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Trendlyne Marketwatch
Trendlyne Marketwatch
24 Sep 2024
Market closes flat, Sterling and Wilson bags two solar EPC orders worth Rs 512 crore
By Trendlyne Analysis

Nifty 50 closed at 25,940.40 (1.4, 0.0%) , BSE Sensex closed at 84,914.04 (-14.6, 0.0%) while the broader Nifty 500 closed at 24,389.70 (10.5, 0.0%). Market breadth is in the red. Of the 2,272 stocks traded today, 1,016 were in the positive territory and 1,229 were negative.

Nifty 50 touched a new all-time high of Rs 26,011.6 before paring its gains in the afternoon session to close flat. The Indian volatility index, Nifty VIX, fell 2.9% and closed at 13.4 points. AstraZeneca Pharma India touched an all-time high as it received approval from the Central Drugs Standard Control Organisation, Govt. of India, to import Durvalumab.

Nifty Midcap 100 closed higher, while Nifty Smallcap 100 closed in the red. Nifty Metal and Nifty Auto closed higher. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a rise of 2.5%.

European indices traded higher, while Asian indices closed mixed. US index futures traded mixed, indicating a cautious start to the trading session. Boeing offered a 30% wage hike to its union workers to end the strike that has shut down its aircraft manufacturing across the Pacific Northwest.

  • Money flow index (MFI) indicates that stocks like SBFC Finance, Asahi India Glass, Campus Activewear, and Century Plyboards (India) are in the overbought zone.

  • Spicejet falls sharply as it resolves its dispute with Engine Lease Finance Corp (ELFC) in a settlement lower than the $16.7 million previously claimed by ELFC.

  • Geojit BNP Paribas downgrades Triveni Turbine to 'Accumulate' from 'Buy' with a target price of Rs 803 per share. This indicates a potential upside of 9.7%. The brokerage downgrades the company due to a recent surge in stock price. However, it remains confident due to its increasing mix of high-margin international orders and aftermarket sales. It expects the firm's revenue to grow at a CAGR of 29.2% over FY25-26.

  • Nifty Metal rises over 2% following the Chinese central bank's decision to cut short-term policy interest rates and introduce additional measures to support its struggling real estate market. The People's Bank of China (PBOC) reduced its 14-day reverse repo rate by 10 bps to 1.85%, after previously refraining from cutting longer-term mortgage rates.

  • Sterling and Wilson Renewable Energy receives two new domestic solar engineering, procurement, and construction (EPC) orders totaling Rs 512 crore from private independent power producers (IPPs). These include a 250 MWp direct current (DC) project in Gujarat and a 65 MWp DC project in Maharashtra.

  • JTL Industries rises sharply as its board of directors schedules to meet on October 3 to consider a bonus issue and an equity share split.

  • HDFC Bank rises as it reportedly plans to sell its loan assets worth Rs 60,000-70,000 crore. The move comes as the bank aims to increase its liquidity and decrease its credit-to-deposit ratio, which stood at 105% in Q1FY25.

  • Reports suggest that 50 lakh shares (10.4% stake) of CarTrade Tech, worth Rs 478 crore, have changed hands in a block deal at an average price of Rs 927 per share.

  • Western Carriers’ shares debut on the bourses at a 0.6% discount to the issue price of Rs 172. The Rs 492.9 crore IPO received bids for 30.6 times the total shares on offer.

  • Northern Arc Capital's shares debut on the bourses at a 33.1% premium to the issue price of Rs 263. The Rs 777 crore IPO received bids for 110.9 times the total shares on offer.

  • Arkade Developers' shares debut on the bourses at a 36.7% premium to the issue price of Rs 128. The Rs 410 crore IPO received bids for 106.8 times the total shares on offer.

  • Emkay Global upgrades its rating on One97 Communications (Paytm) to ‘Add’ with a higher target price of Rs 750. The brokerage has a positive outlook on the company due to easing regulatory pressures and effective cost optimisation strategies. It also highlights Paytm’s strong position in the market.

  • Larsen & Toubro rises as its power transmission & distribution (PT&D) business secures orders worth Rs 10,000-15,000 crore from the Middle East to expand high-voltage electricity grids with 500kV high voltage direct current transmission links. The company also secures contracts for two 380kV overhead transmission lines and a 380kV gas-insulated substation.

  • Tata Power rises sharply as Tata Power Delhi Distribution secures a 20-year patent for its innovative self-regenerating transformer breather. This patented technology will reduce maintenance efforts by minimizing the need to replace silica gel in the transformer’s breather, thereby protecting it from moisture damage.

  • AstraZeneca Pharma India surges to its all-time high of Rs 7,598 per share as it receives approval from the Central Drugs Standard Control Organisation (CDSCO), Govt. of India, to import Durvalumab for distribution and sales.

  • The periodic labour force survey for July 2023 to June 2024 reports an unchanged overall unemployment rate of 3.2% for both urban and rural areas. Urban unemployment decreased to 5.1% from 5.4% the previous year, while rural unemployment rose slightly to 2.5% from 2.4%. The unemployment rate for both males and females across these areas remains at 3.2%.

  • Reliance Power surges to its 5-year high of Rs 40.1 per share as its board of directors approves the issuance of 46.2 crore shares and warrants worth Rs 1,524.6 crore through a preferential issue at an issue price of Rs 33 per share.

  • Valor Estate's board of directors approves the reappointment of Shahid Balwa as its Vice Chairman (VC) and Managing Director (MD) for the next three years, effective December 10.

  • Firstsource Solutions rises sharply as its wholly-owned subsidiary, Firstsource Solutions UK, acquires 100% ownership in Ascensos for a consideration of GBP 42 million (approx. Rs 468.7 crore) to expand into the retail vertical and strengthen its nearshore, multi-lingual capabilities.

  • HSBC upgrades its rating on IIFL Finance to 'Hold' with a higher target price of Rs 540. The brokerage highlights the Reserve Bank of India (RBI) has lifted restrictions on IIFL's gold loan business, enhancing growth prospects. As a result, the brokerage raises its earnings per share (EPS) estimates for FY25-27 by 6-16%.

  • GR Infraprojects rises sharply as it bags an order worth Rs 903.5 crore from Maharashtra Metro Rail Corp to design and construct an elevated metro viaduct, railway spans, and a 6-lane double-decker portion with vehicular underpass (VUP).

  • Punjab National Bank's board of directors approves the issuance of shares worth Rs 7,500 crore through a qualified institutional placement (QIP) at a floor price of Rs 109.2 per share.

  • Power Grid Corp of India rises as it secures an order to establish an inter-state transmission system for dynamic reactive compensation at Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3) in Gujarat on a build, own, operate, and transfer (BOOT) basis.

  • Coal India is rising as it enters a 74:26 joint venture (JV) with Rajasthan Rajya Vidyut Utadan Nigam (RRVUNL) to set up two 800 MW brownfield thermal power projects at RRUVNL's Kalisindh Thermal Power Station.

  • Nifty 50 was trading at 25,929.80 (-9.3, 0.0%), BSE Sensex was trading at 84,765.01 (-163.6, -0.2%) while the broader Nifty 500 was trading at 24,384.35 (5.2, 0.0%).

  • Market breadth is in the green. Of the 1,937 stocks traded today, 1,181 were on the uptick, and 709 were down.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (680.95, 4.5%), Tata Steel Ltd. (160.53, 4.3%) and NMDC Ltd. (223.93, 4.0%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (1,838.75, -4.3%), Punjab National Bank (107.83, -3.3%) and SBI Life Insurance Company Ltd. (1,864.35, -2.9%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included AstraZeneca Pharma India Ltd. (7,878.25, 16.8%), JM Financial Ltd. (143.68, 12.3%) and Schneider Electric Infrastructure Ltd. (853.55, 9.9%).

Top high volume losers on BSE were Indian Energy Exchange Ltd. (211.61, -11.6%), Amber Enterprises India Ltd. (4,723.05, -5.4%) and Punjab National Bank (107.83, -3.3%).

Sapphire Foods India Ltd. (376.45, 6.8%) was trading at 14.7 times of weekly average. Chalet Hotels Ltd. (914.85, 3.0%) and Firstsource Solutions Ltd. (333.50, 6.0%) were trading with volumes 8.2 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

45 stocks hit their 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (7,122, -0.4%), Bajaj Auto Ltd. (12,443.65, 0.9%) and Bharti Airtel Ltd. (1,756.65, 0.4%).

10 stocks climbed above their 200 day SMA including Tata Steel Ltd. (160.53, 4.3%) and VIP Industries Ltd. (579.75, 4.1%). 2 stocks slipped below their 200 SMA including Indian Overseas Bank (59.83, -2%) and ACC Ltd. (2,475, -0.5%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Sep 2024
Market closes higher, NBCC's subsidiary, HSCC, bags an order worth Rs 1,261 crore
By Trendlyne Analysis

Nifty 50 closed at 25,939.05 (148.1, 0.6%) , BSE Sensex closed at 84,928.61 (384.3, 0.5%) while the broader Nifty 500 closed at 24,379.20 (185.4, 0.8%). Market breadth is in the green. Of the 2,295 stocks traded today, 1,404 were in the positive territory and 872 were negative.

Indian indices extended their gains in the afternoon session to close in the green. The Indian volatility index, Nifty VIX, rose by 7.8% and closed at 13.8 points. Adani Total Gas closed deep in the green as it secured funding worth $375 million (approx. Rs 3,131.2 crore) from a group of lenders including, BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corp.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, taking cues from the benchmark index. Nifty PSU Bank and BSE Oil & Gas were among the top index gainers today. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the best-performing sector of the day, with a jump of over 2.8%.

Asian indices closed mixed while European indices are trading in the green except UK’s FTSE 100 and France’s CAC 40 which are trading flat and 0.35 lower, respectively. US index futures traded in the green, indicating a positive start to the trading session. Apollo Global Management reportedly plans to invest $5 billion in Intel against the company’s shares.

  • Relative strength index (RSI) indicates that stocks like Concord Biotech, Campus Activewear, Max Healthcare Institute, and ICICI Bank are in the overbought zone.

  • Motilal Oswal retains its 'Sell' call on United Breweries with a target price of Rs 1,800 per share. This indicates a potential downside of 16.2%. The brokerage believes the company is facing strong competition from local and international brands in India, combined with regulatory headwinds in the industry. It expects the firm's revenue to grow at a CAGR of 12.9% over FY25-26.

