Share Market Highlights: Sensex up 350 points, Nifty at 22,196; financials lead, Vibhor Steel Tubes up 192% on listing

Indian shares recovered from a weak start to finish higher for a sixth session in a row on Tuesday, led by financials, with the benchmark Nifty 50 hitting a record high for the second session in a row.

The NSE Nifty 50 index rose 0.42% to a record high of 22,215.60, its seventh time so far this year. The index ended 0.34% higher at 22,196.95, while the S&P BSE Sensex gained 0.48% to 73,057.40.

The indexes shrugged off a drop of 0.2% in the first hour of trade to extend their winning streak to a sixth straight session, their longest winning run in 10 weeks.

“Strong fund flows from domestic investors and persistent buying-on-dips have kept the markets buoyant and powered Nifty 50 to record highs despite lacklustre global cues,” said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.

The broader, more domestically focussed small- and mid-caps shed 0.53% and 0.13%, underperforming the benchmarks.

Volatility hovered around the 10-month high of 16.58.

It will continue to remain elevated, with bouts of corrections likely in small- and mid-caps as they have run up ahead of fundamentals, Solanki added.

Financials, the heaviest-weighted among the 13 major sectoral indexes, added 1.23%.

HDFC Bank led both financials and the Nifty 50 higher, rising 2.63% after several analysts reiterated their “buy” recommendation, citing a likely rebound in earnings growth.

On the other hand, IT stocks shed 0.87%, extending losses for the second session on fading hopes of an early U.S. rate cut.

Auto stocks dropped 0.62%, after jumping 5.5% in the last five sessions.

Zee Entertainment rose about 8% after a media report said the broadcaster is making a final attempt to revive its failed $10 billion merger with Sony’s India unit. - Reuters

The Indian rupee ended slightly higher on Tuesday as dollar demand from importers capped gains that came on the back of likely inflows, traders said.

The rupee ended at 82.9625 against the U.S. dollar, higher by 0.06% compared to its close at 83.0150 in the previous session.

While the rupee rose to an intra-day high of 82.9225, it shed most of its gains near the end of the session, pressured by dip-buying demand (on the dollar-rupee pair) from importers, including local oil companies, traders said.

The dollar index fell to 104.16, while most Asian currencies weakened, with the Thai baht leading losses. - Reuters

The real estate arm of Raymond Group, Raymond Realty, has launched its first project in Mumbai - The Address by GS, Bandra.

The project, spread over 2.74 acres, offers connectivity to prime locations such as Bandra-Kurla Complex and the Bandra-Worli sea link. The residential project will have a high-street retail space amongst other amenities.

Aluminium futures on the Multi Commodity Exchange (MCX) were charting a sideways trend between February 2 and 16, largely oscillating within ₹199 and ₹202. On Monday, the contract broke below the range and closed at ₹197.45.

Since the broader trend has been bearish and the contract has formed a lower low on the daily chart, the probability of further fall is high.

Mahindra World City Developers Limited, a subsidiary of Mahindra Lifespace Developers Limited, is launching ‘Green Estates by Mahindra’ in Chennai. The project, registered with Tamil Nadu RERA, aims to cater to both domestic and international markets. Shares down by 1.02% to Rs 601.95 on the BSE.

A total of 3,925 stocks were actively traded, 1,906 advanced, while 1,902 declined and 99 stocks remained unchanged where 335 stocks hit a 52 week high and 8 stocks hit a 52 week low at 3.18 pm on the BSE

Top gainers on the NSE at 3.15 pm- Power grid corporation of India (4.20%), HDFC Bank (2.63%), Axis Bank (2.42%), Ntpc (2.08%), Kotak bank (1.84%)

Top losers on the NSE - Hero Motocorp (-3.85%), Bajaj Auto (-2.46%), Coal India (-2.08%), Eicher motors (-1.92%), Tata consultancy services (-1.72%)

TVS Supply Chain Solutions Limited prolongs Rolls-Royce contract until 2029. Contract pertains to Singapore Parts Distribution Centre catering to Rolls-Royce’s Power Systems business unit in Asia Pacific. Shares surge 6.58% to ₹202.55 on BSE.

Valiant Communications Ltd’s shares surged 4.99% on BSE, trading at ₹405.90 at 12:52 pm on Tuesday. 

The company announced receiving an order worth $2.39 lakh from Bulgaria for communication and protection solutions tailored to Bulgarian Power Utility ESO EAD’s technical specifications. In January 2024, the company secured orders valued at ₹950 lakh for supplying solutions to power utilities worldwide, including in India, the USA, and South America.

Raymond Realty Ltd. witnessed a 1.37% increase in its shares, reaching ₹1788 on BSE. The company unveiled its inaugural project in Mumbai, a gated community situated in Bandra East. Valued at approximately ₹2000 crore, the project offers 2, 3, and 4 BHK apartments, over 30 amenities, and a 16000 sq ft clubhouse.

Quarterly earnings across banks, NBFCs, capital market players, and insurance remain stable:

1. Banks: Slowdown in earnings growth due to NIM compression, stable asset quality.
2. NBFCs: Strong loan growth but NIM compression, mixed asset quality.
3. Capital market firms benefit from sector tailwinds.

Detailed Analysis:

Banks: Slower earnings growth due to NIM compression, offset by stable asset quality. Loan growth remains steady, but cautious stance advised, favoring large banks.

NBFCs: Robust loan growth but flattening NIMs. Asset quality varies, with scrutiny on segments like tractors and unsecured loans. Selective preference for favored picks like Shriram Finance and LIC Housing Finance.

Capital Markets: Positive earnings reflect sector tailwinds, with strong retail equity flows and primary market activity. AMCs and intermediaries show solid growth, while rating agencies report mixed performance.

With the introduction of new renewable purchase obligations (RPO) and energy storage obligations (ESO) regulations, there’s a growing emphasis on expanding energy storage systems (ESS). By FY24, India aims for approximately 12 GW of storage capacity, projected to rise to around 70 GW by FY30.

To achieve a target of 425 GW installed Renewable Energy (RE) capacity by 2030, the industry requires about ₹14 lakh crore in additional debt financing. This includes 19 GW capacity for pumped storage projects (PSP) and 42 GW for battery-enabled storage solutions (BESS).

Pumped storage projects (PSP) maintain a competitive levelized cost of storage at ₹4.81 per unit, compared to ₹11.64 per unit for BESS. Assuming continuous RE supply, the landed cost from PSP stands at approximately ₹4.74 per unit, while BESS is at ₹6.59 per unit. Significant technological advancements, cost efficiencies, and financial support are necessary to enhance BESS viability.

Zaggle Prepaid Ocean Services Limited has forged a partnership with Easy Trip Planners Limited to provide Integrated Travel & Expense Management Solutions to Corporate Clients. Following this development, Zaggle’s shares witness a remarkable surge of 13.49% to reach ₹288.10 on the BSE.

Delta Corp Ltd sells Caravella Entertainment Pvt Ltd, owner of Deltin Nepal Pvt Ltd, for ₹80 crores. Shares rise 0.96% on BSE.

SMC Global Securities awarded “Great Place to Work 2024-25” based on employee survey by Great Place to Work® Institute (India). Reema Garg, SMC Global’s CHRO & Director, emphasized the company’s dedication to fostering a positive, inclusive work culture.

