Closing Bell: Sensex up 690 pts, Nifty at 21,450; all sectors in the green

Benchmark indices ended higher in the volatile session on January 24 with Nifty above 21,450. At close, the Sensex was up 689.76 points or 0.98 percent at 71,060.31, and the Nifty was up 215.20 points or 1.01 percent at 21,454.

We wrap up today's edition of the Moneycontrol live market blog, and will be back on 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 witnessing heavy profit-booking in recent sessions, investors resorted to short covering ahead of F&O expiry on Thursday which helped benchmark Sensex close above the crucial 71k mark. Despite the bounce back, one may see sharp gyrations in the market in the near to medium term due to a lot of uncertainty surrounding West Asia conflict, renewed inflation worries and delay in rate cuts from the US Fed.

The Nifty opened gap up however it did not witness follow through selling pressure. It witnessed a sharp rebound and closed in the green up ~215 points. On the daily charts we can observe that the Nifty has held on the 40 day average which was placed at 21234. Going ahead we expect Nifty to face resistance in zone 21500 – 21520 where the key hourly moving averages are placed. Traders should look for signs of weakness around the resistance zone before initiating shorts as there is a possibility of a deeper retracement till 21780 – 21800 where the hourly upper Bollinger band is placed. The hourly momentum indicator has triggered a positive crossover which is a buy signal. Thus, price and momentum indicator are providing divergent signals which can lead to high intraday volatility. On the downside 21250 – 21220 shall act as a crucial support zone from short term perspective while 21500 – 21520 is the immediate hurdle zone from short term perspective.

Bank Nifty also opened gap down and thereafter consolidated for the day closing marginally in the green. We expect the consolidation to continue going ahead in the range 44500 – 45750. Minor degree pullback towards 45460 – 45810 should be used as a selling opportunity. On the downside we expect the Bank Nifty to drift towards 44500 – 44400 from short term perspective.

Rupee traded within a narrow range of 83.10-83.17 as the dollar index exhibited a sideways trend with volatility around 103$. This pattern has persisted for an extended period. The likelihood of the Federal Reserve (Fed) cutting rates has diminished, with investors pricing in a lower chance of a rate cut in March. The positive economic outlook in India, with expectations of reaching a $5 trillion economy next year and $10 trillion by the end of the decade, provides some support for the Indian Rupee. Market participants are eagerly awaiting the US S&P Global Purchasing Managers' Index (PMI) report for fresh impetus. Rupee range broadly remains between 82.90-83.25.

Net profit up 11.2% at Rs 126.6 crore versus Rs 113.9 crore and Net Interest Income up 6.3% at Rs 474 crore versus Rs 446 crore, YoY.

Net profit up 3.2% at Rs 510 crore versus Rs 494 crore, QoQ.

The Nifty exhibited volatility throughout the day following a weak start. On the hourly chart, the index began displaying initial signs of a reversal. However, it closed below the resistance level of 21500. A decisive move above 21500 could potentially trigger a significant rally in the index. On the downside, support is situated at 21400-21350. A confirmed breakthrough above 21500 may propel the index towards 21700 and beyond.

In Bank Nifty, after a brief downturn, the bulls made a strong comeback, successfully defending the crucial support level of 44,500, where fresh put writing activities were observed. Despite the rebound, the index is still navigating a downtrend. A potential pullback rally towards the 45,500 mark is anticipated. However, a significant development would be the index closing above 45,500, triggering further short-covering moves towards the 46,000 level, characterized by the highest open interest on the call side.

Markets took a breather after Tuesday’s slide and gained nearly a percent amid volatility. The tone was negative at the beginning however rebound in the select heavyweights not only capped the decline but also helped the Nifty to close in the green. Meanwhile, a mixed trend continued on the sectoral front wherein metal, energy, and IT performed well while banking and realty ended subdued. The broader indices also witnessed some recovery and managed to gain over one and a half percent each.

The banking index tested its long term moving average (200 EMA) on Wednesday so we can’t rule out some consolidation. However, it would be tough for other key sectors to trigger any meaningful recovery in Nifty. We thus feel traders should continue with a stock-specific trading approach and maintain positions on both sides.

Net profit down 23% at Rs 502.8 crore verssu Rs 653 crore, YoY.

