Closing Bell: Nifty at 22,100, Sensex gains 760 pts; IT, oil & gas shine

Indian rupee ended marginally higher at 82.88 per dollar versus previous close of 82.92.

: Benchmark indices ended higher for the fifth consecutive session on January 15 with Nifty at 21,100.

The Sensex was up 759.49 points or 1.05 percent at 73,327.94, and the Nifty was up 203.00 points or 0.93 percent at 22,097.50. About 1787 shares advanced, 1609 shares declined, and 78 shares unchanged.

Wipro, ONGC, HCL Technologies, Infosys and Bharti Airtel were among the top gainers on the Nifty, while losers included HDFC Life, Bajaj Finance, Bajaj Finserv, Hindalco Industries and Eicher Motors.

Among sectors, except metal all other sectoral indices ended in the green with the Information Technology, PSU Bank, Oil & Gas up 1 percent each.

Broader indices touched their fresh highs during the session before closing with marginal gains.

-Overweight call, target Rs 780 per share
-Q3FY24 was a weak quarter
-Execution and manageable outcomes on regulatory proposals will be key
-VNB of Rs 865 crore, -2 percent YoY a miss versus consensus was optical
-VNB was 3 percent higher than recently lowered forecast of Rs 830 crore from Rs 910 crore

Indian Rupee gained to a three and half month high as domestic markets touched fresh all-time highs today along with a weak US Dollar. However, rupee lost early gains as WPI rose 0.73% y-o-y in December 2023 vs 0.26% in the previous month, but lower than forecast of 0.9%. Friday’s retail inflation too rose 5.69% in December 2023 compared to 5.55% in November 2023 but lower than forecast of 5.87%. India’s industrial production increased by to 2.4% in November 2023 compared to 11.7% in October 2023. US Dollar eased on rate hike expectations in the markets and positive global markets.

We expect Rupee to trade with a slight positive bias on weak US Dollar and positive global markets. Expectations of fresh inflows from foreign investors may also support Rupee. However, surge in global crude oil prices and escalation of geopolitical tensions in the Middle East may cap sharp gains. Traders may remain cautious ahead of India’s trade balance data. USDINR spot price is expected to trade in a range of Rs 82.50 to Rs 83.20.

The Nova Agritech IPO is set to be opening for subscription on January 22 and the bidding for the issue will close on January 24. The price band is expected to be announced in coming days.

The anchor book of the issue will be opened for a day on January 19, a day prior to the IPO opening.

The IPO is a mix of a fresh issuance of shares worth Rs 112 crore, and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao.

Nutalapati Venkatasubbarao, the only public shareholder in the agri-input manufacturer, will be exiting the company by selling entire personal shareholding in the OFS.

Sensex Today | BSE Oil & Gas index up 1.5 percent led by ONGC, Reliance Industries, Indian Oil Corporation:

-Market perform, target Rs 1,640 per share
-Company delivered a strong quarter with sharp beat on revenues & margins
-Overall revenue was at USD 3,415 m, up 6.0 percent QoQ, 5.2 percent organic
-Company’s software led the beat up 32 percent QoQ while services grew 3.1 percent QoQ
-EBIT margin was 19.8 percent, up 130 bps QoQ
-Net new deals TCV was soft at USD 1,927 m
-Company narrowed its overall growth guidance to 5-5.5 percent YoY, versus 5-6 percent YoY
-Services business expected to grow at a similar level in Q4
-EBIT margin guidance was maintained between 18 percent to 19 percent

-Buy call, target Rs 1,900 per share
-Company is the top pick for 2024
-Company has been delivering consistent performance
-Both asset quality and return ratios for the company improving steadily
-Bank is well poised to report further improvement in operating performance
-Key vectors like credit cost, margins & opex continue to move in right direction
-Steady loan growth of 19 percent CAGR over FY24-26
-A more favorable asset mix toward retail will continue to support margins
-Bank aims to improve upon its CASA mix to >45 percent
-Bank aims at increasing the mix of retail deposits to 45-50 percent of overall deposits
-Estimate company to report 22 percent earnings CAGR over FY24-26, resulting in a RoA/RoE of 2.0 percent/17.3 percent

Considering bullish sentiments in the markets touching fresh life time high along with overwhelming response received from all sets of investors on the last day of subscription, Jyoti CNC signals decent listing gain of 15% on its issue price.

The listing premium is justified on the back of strong order book from aerospace and defence given healthy visibility on topline as well as bottom line and growing demand in the CNC machine industry.

