“Indian Stock Market Adjusts for Ram Temple Event” Best 2024

In a strategic move, the Indian stock market has decided to operate on a full trading day this Saturday, January 20, ahead of a scheduled shutdown on Monday. This decision aligns with the upcoming ‘Pran Pratishtha’ ceremony at the Ram Temple in Ayodhya on January 22, prompting adjustments in the trading schedule.

"Indian Stock Market Adjusts for Ram Temple Event" Best 2024
Stock market Condition

Trading Schedule:

On Saturday, January 20, the stock market will open for a full trading session from 9 am to 3:30 pm, as confirmed by a National Stock Exchange (NSE) spokesperson. However, all trading activities across equities, debt, and money markets will be suspended on Monday, January 22, due to a public holiday declared by the Maharashtra government.

Public Holiday in Maharashtra:

The Maharashtra government has declared January 22 as a public holiday to commemorate the celebration of the Ram Temple ‘Pran Pratishtha’ in Ayodhya. This decision has prompted the closure of trading activities in the financial markets, with the central government also declaring a half-day closing until 2:30 p.m. on Monday.

Market Preparedness:

Before the confirmation of the trading schedule, there was uncertainty regarding the timings for trading on Saturday. The stock market was initially set to open for trading in two special sessions on Saturday as a precautionary measure to test a failsafe system for trading.

10 Mains Points 19 Jan for Stock Market

  1. Strategic Trading Decision: The Indian stock market has strategically decided to operate on a full trading day on Saturday, January 20, ahead of a scheduled shutdown on Monday, aligning with the ‘Pran Pratishtha’ ceremony at the Ram Temple in Ayodhya on January 22.
  2. Extended Trading Hours: On Saturday, the stock market will open for a full trading session from 9 am to 3:30 pm, allowing investors to adjust their positions before the scheduled shutdown on Monday.
  3. Public Holiday in Maharashtra: The Maharashtra government has declared January 22 as a public holiday to commemorate the Ram Temple ceremony, leading to the suspension of all trading activities in the financial markets on that day.
  4. Central Government Half-Day Closing: The central government has declared a half-day closing until 2:30 p.m. on Monday, further impacting trading activities in the wake of the public holiday.
  5. Market Preparedness Testing: Initially, there was uncertainty about the Saturday trading schedule, leading to plans for special live trading sessions to test the Disaster Recovery (DR) site and ensure the effectiveness of backup systems.
  6. Company Spotlight – PCBL: Phillips Carbon Black Limited (PCBL) has experienced a remarkable upward trend in its shares since April 2020, surging nearly 700%, from ₹32 to ₹310.
  7. Strong Financial Performance: PCBL posted a consolidated net profit of ₹148 crore in Q3 FY24, reflecting a significant improvement of 52% YoY and 20% QoQ. The robust performance is attributed to improved per-kg profitability and increased consolidated revenue.
  8. Analyst Recommendations: Despite the substantial stock run-up, domestic brokerage firms maintain a positive outlook on PCBL. JM Financial and Nuvama Institutional Equites maintain ‘buy’ ratings with raised target prices, while SMIFS Limited has an ‘accumulate’ rating.
  9. Long-Term Outlook: PCBL is considered a proxy play on volume recovery in the tyre sector, with a projected volume Compound Annual Growth Rate (CAGR) of 13.5% from FY23–26E. The company’s core business in carbon black is seen as strong, supported by favorable dynamics in the global carbon black market.
  10. Market Resilience: The decision to adjust the trading schedule reflects a proactive approach to market stability amid the upcoming Ram Temple ceremony. Attention is turning to the continued bullish outlook for companies like PCBL, symbolizing resilience in the face of global economic uncertainties.
"Indian Stock Market Adjusts for Ram Temple Event" Best 2024
Stock Market

Stock Market conditions

  1. Saturday Trading: With the Indian stock market operating on a full trading day on Saturday, January 20, there may be increased activity as investors adjust their positions before the scheduled shutdown on Monday.
  2. Monday Market Closure: Trading activities will be suspended on Monday, January 22, due to a public holiday declared by the Maharashtra government, aligning with the ‘Pran Pratishtha’ ceremony at the Ram Temple in Ayodhya.
  3. Market Preparedness Testing: Prior to confirming the trading schedule, there was uncertainty, and testing of the Disaster Recovery (DR) site was planned. This suggests a focus on ensuring the effectiveness of backup systems for market stability.
  4. PCBL (Phillips Carbon Black Limited): PCBL has experienced a significant upward trend since April 2020, with shares surging nearly 700%. The company’s strong Q3 FY24 earnings, positive analyst recommendations, and long-term outlook contribute to its positive standing.
  5. Financial Performance: PCBL’s robust Q3 FY24 performance, marked by a 52% YoY increase in consolidated net profit and a 21.60% YoY increase in consolidated revenue, indicates favorable financial health.
  6. Analyst Recommendations: Despite the stock’s substantial run-up, domestic brokerage firms maintain a positive outlook on PCBL, with raised target prices, citing factors like improved volume estimates and per-kg EBITDA.
  7. Long-Term Outlook: PCBL is positioned as a proxy play on volume recovery in the tyre sector, with a projected volume CAGR of 13.5% from FY23–26E. The company’s core business in carbon black is considered strong, supported by favorable dynamics in the global carbon black market.

Testing DR Site:

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had planned to conduct a special live trading session in the equity F&O segment on January 20 to switch to the Disaster Recovery (DR) site. This session aimed to ensure the effectiveness of backup systems and enhance overall market preparedness.

Company Spotlight – PCBL (Phillips Carbon Black Limited): In a separate development, shares of PCBL, formerly Phillips Carbon Black, have witnessed a remarkable upward trend since April 2020. The shares have surged nearly 700%, from ₹32 to the current price of ₹310, rewarding shareholders handsomely.

"Indian Stock Market Adjusts for Ram Temple Event" Best 2024
Stock Market

Financial Performance:

In the recently reported Q3 FY24 earnings, PCBL posted a consolidated net profit of ₹148 crore, marking a significant improvement of 52% YoY and 20% QoQ. The robust performance was attributed to improved per-kg profitability and a 21.60% YoY increase in consolidated revenue from operations, reaching ₹1,657 crore.

Analyst Recommendations:

Despite the stock’s substantial run-up, domestic brokerage firms maintain a positive outlook. JM Financial maintained a ‘buy’ rating, raising the target price to ₹355, citing improved volume estimates and per-kg EBITDA. Nuvama Institutional Equites also retained a ‘buy’ rating with a target price of ₹323, while SMIFS Limited has an ‘accumulate’ rating with a target price of ₹314.

Long-Term Outlook:

PCBL remains a proxy play on volume recovery in the tyre sector, with a projected volume CAGR of 13.5% from FY23–26E. The company’s core business in carbon black is deemed strong, supported by favorable dynamics in the global carbon black market.

Conclusion:

As the Indian stock market adjusts its trading schedule amidst the upcoming Ram Temple ceremony, investors remain watchful. The move reflects a proactive approach to market stability, with attention turning to the continued bullish outlook for companies like PCBL, symbolizing resilience in the face of global economic uncertainties.

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