Indian Stock Market News | BSE/NSE Sensex Updates | Equity Market Highlights

Market Highlights

Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

January 11, 2024

News & Impact
· Focus today – US Inflation data. TCS and Infosys Q3 results in the post market today.
· Strong opening in the Asian markets, US S&P 500 Index ended nearly record high, cooling down oil price and ahead of US Inflation data to be announce today, may open domestic equity market on a positive note. All eyes now turn to the crucial US December inflation data today, which could provide crucial insights into the future trajectory of central bank policy. Both China and India inflation data to be release tomorrow while IT majors Infosys and TCS to be announce Q3 results in the post market today. US Fed officials dovish commentary lifted US market up to 0.7% while S&P ended to nearly all time high. Japan Index soared 550 points to 34 years high, gains in Japanese equities partly reflect a weaker yen, which fell to the lowest level in a month against the dollar. Back home, Gift Nifty is up 0.1% while yesterday Nifty recovered smartly from the intra-day low led by heavyweights buying interest like Reliance Industries, TCS, ICICI Bank, Tata Motor. Strong retail participation, hope of good quarterly results and long fund buying interest will be positive for the market sentiment. Expects Rail, Infra, real estate, EV, oil marketing stocks rally to continue due to impressive quarterly earnings update and strong order book. IT stocks will be in focus on ahead of IT majors Infosys and TCS to be release today in the post market today.
· Global Market summary –.U.S. stocks rise with S&P 500 shy of record high. Asia stocks surged, Bitcoin rally ahead of US Inflation. European Stocks ends flat Ahead of US Inflation Data. Oil holds decline after US stockpiles post Unexpected Increase. Gold Steady ahead of key data as traders temper Rate-Cut hopes.
· US Market –U.S. stocks experienced a modest uptick on Wednesday, as investor sentiment subdued ahead of the release of crucial inflation data and the kick-off of bank earnings season. Dow Jones 170 points, or 0.45 percent,. The S&P 500 added 26.95 points, or 0.57 percent, to 4,783 to 2-year high while Nasdaq Composite gained 0.7%.
· Asian Market –-- Asian equities open on strong note ahead of US inflation data due later Thursday. Bitcoin climbed after US regulators approved exchange-traded funds tied to the digital currency. Australian and Japanese stocks gained, with Tokyo benchmarks on pace to retest fresh three-decade highs achieved in the prior session and surged by 1.5%.
· European Market –European stocks ended flat as investors awaited a key US inflation report Thursday for clues about the path of Federal Reserve interest-rate cuts. UK, Germany and France Index ended on a flat note.
· Oil Price Update –.Oil held a decline by 1% to below $78/bbl after an unexpected increase in US oil inventory , overshadowing growing geopolitical risks in the Middle East.
· Gold Price Update –Gold was steady at $2027/ounce ahead of a crucial US inflation report, with markets tempering expectations for Federal Reserve rate cuts early this year
· Previous Day Market Update –. Renewed buying interest seen in Nifty heavyweights Reliance Industries, TCS, ICICI Bank, Tata Motor, and HCL Tech that lifted Nifty by 73 points or 0.3% to close above 21600 mark. Nifty recovered nearly 200 points or 1% from the intra-day low of 21448 ( intra-day high of 21641). Recovery in the market came in the last hour of trade ahead of major IT Q3 earnings scheduled for tomorrow and the important inflation readings this week that could impact the interest rate outlook. IT, Auto, Rail, and Media stocks were major gainers today. Media stocks witnessed the biggest gains today. Nifty Media Index climbed up by 4% today. FIIs were net sellers Rs1720cr while DIIs were net buyers Rs2080cr Yesterday.
· Nifty Technical Levels – Nifty formed a small bodied Bullish candle on daily frame with longer lower shadow indicating buying visible at support zones. Now it has to hold above 21550 zones, for an up move towards 21750 then 21850 zones while on the downside support exists at 21450 and 21300 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a Bullish candle on daily scale as it closed above its opening levels but still forming lower highs - lower lows from the last three sessions. Now it has to cross and hold above 47500 zones for a bounce towards 47777 then 48000 zones while on the downside support is seen at 47000 then 46750 levels.
· Events – Nifty Weekly expiry. Integra Essentia Ltd – Ex-Bonus 1:1
· Actionable BUY – IRCTC, Delhivery Ltd, Arvindsmart Space, IRFC, RBA, National Aluminum, CESC, IIFL
· IPO - Jyoti CNC IPO Day 2 - subscribed by 3.7 times .
