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Trendlyne Marketwatch
09 Jul 2024
Market closes higher, Maruti Suzuki benefits from UP government's hybrid car fee waiver
By Trendlyne Analysis

Nifty 50 closed at 24,433.20 (112.7, 0.5%) , BSE Sensex closed at 80,351.64 (391.3, 0.5%) while the broader Nifty 500 closed at 23,067.35 (96.2, 0.4%). Market breadth is holding steady. Of the 2,169 stocks traded today, 1,041 showed gains, and 1,111 showed losses.

Indian indices extended their gains from the afternoon session and closed at an all-time highs. The Indian volatility index, Nifty VIX, rose 5%and closed at 14.3 points. Maruti Suzuki closed higher following the Uttar Pradesh government's decision to waive registration fees on hybrid cars to promote green technology.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Auto and Nifty Pharma were among the top index gainers today. According to Trendlyne’s Sector dashboard, Automobiles & Auto Components emerged as the best-performing sector of the day, with a rise of 1.7%.

Asian indices closed in the green except Hang Seng, FTSE China 50 and SET which closed flat. European indices are trading mixed. US index futures are trading in green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red.

  • HDFC Life Insurance Co and HDFC Asset Management Co rise by 3.8% and 1.8% respectively over the past week, ahead of their Q1FY25 results on July 15.

  • JK Cement sees a long buildup in its July 25 future series as its open interest rises 46.7% with a put-call ratio of 1.1.

  • Diamond Power Infrastructure rises as it bags an order worth Rs 899.8 crore from Adani Energy Solutions to supply new generation aluminum alloy conductors.

  • RPP Infra Projects surges to its all-time high of Rs 169.4 after securing orders worth Rs 310 crore. The contracts include building a new district jail in the Hapur and Jaunpur districts of Uttar Pradesh under the engineering, procurement, and construction (EPC) model.

  • Moody’s retains India’s CY24 GDP growth forecast at 6.8%. The firm notes growing domestic and international demand is boosting GDP growth across emerging markets (EMs), though the outcomes vary significantly among different countries. The agency anticipates inflation to decrease to 5.2% this year from 5.7% in 2023, further declining to 4.8% in the subsequent year.

  • Alembic Pharmaceuticals gets US FDA approval for bromfenac ophthalmic solution, used to treat postoperative inflammation and reduce ocular pain in cataract surgery patients. It has an estimated annual sales of $182 million.

  • Maruti Suzuki rises sharply following the Uttar Pradesh government's decision to waive registration fees on hybrid cars to promote green technology. The state's move includes strong hybrids under EV benefits, boosting vehicle sales.

  • H.G. Infra signs a memorandum of understanding (MoU) with Ultra Vibrant Solar Energy to acquire shares or voting rights in solar power plant projects, either by incorporating new companies or by purchasing shares in the existing company.

  • Mutual Funds' net equity inflows grow by 17% MoM to Rs 40,608.2 crore in June, according to data released by the Association of Mutual Funds in India (AMFI). Equity AUM of the industry stands at 25.4 lakh crore, while total AUM stands at Rs 61.2 lakh crore during the same period.

  • GM Breweries is rising as its net profit grows by 25.3% YoY to Rs 24.9 crore in Q1FY25. Its revenue increases by 3.7% YoY to Rs 600.6 crore during the quarter. It features in a screener of stocks with annual net profit growth higher than sector average net profit growth.

  • BOB Capital Markets retains 'Hold' on Marico with a higher target price of Rs 699 per share. This indicates a potential upside of 10.3%. The brokerage expects margin and destocking pressure in the indirect channel over the next 2-3 quarters. It expects the company's revenue to grow at a CAGR of 6.5% over FY25-26.

  • Rail Vikas Nigam rises sharply to its all-time high of Rs 619 as 1.4 crore shares (0.7% equity), amounting to Rs 827 crore, reportedly change hands in a block deal. The transaction was executed at an average price of Rs 585 per share.

  • Shares of rice milling firms like LT Foods and KRBL are surging following reports that the Indian government may lift restrictions on white rice exports with a fixed duty. The government is considering scrapping the 20% levy on parboiled rice shipments. India's rice exports fell by 21% to 2.9 million tonnes in the first two months of FY25, with non-basmati rice shipments down 32% to 1.93 million tonnes.

  • RateGain Travel rises sharply as it secures a multi-year partnership with Malaysia Airlines. This partnership will allow Malaysia Airlines to use RateGain’s AirGain platform to improve its pricing intelligence and competitive advantage.

  • Larsen & Toubro is rising as its precision engineering systems business bags an order worth Rs 1,000-2,500 crore from Hindustan Shipyard to construct two fleet support ships (FSS). The company also acquires a 100% stake in SiliConch Systems for a total consideration of Rs 183 crore.

  • Godrej Industries' promoters buy a 12.7% stake worth Rs 3,800 crore on Monday. The promoters include Nadir Godrej, Tanya Dubash, Nisaba Godrej, and Pirojsha Godrej.

  • A poll of analysts suggests Tata Consultancy Services' revenue will grow by 1.5% QoQ, reaching Rs 62,170 crore in Q1FY25 from Rs 61,237 crore in Q4FY24. They attribute this growth to the increased implementation of earlier secured contracts. However, they caution that this could be partly offset due to delays in the expansion of the BSNL deal and revenue reductions in the current discretionary portfolio.

  • Inox Wind is rising as it bags an order to supply its 3 MW wind turbine generators (WTGs) for a 200 MW wind project on a turnkey basis. The company will also provide operations and maintenance (Q&M) services post commissioning.

  • Utkarsh Small Finance Bank receives approval from the Reserve Bank of India (RBI) to reappoint Govind Singh as its Managing Director and CEO for three years, effective September 21.

  • Swan Energy surges as BlackRock, through its three affiliates, buys 45.6 lakh shares worth Rs 304 crore in the company via a block deal.

  • Citi maintains its ‘Sell’ rating on Persistent Systems with a target price of Rs 3,080. The brokerage expects strong growth in Q1 but sees a sequential decline in margins. It notes the management’s projection of a further decline in Q2 margins due to wage hikes. Citi anticipates the total contract value (TCV) will remain in a similar range as in previous quarters.

  • Dolly Khanna buys a 0.5% stake in Selan Exploration Technology in Q1FY25. She now holds a 1.6% stake in the company.

  • Ashish Kacholia buys a 0.2% stake in Dhabriya Polywood in Q1FY25. He now holds a 6.7% stake in the company.

  • Pitti Engineering surges to its all-time high of Rs 1,204 per share as its board of directors approves a qualified institutional placement (QIP) of shares worth Rs 360 crore. The board also sets the floor price at Rs 1,054.3 per share.

  • Torrent Power rises sharply as it signs a memorandum of understanding (MoU) with ARS Steels & Alloy International (ARS) and Torrent Urja 14 (TU14) to set up a 50 megawatt peak (MWp) solar power plant in Tamil Nadu.

  • Nifty 50 was trading at 24,356.30 (35.8, 0.2%) , BSE Sensex was trading at 80,066.19 (105.8, 0.1%) while the broader Nifty 500 was trading at 23,039.85 (68.7, 0.3%).

  • Market breadth is ticking up strongly. Of the 1,937 stocks traded today, 1,479 were gainers and 425 were losers.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (2,031.80, 7.8%), Maruti Suzuki India Ltd. (12,827.70, 6.7%) and Union Bank of India (139.78, 4.9%).

Downers:

Largecap and midcap losers today include Rail Vikas Nigam Ltd. (542.75, -4.1%), Schaeffler India Ltd. (4,298.40, -4.0%) and Indian Railway Finance Corporation Ltd. (195.85, -3.1%).

Volume Shockers

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

Top high volume gainers on BSE included Bombay Burmah Trading Corporation Ltd. (2,379.85, 18.6%), Jubilant Ingrevia Ltd. (590, 11.1%) and Gland Pharma Ltd. (2,031.80, 7.8%).

Top high volume loser on BSE was Atul Ltd. (6,790.60, -0.5%).

Mangalore Refinery And Petrochemicals Ltd. (232.82, 6.4%) was trading at 21.6 times of weekly average. Welspun Living Ltd. (160.62, 5.2%) and Indian Overseas Bank (64.54, 4.1%) were trading with volumes 13.1 and 7.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (937.10, 1.1%), Aurobindo Pharma Ltd. (1,331, 2.0%) and Bharat Electronics Ltd. (334.80, 0.1%).

12 stocks climbed above their 200 day SMA including KRBL Ltd. (331.20, 7.3%) and IndiaMART InterMESH Ltd. (2,724, 2.9%). 6 stocks slipped below their 200 SMA including IIFL Finance Ltd. (501.30, -2.0%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,637, -1.2%).

 
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Trendlyne Marketwatch
08 Jul 2024
Market closes flat, Larsen & Toubro bagged orders worth Rs 10,000-15,000 crore from Middle East
By Trendlyne Analysis

Nifty 50 closed at 24,320.55 (-3.3, 0.0%) , BSE Sensex closed at 79,960.38 (-36.2, -0.1%) while the broader Nifty 500 closed at 22,971.15 (-16.5, -0.1%). Market breadth is in the red. Of the 2,207 stocks traded today, 840 were on the uptick, and 1,347 were down.

Indian indices closed flat after switching between losses and gains throughout the day. The volatility index, Nifty VIX, rose 7.1% and closed at 13.6 points. Larsen & Toubro's renewables business bagged orders worth Rs 10,000-15,000 crore from a Middle East client to set up two solar power plants with a cumulative capacity of 3.5 GW.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Consumer Durables and Nifty PSU Bank closed lower. According to Trendlyne’s Sector dashboard, Fertilizers emerged as the top-performing sector of the day, with a rise of 2.2%.