CL Educate Limited, a prominent EdTech firm listed on both BSE and NSE, and renowned for its brands Career Launcher and Kestone, revealed today an increase in its ownership stake in 361 Degree Minds (361DM) from 11.72% to 38.92% via a Rights Issue. Alongside, CL Educate and 361DM management announced the appointment of Prof. S. Sadagopan, the founding director of IIIT Bangalore and formerly associated with IIT Kanpur and IIM Bangalore, as the non-executive Chairman to provide guidance for the company’s future endeavors.

361 Degree Minds, a platform for online degree programs, has established partnerships with several leading universities in India, including Jain University, SRM University, Manipal University, among others.

More than 3.13 crore shares worth ₹4,089.45 crore of home appliance maker Whirlpool of India sold on the BSE in the afternoon trade, a PTI report said.

The company’s shares were trading at ₹1,303.10 apiece, down 2.08 per cent from the previous close.

The stock had touched its 52-week high of ₹1,733 on December 12, 2023.

The promoter company, Whirlpool Mauritius, is likely to be the seller, divesting its stake in Whirlpool in its India subsidiary.

The ban on export of onion will continue till its previously announced deadline of March 31 as the government is keen to keep prices under check and ensure domestic availability, a top official said on Tuesday, according to a PTI report.

On December 8, 2023, the government had banned export of onion till March 31.

“Ban on onion exports has not been lifted. It is in force and there is no change in the status,” Consumer Affairs Secretary Rohit Kumar Singh told PTI.

The government’s supreme priority is to ensure enough domestic availability of onion at reasonable prices to consumers, he added.

MM Forgings achieved a robust 13 per cent year-on-year growth in Q3 EBITDA, reaching ₹750 million, surpassing our estimated ₹698 million, primarily fuelled by stronger-than-anticipated gross margins. 

We anticipate the upward trajectory in domestic Medium and Heavy Commercial Vehicle (M&H CV) volumes to persist, projecting a 5 per cent Compound Annual Growth Rate (CAGR) from FY24 to FY26 driven by economic activities and replacement demand. However, export growth is expected to remain subdued due to the decline in overseas CVs.

We foresee MM Forgings to outshine its peers, propelled by domestic order victories for larger products such as gear blanks, long shafts, and larger crankshafts, along with delayed export orders, particularly with European orders pushed to FY25. With a higher exposure to the domestic market, we anticipate superior revenue growth moving forward. Furthermore, the company’s increased wallet share and focused approach towards Electric Vehicle (EV)-specific components position it favourably for continued outperformance.

In our projections, we introduce FY26 estimates with expected revenue, EBITDA, and Profit After Tax (PAT) growth rates of 13 per cent, 15 per cent, and 17 per cent respectively. Currently, the stock is trading at a reasonable valuation of 14x/12x on FY25e/FY26e earnings per share (EPS). Consequently, we maintain a Buy recommendation with an upwardly revised 12-month Target Price (TP) of ₹1,200, based on 15x FY26e EPS, compared to the earlier ₹1,050, based on 15x FY25e EPS.

Vipul Organics Limited secured environmental approval for capacity expansion to 508 MT at its Ambernath plant. Initial phase targets 250 MT, financed internally and externally with ₹5 crore from promoters. Shares jump 15.51% on the BSE, trading at ₹217.05.

Lawyers representing Zee Entertainment Enterprises Ltd (ZEEL) and Sony have started discussions to thrash out an out of court settlement to their ongoing dispute. This also includes the possibility of renewing the merger agreement between the two players. 

Sources close to the development told businessline that the talks at this time are only between lawyers of the two players. 

The share price of ZEEL gained 5.66% to ₹188.60 on NSE.

Edelweiss (Plaintiff) has withdrawn from the suit filed against Orient Green Power Ltd’s promoter SVL and the company before the High Court of Bombay.

Ugro Capital Ltd appointed Sharad Agarwal as the Chief Operating Officer after Om Prakash Sharma resigned.

Deepak Fertilisers & Petrochemicals entered into a long-term supply agreement for Liquefied Natural Gas with Equinor ASA, Norway.

CIE Automotive Ltd.’s shares were down by 2.54% to ₹472 on the BSE after the company reported a 0.29% decline in revenue at ₹2,240.39 crore year-on-year in the third quarter, while net profit was down 9.12% at ₹177.05 crore. 

The board approved a final dividend of ₹5 per share

Global Textiles (India) Ltd.’s shares were up by 4.65% to ₹4.50 on the NSE after the company reported receiving an application regarding in-principle approval for the proposed issue of up to 15,11,41,500 equity shares with a face value of ₹2.

The shares of Easy Trip Planners (EaseMyTrip) up by 0.26% to ₹49.70 on the BSE.

Benchmark indices rose to hit the day’s high. Sensex traded at 72,924.64, higher by 216.48 pts or 0.30 per cent as of 12.22 pm on Tuesday, while Nifty 50 traded at 22,155.95, up by 33.70 pts or 0.15 per cent.

The sectoral indices traded in a mix with FMCG stocks, metal, pharma, auto, oil & gas, and IT stocks traded negative. Nifty realty stocks traded higher by 1.28 per cent at 888.05, and Nifty financial services stocks inched up by 0.90 per cent to trade at 20,733.90. In addition, nifty bank, PSU banks, consumer durables, healthcare index and media stocks traded in green.

NBCC (India) Limited secured a contract for the construction of the Permanent campus of NIT Sikkim at Dung dung Khamdong, Gangtok, Sikkim, valued at ₹560.00 crore from the National Institute of Technology, Sikkim. Shares up by 2.41% to ₹144.70 on the BSE.

282 stocks hit 52 week high and 5 stocks hit 52 week low at 12.05 pm on the BSE. 

Stocks hitting 52 week high on NSE are Airo Lam (19.89%) Zaggle Prepaid Ocean Services (17.11%), Snowman Logistics (12.16%), Mangalam Drugs and organics (11.56%) and Uniinfo Telecom services (11.20%).

Stocks hitting 52 week low are Capital Small finance bank (-1.94%), Madhya Bharat and Agro Products (-0.27%).

Top gainers on the NSE at 12 pm include - Power grid corporation of India (4.31%), HDFC Bank (1.97%), Ntpc (1.76%), Grasim industries (1.66%), Kotak Mahindra Bank (1.37%)

Top losers include- Hero motocorp (-3.86%), Coal India (-2.46%), Bajaj Auto (-2.14%), Bharat Petroleum Corporation (-1.75%), Eicher motors (-1.74%)

Infosys Limited has disclosed receiving a penalty from the Taxation Division of the Missouri Department of Revenue, USA, for alleged underpayment of estimated taxes, amounting to $1,449.20. Shares down by 1.34% to ₹1676.90 on the BSE.

Valiant Communications Limited received a purchase order from Balkantel QQD for end-user Bulgarian Power Utility, worth ₹1.98 crore for supplying communication and protection solutions. Shares up by 1.73% to ₹393.30 on the BSE.

Waaree Renewable Technologies Limited secured a Letter of Award for an Engineering, Procurement, and Construction project to build a 980 MWp / 700 MWac solar power plant on a turnkey basis, with an order value of ₹990.60 crore. The project is expected to be completed within 12 months. 

The company’s shares were up 2.74% to ₹4550 on the BSE.

Bajel Projects Limited disclosed a material tax dispute related to a scheme of demerger with Bajaj Electricals Limited, where the Income Tax Authority did not grant credit for tax deducted at source, amounting to ₹4.04 crore. 