  • Astec Lifesciences falls as Anurag Roy files his resignation as Whole-Time Director & Chief Executive Officer (CEO), effective October 25.

  • Biocon receives three observations from the US FDA following a surveillance inspection at its API facility in Bengaluru, Karnataka.

  • Christopher Wood, Global Head of Equity Strategy at Jefferies, notes a correction of over 10% could spur foreign investment in Indian equities, as global emerging market investors are currently underweight. This is due to India's rising neutral weighting from strong performance and foreign hesitance due to high valuations. Foreign portfolio investors (FPIs) have bought shares worth over Rs 26,000 crore in the cash market this month.

  • NBCC (India) rises as its subsidiary, HSCC (India), bags an order worth Rs 1,261 crore from the Ministry of Health and Family Welfare for the establishment work of AIIMS in Darbhanga, Bihar.

  • Bajaj Healthcare rises sharply as it signs a development and supply agreement for an active pharmaceutical ingredient (API) with a European entity. The API will be supplied in small quantities for clinical trials, with larger quantities sourced from Bajaj’s FDA-approved facility in Vadodara, Gujarat, if successful.

  • Aster DM Healthcare rises as its wholly owned subsidiary, Sri Sainatha Multispecialty Hospitals, enters into a lease agreement with Aparna Constructions and Estates to establish a new 300-bed Aster Woman and Children Hospital in Hyderabad, with an investment of Rs 220 crore.

  • Chintan Thakkar, CFO of Info Edge (India), highlights that the company delivered double-digit revenue growth in Q1, and expects this trend to continue, with margins around 55%. He anticipates Jeevansathi (matrimony business) and 99 acre (real estate business) to break even this year.

  • Unichem Laboratories' board schedules a meeting on September 30 to consider the integration and consolidation of the US generics formulations business of Bayshore Pharmaceuticals LLC into Unichem Pharmaceuticals (USA). This move is a part of the company's plans to consolidate all of Ipca Group's US generics formulations business under one entity.

  • Axis Direct maintains its 'Buy' call on Pitti Engineering with a target price of Rs 1,572 per share. This indicates a potential upside of 23.2%. The brokerage expects revenue growth driven by robust capex and capacity addition, strong order book, recent acquisitions, and the PCL merger. It expects the company's revenue to grow at a CAGR of 36.6% over FY25-26.

  • KBC Global rises as its subsidiary, KBC International, Ghana, signs a memorandum of understanding (MoU) with the Liberia Special Economic Zone Authority. The agreement includes the construction of residential building complexes, low-cost housing, and commercial spaces in the SEZ, with an estimated cost of $12.5 million (approximately Rs 104.4 crore).

  • Samvardhana Motherson International successfully concludes its fundraising via a qualified institutional placement (QIP), raising $771 million (approximately Rs 6,441.3 crore) from investors amid robust demand, with over 95% of allocations going to prominent long-only investors. The company plans to use the funds to repay debt and improve its financial position, allowing it to seize growth opportunities.

  • Hind Rectifiers surges to its 5% upper circuit as it secures a Rs 200 crore supply order from Indian Railways, set for completion by FY26.

  • PSP Projects is rising as it bags two orders worth Rs 554.9 crore to construct the Gold Stone Hotel, commercial towers in Bangalore, and residential towers in Ahmedabad.

  • Inox Wind rises to its all-time high of Rs 261.9 as it signs a consortium agreement with a group of banks, led by ICICI Bank, for a credit limit of approximately Rs 2,200 crore.

  • The ministerial panel on GST rate rationalization will meet on September 25 to discuss potential adjustments to tax slabs and rates. The six-member Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, last convened on August 22 and submitted a status report to the GST Council on September 9. Presently, the goods and services tax operates under a four-tier structure with rates of 5%, 12%, 18%, and 28%.

  • HFCL rises to its all-time high of Rs 171 per share as it enters a partnership with General Atomics Aeronautical Systems Incorporated (GA-ASI) to develop and supply critical sub-systems for its advanced unmanned aircraft systems (UAS).

  • Adani Total Gas rises sharply as it secures funding worth $375 million (approx. Rs 3,131.2 crore) from a group of lenders including, BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corp. The company will use this funding to expand its city gas distribution (CGD) across 13 states in the country.

  • Aarti Drugs falls as it receives Form 483 with seven observations from the US FDA following an inspection at its API manufacturing facility in Tarapur, Maharashtra.

  • Nomura initiates a ‘Neutral’ on Indegene with a target price of Rs 700. The brokerage notes the company is a niche play on digitalising the life sciences industry. It highlights that Indegene is well-positioned to capitalise on the growing digital adoption across life sciences companies.

  • Spicejet rises sharply as its board of directors approves the qualified institutional placement (QIP) of shares worth Rs 3,000 crore at an issue price of Rs 61.6 per share.

  • Bharat Heavy Electricals surges as it receives an order worth Rs 6,100 crore from NTPC to execute an engineering, procurement, and construction (EPC) package for an 800 megawatt (MW) unit at the Sipat Supercritical Thermal Power Project Stage-III in Bilaspur, Chhattisgarh.

  • Vodafone Idea rises sharply as it approves a capex for $3.6 billion (approx. Rs 30,090 crore) to supply network equipment for the next three years to Nokia, Ericsson, and Samsung.

  • KEC International secures orders worth Rs 1,003 crore across its businesses. These include a tunnel ventilation system for railways, civil and mechanical works for a steel plant, and cable supply orders in India and overseas.

  • Nifty 50 was trading at 25,881.70 (90.8, 0.4%), BSE Sensex was trading at 84,766.02 (221.7, 0.3%) while the broader Nifty 500 was trading at 24,275.30 (81.5, 0.3%).

  • Market breadth is highly positive. Of the 2,025 stocks traded today, 1,366 showed gains, and 602 showed losses.

Riding High:

Largecap and midcap gainers today include Godrej Properties Ltd. (3,192.35, 6.8%), Adani Total Gas Ltd. (835.35, 5.9%) and Indian Bank (536.85, 5.4%).

Downers:

Largecap and midcap losers today include Voltas Ltd. (1,882.45, -2.4%), Torrent Power Ltd. (1,862, -2.1%) and One97 Communications Ltd. (651.55, -1.9%).

Movers and Shakers

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

Top high volume gainers on BSE included Amber Enterprises India Ltd. (4,994.65, 14.9%), VIP Industries Ltd. (556.85, 11.6%) and Finolex Cables Ltd. (1,526.65, 10.1%).

Top high volume loser on BSE was Supreme Petrochem Ltd. (866, -2.5%).

Adani Total Gas Ltd. (835.35, 5.9%) was trading at 8.7 times of weekly average. Bank of Maharashtra (63.12, 8.1%) and Tata Investment Corporation Ltd. (6,945.90, 3.1%) were trading with volumes 5.1 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

45 stocks hit their 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (7,152.80, 1.0%), Bajaj Auto Ltd. (12,338.95, 3.3%) and Bajaj Finserv Ltd. (1,919.95, 0.2%).

Stock making new 52 weeks lows included - Gujarat Ambuja Exports Ltd. (126.50, 1.3%).

22 stocks climbed above their 200 day SMA including VIP Industries Ltd. (556.85, 11.6%) and Bank of Maharashtra (63.12, 8.1%).

 
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The Baseline
20 Sep 2024
Five Interesting Stocks Today - September 20, 2024

1. REC:

This public sector NBFC surged 3% on Wednesday after signing non-binding Memorandums of Understanding (MoUs) worth Rs 1.1 lakh crore over five years, with various renewable energy developers like Hygenco Green Energies. These agreements cover projects like solar and wind hybrid systems, floating solar plants, ultra mega renewable energy parks, hydroelectric power, and other innovative technologies. 

REC aims to play a key role in boosting India’s non-fossil-based generation capacity from 200 GW to 500 GW by 2030. With its "Shapath Patra" commitment, REC plans to grow its renewables loan book from the current Rs 42,936 crore to over Rs 3 lakh crore by 2030, increasing the share of renewables from 8% to 30%. Its total loan book is expected to reach Rs 10 lakh crore by 2030.

In Q1FY25, REC reported a 16.6% increase in consolidated net profit, reaching Rs 3,460.2 crore, driven primarily by higher revenues. This revenue figure beat Trendlyne’s Forecaster estimate by 4.8%, although net profit fell short of expectations by 2.6%. The loan book continued its steady growth, rising 17% to Rs 5.3 lakh crore compared to Rs 4.5 lakh crore in the same period last year. 

Vivek Dewangan, MD and Chairman, commented on guidance and projections, "Going forward, we aim to maintain a net interest margin above 3.6% for the next 4-5 years. We also anticipate significant growth in our renewable portfolio, which we expect to account for 30% of our total AUM by 2030, up from the current 8%. This year, we are targeting disbursements of around Rs 1.9 lakh crore."

UBS Global Research has initiated a 'Buy' call on REC, citing India's expanding renewable energy generation and infrastructure growth. The brokerage has set a target price of Rs 720 per share, indicating a 33% upside from Wednesday's closing price. Despite this positive outlook, the company is trading in the strong sell zone, indicating that it is currently trading above its historical PE.

2. Hero MotoCorp:

This two-wheeler manufacturer rose by 3.6% over the past week to touch its all-time high of Rs 6,146 on Wednesday as the company expects increased momentum in the upcoming quarter, driven by the festive season. CEO Niranjan Gupta highlights that the company aims to adjust inventory levels to support growth this festive season. They plan to keep stock within a 4-6 week range to manage increased demand effectively.

The company is in talks to invest Rs 900 crore in Altigreen Propulsion Labs, an electric three-wheeler startup. This move will put Hero MotoCorp directly in competition with industry leaders Mahindra & Mahindra and Bajaj Auto. The company also holds a 40% stake in electric 2-wheeler company Ather Energy, which recently filed papers for a Rs 312 crore IPO. 

In Q1FY25, the company reported a net profit growth of 47.3% YoY to Rs 1,045.9 crore, but missed Trendlyne Forecaster estimates by 3.7%. Revenue grew 15.4% YoY to Rs 10,218 crore during the quarter, thanks to a recovery in the 125cc segment and the success of the new Xtreme 125 cc model. The company appears in a screener of stocks with improving book value per share over the past two years.