Net profit down 88.7% at Rs 23 crore versus Rs 203 crore and revenue down 22.6% at Rs 1,195 crore verssu Rs 1,544.8 crore, YoY.

Indian rupee ended flat at 83.13 per dollar versus previous close of 83.15.

: Benchmark indices ended higher in the volatile session on January 24 with Nifty above 21,450.

At close, the Sensex was up 689.76 points or 0.98 percent at 71,060.31, and the Nifty was up 215.20 points or 1.01 percent at 21,454. About 2373 shares advanced, 1288 shares declined, and 81 shares unchanged.

Top gainers on the Nifty were Hindalco Industries, Dr Reddy's Laboratories, Tata Steel, Power Grid Corporation and HCL Technologies, while losers included ICICI Bank, Axis Bank, Asian Paints, Adani Ports and HDFC Life.

Among sectors, auto, Information Technology, capital goods, FMCG, metal, oil & gas and power up 1-2 percent.

BSE Midcap and Smallcap indices added nearly 2 percent each.

-Underweight call, target Rs 129 per share
-Profit before tax missed est by 1 percent due to lower other income & higher credit costs
-3 percent PAT beat was due to lower tax rate
-Some drop in collection efficiency & likely higher overall slippages will be key points

Sensex Today | Nifty Information Technology index up 1 percent led by HCL Technologies, Tech Mahindra, Persistent Systems:

-Equal-weight call, target Rs 1,015 per share
-Company announces part prepayment of deferred liability for spectrum acquired in 2015 auctions
-Believe the prepayment will be positive on net present value basis over tenure of spectrum
-Assuming yield on cash of 6-7 percent
-This prepayment could help earnings by 1 percent for FY25
-The prepayment wouldn’t have any implications on net debt

Indian Rupee traded on a flat note today. Positive domestic markets and a soft US Dollar supported the Rupee while rising crude oil prices and FII outflows capped sharp gains. US Dollar declined on strong Yen on rising expectations that Bank of Japan may normalise its monetary policy in the coming months.

We expect Rupee to trade with a slight positive bias as the US Dollar has softened ahead of PMI data and gains in the Japanese Yen today. Markets expect PMI data to be better than the previous month’s reading. However, concerns over the Red Sea region and elevated crude oil prices may cap sharp upside. Traders may remain cautious ahead of PMI data from Germany, Eurozone, UK and the US today. Investors may remain cautious ahead of US GDP and ECB monetary policy decision on Thursday. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50.

-Upgrade to buy, target raised to Rs 4,610 per share from Rs 4,000 per share
-Comapny reported healthy Q3 beat with industry-leading volume growth/ profitability
-Company also announced new 6 mtpa expansion with 30 mtpa cap targeted by FY26 end
-Expansion will keep co on track for industry-leading growth
-Upgrade FY24-26 EBITDA est by 5-12 percent

The Board of Directors at its meeting held on January 24, 2024 considered and approved a proposal to enhance the clinker manufacturing capacity from 1.65 MTPA to 2.3 MTPAand also the Cement grinding capacity from 1.82 MTPA to 3 MTPA at Durga Cement Works Plant, in Andhra Pradesh.

Sensex Today | Market at 3 PM

The Sensex was up 677.55 points or 0.96 percent at 71,048.10, and the Nifty was up 213.30 points or 1.00 percent at 21,452.10. About 1937 shares advanced, 1266 shares declined, and 76 shares unchanged.

Total income, however, declined by 2 percent YoY in Q3FY24

The company's revenue rose 30 percent YoY to Rs 340 crore in Q3FY24 as against Rs 261 crore in Q3FY23

Net profit rose 15% at Rs 87 crore versus Rs 75.7 crore and revenue up 19.3% at Rs 582.3 crore versus Rs 488.3 crore, YoY.

Net profit declined 96% at Rs 4.6 crore versus Rs 108 crore and revenue down 38% at Rs 632.5 crore versus Rs 1,017 crore, YoY.

Sensex Today | Nifty Metal index up nearly 3 percent supported by NALCO, SAIL, Hindalco Industries:

Net profit up 14.4% at Rs 61 crore versus Rs 53.3 crore, YoY.