Major European indices traded higher, while major Asian indices closed lower. Most US index futures traded flat or lower, indicating a mixed start to the trading session. Paramount and Skydance enter a merger agreement worth $8 billion earlier today.

  • Money flow index (MFI) indicates that stocks like Castrol India, Infosys, Craftsman Automation, and Garden Reach Shipbuilders & Engineers are in the overbought zone.

  • GRM Overseas rises sharply as it partners with Diplomat Georgia to expand its basmati rice brand 'Tanoush' in Georgia through Diplomat's distribution channel. According to the agreement, Diplomat Georgia will have exclusive rights to distribute GRM's products for two years.

  • CG Power & Industrial Solutions surges to its all-time high of Rs 783.8 per share as its board of directors appoints Amar Kaul as the new Managing Director and CEO for five years, effective July 25.

  • According to data from Grant Thornton, Q1CY24 sees 501 deals worth $21.4 billion, reaching a new quarterly volume record since Q2CY22. Mergers & acquisitions and private equity deals totaled 467, valued at $14.9 billion. This represents a 9% increase in volume but a 28% decrease in value compared to the previous quarter, as there were no mega-mergers such as the Reliance-Disney deal in Q1CY24.

  • HPL Electric & Power rises sharply as it signs a memorandum of understanding (MoU) with Guangxi Ramway Technology, China. The agreement focuses on local manufacturing through phased manufacturing, technical tie-up, and procurement for assembling latching relays in India.

  • ICICI Prudential Life Insurance's new business premium rises 14.1% YoY to Rs 1,511 crore in June, and the new business sum assured increases by 13.6% YoY to Rs 85,348 crore.

  • Rail Vikas Nigam surges to its all-time high of Rs 567.5 per share after 1.5 crore shares change hands in a block deal. This was driven by a positive market sentiment following an MoU with Delhi Metro Rail Corp and plans by the Railway Ministry to manufacture an additional 10,000 non-AC coaches to cater the growing demand.

  • Reports suggest that Blackstone and its consortium partners Abu Dhabi Investment Authority and Singapore’s GIC are in talks with Haldiram's promoters for a controlling stake in the business at a valuation of up to Rs 70,000 crore. The Haldiram's family is looking to sell only a 51% stake but the current discussions with Blackstone are likely to see a stake sale of around 74%.

  • Sharekhan retains its 'Buy' call on Bajaj Finance with a target price of Rs 9,300 per share, indicating a potential upside of 31.4%. The brokerage remains confident in the stock due to its strong AUM growth led by diverse product offerings, customer acquisition, and cross-selling abilities. It expects the company's revenue to grow at a CAGR of 15.8% over FY25-26.

  • NLC India is rising as it acquires its second commercial coal mine block, with a total coal reserve of approximately 1,377 million tonnes, at Machhakata, Odisha.

  • Larsen & Toubro's renewables business bags orders worth Rs 10,000-15,000 crore from a Middle East client to set up two solar power plants with a cumulative capacity of 3.5 GW.

  • Reports suggest that 39.2 lakh shares (around 1.3% equity) of Swan Energy, amounting to Rs 261 crore, have changed hands in a block deal.

  • Union Bank of India's Q1FY25 deposits rise 8.5% YoY to Rs 12.2 lakh crore, and advances increase by 11.5% YoY to Rs 9.1 lakh crore. The bank's domestic CASA deposits grow by 3.8% YoY.

  • Welspun Corp invests in its subsidiary, Bhargavi Renewable, a special purpose vehicle (SPV), to provide 15.5 MWp of ground-mounted solar power to the company and its subsidiaries. The company agrees to invest up to Rs 3.5 crore, holding up to 22.7% equity share capital.

  • Dabur India rises sharply following a positive Q1FY25 update. The company anticipates mid to high single-digit consolidated revenue growth, driven by a strong momentum in the food and healthcare segments.

  • Gillette India appoints Kumar Venkatasubramanian as Managing Director for a period of five years.

  • India's defence sector has surged by 200% over the past year, outpacing major sectors and benchmark indices. According to a Nomura report, defence spending has grown 10% annually in the past decade, exceeding the global average of 3%. The government aims for self-reliance in manufacturing, backing the sector with policy reforms and higher annual defense expenditure. Defence exports have soared from Rs 686 crore in 2013-14 to Rs 21,083 crore this year.

  • Coforge is rising as it enters a share purchase agreement (SPA) with Cigniti Technologies to buy an additional 76.4 crore shares (or a 28% stake) for Rs 1,072 crore.

  • IndusInd Bank's Q1FY25 net advances rise 16% YoY to Rs 3 lakh crore, and deposits grow by 15% YoY to Rs 3.5 lakh crore. The bank's CASA ratio stands at 39.9%.

  • Anil Kumar Goel cuts stake in Dwarikesh Sugar Industries to below 1% in Q1FY25. He held a 4.2% stake in the company in Q4FY24.

  • Investec initiates a ‘Buy’ rating on NHPC, Inox Wind, Kalpataru Projects, KEC International, and a ‘Hold’ on JSW Energy. The brokerage expects strong power demand until FY32. It notes the focus on thermal energy to meet rising demand, and expects the wind and transmission space to witness a fresh round of capex.

  • Dolly Khanna adds Tinna Rubber and Infrastructure to her portfolio in Q1FY25. She buys a 1% stake in the company.

  • Apcotex Industries is falling as it halts production operations at its manufacturing plant in Taloja due to heavy rainfall.

  • Titan's revenue grows by 9% YoY in Q1FY25, owing to improvements in the jewellery, watches & wearables, emerging businesses, and CaratLane segments. It appears in a screener of stocks with increasing return on capital employed (RoCE) over the past two years.

  • Man Industries (India) wins an order worth Rs 1,850 crore from an international oil and gas company to supply high value-added line pipes for a mega offshore project.

  • Nifty 50 was trading at 24,299.10 (-24.8, -0.1%), BSE Sensex was trading at 79,915 (-81.6, -0.1%) while the broader Nifty 500 was trading at 23,016.35 (28.7, 0.1%).

  • Market breadth is surging up. Of the 2,029 stocks traded today, 1,383 were on the uptrend, and 614 went down.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (565.90, 15.2%), One97 Communications Ltd. (472.35, 8.2%) and Indian Railway Finance Corporation Ltd. (202.02, 7.3%).

Downers:

Largecap and midcap losers today include Au Small Finance Bank Ltd. (642.70, -4.5%), Bank of Baroda (262.35, -4.2%) and Persistent Systems Ltd. (4,586.30, -3.9%).

Movers and Shakers

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (565.90, 15.2%), Rashtriya Chemicals & Fertilizers Ltd. (228.39, 12.0%) and Indian Railway Finance Corporation Ltd. (202.02, 7.3%).

Top high volume losers on BSE were Au Small Finance Bank Ltd. (642.70, -4.5%), Titan Company Ltd. (3,156.20, -3.5%) and Shoppers Stop Ltd. (766, -2.8%).

Metro Brands Ltd. (1286.05, 5.6%) was trading at 50.7 times of weekly average. Gujarat Mineral Development Corporation Ltd. (421.85, 5.1%) and Great Eastern Shipping Company Ltd. (1,343.20, 6.0%) were trading with volumes 13.8 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

47 stocks made 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (926.75, 0.5%), Aurobindo Pharma Ltd. (1,305.40, 0.1%) and BASF India Ltd. (5,599.15, 4.1%).

6 stocks climbed above their 200 day SMA including ITC Ltd. (443.60, 2.3%) and HDFC Life Insurance Company Ltd. (620.90, 2.2%). 7 stocks slipped below their 200 SMA including Au Small Finance Bank Ltd. (642.70, -4.5%) and Eureka Forbes Ltd. (477, -3.2%).

 
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The Baseline
05 Jul 2024
Five Interesting Stocks Today - July 5, 2024

1. Solar Industries India:

This industrial products company rose by 23.7% over the past week as its subsidiary Economic Explosives(EEL) launched three new explosives, SEBEX-2, SITBEX-1 and SIMEX-4 last week. These explosives are expected to improve the effectiveness of warheads, aerial bombs, underwater weapons etc. Reports suggest that the Indian Navy has completed certification tests for all three explosives and have given orders for the same. 

For FY24, the company’s net profit increased by 10.4% YoY to Rs 835.9 crore, while its revenue declined by 12.1% YoY due a Rs 40 crore hit from hyperinflation in Ghana and Turkey, and currency depreciation (55% in Q4FY24) in Nigeria. The stock shows up in a screener for stocks with strong momentum.

In FY24, the company’s order book surged by 74.2% YoY to Rs 5,129 crore from Rs 2,944 crore in FY23. The defense order book was at ~Rs 2,600 crore out of which Rs 1,499 crore (57.7%) were export orders. For FY25 the company’s management expects defense revenue to rise 3X and domestic explosives volume to rise by 15%. On the FY24 results Manish Nuwal, the Managing Director & CEO, is bullish about growth, saying: “In FY24, improved domestic business and increased defense sales boosted margins, achieving a record EBITDA of Rs 1,414 crore. We plan a Rs 800 crore capital expenditure in FY25 to expand production capacities, particularly in defense and explosives..” The company is investing in counter drone technology and rocket systems.

Solar Industries says that it is in the “final stages” of negotiations for securing orders for Pinaka (multi-barrel rocket launcher) from the Indian Army and is already supplying the Nagastra1 exploding drones to the Indian Army. 

ICICI Securities has given Solar Industries India a “Buy” rating, with a target price of Rs 13,250. The brokerage, noting the improved prospects, has raised its P/E multiple to 65x (earlier 55x) based on FY26 EPS, resulting in an upgraded target price from the previous level of Rs 11,000.

2. Larsen & Toubro (L&T):

This construction and engineering firm surged 6.6% in the past month after winning significant (Rs 1,000 to 2,500 crore) as well as large (Rs 2,500 to 5,000 crore) orders from ONGC, including pipeline replacements and new developments off India’s west coast. Its power transmission & distribution arm also won a significant order to build a 185MW solar plant.

