Closing Bell: Sensex, Nifty flat amid volatility; pharma shines, IT, PSU banks drag

Indian benchmark indices ended flat on February 13 with Nifty above 23000.At close, the Sensex was down 32.11 points or 0.04 percent at 76,138.97, and the Nifty was down 13.85 points or 0.06 percent at 23,031.40.

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.

After showing a sustainable upside bounce from the lower support of 22800 levels on Wednesday, Nifty failed to sustain the intraday gains on Thursday and closed the day lower by 13 points. After opening with a positive note, the market moved up further in the early part of the session. Nifty was not able to sustain above the hurdle of 23200 levels, it fell from the highs and closed at the lows.

A small red candle was formed on the daily chart with long upper shadow. Technically, this market action indicates a lack of strength in the upside bounce of the market.

The short-term trend of Nifty remains positive, but the market is lacking its strength to surpass immediate hurdles. A decisive move above 23250 levels could confirm near term bottom reversal pattern in the market. Immediate support is placed at 22800 levels.

As FIIs continued to maintain their sell stand, the market is beginning to get more volatile with investors booking profit in select frontliners. Weakness in select banking, auto, IT and FMCG stocks dragged key benchmark indices, which had clocked significant gains in early trades.

Markets remained volatile on the weekly expiry day, ending flat amid mixed cues. The session began on a positive note, but profit booking in select heavyweights erased early gains. As a result, the Nifty index closed nearly unchanged at 23,019.90. Sectorally, a mixed trend persisted, with pharma, metal, and realty sectors outperforming, while IT and FMCG lagged. Broader indices also experienced choppy trade, with small-caps slipping nearly half a percent.

The persistent selling pressure on rebounds suggests that bears remain firmly in control. Additionally, global uncertainties, including the risk of potential tariff wars, are likely to keep traders cautious. Given the current scenario, we recommend a stock-specific trading approach with a strong focus on risk management and wait for clarity.

Today's trade witnessed an inverted V-shaped movement in the market. The Index experienced a slight dip at the opening, but quickly surged higher to test the crucial 23,200 level. After a period of range-bound activity near this level, a sudden drop was witnessed, causing the Index to lose all its earlier gains and trade in the red, ultimately settling the trade at 23,031.40 with a loss of 13.85 points.

The Pharma and Metal sectors were the top performers, while IT and PSU Banks lagged. A notable divergence was observed in the broader market, with Midcaps holding onto their gains while Smallcaps closed in the negative.

On the daily chart, the Index formed consecutive Doji candlestick (Long Legged Doji followed by Gravestone Doji), signaling uncertainty while also defending the key levels of 23,200 on the upside and 22,800 on the downside. A decisive movement on either side is necessary for a clear direction in the market.

Despite initial market optimism driven by easing domestic inflation data, the rally lost momentum amid uncertain global cues and subdued corporate earnings.

Furthermore, a surge in Chinese technology stocks, fuelled by heightened interest in artificial intelligence, redirected FIIs in pursuit of more attractive returns.

Market participants are now closely monitoring the outcome of the Trump-Modi discussions for any trade and tariff concessions for a potential pullback rally.

Indian rupee ended flat at 86.89 per dollar on Thursday against Wednesday's close of 86.88.

Indian benchmark indices ended flat on February 13 with Nifty above 23000.

At close, the Sensex was down 32.11 points or 0.04 percent at 76,138.97, and the Nifty was down 13.85 points or 0.06 percent at 23,031.40. About 1781 shares advanced, 2010 shares declined, and 127 shares unchanged.

Tata Steel, Sun Pharma, Bajaj Finance, Cipla, Bajaj Finserv were among the top gainers on the Nifty, while losers were Adani Enterprises, Hero MotoCorp, Adani Ports, Infosys, ONGC.

Midcap index ended flat, while smallcap index shed 0.4 percent.

On the sectoral front, media, metal, pharma, realty rose 0.5-1 percent, while auto, FMCG, IT, consumer durables, PSU Bank shed 0.3-1 percent.

#1 RBI ban lifted sentimentally positive, but no material upgrade to EPS

#2 Since the Ban, Kotak’s credit card spending/loan market share declined 50 bps to 4 percent

#3 Credit cards are only 3 percent of total loans for bank

#4 RBI ban impact on overall loan growth was less than 1 percent

#5 Ban impact on Q3 EPS would have been only 2-3 percent

#6 While ban has been lifted, believe bank will add customers in a gradual, calibrated manner

#1 Another quarter of ‘over-promise & over deliverance’

#2 9MFY25 growth at 28 percent for gold AUM, surpassed even its upward revised guidance of 25 percent

#3 Managment refrained from any further upward revision to growth guidance

#4 Continued rally in gold prices will likely ensure that company delivers 30 percent+ growth in FY25

#5 Credit costs flat sequentially but remain elevated

#6 Marginal improvement in NIM

QIB – 0.32 times

NII - 0.02 times

Retail – 0.06 times

Employee Reserved - 0.16 times

Overall – 0.13 times

#1 Growth disappoints; PAT beat driven by higher NIM and forex gain

#2 FY25 growth target of 14 percent YoY looks difficult

#3 Expect credit cost to remain negative near term

#4 Credit cost to remain negative driven by write-backs from stress assets like KSK Mahanadi