Net profit up 61% at Rs 135 crore versus Rs 84 crore and revenue up 30% at Rs 602 crore versus Rs 462 crore, YoY.

The Competition Commission of India has given its nod to the acquisition of 5.27% in Religare Enterprises by entities linked to the Burman family, which owns FMCG major Dabur India.

Sensex Today | BSE Capital Goods index up nearly 1 percent led by Carborundum Universal, Timken India, Rail Vikas Nigam:

Net profit up 57% at Rs 160 crore versus Rs 102 crore and revenue down 2% at Rs 2,330 crore versus Rs 2,370 crore, YoY.

Net profit up 52% at Rs 2,119 crore versus Rs 1,396 crore and Net Interest Income up 5.7% at Rs 5,815 crore versus Rs 5,499 crore, YoY.

The Competition Commission of india has approved the amalgamation of Fincare Small Finance Bank into and with AU Small Finance Bank. The said amalgamation is subject to receipt of the approval of Reserve Bank of India.

AU Small Finance Bank was quoting at Rs 722.75, up Rs 6.80, or 0.95 percent on the BSE.

Sensex Today | BSE Midcap index up 1 percent led by IDBI Bank, REC, Aditya Birla Fashion

-Buy call, target Rs 1,450 per share
-Q3 EBITDA was 19 percent/10 percent ahead of Jeff/Consensus
-Gross margins ahead of estimates on lower feedstock costs
-Overall volumes were in-line
-PAT was 23 percent above estimate
-Will look for management guidance on volume gains post OEM partnership
-Look for trajectory of APM shortfall going forward

UFO Moviez India announced a strategic partnership with TSR Films, a leading digital cinema integrator based out of Chennai. This strategic collaboration grants UFO Moviez exclusive advertising screen rights across TSR’s extensive network of over 403 screens.

Net loss at Rs 62.9 crore versus loss of Rs 25.8 crore and revenue down 79.4% at Rs 75.8 crore versus Rs 368.1 crore, YoY.

Net profit up 30.2% at Rs 722.6 crore versus Rs 555.2 crore and Net Interest Income up 5.5% at Rs 2,397.6 crore versus Rs 2,271.6 crore, YoY.

Net profit up 7.5% at Rs 240 crore versus Rs 223.2 crore and revenue up 12.6% at Rs 3,840.5 crore versus Rs 3,412 crore, YoY.

Mahindra & Mahindra Financial Services has received approval from the board to issue secured NCDs worth Rs 3,000 crore on private placement basis. The issue included the base issue size of up to Rs 500 crore and green shoe upto Rs 2,500 crore, at a face value of Rs 1 lakh per debenture.

Net profit up 2.4% at Rs 300 crore versus Rs 293 crore and NII up 23% at Rs 860 crore versus Rs 697 crore, YoY.

Tanla Platforms has recorded a 20.3% on-year growth in net profit at Rs 140.1 crore for October-December period of FY24, with net profit margin at 14 percent. Revenue from operations during the quarter rose by 15.3% YoY to Rs 1,002.6 crore.

Sensex Today | Market at 1 PM

The Sensex was up 146.32 points or 0.21 percent at 70,516.87, and the Nifty was up 54.50 points or 0.26 percent at 21,293.30. About 1749 shares advanced, 1427 shares declined, and 71 shares unchanged.

Sona BLW Precision Forgings has registered a 24% year-on-year growth in consolidated net profit at Rs 132.7 crore for the quarter ended December FY24. Revenue from operations during the same period increased by 15.8% YoY to Rs 781.8 crore.

The Federal Bank has been showcasing solid performance, with advance growth of 21% and PAT growth of 25.3%YoY. The performance is expected to continue with advances growth at 20.4% and deposits at 22.5% during FY25-26E. Hence, reiterate accumulate with a revised target price of Rs 156 based on 1.0x FY26E BVPS.

Net profit up 27% at Rs 3,656 crore versus Rs 2,881.5 crore and Net Interest Income up 9.5% at Rs 9,417 crore versus Rs 8,600 crore, YoY.

Rallis India has reported a 9.09% year-on-year increase in net profit at Rs 24 crore for quarter ended December FY24 despite fall in topline, supported by healthy operating numbers. Revenue during the quarter fell by 5.08% year-on-year to Rs 598 crore in Q3FY24.

