Blog posts

30 Jun 2022

Market closes flat, Asian Paints re-appoints MD & CEO Amit Syngle

Trendlyne Analysis

Nifty 50 closed flat after gyrating between gains and losses on a volatile day of trade. European stocks traded sharply lower, taking cues from the US indices futures. Major Asian indices closed mixed, tracking the US indices, which also closed mixed on Wednesday. The tech-heavy index, NASDAQ 100, rose 0.2% while the S&P 500 closed marginally lower. Investors continue to monitor the impact of aggressive rate hikes on global economic growth. Crude oil is set for its first monthly decline this year ahead of the OPEC+ meeting to discuss the group’s supply policy.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red despite the benchmark index trading flat. Nifty FMCG and Nifty PSU Bank closed lower than Wednesday levels. Nifty Metal, which opened in the green, closed 2% lower. Nifty IT closed lower, tracking the NASDAQ 100 futures, which are trading in the red.

Nifty 50closed at 15,780.25 (-18.9, -0.1%), BSE Sensexclosed at 53,018.94 (-8.0, 0.0%) while the broader Nifty 500 closed at 13,387.55 (-30.3, -0.2%)

Market breadth is in the red. Of the 1,877 stocks traded today, 629 were gainers and 1,200 were losers.

ZF Commercial Vehicle Control Systems India, Brightcom Group, J B Chemicals & Pharmaceuticals, and Jubilant Pharmovaare trading with higher volumesas compared to Wednesday.
Energy stocks like Adani Transmission, Indian Oil Corp, and NTPC, among others are on the rise. The broader Nifty Energy index trades in the green.
Stocks like Wockhardt, Vaibhav Global, Vedanta, Chambal Fertilisers & Chemicals, and V Mart Retail are in the oversold zone according to the technical indicator relative strength index or RSI.
Zydus Lifesciences rises as it gets final approval from the US FDA lacosamide injection 200mg/20 mL single vials. The drug is to treat partial-onset seizures and primary generalised tonic-clonic seizures.
Housing sales decline 15% QoQ during the April-June period to 84,930 units across seven major cities. The fall in sales is due to the rise in property prices and mortgage rates.

Housing sales declined 15% during April-June period to 84,930 units across seven major cities compared to the previous quarter, due to rise in property prices as well as mortgage rates.#Housingsales#housingsector https://t.co/2ULQ125TXI
— Business Standard (@bsindia) June 30, 2022

