MARKET CAPSULE 9th March'24 | Small Caps: Pinnacle or Pit ?
- samarwealth
- Mar 9, 2024
- 7 min read
Record High on Benchmark Indices, PSU Banks outperform
Indian market extended the rally in the fourth consecutive week ended March 7 with benchmark indices hitting fresh record high supported by positive global cues. In this week, BSE Sensex ended 313.24 or 0.42 percent higher at 74,119.39. The Nifty50 index rose 115.15 points or 0.51 percent to end at 22,493.55.
On the sectoral front, Nifty PSU Bank index rose 3 percent, Nifty Pharma index up 1.5 percent, Nifty Energy up 1.4 percent and Nifty Bank added 1 percent. This week, the NIFTY Smallcap 100 index experienced volatility and there was a heavy sell-off in the broader market. Investors need to be mindful of the potential volatility in future as well and consider a more selective approach in stock picking, focusing on relative strength of the individual stock and the sector as a whole.
THE WEEK AHEAD ! ! ! The Nifty 50 is likely to continue its steady uptrend. Major derivatives and technical indicators suggest Nifty is likely to post fifth consecutive weekly gains in the coming week. Nifty has been moving in a higher high higher low formation, indicating uptrend since February 13, 2024. Despite the minor corrections in between, the previous swing lows have remained intact.
U.S. employers added 275,000 jobs last month, a Labor Department report showed on Friday, handily beating the 200,000 that economists expected. In testimony on Capitol Hill this week, Fed Chair Jerome Powell said he feels the economy is healthy and policymakers are "not far" from having enough confidence on inflation's downward direction to start reducing interest rates.
Table of Contents: | |
1. | Heatmap |
2. | Market Breadth |
3. | Business Snapshot |
4. | IPO Nexus ⭐ |
5. | Seven good-looking charts for next week ⭐ |
6. | Block/Bulk Deals |
7. | Breaking News Flash |
6. | Beyond Equity Markets |
Charting the Pulse of Indices: A) Sector Wise Performance
This week, Indian sectoral indices showed a mixed performance. This week, different sectoral indices in the Indian stock market, such as Nifty Bank, Nifty IT, and others, experienced varied movements.Each sector responded to different market dynamics, influenced by factors such as economic data releases, global market trends, and sector-specific developments. Nifty PSE index is standing strong and is likely to extend the gains with leading names like SAIL, REC Ltd, Engineers India etc.
B) Heatmap
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.
Current week's heatmap clearly depicts the outperformance of banking stocks over other nifty 50 scrips.Apart from banking sector, House of Tata was in forefront with news of Tata Sons listing doing the rounds.
C) Market Breadth
Analysing 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 50 / 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 analyse 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.
A) Nifty 500
Source: Stockedge
B) Nifty 50
Source: Stockedge
Meghmani Organics Ltd. Meghmani Organics Ltd. is one of f the leading firms in the chemical sector and is a fully integrated diversified chemical company with a global presence and varied product range. Company’s agrochemical portfolio comprises intermediates, technical products and formulations of pesticides and herbicides used in crop protection, veterinary medicine, public health, and wood protection. Company also specializes in production of pigments such as phthalocyanine pigments and Azo pigments used in printing inks, paints, coatings, and plastic.
Services offered:
Financial Highlights:
Future Outlook:
Recently Listed IPOs:
Company Name | Platform | Listing Date | Issue Price | Listing Price | Current Price | Listing Gain | |
1. | SME | 7th March, 2024 | ₹ 120 | ₹ 79.00 | ₹ 82.95 | -30.90% | |
2. | MUKKA Protiens Ltd. | Mainboard | 7th March, 2024 | ₹ 28 | ₹44.00 | ₹ 42.26 | 50.9% |
3. | Purv Flexipack Ltd. | SME | 5th March, 2024 | ₹ 71 | ₹ 260.00 | ₹ 246.35 | 247.00% |
4. | Execom Tele-Systems Ltd. | Mainboard | 5th March, 2024 | ₹ 142 | ₹ 264.00 | ₹ 238.20 | 67.70% |
5. | Platinum Industries Ltd. | Mainboard | 5th March, 2024 | ₹ 171 | ₹ 228.00 | ₹ 205.40 | 20.10% |
6. | Owais Metal and Mineral Processing Ltd. | SME | 4th March, 2024 | ₹87 | ₹ 250.00 | ₹ 274.90 | 216.00% |
Upcoming IPOs:
Company Name | Platform | Open Date | Close Date | Offer Price | Issue Size (Cr.) | |
1. | Pratham EPC Projects Limited | SME | 11th March, 2024 | 13th March, 2024 | ₹ 71-75 | ₹ 35.00 |
2. | Popular vehicles and Services Limited | Mainboard | 12th March, 2024 | 14th March, 2024 | ₹ 280-295 | ₹ 584.00 |
3. | Royal Sense Limited | SME | 12th March, 2024 | 14th March, 2024 | ₹ 68 | ₹ 9.86 |
4. | Signoria Creations Limited | SME | 12th March, 2024 | 14th March, 2024 | ₹ 61-65 | ₹ 9.00 |
5. | AVP Infracon Limited | SME | 13th March, 2024 | 15th March, 2024 | ₹ 71-75 | ₹ 50.00 |
Five top gainers of this week
Stocks | Percentage Increase | |
1. | Tata Chemicals Ltd. | 40.00% |
2. | Tata Investment Corp. Ltd. | 34.00% |
3. | Rallis India Ltd. | 16.10% |
4. | Oil India Ltd. | 15.30% |
5. | SAIL | 14.70% |
Seven good-looking charts for next week 1. Natco Pharma Ltd.