In FY24, L&T posted a revenue growth of 20.9% YoY to Rs 2,25,271 crore, with net profit growth of 24.7% YoY at Rs 13,059 crore. Trendlyne’s Forecaster estimates revenue growth of 11% YoY in Q1 FY25. The company appears in a screener of stocks with highest FII holdings.

Order inflows for L&T surged 31.4% YoY to Rs 3,02,812 crore, with 54% being international orders, up from 38% a year ago. Its energy segment’s contribution to total order inflow increased from 13% in FY23 to 24% in FY24.CFO Shankar Raman said, “L&T expects a 10% growth in domestic order inflow for FY25 due to the government’s investment-first approach.”

Whole-time Director & President of Energy at L&T, Subramanian Sarma said, “I think all in all, in both our core markets in the Middle East and West Asia, as well as in India, we see a large pipeline in the next 6 to 12 months.” He also highlighted the company’s focus on energy transition and green development.

ICICI Direct maintains a ‘Buy’ rating on L&T because of the company’s focus on improving ROE to 18% by FY26 from 14.9% in FY24. They aim to achieve this through profitable bidding, on-time execution and monetising non-core assets. With a target price of Rs 4,300, L&T has a potential upside of 18.6%.

3. Star Health and Allied Insurance:

This general insurance company has risen by 10.7% over the past week after outlining its growth plans at its analyst day. The company aims to double its gross written premium (GWP) to Rs 30,000 crore and triple its profit after tax (PAT) to Rs 2,500 crore by FY28.

Star Health witnessed strong growth in FY24, with a 37% YoY increase in net profit to Rs 845 crore. The company’s GWP grew by 18% YoY, benefiting from a strong market share in retail health and focused efforts on the employer-employee group segment, particularly in SMEs and MSMEs. Investments in technology, such as AI-powered fraud detection, have led to improved claim turnaround times and operational efficiency.

During the year, it achieved a 40% growth in digital channels, with  customer-centric initiatives to improve retention and drive future growth.The company plans to expand its distribution network by adding 1 lakh agents by FY25, improving digital capabilities, and partnerships with banks, NBFCs, and corporate agents. Star Health has a strong solvency ratio of 2.2, supporting their financial strength and growth potential. CEO Anand Roy says, “We are focusing on balanced growth, splitting 50-50 between value and volume. We are expanding our agency network, digital channels, and strengthening group health. We expect a 15-25% price hike in FY25. Compared to peers, we hold a 33% market share and lead the retail health segment.”

Motilal Oswal maintains a "Buy" rating on the stock with a target price of Rs 730. This indicates a potential upside of 24.7%. The brokerage believes Star Health's focus on high-quality business, stricter underwriting standards, and planned price increases for key products position them well to achieve their growth targets.

4. Cello World:

This household products manufacturer rose 3.1% and touched a 52-week high of Rs 1,025 per share on Thursday. This comes after it announced the launch of its Rs 775 crore qualified institutional placement (QIP). Cello plans to issue 86.5 lakh equity shares at a floor price of Rs 896.9. 

The funds raised from the QIP issue will be used for various purposes, including investment in Cello Consumerware. The investment will help set up a new facility to produce stainless-steel bottles, plastic insulated ware, and household articles. Cello World will also use the funds to repay debt, and for working capital requirements.

Over the past month, Cello World has risen by 16.3%. During FY24, the company’s revenue grew by 11.3% YoY to Rs 2,000.3 crore, driven by growth in the consumer ware segment. The segment contributes 66.2% to the total revenue. Its net profit rose 24% YoY. 

Cello World leads in terms of market capitalization in the household products industry. The company’s peers include Carisyl and smaller players like Hardwyn India and Interiors & More. Its PE TTM stands at 63.7, compared to the industry’s 60.8.  

During FY24, the company launched a new facility in Rajasthan with an annual capacity of around 20,000 tonnes, to expand the glassware segment. The capex for the project is Rs 250 crore. It is targeting Rs 460–475 crore in revenue from glassware and opalware in FY25. Cello plans to premiumize some of its product lines and also expand its existing portfolio by developing a new range of products. For FY25, Cello targets a 15–17% revenue growth, with EBITDA margins around 24–26%.

Motilal Oswal believes consumption trends will remain muted in Q1 in the consumer discretionary space but sees a gradual volume recovery. The brokerage expects improved consumer demand later in the year, helped by a normal monsoon, improving macros, and continued government spending. 

The brokerage has a ‘Buy’ rating on Cello World with a target price of Rs 1,090. The brokerage is optimistic due to the company’s plans for new product launches, inorganic acquisitions in existing segments, and expansion of the distribution network. However, the company is in the PE Strong Sell Zone indicating that it is currently trading above its historical PE.

5. KEC International:

This heavy electrical equipment manufacturer has risen 29.2% in the past month and hit its all-time high of Rs 968.8 on Wednesday. The price rise came after multiple order wins. It received orders worth Rs 1,017 crore for a solar PV project in Rajasthan and an EPC project in the Middle East. It also got Rs 1,025 crore worth of orders from India, Africa, and the Americas., it also announced that it had won additional orders worth Rs 2,063 crore in multiple verticals varying from T&D (transmission and distribution), railways, and cables to civil business work.

KEC International’s current order book stands at Rs 38,000 crore, approximately 2x the FY24 revenue. It has a bid pipeline of Rs 1.3 lakh crore. The management also expects an order intake of Rs 25,000 crore in FY25. Chief Financial Officer Rajeev Aggarwal says, “We expect a 15% growth in turnover and guide for 7.5% margins for FY25 and close to double-digit margins in FY26.” The management expects its peak debt to remain at the current level of around Rs 5,000 crore; however, it expects the finance charge as a percentage of revenue to decline to 2.5% from over 3% in FY24.

Trendlyne Forecaster estimates KEC International’s net profit to rise 4.3% in Q1FY25. In FY24, the company’s profit grew by 97% YoY to Rs 346.8 crore, while its revenue improved by 15.3% YoY. Its EBITDA margin increased by 130 basis points YoY to 6.1%. However, it missed Trendlyne Forecaster’s net profit estimate by 7.9%.

Prabhudas Lilladher maintains a ‘Hold’ call on KEC International given its healthy execution momentum and revenue visibility from non-T&D segments. The brokerage expects growth to be driven by domestic T&D and civil businesses and expects international T&D and railways to remain soft in FY25. The company appears in a screener for stocks with increasing shareholding by foreign investors and/or institutions.

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

 
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Trendlyne Marketwatch
05 Jul 2024
Market closes flat, RVNL signs MoU with Delhi Metro Rail Corp
By Trendlyne Analysis

Nifty 50 closed at 24,323.85 (21.7, 0.1%) , BSE Sensex closed at 79,996.60 (-53.1, -0.1%) while the broader Nifty 500 closed at 22,987.65 (73.5, 0.3%). Market breadth is in the green. Of the 2,178 stocks traded today, 1,240 were on the uptrend, and 919 went down.

Indian indices closed flat after switching between losses and gains throughout the day. The volatility index, Nifty VIX, fell 1.2% and closed at 12.7 points. Rail Vikas Nigam touched an all-time high of Rs 498.5 as it signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corp (DMRC) to participate in upcoming projects in India and abroad as a project service provider.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty FMCG and Nifty PSU Bank closed higher.  According to Trendlyne’s Sector dashboard, Oil & Gas emerged as the top-performing sector of the day, with a rise of 2.2%. 

European indices traded flat or higher, while major Asian indices closed mixed. Most US index futures traded higher, indicating a positive start to the trading session. Investors look ahead to the release of the key monthly labor market report later today. Brent crude oil futures traded higher.

  • Relative strength index (RSI) indicates that stocks like Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders, Fine Organic Industries, and Persistent Systems are in the overbought zone.

  • Reliance Infrastructure's arm Mumbai Metro One(MMOPL) to reportedly receive a one-time settlement consideration from Maharashtra for its Rs 1,700 crore debt owed to lenders.

  • GPT Infraprojects surges to its all-time high of Rs 157 per share as its board of directors approves raising funds worth Rs 175 crore through a qualified institutional placement (QIP) or other modes.

  • Steel Authority of India rises sharply as the Steel Executives Federation of India proposes merging SAIL with Rashtriya Ispat Nigam (RINL), Ferro Scrap Nigam (FSNL), and Nagarnar steel plant to achieve capacity expansion targets and address resource challenges.

  • Bajaj Auto is rising as it launches the world's 1st CNG bike, 'Bajaj Freedom 125'. The starting price of the bike is Rs 95,000. The bike can operate on petrol and compressed natural gas (CNG), allowing riders to switch between the two.

  • Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 27.7X the available 1.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 5.9X the available 68.8 lakh shares on offer.

  • Bansal Wire Industries' Rs 745 crore IPO gets bids for 20.4X the available 2.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 10.6X the available 1.1 crore shares on offer.

  • Foreign institutional investors divest Rs 2,450.7 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 66,912.9 crore from foreign investors. Meanwhile, mutual funds are net buyers in the equity market, injecting Rs 4,532.8 crore during the same period.

  • Nirmal Bang initiates coverage on HUDCO with a target price of Rs 375. The brokerage notes that the company has a strong relationship with state governments and their agencies, which gives them a better chance to provide loans. It sees growth opportunities in the infra lending space, improvement in NIMs and strong capital position.

  • Ahluwalia Contracts (India) rises sharply to its all-time high of Rs 1,542.4 as it secures an order worth Rs 572 crore from the Airports Authority of India for the development of a new civil enclave at Darbhanga Airport in Bihar.

  • Thermax rises as its arm, Thermax Babcock & Wilcox Energy Solutions, wins an order worth Rs 513 crore from Jindal Energy Botswana to supply two 550 TPH boilers.

