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Market closes higher, Zydus Lifesciences receives approval from the USFDA for Cyclophosphamide Capsules
By Trendlyne Analysis

Nifty 50 closed at 21,182.70 (256.4, 1.2%), BSE Sensex closed at 70,514.20 (929.6, 1.3%) while the broader Nifty 500 closed at 18,973.85 (222.4, 1.2%), of the 1,981 stocks traded today, 1,006 were on the uptick, and 937 were down.

Indian indices extended their gains from the open and closed in the green, with the Nifty 50 closing at 21,1782.7 points. The Indian volatility index, Nifty VIX, rose 2.1% and closed at 12.3 points. HCL Technologies hit its all time high and closed 3.3% higher after the Department of Transport and Planning, Victoria, Australia, selected the company to automate its concession entitlement process.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty IT closed sharply higher than their Wednesday close. According to Trendlyne's sector dashboard, Realty was the top-performing sector of the day as it rose 3.1%.

Major Asian indices closed higher, except for Japan’s Nikkei 225 and China’s Shanghai SE Composite Index closing in the red. European indices traded in the green amid positive global cues. Brent crude oil futures traded in the green after rising 1.8% on a volatile day on Wednesday. US index futures traded in the green, indicating a positive start to the trading session.

  • Steel Authority of India (SAIL) sees a long buildup in its December 28 future series as its open interest rises 26.5% with a put-call ratio of 0.8.

  • Zydus Lifesciences receives final approval from the USFDA for its Cyclophosphamide Capsules USP, 25 mg and 50 mg, which is a chemotherapy medication. The capsule has a market size of approximately $6 million in the US for the year ending October 2023, according to IQVIA.

  • HCL Technologies rises to an all-time high of Rs 1,419.2 as the Department of Transport and Planning, Victoria, Australia, selects the company to automate its concession entitlement process. The company appears in a screener of stocks with growing profits and margins.

  • Shree Cement announces the commissioning of its Nawalgarh integrated production facility in Rajasthan. The plant, built with an investment of Rs 3,500 crore, can produce 3.5 million tonnes of cement annually.

  • Vikas Gupta, Managing Director (Operations) of PG Electroplast, expects the company’s revenue to reach Rs 2,800 crore in FY24, with the RAC (room air-conditioning) segment contributing 50%. He foresees Rs 250-300 crore from the TV business.

  • DOMS Industries' Rs 1,200 crore IPO gets bids for 11.1X the available 87.6 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 33.4X the available 15.9 lakh shares on offer.

  • India Shelter Finance Corp's Rs 1,200 crore IPO gets bids for 3X the available 1.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 3.8X the available 89.6 lakh shares on offer.

  • Inox India's Rs 1,459.3 crore IPO gets bids for 1.3X the available 1.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.8X the available 77.4 lakh shares on offer.

  • The Asian Development Bank (ADB) raises India’s FY24 GDP growth forecast by 40 bps to 6.7% from the earlier estimate of 6.3%. This revision follows stronger-than-expected Q2 GDP. While ADB anticipates slower agricultural growth in FY24, it predicts robust growth in the industrial sector to offset the impact.
  • The Orissa Minerals Development Co rises to an all-time high of Rs 8,344 as it receives pollution board consent for its Bagiaburu mine. The mine produces 3.6 lakh tonnes of iron ore each year.

  • Steel Authority of India rises to a new 52-week high of Rs 112.2 as 31 lakh shares reportedly change hands in a single block deal. The company appears in a screener of stocks with strong momentum.

  • Gokul Agro Resources rises sharply as it acquires a 25% stake in Indonesia's PT Riya Pasifik Nabati. With this acquisition, the company plans to expand its presence in the palm oil market of Indonesia. It appears in a screener of stocks with improving annual net profits for the past two years.

  • India’s WPI inflation stands at 0.3% in November, marking a positive turn after seven consecutive months of negative trends. This change is due to an increase in prices of food articles, minerals, machinery & equipment, computer and electronics & optical products.
  • Adani Green Energy rises by 5% as it incorporates two new step-down subsidiaries, Adani Renewable Energy Fifty Five and Adani Renewable Energy Fifty One, to generate and supply power through renewable energy sources.

  • Angel One rises as it appoints Hemen Bhatia as the Chief Executive Officer of its asset management business.

  • GMM Pfaudler rises as its promoter, Patel Family, acquires an additional 1% stake through an inter-se transfer at Rs 1,700 per share. The promoter's shareholding in the company now stands at 25.2%.

  • Jewellery retailer RBZ Jewellers sets its IPO price band at Rs 95-100 per share. The issue, valued at Rs 100 crore, is completely a fresh issue. The issue opens on December 19.

  • RBL Bank rises to an all-time high of Rs 285.5 as it acquires an 8.5% stake in Open Network for Digital Commerce (ONDC) for Rs 40 crore. With this investment, the bank plans to develop a public digital infrastructure for the commerce industry. The company appears in a screener of stocks with strong momentum.

  • Paras Defence and Space Technologies surges following its board's approval to establish a subsidiary, Mechtech Thermal, to develop advanced thermal solutions for space and defence industries.

  • PNC Infratech rises as it receives Rs 394.9 crore from the National Highways Authority of India as a one-time settlement towards disputes raised by its arm, PNC Kanpur Highways, under the Vivad Se Vishwas II scheme.

  • Shashank Srivastava, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki, says bookings have been positive for the company. He highlights that its current UV market share stands at 22-23%, with a medium-term target of 35%.
  • IT stocks like Mphasis, Coforge, Persistent Systems and LTIMindtree are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

  • Inox India raises Rs 437.8 crore from anchor investors ahead of its IPO by allotting around 66.3 lakh shares at Rs 660 each. Investors include Goldman Sachs, Nomura Trust, HSBC Global, Abu Dhabi Investment Authority, HDFC Mutual Fund, Canara Robeco Mutual Fund and ICICI Prudential Life.

  • BC Asia Investments sells a 0.8% stake in Axis Bank for approx Rs 2,802 crore in a bulk deal on Wednesday.

  • NBCC (India) rises as it bags an order worth Rs 1,500 crore from National Cooperative Development Corporation. The order involves the construction of 1,469 warehouses and other agri-infrastructure across the country. The company appears in a screener of stocks nearing 52-week high with significant volumes.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (92.65, 10.96%), Steel Authority of India (SAIL) Ltd. (110.95, 7.46%) and MphasiS Ltd. (2,601.00, 7.23%).

Downers:

Largecap and midcap losers today include Max Financial Services Ltd. (1,018.30, -3.65%), Vedant Fashions Ltd. (1,338.95, -2.71%) and Max Healthcare Institute Ltd. (704.35, -2.57%).

Volume Rockets

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

Top high volume gainers on BSE included Housing and Urban Development Corporation Ltd. (111.35, 11.74%), Indian Railway Finance Corporation Ltd. (92.65, 10.96%) and Steel Authority of India (SAIL) Ltd. (110.95, 7.46%).

Top high volume losers on BSE were Biocon Ltd. (248.05, -0.50%) and Grindwell Norton Ltd. (2,160.25, -0.36%).

Mastek Ltd. (2,576.00, 6.59%) was trading at 24.5 times of weekly average. Castrol India Ltd. (148.25, 7.00%) and V-Mart Retail Ltd. (1,802.00, 2.79%) were trading with volumes 12.3 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

87 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (1,074.70, 1.05%), Bajaj Auto Ltd. (6,334.85, 0.30%) and Bajaj Finserv Ltd. (1,730.95, 2.75%).

9 stocks climbed above their 200 day SMA including Mahindra & Mahindra Financial Services Ltd. (289.35, 6.50%) and Piramal Enterprises Ltd. (942.85, 3.23%). 1 stock slipped below their 200 SMA including Shoppers Stop Ltd. (705.90, -0.61%).

Market closes flat, Titagarh Rail Systems raises Rs 699 crore from qualified institutional buyers
By Trendlyne Analysis

Nifty 50 closed at 20,926.35 (20.0, 0.1%),  BSE Sensex closed at 69,584.60 (33.6, 0.1%) while the broader Nifty 500 closed at 18,751.45 (64.7, 0.4%), of the 1,983 stocks traded today, 1,108 showed gains, and 838 showed losses.

