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The Baseline
29 Mar 2022
Chart of the Week: Airlines ready to soar, but will high crude prices slow takeoff?

It has been a turbulent couple of years for the Indian aviation sector. And despite revenge travel, the recovery hasn't been a quick one. Airlines are yet to hit pre-pandemic levels on the number of passengers ferried, with the load still lower than FY21.

Pre-Covid, average daily fliers were 4 lakh passengers. The latest data suggests that daily traffic reached 3.6 lakh fliers as of March 26, 2022. Although the average number of travellers surged to 137 from 126 in March 2022, the third wave dampened this trend, the Director General of Civil Aviation’s monthly data shows.

In February 2022,Interglobe Aviation (IndiGo), Air India, Go First (formerly GoAir), Spicejet, and Vistara saw a substantial rise in passengers carried. However, IndiGo’s market share fell by 411 bps MoM, to 51% as competitors Air India, SpiceJet and Vistara ate into its market share. Vistara in particular has seen an increase in market share by 226 bps MoM to 9.73%.

However, an increase in the price of aviation turbine fuel (ATF) might pose a problem for all airlines. Unlike other sectors, where price hikes are taken to offset the rise in input costs, aviation companies cannot increase fares indiscriminately. According to a report by ICICI Securities, revenue per available seat-kilometre (RASK) in Q3FY22 was Rs 3.51, which is already higher than Rs 2.70 in FY11, when fuel prices were $100-$110 per barrel. So the option of increasing fares is very limited.

With the government re-starting international flights from March 27, 2022, demand is set to go up, causing a surge in the number of passengers carried.Reports suggest that since daily traffic increased in March 2022, DGCA approved 25,309 departures every week starting the last week of March. If the demand continues to jump, airlines might be able to mitigate the rise in ATF cost and come out of the red in FY23. 

Trendlyne Marketwatch
Trendlyne Marketwatch
29 Mar 2022
Market closes higher, ICICI Securities maintains a 'BUY' rating on Bharti Airtel

Trendlyne Analysis

Nifty 50 extended its gains throughout the day to close higher. Asian stocks trade in the green, following the US indices, which closed higher yesterday led by the tech-focused NASDAQ 100. Crude oil extended its losses from yesterday on fears of a drop in demand in China due to the lockdown in Shanghai to curb a surge in Covid-19 cases. European stocks trade in the green, taking cues from the Asian markets and Wall Street. The pan-European index, STOXX 600 extends gains to a third consecutive session despite limited hopes of a breakthrough in Russia-Ukraine peace talks.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green but underperformed the benchmark index. Nifty Metal inched higher and closed in the green for the ninth consecutive session. Nifty IT closed higher, tracking the tech-heavy NASDAQ 100 closing 1.3% higher on Monday.

Nifty 50 closed at 17,325.30 (103.3, 0.6%), BSE Sensex closed at 57,943.65 (350.2, 0.6%) while the broader Nifty 500 closed at 14,761.90 (86.1, 0.6%)

Market breadth is in the red. Of the 1,892 stocks traded today, 754 were on the uptick, and 1,113 were down.

  • Procter & Gamble Health, KEI Industries, Sudarshan Chemical Industries, and Blue Dart Express are trading with higher volumes as compared to Monday.

  • Hero MotoCorp is falling as reports suggest the Income Tax Department found more than Rs 1,000 crore bogus expenses and over Rs 100 crore cash transactions for a farmhouse in Delhi.

  • Veranda Learnings Solutions' Rs 200-crore IPO gets bids for 74% of the available 1.2 crore shares on offer on the first day of bidding. Retail investors quota gets overbid by 4.2X of the available 15.4 lakh shares. The offer comprises entirely of a fresh issue of Rs 200 crore.

  • Uma Exports Rs 60-crore IPO gets oversubscribed by 4.2X of the available 92.3 lakh shares on offer on the second day of bidding. Retail investors quota gets over bid by 5.6X of the available 63.6 lakh shares. The offer comprises entirely of a fresh issue of Rs 60 crore.

  • Fertilizer stocks like Madras Fertilizers, Rashtriya Chemicals & Fertilizers, National Fertilizers, and Gujarat State Fertilizer & Chemicals among others are rising in trade. The broader sector of fertilizer is also trading in the green.

  • Axis Securities maintains a ‘Buy’ rating on Healthcare Global Enterprises with a target price of Rs 330, indicating an upside of 21%. The brokerage has a positive outlook on the company due to its rising average occupancy rates, increasing average revenue per occupied bed (ARPOB), and its strong network in the oncology industry with high-end works and reasonable prices.

  • Rashtriya Chemicals & Fertilizers is trading with more than eight times its weekly average trading volume. Vaibhav Global, AIA Engineering, National Fertilizers, and Rallis India are trading at more than three times their weekly average trading volumes.

  • Media stocks like Inox Leisure, Network 18 Media & Investments, TV18 Broadcast, and PVR among others are falling in trade. The broader sectoral index Nifty Media is also trading in the red.

  • G R Infraprojects wins bid for four laning existing two lane stretches from Govindpur to Rajura and Bamni to the Maharashtra-Telangana border. The company is the lowest bidder for the project at Rs 1,744 crore

  • ICICI Securities maintains a 'BUY' rating on Bharti Airtel with a target price upside of 17.3%. The brokerage is positive on the telecom major as it believes that tariff hike flow through will boost Bharti's EBITDA by 20% in FY23. Additionally, emerging products like Data Centre, IoT, Security, CPaaS, and NaaS hold a future growth potential of 25% CAGR.

  • Power Grid Corporation of India's board approves investment in a total of five projects worth Rs 821.3 crore. Major investment projects include the strengthening of the transmission system for Srinagar-Leh sector at an estimated cost of Rs 288.7 crore.

  • Aurobindo Pharma acquires the domestic formulation business of Veritaz Healthcare on a slump sale basis at a consideration of Rs 171 crore on a debt-free cash-free basis. The company expects the acquisition to act as a launchpad for marketing biosimilar and other products in India.

  • Veranda Learnings raises Rs 46.75 crore from investors by selling 34.12 lakh shares at Rs 137 per share to anchor investors, including AG Dynamics Fund, Resonance Opportunities Fund, and Next Orbit Ventures.

  • Securities and Exchange Board of India (SEBI) instructs Ruchi Soya to provide an option to FPO (follow-on public offering) investors to withdraw their bids due to circulation of unsolicited text messages advertising the issue. The window for withdrawal is available between March 28 - March 30. Ruchi Soya’s Rs 4,300 crore FPO was oversubscribed 3.6X on the final day of bidding.

Riding High:

Largecap and midcap gainers today include Ruchi Soya Industries Ltd. (943.05, 15.81%), Adani Power Ltd. (173.55, 13.99%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,696.10, 9.35%).

