Stock markets close strong in BAPS Temple opening week: Ahlan Modi! | Weekly Update February 17th
Hello Readers!
After a bit of consolidation and volatility, the Indian stock markets managed to edge higher and close on a positive note this week. Was it the temple opening effect, or did the bulls continue to topple the bears? In this newsletter we will discuss key events of the week, an update on last week’s market movements and things to watch out for this week, upcoming IPOs and listings this week and more.
🧾In this Article
Weekly Market Wrap-up
Key results this week
Quick bites
Stocks in News
Sustainability Corner
IPO news
Cover story: BAPS Temple opening in UAE
Upcoming key financial events for February 2024
📈 Weekly Update
Despite a volatile week, a subdued opening followed by some consolidation the Indian stock markets managed to end the week on a positive note with key Indian benchmark indices clocking over 1% weekly gains. The overall market sentiment seemed positive, with the Sensex and Nifty both registering gains of 1.16% (22,040.7) and 1.19% (72,426.64) respectively over the week. Friday’s closing witnessed a modest increase as well, with Sensex rising by 0.52% and Nifty by 0.59%. However, the broader markets underperformed benchmark indices as the Nifty Midcap 100 index gained half a percent while Nifty Smallcap 100 index fell half a percent.
Among the Nifty 50 stocks, M&M (11.46%), Wipro (10.77%), UPL (7.39%), Bajaj Auto (7.38%) and BPCL (6.63%) emerged as the top gainers. Conversely, Hindalco Industries (-12.79%), Grasim Industries (-2.82%), ITC (-2.61%), Hindustan Unilever (-2.03%) and Sun Pharma (-1.46%) were the top losers.
Among the sectoral indices, most sectoral indices ended in green with Nifty Auto topping the chart clocking a remarkable 4.33% weekly return, followed by Nifty PSU (2.74%), Nifty IT (2.06%), Nifty Energy (1.65%) and and Bank Nifty (1.64%). On the losing side, Nifty Metal (-1.47%) performed the worst among sectoral indices, followed by Nifty Media (-1.23%) and Nifty FMCG (-0.64%).
Foreign investors have been cautious in February and were net sellers of Indian equities worth ₹3,776 crores so far in the month mainly due to spike in US bond yields and uncertainty over interest rates in India and globally. Foreign portfolio investors pulled out ₹25,743 crore worth Indian equities in January too.
On the global front, the S&P 500 ended the week in red, closing -0.42% down at 5005.57 while Nasdaq ended with 1.28% weekly loss, ending the week at 15,775.65, down 204.96 points. UK’s FTSE 100 Index ended the week with 1.84% gain, Germany’s DAX gained 1.13%, and France’s CAC 40 Index advanced 1.58% on upbeat corporate earnings, hitting new highs during the week. Japan’s Nikkei 225 Index stole the show clocking a weekly gain of 4.3%.
With corporate earnings almost wrapping up, next week the markets will be guided by rupee movement, crude oil prices, domestic macroeconomic data, foreign capital inflow and global cues. You should also watch out for FOMC (Federal Open Market Committee) minutes expected on 21 Feb.
This will be a busy week for the primary market with 5 new IPOs raising funds this week and a number of new listings. More on that in the IPO corner below.
3QFY2024 results this week
- 📈 Eicher Motors achieved a 34.43% year-on-year increase in net profit, reaching ₹ 995.97 crore, with revenue climbing by 12.28% to ₹4,179 crore.
- 📈 Hindalco recorded a 71% rise in net profit, reaching ₹2,331 crore, despite a slight 0.6% decrease in revenue to ₹52,808 crore.
- 📈 M&M experienced a significant 60% year-on-year surge in net profit, reaching ₹2,454 crore, alongside a robust 16% increase in revenue, totaling ₹ 25,642 crore.
- 📈 Paytm reported a rise in revenue by 38 percent to ₹2,850.5 crore, compared to ₹2,062.2 crore in the year-ago period.
- 📈 NBCC (India) Ltd reported a 59 percent increase in its consolidated net profit to ₹ 113.56 crore in the quarter ended December 2023 on higher income, compared to ₹ 71.49 crore in the year-ago period.