· Results Today – Infosys, HDFC AMC, TCS and Plastblends India.
· Brokers Radar – Bharti Airtel TGT by Jefferies at 1300. Bharati Airtel TGT by HSBC at 1125, Morgan Stanley TGT on Coforge at 7200, Morgan Stanly TGT on Shriram Transport at 2700, Goldman Sachs TGT on Shriram Transport at 2758. Bank of America TGT on Bharti Airtel at 1250
· Global Data–CPI, Initial Jobless Claims (US). WPI (Germany).
· Market Summary – Tata Motors To Establish Lithium-Ion Battery Factory In Gujarat. ata Power Plans to Boost Renewable Capacity Four Fold by 2027. Sony Group Continues Talks on Zee Merger Deal – media report. SBI raising $300 mn via medium term bonds, assigned BBB- ratings by S&P. RPSG Group flagship CESC to set up green hydrogen plant in push for new forms of energy. Bank of India Sees 14.9% Jump in Fiscal Q3 Gross Advances
· SBI - Marking the first US dollar bond issuance by an Indian company in 2024, State Bank of India (SBI) has raised $600 million in 5-year bonds through its London branch, with the country's largest mass lender receiving total bids worth a massive $3.5 billion for the debt sale. - Positive
· Tata Motors - At the Vibrant Gujarat Global Summit, Tata Motors Chairman Natarajan Chandrasekaran announced plans to build a lithium-ion battery manufacturing facility in Sanand, northern Gujarat – positive.
· Tata Power - Company is targeting a near four-fold growth in its renewable generation capacity to 15 gigawatts by 2027 as the country’s second biggest private generator seeks to decarbonize operations. – Long term positive
· NBCC – Company bagged orders worth Rs218cr from Nift for campus construction - positive
· Phoenix Mills – Company’s Q3 gross retail collection rose 30% (YoY) and Q3 collection surged 30% to Rs700cr _ positive
· CESC – Company will set up a green hydrogen plant, the first by the RPSG Group flagship, signalling its foray into new forms of energy. The thermal power producer, which supplies electricity to Calcutta and its suburbs, will build a 10,500 tonne capacity unit on the east coast. - positive
· Zee Merger Deal: Sony Group is continuing talks on a deal to merge its Indian subsidiary with Zee Entertainment - Nikkei news reports. Talks will continue until Jan. 20
· ONGC - ONGC Vides a subsidiary and overseas arm of Oil and Natural Gas Corp.—has incorporated the wholly owned subsidiary OVL Overseas IFSC Ltd. in GIFT City, Gujarat. OVL Overseas IFSC will function as the Global Treasury Centre to cater to the activities of ONGC Videsh and its 25 subsidiaries, spread across 15 countries. – Positive
· Polycab India: The IT Department detected unaccounted cash sales of about Rs 1,000 crore after it initiated search and seizure operations against the company. – Avoid
· SpiceJet: The chairman and managing director unveiled the airline's ambitious plans for growth and network expansion through a fund infusion of Rs 2,250 crore. The company has the exclusive rights for Lakshadweep and will launch flights to Agatti Island soon. - positive
· Jindal Steel and Power: The insolvency appellate tribunal NCLAT dismissed the plea of Jindal Power to allow the company to participate in the ongoing resolution process of the debt-ridden Tuticorin Coal Terminal. – We are long term positive
· Kalyani Steels: The company has emerged as a successful bidder to acquire assets of Kamineni Steel and Power India, under liquidation. A cash consideration of Rs 450 crore is to be paid for the acquisition of assets on or before April 7, 2024.- positive
· Mahindra and Mahindra: The company’s stake in Sustainable Energy Infra Trust is diluted to 10.5% from 15.7% earlier and Mahindra Susten's stake in Sustainable Energy Infra Trust is diluted to 15% from 73.9% earlier.- positive
· Axiscades Technologies: The company launched its qualified institutional placement for raising up to Rs 500 crore. It sets the floor price at Rs 696.7 per share which indicates a discount of 9.9% to the stock's current market price. - positive
· CESC: The company’s unit Noida Power Company received an order from the Uttar Pradesh Electricity Regulatory Commission for procurement of power of 95 MW RTC Power per annum for 5 years – positive
· ATUL: The company’s arm starts operations at 300 TPD caustic and 50 MW power plant. - positive
· Angel One: The company will consider fundraising via bonds on Jan. 15.- positive
· Satin Creditcare: The company will consider fundraising via public bond issues.- Positive
· PCBL (Phillips Carbon) – Compay’s board will consider issue of debt securities at a meeting on Jan. 12, the company said in an exchange. NOTE: The fundraise plan comes after PCBL agreed to acquire Aquapharm Chemicals for Rs3800 in cash - posituve
· Paytm – Company has announced an investment of Rs 100 crore in Gujarat International Finance Tec-City (GIFT City). The company Paytm will look to build new technology for users internationally, who are looking to invest in India – positive
· Bank of India – Company said its gross advances jumped 14.9% to Rs5.661 trillion rupees in the fiscal third quarter from 5.078 trillion rupees a year ago. Total deposits in the quarter ended Dec. 31, 2023, rose 8.66% on year to Rs7.103trillion.
