Morning Update :–Bajaj Auto, Adani Ports, Coal India, Bajaj Finance, and Hero MotoCorp were among the Nifty’s biggest gainers, while Tech Mahindra, HCL Technologies, Tata Steel, Cipla, and Bharti Airtel fell.
Sensex – Fall -301 Points at 70,758
Nifty 50 – Fall -70 Points at 21,383
Indian Market
FII AND DII
| FII Sold | 6,934.93 Cr |
| DII Bought | 6,012.67 Cr |
Indian Market News
- Asian markets trade largely down; Nikkei and Kospi are down 0.5% each.
- Oil prices jump on a significant draw in US oil stocks and China’s stimulus prospects.
- Dollar remains at 6-week highs ahead of US GDP; focus on ECB meeting.
- DLF Q3 net profit is up 26% YoY at Rs 649 crore.
- The RBI will conduct a 15-day variable rate repo auction on January 25.
- TVS Motor’s Q3 net profit rises 68% YoY at Rs 593 crore.
- The S&P 500 reaches another new high as Netflix and chipmakers surge.
- Piramal Enterprises’ arm would acquire a 10.39% interest in Annapurna Finance for Rs 300 crore.
- Bajaj Auto Q3FY24 net profit up 37% YoY at Rs 2,042 crore due to strong sales and price rises.
- Titagarh Rail has signed an agreement with Amber Group to spend Rs 120 crore.
- Tata Steel swings to profit in Q3 on strong India demand, but misses expectations.
- PNB Housing Finance Q3 PAT jumps 26% on year to Rs 338 crore.
- CMS Info Systems’ Q3 consolidated PAT grows 15% YoY to Rs 87 crore.
- CONCOR Q3 net profit increased by 9.5% YoY to Rs 333.67 crore.
- Zed moves NCLT after Sony terminates a $10 billion transaction
Global Markets updates
GIFT Nifty
With a loss of 22.50 points, or 0.10 percent, the GIFT Nifty trends suggest a flat-to-negative start for the larger index in India. Around 21,443.00 was where the Nifty futures were trading at the time.
US Markets
The S&P 500 closed on Wednesday at a new high, reaching a fourth consecutive finish as advances in chipmakers were fueled by increases in ASML and Netflix, which soared after quarterly reports that were out of this world.
At 4,868.55 points at the end of the session, the S&P 500 increased by 0.08 percent.
Declining equities outpaced rising peers in the index by a ratio of 2.5 to 1, despite the S&P 500’s rise. While the Dow Jones Industrial Average fell 0.26 percent to 37,806.39 points, the Nasdaq increased 0.36 percent to 15,481.92 points.
Asian Markets
As investors evaluated South Korea’s GDP figures and as markets reacted to China’s central bank lowering reserve requirements for the nation’s lenders, Asian markets primarily declined.
Oil prices
Due to a larger-than-expected US crude storage withdrawal, a decline in US crude output, geopolitical tensions, Chinese economic stimulus, and a weaker US dollar, oil prices rose by almost 1% on Wednesday to a four-week high.
By 12:03 p.m. EST (1703 GMT), Brent futures had increased by $1.03, or 1.3 percent, to $80.58 per barrel. At $75.68, US West Texas Intermediate (WTI) crude saw an increase of $1.31, or 1.8 percent.
WTI was headed for its highest settlement since November 30 and Brent was headed for its best since December 26. Additionally, US petrol and diesel futures were on track for their best closings in weeks.
US dollar
Following advances in eight of the previous ten sessions, the US dollar fell on Wednesday as speculators booked profits sparked by a widespread reversal of the currency’s December slide.
However, reports indicated that economic activity in the greatest economy in the world increased in January and that a measure of inflation decreased, which caused the US currency to pare its losses. According to data, a measure of what businesses charge for their goods dropped to its lowest point in more than three and a half years.
Gold Prices
Even if losses were contained by a declining dollar, gold fell on Wednesday as investors anticipated further economic data to determine when the Federal Reserve could first lower interest rates.
