India Watch Daily

Continued new highs with more to come

<p>The week was erratic, turbulent, and packed with events, and it continued into Saturday. Due to the leap day on February 29, which coincided with expiry, markets were trading negatively during the whole week. The pivotal day was Friday, after which the markets entered a new orbit.</p>
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<p>On Saturday, the exchange’s catastrophe recovery site underwent testing, which contributed to the benchmark indexes’ continued rise in stature. Markets ended up rising on four of the six trading sessions and falling on two. The Nifty gained 165.70 points, or 0.75 percent, to settle at 22,378.40 points, while the BSE Sensex gained 663.35 points, or 0.91 percent, to close at 73,806.15 points.</p>
<p>The BSE 100, BSE 200, and BSE 500 experienced gains of 0.67 percent, 0.64 percent, and 0.53 percent, respectively, on the larger markets. BSE Smallcap had a 0.39 percent decrease, while BSE Midcap saw a 0.07 percent increase.</p>
<p>The BSE Sensex, which had been behind Nifty in setting new records, succeeded in doing so on Friday, reaching a new high of 73,819.21 points. On Saturday, it once again went above this threshold and reached a new high of 73,994.70 points.</p>
<p>The Nifty reached all-time highs on Friday and Saturday, with the new intraday high reaching 22,419.55 points. Notably, Friday’s gains were a whopping 1,245 points on the BSE Sensex and 356 points on the Nifty.</p>
<p>When compared to the BSE Sensex and somewhat more than the Nifty, the weekly gains were almost twice as high. demonstrates exactly what might happen to the markets on the first day of a new series and when news breaks that the GDP grew more than anticipated in the third quarter.</p>
<p>The Indian Rupee closed at Rs 82.90 to the US dollar, up 4 paisa, or 0.05 percent. The week for the Dow Jones was mostly uneventful and range-bound. It won two and lost three of the sessions. It closed at 39,087.38 points at the conclusion of the week, down 44.15 points or 0.11 percent.</p>
<p>In financial news, FPIs sold shares for more over Rs 25,000 crore in January, while in February they purchased shares valued at Rs 5,107 crore. Additionally, the GDP during the third quarter of FY23–24 was an astounding 8.4%. This was most likely the cause of the Friday market explosion, since it seemed to enter a new orbit.</p>
<p>The last week of the series saw a weaker than average expiration for February futures. The series closed at 21,987.38 points, up 630.20 points, or 2.95 percent, from where it started.</p>
<p>The previous week saw a lot of activity in the main markets. Two listings, three IPOs that opened and closed for subscription, and three more businesses that had roadshows and announced that they will open for subscription the following week were all happening this week.</p>
<p>On Tuesday, February 27, Juniper Hotels Limited became the first firm to list on the stock exchange. The business offered shares at a price of Rs. 360, and the offering did not meet with much success. At the upper circuit, the share ended 10% higher at Rs 397.30 after opening at Rs 361.20. The share had made significant progress by the end of the week, finishing at Rs 484.85, up Rs 124.85 or 34.68 percent.</p>
<p>GPT Healthcare Limited, which had issued shares for Rs 186, was the second share to list. On Thursday, February 28, the share had its market debut. The share finished day one at Rs 200.75, a gain of Rs 14.75 or 7.93 per cent, from the discovery price of Rs 216.15. The share lost momentum during the course of the next two days, closing at Rs 191.75, up Rs 5.75, or 3.09 percent.</p>
<p>Platinum Industries Limited was the first issue to open and close for subscription. It had entered the market with its issuance for Rs 235.32 crore, priced between Rs 162-171. With the QIB component subscribed 151 times, the HNI portion 141.69 times, and the retail portion 50.45 times, the issue was oversubscribed overall 98.73 times. In all, 32.85 lakh applications were received.</p>
<p>The second offering was Exicom Tele-systems Limited, which had tapped the market with an offer to sell 70.42 lakh shares at a price range of Rs 135-142 and a new issue for Rs 329 crore. There were 129.19 subscriptions to the issue. A total of 121.80 subscriptions were made to the QIB section, 153.04 to the HNI portion, and 117.83 to the retail portion. In all, 36.79 lakh applications were received.</p>
<p>Bharat Highways Invit was the source of the third problem. The range of prices was Rs 98–100. Fifteen percent of the Rs 2,500 crore offering amount went to the sponsor. The QIB component of the issue was subscribed 9.1 times, while the non-QIB portion was subscribed 7.07 times, for an aggregate total of 8.18 times. In all, 2.17 lakh applications were received.</p>