Stocks like FIEM Industries, Mahindra CIE Automotive, Asahi India Glass, and Sterling Tools, among others are outperforming the auto parts and equipment industry's month change of 5.8%.
MTAR Technologies receives an export order worth $22.12 million (approximately Rs 174.6 crore) in clean energy segment. The orders will be executed from January 2023 to June 2023.
Asian Paints’ shareholders approve the re-appointment of MD & CEO Amit Syngle for a period of five years. His new tenure starts from April 1, 2023 to March 31, 2028.
Ahluwalia Contracts is rising in trade as it secures an order worth Rs 209 crore for the construction of Adani Connex Data Centres in Noida. The company’s total order inflow during FY23 now stands at Rs 713 crore.
JB Chemicals & Pharmaceuticals is rising as its board of directors approve the acquisition of four pediatric drug brands from Dr. Reddy's Laboratories. JB Pharma will pay Rs 98 crore for these four pediatric drug brands.
TVS Motors is in talks with TPG Capital and KKR & Co for an investment of at least Rs 236.8 crore, according to reports. The investment is to fund the company's expansion of its electric vehicle business.
Hatsun Agro Products is trading with more than 20 times its weekly average trading volume. Ratnamani Metals & Tubes, Bajaj Holdings & Investment, Multi Commodity Exchange of India, and Zydus Wellness are trading at more than four times their weekly average trading volumes.
Axis Securities initiates coverage on Coal India with a ‘Buy’ rating with a target price of Rs 225, indicating an upside of 21%. The brokerage is positive on the company’s prospects due to its stable EBITDA margins, high coal prices, and robust cash flows. It expects the company’s revenue to grow at a 7.2% CAGR over FY22-24.
Dr. Reddy’s Laboratories rises after it settles patent litigation with Indivior Inc and Aquestive Therapeutics on the medication of treating opioid addiction. The US Court on Wednesday dismissed all claims and counter-claims pending with the case. Dr. Reddy's will receive a settlement from Indivior and Aquestive worth $72 million by March 31, 2024.
Wonderla Holidays rises after announcing the signing of a lease agreement with the Government of Odisha to lease around 50 acres of land to develop an amusement park in Bhubaneswar.
Realty stocks like Phoenix Mills, Indiabulls Real Estate, Godrej Properties, DLF, and Brigade Enterprises, among others, are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.
Automotive safety and float glass maker Asahi India is rising in trade after the Department of Commerce recommends imposing an anti-dumping duty on imports of clear float glass, according to reports.
Indian rupee rises 13 paise to Rs 78.90 against the dollar in early trade today.
Sundram Fasteners to invest Rs 750 crore, over the next two to five years, to create and increase the capacity of defense and wind energy businesses, and develop components in emerging technology segments, according to reports.
Multi Commodity Exchange of India is rising in trade as SEBI (Securities Exchange Board of India) allows foreign portfolio investors (FPIs) to trade in exchange-traded commodity derivatives, according to reports. The FPIs will be allowed to trade in all non-agricultural commodity derivatives and select non-agricultural benchmark indices. Initially, they will be allowed only in cash-settled contracts.
Sterlite Technologies signs an agreement to acquire the balance 25% stake in Jiangsu Sterlite Tongguang Fiber Co (JSTFCL). The cost of acquisition is Rs 65 crore. Post-acquisition JSTFCL will become a wholly-owned subsidiary of Sterlite Technologies.
Indian Oil Corp approves expansion of Digboi refinery in Assam to 1 million tonne per annum from 0.65 million tonner per annum to improve the profitability of the refinery. The cost of this project is close to Rs 740.2 crore. The project is likely to be commissioned by October 2025.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (2,473.65, 5.36%), Shriram Transport Finance Company Ltd. (1,281.35, 4.68%) and REC Ltd. (123.75, 3.12%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (53.85, -6.02%), One97 Communications Ltd. (675.70, -4.24%) and Bajaj Auto Ltd. (3,706.60, -4.16%).

Movers and Shakers

21 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Infibeam Avenues Ltd. (14.10, 7.22%), Gujarat Pipavav Port Ltd. (77.10, 6.34%) and Aptus Value Housing Finance India Ltd. (281.80, 6.04%).

Top high volume losers on BSE were Borosil Renewables Ltd. (601.70, -7.91%), CSB Bank Ltd. (193.10, -3.23%) and Hatsun Agro Products Ltd. (881.15, -2.32%).

Ratnamani Metals & Tubes Ltd. (1,654.40, -1.55%) was trading at 10.0 times of weekly average. Zydus Wellness Ltd. (1,636.85, 3.91%) and Multi Commodity Exchange of India Ltd. (1,307.95, 2.63%) were trading with volumes 9.4 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52-week highs, while 9 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Dart Express Ltd. (7,802.15, -0.00%), TVS Motor Company Ltd. (841.95, 1.03%) and Ratnamani Metals & Tubes Ltd. (1,654.40, -1.55%).

Stocks making new 52 weeks lows included - Bajaj Finserv Ltd. (10,931.75, -1.60%) and Biocon Ltd. (308.40, -0.58%).

9 stocks climbed above their 200 day SMA including SKF India Ltd. (3,637.80, 4.72%) and Shriram Transport Finance Company Ltd. (1,281.35, 4.68%). 13 stocks slipped below their 200 SMA including Gujarat State Fertilizer & Chemicals Ltd. (132.00, -4.59%) and Bank of Baroda (97.40, -3.71%).

