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Trendlyne Marketwatch
Trendlyne Marketwatch
09 Jan 2024
Market closes higher, L&T Construction bags an order worth Rs 1,000-2,000 crore to construct AIIMS in Haryana
By Trendlyne Analysis

Nifty 50 closed at 21,544.85 (31.9, 0.2%), BSE Sensex closed at 71,386.21 (31.0, 0.0%) while the broader Nifty 500 closed at 19,459.55 (41.9, 0.2%), of the 2,042 stocks traded today, 1,107 showed gains, and 902 showed losses.

Indian indices pared gains from the afternoon session and closed in the green, with the benchmark Nifty 50 closing at 21,545 points. The Indian volatility index, Nifty VIX, dropped by 1.5% and closed at 13.3 points. L&T Construction bagged an order worth Rs 1000 crore to Rs 2000 crore from the Ministry of Health and Family Welfare to construct AIIMS at Rewari, Haryana.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green following the benchmark index. Nifty Realty and Nifty Metal closed higher than Monday’s close. According to Trendlyne's sector dashboard, realty was the top-performing sector of the day as it rose 2.3%.

Major European indices trade in the red. US index futures trade lower, indicating a negative start to the trading session. Eurozone’s unemployment rate in November expands to 6.4% against estimates of 6.5%.

  • Money flow index (MFI) indicates that stocks like Trident, Godrej Industries, Alok Industries and Gujarat Gas are in the overbought zone.

  • Kalyan Jewellers India, Ircon International, and Prestige Estate Projects' stock prices increase 217.9%, 209.2% and 186.1% respectively over the past year.

  • Tata Power rises as it signs a memorandum of understanding with the Tamil Nadu government to invest Rs 70,000 crore in the state. With this investment, the company plans to explore options to develop 10,000 MW renewable energy projects in the next seven years.

  • Bharti Airtel is rising as its subsidiary, Airtel Business, plans to power 2 lakh smart meters for Adani Energy Solutions (AESL). The company will provide secure connectivity for AESL's smart meter deployments using Airtel's Internet of Things (IoT) Hub.

  • Polycab India falls sharply as reports suggest that the Income Tax Department has claimed a tax evasion of Rs 200 crore by the company.

  • Jyoti CNC Automation's Rs 1,000 crore IPO gets bids for 1.8X the available 1.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 6X the available 31.6 lakh shares on offer.

  • Realty stocks like Godrej Properties, DLF, Oberoi Realty and Brigade Enterprises surge more than 2% in trade. This helps the broader Nifty Realty index to rise more than 2%, touching its 52-week high of Rs 865.

  • Infibeam Avenues rises to a new 52-week high of Rs 24.5 as it reportedly enters into a pact with the Gujarat government to invest Rs 2,000 crore in the state. It appears in a screener of stocks with strong momentum.

  • AU Small Finance Bank is falling as around 13.2 lakh shares (0.2% equity), amounting to Rs 102.6 crore, change hands, according to reports.

  • Capacit'e Infraprojectsrises to an all-time high of Rs 291 as its board approves raising Rs 200 crore through qualified institutional placements. The company has set the floor price at Rs 264.9 per share.

  • L&T Constructionhits an all-time highof Rs 3,593.7 after bagging an order worth Rs 1,000-2,000 crore from the Ministry of Health and Family Welfare to construct AIIMS at Rewari, Haryana.

  • Fino Payments Bank rises following reports of its application for a small finance bank license with the Reserve Bank of India. It appears in a screener of stocks with increasing quarterly revenue.

  • Goldman Sachs predicts robust Q3FY24 earnings for auto OEMs, driven by string two-wheeler and passenger vehicle sales during the festive and wedding seasons. The brokerage has increased its target prices for Bajaj Auto and TVS Motors by 14%.

  • Brigade Enterprises rises over 3% to touch its all-time high of Rs 1,000 after signing two memorandums of understanding (MoUs) worth Rs 3,400 crore with the Tamil Nadu government. The MoUs relate to the development of high-rise commercial and residential buildings.

  • IRB Infrastructure hits a new 52-week high of Rs 46.8 after reporting a 26% YoY increase in toll collections, which stood at Rs 488 crore in December 2023 compared to Rs 388 crore in December 2022.

  • Gensol Engineering rises more than 4% as it signs an MoU with the Gujarat government to invest Rs 2,000 crore in EV manufacturing. The company expects to generate around 1,500 jobs in the region's EV ecosystem. It appears in a screener for stocks with strong momentum.

  • JPMorgan maintains an 'Overweight' rating on Tata Motors with a target price of Rs 925, after JLR wholesales grow 27% YoY to 1,01,043 units in Q3FY24. The brokerage expects continued strong profitability in JLR and India businesses. It adds that the company's model mix remains robust.

  • Caplin Point Laboratories rises to an all-time high of Rs 1,470 as it signs a memorandum of understanding with the Tamil Nadu government to invest Rs 700 crore in the state. The company appears in a screener of stocks with low debt.

  • Jyoti CNC Automation raises Rs 448 crore from anchor investors ahead of its IPO by allotting around 1.4 crore shares at Rs 331 each. Investors include Goldman Sachs, Nomura, Eastspring Investments India Fund, The Master Trust Bank of Japan, HDFC Life Insurance Co, ICICI Prudential Life, Edelweiss Mutual Fund, and Axis Mutual Fund.

  • BEML is rising as it bags an order worth Rs 329.9 crore from the Ministry of Defence to supply mechanical minefield marking equipment.

  • Abhay Baijal, MD of Chambal Fertilisers & Chemicals, highlights the promoters’ participation in a Rs 700 crore buyback which was approved by the company's board on Monday. Baijal notes steady demand for fertilizers and potential long-term impacts on producers due to the ongoing Red Sea issue.

  • Zee Entertainment Enterprises falls sharply amid reports that Sony Entertainment may call off the $10 billion merger over doubts about ZEEL's CEO Punit Goenka leading the merged entity.

  • Vijay Kedia sells a 0.3% stake in Talbros Automotive Components in Q3FY24. He now holds a 1% stake in the company.

  • Ashish Kacholia sells a 0.9% stake in Best Agrolife in Q3FY24. He now holds a 1.4% stake in the company.

  • Bajaj Autois rising as its board of directors approves the buyback of 40 lakh shares (a 1.4% stake) worth Rs 4,000 crore at Rs 10,000 each.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (454.85, 8.44%), FSN E-Commerce Ventures Ltd. (187.50, 5.99%) and Patanjali Foods Ltd. (1,684.40, 5.32%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (4,867.10, -8.93%), Zee Entertainment Enterprises Ltd. (256.30, -7.86%) and Vodafone Idea Ltd. (16.20, -5.54%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Borosil Renewables Ltd. (508.60, 9.47%), IRB Infrastructure Developers Ltd. (46.00, 9.13%) and JSW Energy Ltd. (454.85, 8.44%).

Top high volume losers on BSE were Polycab India Ltd. (4,867.10, -8.93%), Zee Entertainment Enterprises Ltd. (256.30, -7.86%) and Page Industries Ltd. (36,452.65, -3.29%).

Galaxy Surfactants Ltd. (2,790.00, 1.08%) was trading at 12.4 times of weekly average. Ingersoll-Rand (India) Ltd. (3,100.50, 0.74%) and Minda Corporation Ltd. (388.45, 3.34%) were trading with volumes 10.2 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

56 stocks made 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,197.10, 2.42%), Apollo Hospitals Enterprise Ltd. (5,800.00, 2.08%) and Bajaj Auto Ltd. (7,093.90, 1.58%).

9 stocks climbed above their 200 day SMA including Easy Trip Planners Ltd. (45.80, 5.65%) and Carborundum Universal Ltd. (1,142.50, 0.97%). 7 stocks slipped below their 200 SMA including SRF Ltd. (2,311.35, -3.52%) and Page Industries Ltd. (36,452.65, -3.29%).

 
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The Baseline
09 Jan 2024
5 stocks to buy from analysts this week
By Bhavani Eswar

1. Bajaj Finance:

HDFC Securities upgrades its rating on this non-banking financial company to a ‘Buy’ with a target price of Rs 8,650, indicating an upside of 11.3%. Analysts Krishnan ASV, Deepak Sinde, and Akshay Badlani note that Bajaj Finance has maintained a robust 26% annual AUM growth from FY22-24E, despite its growing scale and complexity. 

Although the RBI's directive on higher risk weights for consumer credit might impact the near-term capital adequacy ratio, the analysts believe that the recent equity raise of Rs 8,800 crore will cushion the impact and support growth. They express confidence in the company’s new products, such as auto loans and tractor financing, and their potential to boost the top line.

