RBI Leaves Key Rate Unchanged, Indian Stocks End the Week in Red | Weekly Stock Market Update 11 Feb
After a volatile week, and the big bang RBI monetary policy announcement where the rates were left unchanged {as expected}, the Indian markets ended the week in red. For this week, there will be key inflation and GDP data number releases of key Western economies, so keep an eye on these numbers and how global markets will be faring. Plus, the inflation number of India and IIP numbers of December are also due this week, which could impact markets. January US inflation data will be the key release in the coming week, and this will impact Fed’s decision on rate cuts. Various North Asian markets (including China, HK, Singapore and Korea) will remain closed for the Lunar New Year holidays at the start of the week.
📈 Weekly Update
Indian equity markets ended a volatile week in red with Nifty closing at 21782.5, down 71.3 points or 0.33% while the Sensex concluded the week 490 points down or -0.68% down, closing Friday’s session at 71,595.49. Even the Bank Nifty ended the week with losses, closing at 45634.55 down 0.73% or 336.4 points despite SBI clocking a weekly gain of a whopping 11.35% at 724.75, and touching a 52-week high. BPCL (10.02%), Coal India (8.62%), Sun Pharma (8.3%) and TCS (4.13%) were the weekly top-gainers while UPL (-14.28%), ITC (–5.59%), Bajaj Finserv (-4.87%), Kotak Mahindra (-4.49%) and Britannia Industries (-3.43%) were the top losers of the week.
Among the sectoral indices nine sectors out of 12 NSE sectors gained, while three declined. The Nifty PSU Bank rose 5.3% to become the top performer among sectoral indices, while the Nifty FMCG index fell 2.3%. Broader markets underperformed with the S&P BSE Midcap falling 0.82%, and Smallcap down 1.36%.
On the global front, Wall Street got a bit of encouragement after an uneventful US inflation revision lifted stocks, bolstering speculation the Federal Reserve will be able to cut interest rates as soon as May. In a reasonably quiet session ahead of next week’s consumer-price index, the S&P 500 topped 5,000, hitting a fresh record and heading toward its fifth straight week of gains. Investors breathed a sigh of relief.
🚀Technical Stock Pick
From Kavita Jain, Sr. Technical Analyst
BUY SYNGENE
CMP 750; Target 763/775 and Stop Loss 739
The stock regained all its moving averages and is witnessing bullish piercing line formation. RSI @ 52 indicates further price strength. We recommend a buy on Syngene with a target of 763, and a strict stop loss at 739.
3QFY2024 results this week:
- LIC Q3 profit jumps 47.3% year-on-year totaling ₹9,344 crore. The company’s net premium income grows 4.6%. The company’s board proposed an interim dividend of ₹4 per share for FY24.
- Tata Power Q3 net profit rises nearly 1% to ₹953 crore., revenue up 4% yoy to ₹14,651 crore.
- Hero Motor’s quarterly net profit increased 51% yoy to ₹1,073.40 cr, while its revenue was up 21% to ₹9,724 cr. The company declared interim dividend of ₹75 and a special dividend of ₹25.
- Zomato posts 3QFY24 profit of ₹138 crore turning the company around from a loss of ₹347 crore to same period last year. Stock touches two-year high.
- Airtel net profit increased 54% yoy to ₹2,442 cr. Revenue rose 6.3% to ₹38,339 cr. Average revenue per user (ARPU) stood at ₹208, up 8%.
- IRFC Q3 profit slips marginally to ₹1,604 crore, down 1.78% yoy. The rail PSU’s revenue from operations, however, rose 8.43% to ₹6,742 crore.
- MRF Q3 net profit rose 191.54% to ₹509.71 crore yoy, while its revenue rose 9.17% to ₹6,162.5 crore.
- Nestle India‘s net profit rose 4.4% yoy to ₹655.61 crore; revenue increased 8% to ₹4,600.42 cr; interim dividend of ₹7 per share declared with a record date of 15 Feb, 2024.
- Tata Consumer‘s net profit fell 17% YoY to ₹301.5 crore; revenue rose 9% to ₹3,804 cr.
- Power Grid‘s net profit increased 10.5% YoY to ₹4,028.3 crore; revenue rose 2.6% to ₹11,549.8 crore; interim dividend of ₹4.50 per share announced.
- Apollo Hospitals reported a 59% year-on-year increase in net profit to ₹245 crore, with revenue rising by 14% to ₹4,851 crore. Additionally, the company declared an interim dividend of ₹6 per share, with a record date set for February 20th.
📰 Quick Bites
- RBI left repo rate left unchanged at 6.5% for the sixth time in a row, in Thursday’s monetary policy meeting. Food inflation continues to pose a threat to inflation, owing which the RBI governor left the rate unchanged.
- The Indian government has collected around ₹600 cr in penalties for not linking Aadhaar with PAN. About 11.48 crore PANs are still not linked with Aadhar Cards.
- India’s crude oil import from Russia fell to its lowest in 12 months in Jan 2024. Russia supplied 1.2 mn barrels per day in Jan vs 1.32 mn in Dec.
- India’s coal production rose 10.3% to 99.73 million tonnes in Jan 2024 vs 90.42 million tonnes in Jan 2023.
- People are receiving false calls/messages asking for account details for updating KYC: RBI. Suspicious activity can be reported to the National Cyber Crime Reporting Portal.