The Baseline

30 Jun 2022

Chart of the Week: HDFC Bank’s credit card business gains ground over peers

With credit demand bouncing back in India, there is hope that consumer sentiment will turn positive. There is fierce competition among players as people have resumed eating out, shopping and traveling. This has led credit card spends to reach Rs 1.14 lakh crore at the end of May 2022 as increased incentives from banks boosted customer spends.

ICICI Bank was slightly ahead of SBI Cards in transaction market share at the end of May 2022. HDFC Bank maintained a steady lead over everyone else, with a 27.7% market share in the same month. HDFC Bank processed a total of Rs 31.75 thousand crore, up 113% YoY and 8% MoM. ICICI Bank’s total transaction on credit cards also rose over the past few months. At the end of January, the bank had processed Rs 18.8 thousand crore, and this rose 16% to Rs 21.9 thousand crore at the end of May 2022. Despite the rise in transactions, ICICI Bank saw a decrease in market share from 21.4% to 19.2% in the same time period.

While HDFC Bank and ICICI Bank are ahead in transactions, their market share in "credit cards issued" is down,Axis Bank has gained ground here in the past few months. At the end of December 2021, HDFC Bank and ICICI Bank had 162.7 lakh (22.9% market share) and 127.7 lakh credit cards issued (19.27% market share), respectively. This fell to 149.1 lakh (22.4% market share) and 107.2 lakh (17.35% market share), respectively at the end of May 2022.

The rise in transactions for HDFC Bank and ICICI Bank despite the market share decline indicates the differences in customer profile between banks. While banks issue as many cards as they can, eventually the real win is about having customers that make the most number of transactions. Right now HDFC Bank gets the cream, in terms of transaction value.

Trendlyne Marketwatch

29 Jun 2022, 03:50PM

Market closes lower, Tata Motors partners with Japanese chipmaker Renesas Electronics

Trendlyne Analysis

Nifty 50 closed in the red with the volatility index, Nifty VIX rising above 22%. Indian indices snapped their four-day winning streak amid weak global cues. European indices followed the global trend and traded lower than Tuesday’s levels. Major Asian indices closed lower, tracking the US indices, which fell sharply on Tuesday. US stocks declined after the US consumer confidence index fell for second straight month and to the lowest level since February 2021. The tech-heavy NASDAQ 100 fell over 3% while the S&P 500 closed 2% lower. Crude oil eased after rising for three consecutive days. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth remain the key levers affecting the crude oil price.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty FMCGand Nifty Bank closed lower than Tuesday’s levels. Nifty Media, which opened in the red, closed flat. Nifty IT closed in the red, tracking the NASDAQ 100, which fell over 3% on Tuesday.

Nifty 50closed at 15,799.10 (-51.1, -0.3%), BSE Sensexclosed at 53,026.97 (-150.5, -0.3%) while the broader Nifty 500closed at 13,417.85 (-46.4, -0.3%)

Market breadth is in the red. Of the 1,872 stocks traded today, 746 were on the uptrend, and 1,070 went down.

