Capacity To 110-130 Mtpa At A 14-17% CAGR By 2031 

Strong B/S With Target To Maintain A Net Debt-To-EBITDA Ratio Of Less Than 2x

Nomura on Fortis: Maintain Buy on Company, target price at Rs 475/sh (Positive) 

MOSL on Dalmia Bharat: Maintain Buy on Company, target price at Rs 2800/sh (Positive) 

Emkay on Emami: Maintain Buy on Company, target price at Rs 625/sh (Positive) 

ICICI on Cello: Initiate Buy on Company, target price at Rs 920/sh (Positive) 

MS on OMCs: Prefer HPCL over BPCL and IOCL (Positive) 

Jefferies on QSR: At Current Levels, Prefer Devyani Intl & Sapphire, As Risk-Reward Remains Favorable (Positive) 

HSBC on Banking Sector: Credit offtake in the corporate segment picked uppicks (Positive) 

Jefferies on Cement: Cement Px Decline In All Regions In Dec-23 In Range Of 1-2% Q3FY24 Growth Pegged At 3% QoQ Which Is In-line With Initial Expectations (Neutral)

SEMAEC – Non promoters sold (cleanout)

SUNIL KUMAR BHALA 1.5L

PADMASHREE INC 1.4L

PUESH KUMAR GUPTA 1.8L

Initiate Buy, Target Rs 920

Has Developed Strong Competitive Advantages

Generates EBITDA Margin/ ROCE Of >25%/30%

Expect Co To Benefit From Industry Growth Of 10%+ P.A

Expect Co To Benefit From Formalisation Of Sector, Unorganised Mkt Share Is Still 35%

Expect Co To Register 18.7% Revenue CAGR Over FY23-26E

Crude Oil Price Correction Offers Margin Tailwinds

Execution Miss, If Any, Is a Key Risk

Buy Call, Target Raised To Rs 475 

Expectation Of Sustained Improvement In Hosp EBITDA Margin Remains Intact 

Increased ARPOB CAGR Assumption Over FY25-30F From 4% To 5.8% 

Factoring In Expectation Of Sustained Improvement In Case Mix 

Factoring In Expectation Of Improvement Payor

Gold appreciated last week, whereas silver moderated. In dollar terms, the former gained 0.5 per cent to end at $2,062.9 per ounce and the latter dropped 1.7 per cent to close at $23.8 per ounce.

On the MCX, gold futures was up 0.4 per cent to end at ₹63,203 (per 10 gram), but silver futures lost 1.3 per cent and closed at ₹74,430 (per kg).

The short-term outlook remains positive https://www.thehindubusinessline.com/portfolio/commodity-analysis/fo-strategy-bear-put-spread-on-hindalco/article67689601.ecefor the stock of Hindalco Industries (₹614.85). It finds an immediate support at ₹564 and major one at ₹503.

Crude oil prices weakened last week. Brent crude oil futures on the Intercontinental Exchange (ICE) depreciated 2.8 per cent as it closed at $76.9 per barrel. Crude oil futures on the MCX lost 2.5 per cent by ending the week at ₹6,007 a barrel.

Nifty 50 (21,731) and Bank Nifty (48,292) rallied 1.8 per cent and 1.7 per cent each last week. The uptrend is strong and both indices are expected to continue to appreciate. Here, we take a look at the derivatives data of both indices and gauge the participants’ sentiment.

The first full year of business after the Covid-19 pandemic was a landmark one for India’s travel and hospitality industry, where a spurt in travel and growth was accompanied by the highest share of public listings worldwide. The industry, valued at ₹4-lakh crore and expecting a CAGR of 14.1 per cent, is anticipating a slew of IPOs in the months to come from industry majors such as ITC Hotels, ixigo, and TBO.