  • Rail Vikas Nigam rises sharply to its all-time high of Rs 455 as it signs a Memorandum of Understanding (MoU) with Delhi Metro Rail Corp (DMRC) to participate in upcoming projects in India and abroad as a project service provider.

  • Indian markets have surged 11% in the past month after the election results on June 4, led by renewed foreign investor interest. This marks the strongest post-election rally since May 2019 and May 2014. In May 2019, markets saw a slight 0.1% dip one month after elections, while in May 2014, they surged 5.8%. Sunil Subramaniam, MD of Sundaram Mutual Fund, predicts the Sensex could reach 90,000 by year-end, driven by increased foreign investments.

  • Kalyan Jewellers India rises as its India operations report a revenue growth of 29% YoY in Q1FY25, driven by healthy same-store sales growth. Its Middle East business also records a 16% YoY revenue increase. The company appears in a screener of stocks where mutual funds increased their holding in the past quarter.

  • RailTel Corp of India rises as it receives a work order worth Rs 23.9 crore from Webel Technology to upgrade and enhance existing IT and non-IT DC infrastructure at the West Bengal State Data Centre (WBSDC) in Monibhandar.

  • Raymond surges as it announces a vertical demerger of its real estate business into its wholly owned subsidiary, Raymond Realty. The new entity will seek automatic listing on stock exchanges, and each Raymond shareholder will receive one share of Raymond Realty for every share held in Raymond.

  • Titan Co is falling as Kotak Institutional Equities downgrades its rating to ‘Reduce’ and lowers the target price to Rs 3,075. The brokerage anticipates an increase in competitive intensity with the launch of Aditya Birla Group’s Novel Jewels. The brokerage sees multiple margin headwinds, and adds that the risk-reward is unfavourable. It cuts the EPS estimates by 5-6% for FY25-27E.

  • Mahindra Lifespace Developers rises sharply as it bags a third redevelopment project in Mumbai with an estimated gross development value (GDV) of Rs 1,800 crore. The company also acquires a land parcel in South Bengaluru with a potential GDV of Rs 250 crore.

  • HDFC Mutual Fund sells a 0.9% stake in Restaurant Brands Asia for approx Rs 50.3 crore in a bulk deal on Thursday.

  • Macrotech Developers' Q1FY25 pre-sales rise 20% YoY to Rs 4,030 crore. The collections for the quarter increase by 12% YoY to Rs 2,690 crore.

  • BEML hits a new 52-week high at Rs 5,488 today, following reports indicating the company's progress in delivering all ten trainsets by year-end and seeking a repeat order. This is crucial as the Indian Railways aims to complete trials of the first Vande Bharat sleeper rakes by August.

  • Radhakishan Damani buys a 2% stake in VST Industries in Q1FY25. He now holds a 34.7% stake in the company.

  • Sunil Singhania cuts stake in PSP Projects to below 1% in Q1FY25. He held a 1.5% stake in the company in Q4FY24.

  • Angel One is rising as its average daily turnover (ADTO) grows by 92.7% YoY to Rs 43.8 lakh crore in Q1FY25. Its client base also improves by 64.2% YoY to 2.5 crore, with total order numbers rising by 85.9% YoY in the same quarter. The company appears in a screener of stocks where mutual funds increased their holding in the past month.

  • Ircon International rises sharply as its joint venture (JV) with Paras Railtech and PCM Strescon Overseas Ventures bags an order worth Rs 750.8 crore from Rail Vikas Nigam. The orders are for the design, supply, installation, testing, and commissioning of broad gauge ballastless track (BLT), supply of ballast, and installation of track in Uttarakhand.

  • Nifty 50 was trading at 24,210.70 (-91.5, -0.4%), BSE Sensex was trading at 79,794.51 (-255.2, -0.3%) while the broader Nifty 500 was trading at 22,881.75 (-32.5, -0.1%)

  • Of the 1,950 stocks traded today, 1,310 were on the uptick, and 603 were down.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (491.05, 17.3%), YES Bank Ltd. (26.64, 11.2%) and CG Power and Industrial Solutions Ltd. (772.20, 6.9%).

Downers:

Largecap and midcap losers today include HDFC Bank Ltd. (1,648.10, -4.6%), PB Fintech Ltd. (1,379.45, -2.9%) and Vedant Fashions Ltd. (1,095.85, -2.7%).

Volume Shockers

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (491.05, 17.3%), YES Bank Ltd. (26.64, 11.2%) and Vardhman Textiles Ltd. (535.90, 10.5%).

Top high volume loser on BSE was Medplus Health Services Ltd. (669.30, -3.0%).

Ircon International Ltd. (307.75, 10.0%) was trading at 14.7 times of weekly average. Blue Star Ltd. (1,705.25, 6.2%) and Raymond Ltd. (3,229.50, 9.9%) were trading with volumes 14.5 and 14.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

59 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Aegis Logistics Ltd. (922, 3.5%), Aurobindo Pharma Ltd. (1,303.55, 3.9%) and BASF India Ltd. (5,379.10, 3.0%).

6 stocks climbed above their 200 day SMA including Westlife Foodworld Ltd. (853.60, 3.7%) and Hatsun Agro Products Ltd. (1,106.20, 2.5%). 3 stocks slipped below their 200 SMA including APL Apollo Tubes Ltd. (1,570, -0.7%) and Bajaj Finance Ltd. (7,138, 0.4%).

 
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Trendlyne Marketwatch
04 Jul 2024
Market closes higher, Mazagon Dock secures 'Navratna' status
By Trendlyne Analysis

Nifty 50 closed at 24302.15 (15.7, 0.1%) , BSE Sensex closed at 80049.67 (62.9, 0.1%) while the broader Nifty 500 closed at 22914.20 (63, 0.3%). Market breadth is in the green. Of the 2177 stocks traded today, 1138 showed gains, and 1014 showed losses.

Indian indices closed in the green, after seeing volatility throughout today's trading. The Indian volatility index, Nifty VIX, fell 2.7% and closed at 12.8 points. Mazagon Dock surged to it's all-time high of Rs 5,550 per share after it secured the 'Navratna' status. With this the company has joined the Rs 1 lakh crore market capitalization club.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green taking cues from the benchmark index. Nifty High Beta 50 and S&P BSE SME IPO 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 jump of over 2.8%.

Asian indices closed in the green while European indices are trading higher. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures are trading down by 0.4% as the soft U.S. economic data raised some concerns over long-term demand.

  • JK Cement sees a long buildup in its July 25 future series as its open interest rises 13.4% with a put-call ratio of 0.4.

  • UltraTech is reportedly in advanced talks to acquire Orient Cement (OCL). This move aims to strengthen UltraTech's market position in southern and western India amid the ongoing sector consolidation efforts.

  • Tata Motors' arm, Jaguar Land Rover's total wholesales in the UK rises 5.3% YoY to 6,421 units in June. Land Rover wholesales grow by 13.2% YoY to 5,246 units.

  • Power stocks have delivered strong performance due to power shortages amid weak monsoons, rising agricultural demand, and air-conditioning usage. The BSE Power index has surged 100% in a year, with 10 of 13 stocks yielding substantial returns. HSBC Securities expects valuations to stabilise post-summer amid capacity expansions, efficient management, La Nina (cooling of sea-surface temperatures), and a high base effect.

  • Mazagon Dock surges to its all-time high of Rs 5,550 per share after it secures the 'Navratna' status, granting it greater flexibility and autonomy in operations. This milestone also helps the company to join the Rs 1 lakh crore market capitalisation club.

  • Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 3.3X the available 1.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.8X the available 68.8 lakh shares on offer.

  • Bansal Wire Industries' Rs 745 crore IPO gets bids for 3.8X the available 2.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.7X the available 1.1 crore shares on offer.

  • Reliance Industries’ retail arm, Reliance Retail Ventures, reportedly plans to launch Chinese fast fashion brand Shein in India in the coming weeks. The products will be sold on Reliance Retail’s app and physical stores.

  • Sun Pharma rises sharply after the European Medicines Agency (EMA) validates the marketing authorization application (MAA) for Nidlegy, submitted with Philogen S.p.A. on June 3. Nidlegy is partnered with Sun Pharma to treat skin cancers in Europe, New Zealand, and Australia.

  • Gujarat Pipavav's containers carried falls 17.1% YoY to 165 20-foot equivalent units (TEU) in Q1FY25. Its container trains also decline by 8.2% YoY to 480 during the quarter.

  • ITD Cementation falls after its promoter, Italian Thai Development Public Co, which owns a 46.6% stake, considers divesting its investments in the company.

  • Max Estates is rising as it receives approval from the New Okhla Industrial Development Authority (NOIDA) to purchase an additional 20,000 square metres of floor area ratio (FAR) for its residential project in Noida.

  • Key vegetable prices are expected to remain high till September amid heatwaves and lower market arrivals and cool down as fresh supplies arrive. IMD forecasts July rainfall to exceed the long-term average by over 106%. Kaushik Das, Chief Economist at Deutsche Bank, expects food and beverage prices to increase by 2.4% MoM and 8% YoY in June, up from 0.7% and 7.9% in May, respectively. He predicts June CPI inflation at around 5% due to these higher prices.

  • Bandhan Bank's loans and advances rise 21.8% YoY to Rs 1.3 lakh crore in Q1FY25, while deposits increase by 22.8% YoY. Its CASA ratio stands at 33.4%, down 2.6 percentage points.

  • Marico partners with Kaya, a dermatological solutions provider, to manage sales and marketing of Kaya's 75+ personal care products. This collaboration has led to Kaya's stock hitting a 10% upper circuit.

  • Edelweiss retains its 'Buy' call on Suraj Estates Developers with a target price of Rs 757 per share. This indicates a potential upside of 22.3%. The brokerage believes the company will see new product additions once it launches most of its existing projects considering its land reserves, strong brand value and improved balance sheet. It expects the company's pre-sales to grow at a CAGR of 35% over FY25-27.