Indian indices recovered from the day’s low and closed flat with the Nifty 50 closing at 20,926. The volatility index, Nifty VIX, dropped by 5.1% and closed at 12.1 points. Laurus Labs received Form 483 from the US FDA with five observations for its Andhra Pradesh manufacturing plant.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher with the benchmark index closing flat. Nifty Realty and Nifty Pharma closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, transportation emerged as the top-performing sector of the day, with a rise of over 1.6%.

Most European indices trade in the green. US indices futures trade higher indicating a positive start. The data released by the UK’s Office for National Statistics indicated that Britain’s manufacturing production for October contracted by 1.1% MoM against an estimated 0% increase.

  • Money flow index (MFI) indicates that stocks like Power Finance Corp, Container Corp of India, Trent and Bharat Dynamics are in the overbought zone.
  • Aether Industries, Piramal Enterprises and Redington underperform their industry by more than 15% in the past month.

  • Fertilizers, forest materials, media and telecommunications equipment sectors rise more than 5% in the past week.

  • Titagarh Rail Systems trades marginally higher as it completes raising Rs 699 crore from qualified institutional buyers. The company has issued 75 lakh equity shares at Rs 933 per share.

  • Granules India falls despite receiving US FDA approval for its Pantoprazole Sodium Tablets, used to treat acid reflux. The company appears in a screener of stocks with declining net cash flow.

  • India’s Index of Industrial Production (IIP) grows to a 16-month high of 11.7% in October, up from 5.8% in September, led by robust growth in the manufacturing, mining and electricity sectors.
  • Mahindra & Mahindra acquires 58.6 lakh shares of Emergent Solren, an arm of Mahindra Holdings, for Rs 288 crore. After the transaction, Mahindra & Mahindra will hold a 60% stake in the company.

  • Allcargo Terminal falls as its monthly container freight station (CFS) volumes fall by 13% MoM to 47,100 twenty-foot equivalent units (TEUs). The company appears in a screener of stocks with declining net profit and margins.

  • India Shelter Finance Corp's Rs 1,200 crore IPO gets bids for 0.8X the available 1.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.2X the available 89.6 lakh shares on offer.

  • Amit Chadha, MD and CEO of L&T Technology Services, expects the company to deliver its revenue growth guidance of 17.5-18.5% in FY24. He adds that it is on track to achieve a 17% margin. Chadha notes that the multi-year engineering services partnership with London-based oil & gas company, BP, will contribute to FY24's revenue.
  • DOMS Industries' Rs 1,200 crore IPO gets bids for 3.4X the available 87.6 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 12.8X the available 15.9 lakh shares on offer.

  • Shalby is falling as its board of directors approves a new standby letter of credit (SBLC) facility for Rs 170 crore from ICICI Bank. The loan amount will be used to guarantee the scheduled principal and interest payments of its US subsidiary, Shalby Advanced Technologies.

  • Mankind Pharma rises as Kotak Funds India Midcap Fund buys 20.3 lakh shares at an average price of Rs 1,832.3, totalling to Rs 371.8 crore. Meanwhile, Beige, a subsidiary of Chrys Capital, sells 1.8 crore shares amounting to Rs 3,282 crore and HEMA CIPEF offloads 56.3 lakh shares for Rs 1,031.2 crore.

  • Muthoot Microfin sets its IPO price band at Rs 277-291 per share. The issue, valued at Rs 960 crore, comprises of a fresh issue of Rs 760 crore and an offer for sale of Rs 200 crore. The issue opens on December 18.
  • Ashok Leyland rose marginally after introducing two new hydrogen-based engines, designed to reduce the total cost of ownership for original equipment manufacturers.

  • HPL Electric & Power rises as it bags an order worth Rs 545 crore to supply smart meters. The company appears in a screener of stocks with growing quarterly net profit and margins.

  • DOMS Industries raises Rs 537.8 crore from anchor investors ahead of its IPO by allotting around 68.1 lakh shares at Rs 790 each. Investors include Goldman Sachs, Fidelity Funds, Ashoka Whiteoak Emerging Markets, Abu Dhabi Investment Authority, SBI Mutual Fund and Tata AIA Life Insurance.

  • V P Nandakumar, Managing Director of Manappuram Finance, projects a 7-8% growth in gold loans and around 20% in consolidated loans for FY24. He notes the current cost of funds at 8.5% and expects a 20bps increase.
  • Dow Jones includes UPL in its Sustainability World and Emerging Markets Indices due to its outstanding performance in the S&P Global 2023 Corporate Sustainability Assessment.

  • Shilpa Medicare rises as it receives approval from TGA Australia to manufacture, label, package and test medicinal Oral Mouth Dissolving Films. The company appears in a screener of stocks with increasing profits for the past two quarters.

  • Plutus Wealth Management buys a 0.9% stake in Zee Entertainment Enterprises in a bulk deal on Tuesday.

  • India’s CPI inflation rises to a three-month high of 5.5% in November from 4.9% in October due to higher food prices. Food inflation has increased to 8.7% from 6.6% in October.
  • SBI Mutual Fund buys 1.5% stake in Karur Vysya Bank for approx Rs 194.4 crore in a bulk deal on Tuesday.

  • Laurus Labs falls over 3% after receiving Form 483 from the US FDA with five observations. This comes after the FDA's inspection of the drug manufacturer's facility in Andhra Pradesh from December 4 to December 12.

  • Reliance Industries trades flat as it invests Rs 418 crore in five subsidiaries of Mercury Holdings, a joint venture between Brookfield Infrastructure and Digital Realty. Reliance Industries appears in a screener of stocks with low debt.

  • Indian Bankis rising as its board of directors approves to issue equity shares worth Rs 4,000 crore through a qualified institutional placement (QIP). The shares, with a face value of Rs 10 each, have been set at a floor price of Rs 414.4 per share.

Riding High:

Largecap and midcap gainers today include REC Ltd. (444.80, 8.97%), Power Finance Corporation Ltd. (421.80, 8.24%) and Bajaj Holdings & Investment Ltd. (8,233.10, 5.04%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (1,004.55, -9.84%), Adani Energy Solutions Ltd. (1,030.90, -5.35%) and Bank of India (112.15, -3.07%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tanla Platforms Ltd. (1,090.90, 17.92%), NLC India Ltd. (207.20, 9.69%) and REC Ltd. (444.80, 8.97%).

Top high volume losers on BSE were Sunteck Realty Ltd. (476.95, -4.50%), Bank of India (112.15, -3.07%) and PI Industries Ltd. (3,426.85, -1.64%).

Vaibhav Global Ltd. (404.15, 2.73%) was trading at 8.2 times of weekly average. Sheela Foam Ltd. (1219.15, 4.33%) and KPIT Technologies Ltd. (1,474.95, 2.95%) were trading with volumes 5.8 and 4.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

48 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (6,316.10, 0.99%), Bank of Baroda (221.05, 2.29%) and Bharat Electronics Ltd. (162.85, 1.27%).

9 stocks climbed above their 200 day SMA including VIP Industries Ltd. (653.15, 6.36%) and Biocon Ltd. (249.30, 4.46%). 3 stocks slipped below their 200 SMA including Devyani International Ltd. (182.45, -1.48%) and G R Infraprojects Ltd. (1,179.95, -1.21%).

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The Baseline
13 Dec 2023
By Bhavani Eswar

The Indian financial sector has been on the rise in the past two years, with high loan growth amid soaring domestic consumption. As a developing economy, the demand for credit growth in India is on a sustained rise. This has boosted the health of the banking sector, which has seen a turnaround in the past two years, thanks to healthy balance sheets and decade low gross non-performing assets (NPA) ratios. However, one aspect of high loan growth has worried the Reserve Bank of India (RBI) - unsecured loans significantly outpacing overall loan growth. 

In this edition of Chart of the Week, we analyze the RBI’s recent directive on unsecured loans,  the first major regulation since 2014-15 that is aimed at reducing risks in unsecured lending.

Bad loans can have spillover effects across economies. The unprecedented rise in India’s unsecured loans – loans which lack collateral – is a major risk. While credit growth in unsecured lending stood at 23% in the past year, the overall credit growth in the banking system was just 13%.

On November 16, the RBI directed banks to increase risk weights for unsecured consumer loans like personal loans (below Rs 50,000) and credit card receivables from 100% to 125%. This means that banks must now show Rs 125 in risk-weighted assets for every Rs 100 lent as an unsecured loan. This will prompt banks to increase the capital set aside for these loans. The RBI has set 9% as the minimum capital adequacy ratio to be maintained on total risk weighted assets. 

