
Trendlyne Analysis
Nifty 50 closed at 20,133.30 (-59.1, -0.3%), BSE Sensex closed at 67,596.84 (-241.8, -0.4%) while the broader Nifty 500 closed at 17.613.60 (-52.2, -0.3%). Market breadth is in the red. Of the 1,959 stocks traded today, 717 were in the positive territory and 1,199 were negative.
Indian indices pared the gains from the afternoon session and closed in the red, with the Nifty 50 closing at 20,133. The volatility index, Nifty VIX, dropped by 0.5% and closed at 10.8 points. RBI in its new circular to banks, has discontinued one-time shifting of securities from held-to-maturity (HTM) to available-for-sale (AFS) category starting from April 2024. This is expected to impact banks' treasury mark-to-market (MTM) gains in FY25 as the interest rates cool.
Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. Nifty Auto and Nifty PSU Bank closed higher, compared to Wednesday’s closing levels. According to Trendlyne’s sector dashboard, textiles, apparel & accessories emerged as the top-performing sector of the day, with a rise of over 0.9%.
Most European indices trade in the red. US indices futures trade higher, indicating a positive start. Semiconductor stocks declined after market hours as Nordic Semiconductors cut its Q3 revenue guidance and Taiwan Semiconductor Manufacturing asked its suppliers to delay deliveries amid a demand slowdown.
Relative strength index (RSI) indicates that stocks like ITI, GlaxoSmithKline Pharmaceuticals, Tata Teleservices (Maharashtra) and HCL Technologies are in the overbought zone.
Brigade Enterprises falls even as its subsidiary, Brigade Tetrarch, purchases a 5-acre land parcel worth Rs 123.5 crore in Bengaluru. The land will be used for a residential project with a revenue potential of Rs 800 crore. The company appears in a screener of stocks with improving RoCE.
Fine Organic Industries, Titan Company, Tata Investment Corporation, HDFC Life Insurance Company and Bank of Baroda are trading above their third resistance or R3 levels despite the market trading in the red.
Geojit maintains its ‘Buy’ rating on TTK Prestige and raises the target price to Rs 950 from Rs 857, implying an upside of 20.5%. The brokerage is optimistic about the firm’s long-term prospects, given the rise in middle-income households, improvement in the real estate sector, and declining input costs. Additionally, the firm's strong brand recall is highlighted as a major asset.
Samhi Hotels' Rs 1,370.1 crore IPO gets bids for 5.3X the available 6.3 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.1X the available 1.1 crore shares on offer.
Zaggle Prepaid Ocean Services' Rs 563.4 crore IPO gets bids for 12.6X the available 1.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 5.9X the available 35.6 lakh shares on offer.
Va Tech Wabag rises as it signs an MoU with Al Jomaih Energy and Water (AEW) at the India-Saudi Investment Forum. The MOU aims to evaluate collaboration and investment in water projects in Saudi Arabia and other Middle Eastern geographies, says Pankaj Malhan, Deputy MD & Group CEO.
Under the partnership, both WABAG and AEW will cooperate on various aspects, including engineering, procurement, and construction (EPC), project development, and feasibility assessments for potential water projects.https://t.co/s6jiWvina0
— businessline (@businessline) September 18, 2023
Yatra Online's Rs 775 crore IPO gets bids for 0.3X the available 3.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.3X the available 56.1 lakh shares on offer.
D B Realty rises and touches its 52-week high as it completes raising funds worth Rs 1,544 crore by way of a preferential issue of 25.7 crore convertible warrants. The company also enters into a partnership with Adani Good Homes, Godrej Residency and Prestige Group entities. It appears on a screener for stocks with strong momentum.
PSU bank stocks like Indian Overseas Bank, UCO Bank, Punjab & Sind Bank and Central Bank of India surge more than 9% in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.
According to reports, the Centre is working on a PLI scheme for heavy machinery used in mining and construction. The scheme size may be in the range of Rs 8,000-12,000 crore.
The Union government is working on a production-linked incentive (#PLI) scheme worth ?12,000 crore for heavy machinery used in mining and construction.
(@narayan_subhash & @riturajbaruah1 report) https://t.co/Z9Nm7SsNPW.— Mint (@livemint) September 18, 2023
Five-Star Business Finance rises as Smallcap World Fund acquires a 1% stake (30.2 lakh shares) in the company. The deal was executed for a total consideration of Rs 211.4 crore. The company appears in a screener of stocks with increasing FII/FPI shareholding.
Ashapura Minechem rises to its all-time high of Rs 339 per share as its subsidiary, Ashapura Holdings (UAE), signs three contracts. Two are with State Power Investment Corp to supply 24 million tonnes of bauxite from Guinea, and the third is with Tai He Mining to supply 10 million tonnes of iron ore.
Axis Direct maintains its ‘Buy’ rating on Star Cement with a target price of Rs 185, implying an upside of 14.5%. The brokerage believes the company is well-placed to capitalise on the growing demand for cement in North and North-East of India. This is due to its rising capacity, strong distribution network in the region, and lower logistical costs owing to its plants' proximity to limestone mines. It expects the firm’s revenue to grow at a CAGR of 23% over FY23-25.
Joydeep Dutta Roy, Executive Director at Bank of Baroda, anticipates a loan growth of 14-15% YoY for FY24, including over 20% increase in retail loans. He adds that the bank’s net interest margin will be around 3.3% during the same period. He also expects better growth rates during the festive season.
