22 Aug 2022
22 Aug 2022
22 Aug 2022
22 Aug 2022
Trendlyne Analysis
Indian indices closed in the red, with the volatility index, India VIX, rising over 19%. The Nifty 50 lost over 260 points and closed below the 17,500 mark. European indices followed the global trend and traded lower than Friday’s levels. Most major Asian indices closed in the red tracking the US indices, which closed lower on Friday. US stocks fell amid rising bond yields. The tech-focused index, NASDAQ 100, fell close to 2% and posted weekly losses for the first time in four weeks. The Dow Jones fell 0.9% while the S&P 500 closed 1.3% lower. Brent crude oil futures traded lower amid concerns over low demand due to slowing economic growth. In addition, investors also assess the impact of power restrictions in some parts of China on economic activity and crude oil demand.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media and Nifty Bank closed lower than Friday’s levels. Nifty IT lost over 1.98% and closed in the red, tracking the NASDAQ 100, which closed deep in the red on Friday.
Nifty 50closed at 17,494.35 (-264.1, -1.5%), BSE Sensexclosed at 58,773.87 (-872.3, -1.5%) while the broader Nifty 500closed at 15,002.90 (-233.8, -1.5%)
Market breadth is overwhelmingly negative. Of the 1,931 stocks traded today, 523 were in the positive territory and 1,356 were negative.
SIS, Pfizer, Advanced Enzyme Technologies, and IIFL Wealth Management are trading with higher volumesas compared to Friday.
Stocks like Torrent Power, Hikal, Indian Railway Catering & Tourism Corp, Adani Enterprises, and BASF India are in the overbought zone, according to the money flow index or MFI.
Glenmark Pharmaceuticals, Strides Pharma Science, and Cipla recall products like blood pressure lowering drug, prednisone tablets, and difluprednate ophthalmic emulsion in the United States due to manufacturing issues, according to reports.
- Bofa Securities says that emerging market funds increased their allocation to India to 19.7% in July, compared to 18.1% in June. FII inflows in July were driven by the country’s better positioning compared to other emerging markets.
#BQMarkets | Emerging market funds have increased allocation to India as the domestic markets, according to #BofA Securities.
— BQ Prime (@bqprime) August 22, 2022
Here's why: https://t.co/cuXSARbLAcpic.twitter.com/6EtwFj19tb Metal stocks like Jindal Steel & Power, Tata Steel and Steel Authority of India (SAIL) fall more than 3% in trade. The broader Nifty Metal index also falls more than 2%.
Advertising & Media, Integrated Oil & Gas, and Storage Media & Peripherals industries rise by more than 3% in trade today.
Sanofi India and Alembic Pharmaceuticals hit their 52-week lows of Rs 6,295 and Rs 642, respectively. Sanofi India falls for four consecutive days, while Alembic Pharmaceuticals trades lower for five sessions.
Media sector rises 11.1% over the past month. Zee Entertainment Enterprises and Sun TV Network rise over 10% outperforming the sector.
Greenlam Industries is rising as the manufacturing facility it acquired in Gujarat in June commenced commercial production on Saturday. The facility has an installed capacity of 3.4 million laminate sheets per year and the potential to generate revenue of Rs 150 crore per year.
CCL Products India is trading with more than 14 times its weekly average trading volume. Shilpa Medicare, Aptus Value Housing Finance India, Hitachi Energy India, and Indigo Paints are trading at more than four times their weekly average trading volumes.
Shilpa Medicare is rising as its arm Shilpa Biologicals completes its phase three of human clinical studies of its first biosimilar and has submitted the dossier to the Central Drugs Standard Control Organisation for review and grant of marketing and manufacturing license.
ICICI Securities maintains its ‘Add’ rating on Reliance Industries with a target price of Rs 2,805. This indicates an upside of 7.3%. The brokerage remains optimistic about the prospects of the company’s green energy business and expects the consumer segment to maintain its revenue growth momentum over the coming quarters. The brokerage anticipates the company’s profit to grow at a CAGR of 24.2% over FY22-24.
Nomura initiates coverage on Zomato with a 'Reduce' rating and a target price of Rs 50. The brokerage expects the company's food delivery business to become adjusted EBITDA positive by Q1FY24, excluding its recent Blinkit acquisition.
Nomura has initiated coverage on #Zomato with a 'Reduce' rating and a target of Rs 50 https://t.co/iG96re0rxu
— ETMarkets (@ETMarkets) August 22, 2022Ratnamani Metals & Tubes receives orders worth Rs 1,186 crore, including domestic orders worth Rs 1,083 crore to be executed over the next two years and export orders aggregating to Rs 103 crore to be executed in FY23.
Larsen & Toubro bags a contract worth between Rs 2,500–5,000 crore from Indian Oil Corp. The company secures the engineering, procurement, construction and commissioning contract for setting up a residue hydrocracker unit for the Panipat refinery expansion project.
All realty stocks are trading in the red. Stocks like, DLF, Godrej Properties, Oberoi Realty and Sobha are down by more than 1.5%. The broader sectoral index Nifty Realty is also falling in trade.
JSW Steel enters into a joint venture agreement with National Steel Holding, a New Zealand-based company engaged in the recycling and processing of metal. The joint venture agreement involves the setting up of scrap shredding facilities in India. The company and National Steel Holding will each hold a 50% stake in the joint venture.
