Closing Bell: Nifty below 22,150, Sensex down 353 pts; IT, metals top drag

The Nifty opened on a weak note and drifted lower during the day. It closed in the red down ~90 points. On the daily charts we can observe that the Nifty has been in consolidation mode for since last four trading sessions. It is broadly trading in the range 21800 – 22300. The consolidation can continue until it decisively breaks out of the range. The Bollinger bands on the hourly time frame chart is contracting indicating that there could be further range-bound action going ahead.

The daily and hourly momentum indicator is providing divergent signals which can lead to a range-bound move over the next few trading sessions. The hourly moving averages placed in the range 22130 – 22100 shall act as an immediate crucial support while 22275 – 22300 shall act as an immediate hurdle zone from short term perspective.

As far as the bank Nifty is concerned, it has been range-bound between 46400 – 47400. The range-bound action is likely to continue in the absence of a decisive move in the key heavyweights of the index.

The Bank Nifty index experienced a tussle between the bulls and bears, resulting in a volatile trading session. Despite the volatility, the overall undertone remains bullish, contingent on the index holding the support levels around 46500-46400 on a closing basis. The immediate resistance on the upside is situated at 46800, and a decisive break above this level is anticipated to propel the index towards 47000, where the highest open interest is concentrated on the call side.

The index has slipped below the support of 22,200 and closed below it. On the daily chart a small bodied red candle has formed. Overall, the index might remain sideways during the next few days. The range is likely to stay between 22,000 and 22,200. Any breakout on either side might confirm the future directional trend.

The rupee gained by 0.05rs, reaching 82.88 against the dollar. This increase was supported by the dollar index remaining low, hovering near 103.75$. The pullback in the dollar index has contributed to the rupee's ability to stay above 83.00. If data releases throughout the week, such as new home sales, core durable orders, CB consumer confidence, and GDP, come in weaker than expected, it could further bolster the rupee's rally towards the 82.50 mark.

The upcoming week is anticipated to be data-heavy, with several major economic releases scheduled. These events will likely keep both the US dollar and the rupee busy as traders react to the incoming data.

Rupee's broad range is expected to remain between 82.70 and 83.15, reflecting the ongoing volatility and uncertainty in the currency markets.

Indian equities commenced the week on a tepid note and as the day progressed, the Index compounded its losses. In the mid-session, an attempt of recovery was seen but failed to hold higher levels and finally settled the day at 22,122.05 with a loss of 90.65 points.

Among the sectors, Energy was the top performer while IT and Metal corrected the most. By moving in tandem with the Frontline Index, Mid and Smallcaps ended the day in red.

With a bearish divergence in RSI, the Index has made a small bearish candle. The Index is oscillating in a range of 22,050-22,250 and breakout on either side will provide a proper direction.

Indian rupee ended marginally higher at 82.90 per dollar on Monday versus Friday's close of 82.94.

Benchmark indices ended lower in the volatile session on February 26 with Nifty below 22,150.

At close, the Sensex was down 352.67 points or 0.48 percent at 72,790.13, and the Nifty was down 90.70 points or 0.41 percent at 22,122. About 1538 shares advanced, 1907 shares declined, and 107 shares unchanged.

Asian Paints, Hindalco Industries, Apollo Hospitals, Divis Labs and Titan Company are among the top losers on the Nifty, while gainers are Power Grid Corp, L&T, Adani Enterprises, BPCL and Tata Consumer.

Among sectors, Information Technology and Metal down 1 percent each, while Bank and Pharma down 0.5 percent each. On the other hand, oil & gas, power and capital goods up 0.5-1 percent.

BSE Midcap index lost 0.4 percent, while Smallcap index ended on a flat note.

The market took a breather after the recent runup as investors' focus shifted from earnings to economic triggers this week. The US and India GDP data, eurozone inflation, and US jobless claim data will be influential economic numbers for the central bank to take a call on interest rates, which will dictate market sentiment in the near term.

The uncertainty over demand and high US inventory pushed oil prices down.