Bajel Projects’ shares were down by 1.27% to ₹226 on the BSE.

ICICI Bank’s shares up 0.51% to ₹1048.85 on the BSE

Aurionpro Solutions Limited secured orders worth ₹10 crore from two private sector banks in India for its digital engagement platform, Interact DX. The platform, recently acquired by Aurionpro, is to enhance customer experience through interactive personalised communication using audio and video technology. Shares up by 1.33% to ₹2145.30 on the BSE.

Veto Overseas F.Z.E., a wholly owned subsidiary of Veto Switchgears and Cables Limited, declared a dividend of USD 748,331 from its accumulated profit. The shares were up by 9.71% to Rs 145.75 on the BSE.

Crude oil futures traded lower on Tuesday morning, despite increase in attacks on merchant vessels in Red Sea, and reduction in five-year loan prime rat

March crude oil futures were trading at ₹6,509 on Multi Commodity Exchange (MCX) in early trading against the previous close of ₹6,518, down by 0.14 per cent; and April futures were trading at ₹6,512 as against the previous close of ₹6519, down by 0.11 per cent.e in China.

The February futures of Nifty 50 opened today’s session lower at 22,140 as against yesterday’s close of 22,171. It is now trading around 22,140, down 0.1 per cent.

Although there is some bearish bias, note that Nifty futures has a support between 22,100 and 22,080. Until this price band holds, the likelihood of a recovery will be high.

The price of gold has rebounded in the past few trading sessions following a sharp decline last week. However, demand for gold remains subdued due to expectations of higher interest rates. Investors are favouring fixed income assets for better returns, thus keeping the prices of the yellow metal subdued.

Last week’s release of US CPI data for January revealed inflation figures stronger than anticipated, with the CPI reaching 3.1 per cent, indicating a moderation from the previous month. Despite this moderation, inflation remains notably above the Federal Reserve’s target of 2 per cent, further delaying any expectations of adjustments to benchmark policy rates. This has led to a fall in gold prices.

However, gold has remained within a tight range this year largely because interest rates are expected to remain elevated for a longer period. Any changes in interest rates have the potential to guide the trajectory of gold. If policy rates remain unchanged for an extended duration, it might lead to subdued performance of gold. Conversely, a cut in interest rates could fuel bullish sentiments for the yellow metal.

Today, the market will be taking cues from the monetary policy report from the UK and the evolving situation in the Middle East region, while also anticipating the US manufacturing and services PMI data due later this week.

Participation in gold has stabilised in the past few sessions after settling at elevated levels. This may lead to an extended rally in gold once participation expands further. We believe that gold will consolidate at its current prices. Nonetheless, it remains a favourable investment opportunity and should be accumulated on lower price levels

Currently, we are observing a rally up to ₹63,500. On the downside, gold may experience a correction down to ₹61,000 levels.

Shares of Paytm (One 97 Communications) was locked at the upper circuit with no sellers after the RBI confirmed that its Offline Payment Offerings such as Paytm QR, Soundbox, Card Machine will continue to work even after March 15. Trading at ₹376 a share there were only buyers and no sellers in this counter for the second day in a row. 

Biocon’s shares were down by 2.49% to ₹283 on the BSE

Bank Nifty futures (February expiry) began today’s session at 46,648 versus yesterday’s close of 46,639. It is now trading around 46,680, up 0.1 per cent.

The contract rallied past the resistance at 46,700 yesterday. However, there was no follow through rally, and it remains largely sideways. 

Notably, Bank Nifty futures is trading near the top of the range of 45,000-47,000.

“Vibhor Steel Tubes defied even the most optimistic predictions, recording a phenomenal 182 per cent gain on its listing day, soaring to ₹425 per share compared to its issue price of ₹151. This unprecedented performance vastly exceeds the previously anticipated surge, fuelled by the company’s strong fundamentals and the overwhelming investor response.

“Boasting a diverse product portfolio, an established distribution network, and consistent financial performance, Vibhor Steel Tubes possesses a solid foundation for growth. Despite the strong listing, the high valuation could pose potential risks in the long term. Thus, this listing is the right time for investors to exit their holdings; however, those who still want to hold are suggested to keep stop loss at around ₹380.”

Ramkrishna Forgings’ shares surged by 5.03% to ₹784.94 on the BSE.

​RateGain Travel Technologies​ has been designated as Expedia Group’s Elite Connectivity Partner for 2024, resulting in a 0.25% decrease in shares to ₹833 on the BSE.

DroneAcharya Aerial Innovations Limited has entered into a term sheet agreement to acquire a 76% stake in Aerophile Academy Private Limited. As a result, shares have increased by 2.98% to ₹183 on the BSE.

In today’s market commentary by Mr. Shrey Jain, Founder and CEO of SAS Online, India’s Deep Discount Broker, he anticipates a positive bias in Nifty, suggesting opportunities for fresh long positions around the 22,000 level. The short-term outlook remains optimistic, although some consolidation or minor dips may occur. Nifty’s immediate support level is projected at 21,950.

Likewise, Bank Nifty maintains its bullish momentum, closing near a one-month high. Notably, the 46,000 Put strike exhibits significant open interest, likely acting as immediate support. Conversely, the 47,000 level is anticipated to pose an immediate hurdle, as per option data analysis.

● From Price Action Perspective:

In yesterday’s session, Nifty gained 0.37 percent, hitting a fresh life high. Strong outperformance was visible in Pharma & Auto space, which gained 0.8% apiece, while Bank Nifty too gained 0.35% in line with the broader Index.

● Decoding Asset Relationships:

While the Dollar Index and 10-year Bond yields are stable at elevated levels of 104.20 and 4.25%, it’s Brent Crude Oil prices that have witnessed fresh momentum on the upside and are currently quoting near its previous swing high.

● Key Nifty levels:

With Nifty having managed to cross its previous swing high above 22125 and having formed a Higher Top Higher Bottom pattern since past 4 sessions, Key support zone for the Indices are placed at 22100-22125 zone while resistance at higher levels around 22250-22270 zone.

Below 22100, Index could witness correction upto 21980-21910 zone.

● OI data Interpretation:

Nifty futures gained 0.28% while OI too gained by 1.28%, implying long buildup in the Index.

Nifty PCR is currently strong at 1.19 level.

Call writing was witnessed across 22200-22300 strikes, while put writing was witnessed in 22000-22100 strikes, implying that the range for the coming few sessions could be 21970 on the downside & 22300 on the upside.

● Key Bank Nifty Levels:

Bank Nifty has been able to successfully hold its short-term moving averages of 10 & 20 DEMA, which is placed around 46000. Along with that, the Indices have formed a Higher Top Higher Bottom pattern since the past 4 sessions.

Going forward, we feel 46000-46200 is likely to offer strong support, while the 50 DMA level of 46750-46800 is likely to act as a near-term resistance.

On the Open Interest Data Front, Bank Nifty futures end the day up 0.32% while OI declined by 3.59%

Bank Nifty PCR is currently stronger at 1.16.

Significant call writing was seen at 46600-46700 strikes and 46500-46300 puts, implying a range of 46800 and 46200 for the coming few sessions.

● Sectors & stocks in Momentum:

Pharma sector witnessed continuation of the ongoing strong momentum with the likes of Dr Reddy, Sun Pharma, Cipla, and Zydus Life, further gaining strength and hinting at likelihood of fresh moves from here-on too.

