Morning Update :–Wipro, HCL Technologies, Tech Mahindra, LTIMindtree, and Infosys were among the Nifty’s biggest gainers, while HDFC Life, Eicher Motors, HUL, Hindalco, and ICICI Bank fell.
Sensex – Rise +625 Points at 73,193
Nifty 50 – Rise   +166 Points at  22,061
Indian Market
FII AND DII
| FII Sold | Â Â 340.05 Cr |
| DII Bought | 2,911.19 Cr |
Indian Market News
- Stocks conclude with minimal move as earnings overcome inflation data.
- Â Oil prices fall as investors focus on developments in the Middle East.
- The dollar wobbles and the yuan falls following the PBOC surprise.
- Asian stocks are lethargic, with lots of event risk ahead.
- Avenue Supermarts’ Q3 net profit jumps 17% to Rs 690 crore, while revenue grows 17.3%.
- Wipro’s Q3 net profit fell 12% to Rs 2,694 crore, its fourth consecutive quarterly loss.
- Medi Assist Healthcare Services IPO: Anchor investors purchase Rs 351 crore of shares.
- Tata Consumer will buy Capital Foods for Rs 5,100 crore in an all-cash deal.
- Â HCLTech’s third-quarter net profit increased by 6% year on year.
- Retail inflation accelerated to a four-month high of 5.69% in December due to the base impact.
- India’s industrial growth fell to 2.4% in November, the worst rate in eight months.
- Tata Consumer will buy Fabindia-backed Organic India for Rs 1,900 crore.
Global Markets updates
GIFT Nifty
With a gain of 69 points, the GIFT Nifty suggests a slightly good start for the overall index. GIFT Nifty futures remained at 22,024 points after touching a high of 22,046 .5 points.
US Markets
• Dow Jones industrial average loses 118.04 points, or 0.31%, to close at 37,592.98.
• S&P 500 ends the day 0.08% higher at 4,783.83, and Nasdaq Composite gains 0.02% to settle at 14,972.76.
• UnitedHealth and Delta Air Lines fall nearly 9% despite exceeding quarterly earnings expectations.
• Bank of America, Wells Fargo, JPMorgan Chase, and Citigroup report declining fourth-quarter profits.
• Citigroup adds just above 1% after announcing workforce cuts.
European Markets
• Stoxx 600 index provisionally closed 0.77% higher, with most sectors trading in positive territory.
• Retail stocks climbed 1.46% despite luxury British brand Burberry trading down 7%.
• US wholesale prices recorded an unexpected monthly decline of 0.1% in December, up 1% annually.
• U.S. consumer inflation report showed an increase in consumer prices of 0.3% on the month and 3.4% year on year, higher than forecast.
• UK economy returned to growth in November, with gross domestic product expanding by 0.3%.
Asian Markets
• Taiwanese Democratic Progressive Party wins third-straight presidential term, causing a drop in Asia-Pacific markets.
• Lai Ching-te, incumbent vice-president, secures over 40% of popular vote.
• Investors await China’s fourth quarter gross domestic numbers and Japan’s December inflation figures.
• S&P/ASX 200 in Australia starts the week 0.15% lower.
• Japan’s Nikkei 225 and Topix reach new highs.
• South Korea’s Kospi trades above the flatline, but Kosdaq falls 0.12%.
• Hong Kong’s Hang Seng index futures stand at 16,306, indicating a stronger open compared to the HSI’s close of 16,244.58.
Oil Prices
As tensions in the Red Sea continue to rise, oil prices increased following military operations by the United States and Britain against targets in Houthi-controlled areas of Yemen.
Brent and West Texas Intermediate futures rose over 4% on Friday morning, reaching their highest points since December 27. While the global benchmark hit $80.75, U.S. crude oil surged to $75.25 per barrel. Later in the session, the benchmarks retreated, with Brent closing at $78.29 a barrel and U.S. crude closing at $72.68 a barrel.
Dollar Index
The dollar’s value stayed around Rs 83.09, while the Dollar index saw a 0.06 percent decline in futures trading at 102.44.
Gold Prices
• Middle East conflict escalates, fueling safe-haven buying and escalating gold prices.
• Softer U.S. producer price inflation boosts Federal Reserve’s interest rate cut predictions.