Risk weights for home loans, for example, range from 50% to 70% depending on the size of the loan. Meanwhile, it is 75% for gold loans. Segments with higher risk, like business loans, have 100% risk weightage.

Cost of funds likely to increase for top private and public sector banks 

High exposure to unsecured lending leads to a marginal decrease in capital ratios

An analysis of the RBI’s increased risk weights on capital requirements finds that banks with substantial exposure to unsecured loans will see an increase in capital requirements. Banks like SBI, ICICI Bank, HDFC Bank, and Axis Bank, which have allocated over 15% of their total lending to unsecured loans, may see their capital ratios decline. These four banks may see a decrease of more than 50 bps in their CET 1 (Core Equity Tier 1 (CET 1) is an important metric as it includes only equity and reserves, which form the core capital for banks).

On the other hand, banks like Bank of Baroda, IndusInd Bank, and Canara Bank, with less than 10% exposure towards unsecured loans, could see their capital ratios fall by just 30-40 bps. 

The new regulation will affect banks with higher exposure to unsecured loans in three ways. Firstly, banks have to maintain certain ratios like CET 1, which is calculated as a percentage of total risk weighted assets. Due to the increase in risk-weighted assets, banks now have to keep more capital while lending, which could result in higher lending rates. 

Secondly, due to an increase in capital requirements, banks may have to raise capital from bond markets at higher rates. Finally, this could moderate growth in consumer credit, which is traditionally a high-margin segment for banks.

Regulations that make changes in risk weights, provisions, exposure limits or loan-to-value ratios aim to manage risk at a broader level rather than focusing on individual institutions. RBI’s latest regulatory move is aimed at controlling risks in vulnerable segments without constraining credit to other sectors of the economy. 

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The Baseline
12 Dec 2023
5 stocks to buy from analysts this week
By Abhiraj Panchal

1. Sansera Engineering:

ICICI Direct maintains its 'Buy' rating on this auto parts and equipment company with a target price of Rs 1,100, indicating an upside of 19.7%. Analyst Shashank Kanodia views the company's robust order book, standing at Rs 1,930 crore, as a key growth driver and foresees double-digit growth in FY23-25. He expects this growth to be driven by the China+1 strategy and the vehicle light-weighting trend.

Kanodia points to the company's strong order inflow of Rs 600 crore in incremental orders during H1FY24, with 58% earmarked for exports to global markets. He believes that the company aims to reduce its reliance on ICE (Internal Combustion Engine) sales to 60% from the current 78%, de-risking its portfolio.

Since the post-COVID lows, the company's sales have seen a 17% CAGR over FY20-23, consistently outperforming the domestic automobile sector. Kanodia emphasizes Sansera’s strong order book, driven by export wins and enduring client relationships. With precision engineering capabilities and a new manufacturing plant focusing on aerospace and defence, Kanodia believes the company is well-positioned to surpass industry growth.

2. Bajaj Auto:

KRChoksey upgrades its rating on this vehicle manufacturer to ‘Buy’ from ‘Accumulate’ with a target price of Rs 7,093, indicating an upside of 13.4%. Analyst Unnati Jadhav says, “Domestic sales were on a very strong footing during this year’s festive season.” During September-November 2023, two-wheeler volumes grew by 26.6% YoY, while domestic commercial vehicle (CV) volumes increased by 44.2% YoY. According to Jadhav, exports remained under pressure YoY but have seen gradual sequential improvement. 

Jadhav adds that the unexpected uptick in demand for Triumph in the premium segment will contribute to volumes, and improve the mix as Bajaj Auto expands its capacity and distribution. She expects the strong growth trajectory in the CV segment to continue on the back of  CNG and electric vehicle penetration. She projects the company’s revenue, EBITDA and profit to grow at a CAGR of 15.9%, 19.3% and 16.4%, respectively, over FY24-26. 

3. One97 Communications:

Motilal Oswal maintains its ‘buy’ rating on this internet software and services company with a target price of Rs 1,025, implying an upside of 63.2%. Due to Paytm’s history of negative earnings, its durability score is low. But analysts Nitin Aggarwal, Disha Singhal and Dixit Sankharva believe that the increase in high-ticket personal and merchant loan disbursals and an expanding number of lending partners will support steady growth in the near term. The analysts have maintained their rating even as Paytm’s share price fell 19% on Monday. 

Due to asset quality concerns, the firm recently discontinued its postpaid product, Buy Now Pay Later (BNPL), which accounted for 56% of total disbursements. It has also shifted focus away from personal loans below Rs 50,000. As a result, the firm’s management expects a 25% reduction in its monthly total disbursement rate to Rs 4,500 crore, and a 50% decline in customer acquisition in Q3FY24 to 4,00,000.

However, the analysts believe the surge in high-ticket personal loan disbursals could offset the impact. Paytm’s management has insisted that the recent RBI decision to increase risk weight will not impact its growth, thanks to its robust network of partners.

4. Polycab India:

Bank of Baroda maintains its 'Buy' rating on this electrical equipment/products company, setting a target price of Rs 6,100. This indicates 8.2% upside. Analysts Vinod Chari, Arshia Khosla, and Swati Jhunjhunwala express optimism even as the company unveils a new brand logo, to emphasize its leadership in wires, cables, and fast-moving electrical goods.

Following a 33% YoY revenue growth in H1FY24, the analysts expect this momentum to continue into H2FY24, driven by favourable demand and market conditions. They foresee growth in the B2C business (currently at 33%), with improved margins. The planned capex of Rs 700 crore for an extra-high voltage cable facility aligns with its positive outlook.

Chari, Khosla, and Jhunjhunwala predict that Polycab will soon meet its 10% topline growth target, having already reached 9.3% in Q2FY24. They believe that the company’s efforts to improve its export potential and streamline operations will contribute to achieving its growth targets. 

5. Cyient:

Axis Direct maintains its ‘Buy’ call on this IT consulting and software company with a target price of Rs 2,195. This indicates an upside of 10.7%. The company’s management has highlighted its focus on consistent growth, projecting strong double-digit growth in FY25. They expect operating margins to improve with volume growth, cost optimization efforts, and better pricing. Analyst Omkar Tanksale believes that it has developed robust capabilities and domain expertise to improve client engagement and service portfolio.

Tanksale remains confident due to Cyient’s improved outlook on the vertical business and better collaborations with customers. The analyst believes that Boeing’s interest in partnering with large engineering services players specialising in aerospace bodes well for Cyient. He remains optimistic overall, citing “strong growth potential backed by robust deal wins and superior execution capabilities.”

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

(You can find all analyst picks here)

Market closes lower, Axis Direct maintains ‘Buy’ rating on Cyient
By Trendlyne Analysis

Nifty 50closed at 20,906.40 (-90.7, -0.4%), BSE Sensexclosed at 69,551.03 (-377.5, -0.5%) while the broader Nifty 500closed at 18,686.80 (-83.4, -0.4%). Market breadth is in the red. Of the 1,992 stocks traded today, 738 were gainers and 1,217 were losers.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50closing at 20,906. The volatility index, Nifty VIX, dropped by 0.4% and closed at 12.7 points. Yes Bank invited expressions of interest for selling corporate and retail non-performing assets (NPAs) worth Rs 4,234 crore.

Nifty Smallcap 100 closed flat, while Nifty Midcap 100 closed lower following the benchmark index. Nifty Mediaand Nifty Metalclosed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day, with a rise of over 4.5%. 

Most European indices trade in the green. US indices futures trade higher indicating a positive start. Oracle shares fell 8% today as the firm provided a 2024 revenue guidance of 6% growth, while estimates pointed at around 8%.

  • Relative strength index (RSI) indicates that stocks like Hindustan Aeronautics, Adani Total Gas, Power Finance Corp and Container Corp of India are in the overbought zone.

  • SpiceJet falls over 4% despite its net loss contracting by 46.1% YoY to Rs 449 crore in Q2FY24. Its revenue declines by 29% YoY due to a lag in the air transport services and freighter & logistics services segments. In addition, the company's board has approved the issuance of 32.1 crore shares at Rs 10 each on a preferential basis.

