MARKET OVERVIEW :

Currency Market Overview February 23, 2024

Sensex Today | Share Market Live Updates : Sensex up 100pts, Nifty muted at 22,250; PSBs top drag, IT, Pharma, Realty up:

IPOs do well.

Foreign institutional investors (FIIs) net sold shares worth ₹1,410.05 crore, while domestic institutional investors (DIIs) bought ₹1,823.68 crore worth of stocks on February 22, provisional data from the NSE showed.

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Companies reporting December 2023 quarter results on Friday, February 23 include Rain Industries, Sanofi India, Valecha Engineering, Enkei Wheels (India) and Foseco India.

Asian stocks extended gains Friday, fueled by the global rally in equities that’s seen share markets from the US to Europe and Japan hit all-time highs.

Mainland China and Hong Kong shares fluctuated at the open. Equities in Australia and South Korea both advanced. Japanese markets are closed Friday for a public holiday.

The bullish mood continued on Wall Street overnight, with a buoyant outlook for Nvidia Corp., helping it surge 16% amid artificial-intelligence mania, while fresh data showed the world’s largest economy is still going strong.

While most Asian markets are likely to end the week by following Wall Street’s lead higher, in China concern is lingering over an economic slowdown that’s starting to look entrenched. There’s no signs of a pick-up in the struggling housing market, with data published Thursday showing the number of foreclosed properties for sale in China rose at a faster pace in January.

Equities were also buoyed by solid manufacturing, housing and labor-market data, with traders taking more hawkish Fedspeak in stride. Treasury 10-year yields were little changed at 4.32% Thursday. Trading in cash Treasuries will be closed in Asia Friday due to the Japanese holiday.

In commodities, oil steadied in Asia as investors weighed signs of a tightening market against persistent concerns around demand. Elsewhere, gold fluctuated after the US economic data and Fed minutes which indicated policymakers are content with leaving rates higher for longer if needed.

IndiGo airlines; gives outlook

INDIGO’s competitors turn aggressive on fleet addition.

Between September 2023 and January 2024, InterGlobe Aviation lost domestic market share from the peak of 63.4% to 60.2%, which mirrored the strong fleet addition by competitors at 26 narrow body aircraft (20 by Air India, three by Vistara and three by Akasa), versus 12 by INDIGO.

P&W engine issues to hit fleet near term Expect domestic-demand-supply to be mostly balanced in H1FY25, post which domestic market may witness oversupply in H2.Easing capacity constraints in key metros in FY26 to be the key to drive future demand. Despite near-term hiccups, long-term aviation story intact

Expect FY23-28E domestic passenger traffic CAGR at ~12-15%, driven by: government focus on improving air connectivity beyond tier 1 /2 cities, large order book of domestic carriers (1,606 outstanding order book as on December 2023) – ~350 net deliveries are expected in the next five years (~600 new deliveries less ~175 old fleet retirals) and higher capacity at existing key metro airports.

We retain Reduce, given the anticipated pause in market share growth and potential margin decline in H2FY25 with TP at INR 3,005 based on 8.0x FY26E EV/EBITDA. We expect a 19% passenger volume CAGR in FY23-26E.

BEL, Jio Financial Services, SML Isuzu stock for watching today.

Bharat Electronics Ltd (BEL) (CMP ₹196.30)

With almost 4% gains, the stock has decisively broken out its “multiple resistance” zone breakout at 192 levels on a closing basis, indicating positive bias. This breakout is accompanied by a huge volume, which signifies increased participation at the breakout. The stock is well placed and sustained above its 20, 50, and 100-day SMA, which reconfirms a strong uptrend. The stock has also registered an all-time high, which shows positive sentiments. This momentum is expected to extend towards 210–230 levels. The short-term support zone is around 188–185 levels, said Rajesh.

BEL has seen a long build in Thursday’s session with a price gain of 4% and an OI gain of 2.5%, indicating a long build. On the options front, 200 Call has the highest OI concentration, indicating a probable resistance zone, while significant writing at 195 Put Strike indicates strong support for the stock, explained Palviya.

Jio Financial Services Ltd (CMP ₹305.80)

In the weekly time frame, the stock has experienced a “multiple resistance” breakout in the range of 268–270 levels. Huge volumes at this rally signify increased participation. The weekly Bollinger band buy signal shows increased momentum. The stock is well placed above its 20, 50, and 100-day SMA, and these averages are inching up along with the price rise. Investors should buy, hold, and accumulate this stock with an expected upside of 330–365 with a downside support zone of 1290–280 levels, advised Rajesh.

SML Isuzu Ltd (CMP ₹1,818)

On the monthly time frame, the stock is surpassing its “multi-month” resistance zone of 1550–1600 levels, indicating bullish sentiments. This rally is accompanied by huge volumes, indicating a strong comeback of bulls. The stock is in a strong uptrend, forming a series of higher tops and bottoms across all the time frames, indicating bullish sentiments. Investors should buy, hold, and accumulate this stock with an expected upside of 1885–1950 and a downside support zone of 1640–1550 levels, said Palviya.