We also like the primary objective of the IPO which is for reducing the debt helping the company to come out of interest burdens leading to improve the bottom lines in coming years. Considering all the factors, we recommend allotted investors to HOLD for Long term. For non allottees one can wait and watch for any dips post listing to accumulate and look to hold for a long term like 3-5 years’ time horizon.

Pidilite Industries has partnered with Italy-based Syn-Bios, known for R&D and global marketing in the leather tanning industry.

In this collaboration, Pidilite Industries Limited will handle sales and distribution of Syn-Bios products in India, Sri Lanka, Bangladesh, Nepal, and Vietnam. Both companies will also engage in technical collaboration to offer comprehensive solutions for the Leather Industry.

The company's Q3 net profit rose 50% at Rs 3 crore versus Rs 2 crore and income from services down 13.9% at 14.9 crore versus Rs 17.3 crore, YoY.

HSCC (India) Limited, a wholly owned Subsidiary of NBCC (India) Limited has been awarded the work of project Management Consultancy, including statutory approvals and supervisory consultancy for setting up Central Research Institute of Yoga & Naturopathy (CRIYAN) of CCRYN with 100 bedded Hospital at Dibrugarh (Assam) has been entrusted to M/s HSCC (India) Limited.

-Overweight call, target Rs 1,305 per share
-Company announced acquisitions of organic India and Capital Foods
-Estimate organic India and Capital Foods acquisition will increase company’s India branded F&B Revenue
-India branded F&B revenue share to rise 71 percent by F26 & 63 percent in FY23
-Share of emerging high-growth biz in domestic biz will rise to 33 percent by FY26
-Management expects transaction to be EPS breakeven in second year of operations

- Core operating revenue up 25% YoY

- Sales volume of compost is softer than expected

- Compost sales volume soft on lower fertiliser offtake in Gujarat & Maharashtra

Medi Assist Healthcare IPO has been subscribed 28 percent so far on January 15, the first day of bidding, receiving bids for 54.58 lakh shares against the issue size of 1.96 crore shares.

The retail portion has been booked 50 percent and high net worth individuals (HNI) bought 13 percent of the allotted quota.

The price band for the issue, which will close on January 17 has been fixed at Rs 397-418 per share. The Rs 1,171.58 crore issue is entirely an offer-for-sale of 2.8 crore shares.

Consolidated net profit rose 23% at Rs 6.1 crore against Rs 5 crore and revenue up 12% at Rs 183 crore versus Rs 74 crore, YoY.

Fitch Ratings has assigned India-based Shriram Finance Limited's (SFL, BB/Stable) proposed US dollar-denominated senior secured bonds an expected rating of 'BB(EXP)'. The final rating is subject to the receipt of final documentation conforming to information already received.

The proposed bonds will carry a fixed-rate coupon payable semi-annually and will be secured by a fixed charge over specified accounts receivable, in line with SFL's domestic secured bonds. They are also subject to maintenance covenants that require SFL to meet regulatory capital requirements at all times, maintain a net stage 3 asset ratio equal to or less than 7%, and ensure its security coverage ratio is equal to or greater than 1x at all times.

Sensex Today | Nifty PSU Bank index up 1 percent supported by Bank of Maharashtra, Jammu & Kashmir Bank, Union Bank of India:

-Buy call, target cut to Rs 760 per share
-FY24 a washout year for the company
-Company reported growth moderation in Q3FY24, with its individual/total APE declining 4 percent/7 percent YoY
-VNB declined 3 percent YoY, lower than the APE decline
-VNB decline lead to expansion in VNB margins by 40/50 bps YoY/QoQ to 26.9 percent in Q3FY24
-In 9MFY24, total APE/VNB growth stood at 5 percent YoY

Net profit up 52.6 percent at Rs 148 crore vs Rs 97 crore and revenue up 21.5 percent at Rs 1,656.8 crore vs Rs 1,363.3 crore, YoY.

-Overweight call, target Rs 4,471 per share
-Top-line growth moderated but gross & EBITDA margins slightly above our estimates
-Contribution from general merchandise, apparel stabilised & trends encouraging post-Diwali
-Network expansion remains a key monitorable

Sensex Today | Market at 2 PM

The Sensex was up 652.67 points or 0.90 percent at 73,221.12, and the Nifty was up 171.80 points or 0.78 percent at 22,066.30. About 1817 shares advanced, 1547 shares declined, and 86 shares unchanged. 

Tata Consumer Products traded in the red as the FMCG company signed a definitive agreements to acquire a 100 percent stake in Capital Foods, the owner of Ching’s Secret and Smith & Jones, and Organic India in a phased manner.

