Share Market Highlights 20 December 2023: Sensex sheds 931 pts to settle at 70,506, Nifty at 21,150; all sectors in red

Mangalore Refinery and Petrochemicals Limited (MRPL) has informed that the company has received notices from BSE and NSE for not having required number of Independent Directors on the board for the quarter ended June 2023.

The non-compliance of provisions of Regulation 17 (1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR) has resulted in the levy of fine of ₹5,42,800 each from BSE and NSE.

After hitting a low of ₹214.95 per kg early last week, the Zinc Futures contract on the Multi Commodity Exchange (MCX) has bounced back sharply. The contract is currently trading at ₹227 per kg.

Benchmark Nifty 50 posted its worst session in nine months on Wednesday as investors booked profits, while small and mid-cap stocks tumbled too.

The blue-chip NSE Nifty 50 fell 1.41% to 21,150.15, its worst performance since mid-March, while the S&P BSE Sensex shed 1.30% to 70,506.31.

Both indexes had risen 0.65% earlier in the session to all-time highs.

The more domestically focussed small- and mid-caps underperformed the benchmarks, dropping 3.63% and 3.27%, respectively. This was the worst session in three months for small-caps and 12 months for mid-caps.

The rupee ended flat at 83.18 (provisional) against the US dollar on Wednesday amid massive selling in equity markets as concerns over oil supplies through the Red Sea route dented investor sentiment.

Forex traders said though the US dollar index below 102 level provided support, the Indian currency was weighed down by foreign fund outflow amid volatile crude oil prices.

At the interbank foreign exchange market, the local unit opened at 83.17 and traded between the peak of 83.13 and the lowest level of 83.18 against the dollar. It finally settled at its previous closing level of 83.18 (provisional) against the greenback.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent higher at 101.87 on Wednesday.

Global oil price benchmark Brent crude climbed 0.78 per cent to USD 79.85 per barrel.

Delhivery launched the Bhiwandi Mega Gateway, a colossal trucking terminal covering 1,200,000 sq ft. The facility aims to handle over 8,000 tonnes of freight daily, accommodating 1600 vehicles and processing 32,000 shipments per hour. Shares up by 0.60% to Rs 366.20, on the BSE.

Adani Energy Solutions Ltd incorporated a wholly-owned subsidiary, Arasan Infra Two Limited. It is yet to commence business operations. The acquisition involves 100% shareholding in AITL at a face value of Rs 10 per share. Shares were down by 5.96% to Rs 1011.55 on the BSE.

Major gainers

Oil and Natural Gas Corporation Ltd (2.05%), Tata consumer products Ltd. (1.54%), Britannia industries Ltd. (1.08%), HDFC Bank Ltd. (0.75%), Hero motocorp Ltd (0.21%)

Major losers

Adani ports and special economic zone Ltd. (-4.96%), Adani enterprises Ltd (-4.80%), UPL Ltd. (-3.97%), Coal India Ltd. (-3.58%), Tata steel Ltd (-3.91%)

A total of 3,900 stocks were traded on the BSE, of which, 2,758 advanced, while 3,045 declined and 97 stocks remained unchanged. As many as 348 stocks hit a 52 week high and 24 stocks hit a 52 week low at 3 pm on Wednesday.

Blue Star Limited receives tax demands totaling Rs. 5.62 crore from Maharashtra and Rajasthan state GST departments for the financial year 2017-2018. The company is in the process of appealing against the orders. Shares were up by 1.57% to Rs 933.95 on the BSE.

​Supreme Petrochem Ltd​ has informed the stock exchanges that it has commenced production at its Chennai plant, which was disrupted due to floods caused by cyclone Michaung .

​The company’s stock traded at ₹554.80​ on the BSE as of 2:21 pm on Wednesday, down by 0.84 per cent.

Thermax Limited faced a non-utilisation penalty of Rs 31.28 lakh imposed by the Gujarat Industrial Development Corporation (GIDC) for the delayed use of allotted space at Jhagadia Industrial Estate. Shares down by 0.28% to Rs 3,002.28 on the BSE.

Can Fin Homes Limited announced an interim dividend of Rs 2 per equity share for the Financial Year 2023-24. The Record Date for eligible members for the dividend payment is set for December 29, 2023, and the dividend will be credited by January 19, 2024. Shares were down by 1.90% to Rs 767.65 on the BSE.

Sharp unwinding appears to have occurred in Mid-cap and Small-cap stocks as part of profit-taking from constituents. The NIFTY Small-cap 100 recorded a percent change of -2.07%, while the NIFTY Mid-cap 100 experienced a change of -1.31%.

Sharp fall happened around 1:15 pm in many counters. Some stocks fell over 5 per cent.

India will be at the top of the resilience among the top ten economies in the next many years, says industry body PHDCCI.

India has emerged as the most resilient economy among the top ten leading economies in the post pandemic years of 2022, 2023, according to an analysis conducted by the PHD Research Bureau, PHD Chamber of Commerce and Industry.

The industry body released a research report on “Geopolitical Spillovers and Resilience of the Indian Economy” during the Conference on “Geopolitical Spillovers and Resilience of the Indian Economy” held on 19th December 2023 at the PHD House, New Delhi. 

The analysis conducted by the Research Bureau, PHDCCI, is based on five key economic indicators, GDP growth, export growth, total investment, gross national savings, and debt to GDP ratio. As these indicators are vulnerable and have many domestic and global headwinds, the industry body decided and chose these indicators to check the resilience of the leading economies, said Mr. Sanjeev Agrawal, President , PHD Chamber of Commerce and Industry.

Indian Renewable Energy Development Agency Ltd’s shares down by 5.43% to Rs 106.32. The board approved to raise of unsecured, redeemable, non-convertible, non-cumulative, taxable, bonds worth Rs 500 crore at base issue

​HDFC Bank Limited​ allotted 7.71% unsecured, redeemable infra bonds worth Rs 7,425 crore on a private placement basis for funding infrastructure and affordable housing projects. The issuance comprises 7,42,500 bonds with a face value of Rs 1,00,000 each. Shares up by 0.71% to Rs 1664.80 on the BSE.

The BSE Sensex was up by 0.01% or 7.84 points to 71,445.03 while NSE Nifty was up by 0.01% or 5.95 points to 21,459.05 at 1.20 pm

Salasar Techno Engineering’s board of directors approved increasing the company’s authorised share capital to Rs 175 crore and recommended a bonus issue in the ratio of 4:1. Shares were up by 2.76% to Rs 62.88 on the BSE.

NSE: Stocks that are at a 52-week high at 1.10 pm - Capital Trust Limited (19.99%), Oil India Limited (14.24%), Hindcon Chemicals Limited (15.04%), CL Educate Limited (18.75%), S.A.L. Steel Limited (19.87%).

Thomas Cook India receives ‘MICE Travel Operator of the Year’ at the Economic Times Travel & Tourism Annual Awards - second edition. The accolade recognizes Thomas Cook’s delivery in managing events, including India’s G20 Summit and the 37th National Games. Shares were up by 3.19% to Rs 149 on the BSE.

Greaves Retail, a division of Greaves Cotton Limited, inaugurated ‘master distributor outlet’ for AutoEVMart in Chennai, for the electric 3-wheeler industry. Shares were down by 0.68% to Rs 139.05 on the BSE.

​Shoppers Stop Limited​ initiated operations at its new store located in Mittal Mall, Ajmer. Shares were down by 0.45 to Rs 667.65 on the BSE.

Fast-moving consumer goods (FMCG) major Tata Consumer Products will be expanding its range of ‘innovative products’, which serve as new growth engines for the business. The second quarter of FY24 witnessed an innovation-to-sales ratio of 5 per cent.

Innovative products launched by the company include Apple Cider Vinegar, Sampann Vermicili, Simply Better Cold Pressed Oils, Soulfull Ragi Bites Choco Sticks, Sampann Gulab Jamun Mix, Sampann Walnuts and Seeds, Sampann Saffron, Tata Gluco Plus Sports Drink, Filter Coffee Decoction, Say Never! Energy Drink, Tata Tea Gold Vita Care Tetley Digest, and Immuno Chai.

The BSE Sensex is up by 214.84 points or 0.30 per cent at 71,652.03, and the Nifty is up by 75.90 points or 0.35 per cent at 21,529.00 as of 12:09 pm on Wednesday.

