Closing Bell: Nifty flat, Sensex up 165 points; IT gains, realty top drag

Indian equity indices ended higher in the volatile session on March 12. At close, the Sensex was up 165.32 points or 0.22 percent at 73,667.96, and the Nifty was up 3.00 points or 0.01 percent at 22,335.70.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/ for all the global market action.

The yen dropped against the dollar on Tuesday as the latest comments from Japanese officials dampened bets that the Bank of Japan could scrap its negative interest rate policy.

Elsewhere, the greenback rose slightly ahead of a key reading on U.S. inflation that will provide further clues on how soon the Federal Reserve could commence its rate easing cycle.

The yen was last 0.25% lower at 147.26 per dollar, its biggest daily fall since March 4.

BOJ Governor Kazuo Ueda offered a slightly bleaker assessment of the country's economy than he had in January, while Finance Minister Shunichi Suzuki said Japan was not at a stage where it could declare deflation as beaten. Their remarks come ahead of the BOJ's policy meeting next week.

Stock Market LIVE Updates | InCred View On Cement

-Cement prices continue to trend downwards
-Upcoming elections & market share fight to keep near-term prices soft
-Earnings cut seems unavoidable in 4QFY24 for most cement companies
-Those having a low-cost fuel inventory & operating leverage benefits may avoid earnings cut
-Long-term thesis remains intact, continue to prefer large plays 

-Buy call, target raised to Rs 1,560 from Rs 1,370 per share
-Robust throughput growth continued in Feb 2024
-Company is on track to beat its 400 mmt target for FY24
-Raise EBITDA forecasts by 1-4 percent for FY24-26, implying 19 percent CAGR
-Expect A 19 percent CAGR in ADSEZ’s EBITDA in FY23-26
-Expect ROIC to rise from 10 percent in FY23 to 16 percent in FY26

Sensex Today | BSE Capital Goods index down 0.5 percent dragged by Elgi Equipments, BHEL, Bharat Electronics

Indian Rupee declined marginally by 0.01% on Tuesday on positive US Dollar and recovery in crude oil prices. However, positive domestic markets and FII inflows over the past three sessions supported Rupee at lower levels. US Dollar gained ahead of inflation data from US.

We expect Rupee to trade with a slight negative bias on recovery in the greenback and concerns over elevated crude oil prices. However, positive tone in domestic markets may support Rupee at lower levels. Traders may take cues from India’s CPI and IIP data. Market participants may remain cautious ahead of inflation and budget deficit data from US. USDINR spot price is expected to trade in a range of Rs 82.50 to Rs 83.

Sensex Today | Market at 3 PM

The Sensex was up 137.15 points or 0.19 percent at 73,639.79, and the Nifty was down 7.10 points or 0.03 percent at 22,325.60. About 500 shares advanced, 2880 shares declined, and 58 shares unchanged.

-Buy call, target raised to Rs 200 per share
-Advertising revenues will remain cornerstone of quickcommerce business in long term
-Expect digital spend share to increase in India
-Expect Blinkit ad revenues to be 3 percent of total digital ad-spend of India in 5 years

Sensex Today | Nifty Pharma index shed 1 percent dragged by Biocon, Cipla, Alkem Lab

Stock Market LIVE Updates | Nifty Smallcap index sheds 10% from its peak with over 30 stocks clocking double-digit losses

Sanghi Industries' promoter Ambuja Cements intends to offload 2 percent stake in the company to comply with SEBI's minimum public shareholding norms. Th stake sale will start from March 13, 2024 and go on till February 6, 2025.

NCLAT Clarifies On Transfer Of Ownership Dispute Between Lenders, Jalan Kalrock
NCLAT Upholds Transfer Of Ownership To Successful Resolution Applicant JKC
NCLAT Dismisses Lenders Plea That Had Challenged Transfer Of Ownership To JKC
Lenders Claimed That JKC Failed To Infuse Funds Into Airline As Per The Resolution Plan
NCLAT Appeals To Lenders, JKC To Make A Resolution A Success
NCLAT Directs For Employee Dues To Be Paid Out Of `350 Cr Infused By JKC In First Tranche

