Sensex rallies 440 pts day after interim Budget, Nifty tops 21,850; PSEs up

Stock market highlights on Friday, February 02: In the broader markets, the BSE MidCap index gained 0.8 per cent, while the BSE SmallCap index added 0.5 per cent

3:55 PM

Tech View :: Key levels on Nifty, Bank Nifty to watch out

Nifty50
The daily and hourly momentum indicator provide a divergent signal and prices are stuck within a range. Bollinger bands are contracting indicating range bound price action. Thus, parameters are suggesting that the consolidation is likely to continue. Stock specific action and sector rotation is likely to continue during this period of consolidation. Key support levels are 21,660 – 21,600 while immediate hurdle zone is placed at 22,100 - 22,150.

 

Bank Nifty

Bank Nifty witnessed selling pressure from the 46,900 – 47,000 zone which coincided with the 61.82% Fibonacci retracement level of the entire fall it has witnessed from 48,636 – 44,429. The Bank Nifty is likely to enter into a consolidation phase in the range 47,000 – 45,500 from short term perspective.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:39 PM

Currency check :: Rupee ends 5 paise higher

3:38 PM

Broader Markets :: Midcaps outperform peers

3:37 PM

NIFTY HEATMAP :: Energy, PSUs march ahead on Friday

3:35 PM

CLOSING BELL :: Nifty reclaims 21,850; hits record high intraday

3:34 PM

CLOSING BELL :: Sensex ends sharply off day's high

3:27 PM

CPSE stocks on a roll; BEML Land, NBCC, Engineers India rally up to 20%

As many as 12 stocks from the index hit their respective all-time highs in the intraday trade today. These include NTPC, Power Finance Corporation (PFC), Power Grid Corporation of India, BEML, BEML Land Assets, Hemisphere Properties India, Housing & Urban Development Corporation (Hudco), NHPC, NLC India, and SJVN. READ MORE

3:15 PM

Blackstone-backed Aadhar Housing files Rs 5,000 cr IPO papers with Sebi

The company proposes to utilise the proceeds from the fresh issue to the tune of Rs 750 crore for meeting future capital requirements towards onward lending and a portion will also be used for general corporate purposes. READ MORE

3:04 PM

Earnings ALERT:: Bikaji Foods Q3 net rises 30%; stock drops 3%

Bikaji Foods today reported a 30.1 per cent growth in Q3FY24 net profit at Rs 49.09 crore when compared with Rs 37.74 crore in Q3FY23. Revenue from operations grew by 22.1 per cent YoY to Rs 613.14 crore.

2:57 PM

Earnings ALERT:: Jubilant Pharmova Q3 loss narrows; stock jumps 3%

Jubilant Pharmova narrowed its net loss in Q3FY24 to Rs 2.4 crore as against a loss of Rs 5.9 crore in Q3FY23. Total income was up 1.9 per cent YoY at Rs 194.20 crore.

2:48 PM

Sector ALERT:: Shares of Oil Marketing companies - BPCL, IOC zoom 10%

2:39 PM

US may intensify attacks on Iranian-backed Houthis after Jordan attack

Following the drone attack on a base in Jordan, the US forces are now preparing to hit Iran-backed proxies across the Middle East with increased intensity, as reported by Voice of America (VOA). READ MORE

2:25 PM

Govt to complete IDBI Bank strategic sale in FY25: Dipam Secy Pandey

The government expects to complete the strategic sale of IDBI Bank in the next financial year, a senior official said. READ MORE

2:13 PM

Budget cheer? Here's what drove 1,400-pt rally in Sensex, Nifty to new high

Bulls took centre-stage on Dalal Street on Friday, a day after the Interim Budget 2024 was presented, as markets cheered the fact that the government stuck to its stance on fiscal prudence, and avoided the temptation to announce populist measures, given the general elections year. The S&P BSE Sensex soared 1,444 points intraday to hit a high of 73,089 levels. Read

2:00 PM

Rashi Peripherals IPO: Priced at Rs 295-311 per share, to raise Rs 600 cr

Rashi Peripherals, an information and communications technology products distributor, on Friday said it has fixed a price band of Rs 295-311 apiece for its Rs 600 crore-Initial Public Offering (IPO).
 

