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The Baseline
06 Dec 2023
By Akshat Singh

Capital expenditures (capex) are vital for a company's growth and competitiveness as this spending is an investment into the future of the business, and a bet on upcoming growth. The capex growth forecasts tell us which companies are making the biggest bets on expansion and growth. Higher forecasts suggest aggressive growth strategies and financial health, and indicate the company's commitment to long-term development and market leadership. 

In this edition of Chart of the Week, we look at a screener of companies with high forecasted capex growth. The bubble chart circles represent the size of capex growth estimates. We look at the individual sectors poised for high capex growth in the coming year, and identify the biggest contributors. 

General industrial stocks lead in capex growth estimates, thanks to expansion plans

Hitachi Energy, Timken India, and Jindal Saw have the highest capex growth estimates in the general industrials sector in FY24

Seven of the 25 stocks in our chart belong to the general industrial sector. Hitachi Energy India leads with an estimated capex growth of 735.4% for FY24, thanks to plans to add 45 new data centres in three years to meet India’s booming market. These data centres are outsourced by companies to store, manage, and process extensive amounts of data and computing systems. Hitachi Energy’s solutions align perfectly with data centre needs. Projections indicate a sixfold increase in sector capacity over the next six years, driven by substantial investments (capex) of Rs 1.05 to 1.20 lakh crore. 

Moving on, Timken India has an estimated capex growth of 527.3% for FY24. Its diverse presence across capex-sensitive sectors like consumer durables, automobiles and chemicals sets a strong foundation for its future. The company plans to spend Rs 600 crore on a new roller bearings plant. Monarch Networth Capital anticipates Timken's significant capex to challenge competitors, leading to robust growth in railways, heavy mobility, and exports.

Another major player, Jindal Saw, is estimated to grow its capex by 462.8% in FY24. Close behind are RHI Magnesita and Praj Industries with capex growth of 284% and 283%, respectively. Praj Industries plans a total capex of Rs 120 crore in FY24, with Rs 100 crore set aside for Praj GenX in the Energy Transition & Climate Action (ETCA) sector. This funding aims to support advanced solutions for low-carbon fuel projects like Blue and Green Hydrogen/ammonia. Commercial production is expected to start from Q4FY24. Finally, we have CG Power and Industrial Solutions with an estimated capex growth of 222.5% in the coming year. 

Four IT sector firms projected to have high capex growth in FY24

In the software & services sector, Mphasis leads with an estimated capex growth of 567% in FY24. The acquisition of Silverline for Rs 1,100.7 crore will enhance its salesforce capabilities. Zensar Technologies follows with an 182.6% growth, and Cyient and Firstsource Solutions are estimated at 167% and 165.4% in FY24, respectively. 

Consumer durables and automotive stocks have greenfield projects scheduled

Three consumer durable firms have high capex spends planned in FY24

In the consumer durables sector, Finolex Cables stands out with the highest estimated capex growth of 736.2% in FY24. This is also the highest forecast in the Nifty 500. The company plans to invest Rs 400 crore over the next 12-18 months to expand capacities in communication, solar, automotive, and construction cables. It aims to increase optic fibre capacity from 8 to 10 million fibre km and double fibre draw capacity to 8 million km. 

Kaynes Technology India comes next with an estimated capex growth of 304.3%, while KEI Industries is projected to grow its capex by 298.7% in FY24. 

In the automobiles & auto components sector, Asahi India Glass is estimated to see a capex growth of 389.9% during FY24. Its Rs 1,400 crore capex will be mainly for maintenance and funding of a major greenfield project. An additional Rs 1,000 crore is planned for FY25, covering remaining expenses for the greenfield factory and expanding the automotive segment's capacity. Samvardhana Motherson International also has an estimated capex growth of 213.2% in FY24. 

Chemical and pharma stocks set high capex growth estimates

PI Industries from the chemicals sector has the highest estimated capex growth of 324% for FY24. In H1FY24, the company spent Rs 763 crore on capex, including a Rs 497 crore investment in Pharma assets. It aims for an overall capex of Rs 800 crore, including a Rs 300 crore spillover from FY23. This is to enhance capacity utilization and improve throughput. The company has also planned Rs 80-100 crore annually to upgrade its pharma facilities and improve technological capabilities. Deepak Nitrite follows with an estimated capex growth of 176.5% during the same period.

In the pharmaceutical sector, Gland Pharma tops with an estimate of 350.6% in capex growth, followed by Ipca Laboratories, which is expected to spend 165.6% more. Next, diversified consumer services have Cera Sanitaryware leading with 218.1%. The company increased its brownfield faucetware capacity from 3 to 4 lakh pieces per month, starting in September 2023. It has also finalized land acquisition in Gujarat for a new sanitaryware plant. A maintenance capex of Rs 35 crore is planned for FY24, with Rs 7 crore already spent. Max Healthcare Institute is projected to see a 207.3% capex growth in the current financial year.

Other notable stocks in our list are AMCNippon Life India Asset Management (347%), fertilizers major Chambal Fertilisers and Chemicals (278.4%) and FMCG player Emami (239.8%). 

Lastly, Century Plyboards is estimated to achieve a capex growth of 260.6% for FY24, with a planned capex of Rs 450 crore in FY25 for expansions. This includes a particle board expansion in Chennai to 2,40,000 cubic metres by the end of FY25 (capex Rs 550 crore). These strategic investments aim to strengthen Century's production capacities across particle board, plywood, laminates and fibre board segments.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Dec 2023
Market closes higher, Adani Green Energy completes a $1.4 billion follow-on funding
By Trendlyne Analysis

Nifty 50closed at 20,855.10 (168.3, 0.8%), BSE Sensexclosed at 69,296.14 (431.0, 0.6%) while the broader Nifty 500closed at 18,588.55 (140.1, 0.8%). Market breadth is in the red. Of the 1,991 stocks traded today, 868 were on the uptrend, and 1,085 went down.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50closing at an all-time high of 20,855. The volatility index, Nifty VIX, rose by 3.6% and closed at 13.5 points. Ambuja Cements acquired a 54.5% stake in Sanghi Industries for Rs 1,700 crore. The company will acquire the remaining 2.2% stake from the promoters of Sanghi Industries at the same valuation.

Nifty Smallcap 100 closed flat, while Nifty Midcap 100 closed higher following the benchmark index. Nifty Metal and Nifty Energy closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, commercial services & supplies emerged as the top-performing sector of the day, with a rise of over 9.8%. 

Most European indices trade in the green except for England’s FTSE 100 trading in the red. US indices futures trade lower indicating a negative start. The data released by Hamburg Commercial Bank indicated that the Eurozone’s composite PMI for November declined to 47.6 against estimates of contraction to 47.1

  • Money flow index (MFI) indicates that stocks like Trent, Anupam Rasayan India, Hindustan Aeronautics and Bharat Petroleum Corp are in the overbought zone.

  • Utilities, commercial services & supplies and transportation sectors rise by more than 17.5% over the past month.

  • Rallis India surges over 9%, reaching 37% above its 52-week low. It has a high Trendlyne durability score of 70. However, it is trading in the 'Sell' zone. It appears in a screener of stocks with rising net cash flow and cash from operating activities.

  • According to Morgan Stanley, the RBI’s monetary policy committee (MPC) will keep interest rates unchanged in FY24, with a rate cut cycle expected to start from June 2024. It also foresees an upward revision of India’s FY24 GDP growth forecast from 6.5%, as the Q2 GDP surpassed estimates.

  • Galaxy Surfactants, Oil India, Supreme Industries, Poly Medicure and Granules India outperform their industries in terms of annual growth and capital returns.

  • Ambuja Cements is rising as it acquires 14 crore shares (54.5% stake) in Sanghi Industries at Rs 121.9 per share. It has revised the open offer price to Rs 121.9 from Rs 114.2 and plans to acquire the remaining 2.2% stake from the promoters of Sanghi Industries at the same price. This follows its August 3 announcement of acquiring a 56.7% stake in Sanghi Industries.

  • Brigade Enterprises rises as it plans to develop a luxury residential project in 4 acres for a gross development value of Rs 300 crore in Kurubarahalli, Mysore. The company appears in a screener of stocks with strong annual EPS growth.

  • Elara Capital reiterates its ‘Accumulate’ rating on Varun Beverages with an upgraded target price of Rs 1,180. The brokerage highlights key growth drivers like Gatorade production in the CSD (carbonated soft drink) setup, flexible production lines, and international expansion.

  • Energy stocks like Adani Energy Solutions, Adani Green Energy, Bharat Petroleum Cropand Indian Oil Corpare rising in trade. The broader Nifty Energyis also trading 2.4% up, helping it to touch its all-time high of Rs 31,156.4.