• Spot gold up 1% at $2,048.21 per ounce, extending run above $2,000 level to nearly a month.
• U.S. and Britain launched air strikes in Yemen, retaliation against Houthi forces.
• Rising geopolitical risk and potential U.S. central bank moderating monetary policy are driving gold prices up.
• Negative U.S. producer price index data also catalyzes price increase.
News Updates
Discuss in detail the main agenda items scheduled for the 54th WEF meeting in Davos in 2024.
The World Economic Forum (WEF) will have its 54th annual meeting at the Swiss Alpine School in the heart of Davos from January 15–19, 2024.
Transparency, consistency, and accountability are three fundamental trust-building concepts that will be highlighted throughout the conference, which has as its topic “Rebuilding Trust.” It seeks to unite more than a thousand multinational corporations, prominent international organisations, governments, academic institutions, and the media worldwide.
The “back to basics” theme of Davos 2024 will encourage candid and fruitful communication among leaders of industry, government, and civil society. The goal is to provide insight via the most recent developments in science, industry, and society while navigating the complexity of the contemporary environment.
Google dismisses hundreds more workers from its engineering and other divisions | How will AI affect employment in 2024?
Employees developing Google’s voice-activated assistant were let go. Google claims that the reorganisation will enhance Google Assistant as it investigates incorporating more recent artificial intelligence technology into its offerings. See to learn more.
Rises Rs 1.99 lakh cr in the Mcap of five of the top ten most valuable companies; Reliance excels
Last week, the market worth of five of the top ten most valuable companies increased by Rs 1,99,111.06 crore, with Reliance Industries emerging as the largest gainer and fostering bullish views.
The BSE benchmark increased by 542.3 points, or 0.75 percent, last week. The benchmark Nifty and Sensex equity indices rose more than 1% to reach new all-time highs on Friday.
With a combined loss of Rs 76,098.67 crore, HDFC Bank, Hindustan Unilever, ITC, State Bank of India, and Life Insurance Corporation of India (LIC) were the laggards, while Reliance Industries, Tata Consultancy Services (TCS), ICICI Bank, Infosys, and Bharti Airtel were the winners among the top ten. Reliance Industries increased its market valuation to Rs 18,53,865.17 crore by adding Rs 90,220.4 crore.
TCS’s valuation increased to Rs 14,20,333.97 crore from Rs 52,672.04 crore. Tata Consultancy Services’ stock increased by almost 4% on Friday following the company’s announcement of an 8.2% increase in net income at Rs 11,735 crore for the December quarter.
Mapping the World Economy: Fed to take the lead in moving towards interest rate reductions
The upcoming year is expected to be the year of interest rate cuts, with the Federal Reserve taking the lead in favour of wealthier nations.
Traders increased their wagers on the Fed’s aggressive plan to reduce borrowing costs this year following news that producer prices continued to decline in December. Despite this, there will be difficulties in controlling inflation because a gauge of consumer prices increased by the greatest in three months.
While similar measures declined in Chile and Norway in December, Argentina’s inflation rate exceeded 200% for the full year. While global inflation is largely declining, concerns about a resurgence of cost pressures are being heightened by rising transportation costs and an increase in oil prices.
Avenue Supermarts Q3: Revenue increases 17.3% as net profit for D-Mart operator jumps 17% to Rs 690 crore.
The retailer chain Avenue Supermarts, which owns D-Mart, announced on January 13 that its consolidated net profit for the third quarter of fiscal year 2023–24 was Rs 690.41 crore, a 17.09 percent increase from Rs 589.64 crore in the same time the previous year.
The company’s net profit on its own increased by 14.9% from Rs 641.07 crore to Rs 641.07 crore the year before. The consolidated income from operations of Avenue Supermarts increased 17.31% YoY to Rs 13,572.47 crore from Rs 11,569.05 crore in the December 2022 quarter. Compared to the previous year’s Rs 11,304.58 crore, the standalone revenue increased by 17.1%.
In Q3FY24, earnings before interest, tax, depreciation, and amortisation (EBITDA) were Rs 1,120 crore, up from Rs 965 crore in the same quarter the previous year. In Q3FY24, EBITDA margin was 8.3 percent, comparable to 8.3 percent in Q3FY23.