Bank of Baroda says
There is uptick in spending from consumers
FY24 Guidance
????Credit growth +14-15%, retail will be 20%+
????NIMs will be around 3.3%
????Targets ?12000cr of recovery/upgrades#StockMarkethttps://t.co/OZIHHUl7JZ— Nigel D'Souza (@Nigel__DSouza) September 18, 2023
Gensol Engineering rises as it acquires a 54.4% stake (58,779 shares) in Scorpius Trackers for Rs 135 crore. This acquisition aims to provide engineering, procurement and construction support to Gensol Engineering's clients. The company appears in ascreener of stocks with strong momentum.
Jupiter Life Line Hospitals’ shares debut on the bourses at a 32.4% premium to the issue price of Rs 735. The Rs 869.1 crore IPO has received bids for 63.7 times the total shares on offer.
Hindustan Aeronautics rises as it receives approval for Acceptance of Necessity (AON) from the Defence Acquisition Council (DAC) for the procurement of twelve Su-30MKI aircraft, along with associated equipment and avionics upgrades for Dornier Aircraft. It appears on a screener for stocks with strong momentum.
Shalabh Saxena, the Managing Director of Spandana Sphoorty, expects AUM to reach Rs 12,000 crore in FY24, with a guidance of Rs 17,000 crore for FY25. He also highlights that the company has selected seven states to focus on increasing market share. The firm targets to expand its customer base to 12-13 lakh in FY24, from 8.8 lakh in FY23.
#OnCNBCTV18 | By #FY24, #AUM will be at ?12,000 cr. Presented to board #guidance of ?17,000 cr of AUM by #FY25. Expect few PSU Banks to come in and aid lowering cost of funds, says Shalabh Saxena of Spandana Sphoorty pic.twitter.com/te8NvH4gXR
— CNBC-TV18 (@CNBCTV18Live) September 18, 2023
Salasar Techno Engineering is rising as it secures an order worth $9.4 million (Rs 78.2 crore) from the Energy Development Corp for the Rwanda Transmission System Reinforcement project. The stock shows up in a screener for companies with zero promoter pledges.
RattanIndia Power's Managing Director Brijesh Narendra Gupta resigns from the company due to personal reasons, with effect from Friday.
Capacit’e Infraprojects is rising as it bags a repeat order worth Rs 281 crore from Raymond for its real estate project, Codename Xception, in Thane. The stock shows up in a screener for companies with strong annual EPS growth.
Motilal Oswal upgrades its rating on Cipla to ’Buy’ and hikes the target price to Rs 1,420. The brokerage believes that the firm's US sales are recovering, and anticipates continued outperformance in the branded generics markets of India and South Africa.
Brokerage Radar | @MotilalOswalLtd on #Cipla: Upgrade to 'Buy' from Neutral; Expect steady outperformance in branded generics market of India/SA pic.twitter.com/QESiNZB9A5
— ET NOW (@ETNOWlive) September 18, 2023
HFCL surges more than 5% as it bags an order worth Rs 1,015 crore from Madhya Pradesh Jal Nigam to provide engineering, procurement and construction services for laying optic fiber cables on important routes to execute multi-village drinking water supply network in the state. The order is expected to be completed in 24 months.
Indian Oil Corp rises as its board approves additional investment of Rs 903.5 crore in Hindustan Urvarak and Rasayan (HURL). HURL is a joint venture of Indian Oil Corp with NTPC and three other PSUs, incorporated to set up fertilizer plants at Gorakhpur, Sindri and Barauni. The company appears in a screener of stocks nearing a 52-week high with significant volumes.
Vodafone Idea completes a payment of Rs 1,701 crore to the Department of Telecommunications towards the 2022 Spectrum auction instalment. In a separate exchange filing, the company also stated that the rumours of an acquisition by a US Telecom company are false.
Bharat Electronics bags two orders worth Rs 3,000 crore from Cochin Shipyard. The first order, valued at Rs 2,118.6 crore, is for supplying sensors, weapon equipment, fire control systems and communication equipment for six next-generation missile vessels (NGMV). The second order worth Rs 886 crore involves upgrading Akash missiles with RF seeker, inertial navigation system, and other equipment.
Riding High:
Largecap and midcap gainers today include Indian Overseas Bank (46.40, 17.47%), IDBI Bank Ltd. (72.55, 4.24%) and Bank of India (109.70, 3.74%).
Downers:
Largecap and midcap losers today include Vodafone Idea Ltd. (10.90, -6.84%), Syngene International Ltd. (800.70, -4.05%) and Indian Railway Finance Corporation Ltd. (76.60, -3.47%).
Volume Shockers
14 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KIOCL Ltd. (314.60, 19.98%), Indian Overseas Bank (46.40, 17.47%) and UCO Bank (46.50, 15.10%).
Tata Investment Corporation Ltd. (2,689.15, 8.87%) was trading at 27.1 times of weekly average. Easy Trip Planners Ltd. (44.70, 11.89%) and Asahi India Glass Ltd. (623.40, 3.81%) were trading with volumes 11.6 and 4.7 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
36 stocks made 52 week highs,
Stocks touching their year highs included - Bajaj Auto Ltd. (5,176.65, 0.90%), Bank of Baroda (217.35, 3.11%) and Bank of India (109.70, 3.74%).
3 stocks climbed above their 200 day SMA including Britannia Industries Ltd. (4,596.20, 1.40%) and Honeywell Automation India Ltd. (39,921.00, -0.22%). 7 stocks slipped below their 200 SMA including Ambuja Cements Ltd. (436.65, -1.89%) and Chambal Fertilisers & Chemicals Ltd. (281.95, -1.64%).