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LIVE: Decline in metal stocks drives market lower

Nifty 50 closed at 11119.55 (-55.2, -0.5%) , BSE Sensex closed at 37531.98 (-141.3, -0.4%) while the broader Nifty 500 closed at 9034.95 (-56.7, -0.6%)

Market breadth is highly negative. Of the 1668 stocks traded today, 518 were on the uptrend, and 1052 went down.

  • Auto stocks struggle, and shares of Ashok Leyland fell sharply today after the company announced that it will be suspending manufacturing operations at its various plants for up to 15 days this month.
  • Nifty Metal fell sharply in the afternoon, driving markets lower.
  • Zee Entertainment has been weighed down by the fact that high % of promoter stake has been pledged towards its debts. But the stock is among the top gainers today after management said that it plans to pay off debts in the next three months. 
  • Whirlpool and Dixon Tech hit fresh 52 week highs. Whirlpool is at its lifetime high.
  • TCS, Infosys will announce their earnings this week, with TCS results due on Thursday. This is likely to drive market sentiment in the coming days.
  • NIIT is up today on the notification of buyback. The company’s board has fixed Oct. 18 as the record date for determining the shareholders eligible to participate in the buyback of 2.68 crore of its equity shares.
  • Venkey's India, Sudarshan Chemicals, Britannia are seeing positive breakouts today
  • Markets are up in morning trade. Nifty 50 was trading at 11144.00 (-30.8, -0.3%) , BSE Sensex was trading at 37653.46 (-19.9, -0.1%) while the broader Nifty 500 was trading at 9054.15 (-37.5, -0.4%). Market breadth is in the red. Of the 1359 stocks traded today, 448 showed gains, and 831 showed losses.
Riding High:

Largecap and midcap gainers today include YES Bank Ltd. (45.35, 7.59%), Zee Entertainment Enterprises Ltd. (250.20, 5.64%) and Shriram Transport Finance Company Ltd. (1065.00, 4.45%).

Downers:

Largecap and midcap losers today include Aurobindo Pharma Ltd. (451.00, -20.53%), Indiabulls Ventures Ltd. (100.10, -9.98%) and Glenmark Pharmaceuticals Ltd. (285.30, -9.56%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Venky's (India) Ltd. (1596.00, 6.83%), Inox Wind Ltd. (32.65, 3.82%) and National Aluminium Company Ltd. (44.60, 3.12%).

Top high volume losers on BSE were Aurobindo Pharma Ltd. (451.00, -20.53%), Glenmark Pharmaceuticals Ltd. (285.30, -9.56%) and Indiabulls Integrated Services Ltd. (105.50, -5.00%).

Can Fin Homes Ltd. (382.20, -2.74%) was trading at 7.7 times of weekly average. Heritage Foods Ltd. (361.40, 0.43%) and Prestige Estates Projects Ltd. (270.00, -0.50%) were trading with volumes 4.7 and 4.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Whirlpool of India Ltd. (1996.00, 3.48%) and Adani Green Energy Ltd. (68.00, 4.37%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (162.50, -6.53%) and Allahabad Bank (26.60, -2.21%).

11 stocks climbed above their 200 day SMA including Britannia Industries Ltd. (2955.00, 3.86%) and Mahanagar Gas Ltd. (891.60, 1.55%). 19 stocks slipped below their 200 SMA including Caplin Point Laboratories Ltd. (392.00, -4.37%) and Allcargo Logistics Ltd. (100.70, -4.28%).

LIVE: Markets close lower ahead of RBI policy announcement
Market fell in today's trading ahead of RBI's policy meet, where the Central Bank is expected to cut its benchmark repurchase rate. Nifty 50 closed at 11315.35 (-44.6, -0.4%) , BSE Sensex closed at 38106.87 (-198.5, -0.5%) while the broader Nifty 500 closed at 9199.95 (-36.5, -0.4%). Market breadth is in the red. Of the 1646 stocks traded today, 586 were gainers and 971 were losers.