  • Adani Green Energyrises over 15% as it completes a $1.4 billion (approx. Rs 11,340 crore) follow-on funding through an international bank consortium. This funding is part of a $3 billion construction financing framework for building its renewable energy park in Gujarat.

  • Thomas Cook (India)'s promoter, Fairbridge Capital (Mauritius), sells an 8.5% stake in the company. It now holds a 63.8% stake.

  • According to S&P Global Ratings, India is poised to become the world’s third-largest economy by 2030. It also expects GDP growth to be around 7% in FY27.

  • BoB Capital Markets maintains its 'Buy' rating on Polycab Indiawith a target price of Rs 6,100. This implies an upside of 15.3%. The brokerage's optimism is based on the company's strong position in the wires & cables sector and swift growth in the fast-moving electronic goods and B2C segments. It expects the firm’s net profit to grow at a CAGR of 21.9% over FY23-25.

  • IT stocks like Coforge, L&T Technology Services, Persistent Systems, HCL Technologies and LTIMindtree are falling in trade. All the constituents of the broader sectoral index, Nifty IT, are trading in the red.

  • Indian Energy Exchange is falling despite its November volumes rising by 17.5% YoY to 9,136 million units and total electricity volume increasing by 13% YoY. The company shows up in a screener for stocks with high Trendlyne Momentum scores.

  • India’s Services PMI declines to 56.9 in November from 58.4 in October. However, the PMI readings have remained above 50 for 28 consecutive months, indicating an expansion in activity.

  • Utilities stocks like Adani Green Energy, Adani Energy Solutions, Inox Green Energy Services and Adani Power surge more than 6% in trade. The broader BSE Utilities index is also trading over 3% higher.

  • Mahindra & Mahindra Financial Services' total disbursements grow by 16% YoY to Rs 5,300 crore in November, boosting its business assets by 17% YoY. However, the NBFC's collection efficiency has fallen by 200 bps YoY to 94%.

  • Gulshan Polyols surges more than 4% as it bags an order worth Rs 571.5 crore to supply 89,404 kilo litres of ethanol to Bharat Petroleum Corp, Indian Oil Corp and Hindustan Petroleum Corp.

  • Reports suggest that 1.8 crore shares (10.9% equity) of Shriram Properties, amounting to Rs 214 crore, change hands in a large trade.

  • Great Terrain Investment sells a 19.9% stake in Computer Age Management Services for approx Rs 2,700 crore in a bulk deal on Monday.

  • JSW Infrastructurerises as its subsidiary, JSW Dharamtar Port, enters into a share purchase agreement to acquire a 50% stake in PNP Maritime Services for Rs 270 crore. The company appears in a screener of stocks with improving RoCE.

  • Hindustan Constructionsurges more than 4% as its Swiss subsidiary, Steiner AG, signs an agreement to sell its entire stake in Steiner Construction SA to Demathieu Bard for Rs 928 crore.

  • HCL Technologiesis rising as its UK subsidiary, HCL Investments UK, signs a memorandum of understanding (MoU) worth $170 million (approx. Rs 1,417.7 crore) with State Street International Holdings. This MoU is for the sale of HCL UK's 49% stake in a joint venture with State Street International Holdings.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,348.50, 20.00%), Adani Energy Solutions Ltd. (1,084.40, 20.00%) and Adani Total Gas Ltd. (877.85, 19.88%).

Downers:

Largecap and midcap losers today include ICICI Prudential Life Insurance Company Ltd. (544.40, -3.36%), Mahindra & Mahindra Financial Services Ltd. (270.10, -2.74%) and JSW Energy Ltd. (415.20, -2.19%).

Volume Shockers

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

Top high volume gainers on BSE included Adani Energy Solutions Ltd. (1,084.40, 20.00%), Adani Total Gas Ltd. (877.85, 19.88%) and Adani Enterprises Ltd. (2,959.35, 16.91%).

Top high volume losers on BSE were Mahindra & Mahindra Financial Services Ltd. (270.10, -2.74%), Sapphire Foods India Ltd. (1,421.70, -1.76%) and Page Industries Ltd. (36,848.45, -1.71%).

Rallis India Ltd. (255.30, 9.57%) was trading at 9.8 times of weekly average. JK Paper Ltd. (394.15, 6.83%) and JK Lakshmi Cement Ltd. (876.95, 6.22%) were trading with volumes 9.1 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

69 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,013.10, 15.30%), Adani Power Ltd. (538.15, 15.81%) and Apollo Hospitals Enterprise Ltd. (5,580.20, -0.75%).

8 stocks climbed above their 200 day SMA including Adani Total Gas Ltd. (877.85, 19.88%) and Rossari Biotech Ltd. (796.55, 3.23%). 1 stock slipped below their 200 SMA including HFCL Ltd. (66.85, -1.26%).

 
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The Baseline
04 Dec 2023
When CEOs are kicked out of their companies | Screener: CEO exits in 2023

Some CEOs and their boards fight like cats. And if the CEO is fired as a result, they rarely come out looking good.

Take Steve Jobs’ firing from Apple. Jobs was not just any CEO – he was one of the two Steves who cofounded Apple in 1976.  Alongside Steve Wozniak, he built Apple up from a garage, but was fired by the board in 1985. Eleven years later, he would be asked to return and rebuild the company.

Jobs later admitted that he deserved to be fired – “It was awful-tasting medicine, but the patient needed it”. He had the personality of sandpaper, and would often refer to his employees' work using four-letter words. The two Apple products he spearheaded before his firing, the Lisa and Macintosh, underperformed in the market, with the Lisa computer doing so badly that the company buried 2,700 of them in a garbage dump to get a tax break. The MacIntosh was slow as a snail: a stingy 128K of memory meant that you were in for a long wait just to save a file. 

OpenAI CEO Sam Altman’s firing earlier this month was a very different case. Here it was the board that looked unreasonable and bizarre, as it failed to give a clear reason for pushing Altman out. Soon enough, nearly all of OpenAI's employees threatened to resign, and on twitter Sam received hundreds of heart emojis from his former employees, a love-fest that ended with his triumphant return as CEO.

Sam Altman’s case may be the rarest of the rare, where a company board got rid of its CEO because he was being too ambitious, too aggressive, in pushing AI into new frontiers and courting investors. Usually, when CEOs are fired, the cause is very different. We take a look at the circumstances under which some US and Indian leaders were pushed out in recent years. 

In this week’s Analyticks:

In the hot seat: When CEOs are sent packing by their companies

Screener: CEO exits in 2023

In reality, CEOs are not easily fired

When fundamental disagreements over strategy and business rise up between boards and CEOs, they are hard to bridge. But in many of those cases, a CEO will just resign. A firing usually needs more reasons than that. A sample look at CEO firings across US and India, suggests that the bar to push a CEO out tends to be high.

In a few high-profile cases, like Cyrus Mistry at Tata Sons and Bob Chapek at Disney, the firing was a result of underperformance and disappointing results. Cyrus Mistry’s firing was in part, driven by his fumbling of an ongoing dispute between Tata and telecom company Docomo. Bob Chapek was fired from Disney after a disastrous October 2022 quarter, when the company blindsided investors by missing both its revenue and net profit estimates, and reported $1.5 billion in losses in its streaming division. 

Fraud is another major theme in CEO firings -- from the payments scandal at US company Groupon, to the exit of BharatPe's CEO Suhail Sameer, after serious fraud allegations against co-founder Ashneer Grover. Brightcom MD Suresh Reddy was similarly forced to exit the company this year in August when a government inquiry discovered siphoning of funds and roundtripping. 

Sexual assault has emerged as another factor over the past decade. Between 2014 and 2020, the #MeToo movement burst into public view, toppling several CEOs. Besides the infamous Harvey Weinstein scandal, sexual assault allegations also unravelled the careers of Dov Charney at American Apparel, Sean Rad at Tinder and Travis Kalanick at Uber. In India, Binny Bansal got pushed out of Flipkart after an assault allegation came to light. 

Altman, Jobs, Dorsey: When do fired CEOs return?

In some cases, the board and a fired CEO make up. Sam Altman returned to OpenAI within a week, in record time. Jack Dorsey was fired from Twitter by the board in 2008 due to underperformance, but returned in 2015. 

The most famous example of the returning CEO is probably Steve Jobs. Jobs returned to Apple eleven years after his firing, to turn a struggling company into a money-making powerhouse. A pattern emerges in all these cases of a fired CEO's triumphant return: all three were company founders. When businesses lost their way, they turned back to the original founder for guidance. And while Jobs oversaw a successful turnaround, in the case of Dorsey, Twitter continued its struggle to find a successful business model even after his return. 