-Neutral call, target Rs 175 per share
-Company’s trading segment is likely to report strong earnings in Mar’24
-Recent collapse in US Henry Hub prices plus stable oil prices will drive company’s trading margins up QoQ
-Consensus projects a quarterly decline
-Meaningful earnings surprise can be supportive of company’s stock into results

Buy call, target Rs 2,650 per share
Feeling confident about company’s ability to achieve desired vision of becoming the No.-2 player
Company has planned to be Pan-India by FY25 end
Company is 1st to launch paints at this scale in one shot
Company 1st to launch paints business with plans to add 500 mlpa beyond the 1,332 mlpa
Company’s strategy - 5 Ds: Design, Develop, Distribute, Disrupt and Delight
Company has developed differentiated products versus competition
Company has a clear dealer pull plan in place

The dollar held fairly steady on Monday ahead of a macro-packed week that could shed more light on the global rate outlook, with a U.S. inflation reading taking centre stage.

The core personal consumption expenditures (PCE) price index - the Federal Reserve's preferred measure of inflation - is due on Thursday, where expectations are for a 0.4% increase on a monthly basis.

Sensex Today | Nifty Pharma index down 0.5 percent dragged by Alkem Labs, Divis Labs, Lupin

-Neutral call, target cut to Rs 2,850 from Rs 3,300 per share
-Cut EPS estimate for FY25/26 by 5.2 percent/10.9 percent respectively
-Lower target multiple to 52x (from 58x)
-Birla details its paint entry strategy, way more comprehensive than assumed
-Birla’s entry strategy based on product superiority & aggressive marketing spend

Infibeam Avenues rises after the fintech firm buys a 20 percent stake in US based enterprise app and AI developer XDuce. Infibeam invested $10 million for the stake, according to the company.

The Sensex was down 366 points or 0.50 percent at 72,776.54, and the Nifty was down 89.30 points or 0.4 percent at 22,123. About 1756 shares advanced, 2187 shares declined, and 146 shares unchanged.

-Total credit card spending in Jan’24 increased 30 percent YoY for the industry
-Cards-In-force increased 21 percent YoY for the industry
-Daily spend data show 15 percent decline in card spend post RBI Limits on commercial card arrangements
-In 10MFY24, top three card issuers lost market share in both credit card spend & cards-in-force

Paytm locked in upper circuit limit for sixth consecutive session with a day of breather. It remains to be highlighted the stock despite the recent winning streak has wiped off more than 30% in the month of Feb. The stock lost 33% over the last one year.

"I won't advice investing in Paytm. The simple reason is that there are many other opportunities available at much more attractive valuations and prices right now. Even within the UPI ecosystem, Paytm isn't the market leader, and considering the regulatory issues they've faced, I believe more challenges may arise once things settle down. So, I'll stay away from Paytm until everything is resolved. Instead, there are many promising opportunities in the BFSI space worth considering. Betting on them could lead to more peaceful and profitable investments," said Asutosh Mishra, Head - Research, Institutional Equity at Ashika Stock Broking.

The most critical aspect regarding Vodafone is the equity raising. A significant infusion of equity is necessary, either from existing promoters or new investors. Without this substantial equity injection, the company may struggle to sustain its current financial metrics, given the level of debt it carries.

The continuous loss of customers further emphasizes the urgency of this matter. While the business proposition aligns well, substantial financial backing is imperative. Despite ongoing speculation, concrete progress on fundraising has yet to materialize after two years of discussions. Therefore, I will maintain my stance on the stock until a definite plan for fundraising emerges.

Following that, attention must turn to the company's future strategies and growth prospects, especially considering the relatively sparse competition in the telecom sector. However, it's evident that the company urgently requires significant investment, a need that has gone unmet for the past two years.

The overall trend in crude oil remain bearish as demand from US has dropped in last two months, while China resumed from Lunar Holiday, but business activities have remained lacklustre, as the New and existing home prices in the top Chinese 70 cities continued to slide, falling by 0.37% and 0.68% M/M respectively in January.

