Market this week 17-11-2023
Taking Stock: Despite some late-hour selling, the market continues to rise; IT and pharmaceuticals rise.
On November 16, the Indian benchmark indices closed higher for the second day in a row. The session was erratic, with purchasing seen in the names of information technology, oil and gas, automobiles, and pharmaceuticals, while last-hour selling limited gains.
The Nifty was up 89.70 points, or 0.46 percent, at 19,765.20 at the closure, while the Sensex was up 306.55 points, or 0.47 percent, at 65,982.48, at close.
The benchmark indices began the day lower on mixed global cues, bounced back, and went higher; but, last-hour selling erased some of the gains.
Hero MotoCorp, Tech Mahindra, TCS, HCL Technologies, and Infosys were among the top Nifty gainers, while Axis Bank, Coal India, Power Grid Corporation, Tata Consumer Products, and Adani Enterprises were among the losers.
Tata Chemical is neutral; Motilal Oswal wants to make Rs 920.
Consolidated EBITDA for Tata Chemicals (TTCH) fell 11% year over year in the second quarter of FY24, mostly as a result of weak operational results in Kenya, India, and the UK. Reduced realizations in Kenya and India combined with a YoY reduction in soda ash volumes of 16% in Kenya and 20% in the UK caused a weakening of operating performance. Due to persistently negative demand-supply dynamics in the global soda ash business and ongoing pricing pressure across countries, we have lowered our FY24/FY25 EBITDA expectations by 12%/8%.
Aurobindo Pharma Neutral; Motilal Oswal targets Rs 970
In the second quarter of FY24, Aurobindo Pharma (ARBP) performed better than anticipated. ARBP shown exceptional growth in all major US and EU markets, including the ARV formulation market. Better profitability was further bolstered by reduced raw material costs. In the upcoming quarters, margins should improve with the launch of g-Revlimid. For FY24 and FY25, we increase our profits projections by 6% and 5%, respectively, taking into account the advantages of 1) less price erosion in the base portfolio and 2) better operating leverage.
In order to arrive at our TP of INR970, we value ARBP at 15x 12M projected earnings. For its target market, ARBP is still working hard to develop a strong product pipeline that includes specialized prospects in the injectables and biosimilar domains. Additionally, the eagerly anticipated Pen-G project is expected to start producing commercial benefits in FY25E.
In India, Dr. Reddy introduced a wearable migraine management device.
Nerivio, a medication-free, non-invasive migraine treatment tool approved by the USFDA, is being introduced by Dr. Reddy’s in India.
The firm released a press release on November 16 stating that Nerivio is a wearable that is devoid of drugs and designed for people 12 years of age and older who suffer from acute and prophylactic (preventive) migraines. The device is non-invasive and requires a prescription.
Thirty percent of individuals worldwide suffer from migraines; women are disproportionately afflicted, accounting for sixty percent of cases in India.
We are entering the field of digital therapeutics (DTx) with the launch of Nerivio. According to MV Ramana, Chief Executive Officer, Branded Markets (India and Emerging Markets), Dr. Reddy’s, “it is an area that is seeing increasing adoption by physicians as well as patients due to its potential to reduce pill burden and decrease dependency on non-specific medication in chronic or hard-to-treat di
Bikaji Foods uses a horizontal trendline breakout to signify bullish momentum.
The technical indicators for the shares of Bikaji Foods International are indicating a bullish trajectory. On a daily scale, the snacking company’s stock has shown a horizontal trendline breakout, indicating possible upside.
Head of Technical and Derivative Research at SBI Securities Sudeep Shah said, “The stock saw a horizontal trendline breakthrough on the daily scale on Wednesday, which was confirmed by strong volume. The breakout was strengthened by the formation of a sizable bullish candle on the breakout day.”
The stock is currently trading higher than both its short- and long-term moving averages. These averages show a bullish indication since they are rising and falling in the intended order, Shah continued.