From the broader market, selective bullish setups were observed in Dixon, Indianb, Jsw energy, Concor, Cumminsind, Icicibank, Reliance, Mrpl, Quess, Aegischem, Bajaj-auto and Maruti.

● FII - DII Data Synopsis:

In Cash Markets, FIIs sold to the tune of 754.59 Cr while DIIs bought to the tune of 452.7 Cr.

FIIs’ Long short ratio for index futures is still around 39.25 as on a net basis, they bought 4981 index futures.

On the stock futures front, FIIs have sold to the tune of 21111 contracts, while on the Options Front, FIIs sold 58727 call contracts and sold 70971 Put Option contracts.

“Electrical Consumer Durable (ECD) companies’ revenue grew by 9% YoY (+12% 4-year CAGR) in 3QFY24, largely led by B2B segment (particularly cables, switchgears, professional lighting) while demand environment for most B2C segments remained muted as festive cheer was short-lived (significant weakness post Nov across most categories). Within B2C, premium segment has fared well while entry/economy segments, particularly rural pockets, continued to remain stressed. In terms of categories, water heater grew well for most companies (particularly for Crompton, Orient, Havells) while kitchen appliances failed to post meaningful growth (except for Stove Kraft) despite the favourable base. 

“Gross margin improved on the back of a benign RM environment, though it was offset by high competitive intensity (schemes/discounting), and sustained spends (A&P). Notwithstanding 3Q miss, we continue to maintain our positive view on the space from the medium- to long-term perspective given macro tailwinds (low penetration in some categories) and category expansion opportunities for most companies. Our top picks - Bajaj Electricals, RR Kabel, Cello World and Havells.”

Tendering activity at record levels

- Tendering activity is at record levels in Jan-24. It grew by 48% YoY/81% MoM to INR 2.05tn in Jan-24. YTD monthly average at INR 1.2tn (FY23 average: INR 1.12tn). Key segments: Highways (INR 1.24tn), Buildings (INR 228bn), Water Sewerage (INR 190bn) etc.

- Order awards grew by 39% MoM to INR 830bn in Jan-24 (up 5.6% YoY) and were above YTD monthly average of INR 698bn. Key segments: Construction, Power, Power T&D, B&F etc. Key recipients: L&T (INR 303bn), BHEL (INR 194bn) etc.

- NH awarding/construction continued to remain weak at 3481km/7658km during 10MFY24. MoRTH remains confident of achieving its awarding/construction target of 10000km/13814km in FY24.

- Highways/Bridges bid pipeline has improved materially in Feb-24 to INR 1.1tn. Of this, NHAI bid pipeline stands at INR 1tn.

- NHAI monetization picking up pace as NHAI has raised INR 316bn through InVIT Round 3 (INR 156bn) and monetization of 4 bundles under TOT mode (INR 160bn) in YTDFY24.

- FY25 Union Budget: Overall capex increased by 17% to INR 11.1tn over FY24RE. However, allocations subdued for Highways, Railways and Water sectors.

The Board of Directors of the company will meet on 22nd February, 2024, to consider and approve the issue of Secured, Rated, Listed, Redeemable, NCDs up to ₹100 crore along with the green shoe option to retain over subscription up to ₹500 crore.

Kotak Mahindra Bank’s share price rose 0.89% to ₹1,746.80 on NSE.

The rupee rose 2 paise to 82.99 against the US dollar in early trade on Tuesday, amid softening crude oil prices in the overseas market.

Forex traders said, however, a strong American currency, withdrawal of foreign funds and subdued equity market sentiment kept the local unit under pressure.

At the interbank foreign exchange, the domestic currency opened at 83.02 and inched up to 82.99 against the greenback in initial deals, registering a gain of 2 paise from its previous close.

163 stocks hit a 52 week high at 9.30 am on the BSE.

Top gainers on the NSE at 9.30 am include - Power grid corporation of India (2.24%), Oil and Natural Gas corporation of India (2.11%), Upl (1.53%), Kotak Mahindra Bank of India (1.20%), Grasim industries (1.13%).

Top losers include- Hero Motocorp (-2.44%), Eicher motors (-2.02%), Bajaj Auto (-1.57%), Bajaj Finserv (-1.05%), Mahindra and Mahindra (-1%)

- The bank continues to prioritize profitability (NIM, ROA and RORWA) and profitable growth (EPS growth) over any specific target of loan growth or deposit growth and noted that the near term is transitory in nature given volatile macro;

- 3Q’FY24 was an anomaly in many ways including elevated L-D ratio and LCR moderation (at 110% compared to its long-term guided range of 110%-120%) given the bank made certain conscious choices such as letting go of certain high-rate deposits and using available legroom to honor certain commitments on loans to its clients;

- The bank aims to continue to improve loan-deposit ratio (as loan growth would be lower than deposit growth) and the focus is on incremental Loan-Deposit ratio (a function of incremental CRR/SLR, ROE and borrowings implying +75%-80% incremental L-D ratio, in our view) as the stock L-D ratio improvement will likely happen only gradually as erstwhile HDFC Ltd borrowings come up for repricing and confirming that there is no guidance from the regulators on any specific number per se;

- Branch expansion is a choice keeping in mind the future capacity build-out (2-3yrs or more down the line) and the bank continues to see improvement in productivity ratios; and

- Focus on group synergies while not impacting the counter share of group companies vs. non-group companies, implying an increase in market share in fee income businesses premium collection as synergies play out.

- The stock currently trades at 2STDEV below the mean on 1 yr fwd PE/PB, adjusting for the SOTP value of its group businesses (e.g., HDFC Life, HDB Financial Services, HDFC AMC), which implies a sharp de-rating in franchise value such as ROA/ROE. We however believe that HDFC Bank could still trade at a premium valuation multiple (TP-implied) of c.18X FY25E EPS/2.7X FY25E BVPS as confidence in its franchise value improves or if any significant asset quality deterioration were to happen among peer banks/industry.

Tech Mahindra Limited acquired 100% stake in Orchid Cybertech Services Inc. OSCI has about 2,950 employees and a turnover of US$37.3 million in FY23. 

Tech Mahindra’s share advanced 0.14% to ₹1,311.85 on NSE.

Advanced Enzyme Technologies: Promoter group Advanced Vital Enzymes sold 72,851 shares between Feb. 14 and 15. 

Star Cement: Promoter Suchita Agarwal sold 10,000 shares on Feb. 12. 

Pledge Derails

Aurobindo Pharma: Promoter RPR Sons Advisors, P.Suneela Rani (jointly holding) created a pledge of ₹1.34 crore shares on Feb. 14. 

Sterling and Wilson Renewable Energy: Promoter Khurshed Yazdi Daruvala created a pledge of 4.5 lakh shares on Feb. 12.

Stove Kraft: Promoter Rajendra Gandhi created a pledge of 2 lakh shares on Feb. 14.

Apollo Micro Systems: Bajaj Finance sold 37.82 lakh shares (1.44%) at Rs 121.48 apiece and Columbia Petro Chem bought 37 lakh shares (1.41%) at Rs 121.5 apiece.

