Share Market News Today | Sensex, Nifty, Share Prices Highlights: The benchmark equity indices ended Friday’s trading session in the positive territory. The NSE Nifty 50 gained 129.95 points or 0.59% to settle at 22,040.70, while the BSE Sensex jumped 376.25 points or 0.52% to 72,426.64. The broader indices ended in positive territory, with gain led by Small-cap and Mid-cap stocks. Bank Nifty index ended higher by 165.95 points or 0.36% to settle at 46,384.85. Auto and Pharma stocks outperformed among the other sectoral indices while PSU Banks and Energy stocks shed.
The NSE Nifty 50 gained 0.59% to settle at 22,040.70, while the BSE Sensex jumped 0.52% to 72,426.64.
Aurobindo Pharma shares jumped more than 3.5% on Friday, February 16, after the pharma company said the United States Food and Drug Administration (USFDA) completed the inspection at the manufacturing unit of its synthetic peptides active pharmaceutical pngredient (API) business arm, Auro Peptides Ltd in Telangana.
“Monetary policy decisions for the year will likely be influenced by the domestic growth trajectory and potential actions by the US Federal Reserve. The RBI is anticipated to maintain a cautious stance due to the risk of food inflation translating into generalized inflation. The recent rebound in Industrial Production (IIP) growth in December, particularly in the manufacturing sector, is supported by optimistic sentiments in the industry. Overall, the RBI is expected to prioritize stability and remain vigilant amid global uncertainties,” said Roshan Shah, Co-founder & CEO, VoloFin
USDINR CMP- 83.02 (spot) “Indian Rupee appreciated slightly by 0.02% on Friday on positive domestic markets. However, a recovery in US Dollar index and surge in crude oil prices capped sharp gains. US Dollar index recovered on declining expectations of a rate cut by Fed in March and May 2024. Economic data from US was slightly disappointing for the greenback. We expect Rupee to trade with a slight positive bias on rise in risk appetite in global markets. However, positive tone in US Dollar and concerns over FII outflows may cap sharp upside. Traders may take cues from PPI, building permits, housing starts, UoM consumer sentiment and inflation expectations data from US. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.20,” said Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas.
Shares of One97 Communication rose 5% to hit the upper circuit of Rs 341.30. The stock earlier hit a fresh 52-week high of Rs 318.05.
“Yesterday’s doji stands in the way of a smooth passage enroute 22450-550 objectives. This raises the prospects of rejection trades near 22100, which is a fair possibility. However, we will persist with the “buy on dips” approach, until below 21785,” said Anand James, Chief Market Strategist, Geojit Financial Services.
JM Financials has affirmed their ‘Buy’ rating, projecting a target price of INR 1,850. The valuation is based on a sum-of-the-parts (SOTP) analysis, considering a 16x multiple for the core business.
M&M’s 3QFY24 EBITDA margin, as reported, stands at 12.8%, showing a marginal -20 basis points YoY but a positive +20 basis points QoQ. JM Financials notes that this performance is 40 basis points above their own estimations, indicating a favorable operational performance for the company.
JM Financials anticipates a decline of 10% and 5% in the domestic tractor industry during 4Q and FY24, respectively. This contraction is attributed to subdued demand and inventory correction. The report emphasizes that a normal monsoon will play a pivotal role in enabling growth in FY25. The revival of tractor demand is identified as a key monitorable for the industry.
M&M, Bajaj Auto, SBI, Wipro, and Maruti Suzuki were the top gainers in the Nifty 50. Power Grid, Britannia, Apollo Hospital, Axis Bank, and Reliance Industries were the key losers in the Nifty 50.
” While we wait for a push above 83.06 to play a 83.17 move, dips below 83 may also be accumulated for brief upswings. Slippage past 82.9 could change the bias though,” said Anand James, Chief Market Strategist, Geojit Financial Services.
The NSE Nifty 50 gained 143.85 points or 0.66% to 22,054.60. The 30-stock BSE Sensex was up 399.57 points or 0.55% to 72,449.95.
Mahindra and Mahindra shares soared 5% to hit a fresh 52-week high of Rs 1,864 on Friday, February 16, after the leading automaker announced it was signing a component supply agreement with Volkswagen for its electric platform INGLO.
“Nifty weekly contract has highest open interest at 21950 for Calls and 21900 for Puts while monthly contracts have highest open interest at 23000 for Calls and 21000 for Puts. Highest new OI addition was seen at 21950 for Calls and 21900 for Puts in weekly and at 23000 for Calls and 21900 for Puts in monthly contracts. FIIs decreased their future index long position holdings by 2.05%, decreased future index shorts by 4.05% and in index options by 8.54% increase in Call longs, 14.80% decrease in Call short, 15.06% increase in Put longs and 0.57% decrease in Put shorts,” said Anand James, Chief Market Strategist, Geojit Financial Services.
