Market Commentary - End-Session
Benchmarks bounce back, Nifty ends above 21,840; SBI rallies over 4% As on : 14-Feb-24  17:18

The domestic stock market navigated through turbulent waters on February 14, overcoming initial selloff triggered by the hotter-than-expected US inflation figures. The benchmark indices, BSE Sensex and NSE Nifty 50, staged a noteworthy recovery, transforming the day's losses into gains. This positive trajectory was driven by a surge in State Bank of India.

The barometer index, the S&P BSE Sensex gained 267.64 points or 0.37% to 71,822.83. The Nifty 50 index added 96.80 points or 0.45% to 21,840.05.

State Bank of India (up 4.14%), Axis Bank (up 2.14%) and Reliance Industries (up 1.14%) boosted the indices.

The positive sentiment extended to the broader market indices, with the S&P BSE Mid-Cap index rising 1.26% and the S&P BSE Small-Cap index climbing 1.16%.

With the exception of export-oriented sectors like Nifty IT and Nifty Pharma, all other sectors showcased resilience, turning green by the end of the trading day. Notably, Nifty PSU Bank and Nifty Oil & Gas emerged as the top-performing sectors.

The market breadth was strong. On the BSE, 1162 shares rose and 841 shares fell. A total of 1935 shares were unchanged.

The India VIX, a measure of market volatility, exhibited a 2% decline, falling below the 16 level.

Economy:

India?s wholesale price inflation moderated to 0.27% in January from 0.73% in December, with manufactured products prices dropping 1.1% year-on-year and the price rise in primary articles and food items easing to around 3.8% from over 5% in the previous month.

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 edged lower against the dollar. The partially convertible rupee was hovering at 83.1100, compared with its close of 83.0350 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement shed 0.27% to Rs 61,1338.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, shed 0.02% to 104.94.

The United States 10-year bond yield declined 0.55% to 4.295.

In the commodities market, Brent crude for April 2024 settlement rose 19 cents or 0.23% to $82.96 a barrel.

Global Markets:

Markets in Europe advanced on Wednesday as U.K. inflation held steady at 4% year on year in January on the back of easing prices for furniture and household goods, food and non-alcoholic beverages.

Meanwhile, Asian stocks ended mixed, as higher-than-expected U.S. CPI data pushed back traders' expectation of rate cuts by the Federal Reserve anytime soon. Mainland China's financial markets remain closed for the week.

Wall Street's main indices tumbled on Tuesday after a higher-than-expected consumer inflation reading pushed back market expectations of imminent interest rate cuts, driving US Treasury yields higher.

US Consumer Price Index rose by 3.1% for the 12 months ended in January, according to Bureau of Labor Statistics data released Tuesday. That marks a step back from December's 3.4% rate and a dramatic cooling from the 6.4% increase seen in January 2023. On a monthly basis, CPI rose by 0.3% in January.

Stocks in Spotlight:

Mahindra & Mahindra rose 0.26%. The auto major's standalone net profit surged 60.59% to Rs 2,453.98 crore in Q3 FY24 as against Rs 1,528.06 crore recorded in Q3 FY23. Revenue from operations increased 16.7% year on year (YoY) to Rs 25,288.51 crore in the quarter ended 31 December 2023. Meanwhile, Income from Farm Equipment Sector (FES) came in at Rs 8,599.89 crore, marginally rose by 0.17% YoY during the quarter.

Indian Railway Catering and Tourism Corporation (IRCTC) advanced 2.57% after the company reported 17.4% increase in net profit to Rs 299.99 crore in Q3 FY24 as compared with Rs 255.52 crore posted in Q3 FY23. Revenue from operations jumped 21.81% to Rs 1,118.30 crore in Q3 FY24 as compared with Rs 918.06 crore in Q3 FY23.