  • Sun Pharma is falling as it revises the bid to acquire 100% of its US Subsidiary, Taro Pharmaceutical, from $38 per share to $43.

  • According to reports, AstraZeneca Pharma India agrees to acquire infectious disease vaccine developer, Icosavax, for a total consideration of $1.1 billion. The company expects this acquisition to bolster its vaccine portfolio. The company shows up in a screener for stocks with no debt.

  • Rahul Talele, Group CEO of Kolte-Patil Developers, anticipates the company to achieve sales of Rs 3,500 crore in FY25. He adds that the sales contribution from Mumbai and Bengaluru will be around 30%.
  • Oil & gas stocks like Adani Green Total, Bharat Petroleum Corp, Indraprastha Gas and GAIL (India) are falling in trade today. Barring Indian Oil Corp, all constituents of the broader BSE Oil & Gas index are trading in the red.

  • Prabhudas Lilladher maintains its ‘Add’ rating on Kansai Nerolac Paints with a target price of Rs 370, implying an upside of 13.5%. The brokerage expects improved sales growth and profitability on the back of its strong presence in the industrial paints segment. However, it foresees rising competition to pose a threat to its market share and profitability. It estimates the firm’s net profit to grow at a CAGR of 25% over FY23-26.

  • Mishra Dhatu Nigam rises as it bags an order worth Rs 357 crore, bringing its total open orders to Rs 1,750 crore. The company appears in a screenerof stocks with improving book value per share.

  • The Society of Indian Automobile Manufacturers (SIAM) reports a 31.3% YoY growth in two-wheeler sales to 16.2 lakh units in November. Sales of passenger vehicles are up 3.7% YoY to 3.3 lakh units.

  • Safari Industries (India) is rising as reports suggest that Nomura Institutional Equities believes that the company’s next leg of growth will be driven by its capacity expansion and the launch of its premium brand, Urban Jungle.

  • Yes Bankrises over 7% as it invites expressions of interest for selling corporate and retail non-performing assets (NPAs) worth Rs 4,234 crore.

  • Power stocks like Adani Energy Solutions, Adani Green Energy, NHPC, ABB Indiaand JSW Energyare falling in trade. All the constituents of the broader sectoral index, BSE Power, are also trading in the red.

  • Jewellery retailer Motisons Jewellers sets its IPO price band at Rs 52-55 per share. The issue, valued at Rs 151.1 crore, is completely a fresh issue and opens on December 18.

  • JTEKT India rises sharply as it bags an order worth Rs 182.7 crore from an international entity to supply individual components for automotive assembly. The company appears in a screener of stocks with improving net profit over the past two years.

  • Axis Direct maintains its ‘Buy’ rating on Cyient with a target price of Rs 2,195. This implies an upside of 11%. The brokerage remains positive due to the company's growing order book and superior execution abilities. It also expects the company to benefit from the aerospace spending cycle amid high passenger growth. It projects Cyient’s net profit to grow at a CAGR of 28.4% over FY23-26.

  • Thermax secures orders worth Rs 500 crore through one of its subsidiaries to set up five bio-CNG plants in Rajasthan, Madhya Pradesh, Maharashtra, and Uttar Pradesh. The plants will have a capacity to produce 110 tonnes of bio CNG per day (TPD).

  • Neerad Sharma, Head of Strategy and Investor Relations of NCC, says the current order book stands at a record high of Rs 62,349 crore, with an order inflow of Rs 21,000 crore. Sharma expects the company to achieve a 20% revenue growth and maintain a margin of over 10% in FY24.

  • Hindalco Industries rises to its 52-week high of Rs 534.8 per share as it plans to set up a manufacturing facility in Odisha to produce 25,000 tonnes of fine-quality aluminium foil to be used in rechargeable EV batteries. The company expects a capex of Rs 800 crore for the plant.

  • Jammu & Kashmir Bank rises to an all-time high of Rs 140 as it launches a Rs 750 crore qualified institutional placement. The company has set the floor price at Rs 112.7 per share.

  • Dixon Technologies (India) surges to its all-time high of Rs 6,765 per share as it receives an order to manufacture IT hardware products for Lenovo under the government's production linked incentive (PLI) scheme 2.0.

  • Mankind Pharma is falling as reports suggest that 3.5 crore shares (8.7% equity), amounting to around Rs 6,395 crore, change hands in a block deal. Chrys Capital, Capital Group and Everbridge Partners are the likely sellers in this transaction.
  • Relaxo Footwears wins a Rs 135 crore bid for a 30-acre land parcel in Pathredi Industrial Area, Rajasthan. The company plans to set up a manufacturing facility on this land in the future.

  • PNC Infratechis rising as it receives Rs 116 crore from the National Highways Authority of India (NHAI) towards eligible disputes raised by its subsidiary, PNC Raebareli Highways.

  • Rail Vikas Nigamrises as its joint venture with URC bags orders worth Rs 543 crore from Madhya Pradesh Metro Project. The project involves the construction of five elevated metro stations in two years. The company appears in a screenerof stocks with growing net profit and margins.

  • Sterling and Wilson Renewable Energysurges 5% as its board of directors approves the issue of equity shares worth Rs 1,500 crore via a qualified institutional placement. The floor price for the issue is set at Rs 365 per share.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (8,901.90, 5.39%), YES Bank Ltd. (21.30, 5.19%) and HDFC Life Insurance Company Ltd. (707.35, 5.18%).

Downers:

Largecap and midcap losers today include PI Industries Ltd. (3,484.00, -9.96%), One97 Communications Ltd. (616.55, -6.11%) and Adani Total Gas Ltd. (1,114.20, -4.94%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Equitas Small Finance Bank Ltd. (103.90, 9.95%), Infibeam Avenues Ltd. (23.25, 7.14%) and Sonata Software Ltd. (754.80, 7.05%).

Top high volume losers on BSE were PI Industries Ltd. (3,484.00, -9.96%), Cummins India Ltd. (1,928.70, -3.62%) and GMM Pfaudler Ltd. (1,475.35, -1.62%).

Tata Elxsi Ltd. (8,901.90, 5.39%) was trading at 10.7 times of weekly average. Chalet Hotels Ltd. (614.60, 4.25%) and Dixon Technologies (India) Ltd. (6,356.50, -0.25%) were trading with volumes 5.7 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

59 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (6,254.20, 1.89%), Bank of India (115.70, -2.32%) and Bharat Forge Ltd. (1,186.80, -0.54%).

4 stocks climbed above their 200 day SMA including Gujarat Fluorochemicals Ltd. (3,099.80, 4.07%) and IndiaMART InterMESH Ltd. (2,751.50, 2.74%). 7 stocks slipped below their 200 SMA including PI Industries Ltd. (3,484.00, -9.96%) and Sumitomo Chemical India Ltd. (401.25, -2.40%).

Market closes higher, HDFC Securities initiates coverage on IRM Energy with a 'Buy' rating
By Trendlyne Analysis

Nifty 50closed at 20,997.10 (27.7, 0.1%), BSE Sensexclosed at 69,928.53 (102.9, 0.2%) while the broader Nifty 500closed at 18,770.20 (66.7, 0.4%). Market breadth is in the green. Of the 2,022 stocks traded today, 1,219 showed gains, and 778 showed losses.

Indian indices closed flat, with the benchmark Nifty 50index closing at 20,997.1 points. The Indian volatility index, Nifty VIX, rose 2.3% and closed at 12.8 points. Tata Motors closed in the green after announcing a price increase in its commercial vehicles by 3% from January 2024. The company is hiking its prices to offset the residual impact of past high input costs. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty PSU Bank and Nifty Metal closed higher than their Friday close.  According to Trendlyne's sector dashboard, Forest Materials was the top-performing sector of the day as it rose 3.8%.

Major Asian indices closed flat or higher, except for Hong Kong’s Hang Seng index closing in the red. European indices traded in the green amid mixed global cues. US index futures traded marginally lower, indicating a cautious start to the trading session. Brent crude oil futures traded flat after closing 2% higher on Friday.

  • UltraTech Cement sees a long buildup in its December 28 future series as its open interest rises 17.6% with a put-call ratio of 1.

  • Tube Investments of India is rising as reports suggest that the company will likely benefit from the Centre’s new mandate requiring all N2 and N3 category trucks to have air-conditioned cabins from October 1, 2025.

