Markets: Shares to witness new highs, some more to follow

It was a wild, risky and eventful week which obtained prolonged into Saturday as nicely. Expiry occurred on February 29, which was a leap day and until that occasion was over, markets had been buying and selling in destructive territory for the week. Friday was the turning level and markets went right into a new orbit once more.

Testing for the catastrophe restoration website of the change occurred on Saturday and that led to the benchmark indices including some more factors to their ever-growing stature. At the tip of all of it, markets gained on 4 of the six buying and selling classes and misplaced on two.

BSE Sensex was up 663.35 factors or 0.91 per cent to shut at 73,806.15 factors whereas Nifty gained 165.70 factors or 0.75 per cent to shut at 22,378.40 factors.

The broader markets noticed BSE 100, BSE 200 and BSE 500 achieve 0.67 per cent, 0.64 per cent and 0.53 per cent respectively. BSE Midcap gained 0.07 per cent whereas BSE Smallcap was down 0.39 per cent.

BSE Sensex, which was lagging Nifty by way of making a new excessive, did so on Friday and made a new excessive at 73,819.21 factors. It once more crossed this stage on Saturday and made a new excessive at 73,994.70 factors.

Nifty climbed to new highs on Friday and Saturday and the new lifetime intraday excessive now stands at 22,419.55 factors. Incidentally the beneficial properties of Friday had been an enormous 1,245 factors on BSE Sensex and at 356 factors on Nifty.

In relation to the weekly beneficial properties this was virtually double in comparison to BSE Sensex and a bit of more than double by way of Nifty. Clearly exhibits what the primary day of a new sequence and information of the GDP within the third quarter rising larger than expectations can do to the markets.

The Indian Rupee gained 4 paisa or 0.05 per cent to shut at Rs 82.90 to the US Dollar. Dow Jones had a reasonably quiet and vary sure week. It gained on two of the classes and misplaced on three. At the tip of the week, it was down 44.15 factors or 0.11 per cent to shut at 39,087.38 factors.

In financial information, FPIs purchased shares value Rs 5,107 crore in February after being web sellers of over Rs 25,000 crore in January. Further, GDP numbers for Q3 of FY23-24 got here at a formidable 8.4 per cent. This was most likely the explanation why markets catapulted on Friday and nearly went right into a new orbit.

February futures expired on a weakish notice within the final week of the sequence. The sequence ended with beneficial properties of 630.20 factors or 2.95 per cent to shut at 21,987.38 factors.

There was loads of exercise within the major markets within the week passed by. The week noticed two listings, three IPOs open and shut for subscription and one other three firms had their roadshows and can be opening their points for subscription within the coming week.

The first firm to record was Juniper Hotels Limited which listed its shares on Tuesday, February 27. The firm had issued shares at Rs 360 and the difficulty was not very nicely obtained. The share opened at Rs 361.20 and closed 10 per cent larger at higher circuit at Rs 397.30. At the tip of the week, the share had gained strongly, closing at Rs 484.85, a achieve of Rs 124.85 or 34.68 per cent.

The second share to record was GPT Healthcare Limited which had issued shares at Rs 186. The share debuted on the bourses on Thursday, February 28. The found worth was Rs 216.15 and the share closed day one at Rs 200.75, a achieve of Rs 14.75 or 7.93 per cent. Over the following two days, the share misplaced floor and closed at Rs 191.75, a achieve of Rs 5.75 or 3.09 per cent.

The first situation to open and shut for subscription was Platinum Industries Limited which had tapped the markets with its situation for Rs 235.32 crore in a worth band of Rs 162-171. The situation was oversubscribed an general 98.73 occasions with QIB portion subscribed 151 occasions, HNIs 141.69 occasions and Retail portion subscribed 50.45 occasions. There had been 32.85 lakh purposes in all.

The second situation was Exicom Tele-systems Limited which had tapped the markets with its recent situation for Rs 329 crore and a proposal on the market of 70.42 lakh shares in a worth band of Rs 135-142. The situation was subscribed 129.19 occasions. The QIB portion was subscribed 121.80 occasions, HNI portion was subscribed 153.04 occasions and Retail portion was subscribed 117.83 occasions. There had been 36.79 lakh purposes in all.

Bharat Highways’ situation

The third situation was from Bharat Highways Invit. The worth band was Rs 98-100. The situation measurement was Rs 2,500 crore of which 15 per cent was allotted to the sponsor. The situation was subscribed 8.18 occasions general with the QIB portion subscribed 9.1 occasions and Non QIB portion subscribed 7.07 occasions. There had been 2.17 lakh purposes in all.