Commenting on the outlook for Nifty, Anand James, chief market strategist at Geojit Financial Services, said, “The turnaround from the 21,360-320 region marked the completion of downswings as suspected. Even though we saw a pull-back from the highs towards close, the long-legged doji points to a rejection of bears, clearly bringing the 21,600/660 objectives back in contention, as pencilled in yesterday. This also elevates the possibility of an extension of the uptrend to 21,850 or even 22,500, but given the acute overbought conditions, we are conscious of impending volatility. Downside markers for the day may be placed near 21,440.”

Strong domestic demand, supported by government spending on infrastructure, building and construction segments, is expected to keep India’s steel imports elevated around the 6 million tonne mark this fiscal even as the global steel industry battles a slowdown.

Global steel demand, which has been subdued since the onset of the Russia-Ukraine conflict, is expected to grow 1.6% in 2023, after a sharp fall of 3.3% in 2022. However, the scenario remains suboptimal across key economies, said Crisil Market Intelligence and Analytics

Tiger Logistics (India) Limited launched Beta version of FreightJar, its digital logistics platform, focusing on global markets. The platform enables direct access and online booking of shipments for international importers and exporters. Shares were up by 6.16% to Rs 650 on the BSE.

Nazara Technologies announced partnerships with four Indian game studios, including Smash Head Studios, Wandermind Labs, Pixcell Play, and ATG Studios. The games are of genres such as action, multiplayer cricket and puzzles. Shares were up by 1.50% to Rs 888.05 on the BSE.

The BSE Sensex was up by 0.27% or 190.75 points to 71,627.94 while NSE Nifty was up by 0.33% or 71 points to 21,515.40 at 12.20 pm

EbixCash World Money Limited, a Promoter Group Entity of Delphi World Money Limited sold 1,619,280 equity shares (14.55% of total equity) The sale, conducted through the Offer for Sale (OFS) of BSE, resulted in the reduction of the Promoter’s shareholding from 89.55% to 75%. Delphi’s shares were down by 10% to Rs 324.95 on the BSE.

Drop in tea prices, along with wage rate hikes to shrink margin for tea estates in North India; sector outlook revised to Negative: ICRA

· Low export demand and sluggish rural consumption to dampen tea realisations for North India estates by Rs. 10 to Rs. 15/kg in FY2024 

· Wage rate hikes in West Bengal and Assam to increase cost of production by ~Rs. 5/Kg in FY2024 on a full year basis

ICRA expects the margin for tea estates based out of North India (NI) to be significantly impacted in FY2024 due to the double whammy of increase in cost of production, following the wage rate hikes in West Bengal and Assam and the drop in realisation due to the low export demand and a sluggish rural consumption. According to ICRA’s recent note on the sector, the operating profit margin (OPM) of NI-based bulk tea players is expected to be significantly impacted in FY2024 and, given the current operating environment in the tea industry, both domestic and international, any material improvement in profitability during FY2025 appears unlikely at present. The rating agency has thus revised the sector outlook to Negative from Stable.

Major gainers on the NSE at 12 pm - oil and natural gas corporation Ltd (4.59%), Tata consumer products Ltd. (2.36%), Wipro Ltd. (1.66%), Ltimindtree Ltd (1.71%), Hero motocorp Ltd (1.47%)

Major losers on the NSE at 12 pm - HCL technologies ltd. (-1.28%), Grasim Industries Ltd (-0.86%), Sun Pharmaceutical industries Ltd (-0.56%), Axis Bank Ltd (0.69%), Tata Steel Ltd. (0.78%)

Aditya Birla Sun Life AMC Limited (ABSLAMC), a subsidiary of Aditya Birla Capital Limited and investment manager for Aditya Birla Sun Life M

utual Fund, has launched the UPI AutoPay feature for SIP payments by investors. The UPI AutoPay option, facilitated by NPCI, enables an investor to start an SIP using UPI Autopay in just “one click”.

With the UPI AutoPay feature, an existing or new investor can create e-mandates using any UPI application, allowing for hassle-free management of recurring payments. A predefined SIP amount will be automatically debited from the investor’s bank account on the specified date of the month post registration.

UPI AutoPay is a safe and user-friendly method for recurring payments. It allows real-time registration of payment mandates instantly and facilitates easy and immediate transactions. As it is a paperless process, it eliminates the need for documentation and paperwork. It also ensures SIP payments are not missed and removes the need for setting up reminders.

A total of 3,789 stocks were traded on the BSE, of which, 2,027 advanced, while 1,604 declined and 158 stocks remained unchanged. As many as 331 stocks hit a 52 week high and 12 stocks hit a 52 week low at 12 pm on Wednesday.

Transformers and Rectifiers (India) Limited secures orders worth Rs 219 Crores from Power Grid Corporation of India Limited for the supply of reactors. The contract includes the design, engineering, testing, and installation of various reactors for a total period of 15 months. Shares were up by 4.28% to Rs 197.45 on the BSE.

Paisalo Digital Limited allotted 240 Commercial Papers (CPs) to Unity Small Finance Bank Limited at a face value of Rs 5,00,000 each, with an issue price of Rs 4,65,799 per CP. The total issue value amounts to Rs. 11.17 crore and the CPs have a tenure of 268 days, maturing on September 13, 2024. shares were up by 0.68% to Rs 96.87 on the BSE.

Bank Nifty opened higher today at 48,085.35 versus Tuesday’s close of 47,870.90. The index is now at 48,010, up 0.3 per cent so far today.

The advance/decline ratio of the index gives it a bullish bias as 10 out of the 12 stocks in the index have advanced today.

Nifty 50 opened with a gap-up today at 21,543.50 versus Tuesday’s close of 21,453.10. It is now hovering around 21,570, up 0.6 per cent.

Supporting the bullish bias, the advance/decline ratio of Nifty 50 stands at 41/9. Like the benchmark index, all mid- and small-cap indices too have gained.

Marine Electricals (India) Limited secured an order worth Rs 6.90 crore from 3B Advanced Composites Private Limited in Goa for the supply of LT Panels. Shares were up by 1.83% to Rs 94.50 on the NSE.

Venus Remedies Limited’s consumer healthcare division, R3SET, launched R3SET Detox Candies, offering liver detoxification and stress relief, and the introduction of R3SET Ultra Potent Gel for advanced pain management. Shares were up by 0.56% to Rs 394 on the BSE.

AVG Logistics Limited acquired over 50 cold chain vehicles, including assets from a multinational logistics company. The company recently signed a long-term contract with India’s FMCG companies for both dry and frozen goods. The acquisition represents 20% of AVG’s current cold chain fleet, bringing the total strength to 275+ vehicles. Shares were up by 3.23% to Rs 342.25 on the BSE.

The BSE Sensex was up by 0.52% or 370.77 points to 71,807.96 while NSE Nifty was up by 0.56% or 121.45 points to 21,574.55 at 11 am

Deepak Nitrite Ltd.’s shares were up by 3.32% to Rs 2,364.95. Subsidiary approved the execution of a binding term sheet with Petronet to offtake 250 KTPA of Propylene and 11 KTPA of Hydrogen from Petronet Petrochemical Project at Dahej, Gujarat

Blackstone has sold 23.5% stake in Embassy REIT for $850 million at Rs 316.10 a unit. The acquirers included existing investors Capital group, Fidelity, Bain Capital, ICICI MF AND HDFC MF and SBI Mutual Fund, who has come in as a new investor, sources said.

Units of Embassy REIT were trading flat at Rs 334.96 on the NSE, with a downward bias

Crude oil futures traded marginally lower on Wednesday morning as a report by an industry body indicated an increase in crude oil inventories in the US.

At 9.52 am on Wednesday, February Brent oil futures were at $79.12, down by 0.14 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $73.89, down by 0.07 per cent

​Oracle Financial Services Software Limited​ announced the allotment of 17,736 equity shares under the ESOP scheme. The shares, issued at face value of Rs 5 each, lead capital increase to Rs 433,177,415. Shares were down by 0.18% to Rs 4363.85 on the BSE.