Gupta said, "The positive response to the Xtreme 125cc has prompted us to increase its manufacturing capacity from 25,000 to 40,000 units per month, which we will implement in the next couple of months. We also have new models in the pipeline, including the Destini scooter and Xoom models in 110 cc, 125 cc, and 160 cc capacities."

Geojit BNP Paribas has a ‘Buy’ rating on the stock as the brokerage anticipates an acceleration in the coming quarters, driven by positive customer sentiment, a favorable monsoon, and the festive season. Additionally, the company's planned product launches in both internal combustion engine (ICE) and EV categories support a positive outlook.

3. Thermax:

Thisheavy electrical equipment manufacturer has risen 15.6% over the past week as its wholly-owned subsidiary, Thermax Babcock & Wilcox Energy Solutions, received a repeat order worth Rs 516 crore from Jindal Energy Botswana. This order is for two 550 tonnes per hour (TPH) boilers for a 300 MW energy project in Botswana, Southern Africa.

InQ1FY25, the company reported operating revenue growth of 13% YoY to Rs 2,184.4 crore but missed Trendlyne’s Forecaster estimates by 3%. Net profit also nearly doubled on a YoY basis to Rs 116 crore but was 14% below consensus estimates. This estimate miss was mainly due to lower order inflow which led to subdued order book growth. With an order inflow of Rs 2,600 crore, Thermax’s order book grew 2% YoY to Rs 10,700 crore at the end of Q1.

Managing Director and CEO, Ashish Bhandari,said, “The company is likely to see higher order inflow in FY25 compared to FY24, led by the refining and petrochemicals sector.” He highlights that the company is also venturing into newer segments to boost order book growth, and also aims to grow its chemicals business which currently contributes 7% to the total revenue.

ICICI Securitiesmaintains a ‘Hold’ rating on Thermax as financials missed estimates in Q1. The brokerage believes that orders from the thermal segment will remain strong over the next few years and give a big boost to Thermax’s order inflow. They forecast the company’s revenue and net profit to grow at a CAGR of 15% and 21.7% respectively.

4. Delhivery:

This transportation & logistics company rose by over 3% in the past week as on September 16th, as it entered into a strategic partnership with Team Global Logistics to expand its cross-border services to 120 countries. This collaboration aims to combine Delhivery’s Part Truckload shipping network with Team Global Logistics’ expertise as the country’s largest Less-Than-Container Load (LCL) operator.

For Q1FY25, the company’s net profit rose by 160.8% YoY to Rs 54.4 crore, while its revenue rose by 12.4% YoY as its express parcel segment revenue grew 6.2% YoY. The firm beat Trendlyne’s Forecaster estimates for revenue by 2.1%, and the net profit estimate by 185.2% as the company recorded a net loss in the previous quarter and in Q1FY24. The stock appears in a screener for stocks where mutual funds have increased shareholding over the past month.

Analysts report that the company’s Express business’ service-level EBITDA was maintained at 18%, while service EBITDA for the Partial Truckload (PTL) business expanded 100 bps to 3.2%. The company has the largest coverage of  19,000 pin codes across the country. The company is also planning to enter quick commerce, where they plan to create a warehousing and delivery infrastructure for D2C brands and smaller Quality Control (QC) players. 

In February, Meesho, an e-commerce player, launched a logistics aggregation platform called "Valmo," to consolidate various logistics providers and offer their services to sellers. Unlike other e-commerce firms like Flipkart and Amazon, Meesho does not plan to invest in assets such as trucks and warehouses. When asked by analysts on whether Delhivery will join Valmo, its CEO, Sahil Barua noted that “The incentive for us to unbundle is zero. It is also not in the interest of customers to disintermediate ourselves as the cost curve flattens quickly when you run a parcel-only network.”

Despite a tough market, management expects PTL revenue to keep growing as the industry shifts toward integrated players. They note that in the US., the top five logistics companies hold a 65% market share in PTL, and they anticipate a similar trend in India. For FY25 the management expects the EBITDA margin of PTL business to improve and approach the express parcel business’ margin of 18% as volume increases.

ICICI Securities has maintained a “Buy” rating on Delhivery, with a target price of Rs 600. The brokerage values the company at 40x FY26E EV/EBITDA. It adds that the firm is strengthening its leadership position in the express parcel. In the PTL sector, it became profitable at the service EBITDA level starting Q4FY24.

5. Shyam Metalics and Energy:

Thisiron & steel/intermediaries products manufacturer rose 3.2% on Monday, hitting an all-time high of Rs 908.9 the next day. This surge followed the company's announcement of theexpansion of its production capabilities with a state-of-the-art Greenfield Cold Rolling Mill (CRM) in Jamuria, West Bengal with a total capital cost of Rs 603 crore.

The new facility has a capacity of 400,000 tons per year and will produce pre-painted galvalume coils and galvanized iron/steel coils. The mill is located in eastern India, which provides logistical advantages and helps address the region's shortage of color-coated sheet manufacturing units. This expansion will enhance Shyam Metalics' product offerings and manufacturing capabilities.

The CRM's output will cater to various sectors, including housing, warehousing, and industrial sheds, with a particular focus on affordable housing through initiatives like Pradhan Mantri Awas Yojana.

Brij Bhushan Aggarwal, Vice Chairman and MD of the company,said, “We aim to achieve optimal utilization of the new facility within the next two years, contributing 8% to 10% of the company’s revenue & EBITDA in the years to come.” The expansion will enhance production capabilities, reinforce the company's position as a key supplier of high-quality steel products, and leverage lower production costs and logistical advantages.

UBSinitiates a ‘Buy’ rating on Shyam Metalics and Energy with a target price of Rs 1,200. The brokerage highlights the company's successful foray into new businesses (aluminum and stainless steel products) as a confirmation of its execution capabilities. They believe the multiple new projects commencing operations in FY25/26 provide strong earnings visibility, while diversification mitigates profitability risk.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Sep 2024
Market closes higher, Patel Engineering bags a 240 crore order from NHPC
By Trendlyne Analysis

Markets closed higher. Nifty 50 closed at 25,790.95 (375.2, 1.5%) , BSE Sensex closed at 84,544.31 (1,359.5, 1.6%) while the broader Nifty 500 closed at 24,193.80 (339.9, 1.4%). Market breadth is in the green. Of the 2,248 stocks traded today, 1,437 were on the uptick, and 792 were down.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 25,790.9 points. The Indian volatility index, Nifty VIX, rose by 2.3% and closed at 12.8 points. Reliance Infrastructure’s board approved raising Rs 3,014 crore through a preferential share issue to promoters and non-promoters and is also seeking shareholder approval to raise up to Rs 3,000 crore through a qualified institutional placement (QIP) for business expansion.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, taking cues from the benchmark index. BSE Realty Index and Nifty Realty were among the top index gainers today. According to Trendlyne’s Sector dashboard, Realty emerged as the best-performing sector of the day, with a jump of over 3.1%.

Asian indices closed mixed while European indices are trading in the red except Russia’s MOEX & RTSI. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the red. Logistics giant FedEx dropped 12% in pre-market trading after reporting significantly weaker-than-expected quarterly earnings, attributed to customers opting for cheaper or slower options, along with softer-than-anticipated industrial demand.

  • Money flow index (MFI) indicates that stocks like Alkyl Amines Chemicals, Century Plyboards (India), Campus Activewear, and Jubilant Pharmova are in the overbought zone.

  • Suzlon Energy rises after being excluded from the stage 1 additional surveillance measure (ASM) framework, which was previously imposed by the stock exchange to monitor unusual price movements.

  • Foreign institutional investors buy equity worth Rs 5,426.8 crore in the market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 27,037.9 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, investing Rs 84 crore during the same period.

  • Patel Engineering rises as it secures an order worth Rs 240 crore from NHPC to modify a diversion tunnel into a spillway tunnel at Teesta-V Power Station, Sikkim.

  • August was a mixed month for Portfolio Management Services (PMS) schemes, despite flat market conditions. Among the top ten strategies with the highest outflows, ASK Investment Managers' Indian Entrepreneur Portfolio led with a net outflow of Rs 464 crore in August, bringing total outflows to Rs 3,135 crore since April. The portfolio achieved a return of 3.2% in August.

  • Torrent Pharmaceuticals receives Form 483 with one observation from the US FDA after conducting a good manufacturing practices (GMP) inspection at its formulation manufacturing facility in Pithampur, Madhya Pradesh.

  • ITD Cementation surges as Adani Group reportedly plans to acquire the promoter’s 46.6% stake in the company for Rs 5,888.6 crore. The proposed acquisition aims to enhance Adani's civil engineering capabilities.

  • Radhakishan Damani sells a 1 lakh shares (0.6% stake) in VST Industries for approx Rs 4.4 crore in a block deal.

  • EIH reportedly exits the hospitality market in the United Arab Emirates (UAE). As a result, The Oberoi Beach Resort, Al Zorah, in Ajman, will no longer be managed by the Oberoi Group following the termination of its contract with the local property owner.

  • Interarch Buiding Products surges almost 10% as it secures orders worth Rs 633.5 crore so far in FY25 from Reliance Industries, Ampin Solar, Ashok Leyland, and Amaraja Infra among others. This takes the company's total order book to Rs 1,350 crore.

  • Mahindra & Mahindra Financial Services falls as 85.5 lakh share (0.7% stake), worth Rs 270 crore, reportedly change hands in a block deal at an average price of Rs 317 per share.

  • Knowledge Marine & Engineering Works surges as it receives a work order worth Rs 19.3 crore from Mumbai Port Authority to supply two patrol boats for CISF patrolling and transporting port personnel in the Mumbai Port Area.

  • According to an analysis by Media Partners Asia (MPA), the Indian premium video-on-demand (VOD) category, driven by advertising and subscriptions, generated $1 billion (approximately Rs 86,000 crore) in revenue in H1CY24. This marks a 38% increase from $760 million (about Rs 62,000 crore) during the same period in 2023. Local content accounted for 86% of premium VOD engagement, with demand led by live sports and local drama and romance.

  • MSTC announces that the Cabinet Committee on Economic Affairs (CCEA) approves Japan-based Konoike Transport Company as the buyer of its subsidiary, Ferro Scrap Nigam, with a winning bid of Rs 320 crore.