A highlight for the analysts is the rapid growth of Bajaj Housing Finance. In a surprisingly short time - since its inception in 2018 - it has become the second-largest housing finance company, reaching an AUM of approximately Rs 81,200 crore as of September 2023. This represents a 28% CAGR over the past three years, from a mix of B2B channels, their captive customer base, and B2C channels involving builders and open market sourcing.

2. Global Health:

Motilal Oswal maintains its 'Buy' rating on this healthcare facilities company, with a target price of Rs 1,170, indicating a 17.2% upside. Analysts Tushar Manudhane, Sumit Gupta and Akash Dobhada are optimistic about the company's financial transformation, where it turned net cash positive in FY23 from a debt of Rs 300 crore in FY19. Anticipating continued growth, they foresee the company expanding its bed capacity to over 3,500 in the next two to three years.

The analysts project capacity increases in North and Central India. They highlight the significance of the upcoming Noida facility, expected to commence operations by the end of FY25, which is predicted to boost the company's footprint in the Delhi NCR region.

Manudhane, Gupta, and Dobhada forecast robust growth driven by the addition of 552 beds to existing facilities and 1,000 beds to upcoming facilities. They expect a 28% CAGR over FY23-26 due to a faster scale-up of existing hospitals, additional business from new hospitals, and better operating leverage.

3. NTPC:

Axis Direct initiates coverage on this electric utilities company with a ‘buy’ call and a target price of Rs 345, implying a potential upside of 8.4%. Analyst Aditya Welekar says, “The firm benefits from thermal capex revival to meet power demands during non-solar hours, and its thermal capacity is entirely backed by long-term PPAs, providing stable long-term cash flows.” 

Welekar notes the key role of thermal power in providing grid stability due to the seasonality of renewable energy (RE). NTPC has set a target of producing 34 million tonnes of coal in FY24 and scaling up this capacity to 70 million tonnes over the next five years. With domestic renewable energy capacity expected to increase from 172 GW in FY23 to 596 GW by FY36, the firm is set to raise its RE capacity from 3.3 GW in FY23 to 60 GW by FY32. The company’s lower cost of debt compared to its peers, due to its sovereign debt rating, provides a competitive advantage in fundraising for RE projects.

Welekar believes that the firm can use a mix of conventional and renewable energy sources to meet the round-the-clock power needs of corporates, who usually have better credit profiles compared to state distribution companies. Additionally, NTPC’s 10 GW under-construction thermal capacity is expected to be commissioned by FY26, along with its entry into various green energy initiatives like green hydrogen and nuclear power.

4. Affle (India):

Sharekhan maintains a ‘Buy’ call on this internet software and services company with a target price of Rs 1,535, indicating an upside of 18.2%. Analysts from Sharekhan say, “Affle has registered healthy revenue growth despite a high base and industry headwinds, driven by consistent growth across key global emerging markets, including India.” 

The analysts believe that the company is well-positioned to capture a larger market share, benefitting from improving advertising spends in its key markets and also international markets. This growth is aided by the acquisition of Youappi and the firm’s growing investments in AI. They expect sales and profit CAGR of 23% and 22%, respectively, over FY24-26. Affle is also actively expanding its patent portfolio to stay ahead in the data-driven industry. Currently holding 21 patents, the company is pursuing 15 more in advanced AI areas. 

The analysts remain optimistic on the back of Affle’s growth in key global emerging markets and improvements in developed markets, aided by turnaround plans and investments.

5. Jio Financial Services:

KRChoksey initiates a ‘Buy’ coverage on this finance company with a target price of Rs 290. This indicates an upside of 19.4%. Analyst Unnati Jadhav says, “Jio Financial Services hopes to democratize financial services across the country by offering innovative products that will be delivered digitally.” She believes that the consumer lending segment in particular will dominate the company’s business profile, driven by robust credit offtake in this segment. Jadhav notes the company’s plans to build an ecosystem to cater to various financial services. It is exploring partnerships to offer co-branded credit cards to its customers.

Jio Financial is still in its infancy with many plans still on paper, but Jadhav believes that Jio Financial Services is well-positioned to gain higher traction across all business segments, given its strong parentage and the existing customer base it can tap into. She adds that the company’s diversified business model is well-suited to meet the financial requirements of its customers. She also expects capital adequacy to remain strong, supporting its growth aspirations.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Jan 2024
Market closes lower, DLF's new luxury residential project pre-sells for Rs 7,200 crore
By Trendlyne Analysis

Nifty 50closed at 21,513.00 (-197.8, -0.9%), BSE Sensexclosed at 71,355.22 (-670.9, -0.9%) while the broader Nifty 500closed at 19,417.70 (-172.9, -0.9%). Market breadth is in the red. Of the 2,066 stocks traded today, 800 were on the uptrend, and 1,237 went down.

Indian indices extended the losses from the afternoon session and closed in the red, with the benchmark Nifty 50closing at 21,513 points. The Indian volatility index, Nifty VIX, rose 6.6% and closed at 13.5 points. BGR Energy Systems defaulted on working capital loans totaling Rs 631 crore from ICICI Bank, Indian Bank and Bank of India.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red following the benchmark index. Nifty Realty and Nifty Media closed marginally higher than their Friday’s close. According to Trendlyne's sector dashboard, media was the top-performing sector of the day as it rose 2.6%. 

Major European indices trade in the red. US index futures trade lower, indicating a negative start to the trading session. Germany’s trade surplus for November expands to $20.4 billion against estimates of $17.9 billion.

  • Relative strength index (RSI) indicates that stocks like Godrej Consumer Products, GlaxoSmithKline Pharmaceuticals, Sun Pharma Advanced Research and MRF are in the overbought zone.

  • India overtakes Taiwan to become second in the MSCI Emerging Markets index. Its participation has increased significantly over the past eight years from 7% to 17.1%. Nuvama Institutional Equities expects it to reach 20% by mid-2024.

  • Capri Global Capital surges over 15% in trade and reaches a new 52-week high of Rs 920. The company ranks medium on Trendlyne’s Checklist, scoring 47.8%. It also features in a screener of companies with strong momentum.

  • HDFC Asset Management and Angel One surge by 4.5% and 10.1% respectively, ahead of their results on January 11 and 15.

  • BGR Energy Systems falls due to defaults on working capital loans totalling Rs 631 crore from ICICI Bank, Indian Bank and Bank of India.

  • Power Mech Projects wins an order worth Rs 825 crore from Mahan Energen for civil and mechanical works in Madhya Pradesh thermal power projects.

  • Solar Industries is rising as it bags an order worth Rs 994 crore from an international client to supply products for defensive application for the next three years.

  • Phoenix Mills rises to an all-time high of Rs 2,598 as its board approves the incorporation of its wholly owned subsidiary Astrea Realty. It appears in a screener of stocks with improving RoA.

  • Reports suggest that 32.6 lakh shares (1% equity) of Honasa Consumer, amounting to approximately Rs 142.4 crore, change hands in a large trade.

  • Chambal Fertilisers & Chemicalsrises as its board approves a Rs 700 crore buyback of up to 1.6 crore fully paid-up equity shares (a 3.7% stake) at Rs 450 each.

  • Private bank stocks like Bandhan Bank, Federal Bank, City Union Bankand Kotak Mahindra Bankare falling in trade. All constituents of the broader Nifty Private Bankindex are also trading in the red.

  • ONGCrises to an all-time high of Rs 220.8 as it begins oil production from the KG Deep Basin block in West Bengal. The company appears in a screenerof stocks with improving cash flow from operations.

  • Mutual Funds' net equity inflow rises 9.4% MoM to Rs 16,997 crore in December, according to data released by the Association of Mutual Funds in India (AMFI). Total AUM stands at Rs 50.8 lakh crore during the same period.

  • HDFC Securities upgrades V-Mart Retailto 'Buy' from 'Sell', with an improved target price of Rs 2,550 per share. This implies a potential upside of 19.6%. The upgrade follows strong festive sales and streamlined merchandising, expected to boost profit margins. The brokerage forecasts the company's revenue to grow at a CAGR of 11.8% over FY23-26.

  • Jupiter Wagons rises sharply as it bags an order worth Rs 100 crore from an automobile manufacturer. The order involves manufacturing and supplying four rakes of double-decker automobile carriers.