Does a high-profile firing ruin a CEO’s career? In the war of words and press releases that follow a CEO's firing, the board rarely loses. Mistry tried to restore his reputation via a legal fight with Tata Sons, which he lost. Steve Jobs' star didn't rise again until he was back at Apple. 

Even in the case of OpenAI -- Sam Altman would have likely thrived at Microsoft, but he would have no longer been calling the shots. No matter how senior you are, leaving a company under a cloud means that a lot of opportunities go underwater.

Screener: Exits of top management in 2023

Suzlon Energy leads in one-year change% post its CEO’s exit

In this screener, we take a look at the one-year change and quarter change of companies that witnessed resignations from their Chief Executive Officers (CEOs) and Managing Directors (MDs) in 2023.

Stocks from the banking & finance, consumer durables, software & services, utilities and chemicals & petrochemicals sectors show up in the screener. Major stocks that appear in the screener are Suzlon Energy, Lloyds Metals & Energy, Praveg, RattanIndia Power, Orient Electric, Allcargo Logistics, GRM Overseas and Brightcom Group.

Suzlon Energy has risen the most, by 413.9% over the past year, despite its CEO, Ashwani Kumar resigning from his post on April 5. This move came after the company’s revenue fell by 9.3% YoY to Rs 1,464.2 crore in Q4FY23. Since his resignation, the company has witnessed strong growth in its net profit and revenue in Q1 and Q2FY24, owing to order wins.

On the other hand, Brightcom Group has fallen the most, by 54.2% over the previous year, amid its Managing Director, Suresh Kumar Reddy, resigning on August 8. This exit came after the Securities and Exchange Board of India (SEBI) barred Suresh Kumar Reddy and the Chief Financial Officer (CFO), Narayan Raju, from continuing in their positions. The board had found irregularities in the company’s preferential issue of shares and other suspicious activity. 

You can find more screeners here.

 
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The Baseline
04 Dec 2023
5 stocks to buy from analysts this week
By Suhas Reddy

1. Amara Raja Energy & Mobility:

ICICI Direct maintains a 'Buy' rating on this auto parts and equipment company with a target price of Rs 900, indicating an upside of 17.1%. Analyst Shashank Kanodia is positive about the company’s growth in the automotive and industrial battery space.

Kanodia believes that the company is a major player in steady-state lead-acid batteries, with 70% of its sales coming from the automobile sector and the rest from the industrial side. He notes its strong presence across OEM and aftermarket channels, and its leadership in the aftermarket space. According to the analyst, the company is increasing its focus on the new energy sector, in response to the global shift towards electric vehicles.

With the recent MoU with the Government of Telangana to establish a Li-Ion battery Giga factory, involving an investment of Rs 9,500 crore over the next 10 years, Kanodia sees promising long-term prospects for the company. He notes that the company's stock is currently trading at an inexpensive valuation, considering the steady growth in its base business and its increasing focus on the new energy domain.

2. Kaynes Technology India:

HDFC Securities initiates coverage on this electrical equipment manufacturer with a ‘Buy’ rating and a target price of Rs 2,850. This implies an upside of 14.9%. Analysts Naveen Trivedi, Paarth Gala and Riddhi Shah believe the company’s superior execution capabilities will enable it to become the biggest beneficiary of the improving market conditions in the electronics system design & manufacturing (ESDM) sector. They expect the ESDM sector in India to grow at a CAGR of 30% over FY22-27, driven by rising domestic demand and the Centre’s focus on import substitution. 

The analysts point out that Kaynes has outperformed its peers in revenue growth over the past three years. They expect the firm to continue this trend, given its presence in the business-to-business segment, focus on value-added products and scale of operations.

Trivedi, Gala and Shah are also optimistic about the company’s expansion into the semiconductor engineering segment with its outsourced semiconductor assembly and test (OSAT) plant in Telangana. They expect its revenue to grow at a CAGR of 42% over FY23-26.

3. Siemens:

BOB Capital upgrades its rating on this heavy electrical equipment manufacturer to a ‘Buy’, with a target price of Rs 4,400. This indicates an upside of 15.6%. The company’s revenue increased by 25.1% YoY in Q2FY24, while its profit fell 12.4% YoY. Analysts Vinod Chari, Arshia Khosla and Swati Jhunjhunwala say, “Siemens saw double-digit growth across segments during the quarter, with the mobility segment posting the highest increase of 61% YoY”.

The company’s management expects a 33% hike in public capital outlay for FY24 to Rs 10 lakh crore, including a rail expenditure of Rs 2.4 lakh crore and a production-linked incentive outlay of Rs 30,000 crore. This, they believe, will create a positive capex environment. The analysts believe that the company will continue its current trend as the plan to sell the low-voltage motors business for Rs 2,200 crore has been rejected by minority shareholders. They believe that Siemens' base business is strong and well-positioned to benefit from the capex cycle due to its diverse customer segments. 

4. State Bank of India:

Motilal Oswal reiterates its ‘Buy’ call on this bank with a target price of Rs 700. This indicates an upside of 17.7%. In Q2FY24, the bank’s profit increased 8% YoY to Rs 14,330 crore, while its profit grew 26.4% YoY. Analysts Nitin Aggarwal, Dixit Sankharva and Disha Singhal say, “State Bank’s robust performance has been helped by strong loan growth and lower provisions.”

In an interactive session with the bank’s Chairman, Dinesh Kumar Khara, the analysts say they gained insights into the bank’s capital adequacy and growth plans. Despite recent declines in NIMs, the management has guided for broadly stable margins (with a downside bias of 3-5 basis points), as the bank has measures in place to mitigate the rising cost of deposits. The analysts say, “The asset quality performance remains strong with consistent improvements in headline asset quality ratios, while the restructured book remains under control at 0.6%.” They estimate the bank to deliver RoA of 1.1% and RoE of 18.3% by FY25.

5. Raymond:

SBI Securities maintains its ‘Buy’ rating on this textile company with a target price of Rs 1,762, implying an upside of 11.3%. In Q2FY24, the firm’s reported revenues stood at Rs 2,321 crore, growing by 5% YoY, while the net profit increased by 150% YoY to Rs 1,514 crore. Analysts believe that despite subdued domestic demand and lower discretionary spending, the firm has managed to deliver a strong EBITDA of Rs 384 crore, an 8% YoY increase. This is mainly due to sustained demand in the real estate segment, where the firm is developing 100 acres with a potential revenue of Rs 20,000 crore.

According to the analysts, the firm has turned debt-free after the sale of its FMCG vertical to Godrej Consumer for Rs 2,825 crore this year. Additionally, the company has paid external debt of Rs 1,029 crore by issuing Non-Convertible Debentures in Q1FY24. The firm has added 46 new retail stores in Q2FY24 and plans to add over 200 more in the next 12 months. The analysts are optimistic about Raymond's marketing strategies in the textile segment and its personalised interactive bot, which improves the customer journey through WhatsApp-based interactions. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Dec 2023
Market closes higher, Eicher Motors' monthly wholesales grow by 13% YoY to 80,251 units in November
By Trendlyne Analysis

Nifty 50closed at 20,686.80 (418.9, 2.1%), BSE Sensexclosed at 68,865.12 (1,383.9, 2.1%) while the broader Nifty 500closed at 18,448.50 (333.2, 1.8%). Market breadth is in the green. Of the 2,024 stocks traded today, 1,257 were gainers and 712 were losers.

Nifty 50extended its gains from the afternoon session and closed at an all-time high of 20,686.8 points. The Indian volatility index, Nifty VIX, rose 4.9% and closed at 13 points. Eicher Motors hit its all-time high and closed 7.4% higher after its monthly wholesales increased by 13% YoY to 80,251 units due to a surge in sales of two-wheelers with engine capacity exceeding 350cc.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, taking cues from the benchmark index. Nifty Bank and Nifty Realty closed sharply above their Friday close. According to Trendlyne's sector dashboard, Commercial Services & Supplies was the top-performing sector of the day as it rose 4.1%.

Major Asian indices closed flat or lower, except for India’s BSE Sensexclosing in the green. European indices traded flat or higher amid mixed global cues. US index futures trade marginally lower, indicating a cautious start to the trading session. Brent crude oil futures extended their losses and traded in the red for third straight trading session.

  • Relative strength index (RSI) indicates that stocks like Trent, Power Finance Corp, Hindustan Aeronautics and TVS Motor and are in the overbought zone.

  • Sadhana Nitro Chem rises sharply as it plans to set up a 15-20 MW green hydrogen facility. The company's board has approved a Rs 50 crore rights issue for acquiring 126 acres of land.

  • Rail Vikas Nigam, KEI Industries, and Godawari Power & Ispat's stock prices increase 649.5%, 586.7% and 552% respectively over the past three years.

