Market Commentary - Quick Review
The headline equity indices ended with modest losses on Thursday. Trading was volatile due to January F&O series expiry today. The Nifty settled around the 21,350 mark. IT, pharma and healthcare shares witnessed selling pressure while realty, media and metal shares were in demand.
As per provisional closing data, the barometer index, the S&P BSE Sensex down 359.64 points or 0.51% to 70,700.67. The Nifty 50 index added lost 101.35 points or 0.47% to 21,352.60.
In the broader market S&P BSE Mid-Cap index declined 0.36% and the S&P BSE Small-Cap index gained 0.54%.
The market breadth was positive. On the BSE, 2,141 shares rose and 1,673 shares fell. A total of 85 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 3.54% to 13.87.
The domestic stock market will remain shut on Friday, 26 January 2024 on account of Republic Day.
IPO Update:
The initial public offer (IPO) of Nova Agritech received bids for 2,72,15,54,245 shares as against 2,54,14,74 shares on offer, according to stock exchange data at 15:46 IST on Thursday (25 January 2024). The issue was subscribed 107.09 times.
The issue opened for bidding on Tuesday (23 January 2024) and it will close on Thursday (25 Thursday 2024). The price band of the IPO is fixed at Rs 39-41 per share. An investor can bid for a minimum of 365 equity shares and in multiples thereof.
Buzzing Index:
The Nifty IT index declined 1.72% to 36,451.60. The index gained 1.56% in the past trading sessions.
Tech Mahindra (down 6.12%), Coforge (down 2.57%), LTIMindtree (down 2.31%), L&T Technology Services (down 2.03%), Mphasis (down 1.8%), Wipro (down 1.68%), HCL Technologies (down 1.67%), Persistent Systems (down 1.02%), Tata Consultancy Services (down 0.86%) and Infosys (down 0.08%) slipped.
Tech Mahindra tumbled 6.12% after the company's consolidated net profit rose 3.34% to Rs 510.4 crore on 1.85% increase in revenue from operations to Rs 13,101.3 crore in Q3 FY24 over Q2 FY24. On a year on year (YoY) basis, Tech Mahindra's net profit dropped 60.64% while revenue fell 4.61% in Q3 FY24.
Stocks in Spotlight:
Bajaj Auto rallied 5.35% after the auto maker's standalone net profit climbed 36.91% to Rs 2,041.88 crore on 30.04% increase in revenue from operations to Rs 12,113.51 crore in Q3 FY24 over Q3 FY23. On consolidated basis, the company's net profit increased 38.02% to Rs 2,032.62 crore on 30.55% rise in revenue from operations to Rs 12,165.33 crore in Q3 FY24 over Q3 FY23.
Tata Steel shed 0.96%. The steel major reported net profit to Rs 522.14 crore in Q3 FY24 as against net loss of Rs 2,501.95 crore posted in Q3 FY23. Revenue from operations fell 3.1% to Rs 55,311.88 crore in Q2 FY24 as compared with Rs 57083.56 crore in Q3 FY23.
TVS Motor Company slipped 2.76% after the company reported 68% increase in standalone net profit to Rs 593 crore in Q3 FY24 as compared with Rs 353 crore posted in Q3 FY23. Revenue from operations jumped 26% YoY to Rs 8,245 crore in Q3 FY24.
Hindustan Petroleum Corporation (HPCL) slipped 4.91% after the company?s standalone net profit slumped 89.66% to Rs 529.02 crore in Q3 FY24 as against Rs 5,118.16 crore recorded in Q2 FY24. However, Net sales (excluding excise duty) stood at Rs 1,10,849.16 crore in Q3 FY24, up 16.29% from Rs 95320.4 crore recorded in Q2 FY24.
On year on year basis, the company?s net profit zoomed 206.8% while revenue was higher by 1.49% during the quarter.
ACC was locked in an upper circuit of 15% after the cement manufacturer reported consolidated net profit of Rs 537.67 crore in Q3 FY24, steeply higher than Rs 113.19 crore in Q3 FY23. Revenue from operations increased 8.32% year on year (YoY) to Rs 4,914.36 crore in the quarter ended 31 December 2023.
DLF gained 1.43% after the company reported consolidated net profit of Rs 655.71 crore in Q3 FY24 as compared with net profit of Rs 517.94 crore posted in Q3 FY23. Total income rose to Rs 1,643.51 crore in Q3 FY24 from Rs 1559.66 crore recorded in Q3 FY23.
Balkrishna Industries slipped 6.80% after the firm reported 7.84% decline in net profit to Rs 309.09 crore on 2.42% rise in revenue from operations to Rs 2,279.76 in Q3 FY24 over Q2 FY24. On year on year (YoY) basis, the company?s standalone net profit surged 210.27% while revenue grew 6.42%.
Global Markets:
Markets in Europe declined on Thursday as investors were cautious ahead of the monetary policy decision from the European Central Bank.
Asian stocks ended higher as markets respond to China?s central bank cutting reserve requirements for the country?s lenders.
The People?s Bank of China announced that it would reduce the amount of funds its banks are required to hold as reserves early next month in a bid to boost its struggling economy. Reserve ratio requirements for banks will be cut by 50 basis points from February 5, which will provide 1 trillion yuan ($139.8 billion) in long-term capital.
Shares of electric vehicle makers and suppliers of Tesla in Asia-Pacific fell after the U.S. EV leader warned of bleak volume growth. Tesla warned that vehicle volume growth in 2024 may be notably lower than last year.
Overnight in the U.S., the S&P 500 rose Wednesday as Netflix led a broader rally among technology names, pushing the broader market to new heights. Netflix shares surged more than 10% after the streamer said its total subscriber count hit an all-time high of 260.8 million. The broad-based index eked out a gain of 0.08% to clinch a new all-time closing high. The Nasdaq Composite rose 0.36% helped by the tech rally. In contrast, the Dow Jones Industrial Average fell 0.26%, to 37,806.39, dragged by Verizon and 3M a day after they reported earnings.
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