#5 Reiterate outperform given lower credit risk, better growth vs previous cycle

#6 Strong ROE driven by write-backs, & inexpensive valuation (0.7x [core] FY27E P/B)

#1 RBI lifts ban on new customer onboarding (through digital channels) & issuance of credit cards

#2 Well placed for re-rating

#3 Starting point of profitability is better vs peers

#4 Potential re-acceleration in unsecured loan growth would aid bank in managing margins

v

#1 This is a positive development, could help alleviate margin pressure from recent rate cut

#2 More importantly, see this as a relief for the industry

#3 Increased regulatory intervention with severe penalties emerged as a key risk for sector

Tata.EV, With Key Charging Point Operators To Install 30,000 New Charging Points

#1 Net Profit Down 37.3% At Rs19.2 Cr Vs Rs30.6 Cr (YoY)

#2 Revenue Up 18.2% At Rs761.5 Cr Vs Rs644.2 Cr (YoY)

#3 EBITDA Down 15.2% At Rs46.4 Cr Vs Rs54.7 Cr (YoY)

#4 Margin At 6.1% Vs 8.5% (YoY)

#1 Net Profit Down 10% At Rs26.7 Cr Vs Rs29.7 Cr (YoY)

#2 Revenue Up 4.5% At Rs339 Cr Vs Rs324.5 Cr (YoY)

#3 EBITDA Up 7.5% At Rs42.7 Cr Vs Rs39.7 Cr (YoY)

#4 Margin At 12.6% Vs 12.3% (YoY)

India's passenger vehicle sales was 399,386 units in January, according to the Society of Indian Automobile Manufacturers.

#1 Local car sales were 127,065 units

#2 Local utility vehicle sales were 212,995 units

#3 Local two-wheeler sales were 1.526m units

#1 Lemon tree is driving hotel penetration into mid-market & tier-2/3 cities in India

#2 Asset-light focus allows for high FCF margin potential

#3 Company benefits from increasing demand on growing business/leisure travel & discretionary income

#4 Expect RoCE to expand from 12 percent to 24 percent

#1 RBI lifts business restrictions; unsecured segments to gather pace

#2 Expect company to roll out credit cards with aggressive marketing campaign

#3 Expect company to drive granular deposits mobilization through 811

#4 Company had already signalled its readiness by improving cross-sell

#5 Deepening existing relationships through automation of customer journeys

#6 Company has soft launched its new mobile banking app ‘embark’

#7 This development increases visibility towards targeted share of unsecured loans to mid-teens

#1 Despite subdued demand environment, management sounded confident on growth

#2 Management confident on rebuilding gross margins in coming quarters

#3 Delivery's share of revenues rose to its highest level ever, at 71.4 percent

#4 Margin below estimate, as lower gross margin outweighed lower employee & other expenses

#1 Profit zooms 58.2 percent to Rs 176.4 crore Vs Rs 111.5 crore, YoY

#2 Revenue drops 0.2 percent to Rs 3,420.8 crore Vs Rs 3,428 crore, YoY

#1 Profit drops 36.8 percent to Rs 144.8 crore Vs Rs 229.3 crore, YoY

#2 Revenue slips 0.86 percent to Rs 1,297.6 crore Vs Rs 1,308.9 crore, YoY

QIB – 0.12 times

NII - 0.02 times

Retail – 0.05 times

Employee Reserved - 0.15 times

Overall – 0.07 times

#1 Q3 operationally in-line with estimate

#2 Based on 9M show, lupin expects FY25 EBITDA margins of 23-23.5 percent

#3 Expect strong earnings trajectory led by key US launches

#4 Build in EPS CAGR of 26.5 percent over FY24-27

#5 Build-up of complex generics pipeline in US is key

Indian rupee is trading flat at 86.87 per dollar against previous close of 86.88.

#1 Management believes that bank guarantee waiver announced in Dec’24 signals continued support

#2 Clarity on debt raise & any potential relief on AGR dues will be key monitorables in coming months

#3 Network investments, meanwhile, continue to accelerate

#4 Network investments benefits of which company expects to see Q4 onwards

The Sensex was up 466.50 points or 0.61 percent at 76,637.58, and the Nifty was up 148.65 points or 0.65 percent at 23,193.90. About 2220 shares advanced, 1215 shares declined, and 96 shares unchanged.