  • Gujarat State Fertilizer & Chemicals rises over 11.4% in trade and touches an all-time high of Rs 219.7 today. The company ranks high on Trendlyne’s Checklist, scoring 69.6%. It also features in a screener of stocks with improving book value per share.

  • Computer Age Management Services (CAMS) rises over 3% in trade, as 90 lakh shares (19% equity) change hands in a block deal, according to reports.

  • Zee Entertainment Enterprises plunges over 3% as Sprucegrove Investment Management sells 22.2 lakh shares (or 2.3% stake) in the company for an undisclosed amount in the open market.

  • PSU bank stocks like Central Bank of India, Union Bank of India, UCO Bank and Canara Bank surge more than 4% in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green, enabling it to trade more than 3% higher.

  • Axis Direct initiates coverage on Pitti Engineering with a ‘Buy’ rating and a target price of Rs 915, implying an upside of 31.1%. The brokerage is optimistic about the firm’s prospects on the back of increasing capacity, rising share of value-added products, and expanding global footprint. It expects the company’s net profit to grow at a CAGR of 37.7% over FY23-26.

  • State Bank of India (SBI) expects the RBI to maintain its pause stance in the upcoming MPC meeting. The RBI has kept the repo rate unchanged at 6.5% four consecutive times, following a cumulative increase of 250 bps from May 2022 to December 2022.

  • Mahindra & Mahindrais rising with a 15.6% YoY increase in total monthly wholesales to 1 lakh units in November. Its auto business sees a 21% rise in wholesales to 70,576 units, driven by a 32% YoY growth in domestic SUV wholesales. Its farm equipment segment’s wholesales also rise by 5.1% YoY. Veejay Nakra, President of the automotive division, says, “We continue our growth trend, backed by strong demand for our SUV portfolio.”

  • Eicher Motorsrises to an all-time high of Rs 4,045 as its monthly wholesales increase by 13% YoY to 80,251 units due to a surge in sales of two-wheelers with engine capacity exceeding 350cc. The company appears in a screenerof stocks with increasing revenue for the past four quarters.

  • GAIL (India)surges over 5% to touch its all-time high of Rs 143.9 per share as it files an arbitration claim worth $1.8 billion (approx. Rs 15,000 crore) against SEFE Marketing & Trading Singapore Pte. in the London Court of International Arbitration. The claim is regarding SEFE's failure to supply LNG cargo under a long-term contract.

  • Reports suggest that 58.2 lakh shares (0.1% equity) of Reliance Industries, amounting to around Rs 1,405.1 crore, change hands in a large trade.

  • Maruti Suzuki India is falling as its total monthly wholesales drop by 3.3% YoY in November to 1,47,763 units. The 21% decline in mini and compact passenger car wholesales (accounting for nearly 60% of total sales) offset the surge in utility vehicle wholesales.

  • Bigbloc Construction rises as its subsidiary, Bigbloc Building Elements, doubles its AAC block manufacturing capacity from 2.5 lakh to 5 lakh cubic meters. The project is expected to be completed in the next six months with a capex of Rs 30 crore.

  • BCL Industries rises as it bags an order worth Rs 561 crore to supply ethanol to oil marketing companies. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • Brigade Enterprises is rising as it launches a residential project in Bengaluru, spanning 14 acres and featuring 1,275 units, with a revenue potential of Rs 2,000 crore. The company shows up in a screener for stocks with RoA improving over the past two years.

  • Vivek Kumar Dewangan, Chairman & Managing Director of REC, projects the company's assets under management (AUM) to reach around Rs 5.1 lakh crore in FY24, with 30% anticipated from the renewable energy segment. He also highlights that REC targets opportunities in the renewable segment worth Rs 3 lakh crore.

  • Oil & gas stocks like Hindustan Petroleum Corp, GAIL (India), Indian Oil Corp and Adani Total Gas surge more than 4% in trade. All constituents of the broader BSE Oil & Gas index are also trading in the green, enabling it to trade more than 3% higher.

  • Kalpataru Projects Intl is rising as it bags multiple orders worth Rs 2,263 crore in the transmission & distribution, water and building & factories businesses from domestic and international clients. These orders take the company's order book for FY24 to Rs 14,441 crore.

  • Shree Digvijay Cement's Chief Executive Officer (CEO) and Managing Director (MD) KK Rajeev Nambiar resigns for personal reasons. His resignation is effective from December 15, 2023. Ramanujan Krishnakumar will take over as Additional Director and CEO & MD from December 16.

  • Macquarie notes the strong performance of two-wheelers during the festive season and a healthy 10% growth in passenger vehicle registrations. Tata Motors and TVS Motor are among the preferred picks in the sector.

  • Surya Roshni's Chief Executive Officer Tarun Baldua resigns, effective from November 30, 2023, to pursue his goals outside the organization.

  • Ashish Kacholiabuys a 0.9% stake in Brand Concepts for approx Rs 6.6 crore in a bulk deal on Friday.

  • Salasar Techno Engineeringsurges over 3% as it bags an engineering, procurement and construction (EPC) contract worth Rs 364 crore from Tamil Nadu Generation and Distribution Corp. The contract involves supplying a high-voltage distribution system, feeder segregation, and transmission lines, with completion expected within the next 36 months.

  • Tata Powersurges over 3% to its 52-week highof Rs 278 per share as it acquires Bikaner-III Neemrana-II Transmission for Rs 1,544 crore from Power Finance Corp. This SPV, set up by PFC Consulting (a subsidiary of Power Finance Corp), will evacuate 7.7 GW of renewable energy from the Bikaner Complex in Rajasthan. It is expected to be commissioned in 24 months.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,123.75, 9.47%), Hindustan Petroleum Corporation Ltd. (376.50, 8.96%) and Eicher Motors Ltd. (4,180.35, 7.43%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (255.90, -4.00%), Lupin Ltd. (1,260.55, -2.78%) and Solar Industries India Ltd. (6,033.10, -2.52%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gujarat State Fertilizer & Chemicals Ltd. (215.30, 11.15%), Central Bank of India (48.30, 9.03%) and Lloyds Metals & Energy Ltd. (570.00, 8.84%).

Top high volume losers on BSE were Whirlpool of India Ltd. (1,321.05, -6.71%), KNR Constructions Ltd. (269.85, -5.51%) and Glenmark Pharmaceuticals Ltd. (775.75, -2.13%).

360 One Wam Ltd. (602.55, 2.86%) was trading at 25.5 times of weekly average. G R Infraprojects Ltd. (1,074.50, 2.73%) and Swan Energy Ltd. (417.90, 0.64%) were trading with volumes 9.8 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

102 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Power Ltd. (464.70, 5.52%), Ajanta Pharma Ltd. (1,959.35, -0.19%) and Apollo Tyres Ltd. (449.95, 1.70%).

13 stocks climbed above their 200 day SMA including Hindustan Zinc Ltd. (317.90, 5.91%) and Adani Total Gas Ltd. (732.25, 4.39%). 2 stocks slipped below their 200 SMA including Whirlpool of India Ltd. (1,321.05, -6.71%) and Akzo Nobel India Ltd. (2,480.05, -0.06%).

 
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The Baseline
01 Dec 2023
Five Interesting Stocks Today

1. Aster DM Healthcare:

This healthcare facilities company rose 18.9% and touched its all-time high of Rs 424.4 per share on Wednesday after its board of directors approved the sale of its Gulf business, Aster DM Healthcare FZC, to Alpha GCC Holdings for $1 billion (approximately Rs 8,330.1 crore). 

Alpha GCC Holdings, a consortium of Fajr Capital and other members, will own a 65% stake, while the promoters will own the remaining 35% after the transaction. This deal means Aster DM will now focus solely on its  operations in India. The firm also plans to distribute the proceeds from the deal as a dividend to its shareholders. The company shows up in a screener of stocks with prices above short, medium and long-term moving averages. 

The divestment of the Gulf business aims to create a separate operational entity for India, enabling independent operations and a separate board structure. Despite contributing nearly 75% of consolidated revenue, the Gulf business’ lower margins and higher capital requirements had depressed the valuation. After the divestment, the company’s net profit growth jumped to 146% YoY compared to a 19% YoY fall seen pre-segregation in FY23. Its EBITDA margin also jumped by 200 bps to 15%. 

Speaking on the divestment, the company’s founder, Azad Moopen, said, “Profitability of the Gulf business was lower because the GCC region is hyper-competitive for a smaller population, compared to the relatively underserved Indian market. The GCC sale will unlock the Indian entity’s potential for growth, which should see this business continue to grow at over 25-30%.”