  • Anand Roy, CEO of Star Health and Allied Insurance Co, projects a gross written premium of Rs 18,000 crore in FY25. He highlights the company’s target to achieve growth of 18%, compared to the general insurance industry’s growth of 15-17%. Roy adds that the retail book will continue to drive growth for the company.

  • Inox Wind (IWL) surges as its promoter, Inox Wind Energy, infuses Rs 900 crore via the sale of equity shares of IWL through block deals. The funds will be utilised to reduce its external term debt to achieve a net debt-free status.

  • Bajaj Finance's AUM grows by 31% YoY to Rs 3.5 lakh crore in Q1FY25. New loans booked also improve by 10% YoY to 11 million in the quarter. It appears in a screener of stocks with zero promoter pledges.

  • Vedanta's Q1FY25 aluminium production rises 3% YoY to 5.9 lakh tonnes, while saleable steel production grows by 10% YoY to 3.5 lakh tonnes. Its oil and gas output falls 17% YoY to 1.1 lakh average daily gross operated production.

  • Kotak Institutional Equities upgrades its rating on Lupin to 'Add' with a higher target price of Rs 1,805. The brokerage believes the firm's strong US trajectory will continue in FY25-26, along with robust earnings in upcoming quarters. It raises FY25-27 EPS estimates by 3-16% on higher US sales and EBITDA margins.

  • Brigade Enterprises rises as it announces the development of an eight-acre residential project in Bengaluru, with a gross development value of Rs 1,100 crore.

  • GE T&D India surges to its all-time high of Rs 1,721 per share as it bags an order worth 64 million Euros (approx. Rs 576.6 crore) from Grid Solutions SAS for supplying and supervising high-voltage products.

  • Cello World surges to its all-time high of Rs 970 per share as its board of directors approves the issuance of shares worth Rs 775 crore through a qualified institutional placement (QIP). The board sets a floor price of Rs 896.1 per share for the QIP.

  • Nifty 50 was trading at 24,347.40 (60.9, 0.3%), BSE Sensex was trading at 80,321.79 (335.0, 0.4%) while the broader Nifty 500 was trading at 22,925.65 (74.5, 0.3%).

  • Market breadth is surging up. Of the 1,970 stocks traded today, 1,573 were gainers and 373 were losers.

Riding High:

Largecap and midcap gainers today include Lupin Ltd. (1,759.30, 7.9%), Solar Industries India Ltd. (12,170.25, 6.1%) and Bajaj Holdings & Investment Ltd. (9,841, 5.9%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (1,420.25, -2.9%), HDFC Bank Ltd. (1,727.15, -2.4%) and FSN E-Commerce Ventures Ltd. (171.39, -2.1%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Galaxy Surfactants Ltd. (3,114.70, 12.4%), Honasa Consumer Ltd. (486.70, 11.9%) and AstraZeneca Pharma India Ltd. (7,128.85, 11.4%).

Top high volume loser on BSE was Ingersoll-Rand (India) Ltd. (4,547.25, 0.0%).

Inox Wind Ltd. (157.01, 10.2%) was trading at 19.3 times of weekly average. Rites Ltd. (747.70, 7.1%) and Lloyds Metals & Energy Ltd. (775, 4.9%) were trading with volumes 15.4 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (9,841, 5.9%), Indus Towers Ltd. (404.05, 1.9%) and Biocon Ltd. (361.30, 0.0%).

12 stocks climbed above their 200 day SMA including Ipca Laboratories Ltd. (1,177.80, 2.1%) and Gujarat Mineral Development Corporation Ltd. (397.40, 1.5%). 5 stocks slipped below their 200 SMA including Bajaj Finance Ltd. (7,107.05, -2.1%) and Hatsun Agro Products Ltd. (1079, -2.0%).

 
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The Baseline
04 Jul 2024
A triple play: rural, renewables, and Andhra stocks | Screener: Triple-play stocks with high forecasts
By Swapnil Karkare

Later this month, Finance Minister Nirmala Sitharaman will present the Budget.

The optics may be the same -- the pink briefcase, the handloom sari -- but this time the FM is presenting a Budget on behalf of a coalition government, with somewhat different priorities.

As a result, we have three new themes that are in focus this year for the government and investors. They are 1) the rural sector 2) renewables and 3) major companies from a particular state - Andhra Pradesh. 

India's changed political economy is influencing two themes in particular: rural players, and Andhra Pradesh stocks. Coalition politics and upcoming state elections are pushing the government to address rural distress. Second, Andhra Pradesh has entered the spotlight with the Telugu Desam Party's (TDP) rising power at the centre and state, and its involvement in a few businesses.


And renewables is one space where reform momentum from the previous government is likely to continue, despite coalition politics.

In this week's Analyticks:

  • Three themes: Rural, renewables and AP stocks are in focus for investors
  • Screener: Stocks in this list likely to outperform, according to analysts

Let's look closer.

Are we set for a rural rebound in FY25?

The rural economy has been taking some punches: a below-normal monsoon last year, falling agricultural growth, lower wages. The government took steps before the budget to boost this sector, by increasing MSP for crops and removing fertilisers from the GST ambit.

The forecast this year is for a normal to above normal monsoon. So its worth keeping an eye on rural-linked sectors such as fertilisers, agrochemicals, two-wheelers, tractors, and FMCG. 

But government action and a good monsoon are the only hopes at the moment for rural stocks. If things don’t work out here, all the gains will be wiped out. For example, although a normal monsoon was predicted, June had a deficient rainfall of around 20%. 

The hoped-for rural revival: Is a turnaround ahead for agrochem?

In the case of fertilizer stocks, Anand Rathi Institutional believes that the recent rally has already priced in everything – normal monsoon, GST, and subdued raw material prices. But Chambal Fertilisers, whose net profits grew double digits when its peers saw a decline, has managed the market better than others.

Analysts like  ICICI Securities are also expecting a turnaround in agrochemicals stocks. FY24 saw an industry-wide drop in agrochemical prices and destocking in international markets. Destocking is expected to continue till the first half of FY25 in the US & Europe, and so the outlook on the domestic business is more promising than exports.

Therefore, domestic-oriented businesses with strong fundamentals and valuations, such as Insecticides India are on the radar for analysts.

Tractor sales are closely tracked when talking about the rural economy. But the year to date sales growth in FY25 up to May are flat. So although many analysts are optimistic, it may be too early to ride on this segment. Rajesh Jejurikar,ED & CEO, Auto & Farm Sectors, M&M, in its Q4 earnings call, said, “Cash will not come back so quickly right now, given they are coming off negative from last 4-5 months of rabi output. But there is a lot of optimism about how the second half can bounce back very strongly.”

However, Bajaj Auto, one of the leading two-and-three-wheelers companies, is getting a boost on the valuation front amid rising two-wheeler sales.

In the rural theme, the FMCG sector has always been one investors track when monsoons are good. In terms of strong fundamentals, Colgate-Palmolive, Emami,Nestle and Britannia top the list. And when most FMCG companies were complaining about the rural slowdown, Colgate and Emami still saw strong rural demand. Their performances could improve even further with a rural turnaround.

Can we light up the market with renewable energy?

Investors cannot ignore renewable energy generation, whose demand is rising sharply with a rise in electricity consumption and the goal of becoming net zero by 2070.

India’s renewable energy capacity is estimated to reach 180 GW by 2026 from 130 GW in FY24, requiring an outlay of Rs. 3 lakh crores, according to Crisil. 

The sector is also attractive because of the PLI scheme for solar PV module manufacturing. These facilities with a combined capacity of 39,600 MW will be operational by April 2026 in three stages. Private-sector participation through government support will keep rising in the next few years. 

However, the sector has seen some policy flip-flops. Slow progress on the rooftop solar scheme, rising import duties on raw materials and policy changes in ALMM (Approved List of Models and Manufacturers) have created challenges for manufacturers. The export market is also a tough nut to crack: here India-made products have to compete with cheaper Chinese options, limiting market share internationally. 

Renewable players that analysts are bullish on

Utility stocks have had a handsome run over the past few years. However, only one stock looks well-positioned to take advantage - Tata Power.

Analysts are bullish on both solar and wind energy. However wind power by itself is unlikely to be an attractive proposition anytime soon, overshadowed as it is by solar and its broader applicability. Tata Power’s diverse portfolio of renewables is therefore, hard to beat. Currently, 40% of its capacity constitutes clean and green energy (solar 24% and wind 7%) and it aims to increase it to 70% by 2030. It has a Rs. 13000 crores+ order book in the solar utility EPC business. It’s also ramping up solar cell and module production capacity by another 4GW. It is a leader in the rooftop solar market with a 13% share. 

One thing to watch for is the debt levels of renewable energy players. Of Rs. 3 lakh crores of capex required for increasing India’s renewables capacity, ~70% is estimated to be met by debt funding. Tata Power’s balance sheet and credit rating would support additional borrowing, if needed.

The kingmakers: Andhra Pradesh is in the spotlight

When the Andhra Pradesh party TDP became a coalition partner in the new government, Economic Times mentioned a few key stocks with AP connections. The list included Heritage Foods, Amara Raja Energy, Aurobindo Pharma, Avanti Feeds, Sagar Cement, Godrej Agrovet, KNR Construction, Likhita Infra and KCP. 

TDP chief Chandrababu Naidu’s son is a promoter of Heritage Foods. Former TDP MP Jay Dev Galla leads Amara Raja. The other stocks are based out of, or have significant operations in the state. We took a closer look at these players. It's worth keeping in mind that policy and political missteps could turn these companies sour for investors. 

AP-linked stocks on the radar

Amara Raja became a stock market darling over the last month, gaining ~40% driven by election results and a deal signing with GIB. Compared to its peers, it is an outlier -- although it has long-term growth drivers, its valuation is high.

Within Andhra’s cement sector, KCP has emerged as strong performer, followed by NCL Industries. Both have lower valuations and higher EBITDA margins compared to Sagar Cements, the other Andhra-based cement company.

In heavy-engineering companies KNR Constructions has been a performer. These three companies also have lower debt, as their debt-to-equity ratios are below 1 (0.3x, 0.3x, and 0.4x, respectively).


Food companies like Heritage Foods and Avanti Feeds, and pharma company Natco Pharma have the edge over others in their sectors so far, based on analyst estimates, scores and FY24 ROE. 

Stock markets don't come with guarantees. But these three themes have emerged as interesting ones as India's political and economic winds shift. The focus of the Budget will also determine how much these are worth following in the coming months.

Screener: Rural, Andhra-linked and renewables stocks that are rising, with high Forecaster growth estimates in FY25

FMCG stocks have risen the most in the past quarter

We look at stocks from the three themes – rural, Telugu Desam Party (TDP)-linked, and renewables stocks – which have risen over the past quarter with analyst forecasts for strong growth in FY25. This screener shows these stocks that have risen over the past quarter with high Forecaster YoY growth estimates for revenue and EPS in FY25.

Major stocks that appear in the screener are Heritage Foods, Emami, Chambal Fertilisers & Chemicals, Insecticides (India), Natco Pharma, Avanti Feeds, Tata Power, and Colgate Palmolive (India).

Emami has risen by 64.5% over the past quarter. Forecaster estimates the stock’s revenue and earnings per share (EPS) will grow by 9.5% YoY and 6.1% YoY, respectively in FY25. Brokers like Sharekhan believe this packaged goods company has a strong brand portfolio, and its focus on product launches, distribution expansion, a strong pipeline of direct-to-consumer (D2C) brands, and international business will help drive growth. 

Tata Power also features in the screener with its stock price rising 6.3% over the past quarter. Trendlyne’s Forecaster estimates this electric utilities company’s revenue and EPS to grow 10.9% and 28.9%, respectively in FY25. Geojit BNP Paribas expects the company’s performance to improve due to rising demand, capacity expansion, and promising opportunities in the rooftop solar business, renewables, and generation segments.

You can find more screeners here.

 
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The Baseline
03 Jul 2024
Chart of the Week: Nifty 50 hits new all-time highs as investors return to markets post-election
By Satyam Kumar

After a volatile start to June, India’s benchmark index, Nifty 50, rebounded onto its growth trajectory, surpassing the 24,000 mark by the end of the month as Narendra Modi was re-elected for his third term as Prime Minister. The benchmark index's rise has accelerated in the past month, climbing 7.8% to reach new all-time highs.

In this Chart of the Week, we take a look at the performance of India’s benchmark Nifty 50 over the past year (July ‘23- July ‘24) and the factors influencing the momentum. As of July 3, the Nifty 50 has risen 26.6% over the past year despite challenges such as high interest rates aimed at tackling inflation and international conflicts like the Russia-Ukraine war and the Israel-Hamas conflict.

For FY24, India’s GDP growth was reported at 8.2%. During a press conference, RBI Governor Shaktikanta Das said, "We are confident about 7.2% growth in FY25, and assuming a normal monsoon, we expect food inflation to go down and project CPI inflation for FY25 at 4.5%" He highlighted that despite inflation gradually approaching target levels worldwide, the final steps in beating back inflation were proving to be difficult.

The election shock that made the elephant index dance

Modi’s Bharatiya Janata Party (BJP) won three out of four state elections in December last year. Many predicted that this "hat-trick" in state elections would lead to “a hat-trick in 2024," and that Prime Minister Narendra Modi's third term was inevitable. People seemed to buy into the narrative of a "double engine" government with the same party in the states and centre. As a result, on December 4, the Nifty 50 rallied by 419 points, posting a gain of 2.1%.

On April 19, the seven-phase voting for the Lok Sabha elections began in India and concluded on June 1. Despite analysts' optimism about Modi’s third term, India's volatility index jumped by more than 50% during this period, reflecting the uncertainty surrounding the election results as conflicting ground reports started to trickle in. 

As polling ended, media houses started releasing exit poll data indicating a clear majority for the BJP. In anticipation, the Nifty 50 soared 733 points, gaining 3.3% on June 3.

However, as the vote counting began on June 4, the exit poll forecasts turned out to be wildly off, and the market shed all its gains from the previous day and more. The ruling BJP was leading in fewer seats than expected and was not securing a single-party majority. Consequently, the Nifty 50 experienced its worst day since the pandemic, falling 5.9% on June 4.

Ultimately, the BJP won 240 out of a total of 543 seats and formed a government with the support of its NDA alliance. The markets rallied after the BJP-led NDA alliance formed a government with Narendra Modi re-elected as Prime Minister for a third term. There were no changes in significant ministries such as Finance, Highways, Defence, and Home. Following this, the India VIX returned to normal levels, and the Nifty 50 posted a new all-time high, crossing the 24,200 mark.

India’s growth story leads the index higher and higher

The G20 summit, held in India last year, featured the 20 largest economies. During the summit, PM Modi announced the launch of the India-Middle East-Europe mega economic corridor. This announcement helped the Nifty 50 index breach the 20,000 mark on September 11. Following this news, Adani Ports & SEZ, a marine ports and services company, soared by 7%.

India’s GDP growth has also bolstered investor confidence, driving the index up at an accelerated pace. Fueled by double-digit growth in the manufacturing sector, strong performance in the construction sector, and high domestic demand, the GDP growth rate for Q3 came in at 8.4%. Following the announcement of these GDP growth numbers, the index rallied 356 points, posting a gain of 1.6% on March 1.

Weak performance by IT firms and Banks led to an index correction

Indian Information Technology (IT) firms posted weak performance in Q1FY24 as institutions worldwide cut down on tech spending in this high interest-rate environment. Additionally, weakening demand and recession fears in the United States exerted pressure on their earnings.

During the Q1FY24 results announcement, Infosys CEO Salil Parekh said, “In the short term, we see some clients stopping or slowing down transformation programs and discretionary work, especially in financial services, mortgages, asset management,etc.” The weak outlook for FY24 led to industry-wide selling which led the index down post Q1FY24 results.

On January 17, HDFC Bank plunged over 8% leading the index down by 460 points as it posted mixed performance in its Q3FY24 results that failed to impress investors. Although credit growth gained momentum, the bank struggled to attract deposits at the same pace, which could lead to higher costs of funds and lower margins.

Geopolitical tensions triggered an industry-wide sell-off in October last year

The ongoing wars between Israel-Hamas and Russia-Ukraine spooked investors worldwide. In October last year, markets experienced significant selling pressure amid growing concerns about the escalation of the Israel-Hamas conflict. However, this effect faded as strong Q2 earnings led the index back to its growth trajectory.

Meanwhile, the Russia-Ukraine war has extended into its third year. Ukraine continues to receive support from NATO, an alliance of countries in Europe and North America. After months of delay, the US Congress passed a Ukraine Aid package worth $95 billion in April this year.

 
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Trendlyne Marketwatch
03 Jul 2024
Market closes higher, RVNL bags an order worth Rs 132.6 crore
By Trendlyne Analysis

Nifty 50 closed at 24286.50 (162.7, 0.7%) , BSE Sensex closed at 79986.80 (545.4, 0.7%) while the broader Nifty 500 closed at 22851.20 (173.4, 0.8%). Market breadth is in the green. Of the 2176 stocks traded today, 1348 were on the uptrend, and 807 went down.

Indian indices closed in the green, after seeing volatility throughout today's trading. The Indian volatility index, Nifty VIX, fell 3.1%and closed at 13.21 points. Rail Vikas Nigam closed higher after winning a modification work order worth Rs 132.6 crore from Central Railway to upgrade the existing electric traction system in Nagpur.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Private Bank and Nifty Financial Services 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 rise of 5.9%.

Asian indices closed in the green. European indices are trading higher. US index futures are trading mixed, indicating a cautious start to the trading session. Brent crude oil futures are trading flat.

  • Money flow index (MFI) indicates that stocks like Samvardhana Motherson International, Craftsman Automation, Mahanagar Gas, and Oracle Financial Services Software are in the overbought zone.

  • Gujarat Gas falls sharply as it announces a Rs 2 per standard cubic metre (scm) increase in industrial gas price for the Morbi region, raising the price to Rs 44.7 per scm, effective July 4.

  • Containers & packaging, electronic components, IT training services, and shippingindustries surge more than 9% over the past week.

  • Indian Renewable Energy Development Agency rises sharply to its all-time high of Rs 218.8, as 50 lakh shares, amounting to Rs 100 crore, reportedly change hands in a block deal.

  • Pawan Goyal, ED and Chief Business Officer at Info Edge (Naukri.com), notes a slowdown in hiring across IT and non-IT sectors in June, with the Naukri Jobspeak Index declining 7.6% YoY. The index indicates the hiring trends in the market. He highlights the weakness in IT hiring in June, down 4.8% YoY, and a moderation in FMCG hiring to 13% YoY.

  • Emcure Pharmaceuticals' Rs 1,952 crore IPO gets bids for 0.8X the available 1.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1X the available 68.8 lakh shares on offer.

  • Bansal Wire Industries' Rs 745 crore IPO gets bids for 1X the available 2.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.5X the available 1.1 crore shares on offer.

  • Zomato withdraws its application for a non-banking financial company (NBFC) license from the Reserve Bank of India (RBI) through its wholly-owned subsidiary, Zomato Financial Services, as it no longer intends to pursue the lending or credit business.

  • Private equity investments in Indian real estate surge to a three-year high in Q2CY24, reaching $2.5 billion. The industrial and warehousing sector dominates with 61% of total investment ($1.5 billion), fueled by substantial transactions. Residential investments rise sharply, increasing by 7.5X from Q2CY23 and comprising 21% of the total inflows. Meanwhile, office assets witness a decline, attracting only $0.3 billion in investments.