  • Sula Vineyards surges over 14% and reaches a new 52-week high of Rs 650, as CLSA upgrades its rating to ‘Buy’ and raises the target price to Rs 863. The upgrade follows the Maharashtra government's decision to reintroduce its wine promotion scheme for five years. The brokerage believes the company is placed to benefit the most, being the market leader.

  • Godrej Industriesrises to an all-time high of Rs 898 as it signs a memorandum of understanding (MoU) with the Gujarat government. Under the MoU, the company's chemical division plans to invest Rs 600 crore to expand its operations in the state over the next four years.

  • ACCacquires a 55% stake in Asian Concretes and Cements for Rs 755 crore, boosting its cement capacity to 38.6 MTPA. It appears in a screenerfor stocks with strong momentum.

  • DLFrises to an all-time high of Rs 773.4 with its new luxury residential project pre-sold for Rs 7,200 crore. The company appears in a screenerof stocks with strong momentum.

  • Retail sales for the automotive industry rise 21.1% YoY to 19.9 lakh units in December, according to data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 27.6% YoY, and car sales increase by 2.6% YoY.

  • Tata Steel rises as its India steel production increases by 6% YoY to 5.3 million tonnes in Q3FY24. The company's delivery volumes improve by 10% YoY. It appears in a screener of stocks nearing their 52-week high with significant volumes

  • Porinju Veliyath's wife, Litty Thomas, sells a 0.6% stake in Ansal Buildwell in a bulk deal on Friday.

  • Titan is rising as its revenue grows by 22% YoY in Q3FY24, owing to improvement in the jewellery, watches & wearables, emerging businesses and CaratLane segments. It appears in a screener of stocks where FIIs have increased their shareholdings.

  • TVS Motorrises as it signs a memorandum of understanding (MoU) with the government of Tamil Nadu to invest Rs 5,000 crore in the state over the next five years.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,123.80, 3.05%), TVS Motor Company Ltd. (2,037.80, 2.96%) and PB Fintech Ltd. (817.00, 2.28%).

Downers:

Largecap and midcap losers today include Bandhan Bank Ltd. (233.10, -7.39%), Bank of Baroda (223.45, -4.77%) and Marico Ltd. (523.75, -4.08%).

Movers and Shakers

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

Top high volume gainers on BSE included Trident Ltd. (48.20, 17.85%), Capri Global Capital Ltd. (889.75, 14.61%) and Garware Technical Fibres Ltd. (3,707.95, 9.55%).

Top high volume losers on BSE were Bandhan Bank Ltd. (233.10, -7.39%), Navin Fluorine International Ltd. (3,609.70, -5.57%) and Marico Ltd. (523.75, -4.08%).

Tata Teleservices (Maharashtra) Ltd. (94.80, 3.49%) was trading at 7.9 times of weekly average. Network18 Media & Investments Ltd. (100.55, 8.06%) and Atul Ltd. (6,855.00, -2.47%) were trading with volumes 5.5 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

50 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,168.85, 1.26%), Aurobindo Pharma Ltd. (1,114.85, -0.81%) and Bharat Forge Ltd. (1,256.05, -0.87%).

4 stocks climbed above their 200 day SMA including Easy Trip Planners Ltd. (43.35, 4.71%) and Data Patterns (India) Ltd. (1,978.55, 3.95%). 11 stocks slipped below their 200 SMA including Marico Ltd. (523.75, -4.08%) and Page Industries Ltd. (37,693.40, -3.12%).

 
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The Baseline
06 Jan 2024
Analysts pick their top sectors for 2024 | Screener: stocks with high target price upside
By Tejas MD

Every January at the start of the new year, people are reliably infected with a disease we call 'predictionitis', where they fall over each other to predict events for the next year. Sadly, it is an illness with no cure.

This year as well, 2024 has begun with predictions around the Nifty 50, with analysts saying that the index may reach 25,000. India’s strong growth is expected to boost the stock market - the economy is set to outperform other large countries in FY24, with growth estimated at 6.7-7%.

India stood out in 2023, attracting the highest FII inflows among emerging countries. During the latest monetary policy meeting, RBI Governor Shaktikanta Das said, 'Despite challenges in the global economy, India is poised to become the new growth engine of the world.'

However, the landscape isn't all roses and jasmine - some signals are worrying. Foreign direct investment to India has declined, with the usual average of $40 billion in annual FDI sinking to just  $13 billion in 2023.

Private capex by Indian companies is still weak, despite pleas from senior ministers like Nirmala Sitharaman to invest: 'Are you like Hanuman,' she asked Indian CEOs, 'that you do not believe in your own strength, and someone has to stand next to you and say, "you can do it"?'. 

In this week’s Analyticks, we, with our own case of predictionitis, identify sectors that are likely to excel in 2024, helped by macroeconomic tailwinds. We will also check the roadblocks that could ruin the party. 

  • 2024’s star sectors: The top four sector picks by analysts for the new year
  • Screener: Rising stocks with high average Forecaster target price upside % 

Analysts pick their top sectors for 2024

The Nifty 500 closed in the green for the fifth consecutive year in 2023, with a 25.8% gain. Half of these gains were achieved in the last three months of 2023. Realty, hardware technology & equipment, utilities, transportation and fertilizers sectors played an outsize role in driving the Nifty 500 higher.

Top five sectors driving Nifty 500's growth in October-December 2023

The realty sector led the pack with a 36% gain in the last three months. It is also among the top sectoral picks for 2024 by several brokerages, including ICICI Securities, BOB Capital Markets, and Motilal Oswal Financial Services. 

Banking and finance, infrastructure and general industrials are other sectors that have been favourites in 2023, which analysts believe will continue to outperform in 2024. Sunil Subramaniam, CEO of Sundaram Mutual Fund, says, 'Banking and financial services will be the focus at the beginning of the year. After that infra and capital goods will take over.'

Why are analysts so bullish on these sectors? They are counting on two major factors: likely interest rate cuts, and the Centre’s push on infrastructure development. 

Financial services and realty sectors are counting on rate cuts in 2024

Tomato sellers were hiring bouncers to protect their produce in the first half of 2023, as inflation sent prices up, and the RBI raised interest rates. Now, with inflation cooling and below the RBI’s upper tolerance limit of 6%, analysts are hoping for rate cuts. Deutsche Bank expects the RBI to cut interest rates by 100 bps in FY25, starting in the second half of 2024. 

Lower rates will reduce borrowing costs for companies and consumers. Loan demand in India was strong in 2023 despite high rates, driving the growth of the banking and finance sector. Interest rate cuts will give the sector a further boost.  

Advances growth on a sharp rise since FY20

Banks and NBFCs plan to disburse more loans, as demand grows in 2024. According to IDBI Capital, Federal Bank, ICICI Bank and Shriram Finance will be growth stocks in the sector.

Another sector that is expected to do well due to rate cuts is realty. Housing demand has jumped sharply in the past year, with decade-high sales in the top seven cities, and unsold inventory at record lows. As the realty sector operates on high debt levels, falling interest rates will help both builders and homebuyers. Analysts expectSunteck Realty, Mahindra Lifespace Developers and Macrotech Developers to benefit from the rate cuts.

Government capex boosts infra and general industrial sectors, but private capex is still missing in action

On my way to work in Bangalore, I often see earthmovers, men in hard-hats, and construction material piled up on the sidewalks. It feels like there is always construction going on - a new road, flyover, metro line. Most of these new projects are part of the Centre’s infra push, as the government increased the capex allocation in its budget. 

This has led to a sharp increase in order wins for infrastructure companies. According to analysts, NCC and J Kumar Infraprojects are expected to benefit due to their on-time order execution. In Q2FY24, NCC’s order book hit an all-time high of Rs 61,796 crore (up +54% YoY) while J Kumar Infra’s order book rose to 16,447 crore (up 43.7% YoY).

In the general industrials sector, brokerages are positive about Siemens and ABB India on the back of PLI schemes and high capacity utilization. 

But with capex, the active participation of private players is a missing piece.

Alex Travelli of The New York Times says 'Green and red lights are flashing for the Indian economy at the same time. The government will eventually have to reduce its extraordinary spending, which could impact the economy if private sector investment doesn’t pick up.'

The corporate sector is still on the fence. This is likely due to high interest rates, which are expected to fall in 2024. Companies are also looking for political stability, and waiting to see if the ruling party gets re-elected this year. 

The 'joker in the pack': wars are a key risk in 2024 

The problem with war is that it can be contagious. A small war can quickly spiral into a regional crisis, dragging in neighbouring countries. February will mark two years since the beginning of the Russia-Ukraine war, and tensions are igniting elsewhere. The Israel-Gaza war is now seeing conflict spillover into the Red Sea, where Iran-backed Houthi rebels are targeting container ships and oil tankers. The Israel-Lebanon border has also turned violent.