2. Tata Power Company

This electric utilities company has risen around 5.8% in the past week and touched a new 52-week high today. This comes after it announced its plans to invest a capex of Rs 60,000 crore by FY27, during the analyst meet on Tuesday. Around 45% of this capex will be used for expanding its renewable energy segment. The company will invest around Rs 15,000 crore in FY24 and Rs 20,000 crore in FY25. In addition, the company’s arm, Tata Power Renewable Energy, has received a letter of award (LoA) to develop a 200 MW firm and dispatchable renewable energy (FDRE) project with SJVN. 

Over the past month, the company’s share price has risen by 15.4%. In Q2FY24, Tata Power’s net profit rose 6.9% YoY to Rs 875.5 crore, due to lower fuel expenses. Its operating margins improved by 7.1 percentage points YoY on increased transmission and distribution (T&D) activities and lower costs for coal and solar cells. The electric utilities major plans to double its revenue and profits in the next four years, on the back of these new investments. 

Sharekhan is optimistic about the company’s shift towards clean energy and believes that growth will be largely driven by the distribution and renewable energy segments. It expects PAT to see a CAGR of 11% over FY23-FY26E. The brokerage maintains its ‘Buy’ rating on Tata Power with a target price of Rs 285. 

During the Q2 earnings call, Praveer Sinha, the Managing Director and CEO, highlighted the company’s focus on clean energy. He said, “We have set an ambitious target that by 2030, 70% of our installed capacity will be clean energy.” Currently, its clean energy portfolio stands at 5,500 MW which is nearly 38% of its installed capacity.

3. Bharat Heavy Electricals:

This heavy electrical equipment manufacturer hit its 52-week high of Rs 176.5 on Thursday. Over the past week, it rose by 19.4%, driven by a positive business outlook. It bagged a contract worth Rs 2,956 crore on Wednesday from the Ministry of Defense for supplying 16 advanced guns to the Indian Navy. Additionally, Bharat Heavy Electricals has signed a memorandum with a French state-owned company to explore opportunities in the Jaitapur nuclear power plant project in Maharashtra.

The company holds a 70% market share in power equipment manufacturing in India. It is now looking to diversify its revenue sources by foraying into new segments like railways (Vande Bharat train sets), pumped-hydro storage facilities, and other defence equipment. The stock also appears in a screener of companies efficiently managing their assets to generate profits. According to Trendlyne’s Forecaster, its annual net profit is expected to rise by 13.8% YoY to Rs 509.4 crore in FY24. 

Over the past year, the stock has risen by 103.7%, particularly gaining momentum since mid-2022. The street is optimistic about the company’s prospects due to increasing demand for coal-based power and the Centre’s focus on infrastructure development. Given the firm’s presence across segments, its order book has seen robust growth. 

The pick-up in new orders is likely to accelerate due to the increasing domestic demand for power. Given the firm's massive market share, it is expected to get a big share of the orders, from the ongoing capacity expansion plans in India. ICICI Securities maintains its ‘Buy’ call on the stock. According to analysts, a decrease in raw material prices and improved working capital management can boost the company’s margins. 

4. Central Depository Services (India): 

This investment companies firm rose 4.2% on November 23 following the announcement of it becoming the first listed depository to cross 10 crore active demat accounts. The number of active demat accounts grew by 31.8% YoY to 9.6 crore in Q2FY24. According to Trendlyne’s Technicals, the stock rose by 5.9% in the past week, mainly due to the IPO season, especially the Tata Technologies IPO. 

In Q2FY24, the company’s revenue improved by 39.2% YoY. This increase was due to a significant rise in transaction revenue, IPOs/corporate actions, KYC processing, and strong seasonal earnings from e-voting. The company’s EBITDA margins marginally improved by 6 bps YoY to 62.4% due to lower finance expenses, which were offset by higher technology and employee expenses. The company appears in a screener of stocks with growing net profit and margins.

The depository’s demat accounts have grown by 8.3% in the current quarter, the highest in seven quarters. Central Depository Services maintains a dominant market share of 74%, with an incremental share of 89%. Additionally, it generates steady revenues from charges imposed on annuity issuers, which are not linked to market fluctuations. The income generated from the annuity division provides revenue visibility.

HDFC Securities says the mandatory demat requirement for non-small private limited companies presents significant growth prospects. The Ministry of Corporate Affairs has set a compliance deadline of September 2024 for about 1.4 million private limited companies. Despite increased technology investments and growing regulatory and labour expenses, the company’s  EBITDA margins are expected to remain within the 60-62% range. The broker maintains a ‘Buy’ rating on the stock.

5. PCBL:

This chemicals manufacturer hit its all-time high of Rs 278 on Thursday and marked a 37% rise over the past month. The company acquired Aquapharm Chemicals for Rs 3,800 crore, allowing PCBL to foray into global specialty segments for water treatment chemicals and oil & gas chemicals. This is in line with the company’s vision to create a global specialty chemical business portfolio. 

PCBL has also formed a battery application joint venture (JV) with Kinaltek, where it holds a 51% stake and will invest $16 million. This diversification of the portfolio aims to reduce the company's reliance on the tyre industry, where it supplies carbon black. 

In Q2FY24, PCBL’s consolidated net profit grew by 5.4% YoY to Rs 122.6 crore, despite an 8.7% YoY fall in revenue. It beat Trendlyne Forecaster’s net profit estimate by 4.7%, while revenue was in line with estimates. Gross margin expanded by 6.8 percentage points YoY despite lower realisation and volumes. This was due to reduced raw material costs. The company also features in screener for stocks with improving ROCE over the past two years. 

PCBL has also benefited from the commissioning of its carbon black facility in Chennai, which added 9 ktpa (kilo tonnes per annum) to sales and achieved 50% utilisation. Utilisation rates are expected to reach 80% in 3-4 quarters. The management expects to add 80-100 ktpa of carbon black capacity per annum to meet strong domestic and international demand. Due to its expansion efforts, PCBL stands to benefit from the European ban on Russian carbon black (752 ktpa), effective July 2024. 

ICICI Securities maintains its ‘Buy’ call on PCBL on the back of its entry into the conductive carbon black business. The brokerage believes that it will be an added growth driver and boost margin expansion.

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
01 Dec 2023
Market closes higher, TVS Motor Co's total wholesales in November rise 31% YoY
By Trendlyne Analysis

Nifty 50 closed at 20,267.90 (134.8, 0.7%) , BSE Sensex closed at 67,481.19 (492.8, 0.7%) while the broader Nifty 500 closed at 18,115.35 (127.4, 0.7%), of the 1992 stocks traded today, 1044 were gainers and 901 were losers.

Nifty 50 closed at an all-time high of 20,268 points after extending gains from the afternoon session. The broader indices reacted to Q2 GDP growth numbers released earlier today. India's GDP grew by 7.2% in Q2, against estimates of 6.8% growth. India's volatility index, Nifty VIX, dropped by 2.4% and closed at 12.7 points. Bajaj Auto’s total wholesales grew by 31% YoY to 4 lakh units in November. This growth is due to a 33% rise in two-wheeler sales and a 21% increase in commercial vehicle sales.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty FMCG and Nifty Realty closed higher than their Thursday’s close. According to Trendlyne's sector dashboard, forest materials was the top-performing sector of the day as it rose 2.9%.

Major European indices traded in the green. US indices futures trade higher indicating a positive start. The data released by Hamburg Commercial Bank indicated that the Eurozone’s manufacturing PMI in November declined to 44.2 against estimates of 43.8.

  • Dixon Technologies (India) sees a long buildup in its December 28 future series as its open interest rises 18.4% with a put-call ratio of 0.9.

  • TVS Motor Co is rising as its total monthly wholesales in November increase by 31% YoY to 3.6 lakh units, driven by robust domestic demand. Its total two-wheeler sales also improve by 34% YoY, while its domestic two-wheeler sales surge by 50% YoY. The stock shows up in a screener for companies with improving cash flows and high durability scores.

  • Nomura raises India’s FY24 GDP growth forecast by 80 bps to 6.7%, following Q2FY24 growth exceeding estimates. Citigroup and Barclays Plc have also raised their estimates.

  • JSW Energy appoints Sharad Mahendra as Joint Managing Director and Chief Executive Officer of the company, effective February 1, 2024. In the interim, he will assume the role of Whole-Time Director (Joint Managing Director & Chief Executive Officer - Designate), starting immediately.

  • Seamec rises as it signs a memorandum of understanding with Ships & Boats Oil Services to purchase Sea Pearl, a sea vessel, for $7 million (approx Rs 58.3 crore). The company appears in a screener of stocks with improving book value per share.

  • Defence stocks like CFF Fluid Control, NIBE, Hindustan Aeronautics and Bharat Dynamics surge more than 3% in trade as the government approves multiple acquisitions worth Rs 2.2 lakh crore. The broader defence industry is also trading 2.8% higher.

  • Zydus Lifesciences is rising as it receives final approval from the US FDA for its Ivabradine tablets,used for the treatment of heart failure. It has a market size of $136.5 million for the year ending October 2023, according to IQVIA.