The delay in rate cuts expectation from US Fed is also affecting the investors sentiments.

Outlook: In the absence of major economic data and talks of UN vote for ceasefire between Hamas and Israel have taken some risk off from the price. WTI April is expected to trade in the range of $78-$73/b, with bearish biased.

-Buy call, target Rs 4,360 per share
-Company is set to beat its own & our order inflow estimate
-Order inflow estimate beat is led by bullet train, defence & private capex in Q4
-Order inflow estimate beat as CCS approved placement of large defence orders this week
-Large order includes two platforms on L&T
-Market is worried of middle-east orders post-Aramco’s advisory
-Company’s core right to win is Aramco’s diversified portfolio & market
-Believe company’s margin will improve from Q4FY24 on lower legacy orders in its backlog

Sensex Today | Nifty Auto index up 0.3 percent led by Bharat Forge, TVS Motor, Bosch

Alkem Laboratories informed you that few articles have been published by the mainstream media and press alleging that the Company has been involved in tax evasion.

We categorically deny these allegations and rumours as published in these articles and state that information published is factually incorrect. We would also like to specifically state that we are not aware of any information that could have had an impact on the trading of the Company’s equity shares. The publication of these articles do not have any material impact on the company, said Alkem Labs.

The company asserts its commitment to compliance and transparency, having fully cooperated with the Income Tax Department officials during their survey proceedings in September 2023. The company had subsequently received certain queries from the IT department, which have been addressed by the company, it added.

Advait Infratech has announced collaboration with Carbon Technology Energy (CTE) for development of a prototype fuel cell utilizing carbon-based plates, a departure from the conventional bimetallic or graphite plates.

Shakti Pumps (India): The company has received its 3rd work order under the KUSUM-3 scheme from Haryana Renewable Energy Department (HAREDA) for 2,443 pumps. The total amount of the work order is for around Rs 84.30 crore.

-Buy call, target Rs 280 per share
-Vodafone Idea evaluating options to raise funds, a catalyst for the company
-Company a beneficiary from Vodafone Idea’s network expansion
-At 5X FY25 EBITDA multiple find valuation attractive & see risk-reward favourable

Gold prices eased on Monday, hovering below the over two-week peak hit in the previous session, as fading odds of an early U.S. interest rate cut weighed on the non-yielding metal, although growing tensions in the Middle East capped further losses.

Spot gold was down 0.1% at $2,034.6 per ounce, as of 0812 GMT, after climbing to its highest level since Feb. 7 on Friday. U.S. gold futures edged 0.2% lower to $2,044.5 per ounce.

The Gujarat Pollution Control Board has directed Valiant Organics to close operations of its manufacturing plant at GIDC Jhagadia, Gujarat. The company will submit pointwise compliance as well as justification and will be submitting all the relevant documents for revocation direction at the earliest.

Sensex Today | Market at 2 PM

The Sensex was down 212.83 points or 0.29 percent at 72,929.97, and the Nifty was down 52.40 points or 0.24 percent at 22,160.30. About 1546 shares advanced, 1872 shares declined, and 111 shares unchanged.

Newgen Software Technologies' subsidiary in Saudi Arabia has executed agreements with a customer to provide solutions for the digital transformation of card origination business. The aggregate value of agreements is $1.3 million.

-Hold call, target Rs 2,050 per share
-Zurich insurance will now buy a 70 percent stake in Kotak General Insurance in a single tranche through primary & secondary acquisitions
-Earlier, it was to acquire 51 percent initially & 19 percent within 3 years
-This business is small - 0.5 percent premium market share, 0.3 percent of net-worth
-The business incurred Rs 120 crore loss in FY23
-Valuation unchanged at Rs 7,900 crore (post-money) & higher than SOTP value of Rs 5,400 crore

Shares of Vodafone Idea Ltd fell more than 2 percent on February 26, a day ahead of the Aditya Birla group company's board meeting to discuss the proposal for a large capital fund raise.

Vodafone Idea traded 2.6 percent lower at Rs 17.25 on the National Stock Exchange in the afternoon trade.

