Sensex Today | Share Market Live Updates: Sensex jumps 600 pts; Nifty near 21,700; IT, realty stocks shine

As we step into 2024, commodity stocks are poised for resilience and potential gains in the economic landscape. Anticipated interest rate declines by year-end suggest a favourable outlook for commodities, as their prices often inversely correlate with interest rates. Higher rates typically dampen commodity prices due to increased costs for holding inventories. (Read here)

Tata Motors-owned Jaguar Land Rover reported a 27% rise in total wholesales at 1,01,043 units in the third quarter ended December as compared to the year-ago period.

Q3 FY24 Earnings Preview for YES Securities universe (Ex Financials & OMC):

Topline growth is seen at 8.8% y/y, reflecting a slight pick-up compared to the previous two quarters. This can be

attributed to a rebound in economic activity. EBITDA margins are likely to expand by 186bps y/y basis, touching

19.4%, the best seen in the past 7 quarters, however sequentially the number is growing by a mere 4bps. PAT

growth of 27% y/y basis is the strongest seen in the last 8 quarters

> Topline growth of 8.8%y/y for our coverage universe is a positive takeaway as it snaps the falling revenue growth trend observed over the last seven quarters. The revenue growth for Q3 will be primarily driven by Consumption and infra-based sectors like Consumer Durables, Auto, Cement, and Capital Goods.

> Q3 margins are likely to witness an improvement of 186bps y/y to 19.4%, marking the second consecutive quarter of y/y expansion. However, on a sequential basis, the expansion rate has tapered to a mere 4bps, indicating the best is behind us. Consumption and Infra sectors which witnessed a strong uptick in topline, are also witnessing strong rebound in operational margins. For global-facing sectors, Pharma is likely to witness decent margin expansion while IT is likely to report a 36bps contraction.

> Topline growth along with improving operational efficiency drives PAT growth of 27% y/y, the best traction seen in the last eight quarters. In the current quarter, Metal companies are likely to turn black (Q2 FY24 reported losses on an aggregate basis). On the negative side, margin erosion in IT is likely to impact aggregate profitability.

For Financials: Softening NIM margin to offset a steady uptick in credit growth, NII to expand 13%.

>NII for Banks is expected to register a 10%  rise, as steady credit demand offsets NIM contraction. Wage revision in SBI will impact the aggregate PPoP, which may witness a de-growth of 7%y/y, the 1st contraction in the last 7 quarters. This will impact PAT, which is likely to grow by a mere 1% y/y, the worst growth post-June

2020.

> While NBFC and SFBs will continue to witness a strong performance, with NII/Revenue and PAT growing at 22.7% & 24.4% y/y respectively. 

Oil & Gas and OMCs: These are the only two sectors to witness a revenue downtick y/y basis and that too because of lower oil pricing hurting realization for upstream companies, while resulting in inventory loss for OMCs

Alok Industries shares are rising after the news of Reliance Industries investing in the company via a preferential route. Sumeet Bagadia, executive director at Choice Broking said, “Alok Industries shares are in a bull trend and it may soon go up to ₹39 apiece levels. So, those who have Alok Industries shares in their stock portfolio, are advised to hold the scrip for the ₹44 target maintaining stop loss at ₹33. Once it breaches the ₹39 hurdle, the stock may soon touch ₹44 and ₹48 per share target in the short term.”

The company and its associate IRB Infrastructure Trust, one of the largest Infrastructure Investment Trusts in India’s highways sector, have collectively reported toll collection growth of 26% in the month of December 2023 over the corresponding month of FY23

Adani Ports and Special Economic Zone, the largest private port operator in India, entered the bond market for the first time in over two years on Monday, with the issue garnering strong demand. Brokerage firm Motilal Oswal Financial Services raised target price on Adani Ports shares as it believes the company is well positioned to surpass volume guidance of FY24.

The company has signed two memorandum of understanding (MoUs) with the Tamil Nadu government to invest over ₹3,400 crore in the state over the next 3-4 years.

The company’s board has approved the proposal for buyback of up to 4,000,000 shares of face value of ₹10 each at a price of ₹10,000 per share for a total consideration not exceeding ₹4,000 crore.

Zee Entertainment’s shares plunged 10% in opening deals on Tuesday after reports suggested its proposed merger with Sony Group was likely to be called off.

Stocks to Watch today: Bajaj Auto, Aurobindo Pharma, Tata Motors, Cipla, BEML. Balrampur Chini Mills, Bandhan Bank, Chambal Fertilisers, Delta Corp, Escorts, GNFC, Hindustan Copper, Indian Energy Exchange, India Cements, Nalco, Piramal Enterprises, SAIL, and ZEEL are part of the F&O ban for Tuesday

Oil prices showed signs of stabilization following a decline in the previous session. This steadying of prices comes as markets balance concerns over tensions in the Middle East, demand uncertainties, and an increase in supply from OPEC.

Brent crude futures climbed 18 cents, or 0.2%, to reach $76.30 per barrel. West Texas Intermediate crude futures saw a slight uptick, rising 6 cents, or 0.1%, to stand at $70.83 per barrel.

Bloomberg Index Services on Monday proposed including eligible Indian bonds in its emerging market local currency index from September, a move that could lead to billions of dollars of inflows into the country.

The proposal comes just a few months after JPMorgan said it would include India in its widely tracked emerging market debt index from June. (Reuters)

Mutual funds may get to invest in companies traded in Gujarat’s Gift City exchanges beyond the normal cap that applies for their overseas investments. The move comes at a time the government is opening up the special economic zone for direct listing of Indian firms. (Read more)

“Nifty after the small pullback, once again witnessed a big bearish candle with heavy profit booking seen to erode the gains and has arrived near the crucial support zone of 21,500 levels with bias turning cautious. The next important support level would be near 21,350 levels of the lower band of the ascending channel pattern on the daily chart below which the bias and sentiment shall turn weak and with the result season beginning, we anticipate volatility and fluctuations in the market.”

“Bank Nifty tanked heavily losing more than 700 points and closing near 47,450 levels with all the major frontline banking stocks shedding their gains. With the index eroding heavily, the bias has turned a little bit cautious with the next major support zone maintained near 46,300 levels,” said Parekh.

Parekh recommended three intraday stocks for today — Hemisphere Properties, VETO Switch Gears, and Redington.

Indian stock indices may open flat tracking Gift Nifty that was trading at 21,692.5, down 9 points. Asian stock markets may offer some support as most indices recorded gains on the heels of a tech-driven surge on Wall Street.  

Sensex and Nifty fell sharply on Monday amid volatile trade and as lacklustre business updates hinted at weak quarterly results. Sensex ended at 71,355.22, down 671 points and Nifty closed 0.9% lower at 21,513.

Asia’s stock indices were mostly higher Tuesday after a tech-led surge on Wall Street. Investors await the next set of U.S inflation numbers due this week, which could hint at when the Federal Reserve might start cutting interest rates.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5%, after U.S. stocks ended the previous session with gains.