SENSEX ADDS 403 PTS; METAL STOCKS LOSE SHEEN

The domestic equity indices continued to trade with decent gains in mid-morning trade. The Nifty traded above the 21,700 level. Metal shares declined for the fourth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, rose 402.93 points or 0.57% to 71,475.42. The Nifty 50 index added 103.60 points or 0.48% to 21,719.65.

In the broader market, the S&P BSE Mid-Cap index advanced 0.28% and the S&P BSE Small-Cap index slipped 0.39%.

The market breadth was negative. On the BSE, 1,596 shares rose and 2,076 shares fell. A total of 126 shares were unchanged.

Economy:

India`s retail inflation, based on Consumer Price Index Numbers, eased to a three-month low of 5.10% in January 2024 against 5.69% during the previous month, the latest data released by the Ministry of Statistics & Programme Implementation showed on Monday. India`s factory output, meanwhile, grew 3.8% in December 2023, the data showed. The IIP in November 2023 stood at 2.4%, while during the year-ago period, the factory output stood at 5.1%.

IPO Update:

The initial public offer (IPO) of Entero Healthcare Solutions received bids for 52,54,249 shares as against 71,50,100 shares on offer, according to stock exchange data at 11:27 IST on Tuesday (13 February 2024). The issue was subscribed 0.73 times.

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 Vibhor Steel Tubes received bids for 1,93,16,286 shares as against 35,92,445 shares on offer, according to stock exchange data at 11:27 IST on Tuesday (13 February 2024). The issue was subscribed 5.38 times.

The issue opened for bidding on Tuesday (13 February 2024) and it will close on Thursday (15 February 2024). The price band of the IPO is fixed at Rs 141-151 per share. An investor can bid for a minimum of 99 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Metal index slipped 2.60% to 7,696.25. The index tumbled 7.01% in four trading sessions.

Hindalco Industries (down 12.77%), Jindal Stainless (down 3.63%), Steel Authority of India (down 2.28%), APL Apollo Tubes (down 1.73%), Jindal Steel & Power (down 1%), Adani Enterprises (down 0.5%), JSW Steel (down 0.49%), NMDC (down 0.28%) and National Aluminium Company (down 0.1%) edged lower.

Hindalco Industries tumbled 12.77% after concerns arose over cost overruns in Novelis Inc`s Bay Minette project. The company`s wholly owned subsidiary, Novelis said that its net income attributable to common shareholder significantly improved to $121 million in Q3 FY24 as compared with $12 million in Q3 FY23, due primarily to higher Adjusted EBITDA.

Adjusted EBITDA increased 33% versus the prior year to $454 million in the third quarter of fiscal year 2024. This significant improvement was primarily driven by favorable metal benefit from recycling, higher pricing, and lower operating costs than the prior year, which was heavily impacted by high inflation and geopolitical instability.

Stocks in Spotlight:

Rail Vikas Nigam (RVNL) surged 9.57% after the company said that it has emerged as the lowest bidder (L1) for a project worth Rs 106.37 crore floated by the Madhya Pradesh Paschim Kshetra Vidyut Vitran Company.

Glaxosmithkline Pharmaceuticals slipped 7.12% after the company reported 72.22% decline in consolidated net profit of Rs 45.72 crore in Q3 FY24 as against net profit of Rs 164.56 crore posted in Q3 FY23. Revenue from operations rose marginally to Rs 805.26 crore in the quarter ended 31 December 2023 from Rs 802.30 crore posted in corresponding quarter last year.

Global Markets:

Asia-Pacific markets traded mixed on Tuesday ahead of a key U.S. inflation report that could help shape the Federal Reserve`s rates outlook and determine the timing of interest rate cuts. Markets are closed in China, Hong Kong, Taiwan and Vietnam for Lunar New Year holidays.

U.S. indices ended on a mixed note on Monday after hitting new highs ahead of data expected to underscore further disinflation, paving the way for the Federal Reserve to start cutting interest rates this year.

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