#1 Profit sinks 88 percent to Rs 16 crore Vs Rs 131.6 crore, YoY

#2 Net interest income falls 13 percent to Rs 310 crore Vs Rs 354.4 crore, YoY

#1 Profit slips 17.1 percent to Rs 109.5 crore Vs Rs 132.2 crore, YoY

#2 Revenue grows 15 percent to Rs 1,256.1 crore Vs Rs 1,091.9 crore, YoY

#1 Q3 ahead of estimate with strong growth in realisations driving a healthy margin expansion

#2 Management noted that positive mix shift & cost reduction initiatives buoyed EBITDA margin

#3 Outlook is positive

#4 Q4 industry volumes should be higher YoY

#5 FY26 volume growth is also expected to be positive, aided by macro tailwinds

#1 Chalet's businesses benefit from increased business demand & shortage of inventory

#2 Expect accelerated top-line growth & ops leverage to drive 20/23 percent revenue/EBITDA CAGRs

Hindalco Industries, Ipca Laboratories, Afcons Infrastructure, Allcargo Logistics, Ansal Housing, Concord Biotech, Deepak Nitrite, Godfrey Phillips, HealthCare Global Enterprises, Indo Farm Equipment, Manappuram Finance, Radiant Cash Management Services, R Systems International, Senco Gold, SJVN, Texmo Pipes & Products, and United Breweries will announce its quarterly earnings on February 13.

QIB – 0.04 times

NII - 0.02 times

Retail – 0.05 times

Employee Reserved - 0.14 times

Overall – 0.04 times

#1 Q3 EBITDA lower than estimate

#2 See an uptick in US class 8 cycle & strong growth in non-auto business verticals (aerospace/casting)

#3 Narrowing losses of international subsidiaries & possible domestic ATAGS order keep us overweight

#4 Stock trades at FY27 PE of 25x against 10-year median of 29x

#1 Profit sinks 46 percent to Rs 17.5 crore Vs Rs 32.4 crore, YoY

#2 Revenue grows 15.2 percent to Rs 543.2 crore Vs Rs 471.7 crore, YoY

#1 Profit rises 10.7 percent to Rs 87.04 crore Vs Rs 78.6 crore, YoY

#2 Revenue increases 11.3 percent to Rs 2,244.9 crore Vs Rs 2,017.2 crore, YoY

The Reserve Bank of India (RBI) has extended the validity of authorization issued to Vakrangee to set up, own, and operate White Label ATMs in India, until March 31, 2026. Vakrangee currently has 6,035 White Label ATMs as of January 2025.

#1 Q3 decent, in-line with expectations

#2 New product launches, brand building initiatives & cost optimisation set to drive profitable growth

#3 Expect company to post a 25 percent EPS CAGR over FY25-27 driven by 13 percent rev growth

#4 CAGR driven by 170 bps YoY EBITDA margin expansion

#5 Crompton trades at a 25x PE multiple on FY27 cons EPS estimate

#1 Profit spikes 76.9 percent to Rs 188.2 crore Vs Rs 106.4 crore, YoY

#2 Revenue jumps 34.4 percent to Rs 4,824.8 crore Vs Rs 3,590 crore, YoY

#1 PAT up 81.57 percent at Rs 144.95 lakh, YoY

#2 Total revenues in Q3 at Rs. 4153.68 Lakh, up 10.44%, YoY

#1 Energy segment healthy; short cycle weakness impacted ex-energy P&L

#2 Topline/EBITDA/recurring PAT (including energy business) grew 4 percent/10 percent/7 percent YoY

#3 Ex-energy, orders stood strong at Rs 4,260 crore (up 20 percent YoY)

#4 While company didn’t reported order intake for energy business

#5 Ex-energy business reported sales/EBITDA/PAT was a decline of 3 percent/12 percent/10 percent YoY

The company has received work orders worth Rs 123.13 crore from the State Project Director (SPD) Bihar Education Project Council (BEPC), and an additional Rs 14.71 crore work order from Airports Authority of India Chennai.

Adani Green Energy has withdrawn from building two wind power projects in Sri Lanka after the new government sought lower tariffs last month.

#1 Profit tanks 32.8 percent to Rs 33.2 crore Vs Rs 49.4 crore, YoY

#2 Revenue declines 18.4 percent to Rs 312.7 crore Vs Rs 383.4 crore, YoY

#1 Profit soars 21.1 percent to Rs 184.4 crore Vs Rs 152.3 crore, YoY

#2 Revenue rises 11.6 percent to Rs 2,859.2 crore Vs Rs 2,561.1 crore, YoY

#1 RBI withdraws supervisory action against Kotak

#2 Withdrawal of the ban to provide improvement in growth & cushion to margins

#3 Factor highest core earnings growth for company vs other large private sector peers in FY26

#4 Add to this current valuation at 1.7x FY27E P/B (standalone) provide a favourable risk-reward

ONGC NTPC Green (ONGPL), a 50:50 joint venture between ONGC Green and NTPC Green Energy, has signed a Share Purchase Agreement (SPA) with the National Investment and Infrastructure Fund (NIIF), BII South Asia Renewables, British International Investment Plc (BII), and Eversource Capital to acquire a 100% equity stake in Ayana Renewable Power for Rs 19,500 crore ($2.3 billion).

#1 Channel checks indicate credit card slippages are plateauing

#2 Expect credit costs to start declining materially in next two quarters

#3 Other catalysts include falling rates, easing liquidity, tax cuts

#4 Catalysts include RBI's incrementally softer stance towards unsecured loans

#5 We cut our earnings by 13-15 percent for FY25-27 driven by slower loan growth, NII & fees

#6 Reduce our sustainable credit costs resulting in increase in sustainable RoA by 30 bps to 4.5 percent