Share Market Highlights: Sensex, Nifty close on high note, IT stocks lead surge

Olectra Greentech Ltd has been awarded a contract from Brihan Mumbai Electric Supply & Transport Undertaking (BEST) for supply of 2,400 electric buses.

The company’s stock ended 1.95 per cent higher on the NSE, closing at ₹2,102.95. The stock had hit a 52-week high today at ₹2,221.95.

Grasim Industries Ltd, an Aditya Birla Group company, has announced the launch of its paint business under the brand name Birla Opus. The company has said that it aims to gross ₹10,000 crore in revenue within three years of its full-scale operations.

Announcing the launch, Aditya Birla Group Chairman Kumar Mangalam Birla, said, “Birla Opus is poised to transform the paint industry with a 40% addition to current capacity. No paint company globally has ever launched in one shot— factories, operations, products, and services, at the scale that we are about to undertake.”

India’s stock market indices, the BSE Sensex and NSE Nifty, closed Thursday on a high note, with IT majors like HCL Tech, Tech Mahindra, and TCS each gaining over 2%. The BSE Sensex surged 535.15 points or 0.74% to 73,158.24, while the NSE Nifty rose 162.40 points or 0.74% to 22,217.45 at close. Jefferies has turned bullish on India’s prospects, forecasting the stock market to reach the $10-trillion mark by 2030 in its latest report. 

Vinod Nair, Head of Research at Geojit Financial Services, highlighted the domestic market’s recovery driven by positive Eurozone PMI data and strong US tech earnings. India’s economic expansion in February, with improved service and manufacturing PMI, boosted discretionary stocks and capital goods.

Rupak De of LKP Securities, noted high market volatility due to Nifty options expiry. The market found support at the 21EMA before rallying, with a bullish momentum indicator crossover. Overall sentiment is positive, with potential short-term levels at 22,400/22,600 and support at 22,100.

Rupak De, Senior Technical Analyst, LKP Securities. 

“The market remained highly volatile due to the weekly expiry of Nifty options. On the lower end, it found support at the 21EMA before rallying towards higher levels. The momentum indicator has experienced a bullish crossover. Overall sentiment has turned positive once again, with the potential to reach towards 22,400/22,600 in the short term. On the lower end, support is placed at 22,100.”

Vinod Nair, Head of Research, Geojit Financial Services.

“The domestic market staged a recovery from the day’s low, buoyed by positive PMI data from the Eurozone and an impressive earnings report from US tech stocks. The broader market showed resilience as India’s economic activity continued to expand in February, with both service and manufacturing PMI improving. Consequently, it resulted in outperformance in discretionary stocks and capital goods.”

SpiceJet has raised an additional ₹316 crore, bringing its total investments to ₹1,060 crore under a preferential issue.

As per the regulatory filing, the company’s preferential allotment committee board convened on February 21, 2024, and approved the allotment of 4.01 crore equity shares on a preferential basis to two investors, including Aries Opportunities Fund Ltd.

Larsen & Toubro (L&T) has secured an order under its buildings and factories vertical from a real-estate developer to construct multi-storeyed residential towers in Thane, Mumbai.

The said contract is worth between ₹1,000 crore to ₹2,000 crore.

The project’s scope includes the construction of the core and shell works for five towers which have 62 floors and an allied parking area comprising basements, ground, and five podiums, L&T has said in its statement.

The BSE Sensex surged 589.61 points or 0.81% to 73,212.70 and the NSE Nifty rose 182.55 points or 0.83% to 22,237.60. 

Major gainers on the NSE at 3:10 pm include - Bajaj Auto (3.09%), Eicher Motors (2.83%), Mahindra and Mahindra (2.82%), HCL Technologies (2.81%), ITC (2.62%)

Major losers on the NSE at 3:10 pm include - Indusind Bank (-1.86%), HDFC Bank (-1.49%), Bharat Petroleum Corporation (-1.23%), Kotak Bank (-1.21%), Hero Moto Corporation (-0.93%)

A total of 3,914 stocks were actively traded, 2,020 advanced, while 1,775 declined and 119 stocks remained unchanged where 270 stocks hit a 52 week high and 12 stocks hit a 52 week low at 3.10 pm on the BSE

Gujarat Mineral Development Corporation Limited approved a ₹3,041 crore capital outlay for FY25. The company reported focusing on new lignite projects, operationalizing coal blocks in Odisha, expanding metal projects, and developing power projects. Shares up 3.40% to Rs 414.95 on the BSE.

TaylorMade Renewables Limited announced the acquisition of a majority stake in Ahmedabad-based Reciclar Technologies Pvt Ltd and Memtrix Technologies LLP to expand its portfolio in sewage and effluent treatment plants, water recycling systems, and hollow fiber membranes for water treatment. Shares surged 4.27% to Rs 685 on the BSE.

Bharti Airtel Ltd. expands its retail presence in Kanpur with the opening of three new Company stores to enhance customer service. The shares were down by 0.61% to Rs 1132.80 on the BSE.

The BSE Sensex rose 77.88 pts or 0.11% to 72,700.97 and the NSE Nifty increased 28.35 pts or 0.13% to 22,083.40.

Mahindra Lifespace Developers Ltd’s shares rose 2.19% to ₹614.75 after the company achieved over ₹800 crore in sales within three days at Mahindra Vista, India’s first Net Zero Waste with Energy residential project in Kandivali East, Mumbai.

ABB India stock has surged 8.25 per cent on the NSE, trading at ₹5,395.75 as of 1.28 pm on Thursday. The stock has hit a 52-week high today at ₹5,410.

The stock has continued to rise since the company announced its financial results for the quarter and year ended December 2023 on Tuesday. 

Grasim Industries Limited, a flagship company of the Aditya Birla Group, unveiled Birla Opus, its new decorative paints brand, targeting ₹10,000 crore revenue within 3 years, marking its entry into the Indian decorative paints market with upfront investment. Shares up by 2.10% to ₹2146.40 on the BSE.

Happiest Minds Technologies’ shares were down by 0.45% to ₹822 on the BSE. 

Olectra Greentech Limited and EVEY Trans Private Limited secured a Letter of Award from BEST for supplying, operating, and maintaining 2,400 electric buses on a Gross Cost Contract Basis, valued at approximately ₹4,000 crore, to be executed over 18 months. Shares were up by 7.44% to ₹2216.10 on the BSE.