-Industrial/power stocks have rallied in the last 1-3 years
-Believe investors should look at previous upcycle multiples vs 2010 onwards downcycle period
-Nifty PE is trading at a 35 percent premium & PB at some discount to April 2006-08 multiples
-This period reflects last capex upcycle peak
-Similar difference for L&T, NTPC, Power Grid points to further re-rating potential
-Neutral for Siemens; ABB shows downside, but the business model has changed

Sensex Today | Nifty PSU Bank index shed 2 percent dragged by Indian Bank, J&K Bank, UCO Bank

A move by regulators towards same-day settlement, or T+0, in the Indian stock market represents a significant advancement towards enhancing the market's dynamism and efficiency. This initiative, aimed at aligning with global financial market standards, is under exploration and holds the promise of bringing about instantaneous trade settlements.

Such a transition is believed to offer numerous benefits, notably in the reduction of counterparty risk and the bolstering of market efficiency through the swift exchange of funds and securities between buyers and sellers. Furthermore, it is anticipated to substantially lower operational expenses for market participants and reduce the funding costs that brokers face.

Despite these advantages, the shift towards a T+0 settlement cycle is not without its challenges. Implementing this change would necessitate a comprehensive overhaul of the current market infrastructure, systems, and processes, entailing complex and potentially costly modifications to be made promptly.

Additionally, there is a concern that a shorter settlement cycle might contribute to an increase in market volatility. In essence, while the proposed move towards a T+0 settlement cycle stands to significantly benefit the Indian stock market by enhancing its efficiency and reducing risks and costs, it also demands careful consideration of the complexities and potential drawbacks involved in its implementation.

Sensex Today | BSE Healthcare index down 1 percent dragged by Themis Medicare, Kopran, Medicamen Biotech

The company has been awarded a Contract from Maaden, Saudi Arabia, one of the biggest mining companies for setting up of Water Treatment Plant including Demineralization plant at a contract value of Rs 120 crores approx. The project is to be completed within 1 year from the date of Letter of Acceptance.

Sensex Today | Market at 2 PM

The Sensex was up 313.37 points or 0.43 percent at 73,816.01, and the Nifty was up 46.10 points or 0.21 percent at 22,378.80. About 527 shares advanced, 2842 shares declined, and 51 shares unchanged.

Sensex Today | Nifty Bank index erased all the losses and trading in green, recovers 500 pts

Stock Market LIVE Updates | HSBC On Power Sector

-Recent bid for GUVNL energy storage tender indicates halving of costs since August 22, implied tariff of Rs 3.7/Kwh
-This makes renewable energy more predictable, reliable and competitive with thermal
-Believe this has potential to increase acceptability of RE as its share in generation increases
 

Stock Market LIVE Updates | Morgan Stanley View On Gas Sector

-Expect gas market oversupply to reach multi-decade highs over the coming years
-It will inflect demand especially in India & Southeast Asia
-It will save USD 10 billion in energy costs through 2030
-Energy consumption rewiring will be back in favour of gas for the region
-Overweight on Gail, target raised to Rs 213 per share
 

-Buy call, target Rs 3,400 per share
-Investors indicate concerns around execution challenges, slowing subscriber additions, saas investments
-However, investors agreed with company’s structural growth potential and moats
-Paid subscribers additions to pick up from 3,000/quarter in FY24E to 6,000/ quarter in FY25E
-Paid subscribers additions pick-up which should support valuations
-Expect company to deliver strong 19 percent/25 percent revenue/EPS CAGR over FY24-26

-Buy call, target raised to Rs 225 per share
-Proposes to merge its wholly owned NBFC subsidiary, ABFL with itself
-If approved, scheme will simplify corporate structure and will resolve the issue of mandatory listing of ABFL by Sept '25
-Merger lifts CRAR by 150 bps
-Company may have to trim its stake in ABSLI (51 percent) to comply with 50 percent cap on holding
-Removal of holding company discount on ABFL lifts SOTP valuation by 12 percent

KNR Constructions received Letter of Acceptance for Water supply projects in 26 ULBs and Sewerage Projects in 04 ULBs under AMRUT 2.0 under the Jurisdiction of (Nalgonda and Khammam PH Divisions) in Package – II from MA & UD – PHMED- Government of Telangana in the State of Telangana worth Rs 1163 crore excluding GST.