Khazanchi Jewellers Limited reported that Sambhavnath Investment, a partnership firm, acquired a 0.20% stake through an open market transaction, totalling 3,000 equity shares. Shares were up by 0.11% to Rs 273.95 on the BSE.

BPCL Ltd’s shares were up by 1.01% to Rs 453.75, board approved a proposal for setting up Polypropylene (PP) Unit, for production of Polypropylene at Kochi Refinery, at gross project cost of Rs 5044 crore.

Varun Beverages Ltd’s shares were up by 10.07% to ₹1290, the company signed MoU with Jharkhand govt for manufacturing plant in Patratu with a ₹450 crore outlay.

The NSE Bell has rung in the celebration of the listing of India Shelter Finance Corporation Limited on NSE today.

​

DOMS Industries has debuted at Rs. 1405 i.e. 77% above its issue price. Its strong brand, diverse product portfolio, and robust manufacturing position it well for continued growth. Multi-channel distribution and strategic partnerships expand its reach. Doms has demonstrated impressive financial growth in recent years, solidifying its market position and future potential.

The issue came at a P/E of 43x, which was fully priced. Thus, considering such a premium on listing, allottees who applied for the public offering for listing premium are advised to book profit however investors with long-term view may hold it by keeping a stoploss at 1260. A fresh buy will not be recommended at such a high level.

India Shelter Limited also made its stock market debut today. The stock witnessed an attractive listing at 618 a premium of around 25% on its listing price. 

India Shelter boasts strong fundamentals built on years of experience in the affordable housing market. The company has a diverse portfolio and strong distribution network, catering to the growing demand for quality and affordable homes. Additionally, India Shelter has demonstrated consistent financial performance with a track record of revenue and profit growth.

Investors are advised to book this listing gain; however, those who still want to hold it may keep a stop loss at 558.

Accenture’s Weaker Than Expected Q2 Guidance Offset An In-line To Slight Beat On Q1 Revenue 

No Change To Its Discretionary Spending Outlook Offset An In-line To Slight Beat On Q1 Revenue 

Incremental Concerns In UK More Than Offset An In-line To Slight Beat On Q1 Revenue 

Acceleration In Bookings & Constructive Commentary On Opportunities, From Technology Changes

Windfall Tax Was Lowered For Oil Production And Diesel Fuel Exports 

Windfall Tax Was Lowered Following The Decline In Oil Prices 

Jet Fuel Taxes Were Reintroduced While Gasoline Remains Unchanged With Zero Export Tax 

Prefer RIL, HPCL, ONGC, Oil India, IOCL And GAIL 

Outperform Call, Target Rs 520 

H2 Poised For Better Growth 

Maintains Its View Of 15%+ GMV Growth For Overall e-Commerce 

Within 15%+ GMV Growth, Co Believes That It Has Atleast Maintained If Not Grown Mkt Sh 

Co Noting >15% Peak/Peak Growth This Season 

Within 3rd Party Logistics, Delhivery Thinks Is Volume Share Is 1.8x-2x Its Closest Peer 

Co Sees Scope For Market Share Gains Given Its Lowest Cost Structure & High Service Levels 

Overweight Call, Target Rs 210 

Liked Co’s Intent To Protect 20% RoE With 20% Loan Growth Sustainably 

For Gold Loans, Co’s Focus Remains Its Core Small-ticket Short-tenor Segment 

Targeting 8% Growth With 21- 22% Yield 

Its First-ever Detailed Discussion Of Non-Gold Businesses Should Help Improve Investor Confidence

Buy Call, Target Rs 238 

CV Upcycle To Continue As Indicated By Strong Freight Rates 

Tonnage Growth In Trucks Is Higher Than Volume Growth 

Double-digit Increase In Freight Rates & e-Way Bill 

Building a 6/10% YoY Growth In Heavy Truck Volumes For Ashok Leyland 

Buy Call, Target Rs 1,100/sh 

Announced Acquisition Of The Beverage Company In South Africa 

On Expected Lines Given Past Communications 

Deal Fastracks Its Plans With Ready Capacity Network 

Target Has Its Own Brand Portfolio, Which Is In Category B 

Expect Excessive Focus On Pepsico Brands Which Should Also Be Margin Accretive 

Target Adds 7-15% On Cons EBITDA/volumes 

Upgrade To Buy, Target Raised To Rs 1,419 From 1,070 

SA Acquisition Announcement A Continuation Of Co’s Inorganic Strategy 

SA Deal Valued At 0.83x FY23 EV/Sales 

South Africa Is The Largest Beverage Mkt In Africa But Has Limited Pepsico Share

DOMS

NSE: ₹ 1400.00

BSE: ₹ 1400.00

Issue Price: ₹ 790.00

Net Change: ₹ 610.00

%Change: 77.22%

Wardwizard Innovations & Mobility Ltd.’s shares were up by 6% to Rs 57.98,the company collaborated with BEEAH Group to manufacture electric vehicles and promote sustainable practices in GCC countries and African nations.

Silver prices rose as the dollar weakened, and bond yields declined amid expectations that the Federal Reserve might commence rate reductions next year. The Bank of England and the European Central Bank maintained their interest rates last week, aligning with the decision of the U.S. central bank to keep rates steady. Chicago Fed President Austan Goolsbee expressed confusion over the market’s reaction to the Fed Chief’s remarks on possible rate cuts, emphasizing that the U.S. central bank is not precommitting to swift rate cuts.

Upcoming economic releases include German PPI m/m, Current Account from the Euro Zone, and CB Consumer Confidence, Existing Home Sales from the U.S.

Gold prices remained stable, bolstered by expectations of interest rate cuts from the Federal Reserve in the coming year. Investors are eagerly awaiting U.S. inflation data later in the week. The Fed has signaled the end of its tightening phase and indicated the possibility of rate cuts in 2024. However, Atlanta Fed President Raphael Bostic mentioned that there is no current “urgency” for the Fed to reduce U.S. interest rates, citing the strength of the economy.

Upcoming economic releases include German PPI m/m, Current Account from the Euro Zone, and CB Consumer Confidence, Existing Home Sales from the U.S.

Bharat Petroleum Corp: The company approved a proposal for setting up 400 KTPA polypropylene unit at its Kochi refinery. The cost of the project is Rs 5,044 crore which will be funded in a debt-equity ratio of 65:35.

Glenmark Life Sciences: The Competitor Commission of India has approved the acquisition of majority shareholding of Glenmark Life Sciences by Nirma.

Embassy Office Parks REIT: Blackstone is looking to sell its entire 23.5% stake in the company via a mega block deal on Wednesday. The floor price is set as Rs 310 per share.

Nippon Life India AMC: IndusInd Bank will sell a 2.86% stake in the company via a block deal on Wednesday. The floor size is set at Rs 426 per share, 5% discount to Tuesday’s closing price.

Transformers And Rectifiers: The company received an order worth of Rs 118 crore from Uttar

Pradesh Power Transmission Corporation.

Rail Vikas Nigam: The company emerged as the lowest bidder for a project worth 123 crore in a

49: 51 Joint venture with KRDCL. The project is to upgrade Varkala Sivagiri railway station in Kerala.

Mining and metals stocks: Nearly 100 more blocks of critical minerals will be put on auction before February next year, Coal and Mines Minister Pralhad Joshi said on Tuesday. Offshore minerals will be put on sale in the auction that will take place in March and April.

JK Tyre and Industries: The company opened its QIP for raising up to Rs 500 crore, and has set the floor price of QIP at Rs 358.96 per share which indicates a discount of 5.2% to the stock’s previous close of Rs 378.70 on NSE.

Varun Beverages: The company will acquire South Africa’s ‘The Beverage Company’ and its subsidiaries for ZAR 3 billion or Rs 1,320 crore. The company signed a MoU with Jharkhand Government for the Patratu manufacturing plant with a total capital outlay of Rs 450 crore.

ITC: The company’s unit Infotech India incorporated a wholly owned subsidiary ITC Arabia for about Rs 35 crore.

Tech Mahindra: CP Gurnani ceases to be MD and CEO of the company on account of the completion of his tenure. Mohit Joshi to take over as CEO and MD effective Dec. 20.

Wipro: The company’s unit Wipro Holdings has transferred 100% shareholding in Designit A/S to Wipro IT Services UK Societas.

NTPC: The group achieved its fastest 300 billion units of power production so far in FY24.