The enterprise value on a "no cash/no debt basis" for 100 percent of Capital Foods is Rs 5,100 crore. While 75 percent of the equity shareholding will be acquired upfront, the remaining 25 percent will be acquired within the next three years. Read More

-Underweight call, target raised to Rs 460 per share
-Initial signs of change in business mix but too early to call a trend
-Improving revenue growth trends & management commentary driving higher EPS estimate
-Maintain relative underweight on account of lower visibility on FY25 versus peers
-Maintain relative underweight on account of less favorable relative valuations

Sensex Today | BSE Realty index up 0.5 percent led by Oberoi Realty, Godrej Properties, Prestige Estate:

Anant Raj has received approval from the its Finance and Investment Committee for the opening of qualified institutions placement (QIP) issue on January 12. The floor price has been set at Rs 310.78 per share.

Medi Assist Healthcare IPO has been subscribed 28 percent so far on January 15, the first day of bidding, receiving bids for 54.58 lakh shares against the issue size of 1.96 crore shares.

The retail portion has been booked 50 percent and high net worth individuals (HNI) bought 13 percent of the allotted quota.

The price band for the issue, which will close on January 17 has been fixed at Rs 397-418 per share. The Rs 1,171.58 crore issue is entirely an offer-for-sale of 2.8 crore shares.

Sensex Today | BSE Midcap index up 0.6 percent led by SJVN, Aurobindo Pharma, Oracle Financial Services Software:

eMudhra received approval from the Fund Raising Committee for the opening of the qualified institutions placement (QIP) issue on January 12. The floor price has been set at Rs 443.56 per share. As per CNBC-TV18 quoting sources, the QIP issue size may be at around Rs 200 crore.

Alkem Laboratories has reported a cyber security incident which compromised business email IDs of certain employees at a subsidiary. The incident resulted in a fraudulent transfer of funds of approximately Rs 52 crore. The company has taken all necessary steps and filed necessary complaints with concerned governmental and regulatory authorities in this matter.

Usha Martin's board members have appointed Manish Kumar Jain as Senior Vice President- Engineering of the company effective January 13. Prior to joining Usha Martin, with over 33 years of experience, he has worked with Rungta Mines, Tata Steel Long Products, Jindal Steel & Power, Bhushan Power & Steel etc.

WPI inflation inched higher continuing in the positive territory for the second consecutive month in December. While both fuel and power and manufactured products categories continued in deflation, an uptick in wholesale food inflation led the overall print higher.

On a sequential basis there was a broad-based contraction across categories, including food. Despite fading of supportive base, the WPI inflation is expected to remain range bound around 1% for the remainder of this fiscal with continued easing in global commodity prices.

However, uncertainty surrounding Kharif harvest, progress of Rabi sowing, geopolitical tensions in the middle-east, and global growth dynamics remain key monitorables.

Vikas Lifecare's subsidiary Genesis Gas Solutions has accomplished the incorporation of IGL Genesis Technologies, the joint venture company, with Indraprastha Gas (IGL). IGL holds 51% stake and Genesis Gas 49% in the joint venture company.

Genesis Gas Solutions has completed the inducement of its share of the paid-up capital amounting Rs 18.1 crore in the newly incorporated entity.

Nippon India Mutual Fund has bought 3.3 lakh equity shares in Gillette India via open market transactions at an average price of Rs 6,755 per share, amounting to Rs 222.91 crore. However, corporate firm Adventz Finance sold 6 lakh shares (1.84% of paid-up equity) in the company at an average price of Rs 6,757.60 per share, which were valued at Rs 405.5 crore. Adventz held 3.41% shares in the company.

Lexdale International, the asset management firm, has sold 2,62,37,880 equity shares in the FSN E-Commerce Ventures via open market transactions. These shares were sold at an average price of Rs 188.83 per share, valued at Rs 495.4 crore.

Sensex Today | Nifty Bank index up 0.9 percent supported by HDFC Bank, Federal Bank, State Bank of India:

Allcargo Gati said total volume, including surface and air express, stood at 105kt for December 2023, recording an increase of 7% compared to December 2022. In comparison to November 2023 volumes increased by 6%. Volume growth has come despite a high base last year.

Sensex Today | Market at 1 PM

The Sensex was up 616.75 points or 0.85 percent at 73,185.20, and the Nifty was up 165.80 points or 0.76 percent at 22,060.30. About 1797 shares advanced, 1548 shares declined, and 89 shares unchanged. 

IndusInd Bank has been delivering consistent performance with both asset quality and return ratios improving steadily. The bank is well poised to report further improvement in operating performance as all key vectors (credit cost, margins & opex) continue to move in the right direction unlike most other banks.

The steady loan growth and a more favorable asset mix toward retail will continue to support margins, especially with the shift in the interest rate cycle.