  • Emkay downgrades SBI Cards and Payment Services to 'Sell' with a lower target price of Rs 700 per share. This indicates a potential downside of 11.5%. The brokerage believes the company's elevated stress on the cards business combined with the regulatory restrictions on unsecured loans will hurt growth. It expects the company's net interest income (NII) to grow at a CAGR of 22% over FY25-27.

  • Indostar Capital Finance rises sharply to a new 52-week high of Rs 343 after the board approves the sale of its subsidiary, IndoStar Home Finance, to Witkopeend B.V. for Rs 1,750 crore.

  • Gauri Jauhar from S&P Global notes that energy giants like Reliance and Adani are significantly investing in the new energy sector. Major companies are expected to invest a total of $57 billion (approximately Rs 4.8 lakh crore) by 2030. She also points out that considerable investments are being directed toward biofuels, green hydrogen, and carbon sectors, as returns on fossil fuel investments currently exceed those in new energy.

  • Motisons Jewellers' board of directors approves the sub-division/split of one equity share with a face value of Rs 10 each, into ten equity shares having a face value of Re 1 each. The board sets the record date as November 9.

  • Power Grid Corp of India is rising as it secures a bid to set up an interstate transmission system for power evacuation from the renewable energy zone in Khawda, Gujarat. The company will establish a 765/400/220 kV gas insulated substation (GIS), 765kV & 400kV DC transmission lines, and associated bays extension works as part of the project.

  • Phoenix Mills' subsidiary, Casper Realty, emerges as the highest bidder for two city-centre plots in Mohali, Punjab, with a combined bid of around Rs 891 crore. These plots, totalling 13.1 acres, are located in Sector 62, YPS Chowk, and were auctioned by the Greater Mohali Development Area Authority (GMADA).

  • Reports indicate that the Adani Group is planning a major acquisition strategy, with intentions to invest $5-7 billion over the next six months. The company aims to focus on acquiring firms in sectors like cement, airports, defence, ports, power, and consumer goods this financial year.

  • IIFL Finance surges as the Reserve Bank of India (RBI) lifts the restrictions on its gold loans business. The RBI had previously imposed these restrictions on March 4 which banned the lender from sanctioning, disbursing, assigning, securitising, or, selling any of its gold loans.

  • AU Small Finance Bank partners with Niva Bupa Health Insurance to offer health insurance to its customers. Through this partnership, new and existing customers, including those from former Fincare SFB branches, can access Niva Bupa’s health, personal accident, and critical illness plans at 2,414 locations in India.

  • IDFC First Bank is rising as it receives approval from the Reserve Bank of India (RBI) to reappoint V Vaidyanathan as its Managing Director (MD) and Chief Executive Officer (CEO) for the next three years effective from December 19.

  • Reliance Infrastructure rises as its board approves raising Rs 3,014 crore through a preferential share issue to promoters and non-promoters for business expansion. The company is also seeking shareholder approval to raise up to Rs 3,000 crore through a qualified institutional placement.

  • Nifty 50 was trading at 25,497.25 (81.5, 0.3%) , BSE Sensex was trading at 83,545.35 (360.6, 0.4%) while the broader Nifty 500 was trading at 23,955 (101.1, 0.4%)

  • Market breadth is highly positive. Of the 1,923 stocks traded today, 1,470 showed gains, and 414 showed losses.

Riding High:

Largecap and midcap gainers today include Max Healthcare Institute Ltd. (1,067.95, 8.4%), Tube Investments of India Ltd. (4,291.95, 7.9%) and Macrotech Developers Ltd. (1,395.85, 7.1%).

Downers:

Largecap and midcap losers today include Au Small Finance Bank Ltd. (731.30, -2.8%), Muthoot Finance Ltd. (1,989.65, -2.3%) and Grasim Industries Ltd. (2,678.25, -2.2%).

Volume Rockets

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

Top high volume gainers on BSE included Concord Biotech Ltd. (2,601.10, 15.6%), Prism Johnson Ltd. (219.54, 12.3%) and Cochin Shipyard Ltd. (1,846.05, 10%).

Top high volume losers on BSE were Pfizer Ltd. (5,456.90, -3.7%), Eris Lifesciences Ltd. (1,366.70, -3%) and Endurance Technologies Ltd. (2,458.45, -2.8%).

Asahi India Glass Ltd. (777.55, 9.8%) was trading at 34.4 times of weekly average. Jindal Worldwide Ltd. (361.30, 4.2%) and Minda Corporation Ltd. (559.60, 7.6%) were trading with volumes 21.3 and 19.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

37 stocks overperformed with 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Finserv Ltd. (1,916.80, 1.4%), Bajaj Holdings & Investment Ltd. (11,163.40, 3.7%) and Bharti Airtel Ltd. (1,711.75, 2.8%).

Stocks making new 52 weeks lows included - Vodafone Idea Ltd. (10.47, 0.9%) and Gujarat Ambuja Exports Ltd. (124.90, -2.8%).

11 stocks climbed above their 200 day SMA including IRB Infrastructure Developers Ltd. (63.08, 6.9%) and Tata Technologies Ltd. (1,114.70, 5.1%). 6 stocks slipped below their 200 SMA including PNC Infratech Ltd. (434.70, 0.0%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,660, 0%).

 
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The Baseline
19 Sep 2024
Singapore has become a major Indian investor | Screener: Rising stocks with growing FII investments
By Swapnil Karkare

Singapore, a rich, tiny nation of just 5.8 million people, has long had many Indian connections. It is the only country outside Sri Lanka with Tamil as one of its official languages. The iconic Singaporean fish head curry was invented by a Kerala chef. Our trade links are old: traders on the Singapore island were buying spices, pearls and even elephants from Indian merchants in the 10th century.

In recent years, this chaddi-buddy relationship has intensified. One sign of this: Singapore Airlines now flies to more destinations in India than anywhere else in the world, with eight cities on its route. PM Modi’s visit to Singapore in early September pushed for a closer partnership around industries like semiconductors, healthcare and manufacturing.

Singapore now ranks second only to the US among India's foreign institutional investors (FIIs) - as of August 2024, total Indian assets of Singapore-based FIIs crossed Rs. 7.7 trillion, which includes debt, equity and hybrid instruments.

In this week's Analyticks:

Best friends?: India and Singapore are tying themselves closer together

Screener: Rising stocks with FIIs increasing their stakes in the past eight quarters

India and Singapore find more reasons to work together

In FY 2024, India exported goods worth $14 billion to Singapore, with petroleum and bituminous products accounting for half of it. Changing demand-supply dynamics in Europe, led India to divert its diesel and jet fuel to Singapore and Australia. This turn increased the share of fuel exports from 37% in FY10 to 49% in FY24.

On the imports side, India bought goods worth over $21 billion, with electrical machinery the biggest segment. From FY10-24, exports to Singapore grew 5% annually (CAGR) while imports rose by 9%, leaving India with a trade deficit of $7 billion in FY24. Singapore ranks sixth in India’s total trade (exports + imports) while India ranks twelfth in Singapore’s trade.

Foreign direct investments shift in Singapore's favour

The cumulative FDI into India from Mauritius, the top country, stands at $175 billion. Singapore is at $150 billion and surging fast. The declining attractiveness of Mauritius is clearing the way for Singapore to become the top foreign investor in India in a few years.

Mauritian investments tend to be 'foreign' in name only - many businesses register themselves in Mauritius and operate in India to dodge taxes. Mauritius’ tax haven status has made it a transit point rather than a true source of investment. The infamous 2007 share transfer case of Vodafone, which routed investments through Mauritius, cemented its reputation for tax avoidance. In response, India plugged loopholes in its treaty with Mauritius in April 2017.

In FY17 and FY18, Mauritius invested $15 billion in India each year. But from FY19 onwards, this has plummeted to an average of $8 billion. Singapore, on the other hand, invested $15 billion annually on average during the FY19-24 period, becoming the top investor based on annual inflows.

Singapore has become a major FII investor

Singapore isn’t just shining in FDI. It also ranks second only to the US among top foreign institutional investors (FII). Here as well, Mauritius used to dominate a decade ago, holding 27% of total FII assets in India as of March 2012. Today, its share is close to 5%.

Besides the Singapore Government, Nalanda Capital and Amansa Capital are the two major Singapore-based funds investing in India. Nalanda’s portfolio value as on June 2024 was $5 billion (Rs. 45k crore) and that of Amansa’s was $2.5 billion (Rs. 21k crore). 

Which stocks are Singaporean investors buying?

Nalanda owns shares in 24 companies, and its top investments by holding value include Havells, AIA Engineering, Thermax, Page Industries, Supreme Industries, Info Edge, Berger Paints, MRF, Ratnamani Metals & Tubes, and Amara Raja Energy & Mobility.

Amansa has invested in 22 companies and top 10 constitutes Trent, SRF, Eicher Motors, Cyient, Bharat Forge, Sundram Fasteners, Intellect Design Arena, V-Mart, Poonawalla Fincorp, and Fortis Healthcare.

But Singapore’s role in India’s financial markets is beyond private wealth management firms or hedge funds. The government’s involvement is significant. It is the largest FII and the eighth-largest institutional investor in India. 

The Government of Singapore’s portfolio value was close to $32 billion (Rs. 270k crore) as of June 2024. It has invested in 57 companies. Its top investments include Reliance Industries, HDFC Bank, ICICI Bank, Bajaj Finance, Bharti Airtel, L&T, Infosys, Shriram Finance, M&M and NTPC.

Apart from the government, which invests through GIC, a sovereign fund of Singapore, two other government agencies manage investments. They are the Monetary Authority of Singapore, the central bank, and Temasek Holdings. 

The Monetary Authority of Singapore’s portfolio value was over $600 million (Rs. 5k crores). It has invested in 6 companies: Shriram Finance, Max Healthcare, Godrej Properties, Sona BLW Precision Forgings, Affle, and Sapphire Foods.

Temasek Holdings’ net portfolio value as of March 2024 was $20 billion. Its website and news sources suggest that it holds HDFC Bank, ICICI Bank, Manipal Health (unlisted), NSE India (unlisted), Schneider ElectricandZomato, to name a few. Last year, it had announced that it would invest $10 billion over the next three years.

Analysing the Government of Singapore's investments

The Singapore government’s Indian portfolio has favoured the Banking & Finance sector, making up one-third of its total investments. Other prominent sectors include Oil & Gas, Cement & Construction, Software and Auto.