  • Sundaram-Clayton rises as its board of directors approves issuing shares worth Rs 400 crore through a qualified institutional placement (QIP) or other modes.

  • ICICI Securities maintains its 'Buy' call on Hero MotoCorp with an upgraded target price of Rs 6,620 per share. This indicates a potential upside of 18.8%. The brokerage believes the company's capital-efficient business model, with a cash-rich balance sheet and a focus on premiumisation and electrification, will help outperform its peers. It expects revenue to grow at a CAGR of 15.3% over FY25-26.

  • Indian Energy Exchange's electricity volume rises 24.7% YoY to 10,185 million units (MU) in June. IEX Green Market achieves a volume growth of 173% YoY to 744 MU.

  • India’s services PMI rises to 60.5 in June, from a 5-month low of 60.2 in May, due to a rise in new orders and expansion in international sales. The PMI reading stays above the 50 mark for the 35th consecutive month

  • JSW Infrastructure rises as its subsidiary, JSW Tuticorin, signs an agreement with V.O. Chidambaranar Port Authority to develop and mechanise a new 7 MPTA cargo berth for handling dry bulk cargo on a design, build, finance, operate, and transfer (DBFOT) basis.

  • Dynacons Systems & Solutions surges as it secures an order worth Rs 119 crore from the Central Bank of India. The order is for the supply, implementation, and maintenance of private cloud infrastructure at the bank’s data centre (DC) and disaster recovery centre (DRC).

  • MOIL rises sharply as its quarterly production grows by 7.8% YoY to 4.7 lakh tonnes in Q1FY25, helped by a 49% YoY improvement in exploratory drilling to 30,028 meters.

  • HDFC Bank stock rises over 3% as foreign portfolio investors (FPIs) reduce their holding to 54.8% in Q1FY25, helping the bank to meet the criteria for an increase in weight in the MSCI index. With foreign ownership exceeding 25%, it now meets the index provider's criteria for full inclusion. This development could lead to MSCI inflows of up to $5 billion for HDFC Bank.

  • Force Motors' wholesales fall 2.9% YoY to 2,553 units in June, despite a 12.7% YoY rise in domestic wholesales. The company's exports decrease by 80% YoY.

  • Persistent Systems rises as its wholly-owned subsidiary plans to acquire New Jersey-based Starfish Associates in a deal valued at Rs 172.8 crore ($20.7 million). The acquisition will enhance its contact centre and unified communications capabilities and strengthen its AI-driven business transformation services.

  • Vraj Iron & Steel’s shares debut on the bourses at a 15.9% premium to the issue price of Rs 207. The Rs 171 crore IPO has received bids for 119 times the total shares on offer.

  • BSE Sensex crosses the 80,000 mark for the first time, reaching an all-time high of 80,074.3 in early trade today. Nifty 50 also hits a record high of 24,307.3.

  • Healthcare Global Enterprises enters a share purchase agreement (SPA) with Vizag Hospital to acquire a 100% stake for Rs 362.6 crore.

  • Rail Vikas Nigam rises as it wins a modification work order worth Rs 132.6 crore from Central Railway to upgrade the existing electric traction system in Nagpur.

  • Federal Bank rises as its total deposits increase by 19.6% YoY to Rs 2.7 lakh crore while gross advances grow by 20.1% YoY to Rs 2.2 crore in Q1FY25. Its CASA ratio stands at 29.3% as compared to 31.9% in Q1FY24

  • KEC International rises sharply as it bags a Rs 1,017 crore order in the Indian and overseas markets for transmission & distribution (T&D) and renewables businesses.

  • Nifty 50 was trading at 24,230.20 (106.4, 0.4%), BSE Sensex was trading at 79,803.32 (361.9, 0.5%) while the broader Nifty 500 was trading at 22,783.65 (105.9, 0.5%)

  • Of the 1,963 stocks traded today, 1,594 were on the uptrend, and 338 went down.

Riding High:

Largecap and midcap gainers today include Power Finance Corporation Ltd. (531.05, 5.7%), Bharat Heavy Electricals Ltd. (311.30, 4.8%) and Bajaj Holdings & Investment Ltd. (9,296.75, 4.5%).

Downers:

Largecap and midcap losers today include Ashok Leyland Ltd. (229.47, -2.2%), Gujarat Gas Ltd. (637.85, -2%) and Patanjali Foods Ltd. (1,632.35, -1.7%).

Movers and Shakers

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

Top high volume gainers on BSE included Castrol India Ltd. (243.17, 13.5%), Housing and Urban Development Corporation Ltd. (301.95, 8.5%) and Gujarat Pipavav Port Ltd. (230.50, 8.3%).

Top high volume loser on BSE was SKF India Ltd. (6449.15, -0.8%).

MMTC Ltd. (85.66, 8.1%) was trading at 27.4 times of weekly average. Sheela Foam Ltd. (968.95, 2.7%) and FDC Ltd. (497.05, 5.6%) were trading with volumes 10.3 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (9,296.75, 4.5%), Indus Towers Ltd. (396.50, 3.3%) and Biocon Ltd. (361.45, 1.3%).

11 stocks climbed above their 200 day SMA including Piramal Enterprises Ltd. (943.60, 4.2%) and IDFC Ltd. (120.26, 2.8%). 3 stocks slipped below their 200 SMA including Crisil Ltd. (4,285.90, -1.7%) and Au Small Finance Bank Ltd. (666.25, -1.1%).

 
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The Baseline
02 Jul 2024
Five stocks to buy from analysts this week - July 02, 2024
By Ruchir Sankhla

1. NMDC:

ICICI Direct assigns a ‘Buy’ rating on this mining company with a target price of Rs 325, indicating a potential upside of 29.2%. In FY24, the company’s revenue grew 23% YoY to Rs 22,678.7 crore due to higher average selling price, while the net profit marginally declined by 0.47% YoY to Rs 5,575 crore due to higher operational expenses.

Analysts Shashank Kanodia and Manisha Kesari say, “NMDC is exploring opportunities in other minerals such as bauxite, gold, diamond, lithium, and copper, both in India and overseas.” The analysts highlight the company’s plans to begin operations at the Rohne coal block with a capacity of 8 metric tonne (MT) within 24 months. NMDC has also commissioned an Australian gold mine, and is set to conclude a feasibility study for magnetite and lithium within the next 12-18 months.

Kanodia and Kesari note that the company expects to increase its sales volume from 41 MT in FY24 to 50 MT in FY25 and 54 MT in FY26, and aims to achieve 100 MT of iron ore production by FY31 with a total investment of approx Rs 50,000 crore for slurry pipelines, a pellet plant, and other infrastructure.

2. Bharti Airtel:

Sharekhan maintains a ‘Buy’ rating on this telecom services company, raising its target price to Rs 1,680, indicating a potential upside of 15.6%. The analysts highlight Airtel's industry-leading ARPU, revenue market share (RMS) gains, and its favorable position to benefit from expected tariff hikes over FY25-26.    

Bharti Airtel has improved its revenue market share to 37.9% in FY24 from 36.5% in FY23, narrowing the gap with Reliance Jio. Analysts expect that the 15-20% tariff hikes post the telecom spectrum auction, will aid revenue growth. The company anticipates significant free cash flow improvement due to a capex decline in FY25 after high spending in FY24. Vodafone Idea's expected 5G launch may impact subscriber gains, making tariff hikes crucial for sustained growth. However, Airtel’s focus on premiumization and rural expansion supports its positive growth outlook.

Sharekhan expects Airtel's strong growth momentum in various segments to continue. It anticipates the firm to post a revenue CAGR of 14.3% and an adjusted net profit CAGR of 47.4% over FY25-26.

3. Inox Wind:

Axis Direct initiates a ‘Buy’ rating on this electric utilities company with a target price of Rs 185, indicating a potential upside of 29%. Analysts Aditya Welekar and Darsh Solanki note that from 2019 to 2024, the company incurred losses primarily due to lower execution in wind energy projects. This was due to new auction rules in 2018 and the impact of the pandemic in 2021-2022.

The analysts highlight that as of 31st March 2024, the company has a strong order book of 2.7 GW, ensuring sales for the next 2.5 years along with multiple independent power producers and commercial and industrial orders in the pipeline which are at “advanced stages of closure”.

The analysts anticipate the company to return to profitability from FY25. They expect a revenue/EBITDA CAGR of 75% for FY 25-27. PAT is expected to increase to Rs 1,081 crore by FY27, from a loss of Rs 51 crore in FY24 with a forecasted EBITDA margin of 15% in line with the company's guidance of 14-15% for FY 25-27.

4. Hindustan Unilever:

Motilal Oswal maintains a ‘Buy’ rating on this personal products company with a target price of Rs 2,900, indicating a potential upside of 15.6%.  Analysts Naveen Trivedi, Pratik Prajapati and Tanu Jindal note that in FY24, the company's revenue increased only by 2% to Rs 619 billion due to the challenging business environment and increasing competition from regional and D2C brands. The company saw a gradual decrease in commodity prices across all its products after a long period of high inflation.

Analysts highlight HUL’s effort to compete more effectively in a changing retail market,  and its transition from the traditional step-by-step business model to an approach where  consumers, customers, and operations are more closely integrated, with the help of data-driven technology solutions. They note that approximately 30% of its digital demand is now generated through platforms like the Shikhar app, e-commerce channels, and D2C websites.

Analysts Trivedi, Prajapati, and Jindal note that the company has been introducing new product variants and upgrades. Hindustan Unilever is particularly focusing on liquid formulations in fabric care and dishwashing segments to meet increasing consumer demand in these segments.

