Closing Bell: Market mayhem continues, Nifty at 22,550, Sensex falls 857 pts

Indian equity indices ended on a weak note with Nifty around 22,550 on February 24. At close, the Sensex was down 856.65 points or 1.14 percent at 74,454.41, and the Nifty was down 242.55 points or 1.06 percent at 22,553.35.

The market is more concerned about the US's likely move to reciprocate higher tariff levies on exporting nations, which could impact developing countries including India. Also, FIIs showing no signs of putting brakes on their India exit strategy continue to weigh heavily on markets, with expensive valuations driving investors to curb their equity bets here. Heavy selling in banking, IT, telecom & other old economy sectors saw benchmark Sensex end below the crucial level of 75k mark.

After showing a range bound action at the support of 22700 levels in the last few sessions, Nifty witnessed a downside breakout of the range on Monday and closed the day lower by 242 points. After opening with a downside gap, the market continued to drift down with range bound action in the early to mid part of the session. The choppy movement continued towards the end and Nifty closed near the day's lows.

A reasonable negative candle was formed on the daily chart with gap down opening and with minor upper shadow. Technically this market action signals a downside breakout of the support as well as the short-term range movement at 22700 levels. This is not a good sign.

The underlying trend of Nifty continues to be negative. There is a possibility of more weakness down to the next support of 22400 levels (20- month EMA) in the short term. Immediate resistance is placed at 22750 levels.

Global headwinds continue to weigh on the domestic market, with persistent volatility causing uncertainty among retail investors, who generally have a lower risk appetite. Weak US consumer sentiment and tariff concerns may further pressure export-oriented sectors such as IT. Looking ahead, the pace of earnings downgrades is expected to ease, supported by increased government spending, lower interest rates, and tax reductions. These factors are likely to provide a boost to sectors such as FMCG, consumer discretionary, and banking.

After an initial decline in the opening trade; Index fluctuated within the range before closing at 22,553.35 with a loss of 242.55 points. Among the sectors, FMCG, Auto, and Pharma managed to finish in the green, while IT and Metal sectors faced a correction of over 2%, emerging as the major laggards. Mid and Smallcaps more or less moved in tandem with the Frontline Index.

The Index, after several attempts, has now broken its strong support level of 22,800 on closing basis which will act as resistance going forward. A potential pullback rally toward the 22,800 mark can be anticipated, while immediate support is now seen at 22,400.

Indian rupee ended flat at 86.70 per dollar on Monday versus Friday's close of 86.71.

Indian equity indices ended on a weak note with Nifty around 22,550 on February 24.

At close, the Sensex was down 856.65 points or 1.14 percent at 74,454.41, and the Nifty was down 242.55 points or 1.06 percent at 22,553.35. About 1126 shares advanced, 2526 shares declined, and 140 shares unchanged.

Biggest Nifty losers were Wipro, HCL Technologies, Infosys, TCS, Tata Steel, while gainers included M&M, Eicher Motors, Dr Reddy's Labs, Hero MotoCorp and Kotak Mahindra Bank.

Except auto, pharma, FMCG, all other sectoral indices ended in the red with IT, metal, telecom indices down 2 percent.

Nifty Midcap and smallcap indices shed 1 percent each.

The company’s step-down subsidiary, Adani Green Energy Twenty Four (AGE24L), has operationalized a solar power project of 250 MW at Bhimsar & Dwada, Jaisalmer, Rajasthan. With the commissioning of this plant, Adani Green Energy’s total operational renewable generation capacity has increased to 11,916.1 MW.

The company has emerged as the lowest bidder for a project worth Rs 156.35 crore from South Western Railway. The project involves engineering, procurement, and construction (EPC) for the design, supply, erection, testing, and commissioning of a 2x25 KV OHE & PSI system between Rayadurga (excluding) and Pavagada (including) of the TK-RDG section.