Reliance Industries and HDFC Bank have the lion’s share in its portfolio – accounting for 10% each. However, the actual stakes are 1% in Reliance Industries and 2% in HDFC Bank. The highest stakes were in Samhi Hotels and Sapphire Foods, it holds 8% in these companies.

The Singapore government has increased its shareholding in Sapphire Foods, Max Healthcare, Sona BLW Precision Forgings, Bharti Airtel and M&M in the past year while reducing it in Petronet LNG, Phoenix Mills, Syngene International, Prestige Estates Projects and L&T.

In the last couple of quarters, the government has also added a few new names to its portfolio, like Data Patterns, Entero Healthcare Solutions, Timken, Apollo Hospitals, Indigo, etc.  These changes reveal a preference towards healthcare, technology, and capital and intermediary goods.


More investments in the pipeline

Given its historically strong relationship and the recent investment roadshow in Singapore, India is at a sweet spot in receiving investments. A moneycontrol report notes that Singaporean companies have already committed investments over Rs. 5 trillion (~ $60 billion) in the coming years. The Indian High Commission in Singapore has been working on getting more investments in India's infrastructure, renewable energy, and advanced technology sectors. 

It will be interesting to see if the sum of all these parts becomes something significant. As Rajat Verma, Head of Institutional Banking at DBS Bank suggests, this partnership could create an international shift, as the industry relationships deepen.

Screener: Rising stocks over the past year with increasing FII holding in the past eight quarters

Banking and IT stocks see the highest rise in FII holdings

As we enter the last couple of weeks of Q2FY25, we take a look at stocks that saw an increase in their foreign institutional investor (FII) holdings during the past two years. This screener shows stocks rising over the past year, where FIIs increased their stake over  the past eight quarters.

The screener is dominated by stocks from the software & services, banking & finance, automobiles & auto components and general industrials sectors. Major stocks that appear in the screener are Zomato, 360 One Wam, Max Healthcare, PB Fintech, ITC, Computer Age Management Services, Sona BLW Precision Forgings and Max Financial Services.

Zomato’s FII holding increased the most, by 44.1 percentage points in the past eight quarters, while its stock price also surged by 163.7% over the past year. The Government of Singapore was the largest buyer, acquiring a 2.02% stake in this internet & software services company followed by Camas Investments (bought a 1.9% stake) and Canada Pension Plan Investment Board (bought a 1.3% stake). Public holding dropped significantly to 28.6% in June 2024, down from 84.6% in June 2022, suggesting that public investors are likely the primary sellers due to their reduced stake.

Max Healthcare saw its FII holding rise by 33.7 percentage points in the last two years, the stock has also surged by 62.9% over the past year. The Government of Singapore is the largest buyer in this case as well, acquiring over 6% stake. New World Fund Inc and Monetary Authority of Singapore also bought a 6% and 1.5% stake in this healthcare facilities stock. These shares were sold by public shareholders and DIIs, whose stakes declined from 6.6% to 3.9% and from 19.4% to 15.4%, respectively, between June 2022 and June 2024.

You can find some popular screeners here.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Sep 2024
Market closes flat, Power Mech Projects bags a Rs 865 crore order from Talwandi Sabo
By Trendlyne Analysis

Nifty 50 closed at 25,415.80 (38.3, 0.2%) , BSE Sensex closed at 83,184.80 (236.6, 0.3%) while the broader Nifty 500 closed at 23,853.95 (-44.7, -0.2%). Market breadth is overwhelmingly negative. Of the 2,272 stocks traded today, 568 were gainers and 1,679 were losers.

Nifty 50 closed higher after paring its gains from the morning session. The Indian volatility index, Nifty VIX, fell 6.7% and closed at 12.5 points. NTPC's subsidiary, NTPC Green Energy, files a draft red herring prospectus (DRHP) for an initial public offering (IPO) to raise Rs 10,000 crore. The IPO consists of an entirely fresh issue, with no offer-for-sale component.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. BSE Consumer Durables and S&P BSE Low Volatility Index were among the top index gainers today. According to Trendlyne’s Sector dashboard, Textiles Apparels & Accessories emerged as the best-performing sector of the day, with a rise of 0.9%.

Asian indices closed in the green. European indices are trading in the green, except for Portugal’s PSI, which is trading flat. US index futures are trading in the green, indicating a positive start to the trading session as the Federal Reserve cut rates yesterday by 50 basis points. Brent crude oil futures are trading higher.

  • Chambal Fertilisers & Chemicals sees a short buildup in its September 26 futures series, with open interest increasing by 24.4% and a put-call ratio of 0.6.

  • Siemens receives an observation letter from NSE with 'no adverse observations'. The letter approves the board's decision to demerge the company's energy business to Siemens Energy India (SEIL), a wholly owned subsidiary of Siemens.

  • Gujarat Mineral Development Corp gets the exploration and geological data for the Ambadongar rare earth deposit from the Atomic Minerals Directorate for Exploration & Research (AMD). The company has set a capex of Rs 2,200 crore for the exploration and mining, and Rs 1,300 crore to set up a rare earth elements (REE) processing plant.

  • Wockhardt rises to its 5% upper circuit as its investigational drug, Zaynich (Zidebactam/Cefepime), successfully treats over 35 critically ill patients with drug-resistant infections, including bacterial meningitis, in India and US.

  • A JM Financial report suggests that while a US Fed rate cut could benefit IT services, its impact will be complicated and moderated by economic uncertainties. The brokerage notes that any effects on corporate spending are likely to be gradual, making expectations of an immediate boost premature. Its top large-cap picks in the sector include Infosys, Tech Mahindra, and Wipro.

  • Power Mech Projects bags an order worth Rs 865 crore from Talwandi Sabo Power to establish, operate and maintain three 660 MW supercritical thermal plants.

  • DCX Systems rises as it secures a Rs 154.8 crore export order from Israel’s Elta Systems. The contract is to supply RF Electronic Modules, with completion expected within 12 months.

  • Bharti Airtel surges to an all-time high of Rs 1,711.1 as its B2B division, Airtel Business, partners with Cisco to launch Airtel Software-Defined (SD) Branch. This solution simplifies network management, enhances application performance, and provides greater flexibility and control over branch network infrastructure.

  • Axis Bank is nearing Yes Bank as the largest payment service provider (PSP) in the UPI ecosystem and may take the top spot by the end of September, according to National Payments Corporation of India (NPCI) data.

  • Zee Entertainment Enterprises falls sharply as Star India files for arbitration in the London Court of International Arbitration (LCIA) against the company after terminating the partnership between the companies. Star India plans to claim damages worth $940 million (approx. Rs 7,860.9 crore) from Zee.

  • NTPC rises sharply as its subsidiary, NTPC Green Energy, files a draft red herring prospectus (DRHP) for an initial public offering (IPO) to raise Rs 10,000 crore. The IPO consists of an entirely fresh issue, with no offer-for-sale component.

  • 360 One Wam's board of directors approves the issuance equity shares worth Rs 2,250 crore through a qualified institutional placement (QIP).

  • Brainbees Solutions' shares increase as global brokerages, including Morgan Stanley, initiate an overweight rating on the stock, while BofA assigns a buy rating with target prices of Rs 818 and Rs 770, respectively. They emphasize that the company is well-positioned to take advantage of India's expanding childcare market, with multiple growth and profitability improvement drivers in place. Morgan Stanley also notes potential value through Globalbees Brands.

  • Indian Renewable Energy Development Agency's board of directors approves a Rs 4,500 crore fundraising in multiple tranches through a qualified institutional placement (QIP), rights issue, preferential issue, or other modes.

  • GE T&D India falls sharply as its promoters, Grid Equipments and GE Grid Alliance B.V., plan to sell 3 crore shares (11.7% stake) through an offer for sale (OFS) at a floor price of Rs 1,400 per share. The promoters included an oversubscription option to sell an additional 3.9% stake, potentially increasing the total sale to 15.6%, with a total offer size of up to 4 crore shares.

  • Ion Exchange (India) rises sharply as it secures an order worth Rs 161.2 crore from Adani Power. The contract is for the engineering, procurement, and construction of water and environment management systems for the process and utility needs of two 800 megawatt (MW) units at the Raipur and Raigarh Ultra Super Power Projects.

  • Aavas Financiers' shares rise after its board approves the issuance of up to 63,000 non-convertible debentures (NCDs) totaling up to Rs 630 crore through private placement. The NCDs will have a tenure of five years from the reference date.

  • Aditya Birla Capital is rising as it receives approval from the Reserve Bank of India (RBI) for its proposed merger with Aditya Birla Finance.

  • Emkay maintains its 'Buy' call on Go Fashion with an upgraded target price of 1,600 per share. This indicates a potential upside of 23.8%. The brokerage believes the company's revenue will grow on the back of improvement in same-store sales growth (SSG) and strong cash flow. It expects the company's revenue to grow at a CAGR of 19.6% over FY25-27.

  • Lemon Tree Hotels rises as it signs a license agreement for a new hotel in Vijayawada, Andhra Pradesh, set to open in FY26. The property will be managed by Lemon Tree's wholly-owned subsidiary, Carnation Hotels. It will feature 44 well-appointed rooms, a restaurant, a banquet hall and a meeting room.

  • Telecom stocks like Vodafone Idea, Indus Towers, RailTel Corp of India, and Vindhya Telelinks fall sharply in trade following the Supreme Court ruling in the Adjusted Gross Revenue (AGR) case. The apex court upheld the AGR ruling against the telecom companies and upheld the quantum of the AGR demand. Goldman Sachs highlights that the market seems to be prematurely pricing in potential increases in telecom capex and free cash flow from reduced AGR dues.

  • Nazara Technologies touches a new 52-week high of Rs 1,117 per share as its board of directors approves fundraising worth Rs 900 crore through a preferential issue of shares at an issue price of Rs 954.3 per share. The board also approves the acquisition of an additional 19.4% stake in Absolute Sports for Rs 145.5 crore.

  • BL Kashyap & Sons is rising as it bags an order worth Rs 221 crore from SSS Realty for civil, structural, and allied works in Bangalore. This order win takes the company's order book to Rs 3,546 crore.

  • Power Grid Corporation of India rises as it secures the bid to build and operate an inter-state transmission system for evacuating power from Rajasthan REZ Phase IV (5.5 GW). The project includes a new substation at Kurawar and transmission lines, along with upgrades to existing substations in Madhya Pradesh.

  • Macrotech Developers rises as it enters an agreement with Ivanhoe Warehousing India to acquire digital infrastructure platforms, Bellissimo Digital Infrastructure Development Management, Palava Induslogic 4, and Bellissimo In City FC Mumbai 1. Macrotech will acquire a 70%, 66.7%, and 66.7% stake in the companies, respectively, for a total cash consideration of Rs 239.6 crore.

  • Markets are up today morning. Nifty 50 was trading at 25,549.65 (172.1, 0.7%), BSE Sensex was trading at 83,396.38 (448.2, 0.5%) while the broader Nifty 500 was trading at 24,051.20 (152.6, 0.6%).

  • Market breadth is surging up. Of the 1,948 stocks traded today, 1,437 were on the uptick, and 467 were down.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (1,877.45, 4.0%), United Breweries Ltd. (2,130.50, 4.0%) and Au Small Finance Bank Ltd. (752.50, 3.9%).

Downers:

Largecap and midcap losers today include Vodafone Idea Ltd. (10.38, -19.5%), Indus Towers Ltd. (389.80, -9.0%) and Torrent Power Ltd. (1,,842.35, -4.7%).

Volume Rockets

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

Top high volume gainers on BSE included KPR Mill Ltd. (934.95, 8.8%), Rainbow Childrens Medicare Ltd. (1386.25, 7.3%) and Garware Technical Fibres Ltd. (3983.40, 6.9%).

Top high volume losers on BSE were Vodafone Idea Ltd. (10.38, -19.5%), Indus Towers Ltd. (389.80, -9.0%) and Chambal Fertilisers & Chemicals Ltd. (478.85, -8.1%).

Sunteck Realty Ltd. (571.65, 0.2%) was trading at 31.2 times of weekly average. Suven Pharmaceuticals Ltd. (1,179.50, 3.0%) and Asahi India Glass Ltd. (708.45, 5.2%) were trading with volumes 9.4 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks took off, crossing 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Bharti Airtel Ltd. (1,664.85, 0.6%), Britannia Industries Ltd. (6,134.50, 0.2%) and Cholamandalam Investment & Finance Company Ltd. (1,596.30, 0.4%).

Stock making new 52 weeks lows included - Vodafone Idea Ltd. (10.38, -19.5%).

4 stocks climbed above their 200 day SMA including Procter & Gamble Hygiene & Healthcare Ltd. (16,659.85, 0.7%) and IndusInd Bank Ltd. (1,484.75, 0.3%). 22 stocks slipped below their 200 SMA including IIFL Finance Ltd. (495.95, -6.2%) and Data Patterns (India) Ltd. (2,526.90, -4.8%).

 
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The Baseline
18 Sep 2024
Five stocks to buy from analysts this week - September 18, 2024
By Divyansh Pokharna

1. Pricol:

Emkay reiterates its ‘Buy’ rating for this auto components manufacturer, setting a target price of Rs 600, a potential upside of 22.6%. Pricol currently allocates ~4% of its sales to R&D and has formed key partnerships, including with the Chinese firm TYW for developing e-cockpits and Sibros for telematics, to advance its product offerings. 

The company anticipates growth in its disc brake segment, where it has won orders from major 2-wheeler OEMs and EV startups, with production set to begin soon. It aims to expand its revenue base to Rs 3,000 crore annually within three years, up from its current Rs 1,200 crore capacity.

Analysts Chirag Jain, Jaimin Desai, Nandan Pradhan and Omkar Rane highlight that the company will benefit from the growing use of advanced digital displays, such as touchscreens. The cost of these displays has tripled over the past five years and is expected to increase by another 50-60% in the next 2-3 years. Pricol is focused on adding new clients like Honda and Suzuki over the next 18-24 months, which will enhance its performance compared to the industry. The company appears in a screener of stocks outperforming their industry price change during the quarter.

2. Ashok Leyland:

Sharekhan maintains its ‘Buy’ rating on this commercial vehicles manufacturer with a target price of Rs 285. This indicates an upside of 20.8%. The analysts are positive about the medium and heavy commercial vehicles (MHCV) industry in H2FY25, expecting improvement over the first half of the year. The analysts say, “The outlook for the MHCV sector is improving as election-related uncertainties have eased, and government infrastructure spending is expected to gradually increase. Also, as the festive season approaches, high freight rates are expected due to rising demand.” 

Ashok Leyland (ALL) also anticipates growth in the MHCV segment due to a rise in replacement demand. The average age of trucks has increased to 10-11 years, up from the typical 7-8 years, highlighting a need for new vehicles. The growing acceptance of BS-VI trucks is expected to accelerate the replacement of older BS-IV models. The company is also focusing on improving its brand presence and expects a recovery in some of its international markets.

ALL plans to enhance its product portfolio by introducing six new light commercial vehicles (LCVs) in FY25. The company has seen progress in the bus segment with new orders from state transportation units. The analysts are upbeat about the increase in replacement demand and expect revenue and PAT CAGR of 5.5% and 13% respectively, over FY25-26.

3. PVR Inox:

Anand Rathi initiates a ‘Buy’ call on this movies & entertainment company with a target price of Rs 2,065, implying a potential upside of 23.2%. Analysts Shobit Singhal and Pranay Shah highlight that franchise movies are increasingly popular with audiences because they are familiar with the stories. The company expects Q3FY25 to surpass the record revenue of its best quarter, Q2FY24, which saw hits like Gadar-2, OMG-2, and Oppenheimer. Upcoming releases such as Pushpa-2, Singham Returns, Joker, and Lord of the Rings are anticipated to drive revenue growth in Q3.

PVR Inox has a durability score of 45 owing to a net loss in the past few quarters, but may have turnaround potential, backed by its momentum score of 64.2. The company plans to add 110-120 new screens in FY25, including 10-25% using asset-light models, where it earns a management fee of 8-9% of revenue and developers cover 70-80% of costs. The firm also plans to sell properties in Mumbai, Pune, and Vadodara, potentially raising Rs 300-400 crore to help reduce its current debt of Rs 1,700 crore.

Singhal and Shah expect improved occupancy and ticket rates for PVR Inox, driven by a strong content lineup and a growing number of screens. They believe high-quality content will succeed regardless of budget or star power. But the threat of streaming continues to loom over the stock.

4. Gulf Oil Lubricants India:

ICICI Securities retains its ‘Buy’ rating on Gulf Oil Lubricants India with a target price of Rs 1,659, suggesting an upside of 16.5%. Analysts Probal Sen and Hardik Solanki note that this oil marketing & distribution company may dip in volume growth in Q2FY25 due to distributor-level inventory build-up for Adblue (a diesel exhaust fluid) and slower demand in the lubricant business. Despite this, Gulf Oil is on track to achieve 2-2.5 times industry growth over the next two years supported by the company's expanding distribution, new product launches, and brand investments. 

Analysts Sen and Solanki project an improvement in margins to 13.2%/13.5%/13.5% for FY 25-27, up from the previous estimate of approximately 13.1%, supported by stable crude prices, premium product launches, and new segments. EV investments will provide diversification opportunities, cushioning the company from the internal combustion engine decline and are projected to generate Rs 7-8 billion in future revenues. The company is projected to achieve a 6-7% YoY growth in volumes for core lubricants, with revenue and EBITDA CAGR of 10.1% and 11.1%, respectively, over FY 25-27.

5. Granules India:

Motilal Oswal reiterates its ‘Buy’ rating on this pharmaceuticals company with a target price of Rs 680, indicating a potential upside of 24.2%. Analysts Tushar Manudhane, Akash Manish Dobhada and Viraj Shah highlighted recent United States Food and Drug Administration (USFDA) observations, including issues with equipment cleaning, air filters and non-dedicated equipment. The inspection also found problems with investigating out-of-specification results and managing documentation.

Analysts say that despite these concerns, the company has a solid regulatory track record with 24 successful USFDA inspections since 2009, including six at the Gagillapur facility. The management is addressing the issues raised by the USFDA and is working to resolve them within the required timeline.

Manudhane, Dobhada and Shah notes that the company recorded a 10% earnings CAGR over FY19-24. Analysts expect a 36% earnings CAGR over FY25-26 as the company focuses on building a niche pipeline in the oncology space, large volume products, innovative tech-based products and backward integration.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
18 Sep 2024
Market closes flat, Siemens receives BSE approval to demerge its energy business
By Trendlyne Analysis

Nifty 50 closed at 25,377.55 (-41, -0.2%) , BSE Sensex closed at 82,948.23 (-131.4, -0.2%) while the broader Nifty 500 closed at 23,898.65 (-71.3, -0.3%). Market breadth is overwhelmingly negative. Of the 2,274 stocks traded today, 724 were in the positive territory and 1,536 were negative.

Nifty 50 touched a new all-time high of Rs 25,482.2 before paring its gains in the afternoon session to close lower. The Indian volatility index, Nifty VIX, surged 6.2% and closed at 13.4 points. Hindalco Industries reportedly plans a capex of Rs 2,450 crore to set up a copper and e-waste recycling plant in Dahej and a copper tube manufacturing plant in Vadodara.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Financial Services and Nifty Bank were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 1.8%.

Asian indices closed mixed. European indices are trading lower, except for Germany’s DAX which is trading flat. US index futures are trading in the green, indicating an optimistic start to the trading session as analysts are expecting the Federal Reserve to cut interest rates by a more aggressive 50 bps today.

  • Relative strength index (RSI) indicates that stocks like Jubilant Pharmova, Himadari Specialty Chemicals, Godrej Industries, and Radico Khaitan are in the overbought zone.

  • Siemens receives an observation letter from BSE with 'no adverse observations'. The letter approves the board's decision to demerge the company's energy business to Siemens Energy India (SEIL), a wholly owned subsidiary of Siemens

  • Heritage Foods' board of directors approves setting up a new ice cream manufacturing facility in Telangana with an estimated capex of Rs 204 crore.

  • Awfis Space Solutions launches a new centre in Gujarat International Finance Tec-City (GIFT City), Gandhinagar. The centre offers 30,221 sq ft and is located on the 26th floor in Gift One Tower.