  • Prestige Estates Projects, Sonata Software, and Cyient’s stock prices increase 144.8%, 140.2% and 137.9% respectively over the past year.

  • Sandip Ghose, Managing Director and CEO of Birla Corp, says the company retains its volume growth guidance of 15% and EBITDA per tonne guidance of Rs 850/kg for FY24.
  • Tata Power’s arm, Tata Power EV Charging Solutions, signs an MoU with Indian Oil Corp (IOCL) to set up more than 500 electric vehicle (EV) charging points at multiple IOCL retail outlets across India.

  • GRM Overseas rises as it sells more than 3% stake in GRM Foodkraft, an arm of the company.

  • Metal stocks like Jindal Steel & Power, Steel Authority of India, Vedantaand National Aluminiumare rising in trade. All constituents of the broader Nifty Metalindex are also trading in the red.

  • HDFC Securities initiates coverage on IRM Energy with a 'Buy' rating and a target price of Rs 580, implying an upside of Rs 23.8%. The brokerage believes the company is well-placed to capitalise on the expected increase in CNG demand, given its expanding network, favourable gas sourcing agreements, and presence in the retail and industrial markets. It projects the company’s net profit to grow at a CAGR of 44% over FY24-26.

  • Morgan Stanley has an ‘Underweight’ rating on Kansai Nerolac Paints with a target price of Rs 250. The brokerage believes that the company has good growth potential in its industrial coating business. It adds that Kansai Nerolac is also working to increase its market share in the decorative paints segment.

  • Wockhardt is rising as it announces the successful completion of the phase three study of its pneumonia drug, Nafithromycin WCK 4873. The stock shows up in a screener for companies with decreasing promoter pledges.

  • Subrossurges more than 10% as it bags an order worth Rs 25 crore from the Indian Railways to supply and commission roof-mounted ACs.

  • Zydus Lifesciences’ arm, Zydus Worldwide DMCC, enters into an exclusive agreement with the South Korean-based pharmaceutical company, Daewoong Pharmaceutical Co, to co-develop and commercialize Leuprolide long-acting injectable in the US. The injection is used for the treatment of advanced prostate cancer and has an annual sales of $671 million in the US as of October 2023.

  • PSU Bank stocks like Bank of India, Central Bank of India, Punjab National Bank and Punjab & Sind Bank rise more than 2% in trade. All constituents of the Nifty PSU Bank index are also trading in the green, helping it to touch its all-time high of Rs 5,589.4.

  • Atul Goyal, Chief Financial Officer of Brigade Enterprises, expects its revenue to reach Rs 2,800-3,000 crore in FY24. He adds that the company has 7 million sqft of launches lined up for the next two quarters. He also anticipates pre-sales to surpass Rs 5,000 crore in FY24.

  • Motilal Oswal maintains its ‘Buy’ rating on Cholamandalam Investment & Finance Co with a target price of Rs 1,420. This implies an upside of 20.8%. The brokerage's optimism is driven by the NBFC’s diverse product range, geographic presence, robust asset quality, and strong loan disbursement growth. It expects the firm’s net profit to grow at a CAGR of 31% over FY23-26.

  • Cloverdell Investment and Dayside Investment sell an aggregate of 1.8% stake in IDFC First Bank. They now hold 2.3%.

  • SpiceJet surges more than 6% to touch its 52-week high of Rs 59.7 as it plans to list its securities on the National Stock Exchange (NSE).

  • Cryogenic equipment manufacturer Inox India sets its IPO price band at Rs 627-660 per share. The issue, valued at Rs 1,459.3 crore, is completely an offer for sale and opens on December 14.

  • Oil & gas stocks like Oil & Natural Gas Corp, Gujarat Gas, Adani Total Gas and Indian Oil Corp are rising in trade. All constituents of the broader BSE Oil & Gas index are also trading in the green.

  • Tata Motors is rising as it announces to raise the prices of its commercial vehicles by 3% from January 2024. The company is hiking its prices to offset the residual impact of past high input costs. The stock shows up in a screener for companies with strong annual EPS growth.

  • DR Reddy's Laboratoriesplunges more than 5% as the US FDA issues Form 483 with three observations after conducting a good manufacturing practices (GMP) and pre-approval inspection (PAI) at its R&D centre in Hyderabad.

  • Shenu Agarwal, Managing Director and CEO of Ashok Leyland, says the company maintains its MHCV (medium & heavy commercial vehicles) industry growth forecast of 8-9% for FY24. He highlights a correction in its retail inventory in November but sees healthy demand in Q4. Agarwal adds that the defence revenue will be around Rs 800-1,000 crore in FY24.

  • RECrises to its all-time high of Rs 412 per share as it signs a loan agreement worth 200 million Euro (approx. Rs 1,795 crore) with German Bank KfW. The loan amount will be used to redevelop the distribution sector under the government's Revamped Distribution Sector Scheme (RDSS).

  • Matrix Partners India Investment Holdings sells a 3.2% stake in Five-Star Business Financein a bulk deal on Friday.

  • GMR Airports Infrastructurerises to its all-time high of Rs 72.3 per share as its subsidiary, GMR Visakhapatnam Intl Airport, executes a financing agreement worth Rs 3,215 crore with a consortium of five banks. Also, GQG Partners reportedly buys a 4.7% stake (or 28.3 crore shares) in the company for Rs 1,671.5 crore.

  • Mazagon Dock Shipbuildersrises over 4% as it bags an order worth Rs 1,145.1 crore from Oil & Natural Gas Corp for a pipeline replacement project. As per the contract, Mazagon Dock will lay 44.4 km of subsea pipelines, with completion expected in Q1FY25.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (3,895.85, 9.00%), Indian Railway Finance Corporation Ltd. (82.20, 7.31%) and Dixon Technologies (India) Ltd. (6,372.65, 6.84%).

Downers:

Largecap and midcap losers today include Dr. Reddy's Laboratories Ltd. (5,473.50, -5.04%), Hindustan Petroleum Corporation Ltd. (360.85, -4.41%) and Torrent Power Ltd. (945.65, -2.17%).

Movers and Shakers

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

Top high volume gainers on BSE included Century Plyboards (India) Ltd. (737.15, 7.32%), Indian Railway Finance Corporation Ltd. (82.20, 7.31%) and Dixon Technologies (India) Ltd. (6,372.65, 6.84%).

Top high volume losers on BSE were Dr. Reddy's Laboratories Ltd. (5,473.50, -5.04%), Dr. Lal Pathlabs Ltd. (2,561.75, -2.91%) and TeamLease Services Ltd. (2,440.00, -0.09%).

VIP Industries Ltd. (606.65, 2.24%) was trading at 3.7 times of weekly average. Piramal Pharma Ltd. (127.40, 0.51%) and Chalet Hotels Ltd. (589.90, 1.18%) were trading with volumes 3.7 and 3.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

44 stocks made 52 week highs,

Stocks touching their year highs included - Bank of India (118.45, 3.63%), Bharat Electronics Ltd. (161.25, 1.57%) and Bharat Forge Ltd. (1,193.30, 1.37%).

5 stocks climbed above their 200 day SMA including Shree Renuka Sugars Ltd. (47.35, 5.46%) and Marico Ltd. (540.65, 1.91%). 5 stocks slipped below their 200 SMA including Sumitomo Chemical India Ltd. (410.50, -1.63%) and Syngene International Ltd. (712.65, -1.45%).

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The Baseline
08 Dec 2023
Five Interesting Stocks Today

1. Radico Khaitan:

This breweries & distilleries stock has risen by 9.4% since launching its Magic Moments Remix Pink Vodka on November 23. The new product caters to the growing  demand for coloured vodka, and is set to strengthen the company’s 60% market share in the vodka segment. It appears in a screener of stocks that have risen by more than 20% over the past month, thanks to a 23.6% growth in share price during the same period.

The company’s Chief Operating Officer (COO) Amar Sinha said, “The launch of the first Magic Moments Vodka in 2006 was our response to the premiumization trend in the Indian liquor industry when Vodka was not really a household drink. We are pioneers in this category.”

In Q2FY24, the company’s net profit and revenue grew by 19% and 21.5% YoY, beating Trendlyne’s Forecaster estimates by 8.3% and 3.2%, respectively. The revenue rose due to better sales of its Royal Ranthambore whiskey, which has already surpassed its FY23 volumes in H1FY24. The EBITDA margin expanded by 130 bps YoY to 13.1% in Q2FY24, owing to price increases and ongoing premiumization in the Indian-made foreign liquor (IMFL) business.