Allcargo Terminals’ CFS volumes for the month ended February 2024 stood at 50.5 ‘000 TEUs, recording an increase of 11% as compared to February 2023 and an increase of 5% as compared to January 2024.

Volume growth in February 2024 has come on the back of stronger growth in exports and continued sales acceleration initiatives.

Tata Power Solar Systems Limited (TPSSL), a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), has successfully commissioned Solar and Battery Energy Storage Systems (BESS) project that comprises 100 MW Solar PV Project coupled with 120 MWh Utility Scale Battery Energy Storage System (BESS), at Rajnandgaon in Chhattisgarh.

Being the largest zinc oxide manufacturer enjoying monopoly in the business received decent subscription demand in these subdued market conditions from all sets of investors on the last of the IPO process, we expect a flat to muted listing to its issue price of 221/- apiece.

Considering down casting market mood and selling pressure in the Mid & small cap sector a flat to muted listing can be justified.

Given the company's strong market position, diversified client base and strategic growth initiatives, we believe JG Chemicals Ltd continues to solidify its pivotal position in the zinc oxide market. Hence, considering all the parameters we recommend conservative investors to “Book Profit” on the listing day and while those investors who wish to add can wait and watch the space post listing performance before taking any action.

Tata Investment Corporation has appointed Savitha Narayanan as Chief Technology Officer, and reappointed Ankan Mondal at Chief Risk Officer with effect from April 1, 2024. Further, Jenniefer Samuel has been appointed as Head of Internal Audit, after resignation of Kersi Bhagat.

Jubilant Ingrevia has partnered with O2 Renewable Energy XVIII Private Limited (‘O2 Renewable’, a group company of O2 Power SG PTE. LTD, Singapore), a leading renewable energy developer. This partnership marks a significant step for the Company towards establishing renewable energy power generation using hybrid open excess through solar and wind sources.

It aims to access renewable energy through a captive arrangement, fulfilling the Company's power requirements and meeting its increasing demand from green energy to power its manufacturing facilities at Gajraula, Uttar Pradesh and Savli, Gujarat.

Sensex Today | Nifty Information Technology index gained 0.7 percent led by TCS, LTIMindtree, Infosys

Pitti Engineering has signed an agreement with Bagadia Chaitra Industries (BCIPL) and its shareholders to acquire 100% shareholding in Bagadia Chaitra Industries at an enterprise valuation of Rs 124.92 crore. Pitti will infuse upto Rs 40 crore as funding into Bagadia Chaitra Industries, on closing date, to repay the existing debt in BCIPL.

Sensex Today | Market at 1 PM

The Sensex was up 218.90 points or 0.30 percent at 73,721.54, and the Nifty was up 18.30 points or 0.08 percent at 22,351.00. About 506 shares advanced, 2840 shares declined, and 54 shares unchanged.

Shares of SpiceJet crashed 10 percent intraday on March 12 after reports suggested that the Chief Operating Officer (COO) Arun Kashyap and Chief Commercial Officer (CCO) Shilpa Bhatia have tendered their resignation.

Commenting on this development, the management said that this was a part of SpiceJet's strategic restructuring and the company continues to see significant growth in revenue and load factor.

"With the recent fund raise, SpiceJet has speeded up the process of resolution of all past disputes. The Company looks forward to adding capacity, growing rapidly and continuing to play a large role in the Indian aviation sector," they added. Read More

Sensex Today | BSE Power index shed 1 percent dragged by Suzlon Energy, BHEL, NTPC

Airtel Payments Bank today announced the appointment of Anuj Bansal as its Chief Financial Officer.

Anuj will be responsible for overall financial strategy, including corporate financial planning, budgeting, supply chain, and treasury management. He will be a part of the Bank’s Executive Committee and will be working closely with Anubrata Biswas, MD and CEO of Airtel Payments Bank.

NSE to cut cash, Derivative transaction charges by 1%: Bloomberg

Jupiter Wagons has secured a contract worth Rs 957 crore from the Ministry of Railways for the manufacturing and supply of BOSM wagons.