Downers:

Largecap and midcap losers today include Hero MotoCorp Ltd. (2,210.65, -7.04%), Tata Elxsi Ltd. (8,552.85, -5.34%) and IDBI Bank Ltd. (42.75, -3.39%).

Volume Rockets

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

Top high volume gainers on BSE included Ruchi Soya Industries Ltd. (943.05, 15.81%), Adani Power Ltd. (173.55, 13.99%) and Rashtriya Chemicals & Fertilizers Ltd. (91.70, 13.00%).

Top high volume losers on BSE were Hero MotoCorp Ltd. (2,210.65, -7.04%), Thyrocare Technologies Ltd. (750.50, -3.32%) and Godrej Industries Ltd. (453.15, -1.79%).

Swan Energy Ltd. (193.25, 8.23%) was trading at 19.4 times of weekly average. NHPC Ltd. (27.35, -0.18%) and Vaibhav Global Ltd. (385.00, 6.19%) were trading with volumes 10.7 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks hit their 52-week highs, while 16 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (173.55, 13.99%), Adani Transmission Ltd. (2,461.55, 0.92%) and Cummins India Ltd. (1,122.65, 1.19%).

Stocks making new 52 weeks lows included - 3M India Ltd. (19,680.35, 0.81%) and Bajaj Consumer Care Ltd. (150.20, -1.86%).

17 stocks climbed above their 200 day SMA including GlaxoSmithKline Pharmaceuticals Ltd. (1,696.10, 9.35%) and TeamLease Services Ltd. (4,264.20, 6.64%). 6 stocks slipped below their 200 SMA including IDBI Bank Ltd. (42.75, -3.39%) and Anupam Rasayan India Ltd. (830.40, -2.39%).

Trendlyne Marketwatch
Trendlyne Marketwatch
28 Mar 2022
Market closes higher, Wipro approves second interim dividend of Rs 5

Trendlyne Analysis

Nifty 50 settled in the green on a volatile day of trade. Most Asian indices closed lower as China imposed Covid-19 lockdown in Shanghai and ordered all firms in the area to suspend manufacturing or have people work remotely in a two-stage lockdown over nine days. This led to a fall in crude oil prices expecting weaker demand due to the lockdown. Investors continue to keep an eye on the Russia-Ukraine peace talks scheduled later this week as the Ukrainian President said that Ukraine was prepared to discuss adopting a neutral status as part of the deal.

Nifty Smallcap 100, which opened in the green, lost its gains to close lower than Friday’s level. Nifty Metal, which has gained over 7% last week, closed higher. Nifty Media closed in the green, extending its gains from last week. Nifty IT closed in the red, taking cues from the tech-heavy NASDAQ 100 futures, which is trading lower.

Nifty 50 closed at 17,222.00 (69, 0.4%), BSE Sensex closed at 57,593.49 (231.3, 0.4%) while the broader Nifty 500 closed at 14,675.85 (24.2, 0.2%)

Market breadth is highly negative. Of the 1,913 stocks traded today, 528 showed gains, and 1,359 showed losses.

  • Cholamandalam Financial Holdings, Gland Pharma, TeamLease Services, and Vakrangee are trading with higher volumes as compared to Friday.

  • GAIL surges in trade as its board will mull a buyback of equity shares in its meeting to be held on Thursday.

  • Sharekhan maintains a ‘BUY’ rating on Laurus Labs with a target price of Rs 735, indicating an upside of 24.6%. Reports suggest that the brokerage has a positive outlook on the company as it is strengthening its presence in the biologics segment. The brokerage expects the active pharmaceutical ingredient (API) revenue to normalize in Q1FY23.

  • Motilal Oswal maintains a ‘Buy’ rating on State Bank of India and reduces the target price from Rs 725 to Rs 675, indicating an upside of 39%. The brokerage lowers the target price on account of the rising rate environment lowering treasury gains. The brokerage remains bullish on the company’s revival in loan growth, robust asset quality trends, and controlled funding costs.

  • Uma Exports Rs 60-crore IPO gets oversubscribed by 2.14X of the available 92.3 lakh shares on offer on the first day of bidding. Retail investors quota gets over bid by 2.9X of the available 63.6 lakh shares. The offer comprises entirely of a fresh issue of Rs 60 crore.

  • G R lnfraprojects wins bid to construct four lane greenfield expressway from Delhi to Vadodara. The company is the lowest bidder for the project at Rs 1,386 crore.

  • Gujarat Alkalies & Chemicals is trading with more than five times its weekly average trading volume. Aster DM Healthcare, Inox Leisure, EIH, and PVR are trading at more than three times their weekly average trading volumes.

  • DLF is set to invest Rs 2,000 crore in construction of two new shopping malls in Gurgaon and Goa, according to a news report. The realty major is bullish on the revival of organized retail sector in India post the waning of third Covid wave.

  • Wipro approves second interim dividend payment of Rs 5 per equity share for FY22. Total payout amounts to Rs 2,000 crore. The record date is April 6, 2022.

  • IndiaMART InterMESH announces acquisition of a 51% stake in software-as-a-service (SAAS) firm Livekeeping for Rs 45.98 crore in an all-cash deal. The company expects the investment to aid it in achieving its long-term objective of offering various SAAS-based solutions for businesses.

  • Aster DM Healthcare is rising as it signs a memorandum of understanding (MOU) with the government of Tamil Nadu on Saturday in Dubai, UAE. With the signing of this MOU, the company intends to invest up to Rs 500 crore into developing hospitals, pharmacies, and laboratories in Tamil Nadu.

  • Emami announces acquisition of the Dermicool brand from Reckitt for a total consideration of Rs 432 crore. Dermicool is one of the leading brands in the prickly heat powder and cool talcum category. The acquisition will be funded through internal accruals and is subject to customary closing conditions.

  • Multiplex chains PVRand Inox Leisure are set to merge, creating India’s largest film exhibition entity with a network of more than 1,500 screens. According to the merger terms, shareholders holding 10 shares of Inox will get 3 shares of PVR in exchange. The combined entity will add nearly 180-200 screens every year from hereon.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (9,035.50, 7.08%), Adani Power Ltd. (152.25, 6.32%) and Adani Total Gas Ltd. (2,141.20, 4.21%).

Downers:

Largecap and midcap losers today include Ruchi Soya Industries Ltd. (814.30, -6.14%), Endurance Technologies Ltd. (1,123.80, -5.50%) and Container Corporation of India Ltd. (659.95, -4.33%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Supreme Petrochem Ltd. (1,012.60, 12.25%), Lemon Tree Hotels Ltd. (68.25, 12.07%) and Inox Leisure Ltd. (522.85, 11.32%).