Ranen Banerjee, Partner at PwC India’s Economic Advisory Services, says 'The joker in the pack is geopolitics and conflict hotspots. The trend in current conflicts will determine whether GDP growth rates will bias to the lower or higher end.' 

Screener: Rising stocks with high average Forecaster target price upside %

Godawari Power & Ispat leads in average Forecaster target upside

After a slow start to the year, the Indian market rose sharply in the second half of 2023 with the Nifty 50 index rising by 12.4% over the past six months. This can make it hard for investors to find stocks with more potential to grow. In this screener, we take a look at stocks with high average Forecaster target price upside % despite seeing gains in their prices over the past quarter. The screener is dominated by the software & services, banking & finance and chemicals & petrochemicals sectors.

Major stocks that appear in the screener are Godawari Power & Ispat, RattanIndia Enterprises, EPL, EIH, Adani Energy Solutions, Infibeam Avenues and Tanla Platforms.

Godawari Power & Ispat has the highest average Forecaster target price upside of 28.1%, following a 23.2% rise over the past quarter. This metals & mining stock’s price has increased by 96.9% over the past year. Analysts believe that the company still has room for growth, owing to rising domestic demand for iron ore and increased production of high-grade pellets.

EPL is another player with a 24.5% average Forecaster target price upside. It has also risen 6.1% over the past quarter. ICICI Securities believes that this commercial services & supplies company will see revenue growth as recyclable tubes are expected to account for 60% of its revenue by FY26. The company is also planning to expand its customer base into the Brazil market.

You can find more screenershere.

 
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The Baseline
05 Jan 2024
Five Interesting Stocks Today

1. Torrent Power:

This electric utilities company rose by 7.4% to touch its all-time high of Rs 1,071.9 per share on Thursday after signing four memorandums of understanding (MoUs) worth Rs 47,350 crore with the Gujarat Energy Development Agency (GEDA). 

The company is set to receive Rs 47,350 crore under the Gujarat government’s investment promotion initiative. The stock has also risen by 12.9% over the past week, helping it appear in a screener of affordable stocks with high momentum and return on equity (RoE). The largest MoU of the four, worth Rs 30,650 crore, is for setting up 3,450 MW of solar power and 1,045 MW of hybrid power projects in Banaskantha, Jamnagar, Patan and Surendranagar. 

Torrent Power also expects to commission a 300 MW solar power project by the end of FY24. Along with this, the acquisition of Air Power Wind Farm will expand its wind power capacity. The management also plans to enter the hybrid energy segment due to the low return profiles from solar and wind power projects. The higher capacity utilization factor (CUF) of hybrid projects is likely to facilitate increased power generation and ensure a consistent supply.

The stock ranks high in Trendlyne’s checklist with a score of 73.9%. It also has good Trendlyne Durability and Momentum scores. According to Trendlyne’s Forecaster, Torrent Power has a consensus recommendation of ‘Sell’ from 10 analysts tracking the stock with an average target price of Rs 776.9 per share. This indicates a potential downside of 25.2%.

2. Sobha: 

This realty firm rose 15.7% on Thursday after being chosen as one of the top picks for 2024 by Motilal Oswal, with a target price of Rs 1,400. According to Trendlyne’s Technicals, the stock has risen by 31.1% in the past month, outperforming the Nifty Realty Index by 16.7%. This surge can be attributed to the company maintaining a pre-sales revenue of Rs 2,500 crore for 9MFY24.

Sobha has long been seen as primarily a Bengaluru company, with the tech city accounting for 70% of its sales until FY20. However, with the introduction of projects in Kerala, Delhi NCR, and Hyderabad, Bengaluru's sales share dropped to 54% (from 65%) in H1FY24. Despite Bengaluru remaining a crucial geo, the company aims to expand in NCR, Pune, and Hyderabad. It's working on a 15 million square feet (msf) project pipeline, with 8 msf outside Bengaluru. Higher price realisations across major cities have also helped in margin expansion. 

Sobha plans to launch 12 msf of projects in the next 15 months. With over 200 msf of land holdings,  there is potential to increase its launches to 9-10 msf by FY26.

The firm, in its Q3FY24 update this week, reported a 37% YoY increase in total sales value to Rs 1,952 crore, with revenue realisation growing by 21.5% YoY. After declining for two consecutive quarters, Trendlyne’s Forecaster projects that the company’s net income will rebound to match Q3FY23 levels. Based on these estimates, Sobha is currently trading at a PE of 43.9 for  FY24E and at 24.2 of FY25E.

Motilal Oswal says that initiating projects on significant land parcels in Bengaluru and Tamil Nadu is a key driver for higher land valuations. Sobha's land, valued at Rs 3,800 crore (CMP), is assessed by Motilal Oswal at Rs 6,000 crore. The broker upgrades the firm to a ‘Buy’ rating. 

3. NMDC:

This mining company has risen by 7.5% in the past week and touched a 52-week high of Rs 227.3 per share today after announcing price hikes for its products. The company has raised the prices of lump and fine ores by Rs 200 and Rs 250 per tonne, respectively. Since September 2023, the prices of both lump and fine ores have cumulatively increased by Rs 750 per tonne. 

Global iron ore prices have been rising recently due to expectations of economic growth in China, the world’s largest iron ore importer. This increase comes after China implemented major economic stimulus measures. Even after the latest price hikes, NMDC’s prices are still 60% lower than international rates, which crossed $135 per tonne in January from $105 per tonne in August last year. This gives the firm room to increase prices further.

Domestic steel demand is expected to increase at a CAGR of 8% till FY25, as both government and private capex in infrastructure is set to rise. Additionally, all domestic tier-1 steel manufacturers are expanding their capacities to meet domestic demand. According to NMDC’s management, capex for FY24 will exceed the initial target of Rs 1,600 crore and reach Rs 2,000 crore.

Motilal Oswal says, “The firm is set to produce 46 million tonnes of iron ore in FY24, and likely to produce more than 50 million tonnes by FY25 on the back of improved capacity and strong domestic demand”. However, only 36 of 110 iron blocks auctioned since FY16 are operational, which could result in intense competition if the remaining mines become operational.

4. Tata Motors: 

This automobiles & auto components company touched a new 52-week high of Rs 805.9 today. This comes after it reported that its total domestic wholesales rose by 4% YoY to 76,138 units in December. In Q3FY24, Tata Motors’ passenger vehicle (PV) wholesales grew by 5% YoY, while that of commercial vehicles (CV) improved marginally by 1% YoY. Girish Wagh, the Executive Director, said, “The rise in CV sales is due to demand from government infrastructure initiatives, expansion in core industries, and sustained growth in e-commerce.”

According to N Chandrasekaran, Chairman of Tata Motors, it is focused on increasing the profitability of JLR (Jaguar Land Rover) rather than boosting volumes. The firm is improving earnings per vehicle while reducing its debt levels. Domestic PV sales are seeing traction in its electric vehicle and SUV segments. The company expects improved demand in Q4FY24 across most CV segments, from a pick-up in infrastructure and mining activities, and the harvesting season. 

The automobile major has risen by 4.9% over the past week till Thursday. As a result, it features in a screener of companies with strong momentum.

The EV segment is gaining ground in JLR and Tata Motors India. JLR plans to invest £15 billion in electric vehicle development in the next 5 years. Tata Motors India sold 69,173 EVs in 2023, which is a 59% YoY increase. This is expected to further grow by 35% in 2024.

Post Tata Motors’ business update announcement, JP Morgan has upgraded its rating to ‘Overweight’ and revised the target price to Rs 925. This upgrade is driven by better-than-expected margins and cash flow for JLR. The brokerage also highlighted that the company has maintained its market share in the PV space, despite new launches by competitors.  

5. Zomato:

This food delivery company’s stock price hit its 52-week high of Rs 134.4 on Friday and rose by 8.2% in the past week after increasing its platform fee from Rs 3 to Rs 4 per order in its key markets. This marks a 33.3% hike, effective from January 1. This is expected to improve the firm’s EBITDA by 5%. 

During the month, Zomato received a show cause notice (SCN) from the Directorate General of GST Intelligence for an alleged tax liability of Rs 401.7 crore. This includes interest and a penalty for the period from October 2019 to March 2022. The demand relates to GST not levied on delivery charges collected from customers, on behalf of delivery partners. 

