MARKET CAPSULE 17th FEB'24 | IT and Pharma Sector Breaking-Out

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Indian Equity Markets back near All Time High Zone

Nifty 50 index is back near the all-time highs for the second time in the month of February. It seems lucrative to see figures near the all-time highs but take it with a pinch of salt. Possibilities exist on both sides because such levels are considered as make or break levels for an index. It takes a voluminous buying force to take out such crucial levels of resistance. However, the required momentum is there on the positive side and with heavyweights like HDFC Bank, SBI, Reliance and Infosys contributing we can expect the resistances to be taken out. Further macro data wrt Systematic Investment Plan (SIP) inflows which soared to a record high of ₹18,838 crores, marking the seventh consecutive month with inflows surpassing ₹15,000 crores and the twenty-ninth consecutive month with inflows exceeding ₹10,000 crores in previous month, is also giving the much-needed impetus.

Sector rotation is beautifully taking place in the Indian Equity Markets with renewed buying being seen in Nifty IT and Nifty Pharma both of which have given a fresh breakout in the last trading session. Names like Alkem Labs, Granules India, Marksans Pharma, Eris Lifesciences, Birla Soft, Wipro, TCS are in high momentum and should be carefully tracked for the upcoming week.

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	Table of Contents:
1.	Heatmap
2.	Market Breadth
3.	Quarterly Result Updates
4.	Business Snapshot
5.	IPO Nexus ⭐
6.	Seven good-looking charts for next week ⭐
7.	Block/Bulk Deals
8.	Breaking News⭐
9.	Beyond Equity Markets

Charting the Pulse of Indices: Sector Wise Performance

Heatmap

Market Breadth

A) Nifty 500

Source: Stockedge

B) Nifty 50

Source: Stockedge

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 ⭐⭐⭐⭐⭐

• Nuvama Wealth Management Limited reported nearly a 100% increase in consolidated net profit for Q3FY24, reaching ₹176 crore.

• KPI Green Energy reports strong Q3 FY24 results: Revenue at Rs 330 crore, up 84.21%, with profit increasing by 46.87% year-on-year.

• Advait Infra posted robust Q3 results with revenue at Rs 72.51 crore, marking a remarkable 186% increase YOY, while PAT surged 134% YOY.

• NILE Ltd reported strong Q3 results, with revenue reaching Rs 252 crore, up 17% year-on-year, while PAT surged by an impressive 140% year-on-year.

• Indo Tech Transformers Ltd net sales inQ3FY24 rose by 65% year-on-year to Rs 139.47 crore, with PAT increasing by 175% year-on-year.

• Lumax Auto Technologies reported strong Q3 FY24 results, with revenue increasing by 64% year-on-year to Rs 732 crore, and profits rising by 71% year-on-year.
  

Good Results ⭐⭐⭐

• South West Pinnacle Exploration Ltd delivered strong Q3 results, with revenue hitting Rs 42.15 crore, up 19% year-on-year, showcasing a robust 22.35% operating profit margin.

• Fineotex Chemical Ltd reported robust Q3 FY24 results, with revenue up 26% YoY to Rs 138 crore and profits increasing by 50% YoY.

• Force Motors Ltd posted Q3 FY24 results, with revenue rising by 30% year-on-year to Rs 1,692 crore, while net profits remained positive compared to the previous year.

• Senco Gold Ltd posted positive results, with revenue reaching Rs 1,651 crore, up by 23% year-on-year, and PAT increasing by 7% year-on-year.

• Marksans Pharma Ltd reported good numbers with a 22% increase in topline and a 34% increase in profit year-on-year.

• Techno Electric & Engineering Company Ltd reported robust numbers, with revenue at Rs 327 crore, up 77% year-on-year.
  

Average Results ⭐

• National Aluminium Company Ltd reported stable revenue at Rs 3,347 crore, but boasted a good operating margin of 23%.

• Tide Water Oil Co (I) Ltd reported stable revenue numbers, with a PAT of 34 crore, marking a 30% increase year-on-year.
  

DCX Systems Ltd

Recently Listed IPOs:

	Company Name	Listing Date	Issue Price	Listing Price	Current Price	Listing Gain
1.	Italian Edibles Ltd	12th Feb, 2024	₹ 68	₹ 55	₹ 54	-15.1%
2.	Apeejay Surrendra Park Hotels Ltd	12th Feb, 2024	₹ 155	₹ 187	₹ 194	31.3%
3.	Jana Small Finance Bank Ltd	14th Feb, 2024	₹ 414	₹ 396	₹ 420	-11.1%
4.	Capital Small Finance Bank Ltd	14th Feb, 2024	₹ 486	₹ 435	₹ 450	-7.0%
5.	Rashi Peripherals Ltd	14th Feb, 2024	₹ 311	₹ 335	₹ 346	3.4%
6.	Rudra Gas Enterprise Ltd	15th Feb, 2024	₹ 63	₹ 119.7	₹ 132	99.5%
7.	Alpex Solar Ltd	15th Feb, 2024	₹ 115	₹ 329	₹ 363	200.4%
8.	Polysil Irrigation Systems Ltd	16th Feb, 2024	₹ 54	₹ 56	₹ 54.2	3.7%
9.	Entero Healthcare Solutions Ltd	16th Feb, 2024	₹ 1258	₹ 1245	₹ 1150	-2.3%

Upcoming IPOs:

	Company Name	Open Date	Close Date	Offer Price	Issue Size (Cr.)
1.	Zenith Drugs Ltd	19th Feb, 2024	22th Feb, 2024	₹ 75 - 79	₹ 38.62 - 40.68
2.	Deem Roll-Tech Ltd	20th Feb, 2024	22 Feb, 2024	₹ 129	₹ 29.26

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Five top gainers of this week

	Stocks	Percentage Increase
1.	Mangalore Refinery And Petrochemicals Ltd	27.14%
2.	Natco Pharma Ltd	22.23%
3.	Aegis Logistics Ltd	16.68%
4.	Saregama India Ltd	13.77%
5.	Global Health Ltd	13.09%

Seven good-looking charts for next week 1. Adani Ports & Special Economic Zone Ltd

2. Persistent Systems Ltd

3. Birlasoft Ltd

4. TARC Ltd

5. Wockhardt Ltd

6. Cipla Ltd

7. Glenmark Life Sciences Ltd

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Top Deals of the Week: Standouts in Trade

Acquisitions:

• Chand Kejriwal, identified as a Promoter & Director bought 69,000 shares of Remsons Industries Ltd. at an average price of ₹480.

• JSL OVERSEAS LIMITED from the Promoter Group acquired 585,400 shares of Jindal Stainless Ltd at an average price of ₹593.1.

• Prem Kumar Bhajanka, identified as a Promoter & Director acquired 1,00,000 shares of Star Cement Ltd. at an average price of ₹201.7.

Disposals:

• Uttam Commercial Ltd from the Promoter Group sold 236,236 shares of Chambal Fertilisers & Chemicals Ltd. at an average price of ₹450.

• Peterhouse Investments India Ltd. from the Promoter Group divested 95,000 shares of Usha Martin Ltd. at an average price of ₹326.6.

Business Expansions:

• EaseMyTrip Forays into Hospitality Sector by Unveiling Luxurious 5-Star Hotel in Ayodhya.

• V-Guard Consumer Products Limited (VCPL), the WOS of V-Guard Industries Limited has started commercial production of Battery at its state of art manufacturing facility set up in Hyderabad.

• Lupin Limited (Lupin) launched Bromfenac Ophthalmic Solution, 0.075%, after receiving approval from the United States Food and Drug Administration (U.S. FDA).

• ABB India launches a next-generation compact drive tailored for HVACR systems.

• MIC Electronics Limited has developed a 42V/3A electric vehicle (EV) battery charger for e-cycles and two-wheelers, facilitating efficient and convenient charging.
  

Order Wins:

• Fredun Pharmaceuticals Secures Orders from SEA Countries, Expands Product Development in Veterinary Care, and Advances Orthopaedic Applications.

• Adani Total Gas secures contract to build and operate Bio-CNG Plant for Rajkot Municipal Corporation, costing Rs 75-85 crore.