Salzer Electronics Limited is establishing a Smart Meter manufacturing facility in Coimbatore, with an annual production capacity of 4 million units, expandable to 10 million in Phase Two, to meet the surging demand for Smart Energy Meters in India. The shares went up by 2.33% to ₹587.35 on the BSE.

NBCC (India) has entered into two memorandum of understanding (MoU) with Housing and Urban Development Corporation Limited (HUDCO). NBCC stock surged 3.95 per cent on the NSE as of 11.32 am on Thursday to trade at ₹144.70. 

The stock had earlier hit a 52-week high on February 5, 2024, at ₹176.85.

Life Insurance Corporation of India (LIC) has informed the stock exchanges that its Mauritius branch is closed temporarily from today, February 22, 2024, on account of Cyclone Eleanor.

The company has quoted in its regulatory filing that “the Mauritius Meteorological Services has issued a Class III warning for Cyclone Eleanor in Mauritius.

This collaboration aims to empower students across the country to pursue their academic dreams with greater ease and affordability, per the company.

The share price of Bajaj Finserv declined 0.95% to ₹1,571.80 on NSE.

Larsen and Toubro Ltd’s constructions buildings & factories vertical secured an order to construct multi-storeyed residential towers in Thane, Mumbai, comprising five towers with 62 floors each and associated parking areas. Shares up by 0.24% to ₹3304 on the BSE

A total of 3,811 stocks were actively traded, 1,717 advanced, while 1,974 declined and 124 stocks remained unchanged where 243 stocks hit a 52 week high and 11 stocks hit a 52 week low at 12.20 pm on the BSE.

Major gainers:

Eicher Motors (1.73%), HCL Technologies (1.65%), Coal India (1.42%), Bajaj Auto (1.11%), ITC (1.00%)

Major losers:

Indusind Bank (-2.82%), Grasim Industries (-2.35%), Bharti Airtel (-2.10%), Titan Industries (-2.01%), Bharat Petroleum Corporation (-0.90%)

ICICI Prudential AMC today announced the launch of Nifty LargeMidcap 250 Index Fund. NFO opens on February 22, 2024, and closes on March 7, 2024.

The Fund invests in the constituents of the Nifty LargeMidcap 250 Index. This index represents all companies from Nifty 100 and Nifty Midcap 150 universe. The index is re-balanced on a semi-annual basis and the aggregate weightage of large-cap stocks and mid-cap stocks is maintained at 50% each. Any reset if required is done quarterly.

In terms of performance, historically, Nifty LargeMidcap 250 TRI has offered better returns, at lower risk, compared to that of NIFTY 100 TRI and Nifty MidCap 150 TRI. Over the last decade, the index has generated a CAGR of 23.22%. When it comes to calendar year returns, the Nifty LargeMidcap 250 index has outperformed Nifty 100 index 7 times in last 10 years.

Bharti Airtel has introduced in-flight roaming plans for customers that will allow them to stay connected while on board a flight. As per the statement from the telecom service provider, the pack provides access to high-speed internet browsing, calling, calling, and a host of other services. It also includes voice, data, and SMS services.

The stock traded at ₹1,116.75 on the NSE, down by 2.03 per cent as of 11:52 am on Thursday.

Technopack Polymers Limited’s shares gained 0.88% to ₹88.95 on the BSE. 

Travel tech platform EaseMyTrip.com has inaugurated a franchise retail store in Gurugram, Haryana.

Easy Trip Planners stock traded flat on the NSE at ₹48.30 as of 10.30 am on Thursday, up by 0.10 per cent.

It is located at shop no. 6, Ground Floor of Spanish Court, Palam Vihar (Opp SCR Global School), and is poised to cater to the travel needs of the locals around the area, the company said in its statement.

Zinc futures (February contract) on the Multi Commodity Exchange (MCX) bounced off the support at ₹204 last week. It marked a high of ₹216.5 on Monday and has softened from there to close at ₹213.4 on Wednesday.

The chart shows that ₹216 is acting as a resistance, where the 20-day moving average (DMA) coincides. As it stands, a rally past ₹216 is less likely.

Tata Tele Business Services introduced a Unified Solution for Toll-Free and WhatsApp Business, enabling enterprises to centralise customer interactions and enhance customer experience across Retail, Manufacturing, Telecom, BFSI, and Services sectors. Shares were up by 2.61% to ₹91.15 on the BSE.

Ceinsys Tech Ltd’s shares were up by 3.28% to ₹584, the company reported, Fugro USA Land Inc awarded a contract worth ₹5.26 crore for the extraction of assets for a 15581-mile Lidar project in New Mexico from March to November 2024.

Bank Nifty futures (February expiry) began today’s session almost flat at 47,000 as against yesterday’s close of 47,025. It has slipped further and is now trading around 46,660, down nearly 0.8 per cent.

Since the contract has slipped below a support at 46,770, it now looks to extend the downswing. The nearest support is at 46,400 and the subsequent one is at 46,000.

The Nifty 50 February Futures (21,986) is down 0.37 per cent. Intraday resistance is in the 22,050-22,100 region. The outlook is bearish. 

The Nifty 50 February Futures contract can fall to 21,850-21,800 in the coming sessions.

VeerHealth Care announced a ₹33 crore expansion plan, focusing on acquiring land, building infrastructure, and procuring machinery, with ₹8 crore to be raised through bank borrowings. The company will also issue 99,99,238 new equity shares at ₹25 per share to existing shareholders, in a 1:2 ratio, to strengthen financial resources and enhance healthcare solutions under the brand “Ayuveer.” Shares surged 10.32% to ₹24.90 on the BSE.

Benchmark indices slipped in early trade on Thursday. BSE Sensex fell by 168.80 pts or 0.23 per cent to trade at 72,454.29 as of 9.58 am, while Nifty 50 traded at 21,992.65, down by 62.40 or 0.28 per cent.

Nifty microcap, smallcap, and midcap all traded in red as of 9.42 am. Four sectoral indices traded in the green, being Nifty IT, metal, auto, and realty. Nifty Oil & Gas slipped by 0.98 per cent to trade at 11,656.60, and Nifty PSU Bank stocks slided down by 0.89 per cent to trade at 7,079.90.

