Market Commentary - End-Session
Indices bounce on positive economic data; Nifty above 21,700 As on : 13-Feb-24  18:03

The domestic stock market experienced a decent upturn on Tuesday, supported by banks and financial stocks. The Nifty50 index concluded the day above 21,700 points, recovering from an initial drop. The primary catalyst for this recovery was positive economic data.

The barometer index, the S&P BSE Sensex gained 482.70 points or 0.68% to 71,555.19. The Nifty 50 index added 127.20 points or 0.59% to 21,743.25.

ICICI Bank (up 2.46%), Axis Bank (up 2.30%) and Reliance Industries (up 0.90%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.61% and the S&P BSE Small-Cap index advanced 0.18%.

The market breadth was negative. On the BSE, 1685 shares rose and 2172 shares fell. A total of 85 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.58% to 15.81.

Economy:

India's retail inflation, based on Consumer Price Index Numbers, eased to a three-month low of 5.10% in January 2024 against 5.69% during the previous month, the latest data released by the Ministry of Statistics & Programme Implementation showed on Monday.

India's factory output, meanwhile, grew 3.8% in December 2023, the data showed. The IIP in November 2023 stood at 2.4%, while during the year-ago period, the factory output stood at 5.1%.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.3% to 7.099 as compared with previous close 7.097.

In the foreign exchange market, the rupee was flat against the dollar. The partially convertible rupee was hovering at 83, same as the previous close.

MCX Gold futures for 5 April 2024 settlement rose 0.27% to Rs 62,244.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, shed 0.03% to 104.14.

The United States 10-year bond yield rose 0.07% to 4.176.

In the commodities market, Brent crude for April 2024 settlement rose 90 cents or 1.10% to $82.90 a barrel.

Global Markets:

European stocks slipped while most Asian shares settled higher on Tuesday ahead of a key U.S. inflation report that could help shape the Federal Reserve's rates outlook and determine the timing of interest rate cuts. Markets were closed in China, Hong Kong, Taiwan and Vietnam for Lunar New Year holiday.

U.S. indices ended on a mixed note on Monday after hitting new highs ahead of data expected to underscore further disinflation, paving the way for the Federal Reserve to start cutting interest rates this year.

Stocks in Spotlight:

Hindalco Industries tumbled 12.43% after concerns arose over cost overruns in Novelis Inc's Bay Minette project. The company's wholly owned foreign subsidiary, Novelis, is constructing greenfield rolling and recycling plant in Bay Minette, Alabama, the company anticipate that it will be able to initially produce 600 kilotonnes of finished goods for the beverage packaging and automotive markets in North America.

This is the first fully integrated aluminum plant built in the U.S. in nearly 40 years, and the largest project in company history. With a high level of project engineering complete, and all key equipment and the majority of materials contracted, the project capital cost is now expected to be $4.1 billion, and to commission in the second half of calendar year 2026.

Meanwhile, the Aditya Birla Group company?s consolidated net profit climbed 71.14% to Rs 2,331 crore in Q3 FY24 as against with Rs 1,362 crore posted in Q3 FY23. The growth in net profit was driven by a robust performance across aluminium and copper business segments. Revenue from operations declined 0.64% year on year to Rs 52,808 crore during the quarter.

Steel Authority of India (SAIL) declined 4.07% after the company?s standalone net profit declined 28.50% to Rs 331.40 crore in Q3 FY24 as against with Rs 463.54 crore posted in Q3 FY23. Revenue from operations fell 6.77% year on year to Rs 23,345.48 crore in the quarter ended 31 December 2023.

Eicher Motors rose 0.39%. The automobile major's consolidated net profit jumped 34.43% to Rs 995.97 crore in Q3 FY24 from Rs 740.84 crore posted in Q3 FY23. The company?s revenue from operations at Rs 4,178.84 crore in the third quarter of FY24, registering a growth of 12.30% YoY.

Marksans Pharma rallied 7.67% after the company?s consolidated net profit jumped 33.69% to Rs 83.29 crore in Q3 FY24 as compared with Rs 62.30 crore in Q3 FY23. Revenue from operations increased 22.15%YoY to Rs 586.12 crore in Q3 FY24, driven by market share gains, new launches, the addition of new customers, an increase in our share with existing customers, and incremental contributions from the acquired Teva facility.

Coal India rallied 4.47% after the company?s consolidated net profit jumped 17.80% to Rs 9,093.69 crore on 2.79% increase in revenue from operations to Rs 36,153.97 crore in Q3 FY24 over Q3 FY23. Meanwhile, the company's board has declared second interim dividend of Rs 5.25 per equity share for the financial year 2023-24. The record date is fixed as on 20 February 2024.

Glaxosmithkline Pharmaceuticals slipped 6.85% after the company reported 72.22% decline in consolidated net profit of Rs 45.72 crore in Q3 FY24 as against net profit of Rs 164.56 crore posted in Q3 FY23. Revenue from operations rose marginally to Rs 805.26 crore in the quarter ended 31 December 2023 from Rs 802.30 crore posted in corresponding quarter last year.

Time Technoplast soared 15% after the company?s consolidated net profit jumped 49.55% to Rs 91.60 crore in Q3 FY24 as compared with Rs 61.25 crore posted in Q3 FY23. Revenue from operations stood at Rs 1,324.65 crore in Q3 FY24, registering a growth 17.37% YoY.

HEG slipped 7.36% after the company's consolidated net profit declined 58.28% to Rs 43.67 crore in Q3 FY24 as against Rs 104.69 crore posted in Q3 FY23. Revenue from operations stood at Rs 562.40 crore in December 2023 quarter, registering a growth of 6.06% YoY.

Borosil surged 12.51% after the company?s consolidated net profit stood at Rs 37.29 crore in Q3 FY24 as compared with Rs 15.92 core in Q3 FY23. Revenue from operations jumped 46% to Rs 302.45 crore in Q3 FY24 as compared with Rs 207.17 crore in Q3 FY23.

KIOCL gained 9.13% to after the mining company reported net profit of Rs 39.03 crore in Q3 FY24 as against net loss of Rs 33.88 posted in Q3 FY23 Revenue from operations surged 90.86% year on year (YoY) to Rs 549.44 crore in the quarter ended 31 December 2023.

Mahanagar Telephone Nigam (MTNL) slumped 10% as the company reported consolidated net loss of Rs 839.03 crore in Q3 FY24 as compared with net loss of Rs 775.50 crore in Q3 FY23. Net sales declined 15.46% to Rs 192.24 crore in Q3 FY24 as against Rs 227.41 crore in Q3 FY23.

IPO Update:

The initial public offer (IPO) of Entero Healthcare Solutions received bids for 1,09,49,884 shares as against 71,50,100 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (13 February 2024). The issue was subscribed 1.53 times.

The issue opened for bidding on Friday (9 February 2024) and it will close on Tuesday (13 February 2024). The price band of the IPO is fixed at Rs 1,195-1,258 per share. An investor can bid for a minimum of 10 equity shares and in multiples thereof.

The IPO of Vibhor Steel Tubes received bids for 9,89,99,604 shares as against 35,92,445 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (13 February 2024). The issue was subscribed 27.56 times.

The issue opened for bidding on Tuesday (13 February 2024) and it will close on Thursday (15 February 2024). The price band of the IPO is fixed at Rs 141-151 per share. An investor can bid for a minimum of 99 equity shares and in multiples thereof.

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