• JSW Neo Energy Ltd., a subsidiary of JSW Energy Ltd, secures 500 MW Wind capacity from SECI for ISTS-connected Wind Power Projects.

• Bharat Electronics Limited (BEL) signs Rs. 2,167.47 Cr contract with Indian Navy for indigenously developed EW suite, boosting Atma Nirbhar Bharat initiative.

• Dilip Buildcon Ltd., in a joint venture with Vijay Kumar Mishra Construction Pvt. Ltd. (VKMCPL-DBL JV), wins bid for Machhrewa Irrigation Project in Madhya Pradesh.

• PSP Projects Ltd secures Rs. 630.90 Crore order for constructing Gati Shakti Vishwavidhyalaya at Vadodara for Rail Vikas Nigam Limited in Government category.

• Indian Hume Pipe Company Ltd secures Rs. 495.04 Crore order from Tapi Irrigation Development Corporation Jalgaon for EPC works and O&M of Varkhede Londhe Irrigation Project.

• Happy Forgings Ltd has secured an order worth approximately Rs 400 crore for supplying fully machined components for SUVs.

Joint Ventures:

• The establishment of a joint venture between Havells International Inc, a wholly-owned subsidiary of Havells India Limited, and Salesmark Ventures, LLC.

Bonus Share Issue & Share Price Splits :

• Remedium Lifecare Ltd has implemented a subdivision of the face value of its equity shares from Rs. 5 each to Re. 1 each.

• Bharat Bijlee Ltd to split each existing ₹10 face value equity share into 2 shares of ₹5 face value, subject to regulatory and shareholder approval via Postal Ballot.
  

Agreements:

• IREDA signed an MoU with IIT Bhubaneswar at the 100 Cube Start-up Conclave, fostering collaboration in sustainable energy initiatives.

• Mahindra Finance & IBM collaborate to drive financial inclusion with Super App.

• Lemon Tree Hotels Ltd has signed a License Agreement for upcoming hotel in Marpalle, Vikarabad District, Telangana under the Company’s brand ‘– Lemon Tree Resort’.

• Coal India Limited (CIL) signed an MoU with Haryana Power Purchase Centre (HPPC) expressing interest in purchasing 800 MW of power from 'Mahanadi Basin Power Ltd' (MBPL), a wholly owned subsidiary of Mahanadi Coalfields Limited (MCL).

• Soroco and Happiest Minds Technologies collaborate to reshape 'The Future of Work' through AI.

• RITES & AD Ports Group collaborate to drive growth in Logistics Infrastructure Development.

• G R Infraprojects Ltd has signed a Share Purchase Agreement with REC Power Development and Consultancy Limited (RECPDCL) to acquire Pochora Power Transmission Limited, a wholly-owned subsidiary of RECPDCL.

• Mahanagar Gas Limited (MGL) to acquire 30.97% stake in 3EV Industries Private Limited (3ev) through Share Subscription Agreement (SSA).

• Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) have signed a supply agreement for components of Volkswagen's MEB for Mahindra's electric platform INGLO, advancing e-mobility collaboration.
  

Acquisition/ Merger/Amalgamation:

• Asian Paints acquires 51% equity share capital of Harind Chemicals from AAPEX for Rs. 14.3 crore.

• ERIS Lifesciences Ltd has acquired a 51% equity stake in Swiss Parenterals Limited.

Appointments & Resignations:

• Enkei Wheels: Mr. Kazuo Suzuki, the Managing Director of the company, has submitted his resignation, effective from February 23rd, 2024, citing personal grounds.
  

Other News:

• Inox Wind’s 3 MW turbine enlisted in the RLMM by MNRE, achieving major milestone.

• UPL Ltd received notification of the issuance of a certificate of incorporation for its new step-down subsidiary, Advanta Seeds Tanzania Limited.

• JSW Steel's consolidated crude steel production for January'24 reached 23.62 lakh tonnes, up 7% YoY, with Indian operations utilizing 97% capacity.

• Kinetic Engineering Limited Accelerates with E-Luna Launch, Achieving Massive Growth as Market Capital Hits 10-Year Peak at Rs. 470 Crore.

That's all for now! I hope you enjoyed the content. Thank You 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.