The company said it will be filing an appropriate response to the SCN. Zomato has denied the correctness of the tax claim, stating that delivery services were provided by partners directly to customers, not by the company and do not require GST. However, service aggregators like Uber charge 5% GST on driver charges and 18% on comfort charges. 

Zomato reported profits for the first time in Q1FY24, followed by a second consecutive time in Q2. However, the tax liability may affect the company’s profitability in Q3FY24. Trendlyne Forecaster estimates Zomato to report a net profit of Rs 97.5 crore in Q3FY24, as against a loss of Rs 346.6 crore in Q3FY23. The company also appears in a screener for stocks with increasing quarterly net profit and profit margin.

CLSA maintains its ‘Buy’ call on Zomato, despite the SCN. The brokerage believes the increase in platform fee could partially offset (about 25%) the impact of GST on its delivery charge, in case the company is liable.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Jan 2024
Market closes higher, Macrotech Developers' Q3 pre-sales rise 12% YoY to Rs 3,410 crore
By Trendlyne Analysis

Nifty 50closed at 21,710.80 (52.2, 0.2%), BSE Sensexclosed at 72,026.15 (178.6, 0.3%) while the broader Nifty 500closed at 19,590.60 (49.4, 0.3%). Market breadth is in the green. Of the 2,038 stocks traded today, 1,073 were on the uptick, and 938 were down.

Indian indices extended their gains from the afternoon session and closed in the green, with the benchmark Nifty 50index closing at 21,710.8 points. The volatility index, Nifty VIX, fell 5.3% and closed at 12.6 points. India’s Services PMI grew to a three-month high of 59 in December, compared to 56.9 in November. This marks the 29th consecutive month where the PMI has stayed above the 50 mark, indicating an expansion in the sector.

Nifty Smallcap 100 closed in the green, outperforming the benchmark index. However, the Nifty Midcap 100 closed flat. Nifty IT and Nifty Infra closed higher than their Thursday close. According to Trendlyne's sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day. 

European indices traded in the red, amid weak global cues. Major Asian indices closed flat or lower, except for Japan’s Nikkei 225 and India's BSE Sensex, which closed in the green. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures traded in the green after falling 1% on Thursday.

  • Kotak Mahindra Bank sees a short buildup in its January 25 future series as its open interest rises 10% with a put-call ratio of 0.4.

  • Following the Supreme Court's verdict in the Hindenburg case, Gautam Adani's net worth rises by $7.67 billion, making him the richest person in India. His net worth is now $97.6 billion as Adani Group's stocks continue to see positive momentum in the stock market.

  • Power Grid Corporation of India touches a new 52-week high of Rs 245 as it wins the bid to develop an inter-state transmission system of 2,500 MW under the transmission scheme for a solar energy zone in Bidar, Karnataka.

  • Shree Cements is falling as the income tax department reportedly imposes a fine of Rs 4,000 crore. This move comes after a survey indicated that the company inappropriately claimed Rs 8,500 crore over the past nine years.

  • Fintech company MobiKwik reportedly re-files for an IPO with SEBI. As per the DRHP, the offer now includes only a fresh issue worth around Rs 700 crore, with no offer-for-sale (OFS) component.

  • Emkay Global Financial recommends a 'Buy' call on Dabur India with a target price of Rs 650. This rating is based on its diversified portfolio, which the management plans to capitalise on with an improving demand scenario. The brokerage expects the firm to post 7% YoY revenue growth and 9% YoY earnings increase in Q3FY24.

  • GAIL India is rising as Vitol Asia announces a deal to supply one million metric tonnes of LNG annually for 10 years, starting from 2026, from its global LNG inventory.

  • Kaveri Seed rises as it approves a buyback of equity shares worth Rs 325 crore. The buyback is of up to 44.8 lakh equity shares, representing an 8% stake, at Rs 725 per share.

  • Sobha is falling despite its Q3FY24 sales value rising 37% YoY to Rs 1,952 crore. Average price realisation improves by 21.5% YoY to Rs 11,732 per square feet, supported by the launch of SOBHA Neopolis.

  • BNP Paribas believes Q3FY24 will be the final quarter of weakness for Indian IT firms. The brokerage predicts a rebound in revenue growth starting from Q4FY24 due to an improving overall economic landscape and significant deal acquisitions by these companies.

  • Foreign institutional investors invest Rs 3,384.1 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 1.6 lakh crore from foreign investors. Meanwhile, mutual funds invest Rs 959.6 crore in the equity market over the same period.

  • GE Power India rises to a new 52-week high of Rs 268.8, driven by the draft tariff norms proposed by the Central Electricity Regulatory Commission. The draft norms for FY25–FY29 have raised the return on equity for new storage-based hydro projects, including pumped hydro, to 17% from 16.5%.

  • HDFC Bank's gross advances surge by 62.4% YoY to Rs 24.7 lakh crore in Q3FY24, helped by an improvement in the domestic retail, commercial and rural banking loans. Its deposits increase by 27.7% to Rs 22.1 lakh crore during the quarter.

  • India’s Services PMI grows to a three-month high of 59 in December, compared to 56.9 in November. This marks the 29th consecutive month where the PMI has stayed above the 50 mark, indicating an expansion in the sector.

  • Suzlon Energy is rising after securing an order from Everrenew Energy to supply 75 wind turbines with a capacity of 3MW each. The project is expected to provide electricity to 1.8 lakh households in Tamilnadu.

  • BEML rises to an all-time high of Rs 3,080.4 as it reportedly bags a Rs 329 crore order from the Ministry of Defence. The order involves manufacturing 56 minefield-marking equipment.

  • Kalyan Jewellers Indiarises to an all-time high of Rs 379.8 as its India operations report a revenue growth of 40% YoY in Q3FY24. The company appears in a screenerof stocks with improving book value per share.

  • Reports suggest that 69.1 lakh shares (0.1% equity) of Tata Steel, amounting to Rs 92.5 crore, change hands in a large trade.

  • Waaree Renewable Technologiessurges as it announces that it may consider a proposal for the sub-division or split of its equity shares. It will hold a meeting of the board of directors on January 20 to discuss the matter.

  • Equitas Small Finance Bank rises to an all-time high of Rs 114.2 as its deposits grow by 39% YoY to Rs 32,385 crore. The bank's gross advances improve by 32% YoY.

  • Auto stocks like Tube Investments of India, Sona BLW Precision Forgings, Hero Motocorp and TVS Motor are rising in trade. All constituents of the broader Nifty Auto index are also trading in the green.

  • Hindustan Aeronautics (HAL) rises sharply as UBS initiates coverage with a ‘Buy’ rating and a target price of Rs 3,600. The brokerage believes the company is a credible player in the defence space. It expects HAL’s order book to triple to Rs 2.4 lakh crore in FY26, driven by increased defence expenditure. UBS also projects that HAL could benefit from more aircraft orders worth $60 billion from now until FY28E.

  • Macrotech Developers surges and hits an all-time high of Rs 1198.9 as its Q3FY24 pre-sales rise 12% YoY to Rs 3,410 crore. However, the collections for the quarter fall 3% to Rs 2,590 crore.

  • RBL Bank rises as its Q3FY24 deposits grow by 13% YoY to Rs 92,743 crore. The bank's advances also increase by 20% and CASA ratio improves by 320 bps YoY. It appears in a screener of stocks with increasing quarterly revenue.

  • RECis rising as its subsidiary, REC Power Development & Consultancy, reportedly signs an MoU worth Rs 2,094 crore with the Gujarat government. According to the reports, the investment is earmarked for a smart metering project at Paschim Gujarat Vij Co.

  • Jupiter Wagonsrises over 4% after securing an order worth Rs 473 crore from the Ministry of Defence to manufacture and supply 697 bogie open military (BOM) wagons.

Riding High:

Largecap and midcap gainers today include Endurance Technologies Ltd. (2,116.45, 9.53%), Tube Investments of India Ltd. (3,751.05, 5.38%) and APL Apollo Tubes Ltd. (1,523.75, 5.02%).

Downers:

Largecap and midcap losers today include Gujarat Fluorochemicals Ltd. (3,625.60, -5.20%), Shree Cements Ltd. (27,023.30, -4.71%) and Bandhan Bank Ltd. (251.70, -3.49%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Alok Industries Ltd. (32.30, 18.97%), Endurance Technologies Ltd. (2,116.45, 9.53%) and Finolex Industries Ltd. (237.35, 8.73%).

Top high volume losers on BSE were Shree Cements Ltd. (27,023.30, -4.71%), Aegis Logistics Ltd. (334.10, -2.85%) and Nestle India Ltd. (2,666.40, -1.67%).

