Share Market Highlights 23 January 2024: Sensex plunges over 1,053 pts, Nifty dips below 21,250

The benchmark BSE Sensex fell 1,053.1 points, or 1.47 per cent, to 70,370.55, while the broader NSE index lost 326.85 points, or 1.52 per cent, to 21,244.95 as HDFC Bank led a decline in financials, while Zee Entertainment plunged over 32 per cent after its merger with Sony’s India unit collapsed.

The one-year overnight index swap rate was down 2 bps at 6.60 per cent, while the benchmark five-year swap rate fell 2 bps to 6.17 per cent.

India’s overnight call money rate was up 105 bps at 6.80 per cent. The overnight TREPS rate was at 6.92 per cent, compared with the previous day’s weighted average of 6.8500 per cent.

The Indian rupee sidestepped gains in most of its Asian peers to end slightly weaker on January 23, weighed down by dollar demand from local oil companies and foreign banks, according to a PTI report.

The rupee ended at 83.15 against the U.S. dollar, down 0.1 per cent compared to its previous close of 83.0650.

Crude oil futures on January 23 declined 0.53 per cent to ₹6,232 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for February delivery fell ₹33 or 0.53 per cent to ₹6,232 per barrel with a business volume of 11,564 lots.

The stock declines by 6.52% on the NSE, trading at ₹236.70.

The stock trades at ₹711.85 on the NSE, down by 5%.

“India has surpassed Hong Kong to become the world’s 4th largest equity market, driven primarily by its rapid economic growth compared to China and other emerging economies. Despite the slowdown and high debt levels globally, India is progressing rapidly on its growth trajectory. We believe as long as India remains an island of stability, it will continue to attract inflows from foreign portfolio investors as well as domestic investors. 

“Post-Covid, domestic retail investors have played an integral role in shaping the Indian equity story by incrementally investing their savings in equities compared to historical standards, and we believe this trend will gain further momentum. Since Indian markets have run up significantly in the last year, we could, in the short term, witness higher levels of volatility, but from a medium to long-term perspective, we believe that the Indian equity markets have the potential to give mid to high teen returns on an annualized basis. Our Nifty50 target for FY25 remains at 24,000.”

Cipla (6.89%); Sun Pharma (3.58%); Bharti Airtel (2.85%); ICICI Bank (1.74%); Hero Motocorp (1.23%)

Major losers:

Coal India (-6.06%); IndusInd (-5.55%); ONGC (-5.27%); SBI Life (-4.93%); Adani Ports (-4.92%)

The number of stocks that recorded a 52-week high was 465, and those that hit a 52-week low was 33.

Amber Enterprises India stock rises by 2.93% on the NSE, trading at ₹3,819.95.

The stock price of Gandhar Oil Refinery (India) trades at ₹255.60 on the NSE, down by 2.33%.

Bigbloc Construction’s stock trades at ₹176.45 on the NSE, down by 4.65%.

“Despite weakness in the secondary market, listing of Medi Assist was in line with our expectation. The listing premium is justified on the back of being the leading Third Party Administrator (TPA) health-tech and insurance-tech company which is serving the emerging Indian health insurance sector. Perhaps it is asking a decent premium for its unique play and taking first mover advantage in the listed space. Given the low penetration of insurance in India and expected growth from current 16% to 33% in next 5 years, we feel Medi Assist is well positioned as a dominant TPA player to tap the upcoming growth, and the rising awareness in the healthcare business is the tailwind for the whole sector. Considering all the factors, we recommend allotted investors to “HOLD” with a long-term perspective only. For non allottees one can accumulate more in dips post listing and look to hold for a long term like 3-5 years’ time horizon.”

REC Ltd stock falls by 7.63% on the NSE, trading at ₹425.05.

Cosmo First announced its participation in two trade shows: the 2nd Edition of PlastFocus from February 1-5, Yashobhoomi (IIC), and at the ABID, Kolkata, from February 2-5, 2024. 

Zee Entertainment Enterprises Ltd hit 52-week low at ₹160.10 today.

ONGC stock trades at ₹233.05 on the NSE, down by 3.72%.

Swelect Energy Systems (20%)

Visaka Industries (15.98%)

HLV (15.93%)

Bharat Road Network (14.80%) 

Salasar Techno Engineering (14.41%)

Rojus Enterprises Ltd has become subsidiary of Superhouse Ltd, holding 51.15% equity shares after acquisition. 

Superhouse Ltd stock trades at ₹247.75 on the NSE, down by 5.53%.

Vikas Ecotech Ltd. has acquired 100% equity of Shamli Steel at an enterprise value of ₹1,600 million in a share swap deal. Vikas EcoTech stock trades at ₹4.20 on the NSE, up by 3.70%.

Sarveshwar Foods Ltd is setting up 2 new SFL Chaupals (procurement facilitation centre) for procurement of dry fruits and apples directly from farmers in Baramulla and Pulwama. Sarveshwar Foods stock trades at ₹7.05 on the NSE, up by 6.02%.

InfoBeans (NSE: INFOBEAN) a leading digital transformation and product engineering organization, and agineo, the largest German ServiceNow partner, have announced their strategic partnership to bring the power of ServiceNow to global clients.

The combined strengths of InfoBeans and agineo are expected to offer clients a broader portfolio and comprehensive experiences in the ServiceNow ecosystem, with robust capabilities in ESM, ITSM, ITOM and FSM amongst others.

agineo’s successful operations in the market for over 30 years and its status as a ServiceNow Elite Partner, combined with InfoBeans’ expertise and a global foothold in ServiceNow, position them favorably to become a worldwide leader in digital solutions.

India’s cement sector will add 150-160 million tonne per annum (MTPA) capacity by FY28 through both organic and inorganic routes, Crisil said in a research report released on Tuesday. 

Growth will be led by increased demand across sectors like infrastructure and housing, the report said.

India’s steel majors are seeking government intervention to control raw materials prices, primarily iron ore and coking coal.

Mills has flagged issues in the price discovery process of coking coal by international players and has reportedly asked the government to push for a “more realistic” price discovery mechanism. 

Ashoka Buildcon Limited has submitted bid to City & Industrial Development Corporation of Maharashtra Limited (CIDCO) for construction of Stilt Bridge SBR - 9 for Eastern Connectivity for Navi Mumbai International Airport (NMIA) Project, in Joint Venture, where the Company is Lead Member of JV. 

The company has received LoA from CIDCO for the said Project and the contract is valued at ₹662.55 crore.

Ashoka stock rose by 1.20% on the NSE, trading at ₹163.80.

Union Bank of India has appointed Kanika Pasricha as Chief Economic Advisor of the Bank w.e.f. January 23, 2024.

The bank’s stock trades at ₹139.90 on the NSE, down by 1.34%.

Spandana Sphoorty Financial’s net profit increased 79 per cent at ₹127 crore in the third quarter ended December 2023 as against ₹71 crore in the corresponding quarter of the previous financial year. 

The revenue grew by 75 per cent at ₹657 crore as against ₹375 crore in the year-ago period while disbursements increased 8 per cent to Rs 2553 crore. 

Infibeam Avenues to acquire balance 49.50% stake from the existing shareholder of So Hum Bharat Digital Payments Private Limited (So Hum). The stock trades at ₹25.85 on the NSE, down by 0.96%.

Tega Industries Chile SpA, a material subsidiary of Tega Industries, has informed that its step-down subsidiary, Edoctum Peru S.A.C., has been dissolved.

Tega stock falls by 2.59% on the NSE, trading at ₹1,111.10.

Indoco Remidies reported its standalone net profit for the quarter ended December 2023 at ₹20.01 crore as against ₹27.87 crore in December 2022. 

The stock declines by 3.91% on the NSE, trading at ₹390.65.

Granules India reported its net profit for the quarter ended December 2023 at ₹142.7 crore as against ₹139.8 crore in December 2022. The stock trades at ₹418.40 on the NSE, up by 0.47%.

At least five brokerages said investors should sell Zee Entertainment’s stock as the it failed $10 billion merger deal with Sony India raised concerns about its survival in an increasingly competitive industry.

The collapse of the two-year-long talks on Monday to create one of India’s biggest TV broadcasters creates more uncertainty for cash-strapped Zee, in particular with Disney seeking to merge its Indian businesses with the media assets of billionaire Mukesh Ambani’s Reliance.

Major gainers on the NSE at 12:08 pm:

Cipla (6.82%); Sun Pharma (3.65%); Bharti Airtel (3.03%); Power Grid (2.51%); Hero Motocorp (2.43%)

Major losers:

IndusInd (-3.64%); HDFC Bank (-3.49%); Coal India (-3.36%); ONGC (-3.22%); Axis Bank (-2.93%)

Stocks advanced on BSE at 12:08 pm on January 23, 2024, were 1,156 against 2,605 stocks that declined; 170 stocks remain unchanged. Total stocks traded were 3,931. The number of stocks that recorded a 52-week high was 438, and those that hit a 52-week low was 19.

The shares of Zee Entertainment Enterprises Ltd (ZEEL) plunged 29 per cent in early trade on Tuesday, a day after Sony Group scrapped a $10 billion merger with the company.

In a statement released on its website, Sony Pictures Networks India (SPNI) said it issued a notice to ZEE, terminating the definitive agreement. “The Merger did not close by the End Date as, among other things, the closing conditions to the Merger were not satisfied by then. SPNI has been engaged in discussions in good faith to extend the End Date but the Discussion Period has expired without an agreement upon an extension of the End Date.”

Mahindra Logistics has announced development of warehousing facility in Phaltan, near Pune. Encompassing an area of 6.5 lakh sq. ft., this facility will be developed in two phases. The first phase, comprising 3.5 lakh sq. ft., is scheduled to be operational by the end of 2024. 

The stock trades at ₹434.60 on the NSE, down by 0.25%.

IDFC First Bank (-6.10%)

AU Small Finance (-4.71%)

PNB (-3.52%)

HDFC Bank (-3.12%)

Optiemus Infracom’s subsidiary Bharat Innovate Glass Technologies Pvt Ltd has signed a non-binding investment facilitation agreement with the Government of Tamil Nadu for the purpose of establishment of facility for the production of cover glass for mobile phones. 

Optiemus stock declines by 2.20% on the NSE, trading at ₹307.35.

Greaves Finance Limited has collaborated with ElectricPe to make EV buying more accessible. 

Greaves Cotton stock surges by 3.22% on the NSE, trading at ₹170.10.

Zinc futures on the Multi Commodity Exchange (MCX) has been on a decline since the beginning of this year. It met with a resistance at ₹235 in early January and fell over the past three weeks.

However, the price action over the past few sessions show that the downward momentum is fading.

Lykis Ltd has received ‘Three Star Export House’ Status Holder Certificate from the Directorate General of Foreign Trade, Ministry of Commerce & Industry, Government of India.

The stock rose by 2.29% on the BSE, trading at ₹60.40.