No listed company of the Aditya Birla group is likely to participate in the fundraising plans and the promoters will fund the company, CNBC-TV18 said in a report, citing sources.

The shares of the telecommunication company surged 14 percent in the past two sessions, buoyed by the news of the fund raise plans. Read More

High networth individual Ujwal Kumar Pagariya sold 5.5 lakh equity shares in Olectra Greentech via open market transaction at an average price of Rs 2,096 per share, valuing at Rs 115.28 crore.

Sensex Today | BSE Capital Goods index rose 1 percent supported by Larsen & Toubro, Grindwell Norton, Rail Vikas Nigam

Infibeam Avenues: The AI-powered fintech company has announced investment of $10 million for acquisition of 20% strategic stake in XDuce, an enterprise application and AI development company based in the United States, to penetrate the US markets with CCAvenue Payment Gateway and PhroneticAI Solutions.

Supreme Industries: The company has signed the power delivery agreement (PDA) and security subscription and shareholder agreement (SSSHA) for 33.75 Mwp (25 Mw) solar power project under captive mode with O2 Renewable Energy XIV, a special purpose vehicle (SPV) formed by O2 Energy SG PTE. The company will be investing about Rs 12.49 crore and will be holding 26 percent equity shares in the O2 Renewable Energy XIV.

Zaggle Prepaid Ocean Services has signed co-branding partnership and marketing agreement with Nishi Forex and Leisure, for 5 years. Zaggle can leverage existing corporate base to sell forex cards to employees of the corporate client, and it can be tightly coupled with Zaggle expense management software. Zaggle also signed customer service agreement with Benetton India.

Owais Metal And Mineral Processing Limited’s (OMMPL) 42.69 crore IPO opens for Subscription from Monday 26th February, 2024.

Company is offering 49,07,200 fresh equity shares of Rs 10 face value at an issue price range of Rs 83.00-87.00 per equity share on NSE Emerge, SME platform of NSE.

 Stock Market LIVE Updates | Morgan Stanley View On OMCs

-Integrated margins remain strong with gasoline & diesel margins near USD 20/bbl
-Transport fuel demand still surprises positively
-Hardware upgrades & refining golden age drive next leg of earnings upgrades
-HPCL and BPCL preferred picks

Sensex Today | Nifty Pharma index down 1 percent dragged by Alkem Lab, Divis Labs, Lupin

Promoter Naresh Anirudha Patil sold 15,20,088 equity shares (which is equivalent to 2% of paid-up equity) of Kolte-Patil Developers at an average price of Rs 487.81 per share. However, Whiteoak Capital Mutual Fund bought 4,09,834 equity shares in the company at an average price of Rs 487.5 per share.

Promoter Sasikala Raghupathy sold 24,16,344 equity shares (equivalent to 3.3% of paid-up equity) of BGR Energy Systems at an average price of Rs 89.59 per share. In the current month, promoter already offloaded 31,70,882 equity shares in the company.

Sensex Today | Nifty PSU Bank index down 0.4 percent dragged by UCO Bank, PNB, J&K Bank

JSW Infrastructure has received Letter of Award from V O Chidambaranar Port Authority for mechanization of North Cargo Berth-III (NCB-III) for handling dry bulk cargo at the port on design, build, finance, operate and transfer (DBFOT) basis through PPP basis.

Sensex Today | BSE Power index up 0.5 percent supported by JSW Energy, Adani Energy, Power Grid Corporation

Gensol Engineering announced the award of two significant EPC contracts, underscoring our commitment to India's renewable energy sector. The first, a 250 MWac/350 MWdc ISTS solar power project in Rajasthan, showcases Gensol's emerging leadership in the industry and its support for India's sustainable energy transition.

Additionally, the 50MWac/72.5MWdc solar power project in Maharashtra.

These projects, valued at Rs 337.70 crore, including taxes, represent a significant milestone in Gensol's growth and strategic market position.