Oil India jumped 6% after the company reported a standalone net profit of Rs 1,584.28 in Q3 FY24, steeply higher than Rs 325.31 crore posted in Q2 FY24. Revenue from operations declined marginally to Rs 5,323.74 crore in Q3 FY24 as against Rs 5342.36 crore reported in Q2 FY24.

Zee Entertainment Enterprises surged 6.02% after the media major?s consolidated net profit (from continuing operations) declined 6.47% to Rs 53.34 crore in Q3 FY24 as against Rs 57.03 crore recorded in Q3 FY23. Revenue from operations in Q3 FY24 was at Rs 2,045.7 crore, down 3% from Rs 2,108.8 crore posted in the same period a year ago.

MTAR Technologies tumbled 9.23% after the company's consolidated net profit declined 66.88% to Rs 10.4 crore in Q3 FY24 as compared with Rs 31.4 crore in Q3 FY23. Revenue from operations fell 26.09% to Rs 118.38 crore in Q3 FY24 as compared with Rs 160.16 crore in Q3 FY23.

NBCC (India) was locked in upper circuit of 5% after the company?s consolidated net profit jumped 60.30% to Rs 110.74 crore on 13.65% increase in net sales to Rs 2,405.5 crore in Q3 FY24 over Q3 FY23.

National Aluminium Company (NALCO) surged 9.48% after the company?s standalone net profit soared 78.52% to Rs 488.87 crore as against Rs 273.85 crore recorded in Q3 FY23. Revenue from operations stood at Rs 33,46.90 crore in Q3 FY24, up 1.51% from Rs 32,97.19 crore reported in the same period a year ago.

Nuvama Wealth Management surged 13.32% after the company reported consolidated net profit of Rs 176.33 crore in Q3 FY24, steeply higher than Rs 87.36 crore in Q3 FY23. Revenue from operations jumped 45.3% YoY to Rs 840.64 crore in Q3 FY24.

Bharat Heavy Electricals (BHEL) rallied 4.90% after the company posted a standalone net loss of Rs 163 crore in Q3 FY24 as against a net profit of Rs 31 crore in Q3 FY23. The public sector undertaking?s income from operations rose by 7% YoY to Rs 5,273 crore in the third quarter.

JSW Steel shed 0.09%. The steel major said that its consolidated crude steel production for the month of January 2024 grew 7% to 23.62 lakh tonnes from 22.02 lakh tonnes steel produced in January 2023.

Prestige Estates Projects slipped 3.26% after the company?s consolidated net profit decreased 9% to Rs 116.3 crore in Q3 FY24 as against Rs 127.8 crore reported in the same period last year. However, revenue from operations declined 22.49% year on year (YoY) to Rs 1,795.8 crore in the quarter ended 31 December 2023.

New Listing:

Shares of Rashi Peripherals closed at Rs 320.55, representing a premium of 3.07% as compared with the issue price of Rs 311.

The scrip was listed at Rs 335, exhibiting a premium of 7.72% to the issue price. So far, the stock has hit a high of 342.50 and a low of 317.80. On the BSE, over 14.07 lakh shares of the company were traded in the counter so far.

Shares of Capital Small Finance Bank (SFB) settled at Rs 437, representing a discount of 6.62% as compared with the issue price of Rs 468.

The scrip was listed at Rs 435, exhibiting a discount of 7.05% to the issue price. So far, the stock has hit a high of 462.95 and a low of 421.10. On the BSE, over 1.80 lakh shares of the company were traded in the counter so far.

Shares of Jana Small Finance Bank (SFB) ended at Rs 367.50, representing a discount of 11.23% as compared with the issue price of Rs 414.

The scrip was listed at Rs 396, exhibiting a discount of 4.35% to the issue price. So far, the stock has hit a high of 408.80 and a low of 365. On the BSE, over 2.95 lakh shares of the company were traded in the counter so far.

IPO Update:

The initial public offer (IPO) of Vibhor Steel Tubes received bids for 36,39,20,733 shares as against 35,92,445 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (14 February 2024). The issue was subscribed 101.30 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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