Stock Market Today: Nifty, Sensex Fall For A Second Day As Infosys, Asian Paints Drag

The market breadth was skewed in favour of the sellers. About 2,262 stocks declined, 1,717 gained, and 129 remained unchanged on the BSE.

• Media reports alleging co's involvement in tax evasion are factually incorrect

• Fully co-operated with the I-T dept during survey proceedings in Sept 2023

• Certain queries received from I-T department have been addressed

• Not aware of any information that could have an impact on company's equity shares

Source: Exchange filing

The scrip rose as much as 3.39% to Rs 291.5 apiece, its highest level. It pared gains to trade 2.5% higher at Rs 289.05 apiece, as of 2:12 a.m. This compares to a 0.23% decline in the NSE Nifty 50 Index.

It has risen 73.53% in the last twelve months. Total traded volume so far in the day stood at 0.97% times its 30-day average. The relative strength index was at 66.73.

Out of 21 analysts tracking the company, 11 maintain a 'buy' rating, three recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data.

Signs tripartite MoU with National Center for Seismology and Centre for Earth Sciences and Himalayan Studies

Source: Exchange Filing

• The deployment will be across its 12 circles within a record time of over 500 days.

• MIMO stands for Multiple-Input Multiple-Output

Source: Exchange Filing

Asian Paints: A Bull Vs Bear Case

• Target price lowered from Rs 3,017 to Rs 2,425

• Birla opus promising an incremental 40% addition to industry capacity

• Industry to see significant increase in competition to retain dealers and consumers

• Near term growth & margins not immune to competition pressure

• Assumes APNT sees some slowdown in growth but no significant share loss to Birla Opus

• May maintain long term market position

• ROE to fall to 26.9% in FY26 from 32.7% in FY24

• Yasho Industries at 9.33 times its 30 day average

• Greenply Industries at 8.94 times its 30 day average

• Indo Count Industries at 7.11 times its 30 day average

• Adani Wilmar at 3.83 times its 30 day average

• Suprajit Engineering at 3.47 times its 30 day average

• Approves allotment of up to 88.9 lakh shares worth Rs 200 crore

• Shares to be allotted at Rs 225 apiece on a private placement basis

Source: Exchange filing

In pact with Looks Salon to offer exclusive beauty and grooming services

Source: Exchange Filing

Varenicline is indicated for smoking cessation in adults.

Source: Exchange Filing

To supply 300 MW solar power capacity to J&K Power Corp from company's Bikaner plant.

Source: Exchange filing

• Jan spends up 30% YoY, Feb spends down 2% on e-com sales normalisation

• Expect to see market share shift towards smaller players

• Believes top 5 players more cautious on new card sourcing

• Maintains Neutral rating on SBI Cards

• Key Gainers credit cards spends market share: ICICI Bank, SBI Cards, small players

• Key Losers credit cards spends market share: HDFC Bank, Indusind Bank

• Key Gainers cards outstanding market share: Kotak, Yes Bank, small players

• Key Losers cards outstanding market share: SBI Cards, HDFC Bank

• Gets order in the range of Rs 1,000-2,500 crore for its railway business

• Order to construct phase 2A of Jakarta's Mass Rapid Transport Project

• Contract secured through its Japanese partner, Sojitz Corp

Source: Exchange filing

Skipper's stock rose as much as 13.37% during the day to hit a record high of Rs 401 apiece on the NSE. It was trading 6.9% higher at Rs 378.1 apiece, compared to a 0.15% decline in the benchmark Nifty 50 as of 9:25 a.m.

It has risen 287.2% in the last 12 months. The total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 74.9.

Paytm's stock rose as much as 4.99% during the day to hit an upper circuit of Rs 428.1 apiece on the NSE. The shares were locked in the upper circuit when compared to a 0.32% decline in the benchmark Nifty 50 as of 09:55 a.m.

It has fallen 32.59% in the last 12 months. The total traded volume so far in the day stood at 2.1 times its 30-day average.

Six out of the 14 analysts tracking Paytm have a 'buy' rating on the stock, as many as three recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 61.4%.

At pre-open, the NSE Nifty 50 was 43.50 points or 0.2% lower at 22,169.20, and the S&P BSE Sensex was 0.18% or 97.99 points lower at 73,044.81.

• The yield on the 10-year bond opened 3 bps lower at 7.05%.

• It closed at 7.08% on Friday.

Source: Bloomberg

• The local currency strengthened by 6 paise to open at 82.89 against the U.S. Dollar.

• It closed at 82.95 on Friday.

Source: Bloomberg

Gensol Engineering gets orders worth Rs 337.7 crore.

Source: Exchange filing

• Move by RBI is a positive development, closely watch NPCI's response

• Monitor updated commercials as PPBL's business moves to other banks

• Potential impact to Paytm's businesses during Feb-24 amid the turmoil

• Approval from NPCI to ensure quick migration of customers, limited disruption

• Picks SBI and Union Bank as top picks

• Maintain 'Buy' rating on SBI, Bank of Baroda, Indian Bank, Union Bank, Canara Bank

• Neutral on Punjab National Bank

• Stock valuations reasonable given business growth and profitability

• Estimate 21% aggregate earnings CAGR of PSB coverage over FY24-26

• Expect NIMs to be range-bound with slight downward bias

• Expect 1.2% sector RoA by FY26 on opex ratio improvement, scope for credit cost reduction

• NNPA ratio to be similar to private banks by FY24 end

Macquarie Maintains Asian Paints As Preferred Pick in India Paints & Adhesives

• Maintains 'Overperform' on Asian Paints at Rs 4,000 target

• Expects Asian Paints to be less affected by a new entrant like Grasim

• Sharp demand moderation remains downside risk to near-term sales growth

• Rise in discounting intensity near term given Grasim's entry to have negative impact to EPS estimates

• Zurich Insurance to buy 70% stake in Kotak GI

• Kotak GI is a small premium market share with a 120 crore loss in FY23

• Valuation of the business is unchanged at 7900 crore

• SOTP valuation of 5400 crore, implies 1% upside due to small size

• Recent performance related concerns are transient

• Domestic inflows to start ramping up after elections

• Addressable market in Saudi Arabia continuously growing

• Expect 13.6%/13.7% CAGR in inflows/revenue over next decade

• Expect 18%/23%/26% CAGR in revenue/EBITDA/PAT over FY23-26 for core EPC division

• Expect infrastructure and hydrocarbon segments to remain key growth drivers

Gets assessment order Rs 261.9 crore from Income Tax Dept for 2021-22

Source: Exchange filing

• Price Target of Rs 970

• Believe share price to rise relative to country index over next 60 days (70-80% likelihood)

• Short term valuation much more compelling on stock trading off recently

• Underperformed benchmarks YTD (-10% vs Sensex: +1% and Banex: -2%)

• Loan growth set to pick up; Asset quality to continue to benefit from recoveries

• NIM to benefit from recent credit rating upgrade and capital raise

• Confident about ability to become no.2 player; plan to be pan-India by FY25 end

• First company to launch paints at this scale

• Developed differentiated products vs. competition and have a clear dealer pull plan in place

• Expect aggressive pricing and promotion, likely to become Ebitda profitable in FY28

• Capacity will be higher than the combined capacity of the second, third and fourth players

• Plan to add 500 MLPA in capacity in next phase, lower incremental capex cost