Jubilant FoodWorks: The Company’s unit, Jubilant Foodworks Netherlands, launched a cash offer to acquire the remaining 45.33% share capital of DP Eurasia, a subsidiary company of JFN, at Rs 95 pence per share

Godrej Agrovet: Sandeep Kumar Singh has resigned from the position of CEO of the animal feed business. A. Y. Rajendra has been appointed as CEO of the animal feed business.

National Fertilizers: The company approved to setting up of a Nano Urea (Liquid) production plant based on the financial viability in Techno-Economic - Feasibility Report.

Deepak Nitrite: The company approved the offtake of 250 KTPA propylene and 11 KTPA hydrogen from Petronet LNG’s Dahej plant. Petronet LNG will supply hydrogen and propylene to the company’s unit Deepak Phenolics for 15 years.

Maithan Alloys: The company invested 49.84 crores in GAIL by purchasing 38.34 lakh shares

0.06% stake in the company through an open market.

Abbott: Vivek V Kamath resigned from the position of managing director w.e.f March 18, 2024.

Religare Ent says Delhi HC sets aside the declaration of lenders’ exposure to RFL as fraud

Context: Lenders had earlier declared their exposure to Religare Finvest (RFL) as fraud

Religare Finvest had filed write petition before HC against lenders’ decision

Ola Electric likely to file IPO papers with SEBI this week

Major gainers on the NSE at 9.30 am - Tech Mahindra Ltd. (0.83%), Ltimindtree Ltd. (1.65%), Wipro Ltd (1.15%), Tata consultancy services Ltd (1.02%), Infosys ltd. (1.15%).

Major losers on the NSE at 9.30 AM- Mahindra and Mahindra Ltd (-0.41%), Maruti Suzuki India Ltd (-0.19%), Bharti Airtel Ltd (-0.05%), Titan company Ltd. (-0.02%), Sun Pharmaceutical industries Ltd. (-0.18%)

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

“Even as the holidays are fast approaching, the market is not in a holiday mood. It is consolidating, but at higher levels. The steady rise in the mother market US, which has helped the Dow to set a new record high, is exhibiting the same trend. The fact that the fear gauge - VIX - is at a low level of 12 is an indicator of the underlying strength of the market.

Valuations in the mid and small cap segments are excessive. Chasing mid and small caps at these valuations is risky. Going forward, large-caps are likely to outperform. Even if they don’t, safety is in large caps. Investors should give importance to safety in this time of optimism.

Declining bond yields in the US means FIIs will continue buying Indian stocks. The New Year is likely to witness a fresh bout of FII buying. Large caps like RIL which have not participated much in the rally may see action.”

The BSE Sensex was up by 0.54% or 388.68 points to 71,806.90 while NSE Nifty was up by 0.53% or 114.45 points to 21,567.55 at 9.30 am

The SARS-CoV-2 sub-variant JN.1 has been classified as a separate variant of interest (VOI) from its parent lineage BA.2.86, due to its rapidly increasing spread, the World Health Organization has said.

In fact, SARS-CoV-2 caused the Covid-19 pandemic, and over three years, the latest sub-variant JN.1 was classified as VOI as part of the BA.2.86 sublineages.

India’s key indices, Sensex and Nifty, opened Wednesday’s session at fresh record highs, continuing their remarkable rally, mirroring a surge in Asian markets influenced by unchanged interest rates in China and Japan. 

The 30-share BSE Sensex surged by 395.41 points to 71,832.59, while the NSE Nifty climbed 105.45 points, hitting 21,558.55.

On Tuesday, the Nifty hit an all-time high at 21,505.05, extending its streak of unprecedented peaks, showcasing a 6.56% surge over a defined period.

This upward trend is supported by robust domestic macroeconomic indicators, reduced oil prices, continual inflows from mutual fund investors, record foreign purchases in the past fortnight, and an improved U.S. rate forecast.

Ruchit Jain, Lead Research, 5paisa.com said, “Since last three trading sessions, Nifty has been consolidating within a range but the bias still remains positive. Although the RSI readings on the daily chart of Nifty are overbought, there are no signs of reversal yet and thus, the trend remains intact until any reversal is seen. FII’s have around 60 percent positions in the index futures segment on the long side which is a positive sign. The immediate supports for Nifty are placed around 21330 followed by 21250 and till these are intact, the dips are likely to see buying interest. Only a break below 21250 would then apply breaks to the ongoing momentum and then some deeper retracements would be expected. On the higher side, if the index sustains above 21500, then it would continue its upmove in the overbought territory and one can then expect levels of 19650 and 19750-19800. Traders are advised to continue to trade with a positive bias, but avoid aggressive positions due to the overbought set ups.”

Asian markets saw an uptick after China’s central bank adhered to expectations by keeping its primary lending rates steady.

Bank of Japan’s unaltered interest rates and dovish policy stance, coupled with no indication of an exit from its negative interest rate regime, were observed on Tuesday.

Overnight, Wall Street concluded with gains, accompanied by a decline in U.S. Treasury yields, despite some Federal Reserve officials pushing back against the prevailing enthusiasm for a rate cut.

Brent crude futures climbed to $79 per barrel due to attacks by Yemen’s Iran-aligned Houthi rebels disrupting maritime trade in the Red Sea, although they remain down by 7.79% for the year.

Crude oil futures traded marginally higher on Wednesday morning as the attack on ships by the Houthis militants in the Red Sea region led to apprehensions over the supply disruption among the buyers of the commodity. At 9.08 am on Wednesday, February Brent oil futures were at $79.16, down by 0.09 per cent; and February crude oil futures on WTI (West Texas Intermediate) were at $73.98, up by 0.05 per cent. January crude oil futures were trading at ₹6170 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6167, up by 0.05 per cent; and February futures were trading at ₹6210 as against the previous close of ₹6202, up by 0.13 per cent.

The IPO of Credo Brands Marketing, which owns and operates Mufti brand of men’s apparel is open till December 21. The IPO values the company at 10.9 times FY23 EV/EBITDA or 23 times FY23 earnings. We recommend investors subscribe to the issue.

The apparel industry should be the first in the line of sectors gaining from rising middle class in the country. Based on store growth and healthy margins (even in last three years) Mufti should generate high earnings growth in the medium term. The relatively modest valuation is also a positive.

The public issue of Happy Forgings saw a decent Day 1 as it was subscribed 2.32 times, with both small and wealthy retail investors subscribing to the issue. Priced in a band of ₹808–850, the IPO received bids for 1.94 crore shares, against 89.65 lakh shares on offer.

About the offer

The issue from the Ludhiana-based company closes on Thursday. The market lot is 17 shares.

The public issue comprises a fresh issue of ₹400 crore and an Offer-for-Sale (OFS) of up to 71.60 lakh shares worth ₹609 crore.

The ₹960-crore IPO of Muthoot Microfinance was subscribed 2.83 times at the end of Day 2 on Tuesday. The issue, which comes at a price band of ₹277-291, will close today. Investors can bid for a minimum of 51 shares.

Against the offer size of 2.44 crore shares, it received bids for 6.90 crore shares.

Issue details

The offer comprises a fresh issue of ₹760 crore (2.61 crore shares) and an offer-for-sale (OFS) of ₹200 crore (0.69 crore shares). Investor shareholders including Greater Pacific Capital WIV, and promoters Thomas John Muthoot, Thomas Muthoot, Thomas George Muthoot, Preethi John Muthoot, Remmy Thomas, and Nina George are offloading their stake through OFS.

