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Nifty ends above 21,900; broader mkt rallies

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Last Updated : Feb 15 2024 | 5:04 PM IST
The key equity indices ended a volatile session with minor gains on Thursday. The Nifty settled above the 21,900 level. Trading was volatile due to expiry of weekly index options on the NSE. PSU bank, oil & gas and auto shares were in demand. On the other hand, FMCG, healthcare and media stocks corrected.

As per provisional closing data, the barometer index, the S&P BSE Sensex gained 227.55 points or 0.32% to 72,050.38. The Nifty 50 index added 70.70 points or 0.32% to 21,910.75.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.93% and the S&P BSE Small-Cap index gained 1.24%.

The market breadth was strong. On the BSE, 2,354 shares rose and 1,504 shares fell. A total of 80 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.36% to 15.23.

Economy:

India's merchandise trade deficit narrowed to $17.49 billion in January as exports edged up by 3.1 percent year-on-year despite the ongoing crisis in the Red Sea disrupting ship movement. The merchandise trade deficit stood at $19.80 billion in December 2023.

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According to data released by the commerce ministry on February 15, India's exports in the first month of 2024 amounted to $36.92 billion, up from $35.80 billion in January 2023 but down from $38.45 billion in December 2023.

Meanwhile, India's merchandise imports were also up 3.0 percent year-on-year last month at $54.41 billion, although they were down from $58.25 billion in December 2023.

IPO Update:

The initial public offer (IPO) of Vibhor Steel Tubes received bids for 1,05,25,55,526 shares as against 35,92,445 shares on offer, according to stock exchange data at 15:48 IST on Thursday (15 February 2024). The issue was subscribed 292.99 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.

Buzzing Index:

The Nifty PSU Bank index advanced 3.27% to 18,443.65. The index jumped 7.89% in three trading sessions.

Punjab & Sind Bank (up 5.81%), Bank of India (up 5.27%), Union Bank of India (up 4.82%), Punjab National Bank (up 4.8%) UCO Bank (up 4.58%), Bank of Maharashtra (up 3.84%), Canara Bank (up 3.64%), Indian Overseas Bank (up 3.21%), Bank of Baroda (up 2.95%) and Central Bank of India (up 2.82%) edged higher.

Stocks in Spotlight:

Hindustan Unilever (HUL) slipped 1.58% after the company informed that it is looking to collaborate with Andhra Pradesh Government on palm oil production in the state, which is expected to create over 1,000 jobs. The FMCG major seeks to partner with more than 15,000 farmers in Andhra Pradesh to create at least 30,000 hectares of oil palm plantations.

Glenmark Pharmaceuticals rose 1.67%. The company reported net loss of Rs 330.81 crore in Q3 FY24 as compared with net profit of Rs 290.76 crore in Q3 FY23. Revenue from operations declined 19.67% to Rs 2,460.29 crore in Q3 FY24 as compared with Rs 3,062.75 crore in Q3 FY23. The lower sales in the current quarter are mainly on account of a one‐time impact on the companys India business.

Aditya Birla Fashion and Retail (ABFRL) fell 2.16% after the company reported a consolidated net loss of Rs 107.60 crore in Q3 FY24 as compared with net profit of Rs 11.21 crore posted in Q3 FY23. Revenue from operations grew by 16.1% year on year to Rs 4,166.71 crore during the quarter.

NMDC jumped 4.86% after the companys standalone net profit (from continuing operations) surged 67.7% to Rs 1,492.68 crore in Q3 FY24 as against Rs 890.09 crore recorded in Q3 FY23. Revenue from operations climbed 45.43% year on year to Rs 5,409.90 crore in the quarter ended 31 December 2023.

Gujarat State Petronet (GSPL) rallied 4.75% after the company reported 53.47% jump in standalone net profit to Rs 262.18 crore on 37.73% increase in net sales to Rs 554.24 crore in Q3 FY24 over Q3 FY23.

Avenue Supermarts shed 0.44%. The company has invested an amount of Rs. 100 crore by subscribing to 28,969,000 equity shares of Rs. 10 each of Avenue ECommerce Limited (AEL), a subsidiary of the company at an issue price of Rs. 34.52 per share on preferential basis.

Jindal Poly Films slipped 2.55% after the company reported a consolidated net loss of Rs 19.43 crore in Q3 FY24 as against a net loss of Rs 96.66 crore in Q3 FY23. Revenue from operations rose by 11% YoY to Rs 983.76 crore in the third quarter.

Muthoot Finance declined 2.45%. The company reported a 14% jump in standalone net profit to Rs 1,027 crore on 19% increase in total income to Rs 3,176 crore in Q3 FY24 over Q3 FY23.

Global Markets:

European and Asian stocks advanced on Thursday after Wall Street resumed a rally as robust earnings helped overcome worries about persistent inflation.

UK's gross domestic product (GDP) shrank 0.3% in the fourth quarter of 2023 after contracting 0.1% in the prior three months (July to September 2023), official data showed.

GDP numbers from Japan showed that Asias second-largest economy had entered a technical recession. Provisional gross domestic product contracted 0.4% in the fourth quarter compared with a year ago, after a revised 3.3% slump in the July-September period.

US stocks rose on Wednesday as the robust earnings of big technology firms helped ease worries about persistent price pressure. Shares of ride-hailing platforms Lyft and Uber rallied, while Nvidia displaced Alphabet as the US stock market's third most valuable company.

US producer prices fell more than initially thought in December, revised government data showed on Wednesday. The producer price index for final demand dropped 0.2% in December instead of dipping 0.1% as previously reported, annual revisions of the PPI data published by the Labor Department's Bureau of Labor Statistics (BLS) showed.

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First Published: Feb 15 2024 | 3:52 PM IST

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