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Trendlyne Marketwatch
Trendlyne Marketwatch
04 Oct 2023
Market closes lower, Plaza Wires' IPO gets bids for 62.6X of available shares

Trendlyne Analysis

Nifty 50closed at 19,436.10 (-92.7, -0.5%), BSE Sensexclosed at 65,226.04 (-286.1, -0.4%) while the broader Nifty 500closed at 17,123.10 (-131.3, -0.8%). Market breadth is highly negative. Of the 1,955 stocks traded today, 535 were in the positive territory and 1,373 were negative.

Indian indices recovered from their day lows but still closed in the red, with the Nifty 50closing at 19,436.1 points. The Indian volatility index, Nifty VIX, fell 1.1% and closed at 11.7 points. Nestle India rose 3% after its board of directors considered a proposal to split its shares, each with a face value of Rs 10. It is also considering a second interim dividend for 2023.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, following the benchmark index. However, Nifty ITand Nifty FMCG closed higher than their Tuesday’s close. According to Trendlyne's sector dashboard, Commercial Services & Supplies was the top-performing sector of the day as it rose 1.4%.

European indices rebounded and traded higher after opening in the red on a volatile day. However, major Asian indices settled lower than their Tuesday close. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after rising 0.7% on Tuesday.Axis Bank says media reports about the bank planning to raise Rs 10,000 crore via QIP are untrue. The bank adds any fund-raising decision might be taken at the board meeting ahead of the results and the report is purely speculative.

  • Axis Bank sees a short buildup in its October 26 future series as its open interest rises 26.5% with a put-call ratio of 0.4.

  • Metal & mining stocks like Vedanta, Jindal Steel & Power, Steel Authority of India, Tata Steel and National Aluminium Co are falling in trade. All constituents of the broader sectoral index, BSE Metal, are also trading in the red.

  • JPMorgan maintains its ‘Overweight’ rating on HDFC Bank with a target price of Rs 1,900. According to the brokerage, the bank's Q2FY24 earnings are expected to be weak and this weakness will worsen post Q2. It adds that the bank's sequential advances growth momentum has increased to 5% QoQ, and deposits are coming in thick and fast.

  • Reliance Industries' step-down subsidiary, Reliance Brands Holding UK, signs a joint venture (JV) agreement with Superdry. The purpose of the JV is for Superdry to sell its South Asian IP to Reliance for $48.3 million (approximately Rs 401.7 crore).

  • Alembic Pharmaceuticals is falling as flash floods disrupt operations at its Sikkim facility. No loss or harm has been caused to any personnel. The stock shows up in a screener for companies in which mutual funds have increased their shareholdings over the past month.

  • Plaza Wires' Rs 71.3 crore IPO gets bids for 62.6X the available 95 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 223.8X the available 13.2 lakh shares on offer.

  • Adani Enterprises is rising as Abu Dhabi-based International Holding Company (IHC) raises its stake in the firm to over 5%. This comes just a week after the UAE-based business sold its entire stake in Adani Green Energy and Adani Energy Solutions.

  • HDFC Securities maintains its ‘Buy’ rating on Prestige Estates Projects and raises the target price to Rs 786 from Rs 700. This implies an upside of 27.1%. The brokerage expects sustained demand for housing and office spaces in the long term despite potential rate hikes. It believes the company is well-placed to capitalise on this growing demand, given its robust pre-sales and launch pipeline.

  • Easy Trip Plannerssigns a memorandum of understanding (MoU) worth RS 250 with the government of Uttarakhand. Under the MoU, the company will make joint marketing campaigns with the state to target the American, European and Asian markets.

  • Bajaj Finserv falls as its subsidiary, Bajaj Allianz General Insurance Co, receives a show cause cum GST demand notice of Rs 1,010 crore. The notice was served by the Directorate General of GST Intelligence, Pune. The company appears in a screenerof stocks with declining net cash flow.

  • Suzlon Energy touches a new 52-week high as it releases a pledge on 97.1 crore shares from SBICAP Trustee Co. These shares account for 7.1% of the total equity. It appears in a screener for stocks with strong momentum.

  • Jitendra Adhia, President of Finance at Atul Auto, projects high single-digit margins for FY24. He expects a run rate exceeding 1,000 units per quarter in H2FY24. Adhia is optimistic about Atul Auto’s sales returning to pre-Covid levels during the festive period.

  • Realty stocks like Macrotech Developers, DLF, Oberoi Realty, Mahindra Lifespace Developers and Phoenix Mills are falling in trade. The broader sectoral index, Nifty Realty, is also trading in the red.

  • Nestle India is rising as its board of directors considers a proposal to split its shares, each with a face value of Rs 10. It is also considering a second interim dividend for 2023. The stock shows up in a screener for companies with zero promoter pledges.

  • Polyplex Corp rises as promoters plan to sell a 24.3% stake in the company to its investor, AGP Holdco, for Rs 1,188.9 crore.

  • Pranjul Bhandari, the Chief India Economist at HSBC Securities & Capital Markets (India), says that the current macro environment doesn't favour emerging markets. She notes that the RBI will be cautious about risks. She adds that any change in inflation or growth forecasts by the RBI is not likely.

  • IDFC First Bank's board of directors approves a floor price of Rs 94.9 per share for its qualified institutional