Pitti Engineering has signed an agreement with Bagadia Chaitra Industries (BCIPL) and its shareholders to acquire 100% shareholding in Bagadia Chaitra Industries at an enterprise valuation of Rs 124.92 crore. Pitti will infuse upto Rs 40 crore as funding into Bagadia Chaitra Industries, on closing date, to repay the existing debt in BCIPL.

Sensex Today | BSE Realty index slipped 3.6 percent dragged by Swan Energy, Prestige Estate, Godrej Properties

Sensex Today | BSE PSU Index fell 1 percent dragged by Indian Bank, NLC India, SJVN

-Equal-weight call, target Rs 196 per share
-A non-operating holdco announced a reverse merger of its NBFC subsidiary with itself
-Tangible economic benefit is not material, in our view
-It may lower holdco discount that could follow if NBFC were to list by September 25
-RBI approval is key

Landmark Cars has received an Expression of Interest from MercedesBenz India for opening a workshop in the Eastern part of Mumbai, Maharashtra.

Mahindra and Mahindra's production in February grew by 26.07% year-on-year to 73,380 units and sales increased by 26.2% to 71,384 Units, but exports fell 31.6% to 1,539 units compared to year-ago month.

Patel Ashaben Vishnukumar, the part of promoter group, sold 7 lakh equity shares (2.85% of paid up equity) in the event & exhibition management company at an average price of Rs 850.51 per share, however, Goldman Sachs Funds - Goldman Sachs India Equity Portfolio purchased 5,34,171 equity shares (2.18% stake) at an average price of Rs 850 per share.

Sensex Today | BSE Midcap index down 1 percent dragged by SJVN, Indian Bank, UCO Bank

The enhanced investments in technology and marketing, as well as tight control on overhead costs, are likely to bear fruits in the long run.

Broking house believe, company has the capability to revive its revenue growth trajectory given its strong brand recall & distribution reach and strong balance sheet.

The company currently trades at 49x 1Yr Fwd P/E. Considering the continued weakness in demand, downgrade rating to Accumulate (from BUY) with a revised target price of Rs 1,670, valuing stock at 47x on FY26E EPS.

Urban Enviro Waste Management has received Work Order from Municipal Council Umred for the three financial years 2024-25, 2025-26 and 2026-27, to collect wet, dry, sanitary and hazardous waste from all households and commercial shops in the market area of Nagar Parishad Umred limits and deliver it to the solid waste disposal center and the work of classifying the waste and making compost from degradable waste and disposing of non-degradable waste in accordance with the Solid Waste Management and Handling Rules 2016. The work order is of worth Rs 7,42,81,310.

BSE has announced the latest rejig of its indices with additions and removal in around 17 indices. These changes will be in place from March 18. As per the release, no changes will be made in the S&P BSE Bharat 22 Index, S&P BSE REIT & InvIT Index (INR), S&P BSE Telecommunication and S&P BSE Private Banks Index. The recently listed Honasa Consumer has been added to the S&P BSE Fast Moving Consumer Goods Index along with Doms Industries, Flair Writing Industries, HMA Agro Industries, ML Proteins and Gulshan Polytols. READ MORE

Industrial and power stocks have seen a rally over the past one to three years, said international brokerage Jefferies. Investors should look at the previous upcycle multiples along with the 2010 downcycle period. Currently, the frontline index Nifty 50's PE is trading at a 35 percent premium to 2006-2008 multiples. However, the PB ratio is at some discount. READ MORE

Sensex Today | Market at 11 AM

The Sensex was up 170.81 points or 0.23 percent at 73,673.45, and the Nifty was up 17.80 points or 0.08 percent at 22,350.50. About 627 shares advanced, 2619 shares declined, and 57 shares unchanged.

HIL has received board approval for the acquisition of 100% shareholding in Crestia Polytech along with four other entities namely Topline Industries, Aditya Polytechnic, Sainath Polymers, and Aditya Industries, for Rs 265 crore on cash free and debt free basis. This acquisition will strengthen the company's pipes and fittings business in Eastern India.

Sensex Today | BSE Smallcap index fell more than 1 percent dragged by Swan Energy, Lancer Containers Lines, Sigachi Industries