Benchmarks climb as banks jump, Nifty reclaims 21,750; VIX dips below 16

The domestic stock market settled with marginal gains on Friday, reflecting a cautious approach among investors awaiting further market triggers. The Nifty 50 navigated above the 21,750 mark after fluctuating between gains and losses during the day. While banks stocks bounced, metals and oil & gas stocks saw selling pressure. However, mid- and small-cap shares tumbled, illustrating concerns about their elevated valuations. The market`s cautious sentiment is particularly notable in anticipation of upcoming releases of inflation data from the US, UK, and India. Additionally, the gradual rise of the US 10-year yield has contributed to a lack of confidence in the market. This uncertainty is linked to worries about potential delays in rate cuts by the US Federal Reserve.

The S&P BSE Sensex advanced 167.06 points or 0.23% to 71,595.49. The Nifty 50 index rose 64.55 points or 0.30% to 21,782.50.

In the broader market, the S&P BSE Mid-Cap index shed 0.82% and the S&P BSE Small-Cap index dropped 1.36%.

The market breadth was weak. On the BSE, 1,270 shares rose and 2,573 shares fell. A total of 89 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, shed 2.40% to 15.45.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.45% to 7.114 as compared with previous close 7.082.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0400, compared with its close of 82.9600 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement shed 0.02% to Rs 62,430.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.06% to 104.23.

The United States 10-year bond yield rose 0.05% to 4.174.

In the commodities market, Brent crude for March 2024 settlement shed 4 cents or 0.05% to $81.59 a barrel.

Global Markets:

Most shares in Europe and Asia advanced on Friday.

Japan�s Nikkei hit fresh 34-year highs on Friday, while most Asia-Pacific markets were either fully or partially closed for Lunar New Year holidays.

U.S. stocks ticked higher Thursday to set more records as further evidence piled up to show the job market remains remarkably solid. During the day, the S&P 500 briefly topped the 5,000 level for the first time.

Stocks in Spotlight:

Life Insurance Corporation of India (LIC) declined 2.3%.The company`s standalone net profit surged 49.1% to Rs 9,444.41 crore in Q3 FY24 as against Rs 6,334.19 crore recorded in Q3 FY23. Total premium income stood at Rs 1,17,016.92 crore in Q3 FY24, up 4.67% from Rs 1,11,787.60 crore posted in Q3 FY23.

Grasim Industries jumped 5.36% after the Aditya Birla Group company�s consolidated net profit declined 39.8% to Rs 1,514.44 crore in Q3 FY24 as against Rs 2,515.78 crore Q3 FY23. However, revenue from operations rose 11.62% year on year (YoY) to Rs 31,965.48 crore in the quarter ended 31 December 2023.

Biocon declined 3.81%. The company reported consolidated net profit of Rs 660 crore in Q3 FY24 as against net loss of Rs 42 crore recorded in Q3 FY23. Revenue from operations increased by 34% to Rs 4519 crore in Q3 FY24 from Rs 3020 crore in Q3 FY 23.

Globus Spirits rose 8.58% after the company`s net profit surged 64.8% to Rs 44.4 crore on 16.1% increase in net sales to Rs 687.5 crore in Q3 December 2023 over Q3 December 2022. The company transitioned its income tax to a new regime, resulting in a decreased tax rate of 25.11% from the previous rate of 34.94%. This change led to a reversal of deferred tax liability of Rs 30.03 crore due to the re-measurement of deferred tax assets/liabilities from previous periods.

Gujarat Mineral Development Corporation (GMDC) dropped 10.37% after the company�s standalone net profit declined 55.61% to Rs 117.47 crore as on Q3 FY24 as compared to Rs 265.10 crore recorded in Q3 FY23. Revenue from operations fell 34.03% to Rs 564.27 crore in Q3 FY24 as against Rs 855.41 crore recorded in corresponding quarter last year.

Patanjali Foods slipped 3.65% after the FMCG company�s standalone net profit fell 19.56% to Rs 216.54 crore in Q3 FY24 as compared with Rs 269.19 crore posted in Q3 FY23. Revenue from operations declined marginally to Rs 7,910.70 crore in the third quarter of FY24 as against 7,926.64 crore posted in Q3 FY23.

AstraZeneca Pharma India dropped 13.04% after the company`s consolidated net profit tumbled 46.08% to Rs 15.80 crore in Q3 FY24 as compared with Rs 29.30 crore in Q3 FY23. Revenue from operations jumped 22.41% to Rs 305.78 crore during the quarter as compared with Rs 249.81 crore posted in corresponding quarter last year..

Zydus Lifesciences rose 0.5%. The company reported 26.76% jump in consolidated net profit to Rs 789.6 crore in Q3 FY24 as compared with Rs 622.9 crore in Q3 FY23. Revenue from operations increased 5.83% to Rs 4,505.2 crore during the quarter as compared with Rs 4,257.1 crore posted in corresponding quarter last year.

Zydus Lifesciences` board has sanctioned a share buyback of up to Rs 600 crore at Rs 1,005 per equity share through the tender offer route, on a proportionate basis. This buyback will cover up to 59.70 lakh equity shares, equivalent to 0.59% of the total paid-up equity shares of the company. The record date for the buyback has been set as 23rd February.

Orchid Pharma zoomed 15.61% after the company reported consolidated profit of Rs 29.43 crore in Q3 FY24, steeply higher than Rs 7.59 crore in Q3 FY23. Revenue from operations increased 38.08% YoY to Rs 220.59 crore in Q3 FY24 from Rs 159.76 crore reported in Q3 FY23.

IPO Update:

The initial public offer (IPO) of Entero Healthcare Solutions received bids for 6,89,678 shares as against 71,50,100 shares on offer, according to stock exchange data at 17:00 IST on Friday (9 February 2024). The issue was subscribed 10%.

The issue opened for bidding on Friday (9 February 2024) and it will close on Tuesday (13 February 2024). The price band of the IPO is fixed at Rs 1,195-1,258 per share. An investor can bid for a minimum of 10 equity shares and in multiples thereof.

The IPO of Capital Small Finance Bank received bids for 3,26,04,736 shares as against 81,47,373 shares on offer, according to stock exchange data at 17:00 IST on Friday (9 February 2024). The issue was subscribed 4 times.

The issue opened for bidding on Wednesday (7 February 2024) and it will close on Friday (9 February 2024). The price band of the IPO is fixed at Rs 445-468 per share. An investor can bid for a minimum of 32 equity shares and in multiples thereof.

The IPO of Jana Small Finance Bank received bids for 18,71,99,892 shares as against 1,01,16,284 shares on offer, according to stock exchange data at 17:00 IST on Friday (9 February 2024). The issue was subscribed 18.50 times.

The issue opened for bidding on Wednesday (7 February 2024) and it will close on Friday (9 February 2024). The price band of the IPO is fixed at Rs 393-414 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.

The IPO of Rashi Peripherals received bids for 85,01,61,840 shares as against 1,42,37,289 shares on offer, according to stock exchange data at 17:00 IST on Friday (9 February 2024). The issue was subscribed 59.71 times.

The issue opened for bidding on Wednesday (7 February 2024) and it will close on Friday (9 February 2024). The price band of the IPO is fixed at Rs 295-311 per share. An investor can bid for a minimum of 48 equity shares and in multiples thereof.

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