EaseMyTrip.com has unveiled holiday packages to Ayodhya and Varanasi and direct buses to Ayodhya.

The stock trades at ₹46.30 on the NSE, down by 0.11%.

The new rates, effective from January 22, impose a 15% duty on gold and silver findings and coins, including 10% Basic Custom Duty and 5% Agriculture Infrastructure Development Cess 

Oberoi Realty stock tumbles by 8.20% on the NSE, trading at ₹1,380.90. The company had received gross bookings of ₹882 crore during the launch of its new tower in Elysian at Oberoi Garden City, Goregaon, Mumbai.

The new model is available in vibrant colours: Lunar Green, Pacific Blue, Dark Silver, Rebel Red, and Cosmic Black

The RV400 BRZ features has a vibrant exterior underneath, 72V, 3.24 KWH Lithium-Ion battery, offering up to 150 KM in Eco Mode, 100 KM in Normal Mode, and 80 KM in Sport Mode. Charging is fast and efficient with 0-75% charge achieved in just 3 hours and a full 0-100% charge in 4.5 hours. 

RattanIndia Enterprises stock trades at ₹81.55 on the NSE, down by 0.24%.

Vascon Engineers’ stock rises by 1.87% on the NSE, trading at ₹89.75.

Shares of Medi Assist Healthcare Services listed with a premium of more than 11 per cent on Tuesday against the issue price of ₹418 per share.

The stock listed at ₹465, up 11.24 per cent from the issue price on the BSE. It further jumped 13.35 per cent to ₹473.80.

On the NSE, the scrip of the company started the trade at ₹460, up 10.05 per cent. Further, it advanced 12.37 per cent to trade at ₹470.65 per share. 

Intellect Global Transaction Banking (iGTB), the transaction banking arm of Intellect Design Arena, signed a deal with Crédit Agricole CIB, the corporate and investment banking arm of Credit Agricole Group.

iGTB’s Corporate Treasury Exchange (CTX) solution will enable the bank to support its corporate clients to optimize their money management through a cluster of services enabled by iGTB’s state-of-the-art eMACH.ai technology framework.

Intellect Design stock declines by 2.37% on the NSE, trading at ₹918.75.

Nifty 50 January futures (21,670) is up 0.3 per cent. The contract made an intraday high of 21,783 and has come down sharply from there. 

Intraday resistance will be in the 21,680-21,700 region.

Lemon Tree Hotels stock surges by 5.22% on the NSE, trading at ₹141.15. The company had recently signed franchise agreement - Keys Select by Lemon Tree Hotels, Anjar.

PSP Projects has emerged as Lowest (L1) Bidder for the development of a dairy plant at Gadhka, Rajkot, Gujarat, for National Dairy Development Board worth ₹444.63 crore. 

The stock is up by 2.03% on the NSE, trading at ₹776.70

Tur prices witness a remarkable rebound in Karnataka and Maharashtra, climbing from seasonal lows to over ₹9,500 per quintal. 

The government’s proactive move to directly purchase from farmers, coupled with an empty trade pipeline, fuels this resurgence, providing relief to growers amidst complex market dynamics.

Modal prices dropped to ₹8,000 per quintal in early January but rebounded to over ₹9,500 levels. This recovery provided relief to growers who were concerned about the earlier declining trend.

The government initiated a portal on January 4 to procure pulses directly from farmers for buffer stocks at MSP or market price, whichever is higher. This move aimed to support farmers and stabilize prices.

Modal prices in Kalaburgi rose from ₹8,111 on January 2 to ₹9,850 on January 20. Similarly, in Bidar and Yadgiri APMC yards, prices reached ₹9,593 and ₹9,760 on January 20. In Latur, Maharashtra, prices touched ₹10,000 on January 19, up from ₹8,550 on January 2.

Tur acreages were affected by delayed monsoons in 2023. Despite this, first advance estimates predict an output of around 34.21 lakh tonnes, slightly higher than the previous year’s 33.12 lakh tonnes

The government extended the duty-free import window for pulses like tur, urad, and lentils until March 31 aiming to boost domestic supplies and control prices. India’s tur consumption is around 45 lakh tonnes, with shortfalls met through imports from various countries.

Kolte-Patil Developers Ltd has signed two new society re-development projects in the western suburbs of Mumbai with total saleable area of 3.06 lakh square feet, valued at ₹545 crore. The two acquired projects are in prime residential areas, Dahisar and Versova.

The company’s stock trades at ₹531.30 on the NSE, down by 0.57%.

Bank Nifty began today’s session with a gap-up at 46,495.45 versus last week’s close of 46,058.20. But in the first hour of trade itself, the index lost all the gains and is now hovering around 46,020.

Larsen & Toubro’s heavy engineering arm has won multiple orders in the domestic and international markets. L&T Heavy Engineering (HE)’s Modification, Revamp and Upgrade (MRU) business segment has bagged order from a key oil and gas customer in KSA for their important debottlenecking project. 

The business has also been successful in winning DCU Revamp Project from one of the leading refineries in the domestic market. MRU team has also won the Coke Drum critical repair project from IOCL Gujarat Refinery. 

In the Process Plant Equipment overseas market, L&T HE has secured orders for several critical equipment which include 2 EO Reactors from a leading global chemical company in Thailand, Cr-Mo-V Reactors for an oil project in KSA, Large Stainless-Steel Column for NGL project in Australia and Heat Exchanger from a leading industry player in USA. On the domestic front L&T HE received orders to manufacture VGO Reactor, Critical CrMo-V Reactor, and proprietary design high pressure Heat Exchangers for a refinery project. The business also secured an order for Carbamate Condenser from RCF Mumbai for their Urea Plant.

Medi Assist Healthcare Services made a strong debut in the secondary market at Rs. 460, with a listing premium of around 11% over its issue price of Rs 418. This impressive performance followed an oversubscribed IPO by 16.25 times, further adding to the positive sentiment surrounding the health-tech firm’s prospects.

Medi Assist Healthcare Services Limited is a well-established health-tech and insurance-tech company, but the identified concerns regarding client concentration and dependence on subsidiaries still require ongoing monitoring.

This successful debut paints a brighter picture for Medi Assist, but cautious optimism is still advised. Thus, investors may book this listing gain and exit their holdings; however, those who want to hold positions are advised to keep a stop loss at issue price.

1 Gensol Engineering Limited

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2. Puravankara Limited

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3. Karnataka Bank Limited

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4. TATA ELXSI Limited

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11:00 AM Bharat Wire Rop

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12:00 PM Intense Tech

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12:30 PM Kewal Kiran

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2:30 PM IIFL Securities

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3:30 PM Indoco Remedies

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4:30 PM REC

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Tata Motors stock has hit a 52-week high at ₹827.60, currently trades at ₹824.30, up by 0.66% on the NSE. PTI report had revealed that the company plans to commence production of electric vehicles at the Sanand plant, acquired from Ford India from April this year.

(Nirmal Bang Securities) 

# Decline in NIM continues; NIM is expected to decline marginally in Q4; FY24 NIM should be in line with last year (i.e. 4.5%) 

# Bank has not witnessed any signs of stress in unsecured loans, NBFCs 

# Competition remains elevated for most of the retail products 

Outlook: Positive in long term 

•\u0009Advances came at Rs. 1153771 Cr (18% YoY, 3.9% QoQ) 

•\u0009The retail loan portfolio (54% mix) grew by 21% YoY & 4.5% QoQ. 

•\u0009The business banking portfolio grew by 32% YoY & 6.5% QoQ. 

•\u0009The SME business, comprising borrowers with a turnover of less than Rs. 250 Cr grew by 27% YoY & 6.7% QoQ. 

•\u0009The domestic corporate portfolio grew by 13% YoY and 2.9% sequentially. 

•\u0009NIM came at 4.43% vs QoQ 4.53% 

•\u0009Net interest income increased by 13% YoY & 2% QoQ 

•\u0009Opex grew by 22% YoY & 2% QoQ with cost to income coming at 40.6% vs QoQ 40.9% & YoY 38.2%. 

•\u0009PBP grew 11% YoY & 3% QoQ. 

•\u0009Credit Cost came at 0.4% vs YoY 1%, QoQ 0.2% 

•\u0009Bank made one time additional provisions of Rs. 627 Cr on investment in AIF as per RBI circular dated December 19, 2023. 

•\u0009PAT grew by 13% YoY & 0% QoQ. 

•\u0009Gross NPA came at Rs. 28775 Cr vs QoQ Rs. 29837 Cr at 2.3% vs QoQ 2.48% 

•\u0009Net NPA came at Rs. 5378 Cr vs QoQ Rs. 5046 Cr at 0.44% vs QoQ 0.43% 

•\u0009Slippages came at Rs. 5714 Cr vs QoQ Rs. 4687 Cr with slippage ratio of 1.98% vs QoQ 1.69% 

•\u0009O/s Restructured book stood at Rs. 3318 Cr vs QoQ Rs. 3536 Cr at 0.29% vs QoQ 0.32% 

•\u0009BB & Below book came at 0.51% vs QoQ 0.43% 

•\u0009Bank continues to hold contingency provisions of Rs. 13,100 Cr (1.2%). 

•\u0009Deposits increased by 19% YoY and 2.9% sequentially. 

•\u0009Avg. CASA ratio was at 39.4% vs QoQ 40.8% & YoY 45.3%. 