IPO season found its momentum again in 2023. Here are a few trends worth

Team bl.portfolio speaks to experts from different segments of the market to put together what equity investors can expect in 2024

Buzzing Stocks: Automobile companies, Tata Coffee, Tata Consumer, Grasim Industries, Godrej Properties, Central Bank of India, Bandhan Bank, Sundaram Finance, IndoStar Capital Finance, Bondada Engineering, Tinplate Company, GMR Infra, Reliace Infra, Reliance Power, Jyoti Structures, Jubilant Ingrevia, Patel Engineering, Fineotex Chem, Alfa Transformers, KPI Green, KP Energy, Alkem Lab, Gayatri Sugars

The Securities and Exchange Board of India has imposed a penalty of ₹1 crore on Unitech Advisors (India) Pvt Ltd (Now known as Auram Asset Management P. Ltd) and two of its directors, Ajay and Sanjay Chandra, for failing to wind up three real estate funds years ago, despite several extensions. 

Besides, the market regulator in a late night Friday order also imposed a penalty of ₹10 lakh on Sanjay Chandra, Hitendra Malhotra, another director of the company, and Deepak Bajaj, a director at Unitech Realty Investors (India) Pvt Ltd and a nominee of Unitech Advisors on the investment committee of the fund house. That means, the total amount should be paid jointly and severally by them would be ₹1.20 crore, said SEBI.

2023 has ended on a very positive note for the global equity markets. The benchmark indices, the Sensex and Nifty 50 had surged 18 per cent and 20 per cent respectively. The Nifty Bank index was up 12 per cent. The mid-cap and small-cap indices clearly outperformed by skyrocketing in 2023. The BSE Midcap and Smallcap indices were up 45.5 per cent and 47.5 per cent. 

SRF has said that it has commissioned Rs 317 crore fluorocarbon refrigerant gas capacity expansion project at Dahej.

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U.S., U.K., Hong Kong, China, South Korea, Japan, France, Germany, Italy @ Market Holiday

India December Month Auto Sales

The Indian equities seem poised for an eventful ride in 2024, propelled by the tailwinds of a remarkable preceding year and impressive investor returns. The upcoming journey is set against a backdrop of diverse cues, spanning from local factors like interest rates and the Lok Sabha polls to global events such as geopolitical shifts. 

Analysts foresee the continuation of the bull run in the domestic equity market, projecting potential climbs of up to 7 per cent for benchmark indices like the Sensex and Nifty within the next 3-6 months. The substantial growth in 2023, with the BSE Sensex rising by 18.73 per cent and the NSE Nifty climbing by 20 per cent, sets a promising tone for the year ahead.

Crucial factors dictating the stock market’s trajectory include the Lok Sabha elections, US Presidential polls, trajectory of interest rates in the US and India, inflation trends, and geopolitical developments, according to experts.

The return of the BJP government with a majority in the 2024 general elections holds significant weight in the market’s aspirations for the new year. Political stability, an influential force shaping market dynamics, is anticipated to foster an environment conducive to sustained economic growth and prosperity in 2024, as per experts’ insights.

Motilal Oswal Broking and Distribution highlighted the pivotal role of the Lok Sabha elections and the first post-election budget on the domestic front. Their note suggests a strengthening of market sentiment with the ongoing pre-election rally likely to persist, further boosted by any potential rate cuts.

In 2023, Dalal Street investors witnessed a staggering increase of Rs 81.90 lakh crore in their wealth, buoyed by multiple positive factors, including robust domestic macroeconomic fundamentals, political stability due to recent BJP victories, optimistic corporate earnings outlook, signals from the US Federal Reserve hinting at three potential rate cuts in the following year, and increased participation from retail investors.

Global Scenario

The S&P 500 concluded 2023 with a gain of over 24%, while the Dow closed near a record high. The buoyant sentiment was propelled by easing inflation, a resilient economy, and the prospect of lower interest rates, particularly in the last two months of the year. 

Investors are banking on the Federal Reserve orchestrating a “soft landing” for the economy, slowing down to curb high inflation without sliding into a recession. As a result, market expectations point to the Fed commencing rate cuts as early as March, with signals for three quarter-point cuts next year from the current benchmark rate, which sits between 5.25% and 5.50%, the highest in two decades.

In other major global indices, Japan’s Nikkei surged over 28% in 2023, marking its best performance in a decade. Frankfurt and Paris registered gains of 20.3% and 16.5%, respectively, with recent record highs. However, London lagged behind with less than a 4% gain in 2023, attributed to concerns about prolonged high interest rates amidst inflation worries.