In the Mahanadi basin block, ONGC discovers gas twice in a row.
State-owned Oil and Natural Gas Corporation (ONGC) has produced two large back-to-back natural gas discoveries in a Mahanadi basin deepwater block in the Bay of Bengal as its calculated game plan of pushing into high-risk deep-water exploration starts producing results.
According to two people with firsthand knowledge of the development, the company made the finds in the block MN-DWHP-2018/1, which it had won in the open acreage licencing policy’s third round of auction in 2019. The fact that the finds were uncovered in an area that was previously designated as “no-go” due to national security concerns is noteworthy.
According to them, during the first testing, the first discovery, known as Uktal, flowed more than 3 lakh cubic metres of gas a day at a water depth of 714 metres. The other find, they added, is at a water depth of 1,110 metres.The Directorate General of Hydrocarbons (DGH), an upstream regulator, has been informed of the finds by ONGC, and the company is currently evaluating the size of the pool and its commercial potential.
Nifty might be nearing the end of its current surge | These 3 stocks could provide a short-term profit of 10–25%
Indian markets reached a record high just one week into 2024, with the Nifty index reaching a lifetime high of 21,928, marking a fresh breakout. The index surpassed the 21,500 support level and tested nearly 22,000 in futures trading, with the surge potentially continuing to reach 22,200–22,400 the following week. However, the long-short ratio of FII index futures has dropped from 70 percent in the previous week to 66%, indicating potential upside for the Nifty. This could be the end of the rally, with significant profit-taking. It is recommended that traders exercise caution when holding long positions and have a rigorous stop loss on the downside when investing in individual stocks, especially smallcap companies. A break of 21,500 is required to validate the temporary peak.
Nifty IT shining: Invest in these two IT firms to generate substantial rewards
Nifty has broken above the trading range of the previous eight sessions, where it was consolidating between 21,440 and 21,800, on the daily charts. Friday, January 12, 2024 saw giants TCS and Infosys post significant gains, contributing to the Nifty’s record highs. Reliance Industries also backed the surge since it has been trading at record highs for the past three trading sessions. Additionally, a strong sector rotation is evident, with several sectors contributing to the upward trend.
Based on Elliott wave theory, the current state of prices is wave iii of (v). Hence, it is advisable to consider declines as buying opportunities, unless there is any closing below the support level of 21,580 (what to do then, not buy?). A close over the 22,000 psychological barrier will prolong the short-term uptrend.
To put it briefly, the Nifty has recently broken out of the flag formation and could continue to rise towards levels of 22,118. As long as it is over 21,580, buying on dips can be a wise approach.
82 smallcaps rise 10–39% as the historic rally persists.
The market experienced a strong recovery on the final day of the week as investors celebrated the results from Infosys and TCS, the two largest IT companies, after the market began the week on a negative note and remained in consolidation for the following three days.
BSE Sensex gained 542.3 points, or 0.75 percent, to conclude at 72,568.45 on the week, while Nifty50 gained 183.7 points, or 0.84 percent, to close at 21,894.50. The Sensex and Nifty reached new all-time highs of 72,720.96 and 21,928.25, respectively, on January 12.
The BSE-Largecap, BSE-Midcap, and BSE-Smallcap broad indices all reached new all-time highs this week, rising by 0.7%, 0.45%, and 1.5%, respectively.
Sebi mulls framework allowing customers to voluntarily block trading accounts
The capital markets regulator, Sebi, announced on Friday that a framework enabling trading members to provide the option of voluntarily limiting online access to trading accounts for clients exhibiting suspicious activities will be implemented by April 1.
The regulator stated in a circular that the Brokers’ Industry Standards Forum (ISF), in partnership with stock exchanges and Sebi, will establish the framework. Guidelines for the comprehensive policy of voluntarily blocking or freezing a client’s online trading account will be included in the framework.
It will specify how clients can request such blocking, how long it takes to execute their requests and block their trading accounts, and how an acknowledgment will be sent out after the message is received. Additionally, Sebi stated that the trading member will take action after receiving a request to freeze or block the trading account and initiate the process of re-enabling the customer to trade.