Asset quality ratios have improved while continued moderation in slippages, dissolution of restructured assets and additional contingency buffer of 0.5% of loans provides further comfort.

The bank is well capitalized with CET-1 of 16.3% and any further capital infusion by promoters to increase the stake in the bank would further aid capitalization levels.

Broking house estimate the bank to report 22% earnings CAGR over FY24-26, resulting in a RoA/RoE of 2.0%/17.3%.

The company remains preferred buy in the sector and we reiterate buy rating with a Target Price of Rs 1,900 (premised on 1.9x Sep’25E ABV).

-Downgrade to underperform from outperform, target raised to Rs 1,536 per share
-Bunching up of multiple catalysts leads to a strong beat
-Company cut top end of its FY24 revenue guidance by 50 bps to 5-5.5 percent
-Guidance cut is on absence of revival of discretionary demand
-Company maintained EBIT margin guidance at 18-19 percent
-See weak sequential growth during Q4FY24/Q1FY25
-Average stock return over past five years has been flat

Goodluck India has received the board approval for the opening of qualified institutions placement (QIP) issue on January 12. The floor price has been set at Rs 989.40 per share.

Hampton Sky Realty has received all the approvals to start construction of the hospital project under name of Hampton Narayana Superspeciality Hospital. The company is starting construction in the current week with a projected investment of Rs 200 crore.

Aditya Birla Money has registered net profit at Rs 15.15 crore for quarter ended December FY24, growing 73.6% over a year-ago period. Revenue from operations grew by 51.5% to Rs 101.3 crore during the same period.

Foreign portfolio investor Leading Light Fund VCC - The Triumph Fund sold 3.26 lakh equity shares, equivalent to 0.75% of paid-up equity in Valiant Laboratories at an average price of Rs 176.16 per share.

Promoter Pristine Malwa Logistics Park has sold 6 lakh shares (which is equivalent to 0.9% of paid-up equity) in Sical Logistics at an average price of Rs 270.55 per share.

However, Mumbai-based Negen Capital Services was the buyer in the block deal. The National Company Law Tribunal had approved the resolution plan submitted by Pristine Malwa Logistics Park for buying Sical Logistics in December 2022 and accordingly the shares of Sical were allotted to Pristine Malwa Logistics in February 2023.

Pune-based biotechnology company Serum Institute of India sold 3.75 lakh shares, which is equivalent to 0.61% of paid-up equity in Ravinder Heights at an average price of Rs 50.04 per share. Serum Institute held 7.34% shareholding in the company.

-Equal-weight call, target raised to Rs 1,600 per share from Rs 1,470 per share
-Company posted superior Q3 performance but equal-weight on relative valuations
-Company delivered stand-out results in Q3FYF24 with a notable beat from its services business
-Growth within services was broad-based across service lines
-Company delivered a beat on EBIT margins- 19.8 percent versus estimate of 19.2 percent
-Company also delivered a beat in services EBIT margin specifically- 17.8 percent versus estimate of 17.3 percent

-Reduce call, target Rs 410 per share
-Q3FY24 beat on revenues & margin
-Weak Q4 guidance and soft deal wins keep us cautious
-Discretionary demand showing early signs of a recovery
-Margin improvement unlikely in FYY24
-Stock is trading at 19x FY26 EPS

Just Dial has recorded a 22.3% on-year growth in net profit at Rs 92 crore for quarter ended December FY24, while revenue from operations increased by 19.7% YoY to Rs 265 crore during the same period. EBITDA margin expanded 1,054 bps YoY led by topline growth, and strong cost controls.

The dollar ebbed on Monday as investors revived their bets of early rate cuts by the Federal Reserve, while the yuan fell to a one-month low after China's central bank surprised markets by keeping its medium-term policy rate steady.

The euro hovered near the $1.10 mark and was last 0.13% higher at $1.0964. The dollar index dipped 0.1% to 102.30, having drifted largely sideways the past couple of sessions.

Sensex Today | BSE Bank index up 0.6 percent supported by HDFC Bank, State Bank of India, Kotak Mahindra Bank:

Titagarh Rail Systems launched the first indigenous 25T Bollard Pull Tug built at its facility in Titagarh, Barrackpore, for the Indian Navy.

The 25T Bollard Pull Tug was launched at the Shipyard in Titagarh, West Bengal, in alignment with the tides that facilitate deployment of the Tug in the water.