Krishna Institute of Medical Sciences Ltd. (1,999.95, 1.08%) was trading at 11.2 times of weekly average. Phoenix Mills Ltd. (2,468.00, 4.38%) and Trident Ltd. (40.90, 6.79%) were trading with volumes 7.2 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

84 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,154.25, 2.76%), Amara Raja Energy & Mobility Ltd. (834.95, 2.22%) and Ambuja Cements Ltd. (542.35, -1.29%).

9 stocks climbed above their 200 day SMA including Carborundum Universal Ltd. (1,148.00, 2.97%) and Sumitomo Chemical India Ltd. (417.40, 2.86%). 4 stocks slipped below their 200 SMA including Nestle India Ltd. (2,666.40, -1.67%) and Adani Wilmar Ltd. (377.70, -1.02%).

 
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The Baseline
04 Jan 2024
By Akshat Singh

In India, the investment landscape has shifted. While FIIs were net sellers in 2022, they were net buyers in Indian equities in 2023, contributing a total inflow of Rs 1.58 lakh crore. MFs were also net buyers, injecting nearly the same amount (Rs 1.57 lakh crore) as FIIs into Indian stocks. MFs were able to catch up to FIIs in terms of equity investments in 2023 as they were more consistent, and divested in only one month compared to a four-month outflow by FIIs. 

Sunil Singhania, a superstar investor and founder of Abakkus Asset Manager, says “When it comes to FII flows my views are very positive. In the next two to three years, FII flows into India will be very high.”

In the equity market, FIIs’ cash segment activity was a major factor, influencing index movements. Of the four months that Nifty 50 went lower, three had FIIs withdrawing from the equity market. 

When it came to futures and options, FIIs were net sellers with an outflow of Rs 6,319.8 crore and Rs 8.5 lakh crore, respectively. 

FIIs divested in three of four months that Nifty 50 declined

In this edition of Chart of the Week, we take a look at the monthly FII/DII data on Trendlyne’s FII/DII dashboard and identify major trends. 

Jan and Feb 2023 saw high FII outflows in equities

The equity markets began 2023 on a sour note, with FIIs taking out Rs 25,292 crore in January. This led to a 2.4% fall in the Nifty 50. However, a substantial Rs 1.2 lakh crore inflow into the options segment by FIIs led them to be buyers at Rs 91,618.4 crore. MFs were net buyers of equities with a total inflow of Rs Rs 21,353.2 crore in January 2023.

Equities overall saw major outflows in January, particularly in the financials and IT sectors, with consumer services, oil & gas, telecommunications, and auto sectors also seeing significant declines. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed to profit booking as the key driver here. “The simple logic behind FII selling in January is that India is the only large market where FIIs are still sitting on good profits after the disastrous 2022 performance in most global markets.” 

In February 2023, FIIs divested Rs 636.4 crore from the equities. This month also saw FIIs return to index options, buying Rs 65,336.3 crore expecting market volatility. Sector-wise, FIIs reduced their stakes in metals, power and oil & gas, while investing in the capex-heavy capital goods sector, motivated by the Rs 10 lakh crore capex investment announced in the union budget 2023. This was followed by a 2% fall in the Nifty 50. MFs were net sellers, with an outflow of Rs 515.1 crore in February 2023. This selling was partly induced by the Adani-Hindenburg case.

Adani stocks attract 25% of March 2023’s total FII inflow

In March 2023, FIIs invested Rs 12,578.2 crore in equities and MFs invested Rs 20,764.3 crore surpassing FIIs investment. The major chunk of FII buying, amounting to Rs 15,446 crore, was made by GQG Partners in four Adani Group stocks. This also led to a 31% sequential rise in MF inflows, according to AMFI. 

FII investments continued in April 2023, with an inflow of Rs 15,733.4 crore in equities. FIIs turned overweight on the financials and automotive sectors, which constituted 50% and 14% of their total investment, respectively. On the other hand, MFs turned net sellers, with a total outflow of Rs 6,766.7 crore attributable to an outflow of Rs 4532.6 crore from the equity market. 

In May, FIIs had an inflow of Rs 37,369.3 crore in equities and an outflow of Rs  40,036.6 crore in index options. MFs invested Rs 2,446.5 crore into the equities market and had an overall outflow of Rs 2,359.6 crore.

Financials sector sees fluctuating investment patterns 

In June, FIIs invested Rs 43,310.8 crore in stocks, providing a positive boost to the market. MFs invested Rs 5,664 crore into the equities market. Mutual funds ended their two-month selling streak and re-emerged as overall net buyers with a total investment of Rs 514.6 crore. Most of the FII investment was done in the financial services, capital goods, and automobile sectors. According to Nirav Karkera, Head of Research at Fisdom, “The banking and financial services segment is large and fairly diversified into smaller, specific sectors. It saw FIIs and MFs reallocate funds from heavyweight banks to smaller banks and NBFCs.” 

 After significant inflows in previous months, FIIs turned sellers in the financial services and FMCG sectors. Their net purchases decreased in sectors like IT and capital goods, potentially influenced by rising bond yields, higher oil prices, and inflation concerns.

FIIs execute major sell-offs in options starting September

FIIs sold off Rs 18,893.8 crore in equities in September, driven by concerns over potential US Federal Reserve interest rate hikes to curb high inflation. The FIIs also began their options selling spree with a divestment of Rs 2.4 lakh crore. This sell-off was offset by MFs buying Rs 18,512.4 crore in equities. 

In addition, Chinese stocks showed an uptick due to their previous market decline and government efforts like interest rate cuts. This drew FII focus from India to China. 

FIIs continued their selling streak with a Rs 21,679.9 crore of shares divestment in October 2023. This led to a fall of 2.8% in the Nifty 50. But mutual funds invested Rs 16,916 crore in equities. The FII outflow was because of rising US treasury yields due to the Federal Reserve's hawkish interest rate stance, and market volatility from the Israel-Hamas conflict. 

Both FIIs and MFs were net buyers of equity in November, with inflows of Rs 9,433.8 crore and Rs 17,654.3 crore, respectively. This led to FII holdings in Indian equities dropping to a 10-year low, due to the mass selling from August to October. 

MFs, however, came to the rescue of Indian markets. According to ICICI Securities, MFs have adopted a more careful and focused strategy, favouring stable and promising sectors amid uncertainty. Healthcare, private banks, and auto saw substantial MF inflows, with multi-cap and mid-cap funds attracting the most attention.

In December 2023, FIIs were net equity buyers with an inflow of Rs 56,390.6 crore while MFs invested Rs 23,894.7 crore in equities. 

The influx of funds into equities was on the back of record highs in major indices and a pause in Fed rate hikes. However, FIIs were net sellers overall with an outflow of Rs 2.9 lakh crore due to selling in index options. Mutual funds also broke their two-month selling spree and became net buyers, with an inflow of Rs 412.3 crore.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Jan 2024
Market closes higher, Bandhan Bank's loans and advances rise 18.6% YoY in Q3
By Trendlyne Analysis

Nifty 50closed at 21,658.60 (141.3, 0.7%), BSE Sensexclosed at 71,889.05 (532.5, 0.8%) while the broader Nifty 500closed at 19,541.25 (174.1, 0.9%). Market breadth is overwhelmingly positive. Of the 2,036 stocks traded today, 1,345 were on the uptrend, and 655 went down.

Indian indices extended their gains from the afternoon session and closed in the green, with the benchmark Nifty 50closing at 21,659 points. The Indian volatility index, Nifty VIX, dropped 5.4% and closed at 13.3 points. Bandhan Bank's loans and advances rose 18.6% YoY to Rs 1,15,964 crore in Q3FY24. Its total deposits also increased by 14.8% YoY to Rs 1,17,422. The bank's CASA ratio stood at 36.1%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green following the benchmark index. Nifty Realty and Nifty Bank closed higher than their Wednesday’s close. According to Trendlyne's sector dashboard, realty was the top-performing sector of the day as it rose 6.2%. 

Major European indices traded in the green. US index futures traded higher, indicating a positive start to the trading session. The data released by Hamburg Commercial Bank indicated that the Eurozone’s composite PMI for December contracted to 47.6 against estimates of 47.

  • Money flow index (MFI) indicates that stocks like Gujarat Fluorochemicals, Shyam Metalics and Energy, Sun Pharma Advanced Research and MRF are in the overbought zone.

  • NBCC bags multiple orders worth Rs 98 crore from the Navodaya Vidyalaya Samiti for the construction of multiple Jawahar Navodaya Vidyalayas (JNV) buildings in Assam, Meghalaya and Tripura.