CDC Group sells a 3.6% stake in IIFL Finance for Rs 453 crore approximately, and Great Terrain Investment sells a 3.8% stake in Computer Age Management Services for Rs 427 crore approximately, in bulk deals on Friday.
Indian rupee opens lower at 79.81 against the US dollar today, as Asian equities decline amidst the speculation that US Federal Reserve will further raise policy rates.
Indian rupee opens lower on hawkish Fed outlook https://t.co/qzsw6QCqGapic.twitter.com/3pwbZCtlvv
— Reuters (@Reuters) August 22, 2022Auto stocks like Maruti Suzuki, Tata Motors, Mahindra & Mahindra among others are falling in trade. All constituents of the broader Nifty Auto index are also trading in the red.
One97 Communications (Paytm) reappoints Vijay Shekhar Sharma as the MD & CEO of the company for a period of five years. In its annual general meeting on Friday, 99.67% of shareholders voted in favour of Sharma’s re-appointment.
Adani Power to acquire DB Power in an all-cash deal for Rs 7,017 crore. DB Power owns and operates two thermal power plants of 600 MW each, in Janjgir Champa district, Chhattisgarh.
Riding High:
Largecap and midcap gainers today include Adani Power Ltd. (432.50, 4.99%), Adani Green Energy Ltd. (2,519.75, 4.50%) and Sun TV Network Ltd. (500.00, 2.89%).
Downers:
Largecap and midcap losers today include Varun Beverages Ltd. (919.75, -6.92%), Hindustan Petroleum Corporation Ltd. (246.65, -6.47%) and Trent Ltd. (1,314.10, -6.01%).
Crowd Puller Stocks
17 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Suzlon Energy Ltd. (8.60, 11.69%), Elgi Equipments Ltd. (465.80, 10.52%) and CCL Products India Ltd. (450.70, 7.91%).
Top high volume losers on BSE were Asian Paints Ltd. (3,349.75, -3.81%), Finolex Industries Ltd. (141.75, -2.84%) and AstraZeneca Pharma India Ltd. (3,033.80, -1.84%).
Gillette India Ltd. (5,525.00, 3.89%) was trading at 14.9 times of weekly average. Indigo Paints Ltd. (1,572.15, 4.03%) and Shilpa Medicare Ltd. (390.75, 0.97%) were trading with volumes 6.8 and 6.5 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
8 stocks hit their 52-week highs, while 4 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Adani Power Ltd. (432.50, 4.99%), Grindwell Norton Ltd. (2,096.45, 1.75%) and ITC Ltd. (314.40, 0.77%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (649.70, -0.32%) and Biocon Ltd. (305.50, -0.86%).
4 stocks climbed above their 200 day SMA including Aptus Value Housing Finance India Ltd. (315.45, 2.22%) and Radico Khaitan Ltd. (963.00, 0.65%). 49 stocks slipped below their 200 SMA including Hatsun Agro Products Ltd. (1,061.10, -5.56%) and Jubilant Foodworks Ltd. (564.70, -5.35%).
22 Aug 2022
19 Aug 2022
Trendlyne Analysis
Nifty 50 lost close to 200 points and closed in the red for the first time in nine trading sessions. The Indian volatility index, India VIX, rose by 5.4%. European indices traded lower than Thursday’s levels as investors assessed Eurozone’s July inflation print, which came in at a record high of 8.9%, in line with analysts’ expectations. Most major Asian indices closed in the red despite the US indices closing marginally higher on a volatile day of trade. The tech-heavy index, NASDAQ 100 rose 0.3% while the S&P 500 closed 0.2% higher. Brent crude oil futures traded lower after rising 3.9% on Thursday as strong US fuel consumption data offset prospects of slowing economic growth.
Nifty Smallcap 100 and Nifty Next 50 closed in the red, following the benchmark index. Nifty Metal and Nifty Bank closed lower than Thursday's levels. Nifty IT closed flat after trading in the green for most of the trading session.
Nifty 50closed at 17,758.45 (-198.1, -1.1%), BSE Sensexclosed at 59,646.15 (-651.9, -1.1%) while the broader Nifty 500closed at 15,236.65 (-168.0, -1.1%)
Market breadth is in the red. Of the 1,904 stocks traded today, 639 were gainers and 1,221 were losers.
Dhani Services, Sundram Fasteners, J B Chemicals & Pharmaceuticals, and Motilal Oswal Financial Servicesare trading with higher volumesas compared to Thursday.
Larsen & Toubrosees a long build-up in its August 25 futures series as its open interest rises 12.5% with a put-call ratio of 0.69.
Marine Port & Services, Advertising & Media, and Transport Support Services industries rise by more than 3% in trade today.
Sun Pharmaceutical falls for a second consecutive session after the US FDA issued form-483 flagging six quality control and procedure lapse issues at its Mohali plant. The form is issued when the regulator observes a violation of the Food Drug and Cosmetics Act. The company is working on addressing and resolving the issue promptly.
Stocks like Adani Enterprises, Apollo Tyres, Bajaj Finserv, and Ambuja Cementsare in the overbought zone, according to the technical indicator relative strength index or RSI.
Solar Industries India and Tata Chemicals hit their all-time highs of Rs 3,448.5 and Rs 1,182.2, respectively. Both stocks are rising for two consecutive sessions.