IRB Infrastructure Trust has incorporated IRB Kota Tollway - the project SPV for tolling, operation, maintenance and transfer of Kota bypass and cable stay bridge on NH-76 in Rajasthan and IRB Gwalior Tollway - the Project SPV for tolling, operation, maintenance and transfer of Gwalior-Jhansi section of NH-75 in Madhya Pradesh and Uttar Pradesh (collectively TOT-13 project). The company has executed concession agreements with National Highways Authority of India (NHAI) for the said toll operate and transfer (TOT)-13 project.

Life Insurance Corporation of India has received an order from Income Tax authorities regarding Income Tax demand worth Rs 1,370.60 crore issued by Assistant Commissioner of Income Tax, Mumbai. The Corporation will file an appeal before Commissioner (Appeals), Mumbai against the said orders.

Sensex Today | Market at 11 AM

The Sensex was up 585.36 points or 0.81 percent at 73,153.81, and the Nifty was up 152.20 points or 0.70 percent at 22,046.70. About 1758 shares advanced, 1509 shares declined, and 93 shares unchanged.

DroneAcharya Aerial Innovations has secured a prestigious contract from the Indian Army, Ministry of Defence. The contract entails providing Capacity Building and Advanced Drone Training at the Mechanised Army Courses Group, Ahmednagar

Crude oil experienced significant volatility, with gains extending after the U.S. and U.K. conducted air-strikes in Yemen. The Israel-Hamas conflict in the Red Sea further contributed to the rise in crude oil prices, as major shipping operators diverted from the region, causing disruptions in the key Europe-to-Asia route, where approximately 20 million barrels per day are shipped.

Ongoing conflicts in the Red Sea may continue to support prices. Also, crude oil prices saw an increase following the U.S. Producer Price Index (PPI) decline in December, which constrained the gains of the dollar index.

Expectations for today's session suggest continued volatility in crude oil prices. Support for crude oil stands at $72.10–71.40, with resistance at $73.45-74.10. In terms of INR, crude oil has support at Rs 5,940-5,870, and resistance at Rs 6,110-6,190.

Oil prices edged up on Monday as traders watched for supply disruption risks in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.

Brent crude futures were up 13 cents, or 0.2%, to $78.42 a barrel by 0405 GMT after settling 1.1% higher on Friday. U.S. West Texas Intermediate crude was at $72.73 a barrel, up 5 cents, or 0.1%, following a near 1% gain in the previous session.

Bharat Heavy Electricals has received Letter of Award (LOA) for EPC package for 3x800 MW NLC Talabira Thermal Power Project (NTTPP) in Jharsuguda, Odisha from NLC India. The project is worth Rs 15,000 crore.

Adani New Industries, a wholly owned subsidiary of Adani Enterprises, has received Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for setting up electrolysers manufacturing capacity of 198.5 MW per annum in India under Strategic Interventions for Green Hydrogen Transition Scheme (Tranche-I).

Shares of Avalon Technologies Limited traded over 4 percent higher to Rs 565 in morning trade on January 15 after it entered into a strategic partnership with C-DAC (Centre for Development of Advanced Computing) as part of the ‘RUDRA’ programme, aimed at designing and manufacturing supercomputers in India.

The partnership will add to the indigenous manufacturing capability of High-Performance Computing (HPC) systems that are a part of the ‘RUDRA’ programme, said the company in an announcement on January 12. Read More

Equal-weight call, target raised to Rs 1,600 per share from Rs 1,470 per share
Company posted superior Q3 performance but equal-weight on relative valuations
Company delivered stand-out results in Q3FYF24 with a notable beat from its services business
Growth within services was broad-based across service lines
Company delivered a beat on EBIT margins- 19.8 percent versus estimate of 19.2 percent
Company also delivered a beat in services EBIT margin specifically- 17.8 percent versus estimate of 17.3 percent

Last week, gold and silver exhibited significant volatility, initially displaying weakness in the early days but making a strong comeback on Friday from their lows. The recovery was attributed to heightened tensions in the Middle East following air-strikes conducted by the U.S. and the U.K. in Yemen.

The ongoing conflict between Israel and Hamas in Gaza has further escalated concerns, contributing to the safe-haven demand for precious metals. While the dollar index is trading steadily, U.S. 10-year bond yields slipped below 4.0% levels once again, potentially supporting gold and silver prices.

In today's session, we anticipate continued volatility in gold and silver prices. Gold finds support at $2035-2024, with resistance at $2061-2072. Silver's support is at $23.18-22.90, and resistance is at $23.44-23.60. In INR, gold has support at Rs 62,080-61,910, with resistance at Rs 62,540-62,710. For silver in INR, support is at Rs 71,850-71,380, and resistance is at Rs 73,250-73,780.

Sensex Today | BSE realty index up 0.5 percent led by Prestige Estate, Oberoi Realty, Godrej Properties: