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MARKET CAPSULE 23rd March'24 | Strong Pullback; Stuck in Range


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Technology Stocks take a Hit as Accenture Revises Guidance

Indian IT stocks experienced a notable downturn following Accenture's revision of its full-year revenue growth forecast from 3-5% to a more cautious 1-3%. This significant change in outlook resulted in a sharp decline in Accenture's share value. The ripple effect was immediately felt in the Indian IT sector at the start of Friday's trading, with the Nifty IT index falling by about 3%. Major players in the Indian IT industry, such as Wipro, Infosys, Tata Consultancy Services (TCS), and HCL Technologies, saw their shares trading lower, reflecting the sector-wide impact of Accenture’s revised revenue expectations.


The CNX Small Cap Index has seen a 6% rebound from its recent low last week, with notable recoveries observed in the Automobile and Real estate sectors, indicating a renewed strength in the markets and particularly in some sectors. The Nifty concluded the week at 22,096, marking a 0.3% rise from the previous week's closing. Maruti Suzuki India Ltd was the highlight of the last week with its stock price breaching 12000 level for the first time in the company's history. Another interesting data point on Maruti is that the valuation of Maruti has more than doubled from its parent company Suzuki Motor Corp's valuation.


Looking forward, the Nifty 50 Index is currently exhibiting range-bound behavior, oscillating between its established upper and lower limits of 22,400 and 21,500, respectively. Recent developments, such as the terrorist attack in Russia, may have a consequential impact on global markets. This suggests that the upcoming week could experience significant volatility. Moreover, the Nifty Small Cap Index, which has recently encountered resistance at the 15,100 level a threshold that previously served as a support could see a substantial upward movement if it manages to break above this critical point successfully.




Table of Contents:

1.

Heatmap

2.

Market Breadth

3.

Business Snapshot

4.

Seven good-looking charts for next week

5.

Block/Bulk Deals

6.

Breaking News Flash

7.

Beyond Equity Markets


Charting the Pulse of Indices: A) Sector Wise Performance

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This week, almost all Indian sectoral indices showed Stagnant Movement lead primarily by FMCG and Pharma. Nifty IT index Underperformed the other indices considerably. Nifty Auto index however stood strong and is likely to extend the gains with leading names like Bajaj Auto, Maruti Suzuki, Tata Motors etc. showing relative strength and strong resilience in a stagnant market.

B) Heatmap

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Heatmap helps investors quickly understand the performance of multiple stocks or sectors in a single view. Color coding, with varying shades indicating the degree of movement - red for declines, green for gains, and sometimes grey or other colors for little or no change. Heatmaps are effective for spotting market patterns and can be a time-saving resource in investment analysis.


C) Market Breadth

A) Nifty 500


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Source: Stockedge


The market breadth has considerably improved from the previous week. Where formerly a scant 8% of stocks were trading above their 20-day Simple Moving Average (SMA), this percentage has impressively increased to 33% above the 20-day SMA. Furthermore, there's an increase to 53% of stocks trading above their 100-day SMA, indicating substantial market robustness.



Analyzing market breadth is important as it provides insight into the underlying strength or weakness of the market, beyond just looking at benchmark indices. Breadth measures the percentage of securities in NIFTY 500 surpassing specified moving averages over the specified period. Comparing the market breadth of nifty 500 during the previous week's trading sessions, we can analyze that number of stocks above key moving average support areas are reducing by the end of week. This can be considered as a sign of weakness if change is seen to be significant.



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Senco Gold Ltd.


Established in 1994, Senco Gold Ltd. is a prominent jewellery retailer operating across India and holds the distinction of being the leading organized jewellery retail chain in the Eastern region of India when considering the number of stores in operation. It boasts an extensive catalogue that features over 1,30,000 unique designs for gold jewellery & 72,000+ distinctive designs for diamond jewellery.

 The company's growth comes from same store sales growth (SSSG) as well as new store expansion, with SSSG contributing to 80% of the growth whereas the highest growth in franchise sales has been in the West region.

The company has invested in the diamond segment which has resulted in a doubling of diamond jewellery sales in the past few years. The company have added about 9,000 designs in gold jewellery and 6,000 designs in diamond jewellery. The company opened its new store in Gangtok, Sikkim and first franchisee into Bihar. Senco is the first jewellery retail player to have opened a store in Gangtok


Products offered:

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Financial Highlights:

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Future Outlook:

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Seven good-looking charts for next week 1. Sun Pharmaceuticals Industries Ltd.

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2. TajGVK Hotels & Resorts Ltd.

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3. Cochin Shipyard Ltd.

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4. Larsen & Toubro Ltd.

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5. Godfrey Phillips India Ltd.

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6. Samhi Hotels Ltd.

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7. Time Technoplast Ltd.

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Top Deals of the Week: Standouts in Trade

Acquisitions:


Disposals:

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Order Wins:

  • Rail Tel Corporation has been awarded a contract by the Municipal Corporation of Greater Mumbai. The contract, valued at Rs 352 crore (excluding GST), involves the supply, installation, testing, commissioning, as well as operations and maintenance of a Health Management Information System (HMIS) for BMC's Health Department. Link

  • Ircon International has secured a contract worth Rs 631 crore from the National Highways & Infrastructure Development Corporation Ltd. Link

  • J. Kumar Infraprojects Limited has been awarded a contract by M/s. NBCC Limited. The project involves the development of the Hari Nagar Depot for Delhi Transport Corporation in New Delhi. The total value of this contract is Rs. 334.25 crore. Link

  • Dilip Buildcon has been awarded a contract valued at Rs 413 crore by the Water Resource Department of Madhya Pradesh, in the Narsinghpur district. This project involves constructing the Machhrewa Irrigation Project Dam and establishing a pressurized pipe irrigation network, all to be done on a turnkey basis. Link

  • Rail Tel Corporation of India Ltd. has been awarded a contract by the State Project Director of the Bihar Education Project Council. The contract, which includes taxes, is valued at Rs. 99,01,95,806 for the supply of services. Link

Bonus Share Issue & Share Splits:

  • Lorenzini Apparels Ltd has announced a fixed bonus with a record date set for March 28, 2024, to be issued in a 6:11 ratio. Link

  • Persistent Systems Ltd has planned a stock split to be executed on March28, 2024, which involves reducing the face value of its shares from ₹10 to ₹5. Link

  • Lorenzini Apparels Ltd has planned a stock split to be executed on March 28, 2024, which involves reducing the face value of its shares from ₹10 to ₹1. Link

  • United Van Der Horst Ltd has planned a stock split to be executed on March 26, 2024, which involves reducing the face value of its shares from ₹10 to ₹5. Link

  • Dhatre Udyog Ltd has planned a stock split to be executed on March 28, 2024, which involves reducing the face value of its shares from ₹10 to ₹1. Link

Appointments & Resignations:

  • The board of Dr. Lal Pathlabs has decided to change Mr. Shankha Banerjee's role within the company. Starting from May 21, 2024, he will take on the responsibilities of Chief Executive Officer (CEO) and will also be recognized as a Key Managerial Personnel (KMP). Link

  • Effective immediately, the appointment of Ms. Garima Agarwal as a Non-Executive Independent Director (female) of BKM Industries Limited for a consecutive term of five years has been approved. Link

  • Effective immediately, the appointment of Mr. Sriyans Lunia as a Non-Executive Independent Director of BKM Industries Limited for a consecutive term of five years has been approved. Link

Other Important News:

  • The GST Department recently carried out a search at Greenply Industries' Sandila unit in Uttar Pradesh. This operation was conducted to verify the legitimacy of the Input Tax Credit claimed by the company on transactions involving vendors who were non-compliant with GST regulations. Link

  • L&T Finance Holdings Ltd has approved a plan to raise funds amounting to Rs 1.01 lakh crore. This funding will be acquired through the issue of Non-Convertible Debentures (NCDs), which may be released in one or multiple tranches. Link

  • Time Technoplast has been granted authorization by the Petroleum and Explosives Safety Organization (PESO) to produce High Pressure Type-IV Composite Cylinders specifically designed for hydrogen use. Link

  • NTPC is set to issue unsecured non-convertible debentures valued at Rs 1,500 crore on March 21, 2024. This issuance, through private placement, will carry a coupon rate of 7.48% per annum. With a maturity period of 2 years, these debentures are scheduled to mature on March 21, 2026. Link

  • JSW Infrastructure has reached a notable achievement, as its consolidated total cargo handling has surpassed the 100 million metric ton mark. Link

  • PB Fintech: The Board has given its approval for the establishment of a fully-owned subsidiary, to be named "PB Pay Private Limited." This subsidiary will be engaged in the business of operating as a payment aggregator. Link

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That's all for now! I hope you enjoyed the content. Do share your comments below! 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.

 
 
 

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