Realtystocks like DLF, Godrej Properties, Macrotech Developers, and Indiabulls Real Estate, among others, are falling in trade. The broader sectoral index Nifty Realty is also trading in red.
Havells India is falling as it quantifies the loss for the July 28 fire at its Neemrana plant in Rajasthan at Rs 150 crore. The company says the plant is fully insured.
ICICI Direct downgrades its rating on HEG to 'Hold' from 'Buy' with a target price of Rs 1,400. This indicates an upside of 6%. The brokerage believes that rising energy costs and inflation due to the conflict in Europe hurt demand in the European Union countries. It estimates the company's sales revenue to grow at a CAGR of 24% over FY22-24.
CEAT trades flat in a weak market after Chief Operating Officer Arnab Banerjee says the company plans to expand its tyre sales network through the FMCG distribution network to penetrate in rural markets. The company has tied up with various neighbourhood stores, auto spare parts shops, and puncture repair shops as a part of its distribution network. It also aims to double its outlets to one lakh in the next 2-3 years.
KR Choksey maintains its ‘Accumulate’ rating on Aurobindo Pharma with a target price of Rs 626, indicating an upside of 7.9%. The brokerage expects growth in the company’s US specialty injectable business to partially offset high input costs and improve margins going forward. It estimates the company’s net profit to grow at a CAGR of 14.8% over FY22-24.
IIFL Finance is trading with more than 32 times its weekly average trading volume. Computer Age Management Services, Go Fashion (India), ITI, and Ajanta Pharma are trading at more than six times their weekly average trading volumes.
India’s gold imports rose 6.4% in the April-July period in FY23 to $12.9 billion because of a surge in demand. An increase in gold and oil imports led to an increase in trade deficit by 65% YoY for the April-July period in FY23.
Gold imports up 6.4% to $13 billion in April-July this fiscal https://t.co/APt1L5Lbp8
— TOI Business (@TOIBusiness) August 19, 2022PSU banks like State Bank of India, Bank of Baroda, Canara Bank among others are falling in trade. All constituents of the broader Nifty PSU Bank index are trading in the red.
Sanjay Chaturvedi, Chief Executive Officer at IOL Chemicals expects the EBITDA margin of the company to rise by 15-17%. He is optimistic about the growing business in the chemical and pharma side.
#OnCNBCTV18 | Expect #margin to rise to 15-17%. Energy prices in #China have risen sharply over the last few years. Non-Ibuprofen contribution will rise to 50% in the next 18 months vs 37% now, says Sanjay Chaturvedi of IOL Chemicals pic.twitter.com/kSXSGtsDLW
— CNBC-TV18 (@CNBCTV18Live) August 19, 2022Indian Railway Catering & Tourism Corp is rising as it intends to monetise its customer data to generate revenue. The company floats a tender to appoint a consultant to guide it on the monetization of its digital assets. According to reports, the company plans to raise Rs 1,000 crore through the monetisation of passengers’ data.
IT stocks like Tech Mahindra, Infosys, Wipro among others, are rising in trade. All constituents of the broader Nifty IT index are trading in the green.
HDFC AMC's Senior Fund Manager Gopal Agarwal says that he is optimistic about the growth prospects of India's industrial and manufacturing sectors for FY23 and FY24. He is also bullish on auto and auto ancillaries because of a correction in commodity prices.
#BeatTheStreet | Gopal Agrawal of HDFC AMC says
— ET NOW (@ETNOWlive) August 19, 2022
-As inflation peaked out and commodities started correcting, risk-reward appeared favourable
-Optimistic about Industrial and Manufacturing sectors
-Bullish on Auto and Auto ancillaries @nikunjdalmia@AyeshaFaridi1#StockMarketpic.twitter.com/8InBVzPCrAWipro is rising as it bags a multi-year contract from the UK's treasury department to deliver service integration and management (SIAM) services. The contract pertains to enabling end-to-end IT services across the UK's treasury department’s vendors.
Metropolis Healthcare revises the last working day of its outgoing Chief Executive Officer Vijender Singh to Wednesday from November 30. Singh resigned from his post on July 29.
Centre cuts windfall tax on locally produced crude oil to Rs 13,000 per tonne from Rs 17,750 per tonne. It reinstates an export duty on aviation turbine fuel to Rs 2 per litre after it was removed on August 2. The Centre increases the windfall tax on the export of diesel to Rs 7 per litre from Rs 5 per litre while the export of petrol will continue without the imposition of a windfall tax.
Riding High:
Largecap and midcap gainers today include Adani Green Energy Ltd. (2,411.35, 5.01%), Adani Ports & Special Economic Zone Ltd. (871.80, 4.65%) and Emami Ltd. (486.35, 4.37%).
Downers:
Largecap and midcap losers today include Zomato Ltd. (61.45, -8.42%), Varun Beverages Ltd. (988.15, -5.07%) and Tata Elxsi Ltd. (10,138.75, -4.48%).
Movers and Shakers
26 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Wockhardt Ltd. (263.00, 12.18%), Vardhman Textiles Ltd. (334.45, 7.38%) and Adani Green Energy Ltd. (2,411.35, 5.01%).
Top high volume losers on BSE were Borosil Renewables Ltd. (560.15, -6.00%), IIFL Finance Ltd. (332.90, -5.22%) and Computer Age Management Services Ltd. (2,255.65, -5.16%).