Dolat Capital maintains its ‘Buy’ rating on the stock with an upgraded target price of Rs 1,850 per share. This indicates a potential upside of 17.9%. The brokerage believes that strong growth in the parts & accessories (bottle and distillery manufacturing) segment, volume recovery in the ‘Popular’ brand, and a reduction in raw material prices will help the brewery’s revenue. It expects the company’s revenue to grow at a CAGR of 12.4% over FY23-26. 

2. Angel One:

This capital markets firm rose by 10% in intraday trade on Wednesday, helped by robust growth in its client base and average daily turnover (ADTO) in November. Its client base surged by 51.3% YoY, reaching 1.85 crore and its gross client acquisition jumped by 114% YoY to 6.8 lakh. The company's investments in technology and digital products have given its customer experience a boost. This, along with its expanding social media presence,  has sped up its client acquisition over the past year. 

The firm has also tied up with fintech platforms like Sensibull, Smallcase, and Streak to expand its digital presence. Its ADTO increased by 165% YoY to reach Rs 34.4 lakh crore in November. The futures and options segment, which accounts for 98.8% of the total turnover, has played a key role. The impressive performance has also helped its market share, which climbed by  530 bps YoY to 14.6% as of September.

The platform’s total number of orders has grown by 51.4% YoY to 10.7 crore. This surge is due to its rising client acquisitions and daily turnovers on the back of its simplified pricing structure. Angel One is a discount broker and charges a nominal Rs 20 for options, currency, and commodity trades. The firm’s rapid growth in core operations over the past year places it in a screener of companies with strong cash-generating abilities from core businesses.

Apart from launching mutual fund distribution on its platform, the firm has also entered the consumer credit segment in FY24. Analysts at Keynote Capitals note a steep increase in cross-selling as customers are increasingly willing to purchase multiple services. Trendlyne’s Forecaster estimates the company’s annual net profit to grow by 23.4% YoY in FY24. 

3. Sonata Software

This IT consulting & software firm rose by 7% on November 30 after announcing December 12 as the record date for a 1:1 bonus issue. According to Trendlyne’s Technicals, the stock has risen by 4.4% in the past week. It appears in a screener of stocks with strong momentum.

In Q2FY24, Sonata Software’s TTM operating revenue grew by 22.8% YoY, helped by an increase in the international IT and domestic services segments. The company’s TTM operating profit margins also improved by 33 bps YoY, thanks to better utilization and operational efficiency overall. The management plans to expand International IT Services, aiming for a revenue target of $1,500 million by FY26E, an increase of 118% from FY23. It is also focused on maintaining EBITDA margins around 20%, a notable increase from the 11.5% in Q2FY24.

Post the integration of Quant Systems, the company has unlocked partnership opportunities worth $150 million in healthcare, life sciences, and BFSI verticals. The firm also grew its major deal pipeline by 38%. It expects a 25% revenue contribution from AI through Harmony.AI by H1FY25. Additionally, as Microsoft's systems integrator partner, Sonata is at the forefront of the “Fabric Platform” launch. Fabric offers data-related services, including integration, warehousing and real-time analytics.

KR Choksey notes that Sonata has achieved robust growth, especially in its international IT services segment (46.0% YoY). With a strong client base, including partnerships with major players like Google, SAP, AWS, and Microsoft, the firm maintains an ‘Add’ rating on the stock. 

4. Kalpataru Projects International (KPIL):

This electric utilities company has risen by 3.1% in the past week, following the announcement of new orders worth Rs 2,263 crore on Monday. The company’s transmission and distribution (T&D) business has obtained orders totaling Rs 1,564 crore across India and overseas markets. Its water and buildings & factories (B&F) businesses bagged orders worth Rs 458 crore and Rs 241 crore, respectively. 

KPIL’s order inflows stand at Rs 14,441 crore post these order wins. Manish Mohnot, the Managing Director & CEO, said “These T&D orders have strengthened our order book in India, Latin America, Africa and Sweden. We expect the T&D business to be a significant growth driver for KPIL in the coming years.” He also highlighted its plans to achieve an order inflow of Rs 25,000 crore in FY24. The T&D segment contributes around 36% of the company’s total revenue as of Q2FY24. 

In Q2FY24, its net profit improved by 3.5% YoY to Rs 89 crore. Its revenue also increased by around 19% YoY to Rs 4,518 crore, driven by the engineering, procurement and construction segments. 

Prabhudas Lilladher has a ‘Buy’ rating on Kalpataru Projects with a target price of Rs 740, implying an upside of around 8.2%. The brokerage has a positive outlook on the company due to its focus on geographically expanding across the water, railways, and civil segments, and its increasing pre-qualification for large contracts. 

5. GAIL (India):

This natural gas company has risen by 6.4% in the past week, reaching an all-time high of Rs 145.1 on Monday. This surge follows a decline in average liquefied natural gas (LNG) prices, thanks to an easing of global supply conditions. Natural gas prices also fell by 25.3% in November. 

In the past week, GAIL filed an arbitration case against SEFE Marketing & Trading Singapore, a former unit of Russia's Gazprom, seeking $1.8 billion in damages for not receiving the supply of LNG. GAIL had signed a 20-year contract in 2012 to buy 2.9 million tonnes of LNG from Gazprom, with deliveries starting in 2018 and expected to reach full volume by 2023. However,  supplies stopped in June 2022 following Western sanctions against Russia for invading Ukraine. The supplies were later resumed in April 2023.

In Q2FY24, GAIL’s net profit increased by 85.8% YoY to Rs 2,444.1 crore (beating Trendlyne Forecaster’s estimate by 35.2%), despite a 14.7% decline in revenue. This resulted in a 639 basis points YoY increase in EBITDA margin due to lower inventory costs. The management expects to cross an EBITDA of Rs 4,000 crore in FY24 in the trading segment, a 25% increase.

GAIL incurred a capex of Rs 2,460 crore in Q2, mainly in pipelines, petrochemicals, and city gas distribution projects. 

ICICI Securities reiterates its ‘Buy’ call on GAIL on the back of its strong Q2 performance. The brokerage remains optimistic, expecting stronger tariffs, higher transmission volumes, and falling costs for petrochemicals and LPG.

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

Market closes higher, Sterlite Technologies claims overdue amount of Rs 254 crore from Aksentt Tech
By Trendlyne Analysis

Nifty 50 closed at 20,969.40 (68.3, 0.3%) , BSE Sensex closed at 69,825.60 (303.9, 0.4%) while the broader Nifty 500 closed at 18,703.50 (-0.4, 0%), of the 1,992 stocks traded today, 759 were on the uptick, and 1,198 were down.

Indian indices recovered from their day lows and closed in the green, with the Nifty 50 closing at 20,969.4 points. The Indian volatility index, Nifty VIX, fell 1.6% and closed at 12.5 points. Mutual Funds' net equity inflow rises 28.4% MoM to Rs 15,536 crore in November, according to data released by the Association of Mutual Funds in India (AMFI). Total AUM stands at Rs 49 lakh crore during the same period.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, underperforming the benchmark index. Nifty IT and Nifty Bank closed higher than their Thursday close. According to Trendlyne's sector dashboard, Utilities was the top-performing sector of the week as it rose 20.5%.

Major Asian indices closed flat or higher, except for Japan’s Nikkei 225 index closing in the red. European indices traded in the green, taking cues from Asian indices. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the green but are set to post weekly losses for a seventh straight week.

  • Money flow index (MFI) indicates that stocks like Adani Total Gas, Adani Green Energy, Bharat Heavy Electricals and Bharat Petroleum Corp are in the overbought zone.

  • KPI Green Energy'ssubsidiary, KPIG Energia, receives an order from Citizen Umbrella Manufacturers to execute solar power projects with a total capacity of 1.7 MW. The projects are scheduled to be completed in FY25 and takes the company's order size to cross 149 MW in the captive power producer (CPP) segment.

  • JSW Steel is rising as its American subsidiary, JSW Steel Ohio, plans to raise $145 million by issuing long-term bonds. The funds are expected to be used for construction and expansion.