At 2:13 p.m. ET (1913 GMT), spot gold was down 0.7 percent at $2,014.56 per ounce, heading into its weakest day in a week. US gold futures ended the day at $2,016.00, down 0.5 percent.
News Updates
Due to strong sales and price increases, Bajaj Auto’s Q3FY24 net profit increased 37% YoY to Rs 2,042 crore.
In the third quarter of FY24, Bajaj Auto Ltd recorded a 37 percent YoY increase in net profit of Rs 2,041.88 crore, driven by strong sales of its two-wheelers, price hikes, and better realisations despite steady demand. Its PAT was Rs 1,491.42 crore for the same time in the previous year.
With the help of an improved product mix that favoured premium cars and raised their average selling price (ASP), the Pune-based automaker’s income from October to December 2023 grew by 30% to Rs 12,113.51 crore. Its revenue during the third quarter of FY23 was Rs 9,315 crore.
DLF’s Q3 net profit of Rs 649 crore was up 26% YoY.
In a regulatory statement on January 24, DLF Limited stated that its consolidated net profit for the third quarter of this fiscal year was Rs 649 crore, a 26% YoY increase. It also stated that DLF, supported by several launches throughout the quarter, recorded the highest quarterly sales booking of Rs 9,047 crore.
According to a regulatory filing, the company’s consolidated sales increased from Rs 1559.66 crore in the same time last year to Rs 1644 crore in October–December of 2023–24.
TVS Motor’s Q3 net profit soars to Rs 593 crore, up 68% YoY.
According to financial data released by the two-wheeler company on January 24, TVS Motor had a standalone net profit of Rs 593 crore for the quarter ending in December 2023, which is 68 percent higher than Rs 352 crore in the same time last year.
The company’s operating revenue for the third quarter of FY24 was Rs 8,245 crore, which is 26% more than the Rs 6,545 crore recorded for the same time in the previous fiscal year.
To reach Rs 924 crore, earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 40% year over year. The EBITDA margin for the quarter was 11.2 percent, up from 10.1 percent in the same time last year.
Stocks in news
Bajaj Auto: For the quarter ended December FY24, the two-and-three-wheeler company reported a 37 percent year-over-year increase in standalone net profit at Rs 2,042 crore, with widespread double-digit growth across all segments. Operations revenue increased by 30% year over year to Rs 12,113.5 crore for the quarter, driven by a 21.7 percent increase in sales volume.
Tech Mahindra: During the October–December fiscal year of FY24, the digital transformation, consultancy, and business re-engineering services provider reported a 3.3 percent sequential increase in net profit at Rs 510.4 crore. To Rs 13,101 crore, revenue from operations increased by 1.8% on a quarterly basis.
Tata Steel: With strong operating results and a decline in input costs, the Tata Group company reported consolidated net profit at Rs 522.1 crore for the quarter ended December FY24, compared to a loss of Rs 2,502 crore in the same time last year. Operating revenue for the quarter was Rs 55,312 crore, a 3.1% decrease from the previous year.
CEAT: Supported by robust operating statistics, the tyre manufacturer reported a more than five-fold increase in consolidated net profit at Rs 181.3 crore for the October–December period of FY24, up from Rs 34.85 crore in the same period the previous year. For the quarter, revenue from operations increased 8.6% YoY to Rs 2,963.1 crore.
TVS Motor Company: For the quarter that ended in December of FY24, the two-and three-wheeler manufacturer had a 68 percent year-over-year gain in net profit at Rs 593 crore. Additionally, operating income rose by 26 percent to Rs 8,245 crore, while total two-wheeler sales jumped by 27.1 percent to Rs 10.63 lakh units.
DLF: With strong operational margin performance and increased other income, the real estate giant reported a 26.6 percent year-over-year increase in consolidated net profit for the quarter that ended in December of FY24, totaling Rs 655.7 crore. For the quarter, revenue from operations reached Rs 1,521.3 crore, up 1.8 percent on an annual basis.
Mazagon Dock Shipbuilders: The Ministry of Defence’s acquisition wing and the shipbuilding company inked a deal for the production and delivery of 14 Fast Patrol Vessels (FPVs) for the Indian Coast Guard (ICG). The contract has a 1,070 crore rupee value.