Tata Communications Ltd. (1,125.00, 3.55%) was trading at 9.4 times of weekly average. ITI Ltd. (117.80, 3.56%) and Ajanta Pharma Ltd. (1,297.15, 2.89%) were trading with volumes 9.0 and 7.7 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
13 stocks made 52-week highs,
Stocks touching their year highs included - Adani Power Ltd. (411.95, 3.13%), Adani Transmission Ltd. (3,635.25, 0.99%) and Apollo Tyres Ltd. (260.15, -2.38%).
14 stocks climbed above their 200 day SMA including Emami Ltd. (486.35, 4.37%) and Ajanta Pharma Ltd. (1,297.15, 2.89%). 18 stocks slipped below their 200 SMA including Jubilant Foodworks Ltd. (596.60, -3.80%) and Bharat Heavy Electricals Ltd. (54.10, -3.74%).
19 Aug 2022
- Bajaj Electricals: This household appliances company’s stock has been volatile for the past week. It rose nearly 1.5% on August 12 after it released its Q1FY23 results. But after announcing the permanent closure of its Parwanoo Unit on August 13 (over the Independence Day weekend), the stock fell 2.9% on Tuesday. Following this, the company declared a change in its management structure, triggering a jump of 2.7% on Wednesday.
The stock was up nearly 6% in trade on Thursday and shows up in the screener for companies where brokers have upgraded their target price and rating.
In the post Q1FY23 earnings call, the management said certain disruptions in their operating technology systems led to a loss in sales of 10 days of around Rs 30-50 crore. However, the management expects to recoup this in Q2FY23 and clarified that further phases of the OS implementation will have minimal impact.
The company saw revenues grow 43% YoY to Rs 1,229 crore in Q1FY23 because of price hikes in April. However, brokerages like ICICI Securities and Prabhudas Lilladher have a cautious approach towards the stock. Although ICICI Securities upgraded the stock to ‘Add’ from ‘Hold’ the brokerage feels that risks like an increase in input costs, delay in the launch of new products and increasing competition in the market may result in lower earnings.
- Gujarat Alkalies & Chemicals: This commodity chemical maker’s stock rose over 10% on Tuesday after the company announced the commissioning of a 1,05,000 tonnes per annum (TPA) chloromethanes plant at Dahej, Gujarat. The chloromethane market includes various end-user industries such as textile, automotive, personal care, pharmaceutical, and paints & coating. In addition, Meridian Chem Bond bought 5.3 lakh shares (0.7% stake) in the company for Rs 44.5 crore in a bulk deal on Tuesday. All of these factors led the stock to rise over 17% in three trading sessions until Thursday, and it is now in the overbought zone according to the money flow index or MFI.
This chemical manufacturer is currently in a phase of rapid expansion and the newly commissioned plant for the production of chloromethanes will help expand the company’s footprint in the textile industry. Revenues from the textile segment contributed to over 19% of the total revenue and strong market demand helped the company post 56% revenue growth YoY in Q1FY23. The company’s revenue is rising for the past six quarters YoY. It shows up in a screener that lists companies that saw improvement in net profits, operating profit margin and revenues in the most recent quarter.
- Apollo Tyres: The tyre maker’s stock hit a 52-week high on Thursday and outperformed the Nifty 500 index by over 16% in the past week. The company’s stock received three target price upgrades from brokers in the past month.
Apollo Tyres is the only tyre maker among the top five listed players like MRF and Balkrishna Industries which saw a sequential and YoY rise in its Q1FY23 net profit. This was backed by healthy top-line growth. In fact, Apollo Tyres managed to improve its margins sequentially mainly driven by its India operations. While its industry-leading performance certainly impressed the street, the company’s management gave out mixed signals for the quarter ahead. Notably, the company derives nearly 45% of its revenues from the truck and bus radial segment. However, it is seeing weak demand from the Indian commercial vehicle space due to the monsoon season in Q2FY23. On the other hand, demand trends are strong for the European passenger vehicle sector despite inflationary trends. This is partly due to the extended disruption of premium tyre imports from Russia. The company also expects the prices of key commodities like rubber to stabilize and then decline from Q3FY23 onwards.
- Happiest Minds Technologies: This IT consulting and software firm’s stock rose 15.6% over the past week till Thursday. It has been on an uptrend for five consecutive sessions on the back of its positive business outlook, as it recently launched Identity Vigil 2.0, its identity management services platform. The company’s Q1FY23 net profit rose 8.1% QoQ to Rs 56.3 crore and revenues by 9.4%. Revenue growth was driven by the product engineering services and digital business solutions segments. The company shows up on a screener that lists companies with sequentially rising profits for the past four quarters.
The management said that it aims to reach $1 billion annual revenues in seven years - by FY31, and expects that continued, long-term demand for digital services will help achieve this goal. Brokerage ICICI Securities initiated coverage of the stock on August 12 with an ‘Add’ rating. The brokerage believes that Happiest Minds is well-positioned in the high-growth IT digital market given its robust customer-centric sales engine.