- 📈 NMDC’s net profit surged by 62.6% yoy to Rs 1,469.7 crore.
🍟 Quick Bites
- 🌐 Ministry of External Affairs (MEA) launched UPI in Sri Lanka and Mauritius, also introducing RuPay services in Mauritius.
- ⬇️ India’s retail inflation dropped to a 3-month low of 5.10% in Jan 2024 while wholesale inflation dropped to its 3-month low at 0.27% in January from 0.73% in Dec 2023.
- 🛢️ India’s vegetable oil imports in Jan declined 28% year-on-year to 12 lakh tonnes, as per the Solvent Extractors Association of India (SEA).
- 💰 India’s net direct tax collection reached 80% of its revised target for this financial year, amounting to ₹ 15.60 lakh crore.
- 🏙️ Urban employment rate hit 6.5% in the Oct-Dec period, marking the lowest in nearly 4 years, while female labour force participation reached its highest at 25%.
- 🏭 India’s industrial production growth stood at 3.8% in Dec, compared to 2.4% in Nov 2023.
- 🚗 Vehicle registrations surged 15% year-on-year in Jan to 21.28 lakh vehicles, according to FADA.
- 📈 Stock markets will open on 2nd March (Saturday) to test quick transition to a disaster recovery site.
- 🏠 Sales of luxury homes (costing over ₹ 4 crore) soared 75% year-on-year, with Delhi-NCR recording the highest growth, as reported by CBRE.
- 🥤 Coca-Cola aims to increase its capital investment for its India business, which experienced robust growth in 2023.
- 🪙 RBI’s gold purchase in 2023 hit its lowest in 6 years.
- 🚗 Passenger vehicle sales from April-Jan in FY24 rose 14% to 3.93 lakh units, according to SIAM.
- 📉 In January, India’s trade deficit amounted to $17.5 billion, down from $19.8 billion in December, with exports growing by 3.1% and imports by 3%.
- ⚖️ The Supreme Court’s ruling has invalidated electoral bonds.
- 🏦 Gujarat International Finance Tec-City (GIFT) reported a total banking asset size of $52 billion as of January 2024.
- Hero MotoCorp Expects Two-Wheeler Industry To See Double-Digit Revenue Growth Next Fiscal
- 💳 PayU is teaming up with the National Payments Corporation of India (NPCI) to introduce the ‘Credit Lines on UPI’ feature on its platform.
📰 Stocks in News
- 🏥 Dr. Reddy’s Hyderabad-based Bachupally facility received voluntary action needed status from the USFDA.
- ✈️ SpiceJet is set to trim its workforce by at least 1,000 employees to curb expenses.
- 🏗️ Tata Steel scrapped its proposed merger with TRF.
- 🛢️ L&T’s hydrocarbon division secured new orders from a client in the Middle East.
- ♻️ Vedanta introduced an online marketplace for aluminum product sales.
- 🌐 Sterlite Power received a substantial funding of ₹2,400 crore from REC Power Development and Consultancy for its transmission project in Beawar, Rajasthan.
- 🏭 JSW Steel announced a partnership with Japan-based JFE Steel Corp for a ₹5,500 crore factory project in Karnataka.
- 🔧 Bosch declared an interim dividend of ₹205 per share.
- ⚡ BHEL secured an order to establish an 800 MW thermal power plant in Yamunanagar, Haryana.
- ⚖️ Adani Power’s proposal to acquire a full stake in Coastal Energen Pvt Ltd was greenlit by the Competition Commission of India.
- ✈️ InterGlobe (IndiGo) inked a finance lease deal with Singapore-based BOC Aviation for 4 A320 Neo aircraft.
- 🏠 Godrej Properties completed the acquisition of a 12.5-acre plot in Hyderabad, earmarked for a residential project valued at ₹3,500 crore.
- ⛽ BPCL inked an MoU with Cochin International Airport for setting up a green hydrogen plant on its premises.