  • IT stocks like HCL Technologies, LTIMindtree, Persistent Systems, Infosys and Coforge are rising in trade. All the constituents of the broader sectoral index, Nifty IT, are also trading in the green.

  • Infibeam Avenues rises around 8.7% in trade today. The company ranks high on Trendlyne’s checklist, scoring 69.6%. It also features in a screener of stocks with strong annual EPS growth.

  • HDFC Asset Management is falling as Life Insurance Company of India sells a 2.1% stake (44.7 lakh shares) in the AMC in the open market. This takes LIC's stake in HDFC AMC to 6.9% from 9%.

  • Sterlite Technologies falls despite claiming an overdue amount of Rs 254 crore from Aksentt Tech Services. This claim is based on a master agreement signed between the two companies to deploy optic fibre in 1,960 villages across Maharashtra. The company appears in a screener of stocks with reducing debt.

  • PSU Banks like Indian Overseas Bank, Punjab National Bank, Central Bank of India, Punjab & Sind Bank and Indian Bank are falling in trade. All the constituents of the broader sectoral index, Nifty PSU Bank, are trading in the red.

  • Sanghi Industries hits the upper circuit as Ambuja Cements buys a 2.2% stake in the company on December 5. Ambuja Cements has also risen after the deal.

  • Mutual Funds' net equity inflow rises MoM to Rs 15,536 crore in November, according to data released by the Association of Mutual Funds in India (AMFI). Total AUM stands at Rs 49 lakh crore during the same period.

  • Foreign institutional investors invest Rs 17,215 crore in the equity market over the past week, according to Trendlyne's FII dashboard. However, index options witness the highest outflow of Rs 1.6 lakh crore from foreign investors. Meanwhile, mutual funds invest Rs 5,805.8 crore in the equity market over the same period.

  • ICICI Direct maintains its ‘Buy’ rating on Sansera Engineeringand a target price of Rs 1,100. This implies an upside of 18.6%. The brokerage remains positive about the firm’s prospects due to its robust order book, export order wins, long-tenure clients and execution capabilities. It expects the company’s net profit to grow at a CAGR of 34.6% over FY23-25.

  • Olectra Greentechrises as it bags a Rs 62.8 crore order to supply and maintain 40 buses for Vasai Virar City Municipal Corp in Mumbai. It appears in a screenerof stocks with improving net profit and margins.

  • Reports suggest that 75.8 crore shares (12.6% equity) of GMR Airports, amounting to Rs 4,465 crore, change hands in a large trade.

  • Nifty 50 hits an all-time high of 21,006.1 as the RBI Monetary Policy Committee keeps the repo rate unchanged at 6.5%.

  • SpiceJet is falling despite the Dubai International Financial Centre (DIFC) Court lifting the freezing order previously issued against the airline. This order, dated October 30, was related to certain engines installed on aircraft with the Indian registration mark VT-SLM.

  • UPL rises as it incorporates a subsidiary, Advanta Seeds, for conducting seed and related businesses in Zambia. The company appears in a screener of stocks with improving book value per share.

  • Reports suggest that 2.3 crore shares (8% equity) of Five-Star Business Finance, amounting to Rs 1,704 crore, change hands in a large trade.
  • Container Corp of Indiais rising as it signs a memorandum of understanding (MoU) with NTPC's subsidiary, NTPC Vidyut Vyapar Nigam (NVVM). As per the MoU, NVVM will set up solar projects at CONCOR terminals, while CONCOR will purchase solar power from these projects on a long-term basis.

  • IIFL Securitiesrises to an all-time high of Rs 134.4 as the Securities Appellate Tribunal sets aside a SEBI order prohibiting the broker from onboarding new clients for two years. The company appears in a screenerof stocks with strong momentum.

  • Titagarh Rail Systems is rising as its board of directors approves the issue of equity shares worth Rs 700 crore. The issue will take place through a qualified institutional placement (QIP) with a floor price of Rs 976.1 per share.

  • The RBI keeps the policy repo rate unchanged at 6.5% during the Monetary Policy Committee meeting. It raises the FY24 GDP forecast for India by 50 bps to 7% and projects CPI inflation at 5.4%.
  • Zomato's shares, valued at Rs 1,125 crore, are reportedly sold in a block deal today. Reports also suggest that Softbank is likely the seller as it has been planning to reduce its stake in the company.

  • IRB Infrastructure Developers rises to an all-time high of Rs 40.9 as its monthly toll collection increases by 19.4% YoY to Rs 437 crore. The company appears in a screener of stocks with increasing revenue for the past 4 quarters.

  • Motilal Oswal Mutual Fund buys a 0.5% stake (10 lakh shares) in Tube Investments of India at Rs 3,348.1 per share, amounting to Rs 334.8 crore.

  • Dayside Investment sells a 1.4% stake (nearly 9.2 crore shares) in IDFC First Bank at Rs 86.1 per share, amounting to Rs 790.2 crore.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (3,574.20, 4.74%), REC Ltd. (405.45, 2.75%) and HCL Technologies Ltd. (1,364.10, 2.72%).

Downers:

Largecap and midcap losers today include Adani Energy Solutions Ltd. (1,131.50, -5.61%), Adani Power Ltd. (533.80, -5.09%) and Adani Green Energy Ltd. (1,550.30, -4.55%).

Volume Rockets

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

Top high volume gainers on BSE included Alok Industries Ltd. (23.30, 12.83%), GMR Airports Infrastructure Ltd. (68.90, 11.67%) and KIOCL Ltd. (376.35, 10.00%).

Top high volume losers on BSE were Praj Industries Ltd. (545.05, -10.28%), Five-Star Business Finance Ltd. (735.15, -2.83%) and Bayer Cropscience Ltd. (5,425.00, -0.94%).

Elgi Equipments Ltd. (536.40, 3.24%) was trading at 11.2 times of weekly average. Indiabulls Real Estate Ltd. (89.90, 9.57%) and Infibeam Avenues Ltd. (22.05, 9.16%) were trading with volumes 7.3 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

64 stocks made 52 week highs,

Stocks touching their year highs included - Bharat Electronics Ltd. (158.75, -1.00%), Container Corporation of India Ltd. (843.20, 0.10%) and Coromandel International Ltd. (1,224.75, -1.27%).

7 stocks climbed above their 200 day SMA including Shoppers Stop Ltd. (712.45, 2.39%) and Happiest Minds Technologies Ltd. (882.70, 1.79%). 7 stocks slipped below their 200 SMA including Shree Renuka Sugars Ltd. (44.90, -6.26%) and Adani Wilmar Ltd. (377.90, -4.47%).

Market closes lower, ICICI Direct maintains its ‘Buy’ rating on IndusInd Bank
By Trendlyne Analysis

Nifty 50 was trading at 20,915.25 (-22.5, -0.1%), BSE Sensex was trading at 69,546.71 (-107.0, -0.2%) while the broader Nifty 500 was trading at 18,709.35 (29.4, 0.2%), of the 1,973 stocks traded today, 1,188 showed gains, and 753 showed losses.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 20,901. The volatility index, Nifty VIX, dropped by 7.8% and closed at 12.7 points. One97 Communications (Paytm) announced plans to scale down its disbursements of unsecured loans under Rs 50,000 in response to the regulatory changes. Loans under Rs 50,000 make up for 50% of its disbursements.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, with the benchmark index closing lower. Nifty Consumer Durables and Nifty Energy closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 6.2%.

Most European indices trade in the red, except for Europe’s Euronext 100 and France’s CAC 40 trading higher. US indices futures trade lower, indicating a negative start. German factory orders for October contracted by 3.7% against estimates of 0.2% growth.

  • Relative strength index (RSI) indicates that stocks like Hindustan Aeronautics, Adani Green Energy, Adani Total Gas and Trent are in the overbought zone.

  • NHPC rises 5.7% in trade and touches a new 52-week high today. The company ranks high on Trendlyne’s checklist, scoring 52.2%. It also features in a screener of stocks with prices above short, medium and long-term moving averages.

  • ICICI Prudential Life Insurance Company falls as its new business premium in November rises marginally by 2.1% YoY to Rs 1,290 crore. The company's new business sum assured improves by 32.6% YoY. It appears in a screener of stocks with declining net cash flow.

  • ICICI Direct maintains its ‘Buy’ rating on IndusInd Bank with a target price of Rs 1,800. This indicates an upside of 20%. The brokerage is optimistic due to the bank's ongoing expansion of its branch network, increasing focus on the retail segment, and steady asset quality. It expects the company’s net profit to grow at a CAGR of 18% over FY23-26.