The management guided for revenue growth of 25% in FY23 and an EBITDA margin of 22-24% in the medium to long term. The company is aiming for a revenue CAGR of 25% for the next five financial years. The management believes it can maintain a high level of revenue growth as it derives 97% of its revenue from digital and new technologies, more than any of its listed peers. The company shows up on a screener which lists stocks with strong cash-generating ability from their core business. It is also investing heavily in emerging technologies like the blockchain and metaverse to strengthen its digital capabilities.
- Trent: This retail company’s stock rose 8.6% over the past week till Thursday, mainly due to its good Q1FY23 results. The company is back in the black with a net profit of Rs 130.5 crore as compared to a loss of Rs 126.6 crore in Q1FY22. Revenues rose nearly 3.7X YoY and beat Trendlyne’s Forecaster estimates by 20.3%. The growth in revenues and profit was led by Westside and Zudio, helped by a strong recovery in demand and aggressive store expansion. The company shows up on a screener with stocks that consistently gave high returns over the past five years. This consistent growth over time has led to a Trendlyne Durability score of 70, the highest in the department stores industry.
But the company's margins are still under pressure from high input costs, as its EBITDA margin fell 420 bps to 16.2% as compared to 20.4% in the pre-Covid quarter of Q1FY20. According to reports, margin pressure is expected to persist given the company’s aggressive store expansion strategy. The business added 15 stores in Q1FY23, taking the total to 450 stores. A robust balance sheet, aided by healthy cash flow generation, allows the company to add new stores while keeping its debt low. Over the past few quarters, Trent has ramped up its online presence as it sees immense growth opportunities in the e-commerce space. This helped its revenues from online sales to jump significantly, contributing 6% to Westside’s revenue in Q1FY23. Going forward in FY23, the management aims to improve its cost optimisation to reduce margin pressure and increase the company’s profit.
Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.
18 Aug 2022
Trendlyne Analysis
Indian indices recovered their losses towards the end of the trading session and closed flat on a volatile day of trade. The Nifty 50 closed above the 17,950 mark and closed in the green for an eight straight session. European indices traded higher as investors look ahead to Eurozone’s July inflation print. Most major Asian indices closed lower, tracking the US indices, which closed in the red on Wednesday. However, the US stocks pared their losses after the US Federal Open Market Committee (FOMC) Meeting minutes suggested that the Fed could raise the federal funds rate at a less aggressive pace than anticipated. The Dow Jones fell 0.5% while the S&P 500 closed 0.7% lower. Brent crude oil prices traded marginally higher but continue to hover around its six-month low due to rising output from Russia and demand concerns on the back of slow global economic growth.
Nifty Smallcap 100 and Nifty Midcap 100 closed higher, outperforming the benchmark index. Nifty Metal and Nifty Bank closed higher than Wednesday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which fell over 1.2% on Wednesday.
Nifty 50closed at 17,964.45 (20.2, 0.1%), BSE Sensexclosed at 60,298.00 (37.9, 0.1%) while the broader Nifty 500closed at 15,409.95 (30.9, 0.2%)
Market breadth is in the green. Of the 1,903 stocks traded today, 988 were on the uptick, and 850 were down.
Star Health and Allied Insurance, Ajanta Pharma, Equitas Small Finance Bank, and Procter & Gamble Hygiene & Healthcareare trading with higher volumesas compared to Wednesday.
Adani Enterprisessees a long build-up in its August 25 futures series as its open interest rises 2.1% with a put-call ratio of 1.09.
HDFC Securities maintains its 'Reduce' rating on JK Cements with a target price of Rs 2,475, indicating a downside of 6.7%. The brokerage believes that the commissioning of the company's integrated unit in the central region will increase its grey cement capacity to 25 million metric tonnes in the north and central regions. It estimates sales revenue to grow at a CAGR of 10.7% over FY22-24.
Stocks like Adani Enterprises, Bajaj Finserv, Trent, Apollo Tyres, and Tata Elxsi are in the overbought zone, according to the technical indicator relative strength index or RSI.
The board of directors of Tata Power Renewable Energy, an arm of Tata Power, approve the preferential allotment of 8.36 crore equity shares to GreenForest New Energies Bidco. The shares are allotted at Rs 239.2 per share, aggregating to Rs 2,000 crore. This completes the first tranche of the transaction and the second tranche of Rs 2,000 crore will take place in accordance with the agreement.
Adani Enterprises and SBI Life Insurance hit their all-time highs of Rs 3,152.6 and Rs 1,333, respectively. Adani Enterprises rises for five consecutive days, while SBI Life Insurance trades higher for two sessions.
Syrma SGS Technology’s Rs 840 crore IPO gets bids for 32.6X of the available 2.9 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 5.5X of the available 1.4 crore shares on offer.
Tata Motors wins an order of 921 low-floor 12-metre electric buses from Bengaluru Metropolitan Transport Corporation (BMTC).The order is a part of the larger tender by Convergence Energy Services. According to the contract, Tata Motors will supply, operate and maintain the electric buses for 12 years.
#TataMotors wins order of 921 electric buses from Bengaluru Metropolitan Transport Corporation.
— BQ Prime (@bqprime) August 18, 2022
For the latest news & updates visit: https://t.co/gXeGqKQ77Ppic.twitter.com/UTAf9c9U49Dilip Buildcon is rising as the company wins orders worth Rs 1,400.4 crore form the Madhya Pradesh government. The order pertains to engineering, procurement, construction, testing and commissioning of various components of Gandhisagar-2 multi-village scheme for the districts of Mandsaur and Neemuch. The order also includes trial run and operation and maintenance of the entire water supply scheme for 10 years in Madhya Pradesh.
