Market Commentary - Quick Review
The domestic equity indices ended with significant gains on Tuesday, advancing for the sixth day in a row. The Nifty settled near the 22,200 mark after hitting the day?s low of 22,045.85 in morning trade. Media, financial services and bank stocks advanced while IT, auto and metal shares declined.
As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 349.24 points or 0.48% to 73,057.40. The Nifty 50 index added 74.70 points or 0.34% to 22,196.95.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap shed 0.17% and the S&P BSE Small-Cap index declined 0.18%.
The market breadth was positive. On the BSE, 1,952 shares rose and 1,883 shares fell. A total of 96 shares were unchanged.
New Listing:
Shares of Vibhor Steel Tubes was locked in an upper circuit of 5% at Rs 442 on the BSE, representing a premium of 192.72% as compared with the issue price of Rs 151.
The scrip was listed at Rs 421, exhibiting a premium of 178.80% to the issue price. On the BSE, over 1.10 lakh shares of the company were traded in the counter so far.
Buzzing Index:
The Nifty Media index gained 2.27% to 2,223. The index advanced 3.70% in the three trading sessions.
Zee Entertainment Enterprises (up 7.93%), TV18 Broadcast (up 4.97%), Dish TV India (up 4.21%), Network 18 Media & Investments (up 0.93%) and Hathway Cable & Datacom (up 0.61%) and Sun TV Network (up 0.19%). advanced.
Stocks in Spotlight:
Federal Bank dropped 5.34% while Kotak Mahindra Bank rose 1.83% after Kotak Mahindra Bank secured KVS Manian for top position, leaving Federal Bank's CEO candidate search in question.
Kotak Mahindra Bank has promoted KVS Manian, the current whole-time director, to joint managing director, and Shanti Ekambaram, also a whole-time director, to deputy MD, effective from 1 March 2024. This move has raised questions about the ongoing CEO candidate search at Federal Bank, as KVS Manian was reportedly one of the candidates being considered for the MD and CEO position at Federal Bank, along with two internal candidates. This development occurred amid the forthcoming conclusion of the term of Federal Bank's current MD & CEO, Shyam Srinivasan, on 22nd September 2024.
Godrej Consumer Products shed 0.23%. The company and its arm will divest entire stake in its in Mauritius-based unit Godrej East Africa Holdings to HKG Africa Weave for consideration of Rs 30 crore.
Zaggle Prepaid Ocean Services zoomed 14.06% after the company entered into agreements with Bennett, Coleman & Co. and Easy Trip Planners (EaseMyTrip).
Vipul Organics surged 19.98% after the company announced the receipt of environmental clearance for proposed expansion from 10 metric tones per month (MT/M) to 508 MT/M at its Ambernath facility.
Piramal Enterprises shed 0.13%. The NBFC's board will meet on Thursday, 22 February 2024 to consider issuing non-convertible debentures aggregating up to Rs 600 crore on private placement basis.
JSW Infrastructure advanced 2.53% after it received letter of intent (LoI) from Jawaharlal Nehru Port Authority (JNPA) for a work order through public private partnership (PPP) mode.
CIE Automotive India shed 2.43%. The company?s consolidated basis, net profit was reported at Rs 168.94 crore in Q4 December 2023 as against net loss of Rs 657.81 crore in Q4 December 2022. Net sales declined 0.29% YoY to Rs 2240.40 crore in Q4 December 2023. The board approved a final dividend of Rs 5 per share.
Wardwizard Innovations & Mobility jumped 5.64% after the Joy e-bike achieved a milestone of crossing 100,000 sales in India. The company rolled out its 100,000th unit, Mihos from its manufacturing plant in Vadodara to mark the achievement.
Global Markets:
Markets in Europe and Asia traded mixed on Tuesday, influenced by the closure of US markets in the preceding session.
The People's Bank of China took an unexpected step by reducing its five-year benchmark loan prime rate on Tuesday, aiming to further ease monetary conditions and support the decelerating economic recovery. The cut in the five-year LPR, instrumental in determining mortgage rates, lowered it from 4.10% to 3.95%, while the one-year LPR remained unchanged at 3.45%.
The US Dow Jones index futures were currently down by 75 points, signaling a negative opening for US stocks today. This decline is attributed to ongoing uncertainty regarding the trajectory of interest rates. Traders remain cautious and on edge due to the anticipation of key earnings reports, notably from NVIDIA Corporation, adding to the market's overall sense of unpredictability. The absence of trading cues on Monday, owing to a US market holiday, is expected to give way to increased trading activity in the upcoming days, particularly as the earnings season progresses.
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