  • BofA Securities upgrades its rating on Hero MotoCorp to ‘Buy’ from ‘Underperform’ and raises the target price to Rs 4,350. The brokerage notes the recovery in demand for two-wheelers and the company’s focus on growth under the leadership of the new CEO, Niranjan Gupta.

  • Motilal Oswal maintains its ‘Buy’ rating on State Bank of Indiawith a target price of Rs 700, implying an upside of 22.4%. The brokerage expects the bank’s loan growth momentum to continue and asset quality to remain robust. It estimates a CAGR of 15.5% in net profit over FY23-26.

  • PSU Banks like Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank and Indian Bankare rising in trade. All the constituents of the broader sectoral index, Nifty PSU Bank, are trading in the green.

  • Foreign institutional investors invest Rs 8,622.6 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Index options witness the highest outflow of Rs 15,467.5 crore from foreign investors. Meanwhile, mutual funds invest Rs 486 crore in the equity market over the same period.

  • NTPCsurges following reports that India's Ministry of Mines is seeking access to additional lithium reserves and mines in Australia, collaborating with Coal India, NTPC, and other entities. Additionally, K Shanmugha Sundaram has been appointed as Executive Director of the company, effective from today.

  • India’s manufacturing PMI rises to 56 in November, compared to 55.5 in October, due to growth in new orders and output. The PMI reading remains above 50 for the 29th consecutive month.

  • Bharti Airtel trades flat as Bharti Telecom acquires a 1.4% stake in the company for Rs 8,301.7 crore through a block deal. The company appears in a screener of stocks with zero promoter pledges.

  • Power Finance Corp surges over 8% to touch its all-time high of Rs 368.3, as its subsidiary, PFC Consulting, is nominated as the bid process coordinator (BPC). The BPC will select a developer through tariff-based competitive bidding for Independent Transmission Projects (ITPs) by the Ministry of Power.

  • Media stocks like TV18 Broadcast, Network18 Media & Investment, Zee Entertainment Enterprises and PVR Inox rise more than 2% in trade. The broader Nifty Media also trades 2.8% higher.

  • Centre slashes the windfall tax on locally produced crude oil to Rs 5,000 per tonne from Rs 6,300 earlier, say reports. It also lowers the tax on aviation turbine fuel (ATF) to Rs 1.06 lakh per kilo litre (kL) from the earlier Rs 1.11 lakh/kL.

  • Bajaj Auto is falling despite a 31% YoY increase in total wholesales to 4 lakh units in November. This growth is due to a 33% rise in two-wheeler sales and a 21% increase in commercial vehicle sales, helped by a surge in domestic demand.

  • Flair Writing Industries’ shares debut on the bourses at a 64.8% premium to the issue price of Rs 304. The Rs 593 crore IPO has received bids for 46.7 times the total shares on offer.

  • Larsen & Toubro is rising as it incorporates a new wholly owned subsidiary, L&T Semiconductor Technologies, focusing on fabless semiconductor chip design and product ownership. The stock shows up in a screener for companies with high TTM EPS growth.

  • India's GDP growth stands at 7.6% in Q2FY24, surpassing the RBI's estimate of 6.5%, driven by robust growth in the manufacturing and construction sectors.

  • ITD Cementation rises to an all-time high of Rs 304.8 as it bags an order worth Rs 1,001 crore for civil and hydro-mechanical works of a 500 MW hydel power plant in Andhra Pradesh. The company appears in a screener of stocks with growing net profit and margins.

  • Hindustan Aeronautics rises to an all-time high of Rs 2,500 as the Defence Acquisition Council approves the procurement of 156 light combat helicopters and 97 Mk1A aircraft, totalling Rs 1.1 lakh crore. The company appears in a screener of stocks with improving annual net profits for the past two years.

  • Profusion Investment Advisors sell a 2.6% stake in Timken India for approx Rs 560.9 crore in a bulk deal on Thursday.

  • Kesoram Industries rises to an all-time high of Rs 146.4 as it announces its merger with UltraTech Cement for Rs 5,379 crore. UltraTech will issue one equity share for every 52 shares of Kesoram, resulting in around 59.7 lakh UltraTech Cement shares issued to Kesoram's shareholders. The company appears in a screener of stocks with strong momentum.

Riding High:

Largecap and midcap gainers today include Power Finance Corporation Ltd. (365.15, 9.03%), Dixon Technologies (India) Ltd. (5,951.65, 8.00%) and REC Ltd. (374.00, 7.26%).

Downers:

Largecap and midcap losers today include General Insurance Corporation of India (306.90, -3.96%), Ashok Leyland Ltd. (176.30, -3.74%) and Star Health and Allied Insurance Company Ltd. (560.40, -3.04%).

Volume Rockets

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

Top high volume gainers on BSE included TV18 Broadcast Ltd. (48.00, 11.37%), Amara Raja Energy & Mobility Ltd. (769.20, 8.33%) and Dixon Technologies (India) Ltd. (5,951.65, 8.00%).

Top high volume losers on BSE were Whirlpool of India Ltd. (1,416.00, -9.88%) and Chalet Hotels Ltd. (584.60, -0.87%).

Ceat Ltd. (2,171.90, 3.43%) was trading at 10.8 times of weekly average. Rossari Biotech Ltd. (759.45, 5.14%) and Century Plyboards (India) Ltd. (677.05, 4.99%) were trading with volumes 10.0 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

85 stocks made 52 week highs,

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,963.00, -0.67%), Amara Raja Energy & Mobility Ltd. (769.20, 8.33%) and Apollo Hospitals Enterprise Ltd. (5591.15, 1.12%).

11 stocks climbed above their 200 day SMA including Clean Science & Technology Ltd. (1,444.85, 5.95%) and Rossari Biotech Ltd. (759.45, 5.14%). 2 stocks slipped below their 200 SMA including Whirlpool of India Ltd. (1,416.00, -9.88%) and Adani Total Gas Ltd. (701.45, -1.04%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Nov 2023
Market closes higher, Metro Brands enters into a trademark agreement with Foot Locker
By Trendlyne Analysis

Nifty 50 closed at 20,133.15 (36.6, 0.2%), BSE Sensex closed at 66,988.44 (86.5, 0.1%) while the broader Nifty 500 closed at 17,987.95 (83.9, 0.5%), of the 1,990 stocks traded today, 962 were gainers and 987 were losers.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 20,133.2 points. The Indian volatility index, Nifty VIX, dropped marginally and closed at 12.7 points. Metro Brands closed 3.4% higher after it entered into a strategic long-term trademark agreement with the New York-based sports shoe retailer, Foot Locker.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Pharma and Nifty Realty closed higher than their Wednesday close. According to Trendlyne's sector dashboard, Retailing was the top-performing sector of the day as it rose 2%.

Major European indices traded in the green, except for England’s FTSE 100 index, which traded in the red. Major Asian indices closed flat or higher amid mixed global cues. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures extended their gains from Wednesday and traded in the green for a third consecutive trading session.

  • Relative strength index (RSI) indicates that stocks like The New India Assurance, Bajaj Auto, Trent and Bharat Heavy Electricals are in the overbought zone.

  • NBCC (India) rises over 8% in trade and touches a new 52-week high today. The company ranks high on Trendlyne’s Checklist, scoring 59.1%. It also features in a screener of stocks with no debt.

  • Jammu & Kashmir Bank falls amid reported Enforcement Directorate raids at its Srinagar premises. These raids are linked to a Rs 250 crore money laundering case.

  • Delta Corp is rising as it expands into the realty sector through a joint venture with Peninsula Land, committing a capital outlay of Rs 250 crore and holding a majority stake. Peninsula Land also approves the issue of 1.5 crore equity shares and 77.3 lakh compulsorily convertible debentures to Delta Corp, as it will invest Rs 100 crore in the real estate firm.

  • Tata Coffee’s board approves the setting up of an additional freeze-dried coffee facility in Vietnam with a capacity of 5,500 metric tonnes. The company will invest Rs 450 crore in this facility, which will be operational in two years.

  • V-Mart Retail sees three analyst target price downgrades and one recommendation downgrade in the past month. Vedanta, Gujarat Gas and Axis Bank see two analyst target price downgrades over the same period.

  • Healthcare and pharmaceutical companies like Granules India, Alkem Laboratories, Divi’s Laboratories, Lupin and Glenmark Pharmaceuticals are rising in trade. All the constituents of the broader sectoral index, Nifty Healthcare, are trading in the green.

  • Dreamfolks Services rises as it partners with Russia's Grey Wall, offering its customers lounge access in Russia. The company appears in a screener of stocks with growing net profit and margins.