  • GMR Airports Infrastructure rises more than 3% in trade today. Reports suggest that 2.9 crore shares (0.5% equity), amounting to Rs 243.5 crore, change hands in a block deal.

  • Aptus Value Housing Finance, Timken India, RBL Bank, and Granules India witness an increase in mutual fund holdings in the past month.

  • NHPC rises to an all-time high of Rs 69.8 as it signs an MoU with Gujarat Power Corporation for a Rs 4,500 crore. It involves the construction of Kuppa Pumped Storage. The company appears in a screener of stocks with strong momentum.

  • United Spirits files a writ petition in the Bombay High Court against a Rs 365 crore claim from the Canteen Stores Department, Ministry of Defence. The claim is related to a previously concluded settlement, where the company asserts that all recovery claims by the customer were fully settled.

  • KR Choksey initiates coverage on Jio Financial Services with a ‘Buy’ rating and target price of Rs 290. The brokerage notes the company's benefits from the extensive customer bases of Reliance Jio and Reliance Retail. It expects the company to achieve an AUM of Rs 46 billion in FY24, driven by an improved product pipeline that aligns with consumer needs.

  • Balaji Amines surges more than 3% as the government of Maharashtra approves conferring the 'Mega Project' status to the company's expansion project for manufacturing speciality chemicals. Under the 'Mega Project' status of the package scheme of incentives, the company will receive an investment of Rs 750 crore.

  • FMCG stocks like Tata Consumer Products, Emami, Varun Beveragesand Dabur Indiarise more than 2% in trade. All constituents of the broader Nifty FMCGindex are also trading in the green, helping it to touch its all-time high of Rs 57,865.3.

  • Oil And Natural Gas Corprises to a 5-year high of Rs 214.3 as it reportedly wins seven out of the ten oil and gas exploration areas.

  • The Association of Mutual Funds in India (AMFI) upgrades Macrotech Developers, Polycab India, REC, and Union Bank of India, among others, to the largecap category. Kalyan Jewellers, SJVN, and Suzlon Energy, among others, have been moved to the midcap category. The updated market categorisation list for H1CY24 will be effective from February to July.

  • Central Bank of Indiais rising as its total deposits grow by 9.5% YoY to Rs 3.4 lakh crore in Q3FY24. Gross advances improve by 14.9% YoY to Rs 2.1 lakh crore in the same period. The bank appears in a screenerof stocks with improving return on equity (RoE) over the past two years.

  • Macrotech Developers surges more than 6% as it executes a share purchase agreement (SPA) to acquire a 100% stake in Goel Ganga Ventures for Rs 1 lakh.

  • Bajaj Finance rises by 4% as its AUM crosses Rs 3 lakh crore for the first time, posting a 35% YoY increase. Total loans booked also improve by 26% YoY to 9.8 million in the December quarter.

  • Anuj Kathuria, President (India) of JK Tyre & Industries, says the company is expanding faster than the overall industry. He adds that H2FY24 will be in line with projections, expecting high single-digit growth. Kathuria also expects margins to be around 15% going forward.

  • Ujjivan Small Finance Bankrises with a 29% YoY increase in deposits to Rs 29,869 crore in Q3FY24. The bank's disbursements improve by 17% YoY. It appears in a screenerof stocks nearing their 52-week high with significant volumes.

  • Realty stocks like Sobha, Godrej Properties, Macrotech Developers and DLF surge more than 5% in trade. All constituents of the broader Nifty Realty index are also trading in the green, helping it to reach its all-time high of Rs 832.7.

  • Angel One surges over 6% to an all-time high of Rs 3,750 as its average daily turnover (ADTO) grows by 156.2% YoY to Rs 42 lakh crore in December 2023. Its client base also improves by 55.5% YoY to 1.9 crore, with total order numbers rising by 59.2% YoY in the same month. The company appears in a screener of stocks with strong momentum.

  • Antony Cherukara, the CEO of VST Tillers Tractors, says sales in December have been lower than expected. He adds that the company’s exports have improved, compared to the industry's overall decline. Cherukara highlights a delay in launching VST's new brand Zector, and sets a sales guidance of 1,000 units for the first 12 months post its launch.

  • Bandhan Bank's loans and advances rise 18.6% YoY to Rs 1,15,964 crore in Q3FY24. Its total deposits also increase by 14.8% YoY to Rs 1,17,422. The bank's CASA ratio stands at 36.1%.

  • Dolly Khanna buys a 0.2% stake in Prakash Industries in Q3FY24. She now holds a 1.2% stake in the company.

  • Torrent Power surges 6% as it signs an MoU worth Rs 47,350 crore with the Department of Energy & Petrochemicals, Gujarat. The MoU, part of Gujarat government's investment promotion initiative, covers 3,450 MW of solar power, 1,045 MW of hybrid power, infrastructure for 7,000 MW of solar projects, and capex for its distribution network.

  • Power Finance Corp rises as it signs a memorandum of understanding (MoU) with the Gujarat government for projects worth Rs 25,000 crore. The company appears in a screener of stocks with improving quarterly revenue.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,097.10, 9.27%), Godrej Properties Ltd. (2,216.15, 7.98%) and Torrent Power Ltd. (1,014.60, 7.44%).

Downers:

Largecap and midcap losers today include Mankind Pharma Ltd. (2,074.05, -3.78%), Gland Pharma Ltd. (1,975.30, -2.75%) and Bharat Petroleum Corporation Ltd. (452.65, -1.82%).

Volume Rockets

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

Top high volume gainers on BSE included Sobha Ltd. (1,295.25, 15.70%), Century Textiles & Industries Ltd. (1,398.25, 12.21%) and DCM Shriram Ltd. (1,141.45, 9.93%).

Top high volume losers on BSE were Navin Fluorine International Ltd. (3,796.20, -1.85%) and Chambal Fertilisers & Chemicals Ltd. (386.65, -0.01%).

Torrent Power Ltd. (1,014.60, 7.44%) was trading at 17.8 times of weekly average. Brigade Enterprises Ltd. (922.90, 6.16%) and MMTC Ltd. (64.70, 8.56%) were trading with volumes 13.0 and 10.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

89 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (2,289.50, 2.54%), Ambuja Cements Ltd. (549.45, 2.49%) and Apollo Hospitals Enterprise Ltd. (5,762.20, -0.11%).

13 stocks climbed above their 200 day SMA including Borosil Renewables Ltd. (485.90, 4.27%) and Delhivery Ltd. (404.00, 1.76%). 4 stocks slipped below their 200 SMA including Vedant Fashions Ltd. (1,238.65, -1.73%) and APL Apollo Tubes Ltd. (1,450.85, -1.31%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Jan 2024

Markets are trading high. Nifty 50 was trading at 21659.65 (142.3, 0.7%) , BSE Sensex was trading at 71867.31 (510.7, 0.7%) while the broader Nifty 500 was trading at 19526.35 (0.82%).

Market breadth is surging up. Of the 2025 stocks traded today, 1419 were on the uptrend, and 582 went down.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (1026.90, 8.75%), Godrej Properties Ltd. (2219.55, 8.15%) and Macrotech Developers Ltd. (1067.70, 6.34%).

Downers:

Largecap and midcap losers today include Mankind Pharma Ltd. (2090.00, -3.04%), Vedant Fashions Ltd. (1236.50, -1.90%) and Bharat Petroleum Corporation Ltd. (453.20, -1.70%).

Volume Rockets

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

Top high volume gainers on BSE included Sobha Ltd. (1271.00, 13.53%), Torrent Power Ltd. (1026.90, 8.75%) and Godrej Properties Ltd. (2219.55, 8.15%).

Brigade Enterprises Ltd. (918.60, 5.67%) was trading at 11.0 times of weekly average. Amber Enterprises India Ltd. (3192.00, 2.57%) and MMTC Ltd. (64.25, 7.80%) were trading with volumes 6.2 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

71 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (2319.55, 3.88%), Apollo Hospitals Enterprise Ltd. (5766.85, -0.03%) and Aurobindo Pharma Ltd. (1118.50, 2.49%).