Data Patterns: Florintree Capital Partners LLP sold 59.96 lakh shares (10.71%), while, the Government of Singapore bought 31.47 lakh shares (5.62%), Mirae Asset Mutual Fund bought 10.94 lakh shares (1.93%), Mathew Cyriac bought 6.8 lakh shares (1.21%), Mutual Fund bought 5.46 lakh shares (0.97%) at ₹1,837 apiece. 

One 97 Communication: Reserve Bank of India has confirmed that the company’s QR, soundbox, and card machine will continue to work as always even beyond March 15. The company has shifted its nodal account to Axis Bank to continue seamless merchant settlements as before. 

Life Insurance Corp: The company announced the launch of a new product LIC’s Amritbaal for the Domestic market. The company also received an income tax refund worth ₹21,740 crore for the assessment years 2012-13 to 2019-20. 

Tata Power: The company received a letter of intent from REC Power Development and Consultancy to acquire Jalpura Khurja Power Transmission for ₹838 crore. 

Bajaj Auto: The company fixed Feb. 29 as the record date for determining shareholders eligible to participate in share buyback. 

NTPC, Nalco: NTPC has inked an initial agreement with NALCO to supply over 1,200 MW of round-the-clock power for the aluminium maker’s operations in Odisha.

PB Fintech: The company’s unit received IRDAI approval for a license upgrade. 

Harsha Engineers: The company signed a Memorandum of Understanding for transferring 25.9% investment in Sunstream Green Energy One to Sunstream Green Energy for ₹10 per share. 

NHPC: The company has laid the foundation stone for the 300 MW grid-connected solar PV project In Rajasthan.

ITI: The company signed a Memorandum of Understanding with JandK Operations to manufacture and provide BharOS-enabled digital devices and services. 

Bajaj Hindustan Sugar: The company agreed to acquire a 15.5% stake in Unique One RNG, for ₹1.55 crore. 

Fineotex Chemicals: The company raised ₹280 crore from promoters, high net-worth individuals, and foreign institutional investors at a valuation of ₹346 per share vs the current market price of ₹438 apiece.

Total income up 34.3% at ₹628.2 crore vs ₹467.6 crore. 

Net profit up 110.4% at ₹231 crore vs ₹109.8 crore. 

Board recommends final dividend of ₹28 per share. 

Schaeffler India Q3 FY24 (Consolidated, YoY)

Revenue up 4.45% at ₹1,874.5 crore vs ₹1,794.6 crore 

EBITDA down 6.12% at ₹324 crore vs ₹345.2 crore 

Margin down 194 bps at 17.28% vs 19.23%. 

Net profit down 9.25% at ₹209.6 crore vs ₹230.9 crore.

Board recommends dividend at ₹26 per share. 

“On the global front, US markets were closed on Monday on account of President’s Day whereas Asian stocks were trading mixed on Tuesday as investors await fresh catalysts after US markets were closed for a holiday on Monday. On the commodity front, Brent crude oil prices settled slightly higher in an abbreviated session on Monday, as lingering supply concerns from tensions in the Middle East were offset by signs of weakening demand. 

“Meanwhile, Gold prices hit their highest in almost a week on Monday as the US dollar retreated slightly and conflict in the Middle East buoyed bullion’s safe-haven appeal. On the domestic front, we believe, Stock-specific action and global cues are expected to guide the domestic equity markets. The NSE benchmark Nifty50 recovered from a volatile start on Monday, hitting a fresh high, led by financials and energy stocks. This is the third and the sixth time the Nifty 50 index has recorded a new high on a closing and intraday basis in 2024, respectively. We believe that the benchmark Sensex and Nifty indices are likely to open flat.

The Gift Nifty is suggesting a muted opening on Tuesday. The Nifty 50 index claimed a new all-time high yesterday, indicating a robust momentum. The current bias must engulf the selling pressure emerging around 21750 – 22200 range. Once this occurs, the up move could quickly hit 22500 – 22750. On the downside, successive closes beneath the 22000 mark could disrupt the upside momentum.”

“Dalal Street’s optimism remains unyielding as the Nifty surges to a new all-time high of 22186.65, sustaining its upward trajectory with a series of higher highs/lows. Despite concerns over higher inflation and a hawkish stance from the Federal Reserve, the benchmark index stands resilient. Market sentiment leans towards the belief that sticky inflation is transitory, driving optimism among investors. Bulls are determined to explore uncharted territories, eyeing new highs as critical support holds firm at 21809 and major resistance looms at the all-time high of 22187. Attention turns to the upcoming FOMC and RBI minutes on February 22 for further market cues. 

“Meanwhile, the MSCI Global Standard Index sees a rejig with the inclusion of five new stocks. Crude oil prices surge amidst geopolitical tensions and supply restrictions. Trade recommendations advocate buying opportunities for Nifty and Bank Nifty, with specific targets and stop levels provided. Also, stocks like GMR INFRA, ADANI PORTS, DIXON TECHNOLOGIES, VOLTAS, and TORRENT PHARMA present bullish outlooks for intraday trading with an inter-week perspective. ADANI ENTERPRISES emerges as a top stock pick with a strong rationale based on its higher high/low pattern.”

The benchmark Sensex and Nifty indices are expected to open flat on February 20, as indicated by trends in the GIFT Nifty, suggesting a muted start with a potential loss of 9 points for the broader index. On February 19, the market continued its upward trajectory for the fifth consecutive session, closing near the day’s high, and the Nifty reaching a fresh all-time intraday high of 22,186.65.

The Nifty’s daily chart reveals the formation of a neutral candlestick pattern, signaling indecisiveness between bulls and bears. Sustaining levels above 22,150 could pave the way for an upward movement towards 22,400 in the short run. The Relative Strength Index (RSI) shows an upward slope at 62, indicating sideways bullish momentum. Immediate support levels are identified at 22,050-22,000, with anticipated hurdles at 22,250 and 22,300.

Meanwhile, the Banknifty is trading in a range of 46,000 to 46,900, consolidating within this range. If the price closes above the 46,750 level, there is potential for an upward movement towards the 47,000 level in the coming days. On the flip side, 46,200 acts as a support level.

In terms of institutional activity on February 19, Foreign Institutional Investors (FIIs) net sold shares worth Rs 754.59 crore, while Domestic Institutional Investors (DIIs) purchased Rs 452.70 crore worth of stocks, as per provisional data from the NSE.

DERIVATIVE SNAPSHOT

Nifty Feb. cl @22171.4(+73.6)

Prem : +49.15 v/s +57.1

Nifty Jan. OI (+1.45 lac shares)

PCR increased to 1.25 from 1.22

Option statistics:

Indian VIX: 16.02 v/s 15.22

Addition in OI (Nifty Feb. Contract): 22000 PE +3.71 lakhs, 22100 PE +3.63 lakhs

Reduction in OI (Nifty Feb. Contract): 20800 PE -3.88 lakhs, 20600 PE -2.66 lakhs

Top Longs: GMRINFRA (2.0%), GAIL (2.5%), BIOCON (5.9%)

Top shorts: KOTAKBANK (5.2%), AXISBANK (2.9%), PNB (0.5%)

Top long unwind: FEDERALBNK (-8.9%), BANKBARODA (-4.0%), NATIONALUM (-7.6%)

Top short covering: IDEA (-1.5%), VEDL (-4.2%), BEL (-3.9%)

Top 10 rise in volume/rise in price for F&O stock: DIXON, BALRAMCHIN, GRASIM, DELTACORP, SBICARD, AUBANK, BIOCON, INDUSTOWER, BHARTIARTL, CUMMINSIND