Stock is trading at P/E of 14.6x FY2E EPS & 2.7x trailing P/Adj. BV (adj. for subsidiaries) 

(Nirmal Bang Retail Research)

Result is in line with expectation 

Although reported profits are above expectations due to subdued opex; we also observe that loan growth has been decelerating for 6 consecutive quarters and asset quality has deteriorated 

NII came at Rs. 329 Cr vs expectation of Rs. 326 Cr, YoY Rs. 252 Cr, QoQ Rs. 317 Cr 

PBP came at Rs. 286 Cr vs YoY Rs. 213 Cr, QoQ Rs. 270 Cr 

Provision came at Rs. 31 Cr vs expectation of Rs. 25 Cr, YoY Rs. 8 Cr, QoQ Rs. 72 Cr 

PAT came at Rs. 200 Cr vs expectation of Rs. 189 Cr, YoY Rs. 151 Cr, QoQ Rs. 158 Cr 

Gross NPA came at Rs. 309 Cr vs QoQ Rs. 254 Cr at 0.91% vs QoQ 0.76% 

Net NPA came at Rs. 167 Cr vs QoQ Rs. 142 Cr at 0.49% vs QoQ 0.43% 

Loan Book came at Rs. 34053 Cr (+2.1% QoQ & +13% YoY) 

Quarter EPS is Rs. 15 

Stock is trading at P/E of 11.8x FY25E EPS & 2.5x trailing P/BV 

(Nirmal Bang Retail Research) 

Result is above expectation 

Dollar revenue came at $300.55 mn (3.0% QoQ, 13.7% YoY) QoQ $291.71 mn, YoY $264.35 mn 

Revenue from Operations came at Rs. 2498.2 Cr (3.6% QoQ, 15.2% YoY) vs expectation of Rs. 2489.1 Cr, QoQ Rs. 2411.7 Cr, YoY Rs. 2169.4 Cr 

EBIDTA came at Rs. 441.8 Cr (9.1% QoQ, 10% YoY) vs expectation of Rs. 432.5 Cr, QoQ Rs. 405.2 Cr, YoY Rs. 401.6 Cr 

EBITDA Margin came at 17.7% vs expectation of 17.4%, QoQ 16.8%, YoY 18.5% 

Adj. PAT came at Rs. 286.1 Cr vs expectation of Rs. 280.3 Cr, QoQ Rs. 263.3 Cr, YoY Rs. 267.6 Cr 

Quarter EPS is Rs. 37.2 

Stock is trading at P/E of 54.5x FY24E EPS 

(Nirmal Bang Retail Research) 

Result is ok 

Revenue from Operations came at Rs. 200.2 Cr (-23.7% QoQ, 0.6% YoY), QoQ Rs. 262.5 Cr, YoY Rs. 199.1 Cr 

EBIDTA came at Rs. 38.9 Cr (-37.1% QoQ, 15.8% YoY), QoQ Rs. 61.7 Cr, YoY Rs. 33.6 Cr 

Adj. PAT came at Rs. 33.2 Cr, QoQ Rs. 49.7 Cr, YoY Rs. 26.9 Cr 

Quarter EPS is Rs. 5.4 

Stock is trading at P/E of 33.46x TTM EPS 

(Nirmal Bang Retail Research) 

Result is ok 

Revenue from Operations came at Rs. 102.1 Cr (12.1% QoQ, -3.4% YoY) vs QoQ Rs. 91 Cr, YoY Rs. 105.7 Cr 

EBIDTA came at Rs. 28.5 Cr (42.3% QoQ, -11.6% YoY) vs QoQ Rs. 20.1 Cr, YoY Rs. 32.3 Cr 

EBITDA Margin came at 28% vs QoQ 22%, YoY 30.5% 

Adj. PAT came at Rs. 18.6 Cr vs QoQ Rs. 4.4 Cr, YoY Rs. 15.5 Cr 

Quarter EPS is Rs. 1 

Stock is trading at P/E of 44.1x TTM EPS 

(Nirmal Bang Retail Research) 

Result is above expectations 

Revenue from Operations came at Rs. 1395.7 Cr (-5.1% QoQ, 8.1% YoY) vs expectation of Rs. 1380.1 Cr, QoQ Rs. 1471.1 Cr, YoY Rs. 1291.3 Cr 

EBIDTA came at Rs. 468.4 Cr (-2.8% QoQ, 29.6% YoY) vs expectation of Rs. 426.7 Cr, QoQ Rs. 482.1 Cr, YoY Rs. 361.5 Cr 

EBITDA Margin came at 33.6% vs expectation of 30.9%, QoQ 32.8%, YoY 28% 

Adj. PAT came at Rs. 330.1 Cr vs expectation of Rs. 295.3 Cr, QoQ Rs. 340.1 Cr, YoY Rs. 243.2 Cr 

Quarter EPS is Rs. 12.1 

Stock is trading at P/E of 50.6x FY25E EPS 

(Nirmal Bang Retail Research) 

Result has improved 

Revenue from Operations came at Rs. 558.8 Cr (10.2% QoQ, 63.4% YoY) vs QoQ Rs. 507 Cr, YoY Rs. 342 Cr 

EBIDTA came at Rs. 240.4 Cr (51% QoQ, 107.9% YoY) vs QoQ Rs. 159.2 Cr, YoY Rs. 115.6 Cr 

EBITDA Margin came at 43% vs QoQ 31.4%, YoY 33.8% 

Adj. PAT came at Rs. 150 Cr vs QoQ Rs. 107.8 Cr, YoY Rs. 64.5 Cr 

Quarter EPS is Rs. 4.9 

Stock is trading at P/E of 12x TTM EPS 

(Nirmal Bang Retail Research)

Result is below expectations 

Revenue from Operations came at Rs. 1053.6 Cr (-13.5% QoQ, -35.3% YoY) vs expectation of Rs. 1162.7 Cr, QoQ Rs. 1217.4 Cr, YoY Rs. 1629.5 Cr 

EBIDTA came at Rs. 511.6 Cr (-19.8% QoQ, -45.6% YoY) vs expectation of Rs. 513 Cr, QoQ Rs. 638.2 Cr, YoY Rs. 940.4 Cr 

EBITDA Margin came at 48.6% vs expectation of 44.1%, QoQ 52.4%, YoY 57.7% 

Adj. PAT came at Rs. 360.2 Cr vs expectation of Rs. 373 Cr, QoQ Rs. 456.8 Cr, YoY Rs. 702.6 Cr 

Quarter EPS is Rs. 9.9 

Stock is trading at P/E of 30.5x FY24E EPS 

(Nirmal Bang Retail Research) 

Result is declining 

Revenue from Operations came at Rs. 20453.9 Cr (23.6% QoQ, 27.4% YoY) vs QoQ Rs. 16544.6 Cr, YoY Rs. 16054.4 Cr 

EBIDTA came at Rs. 684.9 Cr (-62% QoQ, 58.6% YoY) vs QoQ Rs. 1804.4 Cr, YoY Rs. 431.9 Cr 

EBITDA Margin came at 3.3% vs QoQ 10.9%, YoY 2.7% 

Adj. PAT came at Rs. 365.3 Cr vs QoQ Rs. 1195.4 Cr, YoY Rs. 144.2 Cr 

Quarter EPS is Rs. 24.5 

Stock is trading at P/E of 5x FY24E EPS 

Elecon Engineering stock hit 52-week high at ₹1,100. The stock currently trades at ₹1077.75 on the NSE, up by 0.18% following the receipt of ₹82.78 crore contract.

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

“In the short-term, sentiments influence the market more than other factors. Now, sentiments are positive globally as well as in India. The sentimental support from the mother market is strong since S&P 500 is at record high at 4850. Domestically the Pran Prathishta at Ayodhya has turned out to be a historic mega event boosting national sentiments substantially. These positives augur well for the market in the short run. Q3 results will impact specific stocks both positively and negatively. ICICI Bank’s numbers are excellent, beating the street. With ICICI Bank ticking all the right boxes in credit growth, net profit growth and asset quality, the stock is set to lead the rally in large caps.

Investors should also remember that sentimental impact cannot last long. Tensions in West Asia and the Red Sea are areas of serious concern. If something goes wrong, the market will be impacted since valuations are high. Therefore, even when optimistic, investors should be cautious.”

Anand James, Chief Market Strategist, Geojit Financial Services, comments on Nifty outlook

We had express our lack of confidence to climb back on the 22240-22400 trajectory in the face of 21800 posing a stiff resistance. While we wait for a break beyond the same for confirmation, slippage past 21570 may lend into a sideways trend with negative bias. A slow drop to the 20900 vicinity is a scenario which we have been watchful for, in the last week, but we will be watchful of bargain hunting resurfacing before testing 21350.

RateGain Travel Technologies Ltd has appointed Michel Taride as its board advisor. 

Rategain stock trades at ₹756.15 on the NSE, up by 0.04%.

Mid-caps and Small-caps outperformed Nifty once again, indicating that the risk-on sentiments are still prevalent at the start of 2024. Emerging market equities declined 2.2% in last one month, which aided Nifty (1%) in outperforming the EM and DM (0.7%) basket by a wide margin. However in last one week, the fall in Nifty has been steep at 2.4%. 

On a sectoral level, most notable outperformance came from Realty (13%), Infra (7.5%), Energy (7.4%) and Utilities (7.1%) while Banks underperformed the benchmark in every time frame (1W/M/Y) in last one year. 

Latest commentaries by the central bankers at the Davos meet have been hawkish, emphasizing for adopting a methodological approach instead of rushing to ease (policy) at first signs of progress in the inflation and growth dynamics. Governor Das, indicated that any premature policy move would prove to be costly for the economy. He sees the need for EM economies to be insulated from the spillovers of global currency movement. 

Disruption in the Red sea has started to impact trade activity, as altered shipping routes are raising transportation costs. Freight rate have risen by 127% (USD 3777/40ft container) in Jan’24. India’s exports to Europe and Africa forms ~35% of total exports while it is 26% in case of imports from these regions. We believe that the impact of disruption in the Red sea is likely to reflect in Jan’24 trade data. 

FII flows have reverted to negative territory in first 18 days of Jan’24. Selling pressure was significant in equities at USD 1.8bn vs positive flows of USD 7.5bn in the previous month. 

NSO’s first advance estimates for FY24 pegs real GDP growth of 7.3% which is higher than previous years 7.2% growth. But the implied growth for second half of FY24, is expected to moderate. Moderation in government consumption is likely to be significant vs private consumption. We are building-in realistic GDP growth expectations of 6.7% to 6.9% in the upcoming fiscal. 

Central governments capital spending needs to pickup, as only 59% of the budgeted amount (INR 10tn) has been during the first eight months of FY24. We expect Capex growth of 20% (INR 12tn) in the upcoming interim budget. 

Lower nominal GDP expected by the NSO, could impact governments’ ability to meet the fiscal deficit target set for FY24. Our assessment indicates that either the fiscal deficit would stretch to 6% of GDP vs 5.9% targeted else it would call for cost curtailment to the tune of INR 370bn. For next fiscal, we expect the fiscal deficit target to be set at 5.2% of GDP.

Major gainers 

Cipla (5.07%); ICICI Bank (3.31%); Power Grid (2.42%); Bharti Airtel (2.37%); Sun Pharma (2.25%)

Major losers:

Asian Paints (-1.94%); Britannia (-1.40%); Hindustan Unilever (-1.23%); HDFC Bank (-1%); BPCL (-0.96%)

The shares of Medi Assist Healthcare will be listed today. The company has fixed the IPO price at ₹418, the upper end of ₹397-418 price band.

The ₹1,171-crore IPO was subscribed 16.25 times. The Medi Assist IPO saw a strong response from both institutions and non-institutional investors. Against the 1.96 crore shares which were on offer, the IPO received bids for 31.87 crore shares. 

The shares of Zee Entertainment Enterprises Ltd (ZEEL) plunged 10 per cent in early trade on Tuesday, a day .

In a statement released on its website, Sony Pictures Networks India (SPNI) said it issued a notice to ZEE, terminating the definitive agreement. “The Merger did not close by the End Date as, among other things, the closing conditions to the Merger were not satisfied by then. SPNI has been engaged in discussions in good faith to extend the End Date but the Discussion Period has expired without an agreement upon an extension of the End Date.”

At 9.28 a.m., ZEEL’s share was trading ₹23.10 or 9.98 per cent lower at ₹208.30 on NSE.

