Market Commentary - Quick Review
The key equity indices ended with significant gains on Wednesday, ahead of the interim budget 2024. The Nifty closed above 21,700 level after hitting the day?s low of 21,448.85 in early trade. All the sectoral indices on the NSE ended in the green, with healthcare, pharma and realty shares gaining the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex jumped 612.21 points or 0.86% to 71,752.11. The Nifty 50 index added 203.60 points or 0.95% to 21,725.70.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 1.57% and the S&P BSE Small-Cap index rose 1.83%.
The market breadth was strong. On the BSE, 2,447 shares rose and 1,386 shares fell. A total of 81 shares were unchanged.
Economy:
Growth in India is projected to remain strong at 6.5% in both 2024 and 2025, the International Monetary Fund said on Tuesday. The report pegged global growth at 3.1% in 2024 and 3.2% in 2025. Growth in China is projected at 4.6% in 2024 and 4.1% in 2025, with an upward revision of 0.4% points for 2024 since the October 2023 World Economic Outlook, the IMF said, adding that in the US, growth is likely to fall from 2.5% in 2023 to 2.1% in 2024 and 1.7% in 2025. China and India account for most of the upward revision. In China, growth was supported by higher spending on disaster reconstruction and resilience projects. In India, strong domestic demand underpinned another increase in our growth estimate, the Fund noted.
New listing:
Shares of Nova Agritech ended at Rs 58.79 on the BSE, representing a premium of 43.39% as compared with the issue price of Rs 41.
The scrip was listed at Rs 56, exhibiting a premium of 36.59% to the issue price. The stock has hit a high of 58.79 and a low of 55. On the BSE, over 15.58 lakh shares of the company were ended in the counter.
IPO Update:
The initial public offer (IPO) of BLS E- Services received bids for 52,50,81,096 shares as against 1,37,02,904 shares on offer, according to stock exchange data at 15:30 IST on Wednesday (31 January 2024). The issue was subscribed 38.32 times.
The issue opened for bidding on Tuesday (30 January 2024) and it will close on Thursday (1 February 2024). The price band of the IPO is fixed at Rs 129-135 per share. An investor can bid for a minimum of 108 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Pharma index advanced 2.68% to 17,938.65. The index shed 0.87% in the past trading session.
Dr Reddys Laboratories (up 4.78%), Gland Pharma (up 3.43%), Biocon (up 3.15%), Sun Pharmaceuticals Industries (up 3.15%), Divis Laboratories (up 3.13%), Laurus Labs (up 2.77%), Cipla (up 2.65%), Lupin (up 2.22%), Glaxosmithkline Pharmaceuticals (up 2.11%) and Torrent Pharmaceuticals (up 1.93%).
On the other hand, Natco Pharma (down 0.62%), Pfizer (down 0.4%) and Aurobindo Pharma (down 0.29%) edged lower.
Dr Reddy's Laboratories jumped 4.78% after the drug major's consolidated net profit increased 10.57% to Rs 1,378.9 crore on 6.57% rise in revenues to Rs 7,214.8 crore in Q3 FY24 over Q3 FY23.
Sun Pharmaceutical Industries advanced 3.15% to Rs 1,418.50 after the drug major?s consolidated net profit grew 16.52% to Rs 2,523.8 crore on 9.52% rise in revenue from operations to Rs 12,156.86 crore in Q3 FY24 over Q3 FY23.
Piramal Pharma rallied 3.74% after the company reported a consolidated net profit of Rs 10.11 crore in Q3 FY24 as compared to a net loss of Rs 90.18 crore posted in Q3 FY23. Revenue from operations grew by 14.14% year on year to Rs 1,958.57 crore during the quarter, on the back of double digit growth across all the three businesses.
Stocks in Spotlight:
Tata Consultancy Services (TCS) rose 0.21%. The company announced a 15-year expansion of its partnership with Aviva, the UK?s leading Insurance, Wealth and Retirement provider, to transform Aviva?s UK Life business and enhance customer experience leveraging the TCS BaNCS based platform. As part of this, the end-to-end policy administration and servicing will expand to cover over 5.5 million policies, to be managed by Diligenta, TCS? FCA regulated subsidiary in the UK, on behalf of Aviva.
Voltas jumped 7.22% after the company?s net loss narrowed to Rs 28 crore in Q3 FY24 from Rs 110 crore in Q3 FY23. Consolidated total income for the quarter ended 31st December, 2023 was higher by 32% at Rs.2684 crores as compared to Rs. 2036 crores in the corresponding quarter last year.
KEC International jumped 4.52% after the company reported a consolidated net profit of Rs 97 crore in Q3 FY24, which is significantly higher as compared with a PAT of Rs 18 crore recorded in Q3 FY23. Revenues rose by 14% year-over-year (YoY) to Rs 5,007 crore during the period under review.
VIP Industries declined 2.34%. The luggage manufacturer?s consolidated net profit dropped 83.79% to Rs 7.15 crore in Q3 FY24 as compared with Rs 44.10 crore recorded in Q3 FY23.
SRF rallied 4.41%. The specialty chemical maker's consolidated net profit slipped 50.4% to Rs 253.43 crore on 12% decline in revenue from operations to Rs 3,053.04 crore in Q3 FY24 over Q3 FY23.
KPI Green Energy was locked in 10% upper circuit at Rs 1823.80 after the company?s wholly owned subsidiary KPIG Energia Private Limited received a new domestic order for a 5 MW solar plant under the captive power producer segment from Skywin Paper Industries Private Limited.
Global Markets:
European stocks traded lower while Asian stocks traded mixed on Wednesday ahead of the rate decision from the U.S. Federal Reserve and as investors assessed a slew of economic data from across the region.
China?s factory activity contracted for a fourth consecutive month in January. The official non-manufacturing managers? index rose to 50.7 in January from 50.4 in December, according to data from the National Bureau of Statistics released Wednesday.
US stocks ended mixed on Tuesday ahead of the much-awaited US Fed's policy outcome.
The International Monetary Fund slightly increased its global growth forecast for 2024, noting that a hard landing is looking less likely but cited ongoing geopolitical conflicts as potential overhangs to global growth. The IMF raised its global growth projection to 3.1% in 2024, which is 0.2% higher than its forecast from October 2023. The International Monetary Fund (IMF) has raised its 2024-25 GDP growth forecast for India by 20 basis points to 6.5%.
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