Closing Bell: Market ends flat amid volatility; realty, IT, metals shine

Ajit Mishra, VP - Technical Research, Religare Broking

Markets traded volatile on the weekly expiry day and ended almost unchanged. Upbeat global cues triggered a gap-up start which further strengthened with renewed buying in the IT majors. However, profit taking in the banking, financials and auto heavyweights pared all the gains as the day progressed. Finally, the Nifty index settled at 18035.85 level. Meanwhile, the broader indices outperformed the benchmark index and gained in the range of 0.7%-1%.

The underperformance of banking majors is capping the recovery while IT, energy and auto majors are playing their parts on rational basis. Amid all, we reiterate our target of 18200 for the Nifty and suggest focusing on buying opportunities on dips.

Dilip Parmar, Research Analyst, HDFC Securities

The Indian rupee makes a comeback after three days of a down streak following stronger regional currencies, better-than-expected trade balance numbers and lower crude oil prices. The local unit also got support from dollar inflows as foreign institutions turned buyers into domestic equities in the last couple of days.

In the near term, spot USDINR has resistance at 82.95 and support at 82.30. The bias remains positive for the pair as long as it trades above 82.30, the 50 days simple moving average.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty opened on a positive note and witnessed price action during the first half of the session. It witnessed some profit booking around the zone of 18,100 - 18,150 and as a result the Nifty gave up most of the gains though closed the day on a positive note.

The hourly momentum indicator has triggered a negative crossover which indicates that a consolidation is likely in the near term.

On the way down the Nifty can retest the breakout zone of 18,000 – 17,950 where support in the key hourly moving averages are placed. The daily momentum indicator still has a positive crossover and thus incase of a dip it should be bought into and the strategy to trade would be to buy on dip near the support zone 18,000 – 17,950.

Today the Nifty has achieved our short term target of 18,100 and hence we revise the target upwards to 18,300 with a reversal of 17,850.

Vinod Nair, Head of Research at Geojit Financial Services

The domestic market absorbed the buoyancy in the global market, led by IT stocks, while upstream oil companies gained as a result of the slash in windfall tax.

After robust jobs data, strong retail sales numbers in the US showed proof of resilience in the US economy amidst concerns over elevated inflation numbers. However, the gains were capped by worries that a stronger economy would attract a tighter monetary policy.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Markets ended marginally higher in a trading session marked with extreme volatility. Traders seem to be taking a cautious stance, especially after the rout in Adani group stocks in recent weeks.

With inflation levels once again inching up, there are concerns that central banks worldwide could continue their rate hiking trend, which could further hurt growth and dampen sentiment.

On the technical front, a small bearish candle on daily charts is indicating a range bound activity in the near future. For the bulls, 17,950-17,900 would act as a key support zone while 18,150-18,200 would be the crucial resistance zone. However, below 17,900, the uptrend would be vulnerable.

Santosh Meena, Head of Research, Swastika Investmart

The Bank Nifty is struggling to cross 42000 level. The main reason is that FIIs are selling stocks under financial names. Banking stocks performed well in 2022 while IT stocks performed poorly; therefore, we are seeing a tactical shift by FIIs at the beginning of 2023.

All banks are coming out with strong earnings, but the market had already factored in good numbers. The Adani Saga caused some concern in the banking industry as well. However, the outlook for the banking sector is still promising, and valuations are still not near the peaks of their good times; therefore, this consolidation or correction is a buying opportunity.

In the near term, 42000-43000 will act as a resistance area, but above this, we can expect fresh bullish momentum towards the 45000 level. On the downside, 40,000 will act as a strong base.

Rupee Close:

Indian rupee closed higher at 82.71 per dollar against previous close of 82.80.

Market Close:

benchmark indices ended on flat note in the volatile session on February 16.

At Close, the Sensex was up 44.42 points or 0.07% at 61319.51, and the Nifty was up 20 points or 0.11% at 18,035.80. About 1814 shares have advanced, 1562 shares declined, and 154 shares are unchanged.