The stocks of Natco Pharma soared 15.5% to hit a new 52-week high of Rs 1,024 after the company’s management raised the net profit guidance for the current financial year.
The shares of JSW Steel share gains over 1.10% to Rs 821.30 in the intra-day trade on Friday on the following news that JSW Group plans to establish an integrated steel plant, power plant, port facility, and cement plant in Jagatsinghpur, Odisha, with an investment of Rs 65,000 crore. The steel plant will produce 13.2 million tons of steel annually and generate 30,000 jobs. The port and jetty project will handle 52 million tons of cargo annually.
Elara Securities has reiterated its ‘Accumulate’ rating, accompanied by a higher target price of INR 1,860, up from the previous Rs 1,688. The report delves into various aspects of M&M’s business, highlighting both positive and cautionary observations.
Elara Securities underscores the importance of monitoring M&M’s order book reduction, attributing it to a higher cancellation rate in recent months. The report suggests that this trend requires close attention, emphasizing the need for M&M to address and mitigate potential challenges associated with order cancellations.
The report suggests that M&M should explore avenues to increase volume contribution from lower-priced variants of the XUV 700 to sustain momentum. Additionally, the response to upcoming launches, including the Thar 5-door and XUV 300 refresh in the next six months, is anticipated to be a key factor influencing M&M’s market performance.
Shares of Glenmark Pharma jumped 9.7% to the intraday high of Rs 888.85. The company’s 52-week high is Rs 922.70, which it touched on January 31.
The NSE Nifty Auto Index gains over 2% in the intra-day trade on Friday. TVS Motors, Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki, and Tata Motors remain the top gainers on NSE Nifty Auto index.
Jefferies retains a “Hold” rating on Mahindra & Mahindra, accompanied by an increased target price of Rs 1,615, up from the previous target of Rs 1,580. The report indicates a cautious stance, suggesting that while M&M possesses a robust tractor business and an improved auto franchise.
Despite the overall growth, Jefferies notes a contraction of 50-80 basis points quarter-on-quarter in the EBIT margins of both the farm and auto segments. Of particular concern is the intensifying slowdown in the tractor segment, following an extended period of growth.
Jefferies highlights a sharp decline in M&M’s auto order book over the last three months. However, the report also acknowledges that the new order inflow for the auto segment is holding up well, indicating a mixed picture for the company’s automotive business.
The report emphasizes that M&M’s stock is currently trading at 17 times the estimated core business PE for fiscal year 2025 (FY25E), which is considered relatively expensive. This valuation stands in contrast to the long-term average of 14 times FY25E core business PE. Jefferies expresses skepticism about the stock’s potential to deliver meaningful returns in the near term, linking this outlook to the current challenges in tractor demand visibility.
The sectoral-index Nifty Auto jumped 2.13% to the intraday high of 20,407.90 points from its previous close of 19,981.70 points. The index was trading highest among its peers.
“Entero Healthcare Solutions Ltd.’s initial public offering (IPO) witnessed a negative debut, listing at Rs 1228 per share, a 2.33% decline from its issue price of Rs 1258. This underwhelming performance fell short of pre-listing expectations and highlighted certain concerns surrounding the company’s financial health. While Entero possesses certain strengths, its financial situation calls for a cautious approach, and this stock is best avoided by new investors. Even investors who got allotments through IPO are advised to exit their holdings,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Entero Healthcare Solutions was listed on the bourses at a discount of 2.3% to Rs 1,228.70. The company set the IPO’s issue price band at Rs 1,195-1,258 per equity and raised a total of Rs 1,600 crore by offering 12.7 million shares.
BPCL, Bajaj Auto, Tata Motors, M&M, and Infosys were the top gainers in the Nifty 50 today during the early trade hours. While Power Grid, Apollo Hospitals, ITC, HCL Technologies, and ONGC were the key losers in the Nifty 50.
Shares of Bharat Petroleum Corporation inched 5.4% to Rs 687.95. The stock was the top gainer in the Nifty 50.
Commenting on the Nifty Rupak De, Senior Technical Analyst, LKP Securities said that, Nifty exhibited volatility throughout the day but eventually closed above the resistance level of 21850. According to the daily chart, Nifty has experienced a consolidation breakout, indicating a positive shift in sentiment. Additionally, the index has closed above the 20DMA for the third consecutive session, and the RSI shows a bullish crossover. In the short term, there is a possibility of the index moving towards 22200. On the downside, support is situated at 21750.