Pransatree Holdings Pte Ltd (seller) has diluted its stake in Tourism Finance Corporation of Indja (TFCI) by selling 4.71 per cent stake on February 20th.

Koppara Sajeeve Thomas, person acting in concert/PAC with Pransatree Holdings Pte, sold his enitre 4.92 per cent stake in TFCI, per Pransatree Holdings’ regulatory filing.

After the stake sale, Pransatree Holdings Pte holds 4.1 per cent stake in TFCI.

Jefferies, a global investment advisory firm, has turned more bullish on India’s prospectus over the next 10 years. According to Jefferies, India will be the third-largest economy by 2027.

India’s market cap is currently the 5th largest globally ($4.5 trn) but India’s weight in global indices is still low at 1.6 per cent (10th rank). “This should change as market free float rises and some weight anomalies get sorted out. Assuming market returns in line with the last 15-20 year history and new listings, India will become nearly a $10 trn market by 2030 - impossible for large global investors to ignore,” the report added.

The rupee stayed firm for the fourth straight session and gained 4 paise to 82.92 against the US dollar in early trade on Thursday, tracking a weak American currency against major overseas rivals.

Forex trader said, however, the Indian currency was under pressure due to subdued equity market sentiment and elevated level of crude oil prices.

At the interbank foreign exchange, the domestic currency opened at 82.94 and gained further to 82.92 against the greenback in initial deals, registering a gain of 4 paise from its previous close.

The India upstream stocks have proven to be strong value plays in recent months, with 

both ONGC and Oil India trading higher led by robust production growth guidance. We still see another 15-20% of ‘value’ upside’ left in both these stocks; beyond this, we believe growth prospects become paramount for a sustained re-rating. 

As a result, investor attention for both stocks could soon shift away from valuation discount (vs previous cycle) to assessing volume growth scenarios, analysing operating costs (onshore versus offshore acreage) and the strength and visibility of the exploration and development pipeline. 

We remain positive on both the stocks and reiterate our BUY rating on ONGC and Oil India with target prices of ₹315 and ₹650, respectively.

Easy Trip Planners Ltd. launched a franchise store in Palam Vihar, Gurugram, to offer a range of travel services, flight and hotel bookings, bus and railway ticketing and vacations. Shares down 0.81% to Rs 47.92 on the BSE.

Nifty outlook:

The 22250 region proved stiff yet again, and the turn lower thereof found enough momentum to test the 22000 vicinity, only to see bargain hunting surfacing again. While this was encouraging towards an early return to the 22450-550 trajectory, we feel that the trend is evenly poised with several ifs and buts and hence is not as directional as was seen at the start of the week. Push above 22131 could however signal strength. - Read more

Derivative outlook:

Nifty weekly contract has highest open interest at 22500 for Calls and 21500 for Puts while monthly contracts have highest open interest at 23000 for Calls and 22000 for Puts. Highest new OI addition was seen at 22200 for Calls and 21500 for Puts in weekly and at 22200 for Calls and 22200 for Puts in monthly contracts. FIIs increased their future index long position holdings by 8.23%, increased future index shorts by 1.46% and in index options by 19.09% decrease in Call longs, 32.17% decrease in Call short, 30.82% decrease in Put longs and 41.04% decrease in Put shorts. - Read more

USD-INR outlook:

Slow but continued slippage since the start of the week has left USDINR without strength to bounce back despite near 82.9. We lie in wait for a break of 82.78-83.1 region for further directional cues.

ABB India (ABB IN) - Amit Anwani - Research Analyst, Prabhudas Lilladher Pvt. Ltd.

Rating: ACCUMULATE | CMP: ₹4,985 | TP: ₹5,329

Q4CY23 Result Update – Healthy performance with improved profitability

Quick Pointers:

Order inflows grew 34.8% YoY to ₹3,150 crore, aided by a large order in Motion segment for traction converter from a Railway customer.

Negative impact of ₹10.5 crore from exchange and commodity variation (vs ₹30.6 crore gain in Q4CY22).

We revise our CY24/25E EPS estimates by +3.4%/7.6% factoring in continued strong domestic demand and premiumisation. ABB India (ABB) reported healthy quarterly performance with revenue growing 13.6% YoY and EBITDA margin rising by 12bps YoY to 15.1%. Domestic market is expanding faster than exports due to better investment momentum. Contributions from new segments such as data centers, rail & metro, renewables, and electronics may be small but are growing rapidly with high order inflows. Meanwhile, ‘low-growth’ core sectors such as cement, oil gas, metals, ports, etc. which contribute significantly to the order book have been muted but are gradually picking up momentum. Despite growing traction in large long-cycle projects, we expect margins to remain steady on the back of improving mix, continued premiumisation, and better pricing and capacity utilisation.

We remain positive on ABB given 1) increasing traction for energy efficient products, 2) changing customer preference towards premium quality products, 3) diversified business model, 4) focus on high growth segments such as Data Centers, Electronics, Rail & Metro, Renewables, etc., and 5) strong domestic order pipeline. The stock is trading at a P/E of 72.2x/60.8x CY24/25E. We maintain ‘Accumulate’ rating with a revised TP of ₹5,329 (₹4,950 earlier) valuing it at a P/E of 65x CY25 (same as earlier).

Finolex Cables Ltd has formalized a Memorandum of Understanding (MoU) with the Department of Industries, Government of Maharashtra. This strategic partnership sets the stage for Finolex Cables’ investment of ₹580 crore, as part of the company’s expansion efforts within the optic fibre cables industry.

RateGain Travel Technologies’ shares declined by 0.64% to ₹795 on the BSE. 

“The underlying strength of the ongoing market rally is getting widely acknowledged. This explains the FII buying, though marginal, yesterday when the US 10-year bond yield was around 4.3 percent. DIIs have been smart to buy continuously when the FIIs have been selling. So, for DIIs there is room to book some profits, which they did yesterday. In the tug of war between FIIs and DIIs in recent years, DIIs have been the clear winners. So, watch out for the DII action.

“An important trend now is the huge delivery based buying in the private banks, which are even now attractively valued in this market with elevated valuations. Switching from over-valued mid and small caps to large private banks would be a smart move.”

127 stocks hit a 52 week high and 6 stocks hit a 52 week low at 9.30 am on the BSE.