IT Networking Equipments, Household Products, and Data Processing Services industries rise by more than 3% in trade today.
Sona BLW Precision Forgings is trading with more than 30 times its weekly average trading volume. Bajaj Holdings & Investment, Sundram Fasteners, Solara Active Pharma Sciences, and Bajaj Electricalsare trading at more than four times their weekly average trading volumes.
ICICI Direct maintains its ‘Buy’ rating on Apollo Tyres with a target price of Rs 290, indicating an upside of 16%. The brokerage expects the company to benefit from the expected rise in demand for tyres on the back of an uptick in demand for passenger and commercial vehicles. It believes the company’s profitability will improve given its healthy cash flow generation and focus on capital efficiency. The brokerage estimates the company’s profit to grow at a CAGR of 40.9% over FY22-24.
Reliance Jio gains 42.2 lakh wireless subscribers in June on a net basis, while Bharti Airtel adds a net 7.93 lakh subscribers. Vodafone Idea loses 18 lakh subscribers.
TRAI : 18.8 lakh #Mobile users net added in June Vs 28.5 lakh added in the previous month#telecom#subscriberpic.twitter.com/GbNM3IkvK1
— CNBC-TV18 (@CNBCTV18Live) August 17, 2022Ultratech Cement is rising as it expects its production capacity to increase to 159.25 million tonne per annum (MTPA) after its ongoing expansion plans are completed. The company is currently undertaking a 22.6-MTPA capacity expansion with an investment of Rs 12,866 crore.
Craftsman Automation rises after it announces the commencement of commercial operations at its new plant situated in Pune, Maharashtra. The existing capacity of the Pune plant is 11.5 lakh units. The company plans to increase its capacity by 2% with an investment of Rs 5 crore, according to reports.
Power Mech Projects is rising as it bags five orders for flue gas desulphurisation (FGD) projects worth Rs 6,163.2 crore from the Adani Group. The orders involve the installation of 15 FGD retrofits to Adani Group’s coal-based power plants. The projects will be executed over a period of 30 months.
Hotel and restaurant stocks like Jubilant Foodworks, Indian Hotels, EIH among others, are rising in trade. The rise comes after the union cabinet approves an increase in the limit of the emergency credit line guarantee scheme (ECLGS) from Rs 50,000 crore to Rs 5 lakh crore. This amount will be available to companies in the hotels, restaurants and tourism sector till March 31, 2023.
Natco Pharma is rising as the US Food and Drug Administration grants tentative approval to its abbreviated new drug application for trabectedin (generic of yondelis). The drug generated annual sales of $49.7 million over the past year till June in the US market.
CLSA says that all IT companies’ Q1FY23 EBIT margins were below its estimates. The brokerage is concerned about the poor cash conversion by most companies in Q1. It says that Infosys, TCS and HCL Technologies are its preferred stock picks.
#CNBCTV18Market | Moderating execution costs will guide margin expansion in FY24, Infosys, TCS & HCL Tech are our preferred stock picks, CLSA on IT sector pic.twitter.com/AiGco7yYD3
— CNBC-TV18 (@CNBCTV18Live) August 18, 2022Oil and Natural Gas Corporation signs an agreement with ExxonMobil Corp for exploration of oil and gas in the deep sea on India’s east and west coasts. The nature of the partnership remains undisclosed. However, the companies will focus on exploration projects to increase production and help reduce imports of oil in future.
Private equity firm Blackstone plans to sell up to a 13.6% stake in Sona BLW Precision Forgings in a block trade today, according to reports. The total deal value is around Rs 3,971 crore.
Riding High:
Largecap and midcap gainers today include Indian Railway Catering & Tourism Corporation Ltd. (714.15, 6.33%), Adani Power Ltd. (399.45, 4.99%) and Adani Enterprises Ltd. (3,153.65, 4.82%).
Downers:
Largecap and midcap losers today include SBI Cards and Payment Services Ltd. (957.85, -4.29%), Sona BLW Precision Forgings Ltd. (518.10, -3.90%) and Oil And Natural Gas Corporation Ltd. (135.55, -2.94%).
Crowd Puller Stocks
23 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Jindal Stainless Ltd. (130.05, 7.43%), Bajaj Electricals Ltd. (1,226.15, 6.09%) and Jindal Stainless (Hisar) Ltd. (251.30, 5.86%).
Top high volume losers on BSE were Sona BLW Precision Forgings Ltd. (518.10, -3.90%), Bombay Burmah Trading Corporation Ltd. (892.15, -3.09%) and Dr. Reddy's Laboratories Ltd. (4,225.10, -2.10%).
Bajaj Holdings & Investment Ltd. (5,531.00, 1.83%) was trading at 11.9 times of weekly average. Dhanuka Agritech Ltd. (711.00, 1.56%) and Infibeam Avenues Ltd. (15.80, 4.98%) were trading with volumes 6.7 and 6.2 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
18 stocks hit their 52-week highs,
Stocks touching their year highs included - Adani Power Ltd. (399.45, 4.99%), Adani Transmission Ltd. (3,599.55, 0.05%) and Apollo Tyres Ltd. (266.50, 2.50%).