Despite concerns such as a spike in oil prices and FIIs selling shares, Dalal Street maintains its optimism for fresh highs. Positive catalysts include gains in Dow Jones and Nasdaq, a weakened US Dollar, lower US Treasury bond yields, and ongoing Fed rate cut bets. COAL India’s surge indicates a significant breakout. Nifty, supported by sentiment, fundamentals, and technical analysis, may reach 22,000. Nifty options suggest a range of 21,000-22,000. Preferred trades for Nifty and Bank Nifty are outlined. The chart of the day is bullish on COAL INDIA, BANK OF BARODA, ZOMATO, and VOLTAS. The recommended stock is ZOMATO (CMP 130) with targets at 149/171 and aggressive targets at 201, driven by a breakout play in an inter-week strategy.” -- Mehta Equities Ltd

Deepak Nitrite: Subsidiary approved the execution of a binding term sheet with Petronet to offtake 250 KTPA of Propylene and 11 KTPA of Hydrogen from Petronet Petrochemical Project at Dahej, Gujarat

Blackstone plans mega $833 mn exit from Embassy Office Parks REIT, CONCOR signs a MoU with DB Schenker India, BPCL approves setting up of new Polypropylene unit, PepsiCo bottler Varun Beverages to acquire South Africa’s Bevco for Rs1,320 crore. SpiceJet considers buying grounded Indian Carrier Go Air. JB Pharma inks Rs 1,089 cr pacts with Novartis. In Five Years, NBCC Hopes To Increase Its Revenue To Rs 25,000 Crore. RBI Tightens Rules for Investments in AIFs by Lenders

· Doms Industries listing today - Ahead of the listing, the company’s shares are fetching a premium of Rs 500 in the unlisted market. Considering the IPO price band of Rs 790 while subscribed by 94 times, the stock is likely to debut with a premium of 63%.

· India Shelter Finance Corp IPO Listing - The company’s shares will debut on the stock exchanges on Wednesday at an issue price of Rs 493 apiece. The Rs 1,200-crore IPO was subscribed 36.71 times on its third and final day.

· CONCOR – Company and Schenker India Pvt, one of the leading Logistics companies, have signed an MoU on 19th December 2023 at New Delhi to collaborate for EXIM & Domestic Business. CONCOR is a leading logistics service provider in the country with pan India presence at 64 container terminals.- Positive

· BPCL - Company has approved a proposal for setting up Polypropylene (PP) Unit, for production of 400 Kilo-Tonnes Per Annum Polypropylene at Kochi Refinery, at gross project cost of Rs. 5044 crore.

· NTPC – Company GRP achieves its fastest 300b units electric generation - NTPC Group has achieved the fastest ever 300 Billion Units (BU) electricity generation on 18 th December 2023. This milestone has been achieved in just 262 days in FY 2023-24, which is 18 days early as compared to the last financial year.

· Embassy Office Parks REIT - Blackstone plans to exit Embassy Office Parks REIT, India’s first publicly traded real estate investment trust, through a mega block deal of $833 million. Blackstone intend to sell their entire stake of 23.6 percent in the firm via the block deal route. The floor price is Rs 310 per share, nearly 8% lower than the CMP Rs335 – Buying opportunity.

· UPL Ltd – Board meeting on 22nd December for fund raising plan – positive

· Glenmark Life Sciences: The Competitor Commission of India has approved the acquisition of majority shareholding of Glenmark Life Sciences by Nirma. – positive

· Nippon Life India AMC: IndusInd Bank will sell a 2.86% stake in the company via a block deal on Wednesday. The floor size is set at Rs 426 per share, 5% discount to Tuesday’s closing price.- buying opportunity

· JK Tyre and Industries: The company opened its QIP for raising up to Rs 500 crore, and has set the floor price of QIP at Rs 358.96 per share which indicates a discount of 5.2% to the stock’s previous close of Rs 378.70 on NSE. – BUYING opportunity

· ITC: The company’s unit Infotech India incorporated a wholly owned subsidiary ITC Arabia for about Rs 35 crore. – positive

· New RBI rules on AIF - Reserve Bank of India has tightened rules for investments by regulated entities in alternative investment funds in a move the central bank said was aimed at addressing concerns relating to “possible evergreening”. Regulated entities cannot make investments in any scheme of AIFs that has downstream investments either directly or indirectly in a debtor company of the entity, the central bank. Existing investments in an AIF scheme will have to liquidated in 30 days if the AIF makes a downstream investment in a debtor company

· Tech Mahindra: CP Gurnani ceases to be MD and CEO of the company on account of the completion of his tenure. Mohit Joshi to take over as CEO and MD effective Dec. 20. – We are long term positive

· Wipro: The company’s unit Wipro Holdings has transferred 100% shareholding in Designit A/S to Wipro IT Services UK Societas.- positive

· Deepak Nitrite - Company has approved execution of binding Term Sheet between DPL and Petronet LNG Limited (PLL) for offtake of 250 KTPA of Propylene and 11 KTPA of Hydrogen – positive

· Suzlon – Company announced the execution of definitive documents for securing working capital facilities with REC Limited. Suzlon will utilise this facility for meeting working capital requirements for the execution of its current order book and future order pipeline. – positive

· Jindal Stainless – Company said its board of directors has approved the acquisition of Rabirun Vinimay Pvt which is under liquidation. The cost of the acquisition is Rs 96 crore – positive

· Steelman Telecom – Company has received a work orders worth of Rs.29.70 from Bharti Airtel Services –positive

· Tata Motor - LIC’s shareholding in Tata Motors Limited reduced from 5.110% to 3.092% of the paid-up capital – Any decline will be buying opportunity

· Grasim - Aditya Birla Group is in advanced negotiations with Nebras Power for a strategic investment in its renewable energy business under Grasim. Nebras Power set to invest around $400 million in a proposed 51:49 joint venture with Aditya Birla Renewables, aiming to hit 4.5 GW installed capacity by FY 26. – positive

· NBCC - According to KP Mahadevaswamy, CMD of NBCC, the state-run company aims to grow its revenue from Rs 11,000 crore in the current fiscal year to Rs 25,000 crore over the course of the next five years, as ET was informed – Long term Positive

· NHPC – Company announced on Monday that a proposal to monetize future cash flow from one or more power plants in order to pay for capital expenditures will be reviewed by the board. The date of the meeting is December 22.- positive

· VST Tillers Tractors - One of India’s leading farm equipment manufacturers, showcased its range of innovative products at the KISAN Agri Show 2023 in Pune. – Positive

· Varun Beverages – Company announced its decision to acquire the entire business conducted by The Beverage Company , South Africa, and its wholly-owned subsidiaries, collectively known as ‘Bevco’ for Rs1,320 crore. – positive

· AkzoNobel - Company appoints Rajiv Rajgopal to head Decorative Paints South Asia – positive

· Macro International – Company name change and it is now Astal Laboratories

· NLC India - PM Narendra Modi would inaugurate projects worth Rs70,000 crore including 13 projects related to SILO and Rapid Loading System infrastructure. Source: ZEE Business – Positive

· Man Infra – Company commencement Certificate (CC) for its UberLuxurious Residential Project in Ghatkopar East, Mumbai introducing Innovative Community Living Concept, having carpet area of approx. 4 lakh sq. ft. for sale. The company is expected to generate revenue of Rs. 1,200 crore in next 4 years from this project. – positive

· LTIMindtree – Company announced a strategic collaboration with Microsoft to introduce cutting-edge, AI Powered Employee Engagement Applications. This collaboration marks a significant leap forward in delivering enhanced employee and customer experiences – positive

· Godrej Consumer – Company see dividend payout at average 50% of annual net profit – positive

· JB Pharma inks Rs 1,089 cr pacts with Novartis for select ophthalmology brands – Company said it has inked a trade mark licence agreement along with promotion and distribution pact with Novartis for select ophthalmology brands entailing a total sum of Rs 1,089 crore. – positive

· SpiceJet Ltd. – Company has announced it is considering acquiring the insolvent Go Airlines India Ltd., which stopped flying in May, with a goal of possibly combining the two airlines– Positive

· Varun Beverages – Company signs accord with Jharkhand for proposed plant with capital outlay worth Rs450cr – positive 

· Vijaya Diagnostic – Company to acquire 100% stake in P H Diagnostic Centre for Rs134.65 crore. Company to further infuse Rs 12.85 crore in P H Diagnostic Centre to pay existing debt – Positive

· RVNL – KRDCL-RVNL JV lowest bidder for railway station upgrade, project cost worth Rs123cr– positive 

· Honeywell Automation India – Company received a contract to implement building management and safety technology for Reliance Life Sciences – Positive

· Xpro India – Company has proposed a capital raising plan to raise upto Rs. 140 Crores through convertible preferential issue and upto Rs. 150 Crores through QIP. The promoter group will also participate in the preferential issue and the company to setting up of a subsidiary in UAE – Positive

· Sanghvi Movers – Company has received work order aggregating to Rs. 166 Crores from one of eminent Independent Power Producers (IPP) in the renewable energy sector – Positive

· Kilburn Engineering Limited have received an LoI from a leading Indian steel manufacturer amounting to Rs. 1885 Lacs for an Externally Fired Superheater. – positive

· RateGain Travel – Company shared a success story with India’s leading hotel chain, Sarovar Hotels and Resorts for its channel manager product. Sarovar Hotels and Resorts is owned by European Hotel Chain Louvre Hotel Group which is worth $5.5 billion and has over 140+ hotels over 11 brands. – Long term positive

· Mitsu Chem Plast – Company has received In-Principle approval from Bombay Stock Exchange (BSE) in reference to the draft Letter of Offer filed by the Company dated November 8, 2023 for the proposed Rights Issue of Equity Shares. – Positive

· Coal India - Government will launch 9th round of commercial coal mine auction on December 20, putting 26 mines on the block.