Allsec Technologies Limited reported that its revenue from operations rose by 19.7% y-o-y in Q3 FY24, driven by growth in both verticals - Customer Experience Management (CXM) by 21.0% & Employee Experience Management (EXM) by 17.1%.

Oberoi Realty Ltd has launched a new tower in Elysian at Oberoi Garden City, Goregaon, and has recorded gross booking value of ₹882 crore for 2.20 Lakh sq. ft. (carpet area).

Aditya Gaggar, Director of Progressive Shares

Lacklustre trade was seen on 20th January and the Index ended the session lower at 21,571.80. Nifty50 has made a bearish engulfing candlestick pattern on the daily chart. We feel that the Index will oscillate in the range of 21,500-21,700. In the case of BankNifty, level of 45,500 will be considered a strong support while on the higher side it needs to clear the hurdle of 46,600 to resume its uptrend. As recommended earlier, Tyre stocks (Ceat- technical coverage, Goodyear- Symmetrical Triangle Breakout) performed on expected lines which boosted our confidence to remain positive on the same. From the Energy segment, one can opt for buy on dips strategy in Reliance while we continue to remain positive on HPCL and ONGC. The technical set-up of the Paper stocks is pointing towards a reversal and our preferred bet is JKPaper. The ongoing momentum in the PSU Banking sector is likely to extend further (Bank India and Union Bank of India).

Micro lender Spandana Sphoorty Financial’s net profit increased 79 percent at Rs 127 crore in the third quarter ended December 2023 as against Rs 71 crore in the corresponding quarter of the previous financial year. The revenue grew by 75 percent at Rs 657 crore as against Rs 375 crore in the year-ago period while disbursements increased 8 percent to Rs 2553 crore.

After gaining nearly 2 per cent on Monday, crude oil futures traded lower on Tuesday morning following concerns over the demand prospects for the commodity. At 9.14 am on Tuesday, March Brent oil futures were at $79.99, down by 0.09 per cent; and March crude oil futures on WTI (West Texas Intermediate) were at $74.71, down by 0.07 per cent. February crude oil futures were trading at ₹6214 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6265, down by 0.81 per cent; and March futures were trading at ₹6237 as against the previous close of ₹6272, down by 0.56 per cent.

Indian equity benchmarks, the Sensex and Nifty, kicked off on a positive note, buoyed by optimistic global signals. In early trade, the 30-share BSE Sensex surged by 444.45 points, reaching 71,868.20, while the NSE Nifty experienced a gain of 153.70 points, touching 21,725.50. 

However, according to analysts, the market will remain volatile as foreign portfolio investors step up their selling on every rise.

The focus is now shifted to corporate results and the upcoming Budget (or vote on accounts), said analysts, adding that stock-specific action will continue. Volume will remain low this week due to holidays, said analysts.

Meanwhile, Asian stocks are up moderately in the early deal on Tuesday, tracking the US stocks, which closed on a firm note overnight.

According to Deepak Jasani, Head of Retail Research, HDFC Securities, Indian markets are poised to open higher, mirroring the positive trend in most Asian markets and the recent gains in the US. The Dow Jones crossing the historic 38,000 mark and the S&P 500 achieving a second consecutive record high reflect the optimism in the global markets. Despite challenges in China’s blue-chip market, Indian equities have outshone Hong Kong, solidifying our position as the fourth-largest global equity market. Investors should remain cautious, given Nifty’s recent bearish signals, until it surpasses the resistance at 21852.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: Niche sectors like railway and power utilities saw huge buying interest. However, profit booking was seen in the IT sector after a strong run-up over the last few sessions following better-than-expected results by the IT heavyweight.

This week is a truncated week following the holiday on Monday on account of pran pratishtha of Ram temple in Ayodhya and on Friday on account of Republic Day, he said and added, “Traders should stay light as earnings season would get in full swing leading to stock specific action largely. Moreover, the interest rate decision of BoJ and ECB is due next week along with US GDP and PMI data, which would have an influence on the global rate cut trajectory.”

Rupak De, Senior Technical Analyst, LKP Securities, said: Only a decisive breakout on either side could initiate a directional move. A significant decline below 21500 might trigger a correction towards 21300 and below. Conversely, a robust breakout above 21700 is needed for a resumption of the uptrend.”

The BankNifty index displayed resilience by forming a higher low on the daily chart while maintaining the immediate support zone of 45700-45600, he further said. “To resume the uptrend, the index needs to overcome the immediate resistance at 46300, a breakthrough that could trigger short-covering, propelling it towards 46500/46800 levels. However, a close below the crucial support of 45600 might instigate a substantial downside correction towards 44000, he added.

Karur Vysya Bank, Tamilnad Mercantile Bank, Cipla, Oberoi Realty, Coforge, Colgate-Palmolive, IIFL Securities, Lloyds Metals, Mangalore Refinery and Spandana Sphoorty Financial

Karur Vysya Bank 3QFY24 Earnings

Financial Results

Link: https://nsearchives.nseindia.com/corporate/NSE_BSE_Q3_0001_22012024125114.pdf

Presentation

Link: https://www.kvb.co.in/docs/investor-presentation-2024-01-22.pdf

Tamilnad Mercantile Bank 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/ab4c6607-92dc-4654-bfd2-7c2979181165.pdf

Presentation

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/20cbb794-91b5-49ed-8b84-d74a2a76be09.pdf

Press Release

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/2a34f366-bea5-416b-85eb-2b15c2d704c5.pdf

Cipla 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/d7698b72-929f-4e53-9744-eb0328cfc3d3.pdf

Presentation

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/9199ccf7-4ff5-4f8f-82e9-c21f148618b8.pdf

Oberoi Realty 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/9325559f-149c-4330-8f8b-887500f3c638.pdf

Coforge 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/3d5221e8-3117-4b3a-bf45-518bfa246770.pdf

Presentation

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/ea18cba7-f349-427c-8d24-6bd2e98aa793.pdf

Colgate-Palmolive (India) 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/71ad3f40-22e7-4968-9119-553e71233f6b.pdf

IIFL Securities 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/5f4c5754-ef3c-430d-9a14-fc0c7dd78060.pdf

Lloyds Metals And Energy 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/eeace09e-5dc3-4d19-be38-b5494f61f784.pdf

Presentation

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/1ec15ff1-9159-4c41-b114-c32fc4e62f0d.pdf

Mangalore Refinery & Petrochemicals 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/7082d49e-23b1-4895-a8ef-78b7df077d22.pdf

Spandana Sphoorty Financial 3QFY24 Earnings

Financial Results

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/a2578e30-2e45-4a3c-96ae-f3d1c760fa9b.pdf

Presentation

Link: https://www.bseindia.com/xml-data/corpfiling/AttachLive/f136e9c1-6d69-4255-9714-d6a7e940103a.pdf 

The short-term outlook is bullish for Vaibhav Global. The stock price surged over 17 per cent last week. This rise has taken it well above two major resistances, one at ₹450 and the other at ₹490. 

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

We have a great stock idea for you today. This stock surged last week, breaking above two major resistances. Check out the latest bl.Today’s Pick episode to learn more.

On the Global front, The BOJ concludes its two-day monetary policy meeting today, though any expectations for a phasing out of its negative interest rate policy this month have been quashed in the wake of the country’s devastating New Year’s Day earthquake and dovish comments by the Governor. Meanwhile, in the US, the S&P 500 posted a second straight record high close on Monday as tech stocks added to recent gains and investors awaited upcoming corporate reports for clues on this year’s profit outlook. On the commodity front, Oil prices rose on Monday on concerns over global energy supplies following a Ukrainian drone strike on Russia’s Novatek fuel terminal and as extreme cold weather continued to hamper US crude production. Domestic market action would, largely, be concentrated around the Q3FY24 result reaction where investors would react to the results of ICICI Bank, Kotak Mahindra Bank, Cipla, etc. Also, the much-talked-about Sony Group Corp. said it has officially notified Zee Entertainment Enterprises Ltd. of plans to call off the merger between its India unit and the media network, ending a two-year acquisition saga and leaving Zee vulnerable to competition as rivals bulk up. Adani Ports will be in focus today after S&P Global Ratings has revised its outlook from negative to stable. Additionally, India’s stock market has overtaken Hong Kong’s for the first time in another feat for the South Asian nation whose growth prospects and policy reforms have made it an investor darling. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. On the domestic front, Indian equity markets are expected to see a gap-up start on Tuesday as they resume after a holiday on Monday and trends in the GIFT Nifty which also indicates a positive start for the broader index.

The 50 index witnessed a mild gap-up opening following a muted trading session, however, the index failed to hold the open gains as it succumbed to selling pressure immediately. It continued to decline throughout the trading session as the selling pressure intensified and closed with an outside bar formation on a relatively lower volume. The index is anticipated to attract further selling pressure on failing to sustain above the support zone of 21450-21500 on a closing basis.

Price band revised from 10% to 5%: Indian Renewable Energy Development Agency, Kamdhenu, Sanghi Industries.

Price band revised from 20% to 10%: Ganesh Housing Corp, SBC Exports. 

Ex/record date dividend: Angel One, Mas Financials. 

Moved into short-term ASM framework: Ganesh Housing Corp, SBC Exports. 

Moved out of short-term ASM framework: Allied Digital Services, AGS Transact Technologies, Easy Trip Planners, Polycab India.

Jindal Steel and Power: Promoter Siddeshwari Tradex revoked the pledge of 5.05 lakh shares on Jan. 16. 

Medplus Health Services: Promoter Agilemed Investments created a pledge of 3.9 lakh shares on Jan. 19. 

Cupid: Minerva Ventures Fund bought 0.7 lakh shares (0.52%) at Rs 1862.15 apiece. 

Global Surfaces: Shikhar Aggarwal bought 2.5 lakh shares (0.58%) at Rs 310 apiece.

Tourism Finance Corp: Alpana Mundra sold 8.15 lakh shares (0.9%) at Rs 188.8 apiece and Divya Mahesh Vaghela sold 5.16 lakh shares (0.57%) at Rs 192.37 apiece while Shruti Mohta bought 21 lakh shares (2.32%) at Rs 187.7 apiece and Garg Brothers bought 5.5 lakh shares (0.6%) at Rs 192.93 apiece and Naravi Infra and Utilities bought 5 lakh shares (0.55%) at Rs 184.94 apiece.

Infibeam Avenues: Abhishek Mayur Desai sold 39 lakh shares (0.14%), and Sonal Desai bought 39 lakh shares (0.14%) at Rs 26.45 apiece. 

Medi Assist Healthcare Services: The company’s shares will debut on the stock exchanges on Tuesday at an issue price of Rs 418 apiece. The Rs 1,171.58-crore IPO was subscribed 16.25 times on its third and final day. The bids were led by institutional investors (40.14 times), non-institutional investors (14.85 times) and retail investors (3.19 times).