Sensex Today | BSE Bank index down 0.5 percent dragged by AU Small Finance Bank, Axis Bank, Kotak Mahindra Bank

Sensex Today | Market at 12 PM

The Sensex was down 389.69 points or 0.53 percent at 72,753.11, and the Nifty was down 111.70 points or 0.50 percent at 22,101.00. About 1503 shares advanced, 1878 shares declined, and 116 shares unchanged.

The Railways Strategic Business Group of L&T Construction has secured a significant order Contract to construct the Jakarta Mass Rapid Transit (MRT) Project (Phase 2A) (Contract Package CP205) for MRT Jakarta through L&T’s long-term Japanese partner, Sojitz Corporation. This Contract marks the first EPC Railway Systems Order for L&T in the ASEAN region.

Tourism Finance Corporation Of India Ltd's shares rose 3% on Monday as the company's Board approved allotment of 88.91 lakh shares to non-promoters at Rs 225 per share.

"The Board of Directors in its meeting held today, discussed and approved to issue and allot up to 88.9 lakh fully paid up equity shares of face value of Rs 10 each at an issue price of Rs 225 including a premium of Rs 215 each aggregating upto Rs 200.04 crore by way of preferential issue on a private placement basis," said TFCI in a stock exchange filing.

TFCI said the allotees are Aditya Kumar Halwasiya (Individual), Cupid Limited (Body Corporate) and Columbia Petro ChemPrivate Limited (Body Corporate) who will be allotted 22.23 lakh shares, 22.23 lakh shares and 44.45 lakh shares, respectively. Read More

Biocon has given a corporate guarantee of $20 million in favour of Mizuho Bank to secure term loan facility of $20 million extended to company's step-down subsidiary Biocon Generics Inc by the bank. The corporate guarantee is valid for 5 years.

Stock Market LIVE Updates | Nifty IT worst hit sectoral index, down 1.6% dragged by TCS, Persistent, Mphasis

Neutral call, target at Rs 175 per share
Co’s trading segment is likely to report strong earnings in Mar’24
Recent collapse in US Henry Hub prices plus stable oil prices will drive co’s trading margins up QoQ
Consensus projects a quarterly decline
Meaningful earnings surprise can be supportive of co’s stock into results

Integrated margins remain strong with gasoline and diesel margins near $20/bbl
Transport fuel demand still surprises positively
Hardware upgrades and refining golden age drive next leg of earnings upgrades
HPCL and BPCL are preferred picks

Skipper shares surged 13 percent and hit an all-time high in early trade on February 26 after it signed a Rs 737-crore contract with Power Grid Corporation of India.

The power transmission & distribution structures manufacturer bagged the order for design, supply and construction of 765 kV transmission line project.

-Outperform call on Asian Paints, target Rs 4,000 per share
-Grasim shared a focus on driving distribution based on product quality
-Grasim shared a focus on driving distribution based on deeper contractor/painter connect
-Company’s target is of Rs 1,000 crore net sales and positive EBITDA in 3 years
-Company’s target makes us believe discounting levels will not rise sharply for the industry
-Prefer Asian Paints over smaller players like Berger Paints

Infibeam Avenues share price rose 4 percent in the opening trade on February 26 after the financial technology company's board approved acquisition of a 20 percent stake in the US-based XDuce Corporation.

Founded in 2006, XDuce is a leading enterprise app and AI development company that specialises in building innovative AI solutions for businesses looking to optimise their internal operations and customer-facing systems for diverse industry verticals.

The acquisition will be completed within 90 days subject to necessary approvals for cash not exceeding $10 millions. Read More

Sensex Today | BSE Oil & Gas index down 0.5 percent dragged by BPCL, IOC, HPCL

Medplus Health Services shares added 3 percent in early trade on February 26 even after the company's subsidiary received a suspension order from Drugs and Control Authorities of Mahabubnagar, Telangana.

The assistant director of Drugs Control Administration, Mahabubnagar, Telangana, has issued temporary suspension of drug licence for nine days to a store at in Wanaparthy, Mahabubnagar.

The company received the order on February 23 and estimated a potential revenue loss of Rs 1.63 lakh. Read More