· SBI – Company plans to seek bids worth Rs5000cr for Basel III-complaint perpetual notes next week. Bonds have a call option at end of 10 years and annually thereafter- issue sizeRs2000cr with Rs3000cr - positive
· Manappuram Finance - Market regulator SEBI put the IPO of its arm Asirvad Microfinance in abeyance, according to media reports. Asirvad Micro Finance, a subsidiary of Manappuram Finance had filed Draft Red Herring Prospectus with the SEBI on October 5 – expect volatile on the stock
· NBCC – Company has received administrative approval for the increase in the cost of the project Construction of Phase III of BPS Govt. Medical College in Haryana by Rs134.13 crore, bringing the total cost to Rs419.13 crore.- positive
· Tanla Platforms – Company winning a contract for its phishing protection software from an unnamed Indian bank. – positive
· Shakti Pumps –Company has received the 10th Patent for "Surface Helical Pump Construction with Collinear Flow" from the Patent Office, Government of India. – positive
· Purvankara Q3 Business Update – Company reported Q3 sales value at Rs1,241 crore, up 56% YoY and Customer collections at Rs941 crore, up 52% YoY – positive
· Maruti Suzuki Group to Invest $4.2B for Second Car Plant in Gujarat– Japanese carmaker Suzuki Group will invest $4.2b to build its second car plant Gujarat with capacity to produce one million units a year – Positive
· GHCL – Company signs MoU with Tamil Nadu Government for Rs 535 crore investment over four years – positive
· Aurionpro – Company’s board approves fundraising of up to Rs650Crore - positive
· Eveq Remedies – Company gets Rs136cr exports order from Marlexx Pharma - positive
· Brahhamputra Infra – Company gets Rs38.7cr river protection work order - positive
· Dynacons Systems – Company has bagged a significant order from BHEL for High Performance Digital Workplace Solution as a Service including desktops, workstations, LED projectors and UPS for their nationwide offices / factories all over India worth Rs137cr for 5 years as contract period. – positive
Disclaimer - Investments in securities markets are subject to market risks. Please read all related documents carefully. To read complete disclaimer click on https://onlinetrade.motilaloswal.com/emailers/Disclaimer_SRSA/ResearchDisclosure.pdf
*CLSA on GAIL*
Downgrade to U-P from Buy, TP raised to Rs 165 (on roll fwd)
Limited rerating room and subdued EPS growth
A combination of c.50% tariff hike & c.12% spike in transmission vol drove a 70% rise in stock in 2023.
These surprises may be absent in 2024
A low base and some one-off factors boosted an Indian gas demand increase in 2023; demand growth going forward may be a moderate 5%-6%.