2. Jio Financial Services Ltd.
3. Ajmera Realty & Infra India Ltd.
4. Cummins India Ltd.
5. Kalpataru Projects Ltd.
6. Jyoti CNC Automation Ltd.
7. PB Fintech Ltd.
Top Deals of the Week: Standouts in Trade
Acquisitions:
MORGAN STANLEY ASIA purchased 56,811,443 shares of Zomato Ltd. at an average price of ₹160.1.
MATHEW CYRIAC bought 3,250,000 RBLBank Ltd. shares at an average price of ₹250.91.
Disposals:
BAJRANG KUMAR GUPTA offloaded 500,000 shares of Dollar Industries Ltd. at an average rate of ₹490.
SPRING FIELD VENTURE INTERNATIONAL sold 632,000 shares of Cartrade Tech Ltd. off market at an average price of ₹738.50.
Business Expansions:
Asian Paints Ltd.:Asian Paint's subsidiary entered into agreements with Gujarat Chemical Port to set up an ethylene storage and handling facility in Dahej, Gujarat. Link
UPL's Mauritius-based wholly-owned subsidiary UPL Corp has entered into a share subscription agreement with Masarrah Investment Co to set up a manufacturing complex in Saudi Arabia to produce phosphate, cyanide, and chlorine value-added products. Link
Adani Enterprises: Ospree InternationalFZCO, Dubai, a step-down subsidiary of Adani Enterprises Ltd, has acquired the 100% stake in LE MARCHÉ Duty Free SAS on 6th March 2024. Link
Prestige Estates has launched a Luxury residential project "Prestige Somerville" in Whitefield, Bangalore. The project comprises of 306 apartments across two high-rise towers spread in 6.5 acres of land and has a revenue potential of Rs 800crore. Link
Meghmani Organics: Meghmani Crop Nutrition Limited (MCNL), a wholly owned Subsidiary, has inaugurated its Nano Urea Plant today at Sanand, Ahmedabad. Link
V-Guard has started commercial production of Kitchen Appliances (Mixer Grinder & Gas Stove) at its state of art manufacturing facility set up in Vapi, Gujarat. Link⭐
CESC: Crescent Power Ltd (subsidiary of CESC) has acquired 100% shareholding of Purvah Green Power Private Limited. Link
Havells India Ltd is planning to expand its existing product portfolio with the introduction of Kitchen Appliances such as Cooktops, Hobs, Chimneys and other built-in appliances, into it. Link
Wipro: General Motors (GM), global automotive supplier Magna and Wipro Ltd have teamed up to develop a B2B sales platform for buying and selling automotive software. Link⭐
Sonata Software to set up a delivery centre in Kraków, Poland. The nearshore centre will support the growing demands for business transformation, modernisation and cost optimisation initiatives, from global clients in Europe. Link
L&T Technology Services Limited has announced a collaboration with Intel Corporation aimed at developing and providing scalable edge-Al solutions for a range of use cases, including Cellular Vehicle-to-Everything (CV2X) applications. Link
Mahindra Lifespace Developers has launched its residential project, ‘Mahindra Codename Crown' at Wagholi, Pune. Link
LTIMindtree: Fosfor, a product division of LTI Mindtree, at its Foton 2024 event, announced the launch of the Fosfor Decision Cloud. Link
Tanla launches Messaging as a Platform (MaaP) at Mobile World Congress 2024, Barcelona. Link
Order Wins:
GPT Infraprojects has bagged an order of Rs 135 crore from North Central Railway, Agra, Uttar Pradesh. Link⭐
Bondada Engineering Ltd has received a work of Rs 24 crore order from M/s. Pace Digitek Infra Pvt Ltd. Link
Bharat Heavy Electricals Limited has received an order from NTPC Ltd for setting up the Singrauli Super Thermal Power Project, Stage-III (2x800 MW) in Sonebhadra District, Uttar Pradesh. Link
HSCC (India) Ltd (a wholly owned subsidiary of NBCC) has bagged an order of Rs 92 crore from Post Graduate Institute of Medical Education And Research (PGIMER), Chandigarh. Link
Agreements:
Infosys renewed its digital innovation partnership with the ATP Tour until 2026. The three-year extension of the partnership will continue to draw on Infosys' deep expertise in digital technologies like Artificial Intelligence, Data Analytics, and Cloud, which will enrich the fan experience and player performance in professional tennis. Link
LTIMindtree Limited executed a Shareholder's Agreement with Global Digital Integrated Solutions Company, a wholly owned subsidiary of Saudi Arabian Oil Company ("Saudi Aramco"), for setting up a Joint Venture in the Kingdom of Saudi Arabia. Link
JSW Energy: JSW Renew Energy Five Ltd, a step down subsidiary of the Company, has signed a Battery Energy Storage Purchase Agreement (BESPA) for the first project of 250 MW / 500 MWh Standalone Battery Energy Storage System out of the total awarded project capacity of 500 MW / 1,000 MWh (two projects each of 250 MW / 500 MWh) with Solar Energy Corporation of India Ltd. Link⭐
IRCTC has signed a Memorandum of Understanding with Swiggy (Bundl Technologies Pvt. Ltd.) to provide preordered meals to passengers of Indian Railways through IRCTC e-Catering Services. Link
Tata Power Solar Systems Limited and Union Bank renews partnership to boost rooftop solar adoption among residential consumers. Link
Tata Communications Ltd: DOT, Ministry of Communications, Government of India has granted Tata Communications Limited, an additional authorization for providing M2M services in National area, under the Company's existing Unified License Agreement. Link
NTPC Limited: NTPC Green Energy Limited signed a Joint venture Agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited for development of Renewable Power Parks and Projects in Uttar Pradesh. Link
Appointments & Resignations:
Aurobindo Pharma has appointed Mr. N. Ravikiran as Chief Business Officer, with effect from March 5, 2024. Mr. N. Ravikiran will be part of the Senior Management team of the Company. Link
Ramky Infrastructure: The Board has accepted the resignation tendered by Mr. Chivukula Vasudev as Chief Financial Officer and Key Managerial Personnel of the Company. Link
Other Important News:
Torrent Pharmaceuticals: USFDA has issued an Establishment Inspection Report ("EIR") for company's Oral-Oncology manufacturing facility situated in Bileshwarpura, Gujarat and the inspection has now been successfully closed by the USFDA. Link
NHPC: Hon'ble Prime Minister of India Shri Narendra Modi has laid the foundation stone for 1,200 MW Jalaun Ultra Renewable Energy Power Park located in Orai and Madhogarh Tehsil of District Jalaun, Uttar Pradesh through virtual mode. Link
JM Financial: The Reserve Bank of India has asked the company to stop giving loans against shares and debentures, including sanction and disbursal of loans against the IPO of shares, with immediate effect. Link⭐
Happiest Minds Technologies has been recognized by Zinnov as a 'Niche & Established' player for Gen-Al Engineering Services as part of the Zinnov Zones Digital Engineering and ER&D Services Ratings 2023. Link
GAIL: Hon'ble Union Minister of Petroleum and Natural Gas & Housing and Urban Affairs Shri Hardeep S Puri has dedicated to the Nation 201 CNG stations across 17 states and India's first small-scale LNG unit at Vijaipur (Madhya Pradesh). Link⭐
AU Small Finance Bank has received RBI's approval for proposed amalgamation of Fincare Small Finance Bank Ltd with and into AU Small Finance Bank Ltd. Link
Ashiana Housing has converted 63 units into booking (comprising of 1.80 Lakhs sq. ft. area approx. with sale value of Rs 130 cr) of the project "ONE44". The process of conversion of Expression of Interest (EOI) into booking started on 3rd March 2024. Link
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.
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