Top 10 rise in volume/fall in price for F&O stock: HDFCAMC, GODREJPROP, PERSISTENT, DEEPAKNTR, TORNTPHARM, COALINDIA, HINDCOPPER, ZEEL, JINDALSTEL, ASHOKLEY

Palm Oil Rises by 1.47% Amidst Volatile Agricultural Market

Silver Prices Decline 1.84%, Reflecting Metals Market Turbulence

Natural Gas UK GBP Plummets 4.72% in Energy Sector Shake-up

Aluminum Hits 1-Month Low on Bleak Demand Outlook

Rubber Reaches Near 5-Week High on Supply Concerns

Cocoa Futures Experience Slight Correction from Record High

Baltic Exchange Dry Index Rises for Second Consecutive Session

Silver Prices Ease from 7-Week Highs as Fed Rate Cut Speculations Mount

EU Carbon Prices Hit Lowest Point since 2021

Steel Approaches 1-Month Low Amid Chinese Economic Concerns

UK Natural Gas Futures Drop to 59GBp/Thm, Lowest Since June 2023

US Soybean Futures Stall at $11.7 Amid Growing Stockpiles

US Natgas Prices Extend Losses to Below $1.6, Driven by Record Production

European Natural Gas Futures Fall to 8-Month Low on Oversupply

Copper and Platinum Prices Dip Alongside Silver in Metals Market

Methanol Leads Energy Commodity Gains as Natural Gas Suffers Losses

Gold Sees Slight Change Amidst Fluctuating Metals Market

Shipping Costs Rise with Baltic Exchange Index Reaching Highest Level since January 10th

Torrent Power: The company will develop four projects of pumped storage hydro, green hydrogen, solar energy generation with investment of Rs 25,000 crore in Uttar Pradesh.

Godrej Consumer: The company and its arm will divest entire stake in its in Mauritius-based unit

Godrej East Africa Holdings to HKG Africa Weave for consideration of ₹30 crore.

CIE Automotive: The company reported a 0.29 per cent decline in revenue at ₹2,240.39 crore year-on-year in the third quarter, while net profit was down 9.12 per cent at ₹177.05 crore. The board approved a final dividend of ₹5 per share.

LT|Mindtree: The company announced the launch of Navisource. Al, a GenAl powered autonomous sourcing platform. The platform aims to reduce overall procurement cost by 10-15 per cent.

Paisalo Digital: The board will consider fundraising on Feb. 22.

Piramal Enterprise: The company to consider fund raising on Feb 22.

Ugro Capital: The company appointed Sharad Agarwal as the Chief Operating Officer, after Om Prakash Sharma resigned.

Marico: The FMCG giant introduced four gourmet style flavours in its flavoured Oats range, under the flagship brand - Saffola.

Rhi Magnestia India: Vijaya Gupta resigned from the position of Chief Financial Officer.

Tasty Bite Eatables: Milin Bande has resigned from the position of Chief Financial Officer.

Astra Microwave Products: The company incorporated a wholly owned subsidiar Astra Space Technologies for ₹10 lakh.

Hikal: The company appointed Dharmesh Panchal as the Chief technology officer.

Orient Green Power: Edelweiss (Plaintiff) has withdrawn from the suit filed against promoter SVL and the company before the High Court of Bombay.

ABB India, Elantas Beck India: The two companies will announce their quarterly results on Tuesday.

New Listing 

Vibhor Steel Tubes: The company’s shares will debut on the stock exchanges on Wednesday at an issue price of ₹151 apiece. The ₹72.17 crore was subscribed 298.86 times on its third and final day. The public issue was subscribed to 298.86 times on day 3. The bids were led by non-institutional investors (721.34 times), retail investors (188.17 times), and institutional investors (178.73 times) and portion reserved for employees (201.48 times).

Block Deals

Minda Corp: Bela Agarwal sold 1.08 crore shares (4.53 per cent), while Motilal Oswal Mutual Fund bought 43.7 lakh shares (1.82 per cent), Kotak Mahindra Mutual Fund bought 42.93 lakh shares (1.79 per cent). Mahindra Manulife Mutual Fund bought 7.4 lakh shares (0.3 per cent) at ₹403 apiece. 

Bulk Deals 

Sula Vineyards: Verlinvest Asia Pte sold 70.42 lakh shares (8.34 per cent) at ₹576.78 apiece, Mousserena LP sold 29 lakh shares (3.43 per cent) at ₹575.47 apiece, while Morgan Stanley Asia Singapore PTE bought 8.65 lakh shares (1.02 per cent) at ₹575 apiece. 

Shilpa Medicare: TA FII Investors sold 13.45 lakh shares (1.54 per cent) at ₹407.05 apiece. 

Hindustan Foods: Sixth Sense India Opportunities 11 sold 6.06 lakh shares (0.53 per cent) at ₹528 apiece. 

Coffee Day Enterprise: Malavika Siddhartha Hegde sold 40 lakh shares (1.89 per cent) at ₹64.91 apiece.

Insider Trades 

Sasken Technologies: Promoter group Bharat Pravinchandra Mehta sold 2,500 shares on Feb 16. 

Bajaj Finserv: Promoter Bachhraj and Company bought 14.26 lakh shares, Deepa Bajaj sold 1.24 lakh shares, Rajivnayan Bajaj sold 3.2 lakh shares and Rishab Family Trust Rajivnayan Bajaj sold 9.82 lakh shares on Feb. 14. 

Pledge Share Details

Jamna Auto Industries: Promoter Map Auto revoked a pledge of 1.25 lakh shares on Feb. 16. 

Paisalo Digital: Promoter Equilibrated Venture Cflow revoked a pledge of 1.32 crore shares on Feb. 16.

F&O BAN

ABFRL

HOKLEY

BANDHANBNK

BIOCON

CANBK

HINDCOPPER

INDIACEM

INDUSTOWER

NATIONALUM

SAIL

ZEEL

CITI on HDFC Bank

Buy, TP Rs 2050

Key takeaways:

i) Building a granular sustainable franchise & balanced profitable growth will be key focus.

ii) In tight liquidity, it will not chase high-cost deposits flows. Also, it aims to maintain healthy incremental LDR & LCR

iii) It will raise threshold lending rates to pass on increased funding cost but will maintain NIM/RoA in guided band

iv) With latest developments at Paytm, HDFCB will be more sanguine on pockets of opportunities in certain merchant segments

v) It will leverage on the group’s distribution strength and its share in third party product distribution should rise.

vi) HDB Financial on track with respect to timelines set for listing.