5. Olectra Greentech:

Geojit upgrades this commercial vehicle manufacturer to a ‘Buy’ with a target price of Rs 2,086, indicating a potential upside of 13.4%. The company saw its revenue drop 23% YoY to Rs 293.6 crore in Q4FY24  due to new battery norms and execution delays, while it increased moderately by 5.9% in FY24. Despite this, Olectra Greentech (OGL) remains optimistic about its future growth prospects in the expanding electric vehicle market.

The company plans to establish a new greenfield EV manufacturing facility in Telangana, starting with an annual capacity of 5,000 vehicles expandable to 10,000. OGL currently holds 10,966 electric bus orders in its order book. Analyst Anil R is optimistic about the firm's strategic JV with BYD China for electric buses and entry into electric truck tippers and hydrogen buses, which it hopes will strengthen its position in the growing EV market. Expansion into new segments aligns with OGL's strategy to diversify its product portfolio and capitalize on the increasing demand for sustainable, and cheaper transportation solutions.

Anil expects Olectra's alignment with the government's carbon-free emission goals and robust State Transport Undertaking (STU) partnerships to drive future growth. He anticipates the firm to post a revenue CAGR of 77.7% and an adjusted net profit CAGR of 101% over FY25-26, helped by its technological advancements in the EV sector.

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

(You can find all analyst picks here)

 
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Trendlyne Marketwatch
02 Jul 2024
Market closes flat, Adani Ports' cargo volumes rise 12% YoY to 37 million metric tonnes in June
By Trendlyne Analysis

Nifty 50 closed at 24,123.85 (-18.1, -0.1%), BSE Sensex closed at 79,441.45 (-34.7, 0.0%) while the broader Nifty 500 closed at 22,677.80 (-49.8, -0.2%). Market breadth is holding steady. Of the 2,184 stocks traded today, 1,096 were in the positive territory and 1073 were negative.

Indian indices pared their gains from the afternoon session and closed flat. The volatility index, Nifty VIX, fell by 1.4% and closed at 13.6 points. Kotak Mahindra Bank fell following allegations by Hindenburg that the Securities and Exchange Board of India's (SEBI) omission of the bank or its board member in their report may be an attempt to protect powerful Indian businessmen from scrutiny.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. According to Trendlyne’s sector dashboard, Media emerged as the top-performing sector of the day, with a rise of 1.4%.

Most European indices traded in the red, while the Asian indices closed mixed. US index futures traded lower, indicating a cautious start to the trading session. Euro-zone inflation slowed down in June with consumer prices rising 2.5% YoY, down from 2.6% YoY in May.

  • Relative strength index (RSI) indicates that stocks like Cholamandalam Financial Holdings, Craftsman Automation, Mahanagar Gas, and Persistent Systems are in the overbought zone.

  • Sanofi India, Union Bank of India, Adani Total Gas, and Ujjivan Small Finance Bankunderperform their respective industries by more than 10% in the past month.

  • Adani Ports & Special Economic Zone's cargo volumes rise 12% YoY to 37 million metric tonnes in June. The rise is due to a growth in containers (33% YoY) and liquids & gas (8% YoY).

  • Nomura turns bullish on the Indian IT sector. The brokerage upgrades Wipro, Infosys, and HCL Technologies to 'Buy' and TCS to 'Neutral '. It expects a mixed operating performance from its selected stocks. Nomura expects strong revenue growth of +2.5% QoQ for Infosys and -2% QoQ for HCL Tech in Q1FY25.

  • IRB Infrastructure Trust surges to its 52-week high as it reportedly secures an arbitration award of Rs 1,720 crore for a highway project against the National Highways Authority of India (NHAI).

  • Puravankara rises as it purchases the owner’s share of land in the Botanico and Capella projects in Bangalore for Rs 251 crore. The potential gross development value for these projects is Rs 484 crore.

  • PSU bank stocks like Bank of Baroda, Bank of India, Indian Bank and State Bank of India are falling in trade. All constituents of the broader Nifty PSU Bank index are also trading in the red, causing it to plunge almost 2%.

  • Larsen & Toubro rises as it reportedly secures orders worth $4 billion (approx. Rs 35,000 crore) from Saudi Aramco for expansion projects.

  • Kotak Mahindra Bank falls following allegations by Hindenburg that the Securities and Exchange Board of India's (SEBI) omission of the bank or its board member in their report may be an attempt to protect powerful Indian businessmen from scrutiny. This development comes after Hindenburg received a show-cause notice from SEBI for alleged violations related to bets placed on the Adani Group.

  • Zomato surges to its all-time high of Rs 209.8 per share as Morgan Stanley retains its 'Overweight' rating on the stock with a higher target price of Rs 235 per share. This indicates a potential upside of 14%. The brokerage believes the company's market leadership in food delivery, strong execution in the growing quick commerce business, and a healthy balance sheet will help in medium to long-term growth.

  • ISMT surges as it completes Phase 1 installation of a 35 MW DC capacity solar plant worth Rs 138 crore in Maharashtra.

  • Large trades in the Indian stock markets reach a new high, driven by promoters selling stakes amid soaring benchmark indices. Data from the Prime Database shows that bulk and block deals in June totaled Rs 1.01 lakh crore, a substantial MoM increase from Rs 35,779 crore. Promoters have offloaded shares worth Rs 91,879 crore in the first half of the year.

  • Pennar Industries surges to its all-time high of Rs 191.7 per share as it plans to set up a 36,000 MT pre-engineered building (PEB) manufacturing plant in Uttar Pradesh. The company expects the plant to be operational in Q2CY25.

  • IOL Chemicals and Pharmaceuticals surges as it secures approval from China's drug regulatory authority, NMPA, for its cholesterol drug, Fenofibrate. This enables the company to export Fenofibrate to the Chinese market.

  • Welspun Specialty Solutions wins a Rs 117.2 crore order from Bharat Heavy Electricals to supply seamless stainless steel boiler tubes for a thermal power project.

  • NMDC is falling as its total sales decline 9% YoY to 3.7 million tonnes (MT) in June as its production drops 3.2% YoY to 3.4 MT.

  • Centre raises the windfall tax on locally produced petroleum crude oil to Rs 6,000 per tonne from Rs 3,250 earlier. Meanwhile, the tax on diesel and aviation turbine fuel (ATF) remains ‘Nil’.

  • Gandhar Oil Refinery rises sharply as it bags a three-year contract worth $45 million (approx. Rs 375 crore) from Abu Dhabi National Oil Co for Distribution (ADNOC Distribution). The contract is to supply 30 million litres per annum of refined oil to ADNOC.

  • Plutus Wealth Management sells a 2.2% stake (71 lakh shares) in Religare Enterprises, worth Rs 169.7 crore, in a bulk deal on Monday. Meanwhile, Societe Generale picks a 1.5% stake in the company.

  • Allied Blenders & Distillers’ shares debut on the bourses at a 13.9% premium to the issue price of Rs 281. The Rs 1,500 crore IPO has received bids for 23.6 times the total shares on offer.

  • Rakesh Sharma, Executive Director at Bajaj Auto, says Q1 performance aligns with expectations. He notes healthy sales in April, followed by flat sales in the following months. Sharma projects domestic retail growth of 6-8% in Q2FY25.

  • Patanjali Foods surges to its all-time high of Rs 1,764.4 per share as it acquires Patanjali Ayurved's non-foods business (hair care, skin care, dental care, and home care) for Rs 1,100 crore.

  • Eicher Motors' Royal Enfield wholesales fall 7.6% YoY to 86,723 units in June. Its domestic wholesales decrease by 5% YoY, and exports drop 27% YoY.

  • DCX Systems rises as it wins a purchase order worth Rs 1,250 crore from Larsen & Toubro to manufacture and supply electronic modules.

  • Godrej Properties sells more than 2,000 homes worth over Rs 3,150 crore on the launch of its project, Godrej Woodscapes, in Bengaluru.

  • Nifty 50 was trading at 24,203.60 (61.7, 0.3%), BSE Sensex was trading at 79,653.88 (177.7, 0.2%) while the broader Nifty 500 was trading at 22,784.85 (57.3, 0.3%).

  • Market breadth is highly positive. Of the 1,967 stocks traded today, 1,517 showed gains, and 414 showed losses.

Riding High:

Largecap and midcap gainers today include Solar Industries India Ltd. (11,019.10, 9.1%), Godrej Properties Ltd. (3,301.10, 4.4%) and Samvardhana Motherson International Ltd. (202.96, 3.2%).

Downers:

Largecap and midcap losers today include Max Healthcare Institute Ltd. (913.10, -4.5%), Vodafone Idea Ltd. (17.02, -3.4%) and Shriram Finance Ltd. (2,824.90, -3.4%).

Volume Shockers

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

Top high volume gainers on BSE included TV18 Broadcast Ltd. (45.55, 9.7%), Solar Industries India Ltd. (11,019.10, 9.1%) and Godrej Agrovet Ltd. (811.50, 8.1%).

Top high volume losers on BSE were Angel One Ltd. (2,353.25, -8.7%), Patanjali Foods Ltd. (1,660.95, -2.3%) and Chalet Hotels Ltd. (849, -1.4%).

Sumitomo Chemical India Ltd. (512.60, 7.1%) was trading at 11.8 times of weekly average. Network18 Media & Investments Ltd. (87.67, 6.7%) and Firstsource Solutions Ltd. (226.40, 5.8%) were trading with volumes 8.7 and 6.6 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 - 3M India Ltd. (38,908.70, 2.8%), ACC Ltd. (2,772.25, 0.8%) and Ambuja Cements Ltd. (692.35, -0.4%).

17 stocks climbed above their 200 day SMA including Jyothy Labs Ltd. (477.25, 5.8%) and Hatsun Agro Products Ltd. (1,111.35, 5.6%). 7 stocks slipped below their 200 SMA including IDFC Ltd. (116.99, -2.6%) and Kotak Mahindra Bank Ltd. (1,769.60, -2.1%).