The company has signed a Business Transfer Agreement to acquire the India business of Resilient Cosme-Ceuticals, along with the brands and associated trademarks, for Rs 24 crore. Additionally, the company received a warning letter dated February 5 from the US Food and Drug Administration (USFDA) related to observations during the inspection of its contract manufacturing facility.

The Special Committee of Directors has approved an increase in Bharti Airtel’s shareholding in its UK-based subsidiary, Airtel Africa plc, by acquiring up to a 5% stake in one or more tranches during FY25, through Airtel Africa Mauritius. Airtel Africa Mauritius, a step-down subsidiary of Bharti Airtel, currently holds 57.29% of Airtel Africa plc.

India's crude oil imports rose 3.2% month-on-month to 20.85 million metric tons in January, the highest since May 2024, government data showed on Monday.

The Sensex was down 829.62 points or 1.10 percent at 74,481.44, and the Nifty was down 236.90 points or 1.04 percent at 22,559.00. About 1097 shares advanced, 2526 shares declined, and 139 shares unchanged.

Indian rupee erased opening gains and traded flat at 86.70 per dollar on Monday versus Friday's close of 86.71.

Indian Rupee fell against the US Dollar on weak tone in the domestic markets and selling pressure from FIIs. However, a decline in the US Dollar index and weak crude oil prices cushioned the downside. US Dollar declined amid disappointing economic data from the US.

We expect Rupee to trade with negative on the back of weak domestic markets and persistent FII outflows. Any recovery in the US Dollar may also weigh on the Rupee. However, any intervention by the RBI and weak tone in crude oil prices may support the Rupee at lower levels. Traders may remain cautious ahead of the core PCE price index data this week. USDINR spot price is expected to trade in a range of Rs 86.50 to Rs 87.

The Sensex was down 847.32 points or 1.13 percent at 74,463.74, and the Nifty was down 248.00 points or 1.09 percent at 22,547.90. About 1058 shares advanced, 2526 shares declined, and 144 shares unchanged.

Brigade Group is proposed to invest Rs 1,500 crore in Kerala, potentially providing employment for around 12,000 people over the next five years. It proposes to set up its second World Trade Center (WTC) in Kerala, with the first being WTC Kochi.

In addition, Brigade is looking to expand its footprint in Kerala with a residential project in Kochi and a luxury island resort at Vaikom. These projects are expected to be completed by 2030.

Gold prices continued to gain strength last week. The rise in prices can be attributed to the heightened volatility, global uncertainties and the weak US data that has pushed gold prices further. US service-sector activity has also gone down to 2-year low, pushing the gold prices upwards.

Moving ahead, gold prices are expected to stay afloat on the back of continued global uncertainties. Trajectory of DXY and USD will be key to gold prices this week. With gold prices witnessing continuous hike, there is a possibility of near-term profit taking, however, mid to long-term bullishness momentum could be seen as well. We anticipate gold prices to scale levels of $3,000 in mid-term.

The company has commenced operations of a new branch in Vashi, Maharashtra, with effect from February 24, 2025.

The company has been declared the preferred bidder for the Kauhari Diamond block, with the highest final price offer of 1.10%. The Kauhari Diamond Block is at the G4 level of exploration, with a total area of 643.4169 hectares for the block.

The company has commissioned the remaining part of the fluorocarbon refrigerant gas capacity expansion project at Dahej on February 21, at an aggregate cost of Rs 361 crore. In July 2021, the board had approved a project for expanding fluorocarbon refrigerant gas capacity, with backward integration into a key raw material at Dahej. A part of the project was commissioned and capitalized in December 2023, at an aggregate cost of Rs 317 crore.

Delayed growth recovery, the slowdown in urban demand and higher prices of a few commodities have pushed FMCG stocks 10-35% in the last 5-6 months. Thus, valuations of many of these companies have turned attractive at sub-40x FY27e EPS.

In fact, these are lower than the average 10-year PE multiple (1-year forward) (except Marico & Radico).