· Vedanta Ltd – Company is to raise up to Rs 3,400 crore via NCDs in one or more tranches – PositIve

· URGO Capital – Company raises Rs 250 crore via NCDs from FMO - FMO is Dutch entrepreneurial development bank – Positive

· JSW Steel – Company’ unit Periama completes acquisition of 10% stake in JSW USA. Periama’s shareholding in JSW USA increases to 100% - positive

· Sun Pharma – Company will acquire 16.7% stake in Massachusetts-based Lyndra Therapeutics for $30 million. It is a strategic investment to support development of innovative pharmaceutical delivery technologies and get access to the technology for certain molecules and territories.

· Jubliant Food – Company approve names Suma Hedge as executive VP and CFO – Positive

· Anupam Rasyan - The Board of Directors of Anupam Rasayan India Limited at its meeting held today, had approved the allotment of 19 lakh or 1.9% equity shares of face value at a price of Rs945.11 a share (CMP 1030) – Positive

· Transformers & Rectifires – Company securing order worth Rs237 crore from Power Grid Corporation of India to supply transformers - positive.

· United Drilling Tools – Company gets order from ONGC worth Rs95.8cr

Mortgage Application, Consumer Confidence , Existing Home Sale.(US). – CPI,PPI, Retail Price Index, House Price Index (UK). PPI and Consumer Confidence (Germany).

Varun Beverage TGT by CLSA at 1419 from 1070, Jefferies TGT on Varin Beverage at 1110. CLSA TGT on Ashok Leyland at 238, Concor TGT raised by Goldman Sachs from 750 to 850. Anupam Rasayan TGT by Investec at 1310

Azad Engineering IPO open today with price band between 499-524 a share, Suraj Estate IPO subscribed by 2.5 times. RBS Jewellers subscribed by 2.5 times, Happy Forging 2.3 times and Muthoot Finance subscribed by 2.8 times

Bank Nifty Technical Levels –.Bank Nifty oved in a range bound manner for the rest of the session. It formed a small bodied Bearish candle on daily frame with longer lower shadow. Now it has to hold above 47750 zones for an up move towards 48250 then 48500 levels while on the downside support is seen at 47500 then 47250 zones.

Nifty Technical Levels – Nifty formed a small bodied Bearish candle on daily scale with longer lower shadow indicating support based buying and finally it closed with gains of around 35 points. Now it has to hold above 21350 zones, for an up move towards 21550 then 21650 zones whereas supports are placed at 21350 then 21250 zones.

Nifty managed to end in a positive territory, gaining 0.2% to close at 21458 due to renewed buying in Coal India, NTPC, Nestle, Reliance Industries, Hindustan Unilever, and Ultratech Cement. PSU Banks, Oil companies, Mining, Broking, and FMCG stocks were major gainers while Auto, IT, and metal stocks witnessed profit booking in the choppy market. Continued FII buying interest and strong macro data had a positive impact on the market. Coal Index surged 6% to close a 52-week high of Rs 367 amid news that the Government will launch the 9th round of commercial coal mine auction on December 20, putting 26 mines on the block. FMCG stocks witnessed fresh buying with Nifty FMCG Index soaring 1.4%. Nestle gained 4.5% after the company announced 5th Jan 2024 as the record date of stock split. FIIs were net sellers Rs602cr while DIIs were net buyers Rs294cr.

Gold Price Update –Gold held two days of gains as markets boosted bets on expectations for Federal Reserve rate cuts early next year, even as policymakers continue to push back against the prospect. Gold advance 0.5% to $2039/ounce.

Oil Price Update –. Oil rose 2% to nearly 1-month high at $79/bbl as traders and shippers braced for the prospect of more disruption in the Red Sea. The US and its allies are considering possible military strikes against Iran-backed Houthi rebels in Yemen in recognition that a previously-announced task force may not be enough to eliminate the threat.

Global Market summary – US market ended record high as Nasdaq Composite tops 15,000 mark. European Stocks edge higher to hit January 2022 high. Bank of Japan kept unchanged interest rate. US 10-Year bond fell to 5-month low at 3.91%. Brent Crude nearly 1-month high at $79/bbl as Red Sea Shipping risks plague Global Trade.

US Market – U.S. stocks ended higher as rate-cut hopes underpinned sentiment and reported better than expected housing data. Treasury yields extended losses, with the 10-year at its lowest yield since late July. Nasdaq Composite surged 0.6% to close above 15k level. Both Dow Jones and S&P 500 gained 0.5% each.

Asian Market –Stocks in Asia gained after Wall Street extended its rally on Tuesday, with raders shrugging off warnings from policymakers trying to rein in expectations for Federal Reserve rate cuts. Australia, South Korea, Taiwan and Japan Index gained between 0.5% to 1%. Japan Index soared over 1% after Bank of Japan yesterday kept unchanged interest rate.

European Market –European equities posted modest gains Tuesday to claim back January 2022 levels, with central bank policy in focus as traders assessed technical levels that suggest the recent five-week rally might have gone too far. Both Germany and UK Index soared 0.5% each.

The initial public offering of Suraj Estate Developers will close today for public subscription. 

The ₹400-crore IPO of the Mumbai-based realtor Suraj Estate Developers Ltd was subscribed 2.42 times so far. The issue comes at with a price band of ₹340-360 and the market lot is 41 shares. The IPO is entirely a fresh issue of 1.11 crore shares. 

As against the offer size of 82.35 lakh shares, the IPO received bids for nearly 2 crore shares. 

Retail investors quota saw strong buying, as their portion was subscribed 3.90 times, while the NII quota was subscribed 2.06 times and that of QIB was relatively lacklustre at 0.12 times.

The ₹740-crore from Hyderabad-based Azad Engineering will open today for public subscription. The company has fixed the price band as ₹499-524. Investors can bid for a minimum of 28 equity shares.

Several sports personalities including Sachin Tendulkar, PV Sindhu, VVS Laxman and Saina Nawal had invested in the company.

Shares of DOMS Industries will be listed at the bourses today. The company has fixed the issue price at ₹790, at the upper end of the price band, after blockbuster IPO. The issue was subscribed 93.52 times overall, with QIB portion receiving nearly 116 times. Retail investors and non-institutions too subscribed heavily as the respective portions were subscribed 69.67 times and 66.51 times.

Ruchit Jain, Lead Research, 5paisa.com: on Markets

Since last three trading sessions, Nifty has been consolidating within a range but the bias still remains positive. Although the RSI readings on the daily chart of Nifty are overbought, there are no signs of reversal yet and thus, the trend remains intact until any reversal is seen. FII’s have around 60 percent positions in the index futures segment on the long side which is a positive sign. The immediate supports for Nifty are placed around 21330 followed by 21250 and till these are intact, the dips are likely to see buying interest. Only a break below 21250 would then apply breaks to the ongoing momentum and then some deeper retracements would be expected. On the higher side, if the index sustains above 21500, then it would continue its upmove in the overbought territory and one can then expect levels of 19650 and 19750-19800. Traders are advised to continue to trade with a positive bias, but avoid aggressive positions due to the overbought set ups.