  • Nifty IT drops over 3% as Morgan Stanley points out that macroeconomic risks, including a potential U.S. recession, could impact the sector. However, the brokerage also stated that while valuations are not inexpensive, they are not in the 'sell zone' either.

  • Indian Hume Pipe Company announces plans to double the production capacity at its Walwa and Dhule factories in Maharashtra. The expansion in Walwa is expected to be completed by October 2024, and in Dhule by January 2025, requiring an investment of Rs 37.6 crore.

  • REC is rising as it signs a memorandum of understanding (MoU) with renewable energy (RE) developers for funding worth Rs 1.1 lakh crore for the next five years to develop solar and hybrid power projects.

  • Lupin signs a non-exclusive patent license agreement with Takeda Pharmaceutical to commercialize Vonoprazan Tablets in the Indian market. Lupin will market the drug as Lupivon in two strengths: 10 mg and 20 mg.

  • Zee Entertainment Enterprises denies Star India's claims regarding the termination of their cricket broadcasting agreement. Star India is pursuing $940 million (Rs 7,952.7 crore) in damages from the company in the London Court of International Arbitration.

  • Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power, secures a letter of award (LoA) for a 400 MW Wind-Solar Hybrid project from Maharashtra State Electricity Distribution Company (MSEDCL). The project includes an initial 200 MW capacity, with an additional 200 MW under the Greenshoe option, making it the largest renewable energy project in Maharashtra for TPREL.

  • Tata Consultancy Services signs a two-year partnership deal with Golden Arches Development Corporation (GADC), the master franchise holder of McDonald's in the Philippines. This partnership aims to standardize and digitize the IT operations for over 760 McDonald’s restaurants in the Philippines.

  • NTPC's joint venture (JV) with Nuclear Power Corp of India (NPCIL) receives the Indian government's approval to set up four 700 MW nuclear power plants in Rajasthan.

  • Morgan Stanley maintains its 'Overweight' rating on Bajaj Finance with a target price of Rs 9,000. The brokerage anticipates gradual improvement in the company’s standalone financials. They also view the valuations as attractive in relation to return on equity (RoE) and earnings per share (EPS) growth, projecting a 19% upside from current levels.

  • Restaurant Brands Asia rises sharply after 1.1 crore share (2.1% stake), worth Rs 113 crore, reportedly change hands in a block deal at an average price of Rs 105 per share.

  • Indo National announces the divestment of its entire 51% stake in Kineco for Rs 220 crore. The company plans to invest the funds in new-age enterprises, aerospace, defence industries, and the FMCG sector.

  • Reliance Power surges to its 5% upper circuit as it fully settles its obligations as a guarantor for Vidarbha Industries Power (VIPL). This results in the release and discharge of the corporate guarantee, undertakings, and all related claims tied to VIPL's outstanding debt of Rs 3,872 crore.

  • In FY24, proceeds from dividends and share buyback for individual promoters and prominent business families in India surpassed the Government of India’s earnings from listed central public-sector undertakings (CPSUs) and multinationals' earnings from their Indian subsidiaries. Collectively, these promoters earned approximately Rs 1.1 trillion, a slight increase of 0.2% from the previous year.

  • Hindalco Industries reportedly plans a capex of Rs 2,450 crore to set up a copper and e-waste recycling plant in Dahej and a copper tube manufacturing plant in Vadodara. The company expects a capex of Rs 2,000 crore for the Dahej plant with a capacity of 300-350 kilotonnes (KT) per annum, while the Vadodara plant has an estimated capex of Rs 450 crore with a capacity of 25,000 tonnes.

  • Dodona Holdings sells nearly 11 lakh shares (0.3% stake) in Trent, worth approximately Rs 803.2 crore, at average price of Rs 7,330 per share in a block deal. Siddharth Yog is the buyer in the transaction.

  • ICICI Securities retains its 'Buy' call on Gravita India with an upgraded target price of Rs 3,265 per share. This indicates a potential upside of 26.1%. The brokerage believes that the company is poised for medium-term growth owing to regulatory changes helping with the availability of scrap in the domestic market and its planned expansion in Europe. It expects the company's revenue to grow at a CAGR of 23.5% over FY25-26.

  • CRISIL notes that recent developments in Bangladesh have had a limited impact on India's trade, and future effects will depend on specific industry and sector nuances. However, prolonged disruptions could influence the revenue profiles and working capital cycles of certain export-oriented industries that rely on Bangladesh as a demand center or production hub.

  • Suraj Estate Developers rises sharply as LIC Mutual Fund - Flexi Cap Fund buys 2.8 lakh shares (or a 0.6% stake) in the company, for Rs 21.5 crore at an average price of Rs 758.9 per share, in a block deal on Tuesday.

  • Honasa Consumer enters a partnership with the Ministry of Defence to distribute its products to the Canteen Stores Department (CSD) across India.

  • Ceigall India rises sharply as it bags an order worth Rs 1,299.2 crore after emerging as the lowest bidder at an auction held by the National Highway Authority of India (NHAI). The order is to construct a 4 to 6 lane Southern Ayodhya Bypass.

  • Inox Wind rises sharply as it receives a letter of intent (LoI) from IGREL Renewables to execute a 550 megawatt (MW) wind project. Inox Wind will supply, install, and commission the Wind Turbine Generators (WTGs) and provide multi-year operations and maintenance (O&M) services after commissioning.

  • Nifty 50 was trading at 25,394.20 (-24.4, -0.1%) , BSE Sensex was trading at 82,964.56 (-115.1, -0.1%) while the broader Nifty 500 was trading at 23,962.15 (-7.8, 0.0%)

  • Market breadth is in the green. Of the 1,945 stocks traded today, 1,055 were gainers and 835 were losers.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (1,932.90, 8.6%), Samvardhana Motherson International Ltd. (204.16, 4.7%) and Shriram Finance Ltd. (3,574.70, 4.4%).

Downers:

Largecap and midcap losers today include Oracle Financial Services Software Ltd. (11,259.50, -8.3%), MphasiS Ltd. (3,004.40, -5.5%) and Sona BLW Precision Forgings Ltd. (717.55, -3.7%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Graphite India Ltd. (586.35, 9.3%), HEG Ltd. (2,290.50, 8.6%) and Torrent Power Ltd. (1,932.90, 8.6%).

Top high volume losers on BSE were MphasiS Ltd. (3,004.40, -5.5%) and Abbott India Ltd. (27,783.05, -3.7%).

Alkyl Amines Chemicals Ltd. (2,367.05, 6.7%) was trading at 33.6 times of weekly average. Fine Organic Industries Ltd. (5,435.95, 4.5%) and Balaji Amines Ltd. (2,345.35, 1.9%) were trading with volumes 16.2 and 10.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks made 52 week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (11,764.65, -1.6%), Bharti Airtel Ltd. (1,654.90, -0.4%) and Cholamandalam Investment & Finance Company Ltd. (1,590.15, 1.0%).

6 stocks climbed above their 200 day SMA including Graphite India Ltd. (586.35, 9.3%) and Varroc Engineering Ltd. (564.45, 4.2%). 9 stocks slipped below their 200 SMA including Indian Bank (505.05, -2.8%) and TV18 Broadcast Ltd. (47.56, -2.4%).

 
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The Baseline
17 Sep 2024
By Satyam Kumar

Nifty50 hit an all-time high of 25,446 on Monday as India’s booming markets witnessed the fourth straight month of buying by foreign investors. The recent surge is driven by the likelihood that the US Fed will start the rate-cutting cycle tomorrow, September 18. Markets are rising due to expectations that the Fed will cut interest rates by 50 basis points (bps) rather than 25 bps as estimated earlier, which will lead to lower interest rates and boost flows into emerging markets.

Morgan Stanley Composite Index’s (MSCI) gauge of Indian shares is up 24% in 2024, in contrast to a 1.7% drop in a similar gauge for Chinese stocks. This has led to the rising influence of Indian stocks in the MSCI Global Standard Index, also known as the World Index. India currently holds a weightage of around 18%, second only to China, which has a weightage of approximately 25%. This marks a significant increase from levels below 10% at the start of 2021.

This chart of the week takes a look at FII & DII activity in the equity segment on a monthly basis over the past decade. We have compared the investing preferences of Indian and foreign investors and how they have fared over the past decade.

FIIs have almost quadrupled their investments in Indian equities over the past decade

Foreign institutional investors (FIIs) assets under management (AUM) in the equity segment stood at Rs 75.5 lakh crore, up from Rs 19.6 lakh crore at the start of 2015. Between January 2015 and September 2024, FIIs were net buyers in 68 out of 117 months and net sellers in the remaining months. This indicates that FIIs were net buyers in 58% of the total months over the past decade.

Over the past decade, FII's buy/sell decisions overlapped with positive and negative changes in the Nifty50 in 90 of the total 117 months. This implies that they bought whenever the markets rose and sold whenever the markets took a hit, and that too with an accuracy of 77%. This can be an interesting data point for traders and swing investors in their pursuit of timing the markets better. Another reason for this accuracy can be attributed to their higher stake of over 17% in the Indian equity markets. This results in their higher influence in the equity market, with prices moving in the direction they trade.

India following the SIP mantra, DIIs were net buyers in 84% of the total months over the past decade

Domestic institutional investors (DIIs) include entities like mutual funds, pension funds and insurance firms. Over the past decade, DIIs were net buyers in 98 of the total 117 months, while net sellers in the remaining months. On a monthly basis, they were net buyers in the market irrespective of where the market was headed. 

Central Depository Services’ annual report highlights rising investor confidence in the Indian equity market. This depository company currently has a market share of 76% as of March ‘24 with 11.6 crore investor accounts. This implies that the company has added new investors at a CAGR of more than 25%.  According to data released by the Association of Mutual Funds in India, retail investments via SIPs into mutual funds have increased at a CAGR of 24.1% over the past seven years.

Over the long term, both FIIs and DIIs have gained on their investments, thanks to the economic growth

According to Trendlyne’s Technicals, the broader equity market index, represented by the Nifty 500 index which consists of the top 500 listed Indian firms, has gained 273.8% over the past 10 years.

DIIs, even with their strategy of investing in markets consistently, rather than timing their investments like FIIs do, made outstanding returns. This is because India’s economic growth has consistently outperformed in comparison to its peers post-pandemic, highlighted by the GDP growth rate of 8.2% in FY24.