We expect about a 9% revenue CAGR over FY25-27 driving a ~13% earnings CAGR, better than the 5% y/y revenue/earnings growth expected for FY25.

With better earnings next year, Anand Rathi optimistic regarding possible re-ratings.

Broking house like HUL (TP Rs2,900), Godrej Consumer (Rs1,485), Emami (Rs900), Zydus Wellness (Rs2,530) and Mrs Bector Food (Rs1,875). In consumer discretionaries, United Breweries (Rs2,610) is the pick.

The company has received a work order from East Central Railway for works amounting to Rs 288.15 crore.

The Board has approved the sub-division or split of the company’s existing 1 equity share with a face value of Rs 10 each into 2 equity shares with a face value of Rs 5 each.

The Board has approved the company’s investment of up to Rs 1,000 crore via a rights issue in Scootsy Logistics in one or more tranches. Scootsy Logistics is a subsidiary of Swiggy. These funds will be used for working capital and other capital expenditures.

The company stated that LCL (less-than-container load) volume in January grew by 4% YoY and 1% MoM to 741,000 cubic meters due to the early Lunar New Year. However, it is expected to soften a bit in the near term. The FCL (full-container load) volume increased by 6% YoY to 54,403 TEUs in January, but was down 9% compared to the previous month.

The Board has approved the acquisition of a 100% equity stake in Switzerland-based Senn Chemicals AG for Rs 192.5 crore and also approved the incorporation of a wholly owned subsidiary in India for this acquisition. Senn develops and manufactures peptides and peptide-based applications for its global customers, providing contract research, development, and manufacturing services.

Asian shares declined, breaking a blistering rally in technology stocks after an executive order from President Donald Trump restricting Chinese spending on some strategic US sectors.

The Sensex was down 706.89 points or 0.94 percent at 74,604.17, and the Nifty was down 205.15 points or 0.90 percent at 22,590.75. About 1228 shares advanced, 2258 shares declined, and 133 shares unchanged.

INOX India has received the prestigious IATF 16949 certification for cryogenic fuel tank manufacturing.

The certification, issued by Bureau Veritas Certification covers the design and manufacturing of vacuum insulated cryogenic fuel tanks.

The Board has approved the company’s plan to invest funds up to 150 million euros in its subsidiary Bajaj Auto International Holdings BV, Netherlands. This investment will be made either in the form of equity capital, preference capital, or loan in one or more tranches.

The company has decided to withdraw its proposed preferential issue of 3,37,86,756 convertible equity warrants, primarily due to market volatility and a significant decline in the market price of its shares.

Despite weak market momentum, Quality Power IPO managed to list in line with street estimation.

We believe the muted listing is justified in the current market scenario witnessing selling pressure in the broader market. Considering the muted market trend and low interest in the offer demand, we are expecting a very flat trading on its issue price and listing price.

Post listing, we continue to believe Quality Power Electrical Equipments Ltd (QPEEL) IPO brings investors a long term investment opportunity to invest in the rapidly growing energy transition and power infrastructure sector and with strong global presence, specialized expertise in HVDC and FACTS technologies, and a diversified high-voltage equipment portfolio position it as a key player in grid modernization and renewable energy integration.

Hence, recommend allotted investors to “HOLD” the Quality Power Electrical Equipments IPO for long term perspective, despite knowing that post listing counter may invite short term volatility.

The Sensex was down 799.71 points or 1.06 percent at 74,511.35, and the Nifty was down 243.60 points or 1.07 percent at 22,552.30. About 929 shares advanced, 2477 shares declined, and 139 shares unchanged.

The Board has approved a proposal for the sale of NPA and written-off loans to an asset reconstruction company. The bank is going to sell a micro banking pool worth Rs 364.51 crore (Rs 294.51 crore NPA and Rs 70 crore technically written off). The bank carries an overall provision of 66.51% on the micro banking pool.