Zee Entertainment Enterprises: Sony Group Corp. has officially notified that it plans to call off the merger between its India unit and Zee. The Sony Group has invoked arbitration against Zee and sought a termination fee of $90 million on account of alleged breaches of the deal. 

Kotak Mahindra Bank: The company approved the proposal to raise Rs 10,000 crore by way of the issuance of NCDs on a private placement basis. 

Adani Ports and Special Economic Zone: S&P affirmed the ratings of both Adani Group companies while revising their outlook to ‘Stable’ from ‘Negative’. 

Tata Motors: The automaker increased prices by 0.7% on average across its personal vehicle portfolio, including EVs. The price hike is to be effective on Feb. 1.

JSW Group: The Odisha government has sanctioned a special incentive package for JSW Group’s electric vehicle and component manufacturing projects. 

Tata Steel: The steel manufacturer approved the allotment of 8.65 crore shares to eligible shareholders of Tinplate Co. The company will allot shares at an exchange ratio of 33:10. 

Cyient: The company’s US-based unit agreed to settle a civil class action anti-trust lawsuit for $7.4 million. 

Keystone Realtors: The company will redevelop two societies in Malad, Mumbai, with a gross development value of about Rs 1,200 crore. 

SML Isuzu: The company won an arbitration award worth Rs 11.52 crore from Delhi Metro Rail Corp. 

Cigniti Technologies: The company redesignated its non-executive director, Srikanth Chakkilam, as the executive director and chief executive officer. 

Vikas Lifecare: The company acquired a 60% stake in SKY 2.0 Club, Dubai, for about $79 million. 

Tata Consultancy Services: The IT major enabled Euroclear Finland to integrate the core platform with ECB’s T2S platform. The integration is set to ease cross-border settlements for investors in Finnish securities. 

Sobha: The company approved the rights issue of shares worth up to Rs 2,000 crore. 

Shree Cement: The cement manufacturer started commercial production at its Nawalgarh cement plant in Rajasthan. 

Hero MotoCorp: The automaker appointed CG Motors as its distributor in Nepal. 

Hindustan Petroleum Corp: The company incorporated a new unit, HPCL Renewable and Green Energy, to consolidate its existing green business operations. 

State Bank of India: The company acquired 6.35% of Canpac Trends.

Torrent Power: Mehta Family Trust acquired shares from the promoter family in an inter-se transfer without any change in control or management. The holding company’s stake will remain at 53.56%. 

JM Financial: Atul Mehra has resigned from the position of Joint Managing Director.

Best Agrolife: The company incorporated a new wholly-owned subsidiary in Mauritius by the name of Best Agrolife Global. 

Spencers Retail: Neelesh Bothra has resigned from the position of Chief Financial Officer of the company. 

SG Mart: The company entered into separate agreements with Kubair Steel and Power and with Premier Bars to manufacture and supply various types of building material products, and separate agreements with Alliance Tubes and Galvanizers, and SG Metals and Steels India to use the trademark or brand name of the company for the supply of various types of building material products.

Century Extrusions: The company entered into a Memorandum of Understanding with the government of Odisha to set up a new aluminium extruded products manufacturing unit in the district of Jharsuguda to boost production capacities. 

Anupam Rasayan: The company incorporated a wholly owned unit, Anupam Europe AG, in Switzerland. 

Karnataka Bank: The lender named Venkat Krishnan V as chief information chief information officer effective Jan. 22.

Gandhar Oil Refinery, Axis Bank, Pidilite Industries, REC, Havells India, JSW Energy, United Spirits, CG Power and Industrial Solutions, Indus Towers, Tata Elxsi, L&T Finance Holdings, Sona BLW Precision Forgings, KEI Industries, Hitachi Energy India, Tanla Platforms, Mahanagar Gas, Granules India, Route Mobile, Glenmark life Sciences, Karnataka Bank ltd, Infibeam Avenues, Gravita India, Rattanindia Power, Puravankara, Cyient DLM, Rallis India, Indoco Remedies, and Apcotex Industries.

Indian markets could open higher, in line with mostly higher Asian markets today and positive US markets on Jan 22

U.S. stocks closed higher on Monday, with the Dow Jones Industrial Average finishing above the 38,000 milestone for the first time in history as the fourth-quarter earnings season ramps up. The S&P 500 posted a second straight record high close on Monday as tech stocks added to recent gains and investors awaited upcoming corporate reports for clues on this year’s profit outlook.

The Conference Board’s leading economic index for the U.S. economy fell again in December to mark the 21st decline in a row, but a widely predicted recession still appears no closer than when the long losing streak began. The leading index slid 0.1% last month, which was smaller than the 0.3% drop forecast by economists polled by the Wall Street Journal.

China again proved to be the outlier, with relentless foreign selling and weak confidence pushing the blue-chips to five-year lows. China’s blue-chips fell 0.7% after sliding 1.6% a day earlier to close at the lowest level in five years. Japan’s Sony Group has initiated a legal battle by claiming $90 million termination fees after it called off the merger with Zee Entertainment on January 22. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. That makes India the fourth-biggest equity market globally. Most Asian share markets were up on Tuesday, tracking the overnight rally on Wall Street which sent the benchmark S&P 500 to another record high amid little market-moving data and events.

Nifty ended the extended week on Jan 20 with a fall of 1.47% to close at 21571.80. Nifty has formed a bearish engulfing pattern on the weekly as well as on daily charts, which usually indicates a bearish trend reversal. It would be advisable to stay cautious unless Nifty surpasses the resistance of 21852. Support for the Nifty is seen at 21449 and 21150

Route – Tender 

Buyback Price: 300/-

Current Market Price: 255.35/-

Market Cap: Rs 1,695 crore 

Buyback Size: ₹30 Crs (Representing 2.89% and 2.88% of the aggregate of the Company’s fully paid-up equity capital and free reserves)\u0009\u0009

Buyback Size: 10,00,000 shares (Representing 1.51 % of O/s. shares)\u0009

Retail Quota: 1,50,000 Shares\u0009

Entitlement:

General Category - 19 Equity Shares for every 1,323 Equity Shares held on the Record Date

Retail Category - 31 Equity Shares for every 1,489 Equity Shares held on the Record Date

Tender Period:

Start Date - 23 January 2024 (Today)

Close Date - 30 January 2024

Obligation Date - 05 Febrauary 2024

Settlement Date - 06 Febrauary 2024

Route – Tender

Buyback Price: 450/- 

Current Market Price: 373.10/- 

Market Cap: Rs 15,528 crores 

Buyback Size: ₹700 Crs (Representing 9.82% and 9.52% of the aggregate of the Company’s fully paid-up equity capital and free reserves) 

Buyback Size: 1,55,55,555 shares (Representing 3.74 % of O/s. shares) 

Retail Quota: 23,33,333 Shares 

Buyback Record Date: 18 January 2024 

Entitlement: 

General Category - 1 Equity Share for every 29 Equity Shares held on the Record Date 

Retail Category - 1 Equity Share for every 14 Equity Shares held on the Record Date 

Tender Period: 

Start Date - 24 January 2024 

Close Date - 31 January 2024 

Obligation Date - 06 Febrauary 2024 

Settlement Date - 07 Febrauary 2024 

23 January 2024 (Today)

Derivative Segment 

• Axis Bank Ltd. 

• Granules India Ltd. 

• Havells India Ltd. 

• Indus Towers Ltd. 

• L&T Finance Holdings Ltd. 

• Mahanagar Gas Ltd. 

• Pidilite Industries Ltd. 

• REC Ltd. 

• United Spirits Ltd. 

Cash Segment 

• CG Power & Indus Solns Ltd. 

• Hitachi Energy India Ltd. 

• Infibeam Avenues Ltd. 

• JSW Energy Ltd. 

• KEI Industries Ltd. 

• Man Industries (India) Ltd. 

• Route Mobile Ltd. 

• Sona BLW Precision Forgings 

• Tanla Platforms Ltd. 

• Tata Elxsi Ltd. 

• The Karnataka Bank Ltd. 

• Ugro Capital Ltd. 

24 January 2024 

Derivative Segment 

• Bajaj Auto Ltd. 

• Balkrishna Industries Ltd. 

• Birlasoft Ltd. 

• Canara Bank 

• Container Corp Of India Ltd. 

• Dalmia Bharat Ltd. 

• DLF Ltd. 

• Exide Industries Ltd. 

• Indian Oil Corporation Ltd. 

• Laurus Labs Ltd. 

• Tata Steel Ltd. 

• Tech Mahindra Ltd. 

• TVS Motor Company Ltd. 

Cash Segment 

• Aarti Drugs Ltd. 

• Bharat Dynamics Ltd. 

• Blue Dart Express Ltd. 

• Ceat Ltd. 

• Chalet Hotels Ltd. 

• Indian Bank 

• Indian Overseas Bank 

• Laxmi Organic Industries Ltd. 

• MAS Financial Services Ltd. 

• Motilal Oswal Fin Serv Ltd. 

• PNB Housing Finance Ltd. 

• POWERGRID InVIT 

• Rainbow Children’s Medicare 

• UCO Bank 

• Ujjivan Small Finance Bank 

• Vardhman Textiles Ltd. 

25 January 2024 

Derivative Segment 

• ACC Ltd. 

• AU Small Finance Bank Ltd. 

• Cholamandalam Inv & Fin Co 

• Hindustan Petroleum Corp 

• Indian Energy Exchange Ltd. 

• Indraprastha Gas Ltd. 

• JSW Steel Ltd. 

• Punjab National Bank 

• SBI Cards & Pymt Services 

• SBI Life Ins Company Ltd. 

• Shriram Finance Ltd. 

• Syngene International Ltd. 

• Vedanta Ltd. 

Cash Segment 

• Adani Power Ltd. 

• Asahi India Glass Ltd. 

• Cyient Ltd. 

• Equitas Small Fin Bank Ltd. 

• India Grid Trust 

• Intellect Design Arena Ltd. 

• Maharashtra Scooters Ltd. 

• Privi Speciality Chemicals Ltd. 

• Sterlite Technologies Ltd. 

• Vedant Fashions Ltd. 

27 January 2024 

Derivative Segment 

Nil 

Cash Segment 

• APL Apollo Tubes Ltd. 

• Capri Global Capital Ltd. 

• Craftsman Automation Ltd. 

• Macrotech Developers Ltd. 

• Yes Bank Ltd. 

29 January 2024 

Derivative Segment 

• Bajaj Finance Ltd. 

• Bharat Electronics Ltd. 

• Bharat Petroleum Corp Ltd. 

• GAIL (India) Ltd. 

• ITC Ltd. 

• Marico Ltd. 

• Petronet LNG Ltd. 

Cash Segment 

• Adani Green Energy Ltd. 

• Aditya Birla Sun Life AMC Ltd. 

• CSB Bank Ltd. 

• Latent View Analytics Ltd. 

• Nippon Life India AMC 

• Nuvoco Vistas Corporation 

• Tata Investment Corporation 

• UTI AMC 

30 January 2024 

Derivative Segment 

• Bajaj Finserv Ltd. 

