MARKET CAPSULE 13th JAN'24 | Tech Stocks drive Nifty to New All-Time High

Welcome! Thank you for stopping by. Ready for a speedy catch-up on last week's highlights?

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Will Tech Stocks Spearhead the Next Market Rally? In a remarkable turn of events, the Nifty IT Index has leaped by 5%, buoyed by a strong performance from industry giants Infosys, TCS, Wipro, etc leading to a new All Time High in Nifty. This surge, characterized by a gap up and a robust follow-through, marks a significant breakout after a period of relative dormancy of the sector in the Indian markets. As investors digest the positive to moderate Q3 results performance from these tech bellwethers, the question on everyone's mind is clear: Are we witnessing the beginning of a tech-led charge in the markets? This shift could signal a new phase where IT stocks, long overshadowed in the recent bull run, take the lead in driving market momentum in the coming weeks.

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Charting the Pulse of Indices: Sector Wise Performance

Last week, Nifty IT stood out as the top performer in the markets, primarily driven by the positive market response to the quarterly earnings of Infosys and TCS. Nifty Realty also demonstrated strong performance, not far behind IT. The real estate sector has been gaining attention since last week and is expected to continue being a focal point in the upcoming week, alongside the IT sector

Heatmap

Market Breadth

A) Nifty 500

B) Nifty 50

Note: Breadth measures the percentage of securities in NIFTY 50 / NIFTY 500 surpassing specified moving averages over the specified period. High counts or percentages are depicted in green, neutral values in yellow, and lower counts in varying shades of red. Green shades signify an upward trend, yellow denotes a neutral stance, and red shades represent a downward trend.

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Blockbuster Results ⭐⭐⭐⭐⭐

• HDFC AMC posted Q3FY24 Revenue at Rs 671 crore, up 20% year-on-year.

• 5Paisa repored highest ever revenue in Q3FY24 at Rs 100 crore, up 20% year-on-year.

• AGI Infra Ltd posts Q3FY24 Revenue at Rs 73 crore, up 20% year-on-year.

• Rajoo Engineers Ltd achieved an impressive Q3FY24 revenue of Rs 60 crore, marking a 64% year-on-year growth.

• Plastiblends India Ltd recorded Q3FY24 Revenue at Rs 197.12 crore, up 6% year-on-year.

Moderate Results ⭐⭐⭐

• Infosys reported Q3 results with a 7% YoY decrease in net profit to Rs 6,106 crore and flat numbers in revenue.

• Tata Consultancy Services Ltd posted Q3FY24 revenue of Rs 60,538 crore, reflecting a 4% year-on-year growth.

Below Average Results ⭐

• Delta Corp experienced a notable decline in revenue at Rs 232 crores for Q3FY24, down by 15% year-on-year.

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Five top gainers of this week 1. Network 18 Media & Investments Ltd (🔼 37.62%)

2. Alok Industries Ltd (🔼 27.07%)

3. Olectra Greentech Ltd (🔼 24.95%)

4. Trident Ltd (🔼 24.02%)

5. Avanti Feeds Ltd (🔼 22.65%)

Five good-looking charts for next week 1. Indian Overseas Bank Ltd

2. Honasa Consumer Ltd

3. Indian Renewable Energy Development Agency Ltd

4. FDC Ltd

 5. Cello World Ltd

Five cautious charts for next week

1. Metropolis Healthcare Ltd

2. Polycab India Ltd

3. KEI Industries Ltd

4. Rites Ltd

5. Manappuram Finance Ltd

*Caution does not mean that these stocks are bearish, it however means that the probability of these stocks going up is less as compared to others.

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Top Deals of the Week: Standouts in Trade Acquisitions:

• Dhananjaya Rao Boita, identified as a Designated Person bought 350 shares of Mahindra & Mahindra Ltd. at an average price of ₹1635.4.

• Ashish Garg from the Promoter Group acquired 183,300 shares of Goodluck India Ltd.