Jefferies on RIL

Buy, TP Rs 3140

Robust global middle distillates demand, 5-yr low diesel inventories & Red Sea disturbances have firmed up diesel spreads 40% since Dec

Ethane economics are supporting petchem spreads

Raised FY24/25E Ebitda +2%/1%

Peak capex in Jio & Retail behind

HSBC on Glenmark Pharma

Upgrade to Buy, TP Rs 1100

3Q disrupted qtr on back of restructuring of distribution model for its India formulations biz 

Recovery in India sales, lower R&D spend, & start of supplies from Monroe plant bode well for margin expansion

Jefferies on Biocon

Downgrade to U-P from N, TP Rs 250

With weak FCF generation, high leverage will hurt Biocon unless it looks at fund raise options, like stake sale in biosimilars and Syngene

Jefferies on COFORGE

Buy, TP raised to Rs 7650

Recent proposal to increase Co’s ESOP pool by 1.9m 

could be due to near exhaustion of its existing pool & that ESOPs are an important part of compensation for mid-sized IT firms

This drives 4% cut to earnings in FY25, but FY26 same

CLSA on Coal India

O-P, TP Raised to Rs 480

Indicated a drop in the e-auction premium in 4Q, which could be partly offset by higher vols

Co revised down vol guidance for FY24 by 1%, but FY25 guidance is for 9% YoY growth

Moreover, mix is likely to improve

CITI on Coal India

Neutral, TP Rs 430

Highlight key call takeaways

1) CIL mgmt. maintaining FY24 volume target,

2) E-auction volume increase should largely offset premium decline,

3) Changes in OBR accounting,

4) FY24/25 capex at $2- 2.1bn.

Strong revenue and order book growth; margin weakened

The quarter maintained a strong revenue growth momentum, although margins continued to remain under pressure due to company-specific factors. In this report, we present insights based on 3QFY24 results and management commentaries of major EMS players – KAYNES, AVALON, SYRMA, CYIENTDL, DATAPATT, DIXON, and AMBER. 

- The 3QFY24 performance was characterized by strong revenue growth, but margins were adversely impacted by a change in product mix for multiple players and other company-specific business adjustments/investments opex to sustain strong growth for the long term.

- Among EMS players, DIXON posted the highest revenue growth (up 2x YoY), while SYRMA and Kaynes recorded the highest order inflow (up 2.1x/48% YoY).

- The EMS basket witnessed margin pressure, with SYRMA/AVALON reporting a contraction of 380bp/100bp due to unfavorable product mix and adverse operating leverage, respectively. DATAPATT registered the highest margin expansion (100bp YoY).

- The growth momentum is expected to continue in FY25, led by strong execution of the large order book as on 9MFY24, coupled with continued order inflows from the existing and newer end-user industries.

The 3QFY24 report card was mixed – we upgraded Zydus Lifesciences’ rating to ADD while downgrading Cipla to HOLD and Gland Pharma to REDUCE.

Sector drivers remain strong, led by the US market, recovery in India as well as margins holding up. The non-US international market can be a dark horse.

Upgrade Sun Pharma to ADD. Aurobindo, Zydus, Ajanta, and Torrent Pharma are the other ADD-rated stocks. REDUCE ratings: Divi’s Labs & Laurus Labs.

Mixed performance – two upgrades and two downgrades

The 3QFY24 earnings report card was mixed for our coverage universe, with two downgrades and two upgrades. However, our broader thesis remains intact, with the US business largely holding up its strong momentum, margins sustaining and, in some cases, even improving & the domestic business recovering in 2H. Surprisingly, we observed a very strong momentum across the EU and RoW markets over the past two quarters, and most companies expect the momentum to sustain. Logistics costs were cited as a key near- term worry, with some companies highlighting almost a 30% jump in freight costs as well as a likely surge in the inventory level to manage supply chains, although none of them called out for any meaningful dent on their margins in the near term.

“The BSE market cap touching a record high of around $4.7 trillion reflects the strength of the ongoing bull run and the momentum in the market. The fact that the crucial Buffet Ratio (market cap to GDP) is signalling very high valuation at above 120 per cent is a matter of concern. But this is unlikely to halt the bull run in the near-term since flows into the market from domestic individual investors and DIIs continue to be strong.”

- COAL is targeting to achieve production of 770 mt in FY24 and 838mt by FY25. While e-auction premiums have softened in 4QFY24 to 35-50%, volumes via the e-auction route have improved (15% vs. 8-9% in 9MFY24). The company is committed to supplying at least 610mt to the power sector in FY24 and increasing the dispatch by 50mt p.a. going forward.

- Domestic power generation is expected to grow by 7.7% to 1,750bu in FY24, which will drive coal demand. In line with the recent trend in e-auction premiums, we have trimmed our e-auction premium for FY26E while increasing e-auction volumes.

- As a result, we have increased FY26E revenue/EBITDA/APAT by 1%/9%/7%. We reiterate our BUY rating with a TP of INR520 (5.5x EV/EBITDA). We believe COAL is well placed to capitalise on the growth opportunity ahead.

(COAL IN, Mkt Cap $34.2 billion, CMP- ₹461, TP- ₹520, 13% Upside, Buy)

Recent Interviews:

As of 17:57 PM Monday 19 February 2024

Glenmark: VS Mani, ED and Global CFO

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

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

Healthcare Glob: Dr. BS Ajaikumar, Chairman & CEO

Healthcare Global Q3 Arpob Improves; Leads Gains

https://www.youtube.com/watch?v=uwAxOev49TY

Jana Small Fin: Ajay Kanwal, MD

Industry of Cute: Why Can’t Humans Resist Cuteness?

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

Jyoti CNC: Parakramsinh Jadeja, CMD

Aerospace & EMS Key Growth Drivers

https://www.youtube.com/watch?v=2t9eLfulWn4

NHPC: Rajendra Prasad Goyal, CMD

CERC Regulations Indicate 70:30 Debt-Equity Funding For Projects: NHPC

https://www.youtube.com/watch?v=bIpAdu3POJ4

Quess Corp: Ajit Issac, CMD & CEO

Staffing Will Grow At 17-18% CAGR On A Higher Base: Quess Corp

https://www.youtube.com/watch?v=OP3LoQIm7-E

Skipper : Sharan Bansal, Director

30-35% Revenue Growth Expected In The Polymer Business: Skipper

https://www.youtube.com/watch?v=24tLSlcqzUM

Titagarh Rail: Umesh Chowdhary, Vice Chairman & Managing Director

Will Continue To Maintain Production Of 1000 Wagons/month: Titagarh Rail

https://www.youtube.com/watch?v=q60swdB8Jto

Vinati Org: Vinati Saraf Mutreja, MD

Destocking Is Over, FY25 Will Be Better Than FY24: Vinati Organics

https://www.youtube.com/watch?v=mfo_tB_iEh4

Wonderla: Arun K Chittilapilly, MD

Wonderla Holidays: Steady Growth In Footfall I Arun Chittilappilly

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

Events today:

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

Results today:

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

Price band revised from 10 per cent to 5 per cent: Azad Engineering, HPL Electric & Power, Inox Wind, MIC Electronics. 

Price band revised from 20 per cent to 10 per cent: KIOCL, Mangalore Refinery and Petrochemicals. 

Ex/record Dividend: Centum Electronics, TCI Express, Hindustan Aeronautics, MSTC, HIKAL, Coal India, Amrutanjan Health Care, Steel Authority of India, Precision Wires India, Apollo Hospitals, Aurobindo Pharma, Power Finance Corp, Refex industries. 

Ex/record Bonus issue: Choice International. 

Moved out of short-term ASM framework: Automotive Stampings and Assemblies, Gensol Engineering, Global Surfaces, Ramky Infrastructure, Triveni Turbine, Yes Bank.

Indian shares are set for a muted start on Tuesday, tracking their Asian peers after China’s efforts to support its property markets failed to excite investors, while fading hopes of an early US rate cut also weighed on sentiment.

India’s GIFT Nifty was trading at 22,139 as of 7:48 a.m., indicating that the NSE Nifty 50 will open near its Monday’s close of 22,122.25.