The issue will be open for public subscription from February 7 to February 9 and the bidding for anchor investors will open for a day on February 6, the company said in a statement. Read

1:51 PM

Govt to complete IDBI Bank strategic sale in FY25: Dipam Secy Pandey

The government expects to complete the strategic sale of IDBI Bank in the next financial year, a senior official said.
 

In an interview to PTI TV, the Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the process of privatisation of IDBI Bank is on and once the regulator clearance is obtained, financial bids will be invited.

1:31 PM

RIL hits new high, m-cap nears Rs 20 trn mark; Chart hints further upside

Shares of Reliance Industries (RIL) hit a new all-time high of Rs 2,950, up 3.4 per cent, in intra-day trades on Friday on the back of a strong rally in the market. In the market capitalisation (mcap) of the company came within striking distance of the Rs 20 trillion mark, hitting a high of Rs 19.96 trillion today. Read

1:16 PM

PNB enters top 50 most-valuable stocks' club; overtakes BOB in market cap

Currently, PNB is trading at its highest level since February 2018. In the past seven trading days, it has surged 27 per cent after the state-owned bank raised its profit guidance to Rs 7,000-7,500 crore for the current financial year 2023-24 (FY24). Earlier, the second largest lender had set a profit estimate of Rs 6,000 crore for the ongoing fiscal, PTI reported. READ MORE

1:01 PM

Market Check :: Indices off highs; Sensex up 650 pts

12:50 PM

Gokaldas Exports to acquire Matrix Clothing's apparel biz; stock zooms 9%

In an exchange filing, Gokaldas Exports said the company has signed an agreement with Matrix Clothing Private Limited (MCPL) to acquire 100 per cent of the equity share capital of Matrix Design & Industries Private Limited for an enterprise value of Rs 489 crore, out of which Rs 247.5 crore is being paid by way of preferential allotment of shares of Gokaldas Exports through share swap. The board also approved issue of 2.73 million equity shares of the company at Rs 901.14 per share to MCPL. READ MORE

12:32 PM

Q3 preview: 3 reasons why SBI may report weak results in December quarter

BNP Paribas

The global brokerage expects modest growth of 6 per cent year-on-year (Y-o-Y) in the lender's net interest income (NII) at Rs 40,345 crore during the quarter under review. On a quarter-on-quarter (Q-o-Q) basis, it would be a 2 per cent rise. NII was Rs 38,068.6 crore in Q3FY23, and Rs 39,500 crore in Q2FY24. READ MORE

12:21 PM

Q3 result :: Devyani International posts consolidated PAT of Rs 9.6 crore vs Rs 71.7 crore YoY

>> Ebitda at Rs 146 crore vs Rs 170 crore YoY

>> Margin at 17% vs 22% YoY

12:04 PM

Brokerage Report :: Elara Capital on City Union Bank

City Union Bank’s (CUBK IN) Q3 PAT at INR 2.5bn was below estimates, on softer core profitability even as lower credit cost cushioned the impact .

Key highlights were: a) persistent growth challenges – Loan growth at sub-3% YoY (up 0.8% QoQ), which remained under the radar, b) NIM dip of 24bps QoQ, following one-time (FITL) impact, excluding which the impact was much lower and c) sustained asset quality improvement (negative net slippages), which fed into lower credit cost.

The discussion hereon will be centered around growth revival and outcomes of strategic changes made by CUBK.

The divergence between peers and CUBK has been reasonably wider this cycle and closing the gap may be critical to drive a re-rating.

While CUBK has historically been one of the most profitable regional banks in India, past two years have been difficult. 

Even as asset quality has possibly marked a turnaround, we believe challenges in core profitability may persist, which may call for some time correction till investors see a definitive turnaround.

We raise TP of INR 158 (from INR 145). Maintain Accumulate.

11:51 AM

Brokerage Call :: Centrum Broking on Titan

Titan’s Q3FY24 print was below our estimates; amid volatility in gold prices consol. Revenue/EBITDA/PAT grew 22.0%/16.2%/15.5%.