• Dr. Reddy’s Laboratories Ltd. 

• Larsen & Toubro Ltd. 

• M&M Financial Services Ltd. 

• Voltas Ltd. 

Cash Segment 

• Adani Total Gas Ltd. 

• Apar Industries Ltd. 

• Bajaj Holdings & Investment 

• Blue Star Ltd. 

• Gillette India Ltd. 

• JBM Auto Ltd. 

• Jubilant Ingrevia Ltd. 

• Kaynes Technology India Ltd. 

• KPIT Technologies Ltd. 

• Piramal Pharma Ltd. 

• Shyam Metalics And Energy Ltd. 

• SIS Ltd. 

• Star Health & Allied Ins Co 

• Symphony Ltd. 

• Triveni Engineering & Industries 

• Vaibhav Global Ltd. 

• ZF CV Ctrl Systems India Ltd. 

31 January 2024 

Derivative Segment 

• Ambuja Cements Ltd. 

• Bank Of Baroda 

• Dabur India Ltd. 

• Godrej Consumer Products Ltd. 

• IDFC Ltd. 

• Jindal Steel & Power Ltd. 

• Jubilant FoodWorks Ltd. 

• Maruti Suzuki India Ltd. 

• Shree Cement Ltd. 

• Sun Pharma Industries Ltd. 

Cash Segment 

• Ajanta Pharma Ltd. 

• Amara Raja Energy & Mobility 

• Carborundum Universal Ltd. 

• DCM Shriram Ltd. 

• IRB Infrastructure Developers 

• Jyothy Labs Ltd. 

• Kajaria Ceramics Ltd. 

• Kalyan Jewellers India Ltd. 

• Mankind Pharma Ltd. 

• Max Healthcare Institute Ltd. 

• Motherson Sumi Wiring India Ltd. 

• Poly Medicure Ltd. 

• P&G Hygiene & Health Care Ltd. 

• Relaxo Footwears Ltd. 

• Swan Energy Ltd. 

• Great Eastern Shipping Co 

• Westlife Foodworld Ltd 

01 February 2024 

Derivative Segment 

• Abbott India Ltd. 

• Aditya Birla Capital Ltd. 

• Bata India Ltd. 

• City Union Bank Ltd. 

• Mphasis Ltd. 

• Titan Company Ltd. 

Cash Segment 

• Aavas Financiers Ltd. 

• Aether Industries Ltd. 

• Aptus Value Housing Fin 

• Castrol India Ltd. 

• Deepak Fert & Petrochem Corp 

• Five-Star Business Finance Ltd. 

• Gujarat Alkalies & Chemicals Ltd. 

• HFCL Ltd. 

• Prism Johnson Ltd. 

• Raymond Ltd. 

• Rites Ltd. 

• Sumitomo Chemical India Ltd. 

• Tube Investments of India Ltd. 

• V-Guard Industries Ltd. 

02 February 2024 

Derivative Segment 

• LIC Housing Finance Ltd. 

• Torrent Pharma Ltd. 

Cash Segment 

• Alkyl Amines Chemicals Ltd. 

• Bank Of India 

• Bikaji Foods International Ltd. 

• Mahindra Holidays & Resorts 

• Mahindra Lifespace Developers 

• Medplus Health Services Ltd. 

• Tata Motors Ltd. - DVR 

• Ujjivan Financial Services Ltd. 

03 February 2024 

Derivative Segment 

• State Bank Of India 

Cash Segment 

• Clean Science & Tech Ltd. 

• Grindwell Norton Ltd. 

05 February 2024 

Derivative Segment 

• Bharti Airtel Ltd. 

Cash Segment 

• Alembic Pharmaceuticals Ltd. 

• Avanti Feeds Ltd. 

• Cholamandalam Fin Hldgs Ltd. 

• Kansai Nerolac Paints Ltd. 

• Orient Cement Ltd. 

06 February 2024 

Derivative Segment 

• Godrej Properties Ltd. 

• Max Financial Services Ltd. 

• Navin Fluorine International 

Cash Segment 

• Akzo Nobel India Ltd. 

• Computer Age Mgmt Services 

• Endurance Technologies Ltd. 

• Gujarat State Fert & Chem Ltd. 

• Procter & Gamble Health Ltd. 

• Timken India Ltd. 

• TTK Prestige Ltd. 

07 February 2024 

Derivative Segment 

• Cummins India Ltd. 

• Manappuram Finance Ltd. 

• Nestle India Ltd. 

• Tata Consumer Products Ltd. 

Cash Segment 

• Varroc Engineering Ltd. 

08 February 2024 

Derivative Segment 

• Apollo Hospitals Enterprise 

• Biocon Ltd. 

• Escorts Kubota Ltd. 

• Page Industries Ltd. 

Cash Segment 

• Esab India Ltd. 

09 February 2024 

Derivative Segment 

• Tata Power Company Ltd. 

Cash Segment 

• Emami Ltd. 

• Indigo Paints Ltd. 

10 February 2024 

Derivative Segment 

• MCX India Ltd. 

12 February 2024 

Derivative Segment 

• Samvardhana Motherson Int 

Cash Segment 

• BASF India Ltd. 

• Glaxosmithkline Pharma Ltd. 

• Gujarat Pipavav Port Ltd. 

• HEG Ltd. 

• JM Financial Ltd. 

• Lakshmi Machine Works Ltd. 

• TCI Express Ltd. 

13 February 2024 

Derivative Segment 

• Bosch Ltd. 

• Hindalco Industries Ltd. 

Cash Segment 

• RHI Magnesita India Ltd. 

14 February 2024 

Derivative Segment 

• Crompton Greaves Cons Ele 

• Ipca Laboratories Ltd. 

Cash Segment 

• Gland Pharma Ltd. 

20 February 2024 

Derivative Segment 

• ABB India Ltd. 

23 February 2024 

Derivative Segment 

Nil 

Cash Segment 

• Rain Industries Ltd. 

HSBC on ICICI Bank: Maintain Buy on Bank, raise target price at Rs 1270 from Rs 1260 

Nuvama on ICICI Bank: Maintain Buy on Bank, raise target price at Rs 1200 from Rs 1180 

Elara on ICICI Bank: Maintain Buy on Bank, raise target price at Rs 1214 from Rs 1200 

Emkay on ICICI Bank: Maintain Buy on Bank, raise target price at Rs 1400 

Citi on ICICI Bank: Maintain Buy on Bank, target price at Rs 1322 

Jefferies on ICICI Bank: Maintain Buy on Bank, target price at Rs 1250 

MOSL on ICICI Bank: Maintain Buy on Bank, target price at Rs 1230 

Emkay on Karur Bank: Maintain Buy on Bank, raise target price at Rs 200 

HSBC on Persistent: Maintain Buy on Company, raise target price at Rs 9875 

Jefferies on PayTM: Maintain Buy on Company, target price at Rs 1050 

Citi on Cipla: Maintain Buy on Company, target price at Rs 1380

MS on Can Fin Home: Maintain Overweight on Company, target price at Rs 1000 

MS on Coforge: Maintain Overweight on Company, target price at Rs 7200 

Jefferies on Coforge: Maintain Buy on Company, target price at Rs 7400 

Nuvama on Zensar: Maintain Hold on Company, raise target price at Rs 610 

Citi on Colgate: Maintain Sell on Company, raise target price at Rs 2000 

Citi on Persistent: Maintain Buy on Company, raise target price at Rs 5470 

Citi on Coforge: Maintain Buy on Company, target price at Rs 4910 

BofA on IDFC First: Maintain Underperform on Bank, raise target price at Rs 80 

Jefferies on Kotak Bank: Maintain Hold on Bank, target price at Rs 2050 

Citi on Kotak Bank: Maintain Neutral on Bank, target price at Rs 2040 

JP Morgan on Kotak Bank: Maintain Neutral on Bank, target price at Rs 2070 

MS on Kotak Bank: Maintain Equal weight on Bank, target price at Rs 2210 

UBS on ICICI Bank: Maintain Buy on Bank, target price at Rs 1175 

HSBC on Reliance Ind: Maintain Hold on Company, target price at Rs 2600 

MS on Reliance Ind: Maintain Overweight on Company, target price at Rs 3046 

MS on Oberoi Realty: Maintain Underweight on Company, target price at Rs 1180 

UBS on ZEE Ent: Maintain Neutral on Company, cut target to Rs 260 

CLSA on ZEE Ent: Downgrade to Sell, cut target to Rs 198/Sh from Rs 300 

Citi on ZEE Ent: Downgrade to Sell on Company, cut target to Rs 180 

Emkay on ZEE Ent: Downgrade to Sell on Company, cut target to Rs 175 

Nuvama on ZEE Ent: Maintain Reduce on Company, cut target price at Rs 190 

Elara on ZEE Ent: Maintain Sell on Company, cut target price at Rs 170

The upcoming interim budget would lack any big bang announcements but is likely to be watched for the pace of fiscal consolidation and policy priorities ahead, said Madhavi Arora, Lead Economist, Emkay Global.

-- While economic trade-offs stay challenging amid reducing fiscal impulse for growth, policy prerogatives and spirit will not get derailed, in our view. 

-- Although the risk of competitive populism has abated at the central level, we do expect a few relief measures for the rural/farm/welfare sector. That said, the capex/revex mix is likely to further improve, with capex/GDP projected at 3.3%.

-- The gross tax/GDP ratio is set to stay steady at 11.4% despite easing tax growth. RBI’s surplus may stay healthy albeit lower than last year. Divestment target to be sub Rs 500bn.

-- We assume 10.5% nominal GDP growth. A more aggressive nominal GDP assumption in the budget could make government balances look optically better.

-- Overall, we project FY25E GFD/GDP at 5.4% after 5.9% in FY24E, implying net and gross borrowing at a still-significant Rs11.5trn and Rs15.2trn, respectively. 

While net borrowing would be 65% of fiscal funding, small savings are likely to fund 25% of the GFD (27% in FY24E).

Growth rate normalizes; we remain positive (ADD - Maintained) 

3Q sales/PAT were largely in line with expectations. Margins were a tad lower due to lower exports and higher ad spends. C&W sales volume grew 18% yoy. 

■ B2B sales are likely to stay healthy while B2C may recover over the next 12 months. FMEG remains weak. Capex guidance raised to Rs8-9bn for FY24F. 