India’s blue-chip index Nifty 50 has gained in each of the last five sessions, adding 2.34 per cent over that period and hitting a new all-time high of 22,186.65 on Monday.

Eastern Logica Infoway Ltd

Bonus issue 5:1

Previous day closing price – ₹1549.35

Ex-Bonus 21 February 2024 (Tomorrow)

Last date trade for before bonus--Today

Ex-Dividend 21 February 2024 (Tomorrow)

Last date for Cum-Dividend Today

Mrs. Bectors Food Specialities Ltd

Dividend Per Share Rs.1.25

Previous day Closing Price – Rs. 1024.25

Cummins India Ltd.

Dividend Per Share Rs.18

Previous day Closing Price – Rs. 2660.8

Electrosteel Castings Ltd.

Dividend Per Share Rs.0.5

Previous day Closing Price – Rs. 180.1

Hero Motocorp Ltd.

Special Dividend Per Share Rs.25

Dividend Per Share Rs.75

Previous day Closing Price – Rs. 4853.5

Jk Lakshmi Cement Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 964.35

Life Insurance Corporation Of India

Dividend Per Share Rs.4

Previous day Closing Price – Rs. 1052.15

MRF Ltd.

Dividend Per Share Rs.3

Previous day Closing Price – Rs. 148917.85

NCL Industries Ltd.

Dividend Per Share Rs.1.5

Previous day Closing Price – Rs. 242.5

PI Industries Ltd

Dividend Per Share Rs.6

Previous day Closing Price – Rs. 3664.4

Platinumone Business Services Ltd

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 202

Premco Global Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 405

Saregama India Ltd.

Dividend Per Share Rs.4

Previous day Closing Price – Rs. 412.3

SJVN Ltd

Dividend Per Share Rs.1.15

Previous day Closing Price – Rs. 126.25

Sula Vineyards Ltd

Dividend Per Share Rs.4

Previous day Closing Price – Rs. 569.2

Uniparts India Ltd

Dividend Per Share Rs.6

Previous day Closing Price – Rs. 546.2

United Van Der Horst Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 270.6

Sula Vineyards, Deepak Fertilisers, Kotak Mahindra Bank, Whirlpool of India, NBCC, ONGC, Piramal Enterprises, etc. are in focus today.

One 97 Communications is resigned to losing its associate, Paytm Payments Bank, the entity at the centre of the crisis surrounding the fintech. However, it feels that if there is even a slight chance of its survival through an acquisition, then it is ready to take it.

Sources said that the outlook for the bank looked bleak at the present, but there is still hope to eventually convince the regulator through ‘good behaviour’ to ease some restrictions.

Chinese banks cut a key reference lending rate for mortgages by the most on record, ramping up support for the beleaguered property sector, per Bloomberg report.

The five-year Loan Prime Rate, a reference for mortgages, was lowered by 25 basis points to 3.95%, according to a statement by the People’s Bank of China on Tuesday. It was the first cut in eight months, and the largest since that rate was introduced in 2019. Nine of the 12 economists polled predicted a reduction, but none by that much, the report added.

FIIS : SELL -754 (10,168-10,922)

DIIS : BUY +452 (8,081-7,628)

Indian automaker Mahindra & Mahindra introduced its Bolero MaXX Pik-Up range with air-conditioning under its small commercial vehicles segment. The Bolero MaXX Pik-Up price ranges between ₹8.49 lakh and ₹11.22 lakh. 

The Bolero MaXX Pik-Up range is powered by a m2Di engine and offers diesel and CNG options. The payload capacities span from 1.3-2t and a cargo bed length of up to 3,050 mm. 

Indian Hotels Company (IHCL), on Monday, announced the opening of Ginger Ahmedabad at Changodar. This will be the seventh hotel of IHCL in Ahmedabad district across Taj, Vivanta and Ginger brands, stated an official release here.

Kirloskar Brothers Ltd (KBL) order book in Q3-FY24 stood strong at ₹3,111 crore, up 9 per cent y-o-y. Domestic business witnessed muted growth at 8 per cent y-o-y whereas its international business grew by 2 per cent y-o-y. KBL is continuously introducing new products in the US and UK markets and focusing on increasing its revenue contribution from the service segment for its UK entity, says Axis Securities.

Crompton Greaves Consumer Electricals standalone revenue grew 15 per cent y-o-y to ₹1,460 crore in Q3-FY24 at a three-year CAGR of 3 per cent. It was 6 per cent ahead of our estimates, driven by new product launches and demand uptick.

Segment-wise, revenue from electrical consumer durables increased 19 per cent y-o-y vs Havells’ 3 per cent, and V-Guard’s 11 per cent. Lighting (17 per cent) reverted after a series of subdued quarters, with 1 per cent y-o-y growth vs Havells’ 2 per cent, says Elara Securities.

Bharti Airtel Ltd has launched two stores in the city of Jammu. The stores have come up in NH-1, Bari brahmana (near PNB bank) and Akhnoor Main market (near bus stand), according to the company’s statement.

Though the year has been rewarding, investors need to be careful in extrapolating performance of 2023 into 2024.In this euphoria, it is very easy to extrapolate returns and recent successes in future and ignore risks, says Rupesh Patel, Senior Fund Manager - Equity, at Nippon India Mutual Fund.

Axis Bank’s income will get a “fee and float” boost as One 97 Communications Limited (OCL), which owns the Paytm brand, has decided to move its nodal account to the bank.

Axis Bank will earn a fee from OCL due to merchant settlements happening through the nodal account. Further, the float (funds) available in this account can be deployed by the bank for a day or two in the money markets to earn income.

Foreign brokerage Goldman Sachs sees Nifty50 scaling up to 23,500 by end-December 2024 even as it does not expect any large market moves around the upcoming 2024 general elections outcome.

The surge in the benchmark index will primarily be driven by the strong 15 per cent earnings growth and supported by the high domestic inflows, Santanu Sengupta, Senior Asia Economist, Goldman Sachs India and Sunil Kaul, Senior Asia Equity Strategist, Goldman Sachs Singapore said in a recent note. 

Kotak Mahindra Bank has elevated whole-time directors KVS Manian and Shanti Ekambram as part of a leadership rejig at the private sector lender, effective March 1, 2024.

Manian has been appointed as Joint MD. He will spearhead the growth of Wholesale Bank, Commercial Bank, Private Banking, Asset Reconstruction Division, and Wholesale Credit. He will also continue to have oversight over the institutional equities and investment banking businesses of the Group.

JSW Steel will be competing with global steel major Japan’s Nippon Steel and other major bidders to acquire 20 per cent stake in Australia’s Blackwater coal mine from Whitehaven Coal.

Though companies are yet to decide on the final valuation, the deal is expected to be about $1 billion, said a source close to the development.

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

NOCIL has made a bullish breakout on Monday. The stock was oscillating in wide sideway range ₹250-₹285 since mid-December last year.

On Monday, the stock surged over 5 per cent breaking the range on the upside above ₹285. It has closed on a strong note. The region around ₹285 will now act as a strong support for the NOCIL stock. 

Asian stocks held to tight ranges on Tuesday as investors await fresh sense of direction from the Wall Street. Australian stocks fell, weighed down by BHP Group after the miner missed profit estimates, while Japan stocks advanced slightly. Futures contracts for Hong Kong shares edged higher, while contracts for US equities were mostly unchanged after Monday’s holiday.