The week forward has three IPOs opening. The first is from R.Okay. Swamy Limited which is tapping the markets with its recent situation for Rs 173 crore and a proposal on the market of 87 lakh shares in a worth band of Rs 270-288. The situation will open on Monday, March 4, and shut on Wednesday, March 6. The firm is into the enterprise of built-in advertising and marketing communications and operates a full-scale promoting company and market analysis enterprise verticals.

The firm has over 5 a long time of presence. It reported revenues of Rs 780 crore for the 12 months ended March 23 on a gross foundation and a web income of Rs 300 crore. Its EBITDA margins had been 20.97 per cent and PAT margin at 10.42 per cent. There is cyclicality within the enterprise of the corporate and broadly talking roughly 40 per cent of its revenues come within the first half and 60 per cent within the second half. Profitability is even more skewed and the corporate in my view earns about 25 per cent of earnings within the first half and 75 per cent within the second half.

The firm had an EPS of Rs 7.03 for the 12 months ended March 23 and based mostly on this EPS the PE a number of for share is 38.41-40.96. The firm has its area of interest and is without doubt one of the main firms within the promoting house standing up towards the MNCs and doing nicely. The market analysis provides it the innovative. One ought to put money into the corporate for medium to long run beneficial properties whereas making some itemizing pop may at all times occur.

IPO of JG Chemicals

The second share to faucet the markets is JG Chemicals Limited. The situation would open on Tuesday the fifth of March and shut on Thursday, March 7. The worth band is Rs 210-221. The firm is the most important producer of Zinc Oxide within the nation. Its merchandise are used within the tyre and rubber business and J.G. Chemicals in a number one provider to tyre producers within the nation and globally as nicely. The firm has crops in Kolkata and in Naidupeta in Andhra Pradesh.

The firm reported revenues of Rs 795 crore for the 12 months ended March 23. Its EPS was Rs 17.32 and the resultant PE for the difficulty is 12.12-12.76. While there are listed gamers within the phase, they’re smaller in contrast to the corporate. The firm affords appreciation for buyers wanting to make investments with a medium-term outlook as the corporate has diversified and added merchandise within the pharmaceutical and agricultural house as nicely.

Gopal Snacks

The third firm tapping the capital markets with its provide on the market is Gopal Snacks Limited. The situation opens on Wednesday, March 6, and closes on Monday, March 11. The worth band of the difficulty is Rs 381-401. The firm is a producer and marketer of ethnic Indian snacks, gathiya and western snacks. The firm is situated in Rajkot with two crops in Rajkot and close to Ahmedabad and one plant in Nagpur.

The firm reported revenues of Rs 1,394 crore for the 12 months ended March 23, an EBITDA margin of 14.07 per cent and a PAT margin of 8.06 per cent. The revenue after tax was Rs 112 crore. The EPS for the 12 months ended March 23 was Rs 9.03 and the PE a number of at 42.24-44.46. The firm compares favourably with its listed friends like Pratap Snacks and Bikaji Foods.

The firm is current in ten states and two Union Territories with Gujarat being the most important state by way of gross sales. It has 617 distributors as of date and is wanting to increase its footprint. The gross sales distribution by way of merchandise having a MRP of Rs 5 is 75 per cent whereas that of Rs 10 is 8.23 per cent. This provides the corporate an edge that the quantity of people that purchase their merchandise repeatedly could be very excessive.

A worth level of Rs 5 ensures an honest snack for the shopper of hygienic meals which is correctly packed and served in a secure and hygienic situation. The share affords appreciation within the quick and medium time period, and will give an inventory pop for the flippers.

Trading vacation on March 8

Coming to the markets within the coming week, there’s a buying and selling vacation on Friday the eighth of March. This would scale back the week to a four-trading session and likewise be certain that regardless of the end result of the buying and selling classes, there can be revenue taking and lightening of positions on Thursday, forward of the buying and selling vacation.

Markets obtained a booster dose on Friday and so they now have the momentum to construct additional on it. Expect markets to proceed to transfer up and purpose for the 35 spill over from the January highs. Targets can be about 22,750 on Nifty and 75,600 on BSE Sensex. These are ranges which turn out to be targets for the indices to attain. Markets have assist at ranges of 21,900 on Nifty and at 72,100 on BSE Sensex. This turns into the working vary for the markets.

The technique for the week can be to proceed to give attention to massive cap shares and guide earnings in small and midcap house. There is a certain quantity of index administration taking place with Reliance Industries and HDFC Bank being the favorite massive boys.

Whenever markets look weak, these shares are pulled up to give the sensation that each one is nicely. While talks of a correction carry on coming, the temper is optimistic, momentum favours the bulls and markets want information move to appropriate. Till then journey the rally.

(Arun Kejriwal is the founding father of Kejriwal Research and Investment Services. The views expressed are private)

(With inputs from IANS)