Analysts see investors waiting for results season before committing to adding to their portfolios. Concerns over macroeconomic data have fuelled questions of what the September quarter results will bring. 
About 15.1 lakh shares of State Bank of India changed hands in a large deal.
Stocks whose current prices are crossing key resistances include L&T; Technology Services, BPCL. Trent also gains in share price today.
Crude oil prices have moved into bearish territory, with Brent crude now trading below $58/barrel. 
Abbott India, Adani Green hit fresh year highs today.
YES Bank, Tata Motors and Godrej Properties among top gainers in markets today. YES Bank jumped after CEO Ravneet Gill clarified the bank's health in a conference call, noting no incremental stress in asset quality, and that the bank is in conversations with equity players on fundraising. 
Problems intensify at Cox & Kings as the company's auditors resign.
Markets are lower in morning trade, as worries about global growth and the health of domestic banks rise. Nifty 50 was trading at 11290.60 (-69.3, -0.6%) , BSE Sensex was trading at 38152.73 (-152.7, -0.4%) while the broader Nifty 500 was trading at 9181.60 (-54.8, -0.6%)


Market breadth is in the red. Of the 1394 stocks traded today, 467 were gainers and 845 were losers.

Riding High:

Largecap and midcap gainers today include YES Bank Ltd. (42.90, 34.06%), Bharat Petroleum Corporation Ltd. (531.00, 7.51%) and Mangalore Refinery And Petrochemicals Ltd. (51.50, 6.63%).

Downers:

Largecap and midcap losers today include Edelweiss Financial Services Ltd. (87.30, -9.86%), Godrej Industries Ltd. (379.75, -6.68%) and Piramal Enterprises Ltd. (1558.00, -6.64%).

Volume Shockers

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

Top high volume gainers on BSE included Indian Hotels Company Ltd. (154.85, 0.98%) and KPR Mill Ltd. (548.00, 0.40%).

Top high volume losers on BSE were Edelweiss Financial Services Ltd. (87.30, -9.86%), Godrej Industries Ltd. (379.75, -6.68%) and Triveni Turbine Ltd. (100.75, -3.59%).

Security and Intelligence Services (India) Ltd. (845.20, -1.93%) was trading at 3.8 times of weekly average. Sanofi India Ltd. (5815.00, -0.51%) and Crisil Ltd. (1325.00, -1.77%) were trading with volumes 3.5 and 3.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks took off, crossing 52 week highs, while 31 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (10974.00, 1.04%), Bharat Petroleum Corporation Ltd. (531.00, 7.51%) and ICICI Prudential Life Insurance Company Ltd. (468.10, 0.27%).

Stocks making new 52 weeks lows included - Andhra Bank (16.60, -0.60%) and Corporation Bank (14.45, -1.37%).

11 stocks climbed above their 200 day SMA including Allcargo Logistics Ltd. (109.70, 5.84%) and Aditya Birla Fashion and Retail Ltd. (209.50, 1.45%). 29 stocks slipped below their 200 SMA including Tamil Nadu Newsprint And Papers Ltd. (192.65, -5.15%) and Birla Corporation Ltd. (539.00, -4.02%).

Photo by Appaiah
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The Baseline
01 Oct 2019
Top Recommendations by Analysts this Week

by Ritmbarah Arora

Recent news on corporate tax cuts notwithstanding, stocks have been volatile and white-knuckled in the markets in the lead-up to results. Analysts however, still have their eye on key stocks that they believe will deliver value in the coming months. See all recommendations here.

  • Axis Direct Recommends NOCIL: Navi Mumbai headquartered NOCIL Ltd. offers basic organic chemicals engaged in the business of rubber chemicals. The products manufactured by the company are used by the tire industry and other rubber processing industries. Axis Direct expects the stock to be profitable as revenues and earnings are expected to grow at 9% and 13% CAGR over the FY19-21E.