The company has emerged as the lowest bidder for a project worth Rs 156.35 crore from South Western Railway. The project involves engineering, procurement, and construction (EPC) for the design, supply, erection, testing, and commissioning of a 2x25 KV OHE & PSI system between Rayadurga (excluding) and Pavagada (including) of the TK-RDG section.

EaseMyTrip.com, through its wholly owned subsidiaries, YoloBus and Easy Green Mobility won Madhya Pradesh Government’s only first inter-city electric buses tender issued by Sagar City Transport Services Limited (SCTSL).

Said electric buses shall be operated by EaseMyTrip’s operating arm YoloBus & manufactured by Easy Green Mobility.

The Committee of Creditors of Vidarbha Industries Power, a company undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016 has approved the resolution plan submitted by Adani Power.

APL has received a Letter of Intent from the resolution professional.

VIPL owns and operates a 2x300 MW (600 MW) thermal power plant located in MIDC Industrial Area, Butibori, Nagpur, Maharashtra.

The global pharma major has received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (US FDA) for its manufacturing facility in Somerset, New Jersey. The US FDA conducted the inspection of the Somerset facility from January 27 to January 31, 2025.

The company’s step-down subsidiary, Adani Green Energy Twenty Four (AGE24L), has operationalized a solar power project of 250 MW at Bhimsar & Dwada, Jaisalmer, Rajasthan. With the commissioning of this plant, Adani Green Energy’s total operational renewable generation capacity has increased to 11,916.1 MW.

Zaggle Prepaid Ocean Services has entered into an agreement with Gujarat International Finance Tec-City Company.

Zaggle will provide the solutions of CoBrand Pre-Paid Citizen Card and Visitor Management system for GIFTCL.

The shares of Quality Power Electrical Equipments debuted on stock exchanges at Rs 432.05 apiece on BSE on February 24. This marks a premium of 1.66 percent over its IPO price of Rs 425 per share.

On NSE, the shares were listed with a lower premium of 1.18 percent over the IPO price at Rs 430 apiece.

The high-voltage electrical equipment and solutions provider had launched its maiden IPO to raise Rs 859 crore. The IPO comprised a fresh issue of equity shares worth Rs 225 crore, and an offer-for-sale of 1.49 crore shares worth Rs 633.7 crore by the existing shareholders. The company had set a price band of Rs 401-425 per share for the IPO.

Stocks in Asia drifted at the start of the week as traders refrained from making riskier bets after lackluster economic data spurred a selloff on Wall Street.

The company has signed a Business Transfer Agreement to acquire the India business of Resilient Cosme-Ceuticals, along with the brands and associated trademarks, for Rs 24 crore. Additionally, the company received a warning letter dated February 5 from the US Food and Drug Administration (USFDA) related to observations during the inspection of its contract manufacturing facility.

The Sensex was down 695.20 points or 0.92 percent at 74,615.86, and the Nifty was down 212.85 points or 0.93 percent at 22,583.05. About 812 shares advanced, 2427 shares declined, and 132 shares unchanged.

Zaggle has signed a customer service agreement with Indus Towers to provide Zaggle Save (employee expense management & benefits).

Broking House cut CY25/CY26 EPS estimates by 4%/11% to account for weak demand, slow order ramp-up, and lower profitability. However, company remains focused on sustaining profitability through operational efficiencies.

The stock trades at 18.1x/16.8x CY25E/CY26E consolidated EPS. Reiterate BUY with a Target Price of Rs 500

(~20x Dec’26E consolidated EPS).

NTPC and EDF India Private Limited, owned by Électricité de France SA, a French multinational electric utility company owned by the Government of France, have signed a non-binding Term Sheet and collaborated to develop (including construction), own, operate and maintain pumped storage project(s) and/or any other hydro power project(s) or Hydro Project(s) bundled with other Renewable Energy projects and explore opportunities in distribution business.

The company has appointed Tanmay Prusty as Chief Marketing Officer, designated as Senior Management Personnel, effective February 2