Sensex Today | BSE FMCG index up 1 percent led by Vadilal Industries, Parag Milk Foods, Mishtann Foods:

Karnataka Bank has recorded a 10.1% on-year growth in net profit at Rs 331.08 crore for October-December period of FY24, with fall in provisions for bad loans and increase in other income. Net interest income fell 0.86% year-on-year to Rs 827.6 crore for the quarter. Asset quality weakened with the gross NPA rising 17 bps sequentially to 3.64% and net NPA increasing 19 bps QoQ to 1.55% in Q3FY24.

The Board of Directors of Rama Steel Tubes at its meeting held today i.e. January 24, 2024, has approved the issue of bonus shares in the proportion of 2: 1 i.e. 2 fully paid-up bonus equity share of Re 1 each for every 1 fully paid-up equity share of Re 1 each held by the Members of the company as on the record date, subject to approval of Members of the Company through Postal Ballot.

-Underweight call, target cut to Rs 7,500 per share
-Q3 missed expectations
-Quality of growth could have been better with higher EPD growth
-Challenges persist in media & parts of transportation business coloring overall demand outlook
-Delay in growth recovery amidst high expectations along with premium valuation

Sensex Today | BSE Smallcap index up 0.5 percent led by Transformers and Rectifiers India, IFCI, MTNL:

-Buy call, target Rs 1,960per share
-Q3 reported profit was marginally ahead of estimate, driven by stable margins & lower expenses
-Slight increase in portfolio at risk (PAR) should abate
-Raise earnings by 0.6-2.4 percent over FY24-26

Havells India has registered a 1.4% on-year growth in net profit at Rs 287.9 crore for quarter ended December FY24, with weak operating numbers. Revenue from operations grew by 6.8% year-on-year to Rs 4,400.6 crore for the quarter.

Glenmark Life Sciences has clocked a 13.1% on-year growth in net profit at Rs 118.8 crore for quarter ended December FY24, driven by healthy operating performance. Revenue from operations for the quarter increased by 5.9% to Rs 572.8 crore compared to year-ago period.

Sensex Today | Market at 12 PM

The Sensex was up 114.87 points or 0.16 percent at 70,485.42, and the Nifty was up 38.40 points or 0.18 percent at 21,277.20. About 1875 shares advanced, 1256 shares declined, and 88 shares unchanged.

-Buy call, target Rs 1,404 per share
-Healthy loan growth, in-line NIM compression, low credit costs were positives
-Retail deposits grew a tad slower
-Cut FY24-26e EPS estimate 0.3-1.5 percent
-EPS cut reflects minor adjustments to growth, NIM, & Opex estimates
-Expect a FY24-26e EPS CAGR of 14 percent

Net profit up 26% at Rs 18.4 crore versus Rs 14.6 crore and revenue up 10% at Rs 321 crore versus Rs 291.8 crore, QoQ.

Factors driving interest include a large and liquid market, a robust macro-economic framework, favorable risk-adjusted rewards, diversification benefits, high yields, FX stability, JP-GBIEM index inclusion, and anticipated increased Foreign Portfolio Investment. READ MORE

The Zerodha Nifty 1D Rate Liquid ETF replicates the Nifty 1D Rate Index that measures returns generated by market participants lending in overnight market. The ETF primarily invests in TREPS (Treasury Bills Repurchase) traded on the CCIL (Clearing Corporation of India) platform.

Analysts at Centrum shared an 'add' rating on the counter with a target price of Rs 4,210 per share. "We believe the new capex will help the company to maintain its consistent volume growth in its existing market and foray in Bihar market would enhance its revenue diversification and provide an impetus for future growth," they wrote in a post-result review note.

The government announced Pradhanmantri Suryodaya Yojana (PSY) with an aim to install rooftop solar power systems for 10 million households in India. JM Financial analysts, in their recent note, said that the biggest beneficiaries are expected to be players engaged in panel manufacturing like Waaree Renewable.

Shares of REC gained over 7 percent in early trades on January 24, after the state-owned firm reported a 13.6 percent increase in net profit for Q3FY24.