■ We await clarity on the IT search outcome to take a firm view on the corporate governance standards at Polycab. Retain ADD with a lower TP of Rs5,465 

Rating: BUY

Target Price : INR 167 

Upside : 21% 

CMP : INR 138 (as on 20 January 2024) 

Muted quarter; renewables key trigger 

Haldia, Dhariwal & standalone business lead to underperformance 

CESC (CESC IN) revenue rose 3.7% YoY to INR 32.4bn in Q3FY24, down 25% QoQ; EBITDA before adjusting for regulatory income declined 30% YoY to INR 3.5bnm down 46% QoQ, due to higher power procurement and fuel cost. Regulatory income increased 69% YoY to INR 5.6bn. Adjusted PAT fell 10.4% YoY to INR 3.0bn, led by lower profitability across the standalone business, fall in profitability in Haldia & Dhariwal business and lower other income. Other income dipped 40% YoY to INR 570mn. The absence of a tariff hike resulted in declining profitability by 8.6% YoY to INR 1.7bn for the standalone business. Lower generation due to lower availability of station due to maintenance shutdown resulted in a sharp fall in PAT for Haldia and Dhariwal by 32% YoY to INR 480mn and 18% YoY to INR 420mn, respectively. Generation was down by 10% at Haldia to 893mn units (MU) and by 20% at Dhariwal to 783MU, respectively. 

Rating: BUY 

Target Price : INR 1214 

Upside : 20% 

CMP : INR 1009 (as on 20 January 2024) 

Q3 in-line, well situated versus peers 

Better long-term outlook with high earnings quality 

ICICI Bank (ICICIBC IN) delivered steady Q3, reflected in resilient earnings delivery. Q3 PAT of INR 102.8bn was in line. Core profitability (ex-treasury) growth was below trend (up 10% YoY), but curtailed credit cost helped >20% YoY earnings growth, as expected. ICICIBC has started to tilt towards the narrative of core operating profit less provision growth from risk-calibrated core PPoP growth. Investors may have a transitionary concern, but this is not idiosyncratic to the bank and is an industry phenomena and may eventually align with strong compounding story. With robust underlying and levers to continue delivering better risk-adjusted return, even on high base, we see the risk of an earnings disappointment rather low. 

Rating: ACCUMULATE

Target Price : INR 856 

Upside : 11% 

CMP : INR 768 (as on 20 January 2024) 

Near-term headwinds persist 

Affordable housing finance tepid; low opex offsets provision spike 

Can Fin Homes (CANF IN) saw a slight beat on bottomline, up 27% QoQ/32% YoY on controlled funding cost (7.35% in Q3 versus 7.32% in Q2) and low opex (down 154bps QoQ due to one-offs in Q2). Provisions were higher than expected but more than halving sequentially as the entire restructured pool was recognized as NPA (NPA spiked to 0.9%, up 15bps QoQ) with no incremental provisions required on this stock. 

Loans at INR 340bn (in-line) grew just 2% QoQ as disbursements at INR 19bn fell short of expectations – CANF lost out on one month of business on operational rejig. Also, affordable housing finance was tepid given supply-side constraint, with incremental focus shifting to high-ticket lending (INR 2mn and above) to compensate for growth. BT cases were under control with attractive rate offering and better service. 

Shashwath T R, Co-founder and CEO of Mindgrove Technologies.

“Semiconductors and electronics are heavily globalized industries, but the events of the last few years - including COVID and other disruptions - have underscored the importance of each country having internal capabilities and a broad set of sources for crucial components. In this context, India can play a global role and emerge as a semiconductor powerhouse - in both design and production. Initiatives like Design Linked Incentive (DLI) and Production Linked Incentive (PLI) schemes are commendable first steps. Increasing the DLI scheme from $200 million to a more ambitious figure will significantly empower fabless startups in the sector, enabling them to reach higher goals and contribute meaningfully to the industry’s evolution. Moreover, within this framework, startups are eligible for a reimbursement limit of up to Rs. 15 Cr for which they can submit applications – Enhancing this threshold would support the entry of more players into the ecosystem. Moreover, it is crucial also to introduce nuanced policies that foster a robust design talent ecosystem. It is estimated that an additional 12 lakh skilled workforce are required, of which 2.75 lakh experts are required solely for design (as per a report by the Semicon India Future Skills Talent Committee). Accelerating the development of skilled talent is crucial for the industry’s expansion, and there needs to be concerted efforts from the government. Allocating funds towards initiatives that can achieve the goal of creating a skilled semiconductor workforce will be needed.” 

NIMs surprise, focus more on direction

Core better than estimated; change of guard to usher in new vistas

Kotak Mahindra Bank’s (KMB IN) Q3 PAT at INR 30bn was marginally below our estimates. While NII was better than estimated (NIMs flat QoQ at 5.22% versus our expectations of drop, better than peers), higher opex (up 7% QoQ) and higher provisions restricted PAT. Earnings aside, we believe near-term discussions are more likely to be centered around the new CEO’s strategy, possibilities of management change and other softer aspects than on critical earnings aspects (of core delivery, liability movement etc.). While overall earnings are steady, improvement triggers seem limited. Rich valuations, amidst uncertainty, leave little room for maneuvering.

Valuations: Reiterate Accumulate; TP revised to INR 2,004 

The change of guard at KMB has been a long-standing overhang. Hereon, the focus will be more on softer aspects than earnings delivery. Historically, such transitions have been choppy for others and thus, we expect near-term uncertainty for KMB (with certain price risks). KMB is likely at peak earnings and this transition may add to uncertainty, thus keeping re-rating in check. We introduce FY26E estimates and roll over to September 2025E, leading to raised SoTP-TP of INR 2,004 (from INR 1,924). Maintain Accumulate. 

CREDAG maintained a healthy credit growth momentum (+31% YoY/4% QoQ), but higher provisions caused a 7% miss on PAT at Rs3.5bn/5.5% RoA. Company reported nearly-stable margins after the continual expansion for the past few quarters, mainly on account of the higher NPA formation due to TN floods and conscious reduction in lending yields (50bps), as per the Board policy. Headline GNPA ratio inched-up by 20bps QoQ to 0.97%, while the PAR 0+ pool increased by 50bps QoQ to 1.8%. Company expects NPAs to recede as business normalizes. It has completed the CBS implementation and expects operating leverage to gradually kick-in, thereby supporting healthy RoAs.

Factoring-in the margin normalization and higher provisions, partly offset by lower opex, we cut FY24E earnings by 3%. However, we expect CREDAG to deliver 5.6% RoA, which should gradually moderate to 5.4%-5% over FY25-26E due to margin normalization and provision build-up. We retain BUY on the stock with revised TP of Rs2,000/share (earlier Rs1,960), based on 3.3x Dec-25E ABV 

Kunal Gala, Partner, Deal Value Creation, BDO India - Global Capability Centres:

The anticipation is for a transformative budget for Global Capability Centres accompanied by key reforms that can reshape India’s business landscape. Expectations include enhanced export incentives and a reduced corporate tax regime at 15%, aiming to develop of tier 2 locations, such as Ahmedabad, Kolkata, Coimbatore, Jaipur, and Indore, to attract investments. Extending tax benefits of GIFT City to all sectors, boosting innovation with incubation hubs, and reinstating weighted deductions for R&D could be transformative. Additionally, a crucial focus on advanced skill development, where over 50% of GCCs plan to invest in emerging technologies can prove to be fruitful. Revisions in safe harbour rules and state-level interventions for mature GCC hubs are needed for infrastructure development. Lastly, facilitating GST credits, especially on capital goods, and considering Bengaluru as a metro city for HRA benefits will further contribute to a vibrant GCC ecosystem. These expectations, supported by industry insights, can pave the way for a dynamic and globally competitive GCC sector in India. 

Kunal Gala, Partner, Deal Value Creation, BDO India - Energy Sector:

The energy sector is eagerly anticipating the interim Union Budget, focusing on a cleaner and sustainable future. With hopes for a spotlight on green hydrogen and natural gas, the oil and gas industry seeks reforms to boost natural gas consumption and support the adoption of renewable energy. There’s a plea to bring petroleum products under GST, and the power sector emphasizes the need for incentives in green hydrogen and energy storage solutions. Industry players are urging for lower interest rates to enhance competitiveness globally. While Finance Minister Nirmala Sitharaman’s budget may be a vote-on-account, the energy sector anticipates crucial allocations for the transition to cleaner fuels and sustainable practices. 

“In anticipation of India’s 2024 budget, expectations are high for impactful economic shifts. Key forecasts suggest a strategic cut in corporate tax rates, aiming to reduce the fiscal deficit to 5.2% of GDP in FY25. There is a strong focus on greener fuels aiming to revolutionize the energy sector. Additionally, targeted support for microfinance institutions is anticipated, enhancing their reach and stability. As elections approach, the budget is expected to include prudent populist measures, striking a balance between economic strategy and voter appeal.”

We expect Axis Bank to report good set of numbers in Q3FY24. Though the bank is likely to report NIM deterioration both sequentially and annually due to high cost of funds, the high yield account from the CITI merger will partially offset the margin compression by 15-20bps. Furthermore, the bank’s asset quality is set to improve further as most of the one-offs have been accounted in H1FY24, and the bank’s promptness in providing for additional provisions. We are optimistic that Axis Bank is poised to come out with healthy growth across all the financial parameters in Q3FY23.

Our SELL call on Colgate has been a factor of limited visibility on earnings over the medium term, given the high margin gets into the base and structural growth remains elusive. Q3 results were above our estimates, where net sales/EBITDA/Adj. PAT grew 8%/30%/36%. Toothpaste revenue grew 10% with 1% volume growth. Historically, high gross margin of 72% aided historic high EBITDA margin at 33.6% in Q3FY24. With consistent margin-led earnings surprise and actions to enhance category prospects (through enhanced communication, aiding category development needs), we now lift our valuation multiple to 39x from 35x, in line with its 10-year historic fwd. avg. P/E. We now see 7% sales and 7% earnings CAGR over FY24-26E. On account of this along with 3% earnings upgrade, our Dec-24 TP has increased to Rs2,100 (Rs1,825).

The upcoming interim budget would lack any big bang announcements but is likely to be watched for the pace of fiscal consolidation and policy priorities ahead. While economic trade-offs stay challenging amid reducing fiscal impulse for growth, policy prerogatives and spirit will not get derailed, in our view. Although the risk of competitive populism has abated at the central level, we do expect a few relief measures for the rural/farm/welfare sector. That said, the capex/revex mix is likely to further improve, with capex/GDP projected at 3.3%. The gross tax/GDP ratio is set to stay steady at 11.4% despite easing tax growth. Overall, we project FY25E GFD/GDP at 5.4% after 5.9% in FY24E, implying net and gross borrowing at a still-significant Rs11.5trn and Rs15.2trn, respectively. While net borrowing would be 65% of fiscal funding, small savings are likely to fund 25% of the GFD (27% in FY24E).

ADD - Target: ₹6,895

Coforge reported strong Q3FY24 revenues at $282mn, up 1.8% QoQ and 12.0% YoY in cc (+1.4% QoQ and +12.0% YoY in USD terms). INR revenue for the quarter stood at INR23,233mn, up 2.1% QoQ and 13.0% YoY. The company recorded a total order intake of $354mn for Q3FY24 i.e. 8th consecutive quarter of $300+ mn order intake. The total order book executable over the next 12 months is at $974mn, up 15.8% YoY. PAT for the quarter came at INR2,380mn, up 31.6% QoQ and 4.3% YoY. EPS for the quarter came at INR38.6.