Top gainers on the NSE at 9.30 am include - Axis Bank (1.86%), Grasim Industries (1.75%), Eicher Motors (1.73%), HCl Technologies (1.71%), Hindalco Industries (1.52%)

Top losers include-Bharat Petroleum Corporation (-1.78%), Asian paints (-1.54%), Power grid corporation of India (-1.25%), Bharti Airtel (-1.25%), Bajaj Finserv (-1.01%)

BULLION

“Gold and silver experienced a dip following the release of the FOMC meeting minutes on Wednesday, as the tone of Federal Reserve members was slightly more hawkish than anticipated. The Fed remains cautious about rising inflation and seeks further progress towards achieving its 2% target before considering easing measures. However, the outcomes of the FOMC meeting minutes aligned with market expectations, yielding no significant surprises. The steady trading of the dollar index tempered gains in precious metals, yet geopolitical tensions in the Middle East and volatility in global financial markets could lend support to gold and silver prices at lower levels. Gold has support levels at $2012-1998 and resistance at $2039-2051, while silver has support at $22.74-21.61 and resistance at $23.08-23.22. In terms of INR, gold finds support at ₹61,940-61,770 with resistance at ₹62,350 and ₹62,520. Silver’s support lies at ₹70,040-69,580, with resistance at ₹71,050 and ₹71,780.”

CRUDE OIL

“Crude oil experienced significant volatility, initially plunging in early trading before rebounding from lows following Israeli air strikes on Hamas. Geopolitical tensions in the Middle East are bolstering crude oil prices at lower levels. However, the market remains unsurprised by the FOMC meeting minutes released on Wednesday. The API report, also released on Wednesday, indicated a 7.2 million barrel increase in U.S. crude oil inventories for the week ending February 16, potentially limiting crude oil gains. The U.S. EIA will release its weekly inventory report later today. We anticipate continued volatility in today’s crude oil session, with support expected at $77.10–76.40 and resistance at $78.50-79.10. In terms of INR, crude oil is anticipated to find support at ₹6,360-6,290 and resistance at ₹6,510-6,590.”

Silver has held steady as traders alter their positions for the Fed’s rate cuts, while escalating Middle East tensions are fuelling some safe-haven flows. The FOMC minutes revealed that the Fed is not in a rush to lower interest rates. Initially expecting a reduction in March, traders now see a 53% chance of a 25bps drop in June. Despite present swings, silver prices are predicted to rise this year due to a weaker currency and lower Treasury yields caused by the Fed’s expected shift towards a more accommodating monetary policy.

German Flash Manufacturing PMI

German Flash Services PMI from Euro Zone

Flash Manufacturing PMI

Flash Services PMI from GBP Zone and Unemployment Claims

Flash Manufacturing PMI

Flash Services PMI from US Zone

The ₹525.14-crore IPO of GPT Healthcare opens today at a price band of ₹177-186. The issue consists of a fresh issue worth ₹40 crore and an offer for sale (OFS) of up to 2.608 crore shares (worth ₹485.14 crore) by investors selling shareholders worth ₹485.14 crore.

The IPO closes on Monday (February 26) and the market lot is 80 shares.

Gold prices rose up on safe-haven demand amid escalating geopolitical concerns in the Middle East and a weaker dollar, while minutes from the recent US Federal Reserve meeting reduced expectations for an early interest rate cut. According to minutes from the Fed’s last meeting on January 30-31, the majority of policymakers were concerned about the risks of reducing interest rates too quickly. According to the CME Fed Watch Tool, markets currently expect a 70% chance of a rate drop in June.

At 9.15 am on Thursday, April Brent oil futures were at $83.15, up by 0.14 per cent; and April crude oil futures on WTI (West Texas Intermediate) were at $78.06, up by 0.19 per cent. March crude oil futures were trading at ₹6480 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹6447, up by 0.51 per cent; and April futures were trading at ₹6471 as against the previous close of ₹6436, up by 0.54 per cent.

The ₹1,800-crore initial public offering of Juniper Hotels saw a lukewarm response on Day 1 with only retail investors showing some interest. The IPO was subscribed 11 per cent or 0.11 times at the end of Day 1.

The issue of Juniper Hotels, which owns the “Hyatt” brand, received bids for 32.50 lakh shares as against an offer of 2.89 crore shares (net off anchor portion).

Route – Tender\u0009\u0009

Buyback Price: 1005/-\u0009\u0009

Current Market Price: 893.50 /-

Market Cap: Rs 90,440 crores\u0009\u0009\u0009

Buyback Size: ₹600 Crs (Representing 5.28% and 3.33% of the aggregate of the Company’s fully paid-up equity capital and free reserves)\u0009\u0009

Buyback Size: 59,70,149 shares (Representing 0.59 % of O/s. shares)\u0009

Retail Quota: 8,95,522 Shares\u0009

Last Cum Trading Date – 22 Febrauary 2024 (Today)

Ex-Date –23 Febrauary 2024

Buyback Record Date: 23 Febrauary 2024

Buyback Schedule: Not Yet Announced

Issue Open - 06-March-24

Issue Close - 20-March-24

Right issue Size: Rs. 1,151.01 Crs (52.32 Crs Shares)

Stock Price – 32.54 /-

Right issue Price: Rs. 22 /-

Payment Terms: Rs. 22 /- (Full amount of Rs. 22 for rights equity shares has to be paid on application.)

Rights Entitlement Ratio: 1 Rights Equity Share for every 4 shares held (Effectively 0.25 for every 1 share held).

Last Trade date (Cum Right): 26 February 2024

Ex-Right Trading date: 27 February 2024

Record Date: 27 February 2024

Right Entitlement (RE) Trading Period:- Not Yet Announced

Last day of Renunciation of Rights Entitlements: Not Yet Announced

Date of Allotment (on or about): Not Yet Announced

Date of listing (on or about): Not Yet Announced

Effective Discount Per share – Rs. 2.11

{CMP-[(no. of Shares * CMP) + (No. of RE * Right issue Price) ]/ No. of Shares incl. RE}

Route – Tender\u0009\u0009

Buyback Price: 725.00/-\u0009\u0009

Current Market Price: 678.95 /-

Market Cap: Rs 3,797 crores\u0009\u0009\u0009

Buyback Size: ₹325 Crs (Representing 8.01% and 4.01% ofthe aggregate of the total paid-up capital and free reserves)\u0009\u0009

Buyback Size: 44,82,758 shares (Representing 8.02 % of O/s. shares)\u0009

Retail Quota: 6,72,414 Shares\u0009

Last Cum Trading Date – 22 Febrauary 2024 (Today)

Ex-Date –23 Febrauary 2024

Buyback Record Date: 23 Febrauary 2024

Buyback Schedule: Not Yet Announced

Ex-Dividend 23 February 2024 (Tomorrow)

Last date for Cum-Dividend Today

Aegis Logistics Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 452.05

Bharat Forge Ltd.