Jewelry segment (incl. bullion sale) grew 23%, driven by strategic gold exchange offer creating customer excitement to lift wedding jewelry share.

Management alluded this to, (1) 50% contribution from new buyer, (2) with 24% contribution studded revenues grew 14%, and (3) growth in international business (now 14 stores). Moreover, jewelry segment reported 12.2% EBIT margin.

Watches segment grew 21.1%, with 5.6% EBIT margin. Eyewear business cut by 4.0%, with 8.4% EBIT margin. Emerging businesses grew 25.8% led by Taneira (+61%), F & FA (-7.0%), while Caratlane saw solid growth of 32.0%.

Gross margin lowered to 23.4% (-60bp); EBITDA at Rs15.6bn improved by 16.2% settling EBITDA margin at 11.0% (-55bp) YoY.

Titan guided to maintain operating margin ~12-13% range.

We increased earnings and retain BUY rating, with a revised DCF-based TP Rs 4,255 (implying 65.6x avg. FY25E/FY26E EPS).

11:36 AM

Brokerage Call :: Centrum Broking on Ambuja Cements

Ambuja reported marginally weak set of results compared to expectations on standalone basis for 3QFY24 as reported Ebitda at Rs 8.5bn is 11% below our estimate.

During the quarter, 12% of Ambuja's clinker capacity was under maintenance which resulted in weak standalone performance.

On consolidated basis, results were better than expected as operating costs declined more than anticipated. Multiple cost saving initiatives undertaken by the company utilizing group’s synergies resulted in commendable improvement in cost structure.

Volume growth for the next 2 years will be driven by Sanghi acquisition and new clinker capacity at Ametha (MP).

The management has given roadmap to reach 110mn mt of capacity by FY27 which is 80% of its 140mn mt target set for FY28.

We maintain our view that meaningful market share gains and high volume growth phase will be realized post FY26. Post recent uptick, we downgrade the stock to Sell from Reduce with TP of Rs 482.

11:19 AM

Paytm hits 2nd straight 20% lower circuit post RBI curbs; downgrades weigh

Paytm expects an impact on its annual earnings before interest, taxes, depreciation and amortisation (Ebitda) in the range between Rs 300 and Rs 500 crore. The company, however, has clarified the regulator’s move will not affect its verticals. READ MORE

11:05 AM

Deficit reduction will stabilise debt-to-GDP ratio over medium term: Fitch

In the interim Budget 2024-25, presented in Parliament on Thursday, the government revised lower its current year fiscal deficit to 5.8 per cent from 5.9 per cent budgeted earlier. READ MORE

10:49 AM

ALERT :: Gokaldas Exports signs definitive agreement to acquire Matrix Design

>> Deal valued at Rs 489 crore

>> Rs 247.5 crore to be paid via preferential allotment 

10:35 AM

This state-owned civil construction stock has zoomed over 100% in 1 month

Shares of NBCC (India) hit a record high of Rs 167.95, as they rallied 18 per cent on the BSE in Friday's intra-day trade on strong order inflows. The stock of state-owned civil construction company surpassed its previous high of Rs 145.65 touched on November 8, 2017. Read

10:13 AM

View: With budget over, volatility to be high from hereon

Now that the two big events are behind us the market is likely to consolidate. The non-populist Budget focused on fiscal consolidation is a big positive.

The big allocation for rural housing will benefit all construction-related segments like cement, steel, paints etc. Another important budget takeaway is the sharp decline in bond yields consequent to the net market borrowing kept low at Rs 11.75 trillion. This is beneficial for banks.
 

Global cues are better since the mother market US is appreciating the favourable trends in the US economy after the brief disappointment with the cautious Fed message.

It is evident that the US is heading for a soft landing and rate cuts are coming. Correction in the dollar index to 103 and the US 10-year falling to 3.88% may restrain the FIIs from selling.

 

The near-term risk in the market is the high valuation, which can trigger corrections on some negative news. Expect high volatility in the near-term.

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