16 stocks climbed above their 200 day SMA including India Cements Ltd. (204.00, 5.26%) and Bharat Heavy Electricals Ltd. (56.20, 4.56%). 5 stocks slipped below their 200 SMA including TTK Prestige Ltd. (895.75, -1.41%) and Grasim Industries Ltd. (1,613.75, -0.17%).
17 Aug 2022
As markets rise, many companies are lining up with IPOs to raise funds. One of the largest upcoming IPOs is EbixCash, with a fresh issue of shares up to Rs 6,000 crore. The company is a digital product and services provider in the payments, travel and financial technologies space.
The next largest IPO on the anvil, for which draft papers have been filed with SEBI, is Flipkart founder Sachin Bansal’s fintech firm Navi Technologies. This too is a fresh issue of shares of up to Rs 3,350 crore. Navi provides a gamut of financial services including loans, insurance and mutual funds.
The third largest upcoming IPO, with draft prospectus pending approval with SEBI, is of mutual fund registrar and transfer agent KFin Tech. This Rs 2,400 crore IPO is entirely an offer for sale by private equity firm General Atlantic.
Then we have Imagine Marketing (BOAT), Hemani Industries and Allied Blenders & Distillers with an issue size of Rs 2,000 crore each. The IPOs are a combination of fresh issue of shares and offers for sale by the company promoters.
BOAT is a digital-first consumer products company and one of the largest Indian digital-first brands in terms of revenue in FY21. Hemani Industries is an agrochemical and speciality chemical maker with products used in crop and wood protection, as well as veterinary, household and public health applications.
Another upcoming IPO is PayMate India, which is a fresh issue of shares and an offer for sale worth up to Rs 1,500 crore. It is a B2B payments and services provider that digitizes and automates payments in supply chains.
As the stock markets in India stabilize after the volatility in early FY23, many investors are waiting for these IPOs to hit the street.You can track all IPOs on our IPO dashboard.
17 Aug 2022
Trendlyne Analysis
Nifty 50rose close to 120 points and closed in the green for a seventh straight session. European stocks traded lower than Tuesday’s levels as UK consumer price index or CPI print topped analysts' expectations and rose 10.1% in July due to high food and energy prices.
Major Asian indices closed higher, tracking the US indices which mostly closed in the green on Tuesday. US stocks rose on the back of stronger than expected retail earnings and outlooks from Walmart and Home Depot. The Dow Jones rose 0.7% while the S&P 500 closed 0.2% higher. However, the tech-focused index, NASDAQ 100, closed in the red as investors await the release of the Federal Reserve's July meeting minutes later today. Brent crude oil futures hovered around its six-month low as Iran responds to the EU’s draft text to restore the 2015 nuclear deal, which could increase the crude oil supply by over two million barrels per day in the long run.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Energy closed higher than Tuesday’s levels. Nifty IT closed in the green, despite the NASDAQ 100 closing 0.2% lower on Tuesday.
Nifty 50closed at 17,944.25 (119, 0.7%), BSE Sensexclosed at 60,260.13 (417.9, 0.7%) while the broader Nifty 500closed at 15,379.05 (98.6, 0.6%)
Market breadth is in the green. Of the 1,904 stocks traded today, 1,121 were on the uptrend, and 729 went down.
Cholamandalam Financial Holdings, Max Healthcare Institute, GlaxoSmithKline Pharmaceuticals, and IFB Industriesare trading with higher volumesas compared to Tuesday.
L&T Technology Servicessees a long build-up in its August 25 futures series as its open interest rises 9.9% with a put-call ratio of 0.75.
Stocks like Adani Enterprises, Tata Chemicals, Tata Elxsi, Bajaj Finserv, and Adani Total Gasare in the overbought zone, according to the technical indicator relative strength index or RSI.
Lakshmi Machine Works and Devyani International hit their all-time highs of Rs 11,907 and Rs 211.8, respectively. Devyani International rises for three sessions, while Lakshmi Machine Works trades higher for six consecutive days
RateGain Travel Technologies is rising as Air India selects the company’s AirGain product to adjust prices with real-time and high-quality airfare data. The company says its product will aid Air India's competitiveness with accurate real-time pricing.
Syrma SGS Technology’s Rs 840 crore IPO gets bids for 2.3X of the available 2.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 2.7X of the available 1.4 crore shares on offer.
Brokerage CLSA maintains its ratings on Tata Steel (‘Underperform’), JSW Steel (‘Sell’), and Jindal Steel & Power (‘Outperform’). It says steel stocks are outperforming the Nifty 50 in the past month, due to declining coking coal prices.
#MarketsWithETNOW | Indian steel stocks have gained 16-25% over the past month
— ET NOW (@ETNOWlive) August 17, 2022
CLSA says Indian steel stocks have outperformed the index, due to lower coking coal prices, @Ashesha_A is here with the highlights #StockMarket#StocksToWatch#Steel#SteelStockspic.twitter.com/ME9ESpjGgLEdelweiss maintains its ‘Buy’ rating on KNR Construction with a target price of Rs 338, indicating an upside of 30%. The brokerage continues to have a positive outlook on the company’s prospects given its debt-free balance sheet, healthy order book and strong execution track record. It expects the company’s revenue to grow at a CAGR of 19% over FY22-24.