13 stocks climbed above their 200 day SMA including Borosil Renewables Ltd. (484.05, 3.87%) and Delhivery Ltd. (402.60, 1.41%). 4 stocks slipped below their 200 SMA including Vedant Fashions Ltd. (1236.50, -1.90%) and APL Apollo Tubes Ltd. (1449.10, -1.43%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Jan 2024
Market closes lower, Shyam Metalics and Energy opens its QIP for raising Rs 3,600 crore
By Trendlyne Analysis

Nifty 50 closed at 21,517.35 (-148.5, -0.7%), BSE Sensex closed at 71,356.60 (-535.9, -0.8%) while the broader Nifty 500 closed at 19,367.15 (-51.3, -0.3%), of the 2,036 stocks traded today, 1,104 showed gains, and 898 showed losses.

Indian indices extended their losses from the afternoon session and closed in the red, with the benchmark Nifty 50 index closing at 21,517.4 points. The Indian volatility index, Nifty VIX, fell 3.3% and closed at 14.1 points. Rail Vikas Nigam closed in the green after it signed a memorandum of understanding (MoU) with REC to finance projects undertaken by the construction & engineering company.

Nifty Smallcap 100 closed flat while the Nifty Midcap 100 closed higher, despite the benchmark index closing in the red. Nifty Media and Nifty Pharma closed higher than their Tuesday close. According to Trendlyne's sector dashboard, Utilities was the top-performing sector of the day as it rose 2.4%.

Major Asian indices closed in the red, except for China’s Shanghai Composite index, which closed marginally higher. Most European indices traded lower amid weak global cues. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures traded lower for a fifth consecutive trading session.

  • Relative strength index (RSI) indicates that stocks like Gujarat Fluorochemicals, Tata Consumer Products, Godrej Industries and MRF are in the overbought zone.

  • Strides Pharma Science rises 1.5% in trade and reaches a new 52-week high of Rs 696.3. The company ranks medium on Trendlyne’s Checklist, scoring 36.4%. It also features in a screener of companies with strong momentum.

  • Rail Tel Corporation hits a new 52-week high of Rs 364.9 after bagging an order worth Rs 35 crore from Rail Vidyut Nigam. The contract includes providing application support and data center hosting services.

  • Grasim Industries is falling as its joint venture (JV), AV Terrace Bay, in which it holds a 40% stake, pauses its pulp operations. The company says that the pulp mill will be put under a warm idle for an easy future restart. The mill produces 3.2 lakh air-dry metric tonnes of northern bleached softwood kraft (NBSK) paper-grade pulp.

  • Bajaj Auto rises to an all-time high of Rs 7,059.8 as its board will consider a share buy-back on January 8. The company appears in a screener of stocks with improving book value per share

  • Amrit Lal Meena, Secretary of the Ministry of Coal, reports a 23% YoY increase in India’s coal stock, reaching 94 MT in December. He highlights that Coal India has achieved 84% of its capex target by December. He also affirms that there will be sufficient supply of coal for the coming summer season.

  • Adani Total Gas signs an MoU with Shigan Quantum Technologies to decarbonize the supply chain and modify ICE engines to run on cleaner fuels like CNG.

  • ONGC rises amid reports that its subsidiary, ONGC Videsh, is in talks with Petroleos de Venezuela (PDVSA) to recover $600 million (approx. Rs 4,995.7 crore) in accrued dividends. This move comes after the easing of trade sanctions on Venezuela by the USA.

  • Rail Vikas Nigam surges more than 4% as it signs a memorandum of understanding (MoU) with REC to finance projects undertaken by the construction & engineering company. As per the MoU, REC will receive a part of the revenue/returns earned by RVNL for providing the finances.

  • Samvardhana Motherson International is falling as reports suggest that 63.5 lakh shares (0.1% equity), amounting to approximately Rs 39 crore, change hands.

  • PSU bank stocks like Bank of Maharashtra, Canara Bank, UCO Bankand Central Bankof India rise more than 2% in trade. All constituents of the broader Nifty PSU Bankindex are also trading in the green.

  • Glenmark Pharmaceuticals is rising as it launches Lirafit, the first bio-similar of the anti-diabetes drug Liraglutide. Priced at Rs 100 for a 1.2 mg dose, the drug improves glycemic control in type 2 diabetes patients with comorbidities like cardiovascular diseases.

  • Citi Research maintains a 'sell' rating on Avenue Supermarts with a target price of Rs 3,100. This implies a downside of 21.6% from its current market price. The brokerage points to a weakness in the company's third-quarter earnings due to revenue impacts from an inferior product mix and the addition of new stores in smaller towns.

  • SBI Securities predicts the Nifty 50 to reach around 23,500-24,300 in 2024. The brokerage has a positive outlook on Nifty IT, Metal and Pharma indices, as well as chemical, realty, railways, and PSU stocks.

  • GAIL (India) and TruAlt Bioenergy form a joint venture (JV) with 49% and 51% stakes, respectively. The JV will set up CBG plants worth over $72 million, funded through a combination of debt and equity.

  • Maruti Suzuki India declines as its total passenger vehicle wholesales in December decline by 3.7% YoY to 1,19,518 units. However, its total export sales rise by 23.3% YoY to 26,884 units over the same period.

  • SBI raises a $1 billion (approximately Rs 8,333 crores) syndicated loan, underwritten by HSBC Bank, with tenures of five and three years. The loan proceeds are earmarked for supporting long-term loan growth for liability management.

  • India’s manufacturing PMI falls to an 18-month low of 54.9 in December from 56 in November due to a softer increase in new orders and output. The PMI reading remains above 50 for the 30th consecutive month.

  • Tech stocks like MphasiS, Coforge, LTIMindtreeand Wiprofall more than 2% in trade. All constituents of the broader Nifty ITindex are also trading in the red, leading it to plunge more than 2%.

  • Sun Pharmaceuticals hits a 10-year high of Rs 1,304.6 after it acquires 100% ownership in Israel-based Libra Merger to consolidate business in Israel.

  • Bank of Maharashtra rises following its Q3FY24 business update. Its total deposits improve 17.9% YoY to Rs 2,45,738 crore, while gross advances increase 20.3% YoY to Rs 1,88,796 crore.

  • Suvankar Sen, MD and CEO of Senco Gold, reports a 20-25% revenue growth in Q3FY24 and maintains an 18-20% revenue growth guidance for FY24. He expects rising gold prices to impact demand. Sen adds that the company’s margins will improve in H2 and outlines plans to open 18-20 stores.

  • Gensol Engineering is rising as it bags an order worth Rs 138.7 crore from Sarda Energy & Minerals to establish a 33 MW solar power project. The project, which will be located in Chhattisgarh, aims to power Sarda Energy & Minerals' Khalora plant and is expected to be completed in the next six months.

  • Radhakishan Damani buys a 1.4% stake in VST Industries for approx Rs 75.6 crore in a bulk deal on Tuesday.

  • Adani Group stocks like Adani Enterprises, Adani Energy Solutions, Adani Total Gas and Adani Green Energy surges following reports that the Supreme Court will pronounce its judgement in the Adani Group-Hindenburg case on Wednesday.

  • Shyam Metalics and Energy rises as it opens a qualified institutional placement to raise Rs 3,600 crore. The company has set a floor price of Rs 597.6, indicating a discount of 7.1% to its current market price.

Riding High:

Largecap and midcap gainers today include Adani Energy Solutions Ltd. (1,183.20, 11.37%), Adani Total Gas Ltd. (1,099.30, 9.83%) and Biocon Ltd. (282.35, 6.07%).

Downers:

Largecap and midcap losers today include Avenue Supermarts Ltd. (3,932.35, -4.17%), 3M India Ltd. (34,236.75, -3.92%) and Hindalco Industries Ltd. (593.05, -3.88%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (387.25, 14.44%), Adani Energy Solutions Ltd. (1,183.20, 11.37%) and Sobha Ltd. (1119.50, 10.78%).

Top high volume losers on BSE were Kaynes Technology India Ltd. (2,555.95, -4.03%), VST Industries Ltd. (4,034.60, -0.63%) and Mahindra Lifespace Developers Ltd. (546.15, -0.10%).

FDC Ltd. (411.70, 3.29%) was trading at 34.7 times of weekly average. Vaibhav Global Ltd. (432.20, 6.23%) and Adani Wilmar Ltd. (380.95, 3.91%) were trading with volumes 27.0 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

58 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,094.25, 1.47%), Ajanta Pharma Ltd. (2,220.25, 1.39%) and Ambuja Cements Ltd. (536.10, 0.98%).

10 stocks climbed above their 200 day SMA including Borosil Renewables Ltd. (466.00, 7.97%) and Adani Wilmar Ltd. (380.95, 3.91%). 5 stocks slipped below their 200 SMA including GMM Pfaudler Ltd. (1557.55, -2.43%) and Data Patterns (India) Ltd. (1,855.95, -2.26%).