Paytm’s stake is increased by domestic retail investors to 12.85%.
In the third quarter that ended in December 2023, domestic retail investors grew their position in Paytm from 8.28 percent to 12.85 percent sequentially. The share of domestic institutions climbed as well, rising from 4.06 percent to 6.06 percent due to a rise in mutual fund investments.
The domestic mutual funds Mirae Mutual Fund and Nippon India Mutual Fund increased their holdings in the fintech behemoth by 2.20 percent for the quarter and now hold 4.99 percent at 3,16,64,315 shares, according to the most recent shareholding pattern for Q3FY24.
The remaining portion is still invested in other domestic organisations, such as insurance companies (0.40), provident funds/pension funds (0.05), and alternative investment funds (0.63).
Stocks in news
HCL Technologies: Beating analyst forecasts, the IT business reported a 13.5 percent QoQ gain in profit at Rs 4,350 crore for the quarter ended December FY24. The quarter’s revenue increased sequentially by 6.7% to Rs 28,446 crore, with revenue growth in constant currency remaining at 6%.
Wipro: For the quarter ended December FY24, the company reported IT services revenue of Rs 22,150.8 crore, down 1.09 percent from the previous quarter. Revenue in dollars fell 2.1 percent sequentially to $2,656.1 million, and the same in constant currency fell 1.7 percent quarter-over-quarter.
Tata Consumer Products: The FMCG giant has finalised deals to pay Rs 5,100 crore and Rs 1,900 crore, respectively, for a 100% ownership in Capital Foods and Organic India.
Adani Enterprises: Adani New Industries, a wholly-owned subsidiary of the company, has received a Letter of Award (LoA) from Solar Energy Corporation of India (SECI) for setting up electrolysers manufacturing capacity of 198.5 MW per annum in India under Strategic Interventions for Green Hydrogen Transition Scheme (Tranche-I).
Bharat Heavy Electricals: BHEL has obtained a Letter of Award (LOA) for an EPC package for the 3×800 MW NLC Talabira Thermal Power Project (NTTPP) in Jharsuguda, Odisha from NLC India. The project has a 15 billion rupee value.
Just Dial: During the quarter that concluded in December of FY24, the local search engine reported a 22.3 percent year-over-year increase in net profit at Rs 92 crore. At the same time, operating revenue rose by 19.7 percent YoY to Rs 265 crore.
Vikas Lifecare: The joint venture business IGL Genesis Technologies with Indraprastha Gas (IGL) has successfully been incorporated by subsidiary Genesis Gas Solutions. In the joint venture, Genesis Gas owns 49% and IGL 51% of the shares.
FSN E-Commerce Ventures: The asset management company Lexdale International has sold 2,62,37,880 equity shares in the parent company Nykaa through open market transactions. These shares, which were valued at Rs 495.4 crore, were sold for an average price of Rs 188.83 per share.
Avenue Supermarts: The D-Mart operator has registered 17 percent on-year improvement in consolidated profit at Rs 690 crore for the quarter ending December FY24. During the same time, EBITDA increased by 16 percent to Rs 1,120 crore and revenue from operations increased by 17.3 percent to Rs 13,572 crore; nevertheless, the margin was same at 8.3 percent on an annual basis.
Gillette India: Nippon India Mutual Fund has paid Rs 222.91 crore, or an average of Rs 6,755 per share, for 3.3 lakh equity shares in the company through open market transactions. Nevertheless, the company’s 6 lakh shares (1.84 percent of paid-up equity) were sold by corporate business Adventz Finance for an average price of Rs 6,757.60, making the total valuation of the shares Rs 405.5 crore. Adventz possessed 3.41 percent of the business’s equity.
Just Dial: During the quarter that concluded in December of FY24, the local search engine reported a 22.3 percent year-over-year increase in net profit at Rs 92 crore. At the same time, operating revenue rose by 19.7 percent YoY to Rs 265 crore. Due in large part to robust cost reductions and topline growth, EBITDA margin increased 1,054 bps YoY.
Aditya Birla Money: The company’s net profit for the quarter that ended in December of FY24 was Rs 15.15 crore, up 73.6 percent from the same time last year. Revenue from operations climbed by 51.5 percent to Rs 101.3 crore during the same period.
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