Non-Life Premiums Muted Growth Continues in Nov;

Growth in Health Slows, while Motor OD Pick-ups: 

The non-life insurance industry reported a premium of Rs 20,897.6 crore in November 2023, rising by a more sedate 8.8%, compared to last month’s 13.6% and

22.1% in November 2022. This slower growth can primarily be attributed to slow growth in Health and Motor TP along with a fall in crop insurance. Meanwhile, for YTDFY24, the industry has continued to report double-digit growth. This growth continues to be underpinned primarily by the health and motor insurance segments. However, compared to the last year, the growth continues to be marginally subdued due to a fall in the liability, marine and crop insurance 

Motilal Oswal

(MGFL IN, Mkt Cap USD1.8b, CMP INR173, TP INR205, 19% Upside, Buy)

At its analyst/investor meet, MGFL’s senior management team showcased the company’s capabilities in its non-gold business including MFI, vehicle finance, home finance and MSME & allied products.

- Beyond its view/outlook on the gold business, MGFL presented a drill-down on each of its non-gold businesses, including 1) a peek into its sourcing, underwriting and collection processes, 2) how these businesses have successfully navigated Covid and have reverted to pre-Covid business indicators, and 3) readiness to now exhibit healthy AUM growth and profitability in non-gold businesses.

Brent crude is down 17.9% since end-September, despite the breakout of the Middle-East conflict. This is an incremental positive for India - the short-term impact is muted, but could be bigger in FY25 if the prices stay low. The best way to play this is via OMCs (BPCL is our favorite), but there are knock-on benefits for autos as well. We would play this through two-wheelers: Hero MotoCorp and TVS Motors. If the correction spreads to other commodities, there could be earnings upgrades for non-BFSI companies.

We reiterate that online risk is far more exaggerated than on-the-ground reality, especially for large home appliances. Our conviction is backed not only by a CRISIL study, expert interactions and channel checks (highlighted in our IC report), but also by our analysis of global online penetration for large durables (given in this note). Euromonitor (Haier IPO document) mentions that global online mix is ~20% (CY17-19) and physical retailers are bound to retain a dominant share, owing to competitive pricing, fresher inventory, assisted sales, touch & feel experience and unbeatable consumer service. The study has also boosted our confidence on growth in India, given: i) its extremely low penetration of large kitchen appliances (vs ~27% global), ii) its premiumization potential (Rs16-18k/unit realization for WM/Ref vs 30-40k globally), iii) it is a key growth driver for global brands. We expect AVL to outpace retail peers with over 30% EBITDA CAGR in FY23-27E; retain BUY and TP of Rs5,000/share.

Steady start to the year: Accenture (ACN) reported revenue of USD16.2bn, up 3% YoY (1% in LC) in Q1FY24. Revenue was slightly higher than the mid-point of the company’s guidance of -2% to 2% (in LC). 5 of the 13 industries grew in mid-single digits or higher in Q1. Consulting revenue was flat YoY at USD8.46bn (-2% in LC), while revenue from Managed Services/Outsourcing grew 6% YoY to USD7.77bn (+5% in LC). ACN posted very strong double-digit growth in security, strong double-digit growth in Cloud and Industry X, and double-digit growth in Song during Q1. Strategy and Consulting reported a mid-single-digit decline, while Technology posted mid-single-digit growth, and Operations stood flat YoY. New bookings stood at USD18.4bn (up 14% YoY; book-to-bill at 1.1x). Consulting bookings stood at USD8.6bn (up 6.3% YoY; book-to-bill at 1x) and Managed Services bookings stood at USD9.8bn (up 21.2% YoY; book-to-bill at 1.3x). The company reported over USD450mn new bookings in Generative AI. Adjusted operating margin expanded by 20bps YoY to 16.7% in Q1. Quarterly annualized voluntary attrition stood at 11% in Q1 vs. 14% QoQ/13% YoY. Total headcount grew by 10,222 QoQ to 743,041 employees (1.4% QoQ/0.7% YoY).

Weakness in CMT persists: Q1 revenue growth was led by Health and Public Services (12% in LC YoY), Resource (6%), and Products (1%), while Financial Services stood flat YoY. CMT declined sharply by 11% YoY. Geography wise, North America declined by 1% in LC due to the dip in Communication and Media, Software Platforms, and Banking and Capital Markets, partially offset by growth in Public Services. EMEA grew 2%, led by growth in Public Services and Banking and Capital Markets, partially offset by the decline in Communications and Media. Growth Markets grew 5%, led by growth in Chemicals and Natural Resources, Public Services, and Banking and Capital Markets.

FY24 guidance: ACN has retained its LC revenue growth of 2-5% in FY24 (inorganic contribution of more than 2% now from ~2% earlier). The guidance assumes no foreign exchange impact on reported USD revenue. The company also retained its GAAP operating margin guidance of 14.8-15.0%. Adjusted operating margin, which excludes ~USD450mn of business-optimization costs in FY24 and USD1bn in FY23, is expected to expand 10-30bps to 15.5-15.7%. ACN expects Q2FY24 revenue to be USD15.4-16 bn (-2% to 2% LC), assuming a negative 0.5% forex impact. The company expects OCF and FCF to be USD9.3-9.9bn and USD8.7-9.3bn, respectively, in FY24.

Earnings Call KTAs: i) Macro and geopolitical uncertainties have slowed the pace and level of client spending for smaller contracts with a shorter duration, especially for consulting services. ACN is also experiencing reduced demand, particularly in CMT. ii) Growth in H2 is expected to accelerate because of investments made in high-growth areas and anticipated ramp-ups of large deals. iii) The company had 30 clients with quarterly bookings greater than USD100mn, with over half in North America. iv) It closed 12 acquisitions in Q1 for a total of USD788mn in strategic areas across geographies. v) GenAI demand continued to accelerate in Q1 with over USD450mn in new bookings. vi) The pace of spending continued to be impacted by macro uncertainties; however, management believes the industry’s fundamentals remain intact. vii) UK remains weak and faced greater challenges than management’s expectations. ACN plans to diversify it from higher exposure to Banking and Capital Markets currently and pivot to more growth in other areas, aided by acquisitions. viii) ACN has not built any material improvement in discretionary spending and the macro environment in FY24 revenue growth guidance. Guidance assumes mid-to-high single-digit growth in Managed Services and low-single digit in Consulting. ix) ACN continues to see significant demand in cloud migration and modernization, modern ERP, Data and AI, and platforms and security. It further highlighted that only 40% of the enterprise workloads are in the cloud, of which only 20% are modernized, with huge opportunities there in the market.

Read through for Indian IT peers: ACN’s performance and commentary are broadly in sync with its Indian peers, suggesting no material improvement in the demand environment with macro uncertainties persisting. NIFTY IT has rallied ~9% in the last 1M, with the majority of this rally coming after the Fed’s dovish stance on rate hikes post easing inflation data and likely trajectory. Stable macros and dovish stance reduces the risk to our/consensus FY25 estimates of high single-digit revenue growth in Tier-1 companies, which builds some improvement in discretionary spending. We believe large caps offer a better risk-reward compared with mid-caps. Our pecking order is INFO, WPRO, TECHM, HCLT, LTIM, and TCS among Tier-1 companies.

Shares of India Shelter Finance will be listed at the exchanges today. The company fixed the IPO price as ₹493, at the upper end of the price band ₹469-493. ISFCL IPO was subscribed 36.71 times.

The IPO of India Shelter Finance, which came out at a price band of ₹469-493, received bids for 66.75 crore shares as against an offer of 1.79 crore shares.

Embassy Office, BPCL, Glenmark Life, Varun Beverages, RVNL, Vijaya Diagnostic, Jindal Stainless, U Gro, JK Tyre, Jubilant Footworks, Godrej Agrovet, National Fertilizers, Deepak Nitrite

Rating: Reduce; Target: ₹1,1,50

With Bevco’s acquisition, VBL has access to 10 African nations (incl. 5 existing nations) and now controls most of southern Africa. Among the new regions, South Africa gains significance as its NARTD market is ~40% of India’s market, albeit growing at a slower pace (3-5% vol. CAGR). The market is mature, but we remain confident of share gains for VBL, given its strong track record in Zimbabwe and Nepal (over 50% share now). Portfolio-led pricing gain is also a big opportunity, given ~50% lower realizations for Bevco vs. CCBA, a Coke bottler. We also see cluster-based cost synergies, which should further boost earnings growth potential. Acquisition funding (Rs13.2bn) shall be a co-investment from a PE fund and remaining through debt raise by VBL. Acquisition multiple at 0.7x CY23E sales is attractive, in-line with the previous acquisitions and provides a 5x-7x value creation opportunity. Post ~70% run-up in the last 12M, we have a REDUCE rating on VBL. However, consistent outperformance vs. peers and value creation in intl. geos provide scope for further re-rating.