ONGC, Tech Mahindra, Apollo Hospitals, Divis Labs and Nestle India among the major gainers on the Nifty, while losers were BPCL, Bajaj Finance, HUL, HDFC Life and M&M.

Among sectors, information technology, metal and Realty up 1 percent each.

The BSE midcap and smallcap added nearly a percent each.

Jefferies View On Apollo Hospitals Enterprises

-Buy rating, target raised to Rs 5,375 per share
-Q3 Revenue above estimates, EBITDA in-line but profit missed on higher taxes
-EBITDA was dragged down by highest ever quarterly investments for Apollo 24/7
-Quarterly investments have peaked and will come down as per management
-Company guided for Healthco breakeven by Q4FY24 & higher hospital occupancy from 4QFY23
-FY24/25 EBITDA estimate move up by 7%/8%

Nomura View On Motherson Sumi Wiring India

-Initiate buy rating, target at Rs 62 per share
-Leadership in wiring harness, sumitomo’s high voltage expertise to aid EV share
-Premiumisation, autonomous/connected features, EVs to drive WH content
-Company to deliver 27% FY23-25 EPS CAGR; value at 35x FY25
-Expect premium valuation to sustain, given high growth visibility, expanding market share in EVs

Adani Power said to scrap USD 850 million coal plant purchase: Bloomberg

Adani Power has called off its plan to acquire a coal plant project in central India, according to people familiar with the matter, as billionaire Gautam Adani looks to rein in spending and rebuild investor confidence in the wake of a bruising short seller report.

CLSA On Prestige Estates Projects

-Buy rating, target at Rs 566 per share
-Strong presale momentum continues but margin remains elusive
-Likely to beat guidance
-Raise presale estimate, valuation remains attractive
-Company trades at a significant discount to its peers

Sanghvi Movers: CPS & APS groups decide  to withdraw all the cases

Based on the information given by the CPS Group, this is to inform you that the parties have settled their long-standing disputes by filing consent terms before the Hon'ble District Court at Pune in order to secure family peace and harmony and have agreed to withdraw all the cases, litigations and proceedings before all the Courts, forums or statutory authority which may have been filed against each other and which are pending on this day.

Accordingly, the parties have signed & executed joint consent terms recording their mutual understanding for resolution of disputes and have filed the same before Pune District Court on 13.02.2023. With this, the disputes between the families stand amicably resolved, settled and concluded.

On legal advice and in the opinion of the Board of Directors, the settlement of disputes does not have any material impact on the operations and functioning of the Company. Furthermore, the company is making the current disclosure to the Stock Exchange/Cs) by way of abundant caution.

Bharat Electronics signs MoU with Israel Aerospace Industries

Bharat Electronics has signed a MoU with Israel Aerospace Industries (IAI) for domestic manufacture and supply of its LORA Weapon System for the Indian Triservices.

The state-of-the-art strategic weapon system weapon will be manufactured by BEL, as the prime contractor, based on the workshare arrangement with IAI.

Market at 3 PM

Benchmark indices were trading higher with Nifty around 18,050.

The Sensex was up 128.42 points or 0.21% at 61,403.51, and the Nifty was up 40.50 points or 0.22% at 18,056.30.About 1773 shares have advanced, 1450 shares declined, and 136 shares are unchanged.

BSE Smallcap index up 1 percent supported by Nucleus Software, Bharat Dynamics, Oriental Hotels, SpiceJet

USFDA concludes inspection at Dishman Carbogen Amcis Switzerland manufacturing site with no major observations

Dishman Carbogen Amcis has informed that the company’s wholly owned subsidiary, CARBOGEN AMCIS AG’s manufacturing site in Bubendorf, Switzerland, has successfully completed a routine US Food and Drug Administration (FDA) inspection.

The inspection was concluded without any major or critical observations.

Brokerages positive on Apollo Hospitals despite subdued Q3

Despite reporting subdued earnings for the quarter ended December, Apollo Hospitals Enterprise has garnered optimism from various brokerages, as the management commentary suggests the possibility of a turnaround for the healthcare giant.