  • Reliance Industries’ retail arm, Reliance Brands, enters into a partnership with France-based SMCP (the parent company of brands like Maje and Sandro). According to the partnership, Reliance Brands will be the distributor of Sandro and Maje in India.

  • Aurobindo Pharmais rising as its subsidiary, Eugia Pharma Specialties, receives final approval from the US FDA to manufacture and market budesonide inhalation suspension, a generic equivalent of the reference listed drug (RLD), Pulmicort Respules. It is used for the treatment of asthma and has a market size of $226.4 million for the year ending September 2023, according to IQVIA.

  • BoB Capital Markets upgrades its rating on Siemensto ‘Buy’ from ‘Hold’ and raises the target price to Rs 4,400 from Rs 3,900. This implies an upside of 21%. The brokerage believes the company’s diverse segment presence makes it well-placed to benefit from the increase in public spending on infrastructure, pent-up private capex and the rising transition to green energy.

  • JSW Infrastructuretrades flat even as its subsidiary, Masad Infra Services, signs a concession agreement with the Government of Karnataka to develop a deep water greenfield port in Keni. The company has also become the guarantor for its unit JSW Terminal UAE's loan of $126 million with Axis Trustee Services.

  • Petronet LNG is rising as 68.5 lakh shares (0.5% equity), amounting to Rs 137.5 crore, change hands in a large trade, according to reports.

  • Thomas Cook plunges almost 5% as its promoter, Fairbridge Capital, plans to sell 3.2 crore shares (a 6.8% stake) of the company through an offer for sale. The board has approved a floor price of Rs 125 per share.

  • Karur Vysya Bank rises with RBI's approval for SBI Mutual Fund to acquire an aggregate holding of up to 9.99% in the bank. It appears in a screener of stocks nearing their 52-week high with significant volumes.

  • Metro Brands is rising as it enters into a strategic long-term trademark agreement with the New York-based sports shoe retailer, Foot Locker. This agreement grants Metro Brands exclusive rights to own and operate Foot Locker’s retail stores in India. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Rakesh Jhunjhunwala's Rare Enterprises clarifies that it has no connection with the deal in HIM Teknoforge, according to reports. The entity, Rare Enterprise, is not connected to Rare Enterprises or any other group firm of the Jhunjhunwala family.

  • Dharmakirti Joshi, Chief Economist at CRISIL, projects India’s GDP growth at 6.7% for Q2FY24, driven by the services sector. He expects the monsoon's impact to be noticeable in Q3 and notes an increase in trade exposure in recent months.

  • SBI Life Insurance appoints Amit Jhingran as the Managing Director and Chief Executive Officer of the company.

  • Fedbank Financial Services’ shares debut on the bourses at a 1.4% discount to the issue price of Rs 140. The Rs 1,092.3 crore IPO has received bids for 2.2 times the total shares on offer.

  • Gandhar Oil Refinery’s shares debut on the bourses at a 76.3% premium to the issue price of Rs 500. The Rs 500.7 crore IPO has received bids for 64.1 times the total shares on offer.

  • Eicher Motors is rising as Jefferies reiterates its ‘Buy’ rating, with an upgraded target price of Rs 4,650. The brokerage believes that Royal Enfield will see minimal impact from recent launches by competitors. It also highlights the potential for re-rating as confidence in sustaining long-term market share grows.

  • Tata Technologies’ shares debut on the bourses at a 140% premium to the issue price of Rs 500. The Rs 3,042.5 crore IPO has received bids for 69.4 times the total shares on offer.

  • Jupiter Wagons' board of directors approves the qualified institutional placement (QIP) of equity shares worth Rs 700 crore. The board has set a floor price of Rs 331.3 per share.

  • Ultratech Cement nears its 52-week high as it acquires 0.5 MTPA cement grinding assets from Burnpur Cement for Rs 169.8 crore. This acquisition takes the company's total capacity to 133 MTPA.

  • PCBL rises to an all-time high of Rs 271.4 as it forms a joint venture with Kinaltek, with ownership stakes of 51% and 49% respectively. PCBL will initially invest $16 million (approx. Rs 133.3 crore) and plans further commitments totalling $28 million (approx. Rs 233.2 crore) in multiple tranches. This JV is aimed at expanding into the battery application market.

Riding High:

Largecap and midcap gainers today include Supreme Industries Ltd. (4,431.15, 7.52%), General Insurance Corporation of India (319.55, 4.96%) and GAIL (India) Ltd. (131.90, 4.77%).

Downers:

Largecap and midcap losers today include Indian Bank (396.90, -5.23%), Solar Industries India Ltd. (6,288.90, -3.79%) and Adani Total Gas Ltd. (708.80, -3.24%).

Volume Shockers

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

Top high volume gainers on BSE included NBCC (India) Ltd. (76.10, 8.71%), India Cements Ltd. (251.35, 7.85%) and Great Eastern Shipping Company Ltd. (875.55, 7.76%).

Top high volume losers on BSE were Aether Industries Ltd. (779.75, -5.99%), Indian Bank (396.90, -5.23%) and Solar Industries India Ltd. (6,288.90, -3.79%).

Alembic Pharmaceuticals Ltd. (745.80, 3.67%) was trading at 48.0 times of weekly average. APL Apollo Tubes Ltd. (1,687.65, 2.21%) and Metro Brands Ltd. (1,370.05, 3.17%) were trading with volumes 21.8 and 16.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

68 stocks made 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,976.15, 1.39%), Amara Raja Energy & Mobility Ltd. (710.05, 2.17%) and Axis Bank Ltd. (1,074.25, 1.33%).

Stock making new 52 weeks lows included - Aether Industries Ltd. (779.75, -5.99%).

6 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (371.95, 6.62%) and Archean Chemical Industries Ltd. (584.90, 3.77%). 5 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (146.20, -3.85%) and Adani Total Gas Ltd. (708.80, -3.24%).

 
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The Baseline
29 Nov 2023
COTW: Global index rebalances open the gates to foreign inflows into domestic markets
By Bhavani Eswar

Foreign capital is vital for emerging markets like India as it provides essential funds for companies, and helps boost shareholder value. The scale and timing of this foreign money are key for domestic investors. 

But while foreign investors can help the economy, they also bring market volatility, since such money is ‘easy come, easy go’, and affects inflation and local currency demand. 

Recent rebalancing in major global indices, like the MSCI and FTSE, creates opportunities for increased foreign inflows. This edition of Chart of the Week focuses on changes in the Morgan Stanley Capital International (MSCI) indices, a global index provider traded on the NYSE. 

India's increased weight in the MSCI Global Index could lead to inflows of up to $1.5 billion

MSCI's indices are critical benchmarks for global fund allocation, guiding investments in stock markets worldwide. These indices are closely monitored by global entities such as asset managers, hedge funds, banks, companies, and insurance firms. Foreign portfolio investors (FPIs) typically use MSCI indices to guide their allocation of passive funds and have already invested$14.64 billion in Indian equities this year.

Notable among the MSCI indices are the All Country World Index, Frontier Markets Index, and Emerging Markets (EM) Index (launched in 1988, India included in 1994). India's weight in MSCI indices is set to double to 16.3%, second only to China's 29.8%, in three years, after the latest rebalancing, which will take effect from November 30.

India’s benchmark indices have outperformed the EM index, yielding 4.7% returns in the year till October, compared to MSCI EM's -2.1% over the same period. Over 10 years, India's annualized returns stand at 8.3%, against MSCI EM's 1.1%.

Record number of Indian stocks in MSCI after latest rebalancing 

Indian stocks’ weightage in MSCI indices set to rise with nine additions

The MSCI EM index determines stock weights based on free-float market capitalization, which are shares that foreign investors can trade. Greater market capitalization means more weight and allocation from investors. Reliance Industries (with a weight of 1.34%), ICICI Bank (0.91%), and Infosys at (0.87%) are among the top 10 stocks in the MSCI EM index.

In its latest quarterly update, MSCI added nine Indian stocks to the index. Key entries include Tata Motors, Polycab India, Macrotech Developers, IndusInd Bank, and One 97 Communications, the parent company of Paytm. Following this, IndusInd Bank, Suzlon Energy, Persistent Systems, and APL Apollo Tubes are expected to get large investments of $290 million, $264 million, $258 million, and $227 million, respectively, according to Nuvama Research. This brings the total Indian stocks in the index to 131. Notably, no existing Indian stocks were removed to include these new ones.

The latest positive review by MSCI EM comes almost a month after foreign brokerage Morgan Stanley upgraded India to the status of ‘most preferred’ emerging market.

Recent changes in FTSE set to bring additional inflows into Indian equities

Recently, FTSE, another global index provider, implemented adjustments in its semiannual index review on September 18, 2023. It added stocks like Reliance Industries, Wipro, and Bajaj Finance to the India index and expects to attract $120 million from just these three stocks. However, Infosys and HCL Tech might see outflows of $35 million and $15 million, respectively, as reported by IIFL Research.