This may limit Co’s EPS Cagr over next 2 yrs at sub-5% as consensus on petchem remains uncertain
*Jefferies on Telecom*
Cos likely to shift focus to monetization by announcing tariff hikes &may also introduce 5G-specific tariffs
See spectrum demand in upcoming auctions focused only on renewals which should limit capex &support FCF
*Bharti-Buy, TP Rs 1300*
Indus-U-P, TP Rs 160
*HSBC on Bharti Airtel*
Downgrade to Hold, TP raised to Rs 1125 from Rs 1020
Growth drivers intact: ARPU to rise, market share gains in mobile, growth in non-mobile & capex intensity to decline
However, stock appears to be fairly valued
India biz trading @10.9x FY25e EV/EBITDA
*Antique on Defense sector*
With defence production & exports expected to reach all-time high levels in FY24, sector is all set to experience an equally strong FY25
BUY on BEL, TP of Rs 221
BUY on HAL, TP of Rs 3618
BUY on BDL, TP Rs 2038
*HSBC on Zomato*
Buy, TP Raised to Rs 150
After an extremely strong 2023, expect relatively muted biz & stk performance in 2024
Still, long-term view remains constructive & highly dependent on continued progression of QC biz
Slowing QC growth is a key downside risk
*MS on COFORGE*
Initiate OW, TP Rs 7200
Val are at premium, but have potential to sustain
Key catalysts
a)Deal TCV inches up from qtrly run rate of $300m+
b) co delivers on growth aspirations faster than expected
c) uptick in new grad contribution to net adds
*MS on Bank of India*
OW, TP Rs 135
Gross loan growth strong at 4% QoQ(+11.5% YoY), mainly driven by domestic loan growth at 5% QoQ while overseas book down 0.6% QoQ
Deposit growth remains muted– rightly so, given higher excess liquidity
Domestic LD ratio improved 3ppt QoQ
*MS on Manappuram Fin*
OW, TP Rs 210
Asirvad MFI IPO was put in abeyance by SEBI
Likely had a -ve impact on investor sentiment, as inferred from stk price action yesterday
While IPO & potential value creation; our thesis is premised on undervaluation based on consol earnings
*India Daybook – Stocks in News*
*Phoenix Mills:* Company's gross retail collections at Rs 700 crore, up 30% year-on-year. (Positive)
*Lupin:* Company launched product in U.S. market, used as aid to smoking cessation treatment (Positive)
*NCC:* Smallcap World Fund INC bought 36.15 Lakh Shares at 185.23/Share (Positive)
*Suzlon:* Sairam Prasad named as CEO of unit Suzlon Global Services effective January 16 (Positive)
*Steel Strips:* Directorate General Of Trade Remedies recommends anti-dumping duty on aluminum alloy road Wheel Imports from China for 5 years (Positive)
*Ease My Trip:* Company venturing into insurance sector with the launch of its subsidiary (Positive)
*Steel Strips:* Company completes the process of acquisition of AMW Auto component Limited (Positive)
*NBCC:* Company bags contract worth Rs 218 crore from NIFT campus at Varanasi, Uttar Pradesh. (Positive)
*Maruti Suzuki:* Company plans to produce 10 lakh units annually at new plant. (Positive)
*Welspun Ent:* Company pledges Rs 40,000 crore investment to set up green hydrogen, green ammonia ecosystem in Gujarat. (Positive)
*CESC:* Company's unit Noida Power Company gets order from Uttar Pradesh Electricity Regulatory Commission. (Positive)
*Atul Limited:* Atul Products Ltd, has received approval and started operations of a 300 tpd caustic and 50 MW power plant. (Positive)
*Kalyani Steels:* Company secures acquisition of Kamineni Steel & Power India Pvt Ltd assets under the Insolvency and Bankruptcy Code, 2016 (Positive)
*KIMS:* Company has acquired an additional 5.04% equity stake in Sarvejana Healthcare Private Limited (Positive)
*Sernco Gold:* Company achieved 9% volume growth in gold and 27% in diamond jewelry. (Positive)
*Thirumalai Chemicals:* Company has started commercial production at its subsidiary, TCL Intermediates Private Limited's Greenfield plant in Dahej (Neutral)
*Safari Industries:* Board of directors will meet on January 15 to consider the raising funds (Neutral)
*Bank Of India Q3:* Total business (global) at Rs 12.76 lk cr, up 9.9% (YoY) (Neutral)
*Satin Creditcare:* Company to consider Fund Raising via NCDs on January 15 (Neutral)
*ONGC: Company incorporates wholly owned subsidiary OVL Overseas IFSC in GIFT City, Gujarat (Neutral)
*Mahindra & Mahindra:* Company's stake in Sustainable Energy Infra Trust diluted to 10.5% from 15.7% earlier. (Neutral)
*Bank of Baroda:* Bank hikes lending rates by 5 bps for overnight, six month & one year tenures (Neutral)
*Metro Brands:* Deepika Deepti has resigned as Senior Vice President- Marketing of the company with effect from March 26 (Neutral)
*Axis Cades:* Floor Price Rs 696.7 Rs per share, i.e. discount of 9.9% to CMP. (Negative)
*Polycab:* Income Tax Department detects unaccounted cash sales of about Rs 1,000 crore after it initiates search (Negative)
*NIACL:* Received of SCN cum demand notice from Directorate General of GST for Tax of Rs 2379 crore. (Negative)

351