Poly Medicure, Sundaram Finance, NHPC, and TCNS Clothing Co. are trading with higher volumes as compared to Tuesday.
Bharti Airtel sees a long build-up in its Jun 30 future series as its open interest rises 4.7% with put to call ratio of 0.68.
Ultratech Cement rises in a weak market after Nirmal Bang maintains a ‘Buy’ on the stock with no change in the target price of Rs 6,772. However, the brokerage expects the company's earnings in H1FY22 to face pressure because of high pet coke prices and weak realizations.
GAIL (India) rises as the public enterprise selection board picks Sandeep Kumar Gupta as the new Chairman of the company. Sandeep Kumar Gupta is currently the Director of Finance at Indian Oil Corp and will replace Manoj Jain, Chairman of GAIL who is scheduled to retire on August 31.
NMDC falls after shareholders and creditors approve the demerger of Nagarnar Steel Plant as said by the company’s CMD, Sumit Deb. NMDC is building a 3 million tonne per annum steel plant at Nagarnar at a cost of Rs 23,140 crore.
Energy stocks like Reliance Industries, Adani Transmission, Adani Green Energy, Oil and Natural Gas Corp, and Power Grid Corp of India, among others, are rising in trade. The broader sectoral index Nifty Energy is also trading in the green.
Bernstein maintains a 'Buy' call on Reliance Industries and raises target price to Rs 3,360 from Rs 2,830, according to reports. The brokerage says that the tariff hikes may drive strong Jio results and that e-commerce acceleration across categories will lift retail segment.
Orient Bell rises in intra-day trading after Crisil upgrades its rating on the bank facilities for the company to Crisil A/Stable/Crisil A1 from Crisil A-/Stable/Crisil A2+. The rating agency believes the company has a comfortable financial risk profile. It also expects revenue to grow by 10-12% CAGR over the medium term given the demand from the real estate sector remains healthy.
J B Chemicals & Pharmaceuticals is trading with more than seven times its weekly average trading volume. MTAR Technologies, Jamna Auto Industries, Alembic Pharmaceuticals, and Au Small Finance Bank are trading at more than four times their weekly average trading volumes.
SIS's board approves buyback of up to Rs 80 crore of fully paid-up equity shares of the company having a face value of Rs 5 per share.
Tata Motors is rising in trade after it announces a strategic partnership with the Japanese chipmaker Renesas Electronics Corp. The companies will collaborate to develop next-generation automotive electronics, to accelerate the growth of electric and connected vehicles.
From Reuters | Tata Motors partners with Japan's Renesas to develop chip solutions pic.twitter.com/XRPllwz56G
— CNBC-TV18 (@CNBCTV18Live) June 29, 2022
The Maharashtra government signs a memorandum of understanding withAdani Green Energyto generate 11,000 MW of green power over the next five years, according to reports. This is expected to entail an investment of Rs 60,000 crore over the next five years.
IDBI Capital maintains its ‘Buy’ rating on Mahindra & Mahindra with a target price of Rs 1,643, indicating an upside of 52%. The brokerage believes the newly launched ‘Scorpio N’ will boost volume growth for the company going forward. It expects the company’s sales volume growth to continue on competitive pricing and new product launches. The brokerage estimates the company’s revenue to grow at a 22.3% CAGR over FY22-24
AU Small Finance Bank falls more than 5% in trade today after Credit Suisse initiates coverage on the stock with an ‘underperform’ rating, according to reports. The brokerage set a target price of Rs 510 for the stock. It expects slippages to remain high from the restructured loan book and credit costs to rise in the SME segment.
Bank stocks like HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank, Axis Bank, among others, are falling in trade. The broader sectoral index Nifty Bank is also trading in the red.
Biocon hits a 52-week low of Rs 309 after the Central Bureau of Investigation (CBI) challenged the local court to gain custody of the people involved in the Central Drugs Standard Control Organisation bribery case. CBI arrested L Praveen Kumar of Biocon Biologics, an Associate Vice President, and joint drug controller Eswara Reddy, for demanding a bribe of Rs 9 lakh to waive off Phase-3 trial of ‘Insulin Apart Injection’.
Godawari Power & Ispat acquires a 78.96% stake in Alok Ferro Alloys for a total cash consideration of Rs 127 crore. The company acquires 37.8 lakh shares of Alok Ferro Alloys at a fair market value of Rs 336 per share.
Indian rupee falls to a new record low by 11 paise (0.14%) to Rs 78.88 against the dollar in early trade today.
Jammu and Kashmir Bank is rising after approving the raising of equity share capital of Rs 500 crore in one or more tranches. The plans to raise capital by way of rights issue or preferential allotment or follow-on public offer or any other approved method.
Route Mobile’s board approves a buyback of 7.05 lakh equity shares worth Rs 120 crore through the open market route. The buyback comprises 1.12% of the total paid-up share capital at a price of Rs 1,700 per share. The promoters and promoter group entities will not participate in the buyback.
Reliance Industries’ subsidiary Reliance Jio Infocomm’s board approves the appointment of Akash Ambani as Chairman as Mukesh Ambani steps down, according to reports. Akash Ambani was the Chief Strategy Officer at Reliance Jio before taking over as Chairman.