Dividend Per Share Rs.2.5

Previous day Closing Price – Rs. 1124.05

BLS International Services Ltd

Dividend Per Share Rs.0.5

Previous day Closing Price – Rs. 378.95

Bosch Ltd.

Dividend Per Share Rs.205

Previous day Closing Price – Rs. 28068.65

Cantabil Retail India Ltd.

Dividend Per Share Rs.0.4

Previous day Closing Price – Rs. 239.15

Career Point Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 259.65

Dynamatic Technologies Ltd.

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 6893.7

Gretex Corporate Services Ltd

Dividend Per Share Rs.0.3

Previous day Closing Price – Rs. 378

Garden Reach Shipbuilders & Engineers Ltd

Dividend Per Share Rs.7.92

Previous day Closing Price – Rs. 807.95

India Nippon Electricals Ltd.

Dividend Per Share Rs.10.25

Previous day Closing Price – Rs. 755

Kirloskar Oil Engines Ltd.

Dividend Per Share Rs.2.5

Previous day Closing Price – Rs. 888.85

Modison Ltd

Dividend Per Share Rs.0.5

Previous day Closing Price – Rs. 131.95

National Aluminium Co.Ltd.

Dividend Per Share Rs.2

Previous day Closing Price – Rs. 157.2

Nicco Parks & Resorts Ltd.

Dividend Per Share Rs.0.2

Previous day Closing Price – Rs. 145.55

Nirlon Ltd.

Dividend Per Share Rs.15

Previous day Closing Price – Rs. 464.35

Sandesh Ltd.

Dividend Per Share Rs.5

Previous day Closing Price – Rs. 1357.05

Saurashtra Cement Ltd.

Dividend Per Share Rs.1

Previous day Closing Price – Rs. 114.39

Sun Tv Network Ltd.

Dividend Per Share Rs.2.5

Previous day Closing Price – Rs. 610.15

Taparia Tools Ltd.

Dividend Per Share Rs.20

Previous day Closing Price – Rs. 3.06

United Drilling Tools Ltd.

Dividend Per Share Rs.0.6

Previous day Closing Price – Rs. 282.45

Xchanging Solutions Ltd.

Dividend Per Share Rs.15

Previous day Closing Price – Rs. 169.7

Eureka Forbes

Promoter to sell upto 12% stake via block deals

Lunolux to sell 2.3 cr shares

Floor price of deal at Rs 494.75 (max 3% discount)

HEG – Buy, TP Rs 2300

Graphite – Buy, TP Rs 650

Both missed Q3 JEFe.

While vol grew YoY due to better utilization, pricing & margin pressure could stay for 2-3 qtrs.

Needle coke is also softening, but est benefit with a lag

Cut FY25-26e EBITDA by 2-7%

Neutral, TP Cut to Rs 450

Cut reflect potential payments market share loss & slowdown in lending in near term as a consequence of recent RBI directive

Reduce FY24E-26E rev/adj. EBITDA est, by up to c.36%/80%

Now expect FY25 rev to decline 21% YoY(vs 16% growth earlier

U-P, TP Rs 2500

Grasim is set to unveil its 1st paint capacity in Panipat Co is set to launch two more plants by Mar-24 

Sector has never seen such massive capacity build-out in such a short span

Expect this to reflect in market shares & margins

Resume Buy, TP Rs 5740

Rising convergence between automation, electrification and premiumization

Upbeat on ordering outlook

Margin trajectory of 14.0-14.5% appears sustainable

Trading at ~53x CY25F EPS

Buy, TP Rs 5380

Q4CY23: Concludes CY23 on a strong note

New orders at Rs 31.5bn(up 35% YoY) led by sustained base orders & some large value orders in segments like mobility 

Commentary strong given strong orders in motion/electrification product segments

Buy, TP Raised to Rs 6115

4QCY23 EBITDA lower than expectations given 7% rev miss

However, order flow up 35% YoY & provides strong rev growth visibility

Margins flattish at 10 bps YoY improvement, but CY23 margins were up 303 bps YoY at 14.3%

Sell on HP, BP & IOC

While a cut in retail prices of diesel or petrol looks less likely now, a 5%-7% rally in crude prices may again raise worries over marketing margins

Govt’s fiscal consolidation goal may make it look at avenues of raising fuel taxes after election.

Large global refining capacity additions, may soon raise doubt over continuation of current high margins

@5.5x FY25 EV/Ebitda (cf. global peer avg of 4.9x), prices of IOC, BP & HP are baking in GRMs of $9-US$12/bbl & marketing margins of Rs2.5-Rs3/litre.

ABB INDIA: Benefiting from quality, localization and penetration

(ABB IN, Mkt Cap USD12.7b, CMP INR4985, TP INR5800, 16% Upside, Buy)

Motilal Oswal

ABB’s PAT came in ahead of our estimate in 4QCY23, as margins significantly beat our expectation. Revenue growth was lower than our estimate due to a higher share of its long-duration projects business. Order inflows have plateaued over the last four quarters and future growth will depend on how fast the orders are finalized and how fast the private sector recovers. ABB has been benefiting from strong demand for quality players across industries - government or private. With a deeper penetration across market segments and geographies and control over costs via localization, ABB has been able to gain higher margins. We continue to believe that ABB’s addressable market is expanding fast across segments like transmission, railways, data center, electronics, and PLI-led capex. We expect the company’s margins to remain strong at around 14%. We raise our CY24/CY25 EPS estimates by 2%/4.4% and increase our DCF-based TP to INR5,800 (from INR5,480), implying a P/E of 65x on Mar’26E EPS. ABB remains our top pick in the sector.