• Venkateshwara Hatcheries Private Limited, identified as a Promoter acquired 61,175 shares of Venky's (India) Ltd. at an average price of ₹1969.7.

• Geetali Chandan Shirgaonkar from the Promoter Group acquired 139,219 shares of Ugar Sugar Works Ltd. at an average price of ₹89.8.

• Sambhavnath Investment from the Promoter Group acquired 7,000 shares of Khazanchi Jewellers Ltd. at an average price of ₹275.5.

Disposals:

• NJD Capital Private Limited from the Promoter Group sold 1,000,000 shares of VL E-Governance & IT Solutions Ltd at an average price of ₹69.8.

• Abhishek Somany (HUF) identified as a Promoter divested 58,460 shares of Somany Ceramics Ltd. at an average price of ₹850.

Tamil Nadu Global Investors Meet 2024 and Vibrant Gujarat Global Summit 2024 were the highlights of last week with MOUs worth 26 Lakh crore being inked in Gujarat and investments of Rs 6 lakh crore being attracted by Tamil Nadu. A new segment of MOUs has been added below that includes important MOUs that were signed recently in both the summits.

⭐ Signifies important news or corporate filings.

Business Expansions:

• Gujarat State Fertilizers & Chemicals Ltd has commissioned manufacturing plant at Fertilizernagar, Vadodara for production of Ammonium Sulphate.

• Grasim Industries Limited - Birla Cellulose's Kharach plant in Gujarat has successfully commissioned CAP (Carbon-disulphide Adsorption plant) CS2 recovery system from exhaust gases and has achieved EU BAT status.⭐

• ONGC announces the successful commencement of “First Oil” production from the deep-water KG-DWN-98/2 Block, situated off the coast of Bay of Bengal.⭐

• ONGC: ONGC Videsh Ltd. (OVL) has incorporated a wholly owned subsidiary OVL Overseas IFSC Ltd. (OOIL) in GIFT City, Gujarat.

• TARC Ltd launches its ultra luxury high rise residential project, TARC KAILASA, in prime New Delhi location on Patel Road, with revenue potential exceeding Rs 4000 crore.

Order Wins:

• GE Power India Limited has received a purchase order of INR 10.3 Crores plus (GST 18%) from NTPC Ltd.

• Inox Wind receives Lo1 for 50 MW wind project from NLC India Limited, a Navratna CPSU.

• Cupid Ltd has received Award of Order from Central Medical Services Society (CMSS) worth Rs. 16.23 crore for male condoms.

• Bondada Engineering Ltd has been awarded work orders worth Rs. 27,58,25,000 by Bharti Airtel Ltd.

• BEML Limited bagged orders from Ministry of Defence for supply of Mechanical Minefield Marking Equipment Mark-II valued at approximately Rs. 329.87 crores.⭐

• Larsen & Toubro (L&T) Construction has secured an order from HITES (A Mini Ratna PSU) under the Ministry of Health and Family Welfare for its Buildings & Factories Business.⭐

• Bajel Projects bags an order of Rs 488 crore for supply of Plant and Installation Services for Engineering, Procurement, Construction & Commissioning of Transmission lines and GIS Substations by The Tata Power Company Ltd.

Mergers/ Acquisitions/ Amalgamations:

• ACC Strengthens Market Leadership with Acquisition of Asian Concretes & Cements Private Ltd at an Enterprise Value of Rs. 775 Cr.

• Deepak Nitrite board has approved the acquisition of an additional 495,824 shares, representing 19.28% stake, of Deepak Oman Industries FZC LLC for around $1.29 million.

• Kalyani Steel has been declared as Successful Bidder for Acquisition of Assets of Kamineni Steel & Power India Private Limited.

