Tata group market cap crosses Rs 30 lakh crore: Daily Market Update - 7 Feb 2024 | Globe Capital Market LTD.
07-Feb-2024
Tata group market cap crosses Rs 30 lakh crore: Daily Market Update – 7 Feb 2024

The Tata Group companies' combined market capitalisation crossed the milestone of Rs 30 lakh crore as technology stocks rallied on Tuesday. This makes it the first conglomerate to touch this landmark. The market cap of the conglomerate touched a high of Rs 30.52 lakh crore intraday and later closed at Rs 30.38 lakh crore. Tata Consultancy Services Ltd has about half of the group's market cap with Rs 15.13 lakh crore, followed by Titan Co. and Tata Motors Ltd. Shares of TCS hit a lifetime high on Tuesday, rising as much as 4.4% before paring gains to close 4.09% higher at Rs 4,136 per share on the NSE. The market cap of TCS also crossed Rs 15 lakh crore for the first time.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to positive note.
  • European equity markets ended higher in range 0.5% to 1%.
  • Asian markets are trading higher.
  • GIFT Nifty is up by 150 points, Nifty futures are likely to open around 22100 levels (as on 8:30AM).

 

News highlights from across the globe

  • Most of the Asian markets are trading higher in early trade on Wednesday, taking cues from overnight gains on Wall Street.
  • The U.S. bond market bounced back after a two-day rout, with investors awaiting a slew of Federal Reserve speakers for clues on whether the latest economic reports will impact their rate outlook.
  • Brent crude was trading 0.77% higher at $78.59 a barrel.

 

Important news updates from the domestic front

  • Britannia Industries Q3 FY24 (Consolidated, YoY) – Revenue up 1.4% to Rs 4,256.3 crore vs Rs 4196.8 crore.  Ebitda up 0.4% to Rs 821.09 crore vs Rs 817.58 crore. Margin at 19.3% vs 19.5%. Net profit down 40.4% to Rs 555.6 crore vs Rs 932.4 crore.
  • Berger Paints Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 6.98% at Rs 2,881.83 crore vs Rs 2,693.59 crore. Ebitda up 37.29% at Rs 480.04 crore vs Rs 349.65 crore. Margin up 367 bps at 16.65% vs 12.98%. Net profit up 49.2% at Rs 300.16 crore vs Rs 201.17 crore.
  • UPL: Moody’s Investors Service downgraded the company’s senior unsecured rating to ‘Ba1’ from ‘Baa3’ on deterioration in the agrochemical industry fundamentals.
  • JB Chemicals & Pharmaceuticals appointed Narayan Saraf as chief financial officer effective Feb. 23.
  • Biocon received USFDA tentative approval for Dasatinib tablets, which are used in the treatment of the Philadelphia chromosome.
  • Lupin received USFDA approval from ANDA for bromfenac ophthalmic solution, which is a generic of bromsite.
  • Power Finance Corp incorporated Bhadla-III and Bikaner-III transmission as a wholly owned subsidiary for the development of transmission system strengthening for interconnections of the Bhadla III and Bikaner-II complexes.
  • Karnataka Bank received an RBI nod for exercising the call option on bonds.
  • Mahindra Life received a Rs 2.3 crore penalty for non-adherence to forest norms.

 

Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side, kept the bullish momentum rolling till the end, and settled above 21900 levels after adding over 150 points to its previous closing values.

Midcap index outperformed the benchmark as it was up over 1% while Small cap index traded in line with the benchmark, rose 0.79%.

Majority of sectoral indices, tracked at NSE, settled higher. Amongst them, Nifty IT and Oil & Gas index was at the top of the tally up, 2.92% and 2.67% respectively followed by Nifty Auto, Metal and Pharma index that settled higher in range 1% to 1.5%. On the other hand, Nifty Pvt Bank led the decline, fell nearly 0.5%.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we expect it to trade with sideways to positive bias and suggest traders to maintain buy on dips trading approach till it is trading above 21600 levels on closing basis.

 

Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by 2.8%, whereas short covering was seen in Finnifty futures with decrease in open interest by 10.4%. In Banknifty futures, there was no change on price front while open interest increases by 7.4%

On the sectoral front, long buildup was observed in Oil & Gas, Power and Textile stocks, whereas short covering was seen in Infrastructure and Telecom stocks.

On the options front, put writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 21700 PE and 22500 CE.

 

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 93 Cr in the cash segment, sold stocks futures worth Rs 1892 Cr and bought index future worth Rs 568 Cr. DIIs were net buyer in the cash segment to the tune of Rs 1096 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22080-22200; Supports 21800-21700

Banknifty – Resistances 46300-46550; Supports 45700-45400

Finnifty – Resistances 20550-20640; Supports 20340-20210

 

F&O Securities in Ban Today  – ASHOKLEY, HINDCOPPER, INDIACEM, INDUSTOWER, NATIOANALUM, UPL, ZEEL.

 

Important Results Today –APOLLOTYRE, CUMMINSIND, FORTIS, GICRE, JKPAPER, MANAPPURAM, NESTLEIND, SOBHA.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.