Top high volume losers on BSE were Endurance Technologies Ltd. (1,123.80, -5.50%), Brightcom Group Ltd. (85.80, -4.98%) and Tata Teleservices (Maharashtra) Ltd. (159.20, -4.98%).

Aster DM Healthcare Ltd. (200.00, 10.53%) was trading at 12.5 times of weekly average. Gujarat Alkalies & Chemicals Ltd. (896.85, 10.79%) and JK Tyre & Industries Ltd. (116.15, 6.12%) were trading with volumes of 6.8 and 5.9 times the weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows, and moving averages

20 stocks overperformed with 52-week highs, while 17 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (2,439.00, -0.40%), Cummins India Ltd. (1,109.40, 2.12%) and Delta Corp Ltd. (319.85, -0.09%).

Stocks making new 52 weeks lows included - Bank of Maharashtra (17.75, 1.72%) and Castrol India Ltd. (100.30, -2.53%).

11 stocks climbed above their 200 day SMA including Aster DM Healthcare Ltd. (200.00, 10.53%) and Sunteck Realty Ltd. (449.65, 7.43%). 16 stocks slipped below their 200 SMA including Rajesh Exports Ltd. (661.50, -3.40%) and Alok Industries Ltd. (24.75, -3.32%).

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The Baseline
28 Mar 2022
Five analyst stock picks this week

  1. Ajanta Pharma(AJP): Motilal Oswal maintains a ‘Buy’ rating on this pharmaceutical company but cuts its target price to Rs 2,500 from Rs 2,780, indicating an upside of 32%. The brokerage reduced the target price due to the lower pace of ANDA (abbreviated new drug application) filings and approvals in the US market, which may hinder growth in the medium term. However, its compliance track record remains sound and ongoing product development implies a promising outlook for the US generics segment.

The brokerage remains bullish on Ajanta’s branded generic segment and believes the company is on track to outperform the industry. “AJP has remained a focused player in the branded generics business in Asia and Africa, with 40 product registrations over the past 12 months”, say analysts at Motilal Oswal. The company delivered 53% and 2% YoY sales growth in Africa and Asia respectively over 9MFY22 on the back of 20-22 product launches and market share gain in existing products. It already has a portfolio of 200 products in the Asia and Africa markets. The brokerage expects Ajanta Pharma to deliver a 16% profit CAGR over FY22-24.

  1. Bharat Petroleum Corporation(BPCL): HDFC Securities upgrades its rating to ‘Buy’ for this oil marketing company with a target price of Rs 420. This indicates an upside of 16.6%. The brokerage upgraded the call as “the stock has corrected 30% from its peak over the last six months, owing to pressure on auto-fuel marketing margins and an increase in LPG under-recoveries,” say analysts Katkar, Ghuge, Chokshi and Akshay Mane. A combination of a sharp surge in crude oil price and pausing of revision in retail auto fuel and LPG prices resulted in the contraction of auto fuel marketing margins and an increase in LPG under-recoveries for the OMCs. Additionally, the government announced an LPG subsidy of only Rs 4,000 crore in the recent budget which the brokerage expects to be revised. The brokerage is positive on the stock on improvement in refining margins and resumption of daily auto fuel price changes. Retail prices may be raised given the increased crude oil prices, which will further lighten the LPG recovery burden.

  2. Reliance Industries (RIL): Prabhudas Lilladher reiterates its ‘Buy’ call on this oil and gas to retail conglomerate and raises its target price to Rs 3,045, indicating an upside of 17.3%. “Low product inventory and strong demand have pushed oil product spreads, which will benefit complex refiners like RIL,” says analyst Avishek Datta. Additionally, domestic gas prices are set for a sharp upward move in the backdrop of a multi-fold increase in international prices. Spot LNG prices are also on an upswing led by higher demand in Europe. Amid geopolitical tensions, gas prices are likely to remain at elevated levels. Datta adds, “We expect RIL’s telecom and retail segment performance to remain strong on the back of flow through of tariff hikes and opening of stores.” The brokerage remains positive on the company as it exhibits strengths across its business verticals. 

  3. Can Fin Homes: CD Equisearch maintains a ‘Buy’ on this housing finance company and increases its target price to Rs 754 from Rs 665, indicating an upside of 25.4%. The loan book of the company saw robust growth of 19.5% YoY in Q3FY22 to Rs 25,091 crore. In terms of asset quality, Gross NPA and Net NPA ratios stood at 0.71% and 0.39%, respectively, showing sequential improvement over Q2FY22 ratios of 0.78% and 0.47% respectively. The brokerage states, “Established focus on catering to affordable segments and small ticket size in its stronghold southern market, has enabled the company to penetrate deeper in tier-2 and tier-3 cities.” Accordingly, the brokerage expects the company’s loan book to grow by 20% in the current fiscal year. The brokerage adds, “With a capital adequacy ratio of 24.2% Can Fin’s balance sheet remains well capitalized to support this growth.” CD Equisearch believes penetration in remote areas of the country would act as a catalyst for business growth.

  4. G R Infraprojects (GRIL): Axis Securities initiates coverage on this EPC infrastructure company with a ‘Buy’ rating and a target price of Rs 1,775, indicating an upside of 22.9%. As the construction sector is witnessing long-term structural changes on account of the government’s push towards infrastructure development, many opportunities are emerging in the construction space such as the development of airports, metros, and railways, among others. The brokerage believes that the company is well placed to capitalize on opportunities due to its diversified order book, healthy bidding pipeline, established track record, and healthy financial position. As of December 2021, the company’s order book stood at Rs 14,599 crore (2x of FY21 revenue), comprising road projects as well as metro projects. “GRIL is one of the leading EPC (engineering, procurement, and construction) contractors in India having a demonstrated project execution experience of more than two decades,” say analysts at Axis Direct. Furthermore, the brokerage expects the company’s healthy capital structure will enable it to efficiently capture emerging opportunities moving forward.

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

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The Baseline
25 Mar 2022
Five Interesting Stocks Today
  • Cipla: This pharmaceutical company’s stock rose over 10% in the past two weeks after it received approval from Central Drugs Standard Control Organization (CDSCO) to conduct local trials on the anti-Covid-19 pill Paxlovid. Cipla is the third company that got such approval by CDSCO to allow generic companies to make a version of Paxlovid. Paxlovid is Pfizer's new antiviral treatment for COVID-19 that reduces the risk of hospitalization and death by 89% for high-risk groups when taken early in the course of the infection.

Pfizer expects to generate US$20 billion in revenue this year from Paxlovid which is currently priced at $530 for a five-day course. Pfizer entered into a voluntary licensing agreement with the Medicines Patent Pool, enabling generic companies to make cheaper copies to supply 95 low and middle-income countries. However, with the Covid -19 pandemic receding, Cipla might not be able to get substantial revenues from this drug.