ALKEM: Focus remains on DF/US; valuations priced in

(ALKEM IN, Mkt Cap USD7.8b, CMP INR5410, TP INR5160, 5% Downside, Neutral)

Motilal Oswal

- ALKEM is one of the pharmaceutical companies with the highest proportion of (66% of total sales 9MFY24) sales from the domestic formulation (DF) segment.

- While it continues to outperform the industry in the DF segment, the outlook is dependent on the variability of season and acute infections as it derives 82% of DF sales from acute therapies.

- After muted performance in the US generics business (23% of sales) over FY18-23, there has been some recovery in 9MFY24. The sound compliance track-record and a healthy product pipeline would enable 6% sales CAGR in CC terms to USD394m over FY24-26.

- Further, ALKEM is focusing on the biosimilar and CDMO business through Enzene biosciences and expects to reach breakeven in FY25.

- Over FY18-23, ALKEM has delivered 13%/10%/12% Revenue/EBITDA/PAT CAGR. However, ROE decreased from 15% in FY18 to 14% in FY23.

- Considering 9% earnings CAGR and return ratio stabilizing at ~18% over FY24-26, we value ALKEM at 25x 12M (in line with its 10-yr average and 17% discount to sector average) forward earnings to arrive at a target price of INR5160. We believe the current valuation and ~65% stock appreciation over the past one year adequately factor the upside in earnings. We reiterate our Neutral stance on the stock.

Oil & Gas | India Upstream: Still has more steam left!

Motilal OSwal

- Despite recent re-rating, we still see another 15-20% of ‘value’ upside’ left in both ONGC/OINL; beyond this, we believe growth prospects become paramount for a sustained re-rating.

- As a result, investor attention for both stocks could soon shift away from valuation discount (vs previous cycle) to assessing volume growth scenarios, analyzing operating costs (onshore versus offshore acreage) and the strength and visibility of the exploration and development pipeline.

- We see strong earnings growth catalysts for both stocks (IPO for NRL, start of operations at overseas assets such as Libya, Mozambique and Venezuela and turnaround of operations at OPaL) and maintain our Buy rating on both.

Genpharmasec said pursuant to the finalisation of the basis of allotment of the Rights Issue as approved by BSE, the designated stock exchange, the rights issue committee has approved the allotment of 27,68,59,850 shares fully paid up at an issue price of ₹1.75 a share to the eligible equity shareholders.

Ashiana Housing has launched Phase 1 of “Ashiana Nitara”, a premium homes project situated at Bhankrota Kalan, Jaipur (Rajasthan) on February 11. Phase 1 of Ashiana Nitara project comprises of 56 villas with total saleable area of 1.27 lakhs sq. ft. Of the 56 Villas launched, 14 Villas in Phase 1 of the project have been converted into bookings by February 20, having sale value of ₹22.90 crore and saleable area of 0.32 lakhs sq. ft.

he Board of Directors of Mangal Credit and Fincorp Limited has approved the allotment of 2,50,000 shares of face value of ₹10 each as fully paid up at ₹110 a share and allotment of 15,50,000 Warrants at a price (including the Warrant Subscription price and the warrant exercise price) of ₹110 each payable in cash on preferential basis to Hardik Jain, Promoter and Executive Director of the Company

Dow Jones, a global provider of news and business information, and Infosys have announced the rollout of a new and enhanced WSJ Preference Center featuring updated controls to help subscribers customise their digital experience.

Indian shares are set to open marginally higher on Thursday, after snapping a six-session winning streak in the previous session, while their Asian peers gained slightly, led by a rally in Japanese stocks. India’s GIFT Nifty was trading at 22,150 as of 8:11 a.m., indicating that the NSE Nifty 50 will open above its Wednesday’s close of 22,055.05. The blue-chip indexes, Nifty 50 and BSE Sensex, lost about 0.6% each on Wednesday, as domestic investors booked profits after six sessions of gains in which the benchmarks gained 2.7%. Domestic institutional investors snapped a seven-session buying streak on Wednesday, offloading shares worth ₹412 crore, on a net basis. Foreign investors, on the other hand, turned net buyers after two sessions, adding ₹285 crore of shares.

The Securities and Exchange Board of India (SEBI) is deliberating on allowing brokers to invest in non-securities or unrelated businesses, said three people in the know.

Brokers are keen to use their surplus net worth or reserves to invest in fintech, technology and even real estate companies. Some want to lend to their NBFC arms.

Rule 8 (1)(f) and Rule 8 (3)(f) of the SCRR require that members of a stock exchange, including brokers, do not engage in businesses other than securities or commodity derivatives.

Motilal Oswal

Glenmark Pharma (GNP) delivered a miss on its Q3-FY24 earnings, largely due to the inventory reset in the domestic formulation (DF) business and an inferior show in the US generics segment. GNP has completed its remediation measures at Monroe and would be requesting the USFDA for a re-inspection.

Nvidia on Wednesday forecast a roughly threefold surge in quarterly revenue that handily beat estimates as the company banked on towering demand for its industry-leading artificial-intelligence chips, sending its shares up 10 per cent after-hours.

The already-hefty demand for the company’s data center chips and graphics processing units (GPUs) continues to grow as firms scramble to expand their AI offerings. Nvidia’s silicon dominates the global market for AI chips, where it counts the likes of Microsoft among its customers.

OMCs baking-in high margins and steep premiums to global peers; SELL

“Following the 63-80 per cent rally in the stock prices of Indian Oil Corporation (IOC), Bharat Petroleum (BP) and Hindustan Petroleum (HP), we run a three way sensitivity analysis to get a sense of what is priced-in. 

Our calculations suggests these stocks are pricing-in much higher than historical marketing margins, a continuation of near-record refining margins and a notable premium to the global peer average EV/Ebitda multiple. 

While a cut in the retail prices of diesel or petrol looks less likely now, a 5-7 per cent rally in crude prices may again raise worries over marketing margins. The government’s fiscal consolidation goal may make it look at avenues of raising fuel taxes after the elections. These, along with large global refining capacity additions, may soon raise doubt over the continuation of current high margins; we retain our SELL ratings on IOC, BP and HP.”