The weak Q3 earnings were attributed to lower margins across businesses and increased spending for Apollo 24/7. Although the company's core healthcare business was impacted by a seasonal downturn, its pharmacy vertical managed to post year-on-year growth.

However, the optimistic management commentary projecting a breakeven for Apollo Health by the second half of the next financial year resonated well with broking houses. The management also aims for a higher occupancy rate from the next quarter.

Adani Enterprises says reports of company hiring Grant Thornton for audit is a market rumour. "It would be inappropriate on our part to comment on it"

European Markets Updates

Market update at 2 PM

Sensex is up 191.26 points or 0.31% at 61466.35, while the Nifty has added 57.20 points or 0.32% at 18073.

Shilpa Medicare's Bengaluru facility registers with Ministry of Health, United Arab Emirates

Shilpa Medicare's Bengaluru facility for manufacture and testing of Orodispersible films and Transdermal systems has been successfully registered with Ministry of Health, United Arab Emirates. This registration enables company to register the products (Orodispersible films and Transdermal systems) in UAE for commercialization.

Piramal Pharma in focus

USFDA has issued an Establishment Inspection Report (EIR) for the manufacturing facility of Piramal Pharma located at Lexington (Kentucky, USA) and the inspection has now been successfully closed by the US FDA.

Jefferies View On HeidelbergCement India:

-Underperform rating, target cut to Rs 140 per share
-Reported weakest EBITDA/t driven by weak volume/realisation & higher cost
-Company’s strategy to improve realisations may be resulting in volume & realisation miss
-Company has appointed Joydeep Mukherjee as next MD
-Cut FY23/FY24 EBITDA estimate by 26%/11% to reflect weak Q3

Ugro Capital to consider fund raising on February 20

Ugro Capital said the meeting of the investment and borrowing committee of the board of directors will be held on February 20 to consider raising of funds by way of issuance of non-convertible debentures through private placement basis.

On Nifty50

Prabhudas Lilladher on PI Industries

Broking firm increase its FY23/24/25E EPS estimates by 9%/4%/4% to factor in robust 9MFY23 performance. PI Industries (PI) 3QFY23 results were better than broking house and consensus estimates with revenue/EBITDA/PAT growth of 19%/40%/58% YoY.

Favorable product mix coupled with better operating leverage resulted in overall EBITDA margin expansion of 390 bps YoY to 25.7%

Citing robust demand momentum, Prabhudas Lilladher is positive on company's 20%+ YoY revenue growth guidance with significant improvement in margins ahead, primarily led by strong enquiries in CSM business and new launches in domestic segment. It expects Revenue/PAT CAGR of 20%/ 27% (FY11-22, 20%/26%) over FY22-25E.

Maintain Buy with revised target price of Rs 4,500 (earlier Rs 4,350) based on 40xFY25 EPS.

PI Industries stock up 9%

Agrochemical company PI Industries has reported a strong Q3FY23, beating street estimates and driving a surge in its stock price. Its stock went up by more than 9 percent intraday on February 16.

The company’s consolidated net profit for the quarter stood at Rs 352 crore, up 58 percent YoY, due to an increase in operating profit resulting from a favourable product mix and operating leverage.

Consolidated Ebitda (earnings before interest, taxes, depreciation and amortisation) stood at Rs 416 crore, up 40 percent YoY, while consolidated revenue from operations was Rs 1,613 crore, up 19 percent year-on-year (YoY).

200 DMA

Tech Mahindra Large Trade | 13.60 lakh shares (0.14% equity) worth Rs 153.86 crore change hands at an average of Rs 1,131.5 per share

Market at 1 PM

Benchmark indices are trading higher with Nifty around 18,050.

The Sensex is up 159.37 points or 0.26% at 61434.46, and the Nifty is up 45.20 points or 0.25% at 18061. About 1778 shares have advanced, 1376 shares declined, and 143 shares are unchanged.