Cipla has a strong product pipeline in the US to combat the prevailing pricing pressures it’s facing. In Q3FY22, Cipla received USFDA approval for the usage of lanreotide injection, which has a US market size of $867 million. The company also plans to launch the generic version of Revlimid (lenalidomide) in the US. This is the second Indian company to do this - Natco Pharma on March 7 launched the first generic version of Revlimid, which has a global market size of over $12 billion. Brokerages like Axis Securities and HDFC Securities are positive on this company on the back of its market-beating growth in generic franchises of India and South Africa.

  • CreditAccess Grameen: This microfinance company’s stock rose over 17% in the past two weeks after RBI removed the interest rate ceiling on loans offered by non-banking financial company microfinance institutions (NBFC-MFIs). The RBI also raised the annual household income to Rs 3 lakhs for a collateral-free loan to be classified as microloan. These changes will allow the lender to undertake risk-based pricing rather than offering fixed-rate loans, and expand further into new markets. The company offers one of the lowest lending rates among peers, enabling it to pass on the incremental cost of funds (CoF) to its customers and maintain loan spreads.

In Q3FY22, the company’s revenue rose 27% YoY to Rs 689.7 crore. It reported a profit of Rs 119.8 crore in Q3FY22 compared to a loss of Rs 77.3 crore in Q3FY21. Net interest income (NII) grew by 44% YoY to Rs 415 crore, as its interest income grew by 27% YoY to Rs 654 crore. The improvement in margins was due to increasing disbursements and improving collection efficiency, during Q3FY22 the collection efficiency of the lender stood at 94.5%.

According to analysts from Axis Direct, the company is well-positioned to benefit from the new regulations due to its deep rural presence, expanding branch network, and improving customer traction. The company’s rural penetration and improving collection efficiency are expected to drive further growth of its gross loan portfolio.

  • Indian Hotels Company: This hospitality chain said that its hotel bookings for the March-May period this year surpassed the levels for the same period in 2019. The recovery in hotel bookings was led by strong domestic demand for leisure travel.

In Q3FY22, the company’s revenue grew 84.5% YoY to Rs 1,133.9 crore and reported a profit of Rs 76 crore, its first in six quarters. The recovery was led by demand and higher pricing as the average room rate (ARR) for leisure travel grew by 46.6% QoQ to Rs 16,446 and for non-leisure travel grew by 32.5% QoQ to Rs 7,547. The occupancy rate in its domestic hotels, such as Taj, Vivanta, The Gateway, among others, in Q3FY22 was 94% of Q3FY20. The company’s revenue per available room (RevPAR) reached 89% (Rs 6,429) of the pre-covid RevPAR of Rs 7,224, only Goa’s and Chennai’s RevPAR were higher than pre-covid levels during the same period.

The company is all set to launch its qualified institutional placement (QIP) issue of Rs 2,000 crore. Earlier in October 2021, the company announced plans to raise up to Rs 4,000 crore equity funds, through rights issues and QIP. The capital raised from these issues will be used to reduce debt and fund the company’s expansion plans to increase market share as the economy recovers from the effects of Covid-19. The company plans to expand rapidly by opening more than one hotel a month in CY2022, having signed on 17 new hotels for the year and with an order pipeline of over 60 hotels. It has a portfolio of 232 hotels in 11 countries and over 100 locations.

  • Jindal Steel & Power (JSPL): This metal stock is rising for the last three consecutive sessions after it  prepaid a $357 million loan of its Mauritius subsidiary. This prepayment clears off almost the entire debt of its subsidiary. Post this payment, JSPL’s net debt now stands at $130 million compared to $1.8 billion in FY19.

Brokerage Motilal Oswal upgraded the stock’s target price by 18% to Rs 605 as it bags exports orders, especially from Europe. Reports suggest that the management also plans on increasing exports by capturing the supply gap in European markets to meet the rising cost of raw materials. For now, JSPL is secured in its coking coal supply. At its 6 million tonnes furnace capacity, it requires 4 million tonnes of coking coal which can be sourced from Mozambique and Australia. The brokerage also expects a steady demand flow for the company, even at current price levels. However, demand may slightly waiver due to record high steel prices.

Analysts at Motilal Oswal believe that strong volume growth, saving up on raw material costs, and an increase in capex plans will drive EBITDA growth by 7-35% for FY 23-24. Trendlyne’s Forecaster expects revenue to go up by 22% in FY22 and EPS to rise by 31.4% in FY22. The company recently declared an interim dividend on March 11, 2022.

  • Nestle: This FMCG stock fell 1.3% on Wednesday on the Indian bourses. As Russia continues to wage war with Ukraine and Nestle’s global business is feeling the heat, Nestle India has its own problems to face.

Brokerages Motilal Oswal, Nirmal Bang, and Dolat Capital are not very positive on the stock. Although they have upgraded their target price for the stock by nearly 5.6% on average, they maintain a ‘Neutral’ stance. Motilal Oswal thinks that since Nestle’s ad-to-spends ratio is declining it will affect its EBITDA margins. As a percentage of net sales, it fell 60 bps YoY to 5.5%. With pressures rising on gross margins because of the rise in raw material costs, EBITDA margins are likely to take a hit. Nirmal Bang and Dolat Capital are of the same opinion. According to a report from IDBI Capital, Nestle’s price hikes were only 1-2% compared to 15% taken by Britannia. Analysts believe that inflationary pressures might hit Nestle sooner, if not later.

Even with the downsides, analysts expect with an increase in the number of product launches and lockdown restrictions easing, revenues are likely to go up by 11% in FY23.

Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls or new developments. These are not buy recommendations.

Trendlyne Marketwatch
Trendlyne Marketwatch
25 Mar 2022
Market closes lower, Exide Industries starts production at its new battery recycling facility

Trendlyne Analysis

Nifty 50 closed lower after starting the day on a positive note. Asian indices closed mixed despite strong gains by the US indices led by technology stocks on Thursday. Crude oil prices ease but still trade at elevated levels. Investors continue to monitor the effect of rising commodity prices on already high inflation levels. Indian state fuel retailers raise petrol and diesel prices by 80 paise a litre each today, making it the third hike in four days.

Nifty Next 50 closed flat despite the benchmark index closing in the red. Nifty Metal extends its six-day winning streak by closing marginally higher. Nifty Media, which rose 6% yesterday, closed flat. Nifty IT ended the trading session sharply lower despite the tech-heavy NASDAQ 100 rising 2.2% yesterday.

Nifty 50 closed at 17,153.00 (-69.8, -0.4%), BSE Sensex closed at 57,362.20 (-233.5, -0.4%) while the broader Nifty 500 closed at 14,651.70 (-47.7, -0.3%).