<p>There are three IPOs debuting this next week. The first comes from R.K. Swamy Limited, which is trying to get attention from the market by putting up a new offering for Rs 173 crore and offering to sell 87 lakh shares for Rs 270–288. The publication date of the issue is Monday, March 4, and it ends on Wednesday, March 6. The firm runs a full-service advertising agency and verticals for market research in addition to integrated marketing communications.</p>
<p>The business has existed for more than 50 years. For the fiscal year that concluded on March 23, it declared gross sales of Rs 780 crore and net revenues of Rs 300 crore. Its PAT margin was 10.42%, while its EBITDA margin was 20.97%. The company’s business is cyclical; generally speaking, the first half of the year accounts for 40% of sales, while the second half accounts for 60%. The company’s profitability is even more uneven; in my estimation, it makes around 25% of its earnings in the first half and 75% in the second.</p>
<p>For the fiscal year that concluded on March 23, the firm reported an earnings per share (EPS) of Rs. 7.03. The PE multiple for this EPS is 38.41-40.96. The business has a specialty and is among the top players in the advertising industry, successfully competing with MNCs. It has the advantage thanks to the market research. Investing in the firm may provide medium- to long-term benefits, and there’s always a chance of a listing boom.</p>
<p>JG Chemicals Limited has entered the market with the second stake. The publication date of the issue would be Tuesday, March 5, and it would end on Thursday, March 7. The range of prices is Rs 210–221. The business is the nation’s biggest manufacturer of zinc oxide. Its goods are utilized in the rubber and tire industries, and J.G. Chemicals is a major supplier to tire producers both domestically and abroad. The firm operates factories in Andhra Pradesh’s Naidupeta and Kolkata.</p>
<p>Revenues for the year ending March 23 were reported by the firm to be Rs 795 crore. With an EPS of Rs. 17.32, the issue’s PE is calculated to be between 12.12 and 12.76. Although several participants in the category are identified, their size pales in comparison to the corporation. The business extends gratitude to investors with a medium-term investment horizon, as it has expanded its product line to include medicinal and agricultural items.</p>
<p>Gopal Snacks Limited is the third firm to offer its shares for sale on the capital markets. The publication period for this issue is Wednesday, March 6, through Monday, March 11. The issue’s price range is Rs 381-401. The business produces and sells western snacks, gathiya, and ethnic Indian snacks. The firm is based in Rajkot and operates one plant in Nagpur, two plants in Rajkot and the vicinity of Ahmedabad.</p>
<p>For the fiscal year that concluded on March 23, the firm had sales of Rs 1,394 crore, an EBITDA margin of 14.07 percent, and a PAT margin of 8.06 percent. There was a profit of Rs 112 crore after taxes. As of March 23, the EPS was Rs 9.03, and the PE multiple was 42.24–44.46. The business does well when compared to its listed competitors, such as Pratap Snacks and Bikaji Foods.</p>
<p>Gujarat is the biggest state in terms of sales for the corporation, which is present in eleven states and two Union Territories. As of right now, it has 617 distributors, and it wants to grow. items with an MRP of Rs 5 have a 75% sales distribution, while items with an MRP of Rs 10 have an 8.23% sales distribution. This offers the business an advantage since a large percentage of customers purchase their goods on a regular basis.</p>
<p>A reasonable snack of sanitary food that is correctly packaged and supplied in a safe and hygienic manner is guaranteed for customers at a price point of Rs 5. In the short and medium term, the share provides appreciation and may boost the listing price for the flippers.</p>
<p>There will be a trade holiday on Friday, March 8, in the next week’s markets. This would cut the week down to four trading sessions and guarantee that on Thursday, before the trade holiday, there would be profit-taking and lightening of holdings regardless of the results of the trading sessions.</p>
<p>The markets have the impetus to expand on the bounce they received on Friday. Anticipate that the markets will keep rising, aiming for the 35 spillover points from the highs in January. About 22,750 on the Nifty and 75,600 on the BSE Sensex would be the targets. These levels serve as benchmarks that the indexes must meet. Support levels for the markets are seen at Nifty’s 21,900 and BSE Sensex’s 72,100. This turns into the markets’ operational range.</p>
<p>This week’s plan would be to keep an eye on large-cap companies while booking profits in the small- and mid-cap sectors. Reliance Industries and HDFC Bank are the preferred big guys, so there is some index manipulation going on.</p>
<p>These equities are brought up to provide the impression that all is okay whenever the markets seem sluggish. Even if there are constant whispers of a correction, the market needs news flow to correct, the atmosphere is upbeat, and momentum favors the bulls. Ride the rally till then.</p>

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