BSE Realty index up 1 percent led by Prestige Estate, DLF, Oberoi Realty

Shalby shares gain as arm gets license to market knee implants

Shares of Shalby rose on February 16 after its arm secured an import license to sell knee implants and medical devices in Indonesia.

The company's subsidiary, Shalby Global Technologies Pte Ltd, Singapore, received regulatory approval from the Ministry of Health in Indonesia, allowing it to market and sell knee implants, hip-systems, and other medical devices in the country.

Bharat Dynamics stock spikes on signing 10 MOUs at Aero India

Shares of Bharat Dynamics Limited (BDL) surged on February 16 after the company announced that it has signed ten agreements with foreign and Indian companies.

The company has been showcasing its largest-ever display of products at the Aero India-2023 event in Bengaluru, during which it signed these agreements with renowned companies like Thales, Al Tariq, and Bultexpro, along with collaborations with the Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation.

CLSA View on ONGC

-Buy rating, target at Rs 225 per share
-Earnings miss on higher exploration costs and opex
-More confidence on start of production from new project
-Assuming gas price of $6.5/mmbtu
-CMP implying brent price of USD 50/bbl vs post windfall tax realisations of USD 75-80/bbl
-ONGC has the highest dividend yield in the Asian large cap space

Biocon reports a consolidated net loss of Rs 42 crore in Q3. Here’s what analysts say

On BSE

Prestige Estates gains as global brokerages retain 'Buy', see up to 33% upside

Prestige Estates Projects was trading over 6 percent higher on February 16, a day after the real estate developer reported strong growth in revenue and net profit for the December quarter.

The company's net profit surged to Rs 127.8 crore from Rs 86.6 crore in the same period of the previous year.

Its revenue from operations came in at Rs 2,317 crore, up from Rs 1,327.5 crore in the year-ago quarter.

Citi view on SAIL 

-Overweight rating, target at Rs 100 per share
-Adjusted Q3 EBITDA fell on lower realizations, costs were lower, volumes higher
-Sequentially EBITDA rose 2.7x on lower costs
-Expect pricing/margin resilience on China’s reopening
-Remain buyers; at 0.6x P/B

Steel Authority of India was quoting at Rs 85.00, up Rs 0.85, or 1.01 percent.

MC A10 index was down 0.25 percent dragged by Adani Total Gas and Adani Transmission

Bharat Forge signs MoU with Paramount Group for Rotor Blades, Mission Systems for medium lift Helicopters

Bharat Forge and Paramount Group signed a Memorandum of Understanding (MoU) for the development and production of Composite Rotor Blades, Mission Systems and Stores Management systems for Medium Lift Helicopters at Aero India today.

Market at 12 PM

Benchmark indices were trading higher with Nifty around 18100.

The Sensex was up 285.46 points or 0.47% at 61560.55, and the Nifty was up 85.50 points or 0.47% at 18101.30. About 1824 shares have advanced, 1291 shares declined, and 139 shares are unchanged.

Nestle India Q4

Net profit up 62.4% at Rs 628 crore versus Rs 386.7 crore, YoY
Revenue up 13.8% at Rs 4,257 crore versus Rs 3,739.3 crore, YoY

Nestle India was quoting at Rs 19,550.00, up Rs 304.20, or 1.58 percent.

Nifty Metal index up 1 percent led by APL Apollo, Ratnamani Metal, NMDC

CCI approves acquisition of certain assets of Jaiprakash Associates by Dalmia Cement

The Competition Commission of India on Wednesday approved the acquisition of certain assets of Jaiprakash Associates Ltd and its associate by Dalmia Cement (Bharat) Ltd.

The proposed combination relating to acquisition of clinker, cement and power plants belonging to Jaiprakash Associates Ltd and its associate by the Dalmia Cement (Bharat) Ltd, according to an official release. Read More

On NSE

BSE Information Technology index rose 1 percent led by Tanla Platforms, Nucleus Software Exports, Ramco Systems