Market breadth is overwhelmingly negative. Of the 1,883 stocks traded today, 586 showed gains, and 1,269 showed losses.

  • Bajaj Holdings & Investment, Ujjivan Small Finance Bank, Max Healthcare Institute, and IIFL Finance are trading with higher volumes as compared to Thursday.

  • Torrent Power announces the completion of the acquisition of a 50 MW solar power plant from Lightsource bp and UKCI for an enterprise value of Rs 300 crore.

  • Consumer facing companies are trading in red with stocks like Titan Company, Whirlpool of India, Voltas, Crompton Greaves and Bajaj Electricals falling. The broader sectoral index i.e. BSE Consumer Durables is also down today.

  • Inox Leisure surges to touch its 52-week high of Rs 479.45 as the business outlook improves on the easing of pandemic-related restrictions with a strong content line-up for the next few months.

  • Sugar stocks like Balrampur Chini Mills, Dhampur Sugar Mills, Andhra Sugars, Uttam Sugar Mills among others are falling as reports suggest that India could cap sugar exports to meet domestic demand. India is considering restrictions on sugar exports for the first time in six years and may cap exports at around eight million tonnes.

  • Axis Securities initiates coverage on G R Infraprojects with a ‘BUY’ rating and a target price of Rs 1,775, indicating an upside of 23%. The brokerage has a positive outlook on the company as it has a cumulative order book of Rs 16,692 crore with comfortable revenue visibility for the next 2 years. The brokerage expects the company’s revenue to grow a 12% CAGR over FY22-FY24

  • Bharti Airtel prepays Rs 8,815 crore to clear deferred liabilities for spectrum acquired in 2015, the prepayment is for installments due in FY2027 and FY2028. Over the last four months, the company has cleared Rs 24,334 crore of its deferred spectrum liabilities ahead of schedule.

  • Container Corporation of India is trading with more than nine times its weekly average trading volume. Poly Medicure, Tata Teleservices (Maharashtra),Muthoot Finance, and EIH are trading at more than four times their weekly average trading volumes.

  • G R Infraprojects receives a letter of award from the National Highways Authority of India for a new highway project in Madhya Pradesh for a total length of 69.1 Km. The bid cost of the project is Rs 907 crore.

  • Zen Technologies is rising as it receives a project sanction order (PSO) from the Indian Army. The project includes the design and development of a prototype of the Integrated Air Defence Combat Simulator (IADCS). The prototype is to be made ready for user trial readiness review (UTRR) within a period of 30 weeks.

  • Moody’s Investors Service's report suggests that fuel retailers like Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are losing Rs 19,000 crore in revenue. This is because of constant prices of petrol and diesel from November 4, 2021 – March 21, 2022, despite the rise in crude oil prices. The companies are losing over Rs 1,900 per barrel with the current market prices.

  • Lumax Auto Technologies receives approval for application under component champion incentive scheme of production linked incentive scheme for automobile and auto component industry.

  • Chloride Metals, a wholly-owned subsidiary of Exide Industries, starts commercial production at its new green field manufacturing facility of battery recycling in the state of West Bengal. The 21-acre recycling plant has a total installed capacity of 1,08,000 MT p.a.

  • Canada Pension Plan Investment Board sells a 2.01% stake (4 crore shares) of Kotak Mahindra Bank on Thursday. This bulk deal is worth Rs 6,800 crore.

Riding High:

Largecap and midcap gainers today include Container Corporation of India Ltd. (689.80, 10.99%), Tata Elxsi Ltd. (8,438.20, 10.93%) and Adani Power Ltd. (143.20, 8.36%).

Downers:

Largecap and midcap losers today include Indus Towers Ltd. (203.10, -5.00%), Ajanta Pharma Ltd. (1,894.35, -4.32%) and Astral Ltd. (1,957.10, -3.89%).

Volume Shockers

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

Top high volume gainers on BSE included Container Corporation of India Ltd. (689.80, 10.99%), Tata Elxsi Ltd. (8,438.20, 10.93%) and Lemon Tree Hotels Ltd. (60.90, 9.83%).

Top high volume losers on BSE were Muthoot Finance Ltd. (1,307.65, -3.19%), Abbott India Ltd. (16,021.85, -2.72%) and India Tourism Development Corporation Ltd. (401.05, -0.64%).

Shriram City Union Finance Ltd. (1,621.75, 4.28%) was trading at 9.1 times of weekly average. Poly Medicure Ltd. (847.85, 2.06%) and EIH Ltd. (149.00, 7.43%) were trading with volumes 8.6 and 7.1 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, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Cholamandalam Investment & Finance Company Ltd. (732.25, 0.12%), Cummins India Ltd. (1,086.35, -0.70%) and Delta Corp Ltd. (320.15, 2.27%).

Stocks making new 52 weeks lows included - Castrol India Ltd. (102.90, -0.68%) and Max Financial Services Ltd. (732.10, -2.08%).

18 stocks climbed above their 200 day SMA including Container Corporation of India Ltd. (689.80, 10.99%) and NLC India Ltd. (64.15, 4.22%). 9 stocks slipped below their 200 SMA including Asahi India Glass Ltd. (408.55, -2.54%) and Maruti Suzuki India Ltd. (7,415.45, -1.87%).

Trendlyne Marketwatch
Trendlyne Marketwatch
24 Mar 2022
Market closes flat, Indraprastha Gas increases prices of CNG by Rs 0.5/kg

Trendlyne Analysis

Nifty 50 closed flat after moving from green to red between gains and losses on a volatile day of trade. This volatility is expected to continue amid rising commodity prices. Crude oil prices inch higher as Russian President Vladimir Putin said that Russia will seek payment in roubles for gas sold to “unfriendly” countries. US indices fell on Thursday after volatile commodity prices add pressure to the market already dealing with record inflation level. Russian markets partially reopen after a month-long shutdown following the invasion of Ukraine.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green despite the benchmark index closing flat. Nifty Media closed 6% higher led by the heavyweights' Zee Entertainment and TV18 broadcast. Nifty Metal closed in the green to extend its winning streak to six days. Nifty IT closed higher, tracking the tech heavy NASDAQ 100 futures, which is trading higher.

Nifty 50 closed at 17,222.75 (-22.9, -0.1%), BSE Sensex closed at 57,595.68 (-89.1, -0.2%) while the broader Nifty 500 closed at 14,699.35 (4.2, 0.0%)

Market breadth is in the red. Of the 1,880 stocks traded today, 723 showed gains, and 1,123 showed losses.

  • V-Guard Industries, Kalpataru Power Transmissions, Prism Johnson, and Cholamandalam Financial Holdings trading with higher volumes as compared to Wednesday.