- 📶 HFCL clinched a ₹179 crore contract from BSNL for supplying 4G and 5G network equipment.
- 💄 Shoppers Stop’s beauty segment defies inflation, achieving its highest-ever quarterly sales of ₹262 crore, growing by 10% in the quarter ended December.
- 🏢 Tejas Networks received incentives worth ₹27.78 crore under the PLI scheme for telecom gear in FY23.
- ⛏️ NMDC: Achieved a 15% rise in iron ore production to 12.22 million tones in Oct-Dec 2023.
- 🔌 Coal India collaborated with Haryana Power Purchase Centre to procure 800 MW of power from Mahanadi Basin Power Ltd (MBPL) under an MoU.
- 💉 Lupin introduced Ganirelix Acetate injection following approval from USFDA.
🌱 Sustainability Corner
- ☀️ Adani Green commenced operations of a 551 MW solar power facility at its renewable energy park in Khavda, Gujarat.
- ⚡ JSW Group unveiled plans for a $5 billion electric vehicles (EVs) venture in Odisha.
- 🚗 Tata Motors adjusted the prices of its EV models due to cost-effective battery solutions.
- 🌎Gensol Engineering, Matrix Gas and Renewables consortium win SIGHT programme production-linked incentive (PLI) bid for 63-MW green hydrogen electrolyser, which will contribute to India’s ambitious goal of producing 5 million metric tons of green hydrogen annually by 2030.
🚀 IPO Corner
🏦 Capital Small Finance Bank’s IPO, closed on 9th February 2024, saw 4.17 times subscription.
💼 Rashi Peripherals IPO was subscribed 62.95 times by 9th February 2024.
💰 Jana Small Finance Bank’s IPO closed with 18.5 times subscription, with QIB portion oversubscribed by 38.75 times.
⭐ 5 new IPOs are lined up this week including two mainboard IPOs and three SME. The biggest of them will be Juniper Hotels with an IPO size of ₹1,800 crores.
🎯 New Listings this week: Wise Travel Limited (19 Feb), Esconet Technologies Limited (19 Feb), Kalahridhaan Trendz Limited (23 Feb), Thaai Casting Ltd (23 Feb), Atmastco Ltd (23 Feb) and Interiors and More Ltd (23 Feb)
Cover Story: BAPS Temple opening – Ahlan Modi
Prime Minister Narendra Modi recently graced the inauguration of the BAPS Swaminarayan Mandir in Abu Dhabi, symbolizing a new chapter in the rich tapestry of Indo-UAE relations. This event, which marks the first Hindu temple in the city, reflects not only the cultural diversity of the UAE but also the strong bonds shared between the two nations.
The journey towards this momentous occasion began with PM Modi’s first visit to the UAE in 2015, where discussions on the construction of the temple laid the foundation for a landmark partnership. Fast forward to today, and the BAPS Mandir stands as a testament to the enduring friendship between India and the UAE.
A Beacon of Cultural Heritage
In his address, PM Modi highlighted the significance of the BAPS temple, emphasizing its role in enriching the cultural landscape of the UAE. He praised the UAE’s commitment to diversity, noting that the addition of the temple to Abu Dhabi’s iconic landmarks showcases the nation’s inclusive ethos.
Beyond its cultural significance, the inauguration of the BAPS Mandir underscores the deepening of bilateral ties between India and the UAE. The event was marked by discussions on various aspects of cooperation, ranging from economic partnerships to technological advancements.
Upcoming key financial events for February 2024:
| Date | Event |
| 22-Feb-24 | USD FOMC Meeting Minutes |
| EUR French Flash Manufacturing / Services PMI | |
| EUR German Flash Manufacturing / Services PMI | |
| GBP Flash Manufacturing / Services PMI | |
| USD Flash Manufacturing / Services PMI | |
| USD Unemployment Claims | |
| 27-Feb-24 | USD CB Consumer Confidence |
| 28-Feb-24 | USD Prelim GDP q/q |
| 29-Feb-24 | EUR German Prelim CPI m/m |
| USD Core PCE Price Index m/m | |
| USD Unemployment Claims |
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