Joint Ventures:

• Cipla announces joint venture in the United States with Kemwell Biopharma and Manipal Education & Medical Group for global development and commercialisation of innovative Cell therapy products.⭐

MOUs:

• TVS Motor Company Ltd has entered into a Memorandum of Understanding (MoU) with Guidance, the Nodal Agency of Government of Tamil Nadu on 7th January 2024 as part of the Tamil Nadu Global Investors Meet 2024, Chennai.⭐

• Caplin Point Laboratories Ltd has entered into a Memorandum of Understanding (MoU) with Guidance, the Nodal Agency of Government of Tamil Nadu.

• Royal Enfield, a unit of Eicher Motors Limited signs MoU with the Government of Tamil Nadu for proposed investment of Rs. 3000 crores for brownfield and greenfield projects in the State.⭐

• Brigade Enterprises Limited has signed MoUs with the Government of Tamil Nadu to invest over ₹3400 crores in the state.

• Bharat Forge enters into MoU with Tamil Nadu Government for investment of up to 1,000 Cr.

• Tata Power Renewable Energy Limited, a subsidiary Company of Tata Power Company Ltd signed two MOU with the Government of Tamil Nadu to support in the development of the state's renewable energy.⭐

• Pondy Oxides has entered into a Memorandum of Understanding (MoU) with Tamil Nadu (TN) Guidance, the nodal agency of Government of Tamil Nadu to invest between Rs 300-500 crore in the state.

• GHCL Textiles Ltd signed an MoU with the Government of Tamil Nadu through Guidance, committing to invest Rs. 535 Crores over four years during the Tamil Nadu Global Investors Meet 2024.

• Maruti Suzuki plans more investments in Gujarat with a New Greenfield Plant and a fourth line in SMG.⭐

• Quess Corp signs MoU with the Department of Gujarat Technical University (GTU) for Skill Development and Employment Generation in the State.

• Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Ltd, has signed a MoU with the Government of Gujarat (GoG) to develop 10,000 MW of Renewable Energy Power projects across multiple sites in Gujarat.⭐

Agreements:

• Lemon Tree Hotels Ltd has signed a Franchise Agreement for upcoming hotel in Meerut, Uttar Pradesh under the Company’s brand- ‘Lemon Tree Hotel’.

• Karnataka Bank partners with Digivriddhi (DGV) to offer host of financial services catering to the needs of Dairy Farmers & Milk Societies.

• Ramkrishna Forgings Limited announces Strategic Partnership with McKinsey for a comprehensive 15-Month Transformation Program.⭐

• Strides Pharma: Fairmed Healthcare AG, Switzerland, a step-down subsidiary of the Company in Switzerland, has entered into a Share Purchase Agreement for divestment of its 100% shareholding in Eris Pharma GmbH, Germany (Eris) for Euro 200,000.

• UltraTech Cement Ltd has entered into Share Subscription and Shareholders Agreement to acquire 26% equity shares of M/s Amplus Ages Private Limited.⭐

Other News:

• DLF records sale of luxury residences ‘DLF Privana South’ in Gurugram for over ₹ 7,200 crore, ahead of official launch.⭐

• Ashok Leyland Ltd achieved a significant milestone by recording its highest sales volume in a calendar year in the company's history during 2023.

• Allied Digital announces selection as Master System Integrator (MSI) for the Ayodhya Smart City Project.⭐

• Shyam Metalics and Energy Limited (SMEL) raises f 1,385 crores through QIP.⭐

• ABB India Limited has received an order from Deputy Commissioner of Commercial Taxes, Bengaluru imposing a penalty amounting to 3,71,02,053.

Company Name	Listing Date	IPO Price	Listing Price	Listing Gain	Current Price
Kaushalya Logistics Ltd	08-Jan-2024	₹75	₹100	40%	₹109

That's all for now! I hope you enjoyed the content. Thankyou for reading, and wishing you a fantastic weekend and a profitable week ahead! Disclaimer: Any stock or company discussed above should not be considered as a Buy/Sell recommendation. We personally or our clients might or might not have a position in any of the stocks discussed. This newsletter is purely is for educational purposes only.