  • Emkay Global recommends a ‘Buy’ on State Bank of India with a target price of Rs 680 as it expects credit growth to be around 9-10% in FY22. The brokerage also sees the bank’s operating profit to increase by CAGR 20% over FY22-24 led by rise in net interest income and fee income.

  • Media stocks like Zee Entertainment, Dish TV India, TV18 Broadcast, Network 18 Media & Investments among others are rising in trade. The broader sectoral index Nifty Media is also rising in trade.

  • Lupin is rising as it receives US Food and Drug Administration (USFDA) approval for its abbreviated new drug application (ANDA), Sildenafil for oral suspension, 10 mg/mL. The product is a generic equivalent of Revatio, which has an estimated annual sales of $66 million in the US. Sildenafil is used to treat pulmonary arterial hypertension.

  • HCL Technologies ties-up with Latin American company NEORIS, a leading global digital accelerator, to strengthen its digital transformation capabilities and expand its market presence in Mexico and South America

  • Indraprastha Gas increases the prices of compressed natural gas by Rs 0.50 per kg and piped natural gas by Rs 1 per standard cubic metre for Delhi with effect from today. This is the third price hike after the company hiked gas prices back in October 2021 and January 2022.

  • Bajaj Holdings & Investment is trading with more than nine times its weekly average trading volume. SIS, Minda Corporation, Kotak Mahindra Bank, and Zee Entertainment Enterprises are trading at more than five times their weekly average trading volumes.

  • Ruchi Soya is falling as its Rs 4,300 crore follow-on public offering (FPO) opens for subscription. The company raises Rs 1,290 crore from anchor investors ahead of its FPO. At the upper end of the price band of Rs 650, the company’s FPO is available at more than a 40% discount to its current market price.

  • Pharma stocks like Dr. Reddy's Laboratories, Aurobindo Pharma, Lupin, and Glenmark Pharmaceuticals are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

  • Sharekhan maintains a ‘Buy’ rating on APL Apollo Tubes with a target price of Rs 1,100 indicating an upside of 28%. The brokerage believes the company’s investment in Shankara Building Products’ can potentially double its sales and improve its volumes as it will be able to use extensive retail and wholesale network. The brokerage expects the company to expand distribution into untapped markets through its investment.

  • Zee Entertainment surges as Invesco Developing Markets Fund (Invesco) withdraws its requisition notice, seeking the removal of MD and CEO Punit Goenka from the board of the company. Invesco withdraws its notice a day after winning its appeal in the Bombay High Court. Invesco is the largest shareholder in the company with a stake of 18%.

  • Motilal Oswal maintains a ‘BUY’ rating on Ajanta Pharma with a target price of Rs 2,500, indicating an upside of 29%. However, the brokerage reduces the target price by 10% as it expects the slow pace of abbreviated new drug application (ANDA) filings to hinder growth over the medium term. The brokerage remains positive on the long term on the back of robust outlook in the Branded Generics segment.

  • RBI approves SBI Mutual Fund, along with other SBI Group companies for acquiring 9.99% stake in ICICI Bank. SBI Mutual Fund holds 5.72% stake in ICICI Bank, till December 2021.

Riding High:

Largecap and midcap gainers today include Zee Entertainment Enterprises Ltd. (298.90, 16.74%), Dr. Reddy's Laboratories Ltd. (4,328.50, 4.87%) and Adani Total Gas Ltd. (1,979.75, 4.31%).

Downers:

Largecap and midcap losers today include L&T Finance Holdings Ltd. (80.05, -8.25%), Hindustan Petroleum Corporation Ltd. (275.00, -3.39%) and Kotak Mahindra Bank Ltd. (1,714.15, -3.14%).

Volume Rockets

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

Top high volume gainers on BSE included Zee Entertainment Enterprises Ltd. (298.90, 16.74%), India Tourism Development Corporation Ltd. (403.65, 13.82%) and Sequent Scientific Ltd. (139.45, 12.87%).

Top high volume losers on BSE were Kotak Mahindra Bank Ltd. (1,714.15, -3.14%), IIFL Finance Ltd. (283.35, -1.01%) and eClerx Services Ltd. (2,349.80, -0.44%).

SIS Ltd. (490.55, 2.11%) was trading at 11.9 times of weekly average. Bajaj Holdings & Investment Ltd. (5,057.65, 0.23%) and Minda Corporation Ltd. (206.85, 5.11%) were trading with volumes 9.9 and 8.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Cholamandalam Investment & Finance Company Ltd. (731.35, 1.33%), Cummins India Ltd. (1,094.00, 0.64%) and Hindalco Industries Ltd. (621.95, 2.22%).

Stocks making new 52 weeks lows included - Max Financial Services Ltd. (747.65, -2.90%) and Procter & Gamble Health Ltd. (4,266.00, 0.13%).

15 stocks climbed above their 200 day SMA including Zee Entertainment Enterprises Ltd. (298.90, 16.74%) and India Tourism Development Corporation Ltd. (403.65, 13.82%). 10 stocks slipped below their 200 SMA including L&T Finance Holdings Ltd. (80.05, -8.25%) and Hatsun Agro Products Ltd. (1,131.30, -3.34%).

Trendlyne Marketwatch
Trendlyne Marketwatch
23 Mar 2022
Market closes lower, ICICI Direct initiates coverage on Star Health with a ‘Buy’ rating

Trendlyne Analysis

Nifty 50 closed in the red after opening higher on a volatile day of trade. Barring Indian indices, all Asian indices closed in the green, tracking the US indices. The US index S&P 500 has risen in five of the last six trading sessions. US stocks have been climbing since the Federal Reserve handed down an expected quarter percentage point interest rate hike last week to curb high inflation levels. The current trend in the markets suggests that the investors believe that the US economy is strong enough to weather the higher borrowing costs. Crude oil prices edge higher as investors continue to monitor the war situation in Ukraine.

Nifty Smallcap 100 closed lower while Nifty Midcap 100 closed in the green to outperform the benchmark index. Nifty Metal closed sharply higher to extend its four-day winning streak. Nifty IT closed flat despite the tech-heavy NASDAQ 100 closing in the green yesterday.

Gloom in markets in today's trading. Nifty 50 closed at 17,245.65 (-69.9, -0.4%), BSE Sensex closed at 57,684.82 (-304.5, -0.5%) while the broader Nifty 500 closed at 14,695.15 (-28.9, -0.2%).

Market breadth is in the red. Of the 1,878 stocks traded today, 728 were on the uptrend, and 1,107 went down.

  • AIA Engineering, J B Chemicals & Pharmaceuticals, CSB Bank, and SKF India trading with higher volumes as compared to Tuesday.

  • Motilal Oswal maintains a ‘Neutral’ rating on Nestle India and increases the target price to Rs 18,700 from Rs 18,085, indicating an upside of 5%. The brokerage believes the company is well placed to capitalize on immense growth opportunities due to its strong brand and distribution strength. The brokerage finds the long-term narratives for earnings growth to be very attractive.