• Policymakers expressed concerns about the risk of premature interest rate cuts.
• Uncertainty arose about the duration of borrowing costs to return inflation to the Fed’s 2% target.
• Most participants noted the risks of moving too quickly to ease policy stance.
• Only a few pointed to downside risks associated with maintaining an overly restrictive stance for too long.
• US stocks fell slightly, while the US dollar remained little changed.
• Fed policymakers agreed on a cautious, slower approach to rate cuts.
• Some participants cited a risk that progress on inflation could stall if the economy continued to perform strongly.

LIC’s focus on its Non-Par products is expected to drive the revenue and profitability growth in future, says AUM Capital. During the 9-month period ending December 2023, the share of non-par products increased to 14 per cent from 9.4 per cent a year ago. During the same period, the share of par products dropped to 85.96 per cent from 90.5 per cent.

Jubilant FoodWorks is looking to step up focus on Domino’s value offerings at a time when the QSR sector is witnessing sluggishness in the dine-in segment. The leading food services company, which launched the first outlet of Popeyes in the National Capital Region, expects the brand to emerge as the fastest QSR chain to cross the ₹1,000 crore-mark in the next 4-5 years.

Sameer Khetarpal, CEO & MD, Jubilant FoodWorks Ltd, told businessline, “I think it is a time where we need to pass more value to consumers. In high-inflation environment, consumer tighten their purse strings and conserve cash.

The Supreme Court on Wednesday said Vedanta Ltd could refurbish its Thoothukudi copper smelting plant, closed six years ago on the grounds of environmental pollution, provided that it follows expert advice on environmental safeguards and made an upfront deposit in an escrow account.

The copper smelting plant was permanently shut down on the orders of the Tamil Nadu government six years ago on grounds of pollution. The 2018 closure of the plant was preceded by nearly 30 years of local protests, which had even led to an incident of police firing.

Strong quarter ends a bonanza CY23

Residential segment continues to shine

Despite the uptick in interest rates, escalating prices and global challenges, the housing market retained an optimistic outlook, marked by soaring property sales. This was driven by growing consumer confidence, shift to luxury housing, and the resilience of the Indian economy. Per property consultant Anarock, in CY23, new launches showed a significant annual growth of 25% (~445k units were launched in top-seven cities). Sales surpassed all prior benchmarks, posting a decadal high of 476k units and a yearly growth of 31%. 

Demand was backed by robust supply pipeline, with many branded developers having announced new launches and entry into newer markets. In Q3FY24, both new launches and sales reached record highs, with launches totaling 117k units, up 26% YoY, and sales at 127k units, up 38% YoY. Prominent grade A developers such as Brigade Enterprises, Godrej Properties and Sobha Realty posted best-ever quarterly sales.

Commercial segment – Traction in leasing

Despite global volatility, India’s commercial real estate market was resilient in 2023. Per Knight Frank, office leasing grew a notable 15% YoY, resulting in absorption of 59.6msf in CY23, within striking distance of historical highs. This growth is predominantly led by employees returning to offices and the expansion of global companies’ operations in India. With the increase in transaction volumes, rentals also stabilized in various micro-markets.

Chennai made it to the top-three list for the first time, with ~2x leasing activity as compared with 2022, primarily due to a surge in demand from global capability centres (GCCs). Pan-India, GCCs accounted for 37% of leasing transactions.

Outlook: Anticipating further growth

India Real Estate breached the previous peak levels (in CY22) led by sustained demand momentum. And CY24 is on course to continue the trend provided no major headwinds obstruct construction activities. The industry is witnessing demand consolidation towards grade A developers, a trend that is projected to persist. The launch pipeline by these developers is expected to strengthen further through new land acquisitions in strategic locations and growth corridors.

Office portfolios may expand further as hybrid working evolves with strong ‘office-first’ approach. India’s growth ecosystem attracts both domestic and foreign occupiers, with global corporations making substantial investments and domestic occupiers expanding. These dynamics are set to bolster office market fundamentals in 2024.

The Outlook is Stable. Fitch has also assigned a Shareholder Support Rating (SSR) of ‘bbb-’

PennWhite Limited, UK, announced that it is expanding its direct presence in the Indian market through setting up of a subsidiary in India viz., PennWhite India Private Ltd, effective February 8.

PennWhite, based in Middlewich (UK), is a leading manufacturer of antifoam chemistry under the Foam Doctor brand which is sold in more than 40 countries. A wide range of other speciality chemicals are also manufactured to service the needs of long-term customers. PennWhite’s processing aids play an essential part in the products of the world’s biggest brands; most consumers may not realise that many of their everyday products have been touched by our specialist processing aids, which are widely used in a wide range of applications, like food & food processing, wastewater treatment, upstream and downstream oil, increasingly in the coatings and adhesives industry.

The company was acquired in November 2022 by Manali Petrochemicals Limited, India (MPL), India’s only integrated manufacturer of polyols and a part of AM International, Singapore.

• ASHOKLEY

• BALRAMCHIN

• BANDHANBNK

• BIOCON

• CANBK

• GMRINFRA

• GNFC

• HINDCOPPER

• INDIACEM

• INDUSTOWER

• NATIONALUM

• PEL

• PVRINOX

• RBLBANK

• ZEEL

10:30 India Flash Manufacturing PMI (Expected: 57.0 versus Previous: 56.9) 

14:00 EURO German Manufacturing PMI (Expected: 46.1 versus Previous: 45.5) 

15:00 U.K. Flash Manufacturing PMI (Expected: 47.5 versus Previous: 47.0) 

19:00 U.S. Unemployment Claims (Expected: 217K versus Previous: 212K) 

20:15 U.S. Flash Manufacturing PMI (Expected: 50.5 versus Previous: 50.7) 

20:30 U.S. Existing Home Sales (Expected: 3.96m versus Previous: 3.78M)

DICIND, JSFB

Q3FY24 EARNING CALENDAR 23.02.2024 

FOSECOIND, RAIN, SANOFI, VALECHAENG

Lloyds Banking Group Plc (Pre market) (Sector- Financials) 

Pioneer Natural Resources Company (Pre market) (Sector- Energy) 

Pacific Gas & Electric Co. (Pre market) (Sector- Energy) 

Keurig Dr Pepper Inc. (Pre market) (Sector- FMCG) 

Newmont Corporation (Pre market) (Sector- Metals) 

Dominion Energy, Inc. (Pre market) (Sector- Energy) 

Cheniere Energy, Inc. (Pre market) (Sector- Energy) 