Valuation: Management is confident of achieving its lower end of guidance of 13-16% cc revenue growth for FY24E backed by high order intake during the quarter. We expect a Revenue/EBIT/PAT CAGR of 16.2%/19.5%/25.4% respectively over FY23-FY26E. We maintain our rating to ADD and arrive at a revised target price of INR6,895 implying a P/E of 34x (modified) on SeptFY26E EPS of INR203.

Add; Target: ₹8,610

Persistent Systems reported healthy Q3FY24 revenues at $300.6mn (+3.1% in cc), up 3.0% sequentially and 13.7% YoY in USD terms despite the furloughs and softer demand environment. In INR terms, revenue came at INR24.9bn, up 3.6% sequentially and 15.2% YoY. PAT for the quarter stood at INR2,861mn (+20.2% YoY).

Persistent is committed to proactively staying closer to their clients and aiding them in prioritizing their technology spend towards cost optimization and transformation. We expect Revenue/EBIT/PAT to grow at a CAGR of 19.1%/23.1%/24.8% respectively over FY23-FY26E. We maintain our rating to ADD and arrive at a revised target price of INR8,610 implying a PE of 41x (modified) on SeptFY26E EPS of INR210. The stock has rallied around 5% last week and hence we have a limited upside.

The Board of Directors of API Holdings Limited on the recommendation of Nomination and Remuneration Committee approved the appointment of Rahul Guha, Managing Director and Chief Executive Officer of Thyrocare Technologies, subsidiary of API, as President – Operations of API and designated as Key Managerial Personnel of API with immediate effect.

Indian equity indices, the Sensex and Nifty, are likely to open flat but on a positive note, thanks to upbeat global cues. However, according to analysts, the market will remain volatile as foreign portfolio investors step up their selling on every rise.

Gift Nifty at 21757 indicates a flat opening against Nifty January futures’ 21,604 and February futures value of 21,765.

The focus is now shifted to corporate results and the upcoming Budget (or vote on accounts), said analysts, adding that stock-specific action will continue. Volume will remain low this week due to holidays, said analysts.

Axis Bank, CG Power, Cyient DLM, Granules, Havells, ICRA, Infibeam, JSW Energy, Karnataka Bank, L&T Finance, Muthoot Capital, NACL, Netweb Tech, Pidilite, RECL, Sona BLW, Tanla, Tata Elxsi, United Spirits 

Foreign portfolio investors (FPIs) started the year with robust interest in Indian equities, but a shift in sentiment has seen them turn cautious. From being net buyers in December 2023 with a record inflow of ₹66,134 crore, FPIs have become net sellers in January 2024, offloading equities worth ₹13,047 crore in the first three weeks, data with depositories showed.

Agri-input manufacturer Nova Agritech’s public issue opens today for subscription. The IPO, which closes on Wednesday, comes at a price band of ₹39-41. Investors can bid for a minimum of 365 shares.

While not more than 50 per cent is reserved for institutional investors, retail investors and HNIs can bid a minimum of 35 per cent and 15 per cent respectively of the issue. 

The ₹143.81-crore IPO from the soil health management, crop nutrition and crop protection products company consisted of a fresh issue of ₹112 crore and an offer-for-sale (OFS) of up to 77,58,620 shares (worth ₹31.81 crore) by the selling shareholder Nutalapati Venkatasubbarao. 

The stock is proposed to be listed on the BSE and NSE.

The initial public offering of Epack Durable was subscribed 80 per cent at the of day 1 of issue opening on Friday. 

The ₹640-crore IPO will now close on Wednesday instead of Tuesday, as Monday was declared holiday. The IPO comes with a price band of ₹218-230 and the market lot is 65 shares.

As against on offer of about 1.95 crore shares (net off anchor portion), the IPO received bids for 1.56 crore shares. 

Buzzing Stocks: Zee Entertainment, Tata Motors, SJVN, Coal India, SAIL, NMDC, InterGlobe Enterprises, Indian Hotels, Elecon Engineering, Jindal Stainless, Tuticorin Alkali Chemicals, Reliance Industries, L&T, Bharti Airtel, 3i Infotech, GE Power, Lemon Tree Hotels, Hero Moto Corp, SRF, JM Financial

IIFL Securities(Fv2) 164 30D H/L 169.90/125

Cons.PBT: 203.18 vs 139.51 vs 85.05 cr.

PAT: 150.51 VS 107.63 VS 64.56 Cr. 

---------------------------------

Transformers & rectif.(TRIL)Fv1(271) 30D H/L 287.75/178

Cons.PBT: 20.58 vs 3.01 vs 13.85 cr.

PAT: 15.72 VS 1.89 VS 14.12 Cr. 

---------------------------------

LLOYDS Metals & Energy(Fv1)593 30D H/L 639/565

Cons.PBT: 444.19 vs 295.04 vs 230.03 cr.

PAT: 331.5 VS 231.25 VS 230.03 Cr.

--------------------------------

Atishay Ltd(48.85)(BSE:538713) 30D H/L 50.46/39

PBT: 2.68 vs 1.4 vs 0.41 cr./ PAT: 1.89 VS 1.03 VS 0.28 Cr. 

-------------------------------- 

Monarch Networth cap.(528) 30D H/L 542/423

Cons.PBT: 52.58 vs 50.44 vs 19.05 cr.

PAT: 38.56 VS 37.02 VS 14.01 Cr. 

--------------------------------

Bharat Wire Ropes(380) 30D H/L 401.90/293

Cons.PBT: 35.37 vs 32.93 vs 25.30 cr.

PAT: 26.35 VS 24.41 VS 18.89 Cr. 

------------------------------------

GENSOL ENGG(855) 30D H/L 911/750

Cons.PBT: 17.42 vs 17.20 vs 3.74 crore

PAT: 12.31 VS 11.33 VS (-) 1.90 Cr.

• ABFRL

• BALRAMCHIN

• DELTACORP

• IEX

• IRCTC

• NATIONALUM

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• POLYCAB

• RBLBANK

• SAIL

• ZEEL

TENT Japan BOJ Policy Rate (Expected: -0.10% versus Previous: -0.10%)

20.30 U.S. Richmond Manufacturing Index (Expected: -7.0 versus Previous: -11.0)

Johnson & Johnson (Pre market) (Sector – Healthcare)

Procter & Gamble Company (The) (Pre market) (Sector – Consumer Non-Cyclicals)

Verizon Communications Inc. (Pre market) (Sector – Technology)

General Electric Company (Pre market) (Sector – Consumer Non-Cyclicals)

RTX Corporation (Pre market) (Sector – Industrials)

Lockheed Martin Corporation (Pre market) (Sector – Industrials)

3M Company (Pre market) (Sector – Consumer Non-Cyclicals)

D.R. Horton, Inc. (Pre market) (Sector – Consumer Cyclicals)

PACCAR Inc. (Pre market) (Sector – Industrials)

Halliburton Company (Pre market) (Sector – Energy)

Ericsson (Pre market) (Sector – Technology)

Synchrony Financial (Pre market) (Sector – Financial)

Webster Financial Corporation (Pre market) (Sector – Financial)

Invesco Plc (Pre market) (Sector – Financial)

MakeMyTrip Limited (Pre market) (Sector – Travelling)

Old National Bancorp (Pre market) (Sector – Financial)

GATX Corporation (Pre market) (Sector – Financial)

Atlantic Union Bankshares Corporation (Pre market) (Sector – Financial)

Community Bank System, Inc. (Pre market) (Sector – Financial)

Forestar Group Inc (Pre market) (Sector – Industrial)

Sandy Spring Bancorp, Inc. (Pre market) (Sector – Financial)

Peoples Bancorp Inc. (Pre market) (Sector – Financial)

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

Texas Instruments Incorporated (Post market) (Sector – Technology)

Intuitive Surgical, Inc. (Post market) (Sector – Healthcare)

Canadian National Railway Company (Post market) (Sector – Industrials)

Baker Hughes Company (Post market) (Sector – Energy)

Steel Dynamics, Inc. (Post market) (Sector – Basic Materials)

East West Bancorp, Inc. (Post market) (Sector – Financial)

Stride, Inc. (Post market) (Sector - Academic & Educational Services)

NBT Bancorp Inc. (Post market) (Sector – Financial)

Renasant Corporation (Post market) (Sector – Financial)

WesBanco, Inc. (Post market) (Sector – Financial)

Triumph Financial, Inc. (Post market) (Sector – Financial)

Trustmark Corporation (Post market) (Sector – Financial)

National Bank Holdings Corporation (Post market) (Sector – Financial)

Veritex Holdings, Inc. (Post market) (Sector – Financial)

Navient Corporation (Tentative) (Sector – Financial)

Taro Pharmaceutical Industries Ltd. (Tentative) (Sector – Healthcare)

City Holding Company (Tentative) (Sector – Financial)

First Busey Corporation (Tentative) (Sector – Financial)

Weekly snapshot: Indian equities closed in red zone amid the weakness from financials after subdued start of Q3FY24 from banking heavyweights. 

Weekly Fund-flow Activities: The FIIs have Sell equities worth of Rs 22427.0 cr in while DIIs have bought equities of Rs 11432.04 cr in cash segment. 

Indices Performance: Nifty 50 has closed negative with loss of 1.47 percent. Nifty Bank underperformed and closed in red zone with loss of 4.21 percent. 

Macro Data: Monetary policies from ECB and Bank of Japan, US Core PCE Price index and manufacturing PMIs from major economies are scheduled macro events for next week. 

Weekly Outlook: During the truncate week, the equity market is expected to remain focused on the earnings and central banks’ policies. Volatility of Dollar index and Treasury yields is also an important factor to remain on top of the mind of the market participants

Provisional Cash Rs. In Crs.

FII/FPI: NET SELL: -545.58

(305.58 - 851.16) 

DII: NET SELL: -719.31

(3467.93 - 4187.24)

In the holiday-shortened week, stock markets are poised to be influenced by quarterly earnings, global trends, and foreign investors’ trading activity. With equity markets closed on Friday for Republic Day, analysts highlight the pivotal impact of the Bank of Japan (BoJ) and European Central Bank (ECB) interest rate decisions, coupled with US GDP data, on market dynamics. 

Notable companies such as Axis Bank, JSW Energy, Bajaj Auto, DLF, ACC, and JSW Steel are set to announce Q3 earnings. Last week witnessed market volatility, marked by a substantial decline in Nifty and Sensex, exacerbated by Bank Nifty’s underperformance due to HDFC Bank’s significant post-earnings drop. Global factors, including Japan’s monetary policy and US economic data, alongside domestic events, will guide market movements. Additionally, the trading pattern of Brent crude and the rupee-dollar trend will play a crucial role in market activity.