Atmastco share price lists with 18% premium at ₹91 apiece on the NSE SME

Sensex Today Live : Atmastco share price made a decent stock market debut on Friday with the stock listing at a premium of 18.18% on NSE SME platform.

Atmastco shares were listed at ₹91 apiece on the NSE Emerge, a premium of over 18% to the issue price of ₹77 per share.

Ahead of the listing, Atmastco IPO GMP today was ₹6 per share, which meant that Atmastco shares were trading at a premium of 7.79% to the issue price at ₹83 in the grey market today.

EPC contractor Atmastco Ltd launched its initial public offering (IPO) on February 15 to raise ₹56.25 crore from the primary market. The bidding for the Atmastco IPO ended on February 20 and the issue received strong investors’ participation as it was booked 17.61 times against its offer size. Atmastco IPO listing date was fixed on February 23 and the SME IPO allotment was done on February 22.

Atmastco raised ₹56.25 crore from the fixed price issue comprising a combination of fresh issue of 54.8 lakh equity shares aggregating to ₹42.20 crore and an offer for sale (OFS) of 18.26 lakh shares aggregating to ₹14.06 crore. Atmastco IPO price band was set at ₹77 per share and the IPO lot size was 1,600 shares.

Esconet Technologies share price lists with 245 % premium at ₹290 a piece on the NSE SME board

Sensex Today Live : Esconet Technologies share price saw a stellar debut, listing at ₹290 on the NSE SME, a 245% premium over the issue price.

Esconet Technologies IPO that opened for subscription on February 16 and closed on February 20 , had received a strong response from the investors. The Esconet Technologies IPO was subscribed 507.24 times. The public issue was subscribed 553.02 times in the retail category, 156.02 times in QIB, and 868.05 times in the NII category by February 20, 2024.

Esconet Technologies IPO GMP or grey market premium stood at ₹100 per share, as per investorgain.com . This indicates that Esconet Technologies shares was trading at a robust premium of 119.05% in the grey market as compared to its IPO price of ₹84 per share. The grey market premium also indicated the the street was expecting strong listing of share at ₹184 a piece.

Esconet Technologies is raising ₹28.22 crore from the IPO that is entirely a fresh issue of 33.6 lakh equity shares. The company proposes to utilise the fresh issue proceeds towards working capital requirements, investment in Wholly Owned Subsidiary, viz. Zeacloud Services Private Limited, to fund its capital expenditure expenses, and general corporate expenses.

Thaai Casting lists at ₹186, 141% premium to IPO price

Sensex Today Live : Thaai Casting share price made a strong debut on the bourses today, February 23, 2024, as the stock open at ₹185.90 apiece on NSE SME, a premium of 141.55% to the issue price of ₹77. The stock surged further to hit an intraday high of ₹195.15 apiece.

The ₹47.20 crore SME IPO was open for subscription between February 15 and February 20, with a price band in the range of 73–77 per share. The IPO comprises a fresh issue of equity shares worth 61.3 lakh shares.

The issue was overall subscribed to 345.85 times. The issue received a stellar response from retail investors whose portion set was subscribed to 467.94 times and a solid response from non-institutional buyers whose portion set was subscribed to 960 times. The qualified institutional buyers (QIBs) portion was subscribed to 76 times, according to data on Trendlyne.

The company plans to use the net proceeds from the issue for capital expenditure and general corporate purposes.

Prataap Snacks shares down nearly 3% after denying its in talks with ITC for a 47% stake sale

Sensex Today Live : Prataap Snacks on Thursday rejected media reports that ITC is planning to buy a 47% stake in the company. The Yellow Diamond parent firm issued a clarification in which it said that it is not in any negotiations with the FMCG giant for the stake sale.

“The company is not in negotiations as reported in the above-referred news article,” said the company in its BSE filing, while mentioning an article reporting a stock surge after reports of ITC stake sale talks.

Sensex Today Live : Vodafone Idea shares up nearly 8% on fundraise move

Sensex Today Live :  Vodafone Idea shares witnessed strong buying interest among the Indian stock market bulls. After the announcement of the board meeting on 27th February 2024 to discuss fundraising, Vodafone Idea shares attracted the attention of Dalal Street bulls in early morning deals and opened with an upside gap. The telecom stock went on to touch an intraday high of ₹17.65 apiece on NSE, logging an intraday gain of 8 percent against its previous close of ₹16.30 per share.

While climbing to its intraday high of ₹17.60 apiece on NSE during the early morning session, Vodafone Idea share price today came close to its existing 52-week high of ₹18.40 apiece that it had climbed in January this year.

According to stock market experts, Vodafone Idea share price today is on an uptrend due to the fundraising news. Avinash Gorakshkar, Head of Research at Profitmart Securities said about the rally in its stock price, “Vodafone Idea share price is rising today as the market has responded positively at the telecom company’s decision to go for the fundraising. The company has a fixed board meeting on 27th February and hence bulls’ are reacting to this positive development in the company.