Zed Entertainment Enterprises: In response to Culver Max and Bangla Entertainment (BEPL), the media and entertainment firm stated that it has complied with all of its commitments in good faith and denied any violations of the terms of the Merger Cooperation Agreement (MCA). ZED went on to say that the $90 million termination fee claim is completely unfounded and legally untenable. ZED has demanded that BEPL and Culver Max immediately rescind their termination and certify that they will fulfil their responsibilities to carry out and execute the merger plan approved by the National Company Law Tribunal.
Poonawalla Fincorp: At an average price of Rs 495.85 per share, promoter Rising Sun Holdings has acquired an additional 40,33,000 equity shares, or 0.52% of the non-banking finance firm. But in this transaction, Magma Ventures was the seller.
Container Corporation of India: With robust operating results, the state-owned transportation corporation reported a 12.7 percent year-over-year increase in consolidated net profit to Rs 330.6 crore. For the quarter, total revenue from operations increased by 10.3 percent on an annual basis to Rs 2,210.6 crore.
Coal India: A coal-to-SNG (synthetic natural gas) project through a joint venture between GAIL and Coal India, as well as a coal-to-ammonium nitrate project through a partnership between Coal India and BHEL, have been approved by the Cabinet Committee on Economic Affairs (CCEA). In an effort to meet the goal of 100 MT coal gasification by 2030, Coal India plans to establish two coal gasification plants.
DCB Bank: The private lender reported a 11.4 percent year-over-year improvement in net profit for the third quarter of FY24, totaling Rs 127 crore. This gain was driven by a 30.5 percent increase in other income and a 9 percent increase in pre-provision operational profit. During the quarter, net interest income increased by 6.3 percent year over year to Rs 474 crore, driven by a 13% rise in net advances and a 14% increase in deposits.
NHPC: At a price of Rs 71 per equity share, the Government of India intends to provide up to 50.5 lakh qualified and willing employees of NHPC, including its subsidiaries, with equity shares. We’ll let you know when the aforementioned offer-for-sale to staff opens in due course.
Dalmia Bharat: With strong operating results, the cement manufacturing company announced a 22.2 percent year-over-year increase in net profit for the third quarter of FY24, coming in at Rs 266 crore. In comparison to the same period last year, revenue from operations increased by 7.3 percent to Rs 3,600 crore. Comparing the quarter to the same period in the previous fiscal year, its EBITDA increased 20.3 percent to Rs 775 crore and its EBITDA per tonne increased 11.3 percent to Rs 1,138.
RailTel Corporation of India: With strong topline and operating figures, the state-owned business reported a 94.5 percent year-over-year increase in net profit at Rs 62.1 crore for the quarter that concluded in December of FY24. For the quarter, revenue from operations increased by 47.1% on an annual basis to Rs 668.4 crore.
PNB Housing Finance: During the quarter ended December FY24, the housing finance company reported consolidated net profit of Rs 338.4 crore, up 25.8% from the same period the previous year. However, there was a notable decrease in impairment on financial instruments and write-offs, which dropped to Rs 59.1 crore from Rs 254.84 crore. Operating revenue for the quarter was Rs 1,754.8 crore, a 2.3 percent YoY decline.
Quick Heal Technologies: The cybersecurity and antivirus software provider reported a consolidated net profit of Rs 10.06 crore for the quarter that concluded in December of FY24, up from a loss of Rs 9.3 crore during the same period the previous year. Operating revenue for the quarter increased to Rs 81.9 crore, a 22.6 percent year-over-year increase.
UCO Bank: For the third quarter of FY24, the state-owned lender reported a 23 percent year-over-year reduction in net profit of Rs 502.8 crore. Pre-provision operational profit decreased 17.3 percent to Rs 1,119.1 crore for the period, while net interest income increased 1.9 percent YoY to Rs 1,988 crore. Asset quality improved throughout the quarter, with net non-performing assets (NPA) decreasing 13 bps QoQ to 0.98 percent and gross non-performing assets (NPA) declining 29 bps sequentially to 3.85 percent.
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