Aarti Drugsis trading with more than 29 times its weekly average trading volume. Edelweiss Financial Services, CESC, Happiest Minds Technologies, and Century Textiles & Industriesare trading at more than five times their weekly average trading volumes.
Computer Hardware, Edible Oils, and Data Processing Services industries rise by more than 3% in trade today.
Textile stocks like Trident, Welspun India and Gokaldas Exports are rising in trade as Home Depot and Walmart post strong earnings. Welspun India and Gokaldas Exports are suppliers to Walmart and most of their revenues come from exports.
#MarketsWithETNOW | Textile stocks in focus! Welspun India, Gokal Das Exports, Trident rise up to 5% in trade, @Sharad9Dubey brings us the fine-print #StockMarket#StocksToWatch#Textilespic.twitter.com/zavr1LBpKB
— ET NOW (@ETNOWlive) August 17, 2022Axis Direct maintains its ‘Buy’ rating on Endurance Technologies with a target price of Rs 1,660, indicating an upside of 17%. The brokerage remains positive on the company’s prospects given its new order wins, increasing content per vehicle, and focus on electric vehicle-related products. It expects the company’s net profit to grow at a CAGR of 37% over FY22-24.
Bharti Airtel rises as it pays four years of spectrum dues in advance, worth Rs 8,312.4 crore to the Department of Telecom. These dues are a part of the 5G spectrum acquired recently by the company.
.@airtelindia pays Rs 8,312.4 crore for #5G spectrum to government.
— BQ Prime (@bqprime) August 17, 2022
For the latest news & updates visit: https://t.co/gXeGqKQ77Ppic.twitter.com/huZU8AJOD5Media stocks like Zee Entertainment Enterprises, Saregama India, Network 18 Media & Investments and TV18 Broadcast are rising in trade. The broader sectoral index Nifty Media is also trading in the green.
NTPC is rising as reports suggest the company is approaching energy companies and infrastructure investment funds to raise funds for its clean energy platform. The company plans to move all its renewable energy assets into a special purpose vehicle and raise funds through a stake sale.
Indoco Remedies is set to acquire a 26% stake in Kanakal Wind Energy for a cash consideration of Rs 86.4 crore. The company plans to set up a solar power plant in Maharashtra's Solapur district through this acquisition.
Aarti Drugs surges in trade after the Directorate General of Trade Remedies (DGTR) recommends continuing the anti-dumping duty on ofloxacin imports from China. Aarti Drugs is a manufacturer of ofloxacin and had filed an application for anti-dumping duty earlier.
DGTR recommends continuation of anti-dumping duty on Ofloxacin imports from China, @CimGOI
— CNBC-TV18 (@CNBCTV18Live) August 17, 2022
Aarti Drugs had filed an application for anti-dumping duty on Ofloxacin imports pic.twitter.com/4VqsvAqoVgBajaj Electricals elevates Anuj Poddar to the post of Managing Director and CEO from the position of Executive Director. This comes after the company decides to separate the posts of Chairman and Managing Director. Shekhar Bajaj will continue to serve as Executive Chairman of the company.
Meridian Chem Bond buys 5.3 lakh shares (0.7% stake) in Gujarat Alkalies & Chemicals for Rs 44.5 crore in a bulk deal on Tuesday.
Techno Electric & Engineering receives orders worth Rs 1,455 crore from Rajasthan Rajya Vidyut Utpadan Nigam for FGD (flue-gas desulfurization) projects.
Promoter Abrdn Investment Management sells 1.1 crore shares (5.5% stake) in HDFC AMC in a bulk deal on Tuesday. The transaction is worth Rs 2,303.3 crore.
Riding High:
Largecap and midcap gainers today include Zee Entertainment Enterprises Ltd. (252.30, 6.10%), Bajaj Finserv Ltd. (16,840.30, 5.81%) and Adani Power Ltd. (380.45, 5.00%).
Downers:
Largecap and midcap losers today include Sona BLW Precision Forgings Ltd. (539.10, -5.48%), Endurance Technologies Ltd. (1,424.25, -2.87%) and Hindustan Zinc Ltd. (285.60, -2.59%).
Crowd Puller Stocks
30 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Aarti Drugs Ltd. (469.65, 10.99%), Happiest Minds Technologies Ltd. (1,107.60, 10.75%) and Hikal Ltd. (322.35, 9.22%).
Top high volume losers on BSE were Sona BLW Precision Forgings Ltd. (539.10, -5.48%) and Ajanta Pharma Ltd. (1,274.50, -0.16%).
Edelweiss Financial Services Ltd. (62.20, 8.46%) was trading at 12.1 times of weekly average. Latent View Analytics Ltd. (377.10, 4.65%) and CESC Ltd. (80.60, 1.96%) were trading with volumes 7.2 and 6.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
29 stocks hit their 52-week highs,
Stocks touching their year highs included - Adani Power Ltd. (380.45, 5.00%), Adani Transmission Ltd. (3,597.65, 0.45%) and Apollo Tyres Ltd. (260.00, 3.94%).
28 stocks climbed above their 200 day SMA including Aarti Drugs Ltd. (469.65, 10.99%) and Happiest Minds Technologies Ltd. (1,107.60, 10.75%). 3 stocks slipped below their 200 SMA including Endurance Technologies Ltd. (1,424.25, -2.87%) and Petronet LNG Ltd. (215.75, -0.94%).