FIIs, on the other hand, have also gained on their investments significantly over the past years. The payoff has led them to consistently increase India’s weightage in their portfolio in comparison to other emerging market peers like Indonesia, South Korea, Thailand, etc. On top of that, foreign investors have witnessed a better risk-reward environment as the rupee has stabilized in comparison to the US dollar over the past few years. 

Stable political environment boosts investor confidence in the Indian equity market

FIIs divested over Rs 30,000 crore in the months before the election in June. However, they have re-entered the markets since then with consistent buying in the following months, as the BJP-led NDA alliance formed a government with Narendra Modi re-elected as Prime Minister for a third term.

In recent years, India has made strides in improving the ease of doing business, with reforms in taxation, labour laws, and corporate governance. This stability has attracted increasing FII inflows, further strengthening the Indian equity market. Initiatives like Make in India, Digital India, and Atmanirbhar Bharat have fueled investments in manufacturing, technology, and innovation, promoting growth and attracting both domestic and foreign investors.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
17 Sep 2024
Market closes higher, Torrent Power signs MoU with Gujarat for a 5 GW project
By Trendlyne Analysis

Nifty 50 closed at 25,418.55 (34.8, 0.1%) , BSE Sensex closed at 83,079.66 (90.9, 0.1%) while the broader Nifty 500 closed at 23,969.90 (1.7, 0.0%). Market breadth is in the red. Of the 2,277 stocks traded today, 847 were on the uptrend, and 1,400 went down.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 25,418.6 points. The Indian volatility index, Nifty VIX, rose by 1% and closed at 12.6 points. Spicejet’s board of directors approved the qualified institutional placement (QIP) of shares worth Rs 3,000 crore

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red. S&P BSE Midsmallcap and S&P BSE Large MidCap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Forest Materials emerged as the best-performing sector of the day, with a jump of over 6.6%.

Asian indices closed mixed while European indices are trading in the green except Russia’s MOEX & RTSI. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red. UBS has lowered its oil price forecasts for 2024-2026 due to weaker global demand and a stable supply outlook. The Q4CY24 Brent crude forecast is cut to $75 per barrel from $83, reducing the 2024 average price to $80 per barrel.

  • Money flow index (MFI) indicates that stocks like Glenmark Life Sciences, Jubilant Pharmova, Gujarat Fluorochemicals, and Radico Khaitan are in the overbought zone.

  • BLS International Services falls sharply as 55 lakh share (1.3% stake), worth Rs 224 crore, reportedly change hands in a block deal at an average price of Rs 408 per share.

  • Firstsource Solutions announces a collaboration with Microsoft to deliver advanced digital transformation services globally. The partnership utilizes Azure OpenAI Service and other tools to provide AI-powered solutions, enhancing innovation and efficiency across industries.

  • Nuvoco Vistas rises sharply as 45 lakh share (1.2% stake), worth Rs 158 crore, reportedly change hands in a block deal at an average price of Rs 352 per share.

  • Ahead of the festive season beginning in October, the Open Network for Digital Commerce (ONDC) informs network players via a memo that the maximum incentive they can claim this month is Rs 40 lakh. This represents an 84% reduction from the Rs 2.5 crore limit available in the previous month.

  • Veefin Solutions rises sharply as it announces its third acquisition in digital lending platform EpikIndifi, worth Rs 125 crore. The acquisition offers solutions in digital supply chain finance, identity verification, trade securitisation, and automated AR/AP services. The company's three recent acquisitions are valued at Rs 400 crore.

  • DCX Systems surges to its 5% upper circuit as its subsidiary, Raneal Advanced Systems, receives an industrial license from the government to manufacture defence electronic systems. The company will produce microwave submodules for command and guidance units for missile subsystems, avionics & defence electronic equipment, and radar systems.

  • Torrent Power surges as it signs a memorandum of understanding (MoU) with the Government of Gujarat for a 5 gigawatt (GW) solar, wind or solar-wind hybrid project in the Dwarka District of Gujarat.

  • Sharekhan maintains a 'Buy' rating on ITC with a target price of Rs 595. The brokerage highlights that the company is on a steady earnings growth path, with the core cigarette and non-cigarette FMCG businesses anticipated to maintain consistent performance. Additionally, a recovery is expected in the paperboard, paper, and packaging (PPP) sector in the coming quarters.

  • Reliance Infrastructure rises sharply as its board of directors is set to meet on Thursday to consider fundraising through preferential issue, qualified institutional placement (QIP), rights issue, or other modes.

  • P N Gadgil Jewellers' shares debut on the bourses at a 72.9% premium to the issue price of Rs 480. The Rs 1,100 crore IPO received bids for 59.4 times the total shares on offer.

  • RailTel Corporation of India receives a work order worth Rs 48.7 crore from Health Insurance TPA of India to develop an integrated claims management solution portal and mobile application.

  • India's WPI inflation eased to a 4-month low of 1.3% in August, down from 2% in July, due to a slowdown in major sub-indices like manufactured products. Additionally, prices for fuel and power also contracted.

  • JBM Auto's subsidiary, JBM ECOLIFE Mobility, secures $100 million (approx. ?838.3 crore) in strategic funding from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). The funds will support the supply and operation of electric buses across several states in India under the Gross Cost Contract (GCC) model.

  • Motilal Oswal upgrades Godrej Agrovet to a 'Buy' call with an improved target price of Rs 970. This indicates a potential upside of 20%. The brokerage believes that the company's profitability will improve across segments, owing to the segment-specific measures taken to improve efficiency. It expects the company's net profit to grow at a CAGR of 37.4% over FY25-26.

  • JK Tyre & Industries is falling as its board of directors approves its merger with its subsidiary, Cavendish Industries. As per the merger agreement, shareholders of Cavendish will receive 92 shares of JK Tyre for every 100 shares owned in Cavendish.

  • Phillip Capital initiates coverage with a 'Buy' rating on Bajaj Housing Finance and a target price of Rs 210. The brokerage emphasizes the company's promising outlook, especially in the Rs 50 lakh home loan segment, which makes up 65% of India's home loan market. It anticipates the company's balance sheet will surpass Rs 2 lakh crore within three years and expects credit costs to stay low in the near term.

  • Panacea Biotech surges to its 52-week high of Rs 349.8 per share as it enters a settlement with Sanofi Healthcare India concerning a patent infringement case filed in the Delhi High Court (HC). Panacea had previously filed a suit before the Delhi HC looking to restrain Sanofi from marketing its hexavalent vaccine which would infringe on Panacea's vaccine, EasySix.

  • Sandur Manganese & Iron Ores surges as its board of directors approves the issuance equity shares worth Rs 1,000 crore through a qualified institutional placement (QIP).

  • Ola Electric rises sharply as Godman Sachs reportedly initiates coverage with a 'Buy' call and a target price of Rs 160 per share. This indicates a potential upside of 44%. The brokerage believes that the company is well-positioned for long-term growth in the electric two-wheeler segment. It expects the company's revenue to grow at a CAGR of 40% over FY25-30.

  • In August, mutual funds, benefiting from record SIP inflows, invested over Rs 6,900 crore in eight IPOs. The biggest investment by mutual funds was in Brainbees Solutions with 4.21 crore shares worth Rs 2,810 crore. Most mutual fund investments in the primary market were made through anchor investments in public offerings.

  • Tata Motors falls sharply as 1.9 crore share (0.4% stake), worth Rs 1,758 crore, reportedly change hands in a block deal at an average price of Rs 970 per share.

  • Indo Count Industries is rising as its subsidiary, Indo Count Global, acquires an 81% stake in US-based quilt manufacturer, Fluvitex USA, for a cash consideration of $19.6 million (approx. Rs 164.6 crore). Indo Count also has the option to buy the remaining 19% stake in Fluvitex for $4.6 million (approx. Rs 38.6 crore) in the next five years.

  • Edelweiss Employees Welfare Trust sells 27.5 lakh shares (0.3% stake) in Edelweiss Financial Services, worth approximately Rs 34.1 crore, at an average price of Rs 124 per share in a block deal. Whiteoak Capital Asset Management is the buyer in the transaction.

  • Spicejet surges to its 52-week high of Rs 79.9 per share as its board of directors approves the qualified institutional placement (QIP) of shares worth Rs 3,000 crore at a floor price of Rs 64.8 per share.

  • Nifty 50 was trading at 25,366.95 (-16.8, -0.1%), BSE Sensex was trading at 82,955.20 (-33.6, 0.0%) while the broader Nifty 500 was trading at 23,958.75 (-9.5, 0.0%).

  • Market breadth is even. Of the 1,952 stocks traded today, 941 were on the uptrend, and 956 went down.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (649.65, 4.6%), Max Healthcare Institute Ltd. (964.70, 3.6%) and Indraprastha Gas Ltd. (548.10, 3.4%).

Downers:

Largecap and midcap losers today include Biocon Ltd. (375.85, -3.9%), Suzlon Energy Ltd. (82, -3.2%) and Hindustan Aeronautics Ltd. (4,458.50, -3.0%).

Movers and Shakers

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

Top high volume gainers on BSE included Blue Dart Express Ltd. (9,253.65, 12.4%), Century Plyboards (India) Ltd. (885.05, 10.4%) and BASF India Ltd. (7,167.85, 4.9%).

Top high volume losers on BSE were BLS International Services Ltd. (408.20, -4.1%), Endurance Technologies Ltd. (2,407.80, -1.3%) and PCBL Ltd. (500.60, -0.9%).

Nuvoco Vistas Corporation Ltd. (365.35, 4.2%) was trading at 58.7 times of weekly average. Mahanagar Gas Ltd. (1,909.95, 4.9%) and Indraprastha Gas Ltd. (548.10, 3.4%) were trading with volumes 14.2 and 12.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

39 stocks made 52 week highs,

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (7,008.05, -0.3%), Bajaj Auto Ltd. (11,950.30, 2.2%) and Bharti Airtel Ltd. (1,661.75, 1.6%).

5 stocks climbed above their 200 day SMA including Action Construction Equipment Ltd. (1,366.05, 3.4%) and Tamilnad Mercantile Bank Ltd. (494, 3.1%). 12 stocks slipped below their 200 SMA including Kama Holdings Ltd. (2,634, -3.6%) and Ircon International Ltd. (231.75, -3.4%).