The addition or removal of a stock from an index can influence its share price. When a stock is added, demand may increase, leading to a possible price hike. If removed, it could face selling pressure, decreasing its price. These changes, therefore, can impact individual investors' portfolio values. 

The rise in inflows is expected to come from passive trackers like index-based exchange-traded funds (ETFs) and mutual funds, not necessarily from active fund managers. While this does not guarantee a rise in overall foreign funds, it boosts market sentiment.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
29 Nov 2023
Market closes higher, Havells India launches its brand Lloyd in the Middle East market
By Trendlyne Analysis

Nifty 50 closed at 20,096.60 (206.9, 1.0%) , BSE Sensex closed at 66,901.91 (727.7, 1.1%) while the broader Nifty 500 closed at 17,904.10 (162.3, 0.9%), of the 1,989 stocks traded today, 929 were in the positive territory and 1,021 were negative.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50 closing at 20,097. The volatility index, Nifty VIX, rose by 4.4% and closed at 12.7 points. Aurobindo Pharma receives US FDA approval to manufacture and market Darunavir Tablets used to treat human immunodeficiency virus infection. The product has an estimated market size of $275 million.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher following the benchmark index. Nifty Bank and Nifty Auto closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, automobile & auto components emerged as the top-performing sector of the day, with a rise of over 1.3%.

Most European indices trade in the green except for England’s FTSE 100 trading in the red. US indices futures trade higher indicating a positive start. The data released by Spain’s National Institute of Statistics indicated that Spain’s CPI inflation for November expanded by 3.2% YoY against estimates of 3.7% growth.

  • Money flow index (MFI) indicates that stocks like Trent, General Insurance Corp, Bajaj Auto and The New India Assurance are in the overbought zone.

  • Infosys gains as its arm, EdgeVerve Systems, bags an order from the Philippines' Bank of Commerce for its Infosys Finacle Suite, aimed at transforming the core banking system. This suite will replace the bank's existing systems. The company appears in a screener of stocks with improving RoA.

  • Torrent Power surges over 12% in trade and touches a new 52-week high today. The company ranks high on Trendlyne’s Checklist, scoring 78.3%. It also features in a screener of companies with zero promoter pledges.

  • Realty, utilities and general industrial sectors rise by more than 10% over the past month.

  • Bandhan Bank, Zensar Technologies, Suzlon Energy, and IDFC witness a decrease in mutual fund holdings in the past month.

  • Bharat Petroleum Corp gains as it declares an interim dividend of Rs 21 per equity share for FY24. The board fixes December 12, 2023, as record date.

  • Capacit'e Infraprojects wins an order worth Rs 101 crore from Tridhaatu Aranya Developers for the Aranya Phase-II project.

  • Antique Stock Broking initiates coverage on Yatra Online with a ‘Buy’ rating and target price of Rs 168. The brokerage believes that the company will benefit from the recovery in corporate travel. It also anticipates an improvement in gross bookings.

  • HDFC Securities initiates coverage on Kaynes Technology India with a ‘Buy’ rating and a target price of Rs 2,850. This implies an upside of 16.6%. The brokerage cites the company's superior execution skills and focus on value addition as key factors for capitalising on rising domestic electronics demand and the Centre's import substitution initiative. It expects the firm’s revenue to grow at a CAGR of 42% over FY23-26.

  • IT stocks like Wipro, Persistent Systems, MphasiSand LTIMindtreeare rising in trade. All constituents of the broader Nifty ITindex are also trading in the green.

  • Aether Industriesis falling as it notifies the exchanges of a fire incident that took place at its manufacturing plant in Surat, Gujarat. The company states that 25 people were injured in the incident, while no casualties were reported.

  • Bharat Heavy Electricals rises as it signs a memorandum of cooperation (MoC) with Electricite de France, a state-owned French company. This MoC will maximise local content in the Jaitapur nuclear power project, set to be established by NPCIL in India. Additionally, the company bags an order worth Rs 2,956 crore from the Ministry of Defence for 16 super rapid gun mount.

  • The total market capitalisation of all BSE-listed companies reaches $4 trillion ( approximately Rs 333 lakh crore), driven by positive sentiments in the Indian equity market.

  • Aurobindo Pharma receives US FDA approval to manufacture and market Darunavir Tablets indicated, used to treat human immunodeficiency virus infection. The product has an estimated market size of $274.8 million.

  • Tata Power is rising as its subsidiary, Tata Power Renewable Energy, receives a letter of award (LoA) to develop a 200 MW firm and dispatchable renewable energy (FDRE) project with SJVN. The project, expected to be completed within 24 months, will take the company's total renewable energy capacity to 8,314 MW.

  • RR Kabel falls amid reports of income tax department searches at its offices nationwide. The company appears in a screener of stocks with declining net profit and margins.

  • Reports suggest that 38.9 lakh shares (0.3% equity) of ICICI Prudential Life Insurance Co, amounting to Rs 214.9 crore, have changed hands in a large trade.

  • Auto stocks like Samvardhana Motherson International, Hero Motocorp, Mahindra & Mahindra and Bosch are rising in trade. All constituents of the broader Nifty Auto index are also trading in the green, helping it to touch its all-time high of 17,377.4.

  • Siemens is falling as its Q2FY24 net profit declines 12.4% YoY to Rs 571.3 crore due to higher raw material, inventory and project buyout costs. However, its revenue rises 24.7% YoY, led by healthy growth in the energy, smart infrastructure and mobility segments. The company has also announced an investment of Rs 416 crore to expand capacity in power transformers and vacuum interrupters.

  • Shares of Indian Renewable Energy Development (IREDA) debut on the bourses at a 56.2% premium to the issue price of Rs 32. The Rs 2,150.2 crore IPO has received bids for 38.8 times the total shares on offer.

  • Rajeev Samant, the Chief Executive Officer (CEO) of Sula Vineyards, reports minimal impact from unseasonal rains on wine grapes and expects a big harvest this year. He adds that table grapes have been affected by the rainfall. Samant also highlights that Q3 is a strong quarter seasonally.

  • Havells India launches its brand Lloyd in the Middle East market. It has partnered with TeknoDome, a distribution company in Dubai, for the desired coverage and reach.

  • Aster DM Healthcare rises to an all-time high of Rs 381.8, as its promoter-owned Alpha GCC is set to buy the current owner's (Moopen family) stake in Aster DM Healthcare FZC for $1 billion (approx. Rs 8,330.1 crore). Post the deal, Alpha GCC Holdings will be jointly owned by Aster India and Fajr Capital advisors in a 35:65 ratio.

  • Zomato is rising as reports suggest that Alipay Singapore, an arm of Alibaba Group, plans to sell its entire 3.4% stake (29.6 crore shares) for Rs 3,300 crore through block deals.

  • PCBL’s board approves the acquisition of a 100% stake in Aquapharm Chemicals, a specialty chemicals company, for Rs 3,800 crore. It believes this acquisition will help its entry into the global specialty chemical segments of water treatment chemicals and oil & gas chemicals. The stock shows up in a screener for companies with low debt.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (732.55, 13.71%), Torrent Power Ltd. (941.40, 11.53%) and Muthoot Finance Ltd. (1,415.85, 5.44%).

Downers:

Largecap and midcap losers today include Adani Power Ltd. (433.10, -2.94%), One97 Communications Ltd. (867.35, -2.40%) and Zee Entertainment Enterprises Ltd. (249.70, -2.38%).

Volume Rockets

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

Top high volume gainers on BSE included Aster DM Healthcare Ltd. (395.45, 18.88%), Adani Total Gas Ltd. (732.55, 13.71%) and Torrent Power Ltd. (941.40, 11.53%).

Top high volume losers on BSE were Aether Industries Ltd. (829.40, -8.41%), Linde India Ltd. (5,703.75, -2.71%) and Zee Entertainment Enterprises Ltd. (249.70, -2.38%).

Borosil Renewables Ltd. (441.05, 6.68%) was trading at 24.1 times of weekly average. Minda Corporation Ltd. (373.15, 10.99%) and Graphite India Ltd. (502.15, 5.83%) were trading with volumes 13.9 and 12.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

55 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Power Ltd. (433.10, -2.94%), Axis Bank Ltd. (1,060.15, 3.82%) and Bajaj Auto Ltd. (6,069.95, 1.20%).

9 stocks climbed above their 200 day SMA including Adani Total Gas Ltd. (732.55, 13.71%) and ICICI Bank Ltd. (939.60, 1.52%). 4 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (152.05, -3.31%) and Devyani International Ltd. (177.75, -0.86%).