  • ICICI Direct initiates coverage on Star Health and Allied Insurance with a ‘Buy’ rating and target price of Rs 800, indicating an upside of 23%. The brokerage expects the company to maintain its market dominance due to its focus on product innovation, competitive pricing, and a strong distribution push.

  • Mtar Technologies gets declared lowest bidder by NPCIL for fuel transfer system of reactors and FM bridge & carriage assemblies of nuclear reactors. The total value of projects is approximately Rs 135 crore.

  • Hero MotoCorp is falling on the bourses as Income Tax Department conducts search operations at the company’s 25 premises for suspected tax evasion. According to reports, the search operation is ongoing at the offices and residences of Hero MotoCorp senior management in Delhi, Gururgram, and in other parts of North India

  • Indian Hotels’ stock surges as its qualified institutional placement (QIP) committee of the board approves its QIP issue. The company plans to mobilize around Rs 2,000 crore through the QIP and has fixed the floor price at Rs 203.48 per share.

  • V-Guard Industries is trading with more than seven times its weekly average trading volume. Jyothy Labs, TeamLease Services, Zydus Wellness, and Gland Pharma are trading at more than three times their weekly average trading volumes.

  • SBI Life Insurance announces an interim dividend of Rs 2 per share for FY22. The total payout amounts to Rs 200 crore. The record date is March 30, 2022.

  • Adani Ports & SEZ records cargo volumes of 300 million tonnes on a year to date basis in FY22. APSEZ had achieved the target of handling 200 million tonnes of cargo three years back. The company is all set to reach the volumes milestone of 500 million tonnes by 2025, according to its latest press release.

  • SBI Cards and Payments announces an interim dividend of Rs 2.50 per share for FY22. The total payout amounts to Rs 235.8 crore. The record date is March 31, 2022.

  • Infosys announces acquisition of Oddity, a Germany-based digital experience and marketing agency, for Rs 419 crore in an all-cash deal. The company expects the acquisition to bolster its creativity, branding, and experience design capabilities.

  • Piramal Capital and Housing Finance (PCHFL) initiates bankruptcy proceedings against Reliance Power and its subsidiary Reliance Natural Resources (RNRL) on default of Rs 526-crore loan. The housing finance company acquired Dewan Housing Finance (DHFL) for a total consideration of Rs 34,250 crore in 2021, merging it with PCHFL. DHFL went bankrupt as it owes more than Rs 90,000 crore to various lenders.

Riding High:

Largecap and midcap gainers today include L&T Finance Holdings Ltd. (87.25, 16.18%), Adani Power Ltd. (130.20, 5.21%) and Tata Communications Ltd. (1,184.30, 3.64%).

Downers:

Largecap and midcap losers today include Atul Ltd. (9,686.95, -2.86%), Info Edge (India) Ltd. (4,626.25, -2.82%) and Muthoot Finance Ltd. (1,336.50, -2.37%).

Movers and Shakers

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

Top high volume gainers on BSE included L&T Finance Holdings Ltd. (87.25, 16.18%), Suven Pharmaceuticals Ltd. (589.95, 10.43%) and IFB Industries Ltd. (1,005.95, 7.28%).

Top high volume losers on BSE were Lakshmi Machine Works Ltd. (9,957.45, -6.01%), TeamLease Services Ltd. (3,845.35, -3.63%) and Zydus Wellness Ltd. (1,470.60, -0.16%).

Jyothy Labs Ltd. (144.65, -0.07%) was trading at 15.5 times of weekly average. MOIL Ltd. (182.35, 5.40%) and Kalpataru Power Transmissions Ltd. (371.55, -0.01%) were trading with volumes 14.9 and 10.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks took off, crossing 52-week highs, while 1 stock tanked below their 52-week lows.

Stocks touching their year highs included - Century Plyboards (India) Ltd. (719.70, 1.29%), Cholamandalam Investment & Finance Company Ltd. (721.75, 1.38%) and Cummins India Ltd. (1,087.05, 3.35%).

Stock making new 52 weeks lows included - Procter & Gamble Health Ltd. (4,260.60, -0.67%).

19 stocks climbed above their 200 day SMA including L&T Finance Holdings Ltd. (87.25, 16.18%) and MOIL Ltd. (182.35, 5.40%). 2 stocks slipped below their 200 SMA including BEML Ltd. (1,534.50, -0.83%) and Welspun Corp Ltd. (147.60, 1.79%).

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The Baseline
23 Mar 2022
Chart of the week: Where has Reliance made its Rs. 21,330 crore of investments in FY22?

Reliance Industries is on an acquisition spree in FY22, particularly in the final two quarters. With  around a week still to go till the end of FY 22, the company has invested over Rs 21,330 crore in various sectors. Reliance Industries’ investment spree is similar to a fund that invests in interesting startups.

However, the acquisitions by the company have been multi-faceted. Ranging from investing in a premium luxury hotel (Rs 750 crore) to E-commerce giant Dunzo (Rs 1,500 crore), the company has been investing in diverse sectors.

One of the company’s major investments was a joint venture with TA’ZIZ In December 2021. This joint venture with Abu Dhabi-based TA’ZIZ will construct several chemical production facilities with an investment of Rs 15,000 crore. This allows the company to set up its first project in the Vinyl chain in the UAE. The chemicals and oils sector made up close to 36% of the company’s total investments. Huge investments in diverse sectors like this might push the timeline of the company’s objective of becoming carbon neutral.

Reliance previously identified its path to make the company carbon neutral within the next 15 years. To achieve this, the company has set aside Rs 75,000 crore towards this segment. Reliance Industries aims to become the biggest energy supplier in India.

With that goal in mind, the company has invested a major part of its purse in renewable energies. In FY22, the company invested over Rs 8,294 crore, constituting around 39% of its total investments in renewable energy companies. The top two investments in this domain include the company’s acquisition of REC Solar Holdings for Rs 5,800 crore and Faradion for Rs 935 crore.

Trendlyne Marketwatch
Trendlyne Marketwatch
22 Mar 2022
Market closes higher, Jubilant Foodworks exercises its call option to acquire remaining stake in Jubilant Golden Harvest

Trendlyne Analysis

Nifty 50 erased losses and closed in the green on a volatile day of trade. All Asian indices closed higher than Monday’s levels despite the US indices closing in the red yesterday. US stocks fell as US Federal Reserve Chairman Jerome Powell adopted a more hawkish tone on monetary policy. The Fed Chairman said that the Fed is prepared to hike the interest rates by a half percentage point if needed. Indian state fuel retailers raise petrol and diesel prices by 80 paise per litre as crude oil prices continue to trade at elevated levels due to the ongoing Russia-Ukraine war.

