Market Commentary - End-Session
Benchmarks rise for 3rd day, Nifty ends near 21,650, VIX below 13 mark As on : 11-Jan-24  17:42

The domestic equity indices closed with decent gains, marking the third consecutive day of ascent, with the Nifty finishing near the 21,650 mark. The market navigated volatility due to the expiry of weekly index options on the NSE. Despite marginal gains in choppy trade, investor caution was evident ahead of December quarter earnings and US inflation data. Energy and auto stocks excelled, while the IT index corrected prior to the Q3 results of Infy and TCS. Notably, market focus shifted towards the broader markets, with mid and smallcaps outperforming the frontline indices.

The barometer index, the S&P BSE Sensex advanced 63.47 points or 0.09% to 71,721.18. The Nifty 50 index added 28.50 points or 0.13% to 21,647.20.

The broader market outperformed the benchmarks. The S&P BSE Mid-Cap index rose 0.66% and the S&P BSE Small-Cap index gained 0.79%.

The market breadth was strong. On the BSE, 2317 shares rose and 1522 shares fell. A total of 98 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 1.07% to 12.83.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.18% to 7.165 as compared with previous close 7.178.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0400, compared with 83.0375 its close of during the previous trading session.

MCX Gold futures for 5 February 2024 settlement rose 0.25% to Rs 62,149.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.01% to 102.35.

The United States 10-year bond yield slipped 1.07% to 3.986.

In the commodities market, Brent crude for March 2024 settlement gained $1.27 or 1.65% to $78.07 a barrel.

Global Markets:

Most shares in Europe and Asia advanced on Thursday as investors looked forward to key US inflation data.

The Bank of Korea left its main lending rate unchanged at 3.50% for the eight time in a row.

US stocks ended higher on Wednesday led by communications stocks and megacaps. Investors are awaiting the U.S. consumer price index report slated for release Thursday. The producer price index reading is due on Friday.

IPO Update:

The initial public offer (IPO) of Jyoti CNC Automation received bids for 67,58,07,705 shares as against 1,75,39,681 shares on offer, according to stock exchange data at 17:00 IST on Thursday (11 January 2024). The issue was subscribed 38.53 times.

The issue opened for bidding on Tuesday (9 January 2024) and it will close on Thursday (11 Thursday 2024). The price band of the IPO is fixed at Rs 315-331 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.

Stocks in Spotlight:

Infosys fell 1.62%. The IT major's consolidated net profit fell 1.6% to Rs 6,113 crore in Q3 FY24 from Rs 6215 crore in Q2 FY24. Revenues fell marginally to Rs 38,821 crore in Q3 FY24 as compared with Rs 38,994 crore in Q2 FY24. Year on year basis, the company?s net profit declined 7.2% while revenues increase 1.3% as compared with Q3 FY24. The total contract value (TCV) of large deal wins was $3.2 billion in Q3 FY24, with net new of 71%.

TCS rose 0.61%. The IT giant's consolidated net profit declined 2.5% to Rs 11,058 crore in Q3 FY24 as against Rs 11,342 crore reported in Q2 FY24. Revenue from operations rose 1.49% to Rs 60,583 crore during the quarter from Rs 59,692 crore posted in Q2 FY24. The company's order book total contract value (TCV) stood at $8.1 billion as on 31 December 2023 and the book to bill ratio was at 1.1. The board has declared a second interim dividend of Rs 9 and a special dividend of Rs 18 per equity share. The record date for the same is 19 January 2024 and the payment date is 5 February 2024.

Polycab India tumbled 21.08% after the media reported that Polycab India engaged in unaccounted cash sales of approximately Rs 1,000 crore, which were not recorded in the books of accounts.

Meanwhile, Polycab issued a clarification on 10 January 2024, denying the rumors of tax evasion and stressing its commitment to compliance and transparency. The statement also affirmed the company's full cooperation with the income tax department and noted that it was awaiting official communication on the outcome of the search proceedings.

GTPL Hathway slipped 4.32% after the company reported 37% fall in consolidated net profit to Rs 23.68 crore, despite a 24% increase in revenue from operations to Rs 850.88 crore in Q3 FY24 over Q3 FY23.

Senco Gold jumped 5.6% after the jeweler said that its revenue grew approximately 24% year on year in the quarter ended 31 December 2023.

Ajmera Realty & Infra jumped 7.35% after the company?s sales value stood at Rs 253 crore in Q3 FY24, recording a growth of 98% as compared with Rs 128 crore posted in Q3 FY23.

Axiscades Technologies gained 5% after the company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 696.70 per share.

Kalyani Steels zoomed 15% after the company announced that it has emerged as successful bidder to acquire assets of Kamineni Steel and Power India worth Rs 450 crore.

Angel One rose 0.4%. The firm said that its board is scheduled to meet on Monday, 15 January 2024 to consider a proposal for raising funds through issuance of non-convertible securities on private placement basis.

CESC advanced 1.31% after the Noida Power Company, a subsidiary of the company has received an order from the Uttar Pradesh Electricity Regulatory Commission (UPERC), approving the power purchase agreement for procurement of power of 95 MW RTC Power per annum for a period of 5 years.

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