Moderna, Inc. (Pre market) (Sector- Healthcare) 

Quanta Services, Inc. (Pre market) (Sector- Infrastructure) 

Builders FirstSource, Inc. (Pre market) (Sector- Manufacturing) 

Telefonica SA (Pre market) (Sector- Technology) 

Entergy Corporation (Pre market) (Sector- Energy) 

Iron Mountain Incorporated (Pre market) (Sector- Infrastructure) 

Teck Resources Ltd (Pre market) (Sector- Metals) 

Pool Corporation (Pre market) (Sector- Miscellaneous) 

NICE Ltd (Pre market) (Sector- Technology) 

Grab Holdings Limited (Pre market) (Sector- Technology)

Intuit Inc. (Post market) (Sector- Financial)

Booking Holdings Inc. (Post market) (Sector- Hotel)

EOG Resources, Inc. (Post market) (Sector- Energy)

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

Block, Inc. (Post market) (Sector- Financial)

Nu Holdings Ltd. (Post market) (Sector- Financial)

VICI Properties Inc. (Post market) (Sector- Realty)

Edison International (Post market) (Sector- Power)

Rocket Companies, Inc. (Post market) (Sector- Financial)

Live Nation Entertainment, Inc. (Post market) (Sector- Media)

Coterra Energy Inc. (Post market) (Sector- Energy)

BioMarin Pharmaceutical Inc. (Post market) (Sector- Healthcare)

Morningstar, Inc. (Post market) (Sector- Financial)

Carvana Co. (Post market) (Sector- Retail)

Recent interviews:

ABB India: Sanjeev Sharma, MD

Railway Segment Has Seen Strong Ordering, Portfolio Is Broader & Localised: ABB India

https://www.youtube.com/watch?v=6GCooBnXAQg

Arvind SmartSpaces: Kamal Singal, CEO

Arvind SmartSpaces’ Sets Sales Record For 9MFY24; Phase 1 Inventory Gone in 7 Hours

https://www.youtube.com/watch?v=rLQ3Kzx1KNM

ConfidencePetro: Nitin Khara, CMD

FY24 Revenue Will Be ?2800 Cr, Will Incur ?2,000 Cr Capex To Achieve Rev Guidance: Confidence Petro

https://www.youtube.com/watch?v=Gvpn01U3mpw

Home First Fina: Manoj Viswanathan., CEO

Don’t Expect Cost Of Borrowing To Move Up Beyond 10-15% From Hereon: Home First Finance

https://www.youtube.com/watch?v=kD_VpscS3vY

KAYNES TECHNOLO: Jairam Sampath, Whole Time Director & CFO

Kaynes Tech: Key Growth Levers And Synergies From New Partnership

https://www.youtube.com/watch?v=F3aA1Wo5yW0

Royal OrchHotel: CK Baljee, Chairman

Forecast For FY25 ARR & Margins; Hospitality Competition Rising?

https://www.youtube.com/watch?v=YCwowzu6AEU

ZAGGLE PREPAID OCEAN SERVICES: Avinash Ramesh Godkhindi, Managing Director and Chief Executive Officer

Strong Q3 For Zaggle Prepaid Ocean SVCS | Outlook On FY25 Client Addition

https://www.youtube.com/watch?v=PUgcY2zCyXA

Balaji Amines: D Ram Reddy, MD

Balaji Amines Subdued Q3

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

Brigade Ent: Pavitra Shankar, MD

We Will Continue To Invest In Land & New Projects: Brigade Enterprises

https://www.youtube.com/watch?v=b53bzqKYIt8

Deepak Nitrite: Maulik Mehtav, CEO

Key Levers For Growth; Uptick In Margins Likely?

https://www.youtube.com/watch?v=-C-wib0knzI

Events today:

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

Results today:

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

Turnover: (NSE + BSE)

Cash Volume: 105968.15 + 8224.06 Total: 114192.21

F&O Volume: 559798.03 + 235777.01 Total: 795575.04

Provisional Cash 

FII/FPI: NET BUY: 284.66 

(17080.67 - 16796.01) 

DII: NET SELL: -411.57 

(10151.65 - 10563.22)

Mutual funds holding in troubled Paytm (One 97 Communication) have increased 70 per cent to ₹3,384 crore in January compared with ₹1,995 crore in December as they ramped up exposure to average cost. Investors who have bought stock at a high price tend to buy more of the same stock when it falls. This helps them bring down the overall cost of investment.

In volume terms, fund houses hiked their holdings by 41 per cent in January to 4.4 crore shares, compared with 3.2 crore in December.

LTIMindtree signed a Memorandum of Understanding (MoU) with Eurolife FFH, a insurance company in Athens, Greece to establish Gen Al and Digital Hub in Athens and dedicated facilities in Poland, Europe and Mumbai, India. 

This announcement also aligns with the Government of India’s newly introduced “Anusandhan” scheme, aimed at catalysing innovation and research within technology and startup ecosystem.

GPT Healthcare’s IPO is fairly valued at 32 times annualised H1FY24 earnings, which can be supported by its growth plans in existing and new ventures. 

But the steep discount to peer group valuation, which stands at 59 times FY24 EPS, may not contract anytime soon owing to the lower operating metrics. 

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

UPL’s stock has been depreciating steadily since early last year. It faced a resistance between ₹780 and ₹800 and began to decline. A couple of weeks ago, UPL broke below an important support at ₹500.

This has increased the probability of further fall in the share price of UPL. Although there has been an increase in price recently, it is likely to be a corrective rally. Support-turned-resistance of ₹500 is likely to invite more bears, weighing on the stock.

Japanese stocks and US futures rose Thursday in a sign of fresh momentum in global equities after Nvidia Corp. unveiled a better-than-expected revenue forecast, per a Bloomberg report.

Japanese shares rallied, supported by a depressed yen, pushing the Nikkei 225 Index to within a whisker of its 1989 record high. South Korean shares also rose, while Australian shares erased early losses. The US futures climbed, reversing a small decline for the Nasdaq 100 and bolstering a small gain for the S&P 500, the report added.

Moves in US futures were spurred on by Nvidia results. The tech company’s shares soared as much as 11% in post-market trade after it said first-quarter revenue would likely hit $24 billion, above prior estimates of around $22 billion.