Moneycontrol on January 23 reported that REC, which is a Maharatna power finance company, will lend up to Rs 1,20,000 crore for the installation of rooftop solar panels under the Pradhan Mantri Suryoday Yojana. This announcement was made by REC Chairman and Managing Director (CMD) Vivek Kumar Dewangan during a media interaction. Read More

TNTBC as the Trustee of Nomura India Stock Mother Fund, Canara Robeco Mutual Fund, BNP Paribas Arbitrage, Goldman Sachs Funds - Goldman Sachs India Equity Portfolio, and Whiteoak Capital Mutual Fund bought 48,53,701 equity shares, equivalent to 7.05% of total paid-up equity, in Medi Assist Healthcare Services, amounting to Rs 230.8 crore.

-Buy call, target Rs 1,380 per share
-Profit was tad below estimate due to weaker NII/NIM
-Credit costs stayed low & bank utilised some buffers into OPEX
-Still feel that franchise is strong to deliver 16-18 percent growth in loans
-Could improve deposit profile & sustain RoE of 18 percent
-See 17 percent CAGR in profit over FY24-26
-Valuations at 1.8x FY25 adjusted PB/10x PE are attractive & 20 percent+ discount to ICICI

Sensex Today | BSE Oil & Gas index up 1 percent supported by Gail, HPCL, BPCL:

Route Mobile has registered a 33% year-on-year increase in net profit at Rs 113.6 crore for October-December quarter of FY24 despite muted operating numbers, supported by exceptional gain of Rs 15 crore. Revenue from operations increased nearly 4% YoY to Rs 1,024.3 crore for the quarter.

Indus Towers has recorded a 19% sequential increase in net profit at Rs 1,540.5 crore for the quarter ended December FY24, with healthy operating margin performance. In Q3FY23, it had a net loss of Rs 708.2 crore. Revenue grew by 0.9% QoQ and 6.4% year-on-year to Rs 7,199 crore during the quarter. In Q3FY23, other expenses had included Rs 2,270 crore on account of allowances for doubtful receivables and also there was an exceptional loss of Rs 492.8 crore.

The Indian stock market experienced a gap up opening with a roughly half-percent increase on Wednesday. However, the market is anticipated to display volatility amidst mixed global cues and in the aftermath of a notable decline observed in the previous session.

On the weekly expiry day, analyzing Bank Nifty through option data, it is noted that the 45,000 and 45,500 Call strikes have significant Open Interest (OI), serving as substantial resistance levels. The 45,000 Call strike exhibits a noteworthy OI of approximately 22 lakhs shares. Support for Nifty Bank is anticipated within the range of 44,775 to 44,900 levels.

In the case of Nifty, the presence of aggressive Call writing in At-The-Money (ATM) and Out-of-The-Money (OTM) strikes suggests a potential limitation on the upside. On the downside, immediate support is identified at the 21,000 levels.

-Underperform call, target Rs 870 per share
-Q3 standalone EBITDA ahead of estimate
-Standalone PAT beat was sharper given higher other income
-Like healthy gross margin delivery
-Healthy gross margin suggests moderation in other inputs and improvement in packaging mix
-Await clarity on whether Q3 gross margin is indicative of ENA cost pressures

Sensex Today | BSE Bank index up 0.7 percent led by IndusInd Bank, AU Small Finance Bank, SBI:

Shares of Karnataka Bank fell 10 percent at the open on January 24 on the NSE, a day after the bank reported its Q3FY24 results.

In a regulatory filing, Karnataka Bank reported a 10.1 percent year-on-year growth in net profit to Rs 331.08 crore for the quarter ended December 2023 on the back of fall in provisions for bad loans and increase in other incomes. Net interest income for the same period fell 0.86 percent on-year to Rs 827.6 crore. For the reporting quarter, the company reported a decline in asset quality with the gross NPA up 17 basis points QoQ to 3.64 percent and net NPA was up 19 basis points QoQ to 1.55 percent in Q3FY24. Read More

UFO Moviez share price added 5 percent in the opening trade on January 24 after the company entered into a partnership with TSR Films for advertising rights.

This strategic collaboration grants UFO Moviez exclusive advertising screen rights across TSR’s extensive network of over 403 screens.

With this partnership, UFO Moviez’s cinema advertising network has expanded to 3,808 screens from 3,303 screens as of September 30, 2023. Read More