- The Indian government is expected to receive $1.8 billion in dividends from state banks in Financial Year 2025, up 8.7% compared to FY24 (based on estimates): Vivek Joshi, India’s financial services secretary.
- Foxconn has issued bid invitations for the construction of a chip assembly and testing facility in India, in partnership with the HCL Group.
- According to Vivek Joshi, India’s financial services secretary, the Indian government is poised to reap the rewards in Financial Year 2025, with an estimated $1.8 billion in dividends expected from state banks. This represents an encouraging 8.7% uptick compared to the previous fiscal year, signaling positive financial growth on the horizon.
- The RBI kept interest rates unchanged at 6.5%, projecting inflation at 5.4% for FY24 and real GDP growth at 7% for FY25.
- India’s forex reserves increased to $622.5 billion as of February 2, up from $616.73 billion in the previous week.
- India’s fuel consumption surged by 8.2% year-on-year in January, totaling 20.04 million tonnes compared to 18.51 million tonnes last year, according to the Petroleum Planning and Analysis Cell.
📰 Stocks In News
- HDFC Bank has raised its interest rates on fixed deposits (FDs) to 7.20 percent on a tenure of 35 months and 7.25 per cent of 55 months.
- HDFC Bank got approval from RBI to acquire aggregate holding of up to 9.50% in 6 banks including Yes Bank, IndusInd Bank, and ICICI Bank.
- Thyrocare Tech to acquire Chennai based Think Health Diagnostics.
- Birlasoft launched a generative AI platform, Cogito, to help in increasing business performance.
- DB Realty’s board has granted preliminary approval to demerge its hospitality business.
- Aurobindo Pharma sold its wholly owned US-based subsidiary Eugia U.S. Manufacturing LLC.
- L&T bagged a large order to construct a 12.21 kilometres bridge across the Brahmaputra river in Assam connecting Palashbari and Sualkuchi towns in the northeastern state. And another large onshore order from IndianOil Adani Ventures
- Indian Oil expects a 4.5-5% rise in its gasoline sales for Financial Year 2025.
- Ambuja Cements bought 7.93% stake in Sanghi Industries via open offer on Feb 7.
- Mankind Pharma‘s promoters Sheetal Arora, Arjun Juneja, and Puja Juneja plan to sell a combined 1.62% stake to meet minimum public shareholding requirements.
- Tata Steel has finalized the merger with five businesses, including Tata Steel Long Products, after fulfilling regulatory procedures.
- ONGC has signed a cooperation agreement with TotalEnergies to detect and measure methane emissions.
- NCLT has agreed to hear Zee Entertainment‘s petition regarding the recently terminated merger with Sony Group’s Indian subsidiary.
- Indian Oil anticipates a 4.5-5% increase in gasoline sales for Financial Year 2025.
- SpiceJet explores potential settlement options with tech service provider Raymach Technologies.
- Welspun Enterprises secures an order from Brihanmumbai Municipal Corp. for the construction of a water treatment plant.
- Petronet LNG signs a long-term agreement with Qatar Energy for the purchase of 7.5 million metric tonnes of LNG annually.
IPO Corner
- Capital Small Finance Bank IPO subscribed 4.00 times. Retail: 2.49 times.
- Jana Small Finance Bank IPO subscribed 18.50 times. Retail: 5.46 times.
- Rashi Peripherals IPO subscribed 59.71 times. Retail: 10.44 times.
- Entero Healthcare Solutions IPO subscribed 0.10 times. Retail: 0.45 times. Open till 13 Feb.
- Akums Drugs files draft IPO papers with Sebi; eyes ₹680 cr via fresh issue and an offer for sale of 1.86 crore shares.
🌱 Sustainability Corner
- Inox Wind partners with CESC for the supply and installation of 1,500 MW wind energy as per agreement.
- IPO-bound Ola Electric gets Production-Linked Incentive (PLI) certification for its second scooter; to receive incentives for 5 years. This is the second DVA for Ola Electric, issued by the Ministry of Heavy Industries under the PLI scheme for the automobile and auto component industry.
- Tata Steel collaborates with South Eastern Rail (SER) to develop sustainable rail infrastructure using slag-based aggregates.
- SJVN secured an order from Gujarat Urja Vikas Nigam Limited to establish a 200 MW solar power project.
- Indraprastha Gas Limited (IGL) will set up 19 plants for producing Compressed Bio-Gas (CBG) to integrate into its city gas distribution network.
- Waaree Renewable Technologies bags ₹547.5 crore order for a 412 MWp solar energy project.
- JSW Group plans to invest $4.82 billion in the electric vehicle (EV) and battery manufacturing sector in Odisha, India, as part of an initiative to promote green mobility and develop the EV ecosystem.
- Greaves Cotton, which is seeing growing demand for its electric scooters, posts strong revenue and profit in Q3 FY2024 – INR 443 crore revenues (up 21%) and INR 65 crore profit (up 74%).
- MG Motor India has collaborated with BatX Energies, for what it states is India’s first-ever off-grid solar-EV charging station. Repurposed MG EV batteries will supply energy to the solar-EV charging stations.
- Tata Technologies‘ smart manufacturing solution, which fully integrates ERP, PLM, MES & IoT systems, gets Tata Motors’ new Sanand, Gujarat plant rolling in just 12 months & exactly a year since Tata acquired the former Ford India plant on January 10, 2023