Nifty Smallcap 100 closed in the green but underperformed the benchmark index. Nifty Next 50 closed lower after opening in the green. Nifty Metal, which has gained over 5% in the last three trading sessions, ended the day in the green for the fourth consecutive trading session. Nifty IT closed sharply higher tracking the tech-heavy NASDAQ 100 futures, which is trading in the green.

Upbeat trading today. Nifty 50 closed at 17,315.50 (197.9, 1.2%), BSE Sensex closed at 57,989.30 (696.8, 1.2%) while the broader Nifty 500 closed at 14,724.05 (121.7, 0.8%)

Market breadth is in the red. Of the 1,886 stocks traded today, 820 were on the uptrend, and 1,030 went down.

  • Kalpataru Power Transmissions,Procter & Gamble Health, Tube Investments of India, and Cholamandalam Financial Holdings trading with higher volumes as compared to Monday

  • Jubilant Foodworks (JFL) issues notice to Golden Harvest QSR to exercise its call option to acquire the remaining 10% equity stake in Jubilant Golden Harvest Limited (JGHL) as agreed on March 6, 2018. Accordingly, JFL will acquire the complete 49% equity stake of Golden Harvest QSR in JGHL. Post the exercise of call options, JGHL will become a wholly owned subsidiary of JFL.

  • FMCG stocks are trading lower with stocks like Hindustan Unilever, Nestle India, Dabur India, and Marico among others falling in trade. The broader sectoral index Nifty FMCG is also trading lower today.

  • Axis Securities maintains a ‘Buy’ rating on CreditAccess Grameen with a target price of Rs 831, indicating an upside of 10%. The brokerage remains bullish on the company due to its deep rural presence, expanding branch network, and improving traction on customer addition.

  • Tata Motors announces price hike of 2-2.5% of its commercial vehicle range with effect from April 1, 2022. The increase in the prices of steel, aluminium and other precious metals, in addition to higher costs of other raw materials, has incited the price hike of commercial vehicles.

  • HDFC Securities upgrades rating on BPCL to 'BUY' with a target price upside of 15.4%. The brokerage is positive on the OMC owing to its attrative valuation, robust refining margins of $12.3/bbl and possible resumption in daily revision of retail auto fuel prices.

  • Stocks of upstream oil company ONGC are trading higher on the back of rise in international crude oil prices. Additionally, stocks of oil marketing companies like BPCL and HPCL are trading up on account of an 80 paise hike in petrol, diesel prices as well as a Rs 50 hike in LPG cylinder prices.

  • KSB is trading with more than sixteen times its weekly average trading volume. Mahindra Holidays & Resorts India, Ratnamani Metals & Tubes, Graphite India, and Rain Industries are trading at more than three times their weekly average trading volumes.

  • Hindustan Unilever falls after reports suggest of discussions to buy majority stake in Mahashian Di Hatti (MDH).

  • Future Retail hits its all-time low of Rs 29.7 as banks announce to initiate debt recovery proceedings this week against the company. The banks have initiated the proceedings to safeguard their interests after Reliance unexpectedly took over some of the retailer’s stores. Future Group has more than $ 4 billion in debt.

  • Indoco Remedies receives approval from the United States Food & Drug Administration (USFDA) for Lacosamide tablets in the strengths of 50 mg, 100 mg, 150 mg and 200mg. Lacosamide tablets are the generic version of Vimpat tablets, which has a market size of $ 1.7 billion. Lacosamide tablets are used for the prevention and control of seizures

  • IT major Wipro's board will consider the interim dividend for FY22 in the board meeting to be held on Friday. The company had earlier approved an interim dividend of Rs 1 per share in January 2022 and paid the same on February 5, 2022

  • CLSA maintains ‘Buy’ on ICICI Bank but cuts target price to Rs 1,050 from Rs 1,125 as it expects RBI’s unchanged repo rate (4%) will affect margins in near term. Repo-linked loans account for 38% of the bank’s books and margins will face constraint if RBI decides to keep rates on hold for another few months. The recent spike in operating expenses is also a sign of concern as employee cost inflation remains high. However, the brokerage expects the bank to grow by 17% CAGR over FY22-24.

  • Equitas Small Finance Bank (SFB) and Equitas Holdings are rising as their boards approve a merger of the two companies. This merger proposes the amalgamation of Equitas Holdings into and with Equitas SFB and the dissolution without winding-up of the transferor company (Equitas Holdings). Shareholders of Equitas Holdings will be allotted 231 equity shares for every 100 shares of the Equitas SFB.

  • Sun Pharmaceutical Industries inks pact with Japan’s Daiichi Sankyo Company to acquire its 11.28% stake in Zenotech Laboratories. Sun Pharma will acquire 68.8 lakh equity shares worth Rs 5.32 crore. After the acquisition, Sun Pharma’s stake in the company will increase to 68.84% from 57.56%.

Riding High:

Largecap and midcap gainers today include Tech Mahindra Ltd. (1,538.20, 3.95%), Adani Total Gas Ltd. (1,883.95, 3.85%), and L&T Finance Holdings Ltd. (75.10, 3.73%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (1,064.40, -3.97%), Abbott India Ltd. (16,685.60, -3.28%) and Zee Entertainment Enterprises Ltd. (248.55, -3.21%).

Movers and Shakers

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

Top high volume gainers on BSE included Chalet Hotels Ltd. (303.65, 12.82%), Mahindra Holidays & Resorts India Ltd. (233.25, 9.84%) and Ratnamani Metals & Tubes Ltd. (2,509.85, 9.69%).

Top high volume losers on BSE were Sun TV Network Ltd. (459.85, -1.29%), Hawkins Cookers Ltd. (5,340.00, -1.25%) and J B Chemicals & Pharmaceuticals Ltd. (1,599.30, -0.22%).

KSB Ltd. (1,237.70, 6.31%) was trading at 18.8 times of weekly average. Graphite India Ltd. (515.15, 4.58%) and Rain Industries Ltd. (194.35, 5.80%) were trading with volumes 6.2 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Century Plyboards (India) Ltd. (710.50, 2.67%), GHCL Ltd. (557.30, 3.63%) and Linde India Ltd. (3,332.70, -1.32%).

Stocks making new 52 weeks lows included - Castrol India Ltd. (103.75, -1.47%) and Mishra Dhatu Nigam Ltd. (168.25, -0.59%).

13 stocks climbed above their 200 day SMA including KSB Ltd. (1,237.70, 6.31%) and Alok Industries Ltd. (25.60, 3.23%). 16 stocks slipped below their 200 SMA including Macrotech Developers Ltd. (1,064.40, -3.97%) and Welspun Corp Ltd. (145.00, -3.27%).