Benchmark equity indices settled in red on Monday due to profit booking in metal and banking stocks amid mixed trends in global markets. The BSE Sensex settled 523 points or 0.73 per cent lower at 71,072.49. The NSE Nifty also closed 166.45 points or 0.76 per cent lower at 21,616.05. Except for IT & Pharma, all sectors ended in red. PSUs witnessed a heavy profit booking after a sharp rally over the last few months and weak Q3 results posted by many.
According to official data released on Monday, retail inflation eased to a three-month low of 5.1 per cent in January mainly on account of lower food prices. Inflation based on Consumer Price Index (CPI) was at 5.69 per cent in December 2023 and 6.52 per cent in January 2023.
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"An uptick in exchange margin requirements caused a decrease in positions, primarily in mid and small caps. Aside from the pharma and IT sectors, selling was widespread, with notable struggles seen in PSU banks. The premium valuation gap between mid to large caps has notched to its all-time high. Despite a robust economic forecast, corporate earnings are expected to slow due to moderated operating margins. It is going to be a challenge for the broad market to sustain the premium valuation. Large caps are predicted to excel amid consolidation," Vinod Nair, Head of Research, Geojit Financial Services.
Here are the key stocks to watch on 13 February:
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Coal India
The state-owned company reported a 17.8 per cent year-on-year (YoY) growth in net profit at Rs 9,093.7 crore for the December quarter, compared to Rs 7,719 crore in the year-ago period. The company’s revenue from operations increased 2.8 per cent to Rs 36,154 crore against Rs 35,169 crore in the corresponding quarter of the previous fiscal.
SAIL
The public-sector steel maker reported a 22 per cent decline in its consolidated net profit to Rs 422.9 crore for the quarter that ended December 2023, owing to lower income. The PSU had posted a net profit of Rs 542.18 crore during the third quarter of FY23. The company’s revenue slipped to Rs 23,348 crore in the December quarter compared to Rs 25,042.1 crore in the year-ago period.
JSW Energy
JSW Neo Energy, a wholly owned subsidiary, has received a letter of award for a wind capacity of 500 MW from the Solar Energy Corporation of India (SECI). According to the construction of the bid, a 700 MW greenshoe option is available over the awarded capacity. This could further increase the company’s total awarded capacity by 525 MW to a maximum of 1,025 MW.
GSK Pharmaceuticals
The biopharma company reported a consolidated net profit of Rs 45.72 crore for the October to December period of FY24, falling sharply by 72.2 per cent over the corresponding period of the previous financial year exceptional losses and a lower operating margin. Revenue from operations grew by 0.4 per cent YoY to Rs 805.26 crore for the quarter.
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Dilip Buildcon
The infrastructure company reported a 3.2 per cent YoY fall in net profit to Rs 107.4 crore for the December quarter, compared to Rs 111 crore in the year-ago period. The company’s revenue from operations increased 23.9 per cent to 2,876.8 crore against Rs 2,322.4 crore in the corresponding period of the previous year.
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