• BALRAMCHIN 

• DELTACORP 

• INDUSTOWERS 

• IRCTC 

• MANAPPURAM 

• NATIONALUM 

• PEL 

• RBLBANK 

• SAIL 

• ZEEL

Public sector banks have continued their good run on the bourses this year with the Nifty PSU Bank index gaining 33 per cent in the year to date. For two- and three-year periods, the index is up 123 per cent and 226 per cent, respectively.

“The difference in financials and asset quality between public and private sector banks has shrunk over time. PSBs were available cheap compared to the private sector banks. Now that gap is being narrowed, resulting in a rally,” said Deepak Jasani, head of retail research at HDFC Securities.

FIIS F & O : RS. CRS. : 

TOTAL NET BUY : +9665 😃

INDEX FUT. : +1284 

INDEX OPT. : +9234

STOCK FUT. : -788

STOCK OPT. : -65

🔹SEC. IN F&O BAN FOR, 20-DEC-23 :

\u0009

1.\u0009BALRAMCHIN 2.\u0009DELTACORP 3. INDUSTOWER 4. IRCTC 5.\u0009MANAPPURAM 6.\u0009NATIONALUM 7.\u0009PEL 8.\u0009RBLBANK 9.\u0009SAIL 10\u0009. ZEEL

ADDITION : DELTACORP, INDUSTOWER, IRCTC, PEL, RBLBANK

DELETION : HINDCOPPER, INDIACEM

🔹INSTL. INVEST. EQUITY CASH PROV. TRADES AS ON : 19-DEC-2023 : 

FIIS : SELL -601 (11,749-12,350) 😩

DIIS : BUY +294 (8,728-8,434) 🙂

BSE SENSEX : +122 (71,437)🔼 

NSE NIFTY : +35 (21,453)🔼

BSE MIDCAP. : -114 (36,186)🔽

BSE SMLCAP. : +42 (42,327)🔼

B. CRUDE : $ 78.40 🔽 😊

GOLD: $ 2,036=INR 63,800(10gr)🔼 😊

SILVER : RS. 77,800 (kg)(5pm)🔽😩 

FOREX : RS. $ 83.18 🔽 ☺️

7.26%GOI ‘33: 7.2127%(100.30)🔼☺️

7.18%NEW ‘33: 7.1744%(100.0250)🔼☺️

7.18%GOI ‘37: 7.2778% (99.1550)🔼☺️

Debt-strapped SpiceJet has officially announced its interest in acquiring the bankrupt airline Go First. The revelation came through a filing where SpiceJet expressed its intent to submit an offer post diligence, with the aim of fostering a robust and viable airline, potentially combining forces with SpiceJet.

The Competition Commission of India (CCI) has given its nod for acquisition of majority shareholding of Glenmark Life Sciences Limited by Nirma Ltd. 

“CCI approves acquisition of majority shareholding of the Glenmark Life Sciences Ltd by the Nirma Ltd”, said a CCI post in platform ‘X’, which was formerly known as Twitter. 

Jubilant FoodWorks is stepping up investments on Domino’s rebranding to drive higher pizza consumption in a bid to grow the category’s share in terms of occassions. The company has kickstarted a 360-degree rebranding initiative which aims to grow the sailence of the brand especially among Gen Z and young millennials.

Havells India share price has been in an uptrend since the beginning of November. The stock rose 2 per cent on Tuesday indicating that the upmove is gaining momentum. Cluster of supports are there in the ₹1,330 and ₹1,310 region which can limit the downside. A fall beyond ₹1,310 looks less likely now.

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

12:30 U.K. CPI y/y (Expected: 4.3% versus Previous: 4.6%)

20:30 U.S. CB Consumer Confidence (Expected: 104.1 versus Previous: 102)

General Mills, Inc. (Pre market) (Sector- FMCG)

Toro Company (The) (Pre market) (Sector- Capital Goods)

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

L&T: Company says Telangana SGST imposes penalties on company for input tax credit dispute || Company expects favorable outcome at appellate level

NIPPON LIFE AMC - NAM INDIA

Indusind Bank to sell entire 2.86% stake in co via block deals 

Indusind to sell 1.79 crore shares worth nearly Rs 760 cr

Floor price Rs 427 per share, 5% discount to market price 

JM Fin Broker to deal

https://play.google.com/store/apps/details?id=com.intelegain.rb

Recent Interview...

As of 17:19 PM Tuesday 19 December 2023

Credo Brand Mar: Kamal Khushlani, CMD

Have Opened 31 New Mufti Stores This Year; Will Maintain Run-rate Of 50 Stores/yr: Credo Brands

https://www.youtube.com/watch?v=RCjboEqm8a8

Fusion Micro Finance: Devesh Sachdev, MD CEO

Fusion Micro Finance: Outlook On NIMs

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

Happiest Minds: Venkatraman Narayanan, MD CFO

Slowdown In Mega Deals For The Industry In Recent Quarter Is A Bit Of A Concern: Happiest Minds

https://www.youtube.com/watch?v=46kc_2wYHNU

Jupiter Life: Ankit Thakker, CEO

Jupiter Life Line Hospitals: Outlook On Margins, FY24 Guidance, Expansion & More

https://www.youtube.com/watch?v=dPYRQJ29v8U

Monte Carlo: Sandeep Jain, ED

FY24 Revenue Will Be Flat YoY Due To Inflation/Discretionary Spends: Monte Carlo Fashions

https://www.youtube.com/watch?v=KDmud9Rj69k

NCC: Neerad Sharma, Hd-Strategy

NCC: Revenue Synergies From Orderwins

https://www.youtube.com/watch?v=ha0o_8AYXEk

RateGain Travel: Bhanu Chopra, Chairman

Our New Products Are Witnessing Strong Demand: Rategain Travel Tech

https://www.youtube.com/watch?v=j7EnUMIBoEY

RBZ Jewellers: Harit Zaveri,, Joint Managing Director

RBZ Jewellers: Expectations From Listing; Price Band Of ?95-100/Share

https://www.youtube.com/watch?v=5tDxelIzVsY

Shree Renuka: Atul Chaturvedi, Executive Chairman

India Is Adequately Covered On Sugar Availability: Shree Renuka Sugars

https://www.youtube.com/watch?v=HtpoN6Kq_oo

Sapphire Foods: Sanjay Purohit, MD

More Block Deals Likely In Sapphire Foods?

https://www.youtube.com/watch?v=2z-Z3vSwwKU

Events today…

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

Results today…

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

Replays available at www.researchbytes.com

A ‘Santa rally’ is sweeping through global stocks, fuelled by the Bank of Japan’s shift toward a more accommodative stance on Tuesday, which further stoked an already blazing optimism following the Federal Reserve’s indication last week of potential early-year cuts in U.S. interest rates. 

Japanese stocks commenced Wednesday on a high note, extending the upward momentum seen on Wall Street. The Nikkei 225 index surged by 1.40%, equivalent to 464.52 points, reaching 33,683.91 in early trade. Simultaneously, the broader Topix index gained 0.95%, an increase of 22.15 points, reaching 2,355.96. In South Korea, the KOSPI climbed by 0.92% or 23.52 points, standing at 2,592.07.

Australian shares continued their ascent on Wednesday, predominantly driven by gold and energy stocks in a widespread buying spree following the central bank’s indications of progress on inflation during its year-end policy meeting.

The S&P/ASX 200 index surged by 0.57% to 7,531.70, building upon the 0.8% climb witnessed on Tuesday.

Wall Street extended its rally on Tuesday, advancing on the day as last week’s dovish policy pivot from the Federal Reserve continued to reverberate and investors looked ahead to crucial inflation data. 

The Dow Jones Industrial Average rose 251.9 points, or 0.68%, to 37,557.92, the S&P 500 gained 27.81 points, or 0.59%, to 4,768.37 and the Nasdaq Composite added 98.03 points, or 0.66%, to 15,003.22.