  • PSP Projects is rising as it bags an order worth Rs 101.7 crore from the Gujarat government for the construction of a building in GIFT City. The company is also the lowest bidder for a Rs 409.9 crore project involving the development of the Sabarmati waterfront in Ahmedabad, Gujarat.

  • Utility stocks like Tata Power, NHPC, Reliance Infrastructure and SJVN surge more than 4% in trade today. The broader BSE Utilities index is also trading more than 2% higher.

  • Tata Power surges to an all-time high after JM Financial reportedly upgrades its rating to 'Buy' from 'Hold' and increases its target price by 40% to Rs 350. The brokerage remains positive on the back of Tata Power's focus on renewable energy opportunities, exiting low-value businesses, venturing into brownfield hydrostorage, and expanding its transmission business beyond distribution.

  • Stationery and art materials manufacturing firm DOMS Industries sets the price band for its IPO at Rs 750-790 per share. The issue size is Rs 1,200 crore, with a fresh issue of Rs 350 crore and an offer for sale of Rs 850 crore. The issue opens on December 13.

  • KRChoksey initiates coverage on Varun Beverageswith a ‘Buy’ rating and a target price of Rs 1,273. This implies an upside of 17.9%. The brokerage believes the company is well-placed to benefit from the rise in demand for carbonated drinks in India due to its extensive distribution network, capacity expansion, entry into new territories and new launches. It expects the firm’s net profit to grow at a CAGR of 26.2% over CY22-25.

  • SpiceJetrises 20% to touch its 52-week high of Rs 52.3 per share as the airline schedules a board meeting on Monday. At the meeting, the board will consider raising fresh capital through the issuance of equity shares and convertible securities on a preferential basis.

  • Dixon Technologies, Laxmi Organic Industries, Power Mech Projects, and Yatra Online witness an increase in mutual fund holdings in the past month.

  • Bharti Airtel is falling as 1.8 crore shares (0.8% equity), amounting to Rs 1,856 crore, change hands in a block deal, according to reports. Global private equity firm Warburg Pincus is a likely seller in this transaction.
  • Network18 Media & Investments and TV18 Broadcast plunge over 7% as Network18 Group approves their merger. As per the agreement, TV18 shareholders will receive 100 shares of Network18 for every 172 shares they hold in TV18.

  • One97 Communications (Paytm) is falling as it plans to reduce disbursements of unsecured loans below Rs 50,000 due to regulatory changes. JP Morgan reportedly downgrades the firm to ‘Neutral’ from ‘Overweight’ and reduces the target price to Rs 900 from Rs 1,200. This adjustment of small-ticket unsecured loans will impact the platform's loan generation, as the segment makes up 50% of the total disbursements.

  • 360 One Wam's promoters, Nirmal Jain, Madhu Jain and Venkataraman Rajamani, sell 1.4%, 0.8% and 0.6% stakes in the company, respectively.

  • IDFC First Bank is falling as 13.2 crore shares (around 2% equity), amounting to Rs 1,135 crore, change hands in a block deal, according to reports.

  • Sapphire Foods India's promoter, Arinjaya (Mauritius), sells a 4.2% stake in the company. It now holds 3.8%.

  • Dr. Reddy's Laboratories rises as it partners with Coya Therapeutics to commercialize COYA 302, a treatment for amyotrophic lateral sclerosis (ALS). The company will make an upfront payment of $7.5 million (approx Rs 62.5 crore) to Coya Therapeutics for this.

  • Alok Industries is rising as it signs a facility agreement with State Bank of India for a Rs 1,750 crore loan to repay existing debt. The company will also receive Rs 90 crore for working capital requirements.

  • Macquarie maintains its ‘Outperform’ rating on Hindustan Unilever with a target price of Rs 3,000. The brokerage expects the company’s Q3 demand and volume growth to be similar to Q2FY24 levels. Channel checks suggest that there is no festive season boost in demand trends.
  • Brigade Enterprises enters a joint development agreement to develop a 0.2 million square feet office space in Bengaluru with a gross development value of Rs 500 crore.

  • Ircon International falls sharply amid government plans to sell an 8% stake through an offer for sale at a floor price of Rs 154 per share. The offer will open for non-retail investors on December 7 and for retail investors on December 8. The company appears in a screener of stocks with zero promoter pledges.

  • Delta Corp rises over 4% as its subsidiary, Datatech Gaming, receives interim relief from the Calcutta High Court in a case involving a Rs 6,384.3 crore tax demand. The court has also ordered that any decision made by the Tax Authority on the show cause notice should not be implemented until further notice.

  • Bharat Electronics rises to an all-time high of Rs 161.8 as it bags orders worth Rs 3,915 crore. This includes a Rs 580 crore order from the Indian Army for radars and Rs 3,335 crore in defence orders since September 15. The company appears in a screener of stocks with strong momentum.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (1,146.85, 8.88%), Tata Power Company Ltd. (319.70, 8.69%) and Life Insurance Corporation of India (791.30, 6.07%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (669.80, -17.62%), Aditya Birla Capital Ltd. (168.20, -2.80%) and Bank of India (113.75, -2.49%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included ITI Ltd. (314.80, 15.97%), KIOCL Ltd. (342.15, 10.00%) and MMTC Ltd. (55.75, 9.96%).

Top high volume losers on BSE were One97 Communications Ltd. (669.80, -17.62%), Praj Industries Ltd. (616.50, -3.66%) and Balrampur Chini Mills Ltd. (421.30, -2.43%).

Finolex Industries Ltd. (213.80, 3.74%) was trading at 6.3 times of weekly average. HFCL Ltd. (70.75, 6.47%) and Tube Investments of India Ltd. (3407.90, 2.21%) were trading with volumes 4.7 and 4.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks hit their 52 week highs,

Stocks touching their year highs included - Apollo Tyres Ltd. (464.30, 0.40%), Bajaj Finserv Ltd. (1,706.95, 0.39%) and Bajaj Holdings & Investment Ltd. (8,143.55, 3.36%).

11 stocks climbed above their 200 day SMA including HFCL Ltd. (70.75, 6.47%) and Devyani International Ltd. (187.20, 1.68%). 7 stocks slipped below their 200 SMA including One97 Communications Ltd. (669.80, -17.62%) and Aditya Birla Capital Ltd. (168.20, -2.80%).

Nifty 50 closed at 20901.15 (-36.6, -0.2%) , BSE Sensex closed at 69521.69 (-132.0, -0.2%) while the broader Nifty 500 closed at 18703.85 (23.9, 0.1%)

Market breadth is in the green. Of the 1987 stocks traded today, 1098 were gainers and 856 were losers.

Riding High:

Largecap and midcap gainers today include Tata Power Company Ltd. (325.80, 10.76%), Adani Total Gas Ltd. (1158.60, 10.00%) and NHPC Ltd. (64.25, 6.73%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (661.35, -18.66%), Aditya Birla Capital Ltd. (166.60, -3.73%) and IDFC First Bank Ltd. (87.70, -2.99%).

Volume Rockets

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

Top high volume gainers on BSE included Tata Power Company Ltd. (325.80, 10.76%), ITI Ltd. (300.10, 10.55%) and KIOCL Ltd. (342.15, 10.00%).

Top high volume losers on BSE were One97 Communications Ltd. (661.35, -18.66%), Ircon International Ltd. (160.75, -6.51%) and Balrampur Chini Mills Ltd. (408.60, -5.37%).

Finolex Industries Ltd. (214.45, 4.05%) was trading at 7.7 times of weekly average. HFCL Ltd. (70.35, 5.87%) and MMTC Ltd. (55.75, 9.96%) were trading with volumes 5.9 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

66 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Apollo Tyres Ltd. (455.15, -1.58%), Bajaj Finserv Ltd. (1704.05, 0.22%) and Bajaj Holdings & Investment Ltd. (8080.40, 2.56%).

12 stocks climbed above their 200 day SMA including HFCL Ltd. (70.35, 5.87%) and Redington Ltd. (168.70, 2.12%). 8 stocks slipped below their 200 SMA including One97 Communications Ltd. (661.35, -18.66%) and Balrampur Chini Mills Ltd. (408.60, -5.37%).