The revenue and earnings growth according to the analysts, will be driven by the dominant position of NOCIL in the domestic rubber chemicals market, increase in rubber demand, robust capacity expansion, high entry barriers led by strong technical expertise and continuous R&D and foray into newer margin value added products. NOCIL recently started supplying to the US market with an initial export of 500KT of quantity. Axis Direct recommended buying of this stock when the price was Rs 104.55. Since then, the price of the stock has seen an incremental growth by 7.17% and is expected to reach a target of Rs137 after Sept 21E earnings, as per Axis Direct report. 

  • Motilal Oswal Recommends Bharti Airtel: New Delhi headquartered Bharti Airtel is a global telecommunications services company. Amidst the controversial tussle of Bharti Airtel and Reliance Jio, Motilal Oswal suggests to buy the shares of Bharti Airtel which targets a price of Rs420. Though the recommendation made at Rs356.40 has seen a decline in share price of 3.13% since then, analysts say that "the ARPU accretion from broadband subscribers is likely to grow with EBITDA CAGR of 12% over FY19-21 that will drive the stock price". Out of the incremental revenue growth, 70% is expected to flow to EBITDA. 
  • ICICI Securities Recommends Radico Khaitan: Headquartered at Rampur, Uttar Pradesh, Radico Khaitan Ltd. manufactures industrial alcohol, Indian Made Foreign Liquor (IMFL), country liquor and fertilizers. It is the fourth largest liquor company of India. ICICI Direct recommends a buy on this stock with a target of Rs400. The stock price has increased by 1.91% since the stock was recommended at Rs319.80.

The revenue of Radico Khaitan is expected to grow at 12% CAGR to Rs2646 crore in FY19-21E.EBITDA margins are expected to remain flat at 16.5% in FY21E with absolute EBITDA growing 12% to Rs437 crore. PAT is anticipated to grow at 24% in FY19-21 CAGR to Rs298 crore, higher than the expected growth on the EBITDA front. RoE and RoCE should remain healthy at 16.5% and 19.7% respectively in FY21.

  • Ashoka Buildcon Recommended by HDFC Securities: Nashik headquartered Ashoka Builcon Ltd. is an infrastructure development company. The company is engaged in the business of construction and maintenance of roads, supporting services to land support-operation of toll roads and others. HDFC Securities suggests buying this stock with a target price of Rs 220. Though the stock has witnessed a decline of 2.46% since recommendation was made at Rs109.70, HDFC Securities' point in its favor is that it maintained 25-30% standalone revenue growth for FY20E and Rs40-60 bn of new order inflows. Ashoka Buildcon is anticipated to deliver 19.6% FY19-21E revenue CAGR which will largely be driven by EPC revenue CAGR of 21.4%.
  • APL Apollo Tubes Recommended by IDBI Capital: Headquartered at Noida, APL Apollo Tubes Ltd. is a steel tube manufacturer engaged in the business of production of electric resistance welded (ERW) steel tubes. It is the only company which has pan-India presence with warehouses and branch offices in 29 cities. IDBI Capital favors the purchase of stocks in APL Apollo Tubes with a target price of Rs1,920. The stock was recommended at Rs1,309.35 post which the share value increased by 3.87%.

According to IDBI Capital analysts, APL has outperformed industry growth in the last decade by gaining market share from small and unorganised players which resulted in strong return ratio of around 19% over FY10-19. With expanded capacity in place, the volumes are expected to grow at a CAGR of 20% over FY19-21E. Also, its EBITDA are expected to grow at CAGR of 24%/45% over FY19-21E, respectively. 

Despite volatilty in markets, some analysts see short-term headwinds as a distraction from the long-term potential. Arun Kumar, Market Strategist at Reliance Securities comments, “Smart investors are nibbling on some of these stocks were value is relatively cheap with limited downside. From a time horizon of two to three years, one can accumulate some of the good stocks over the next few months."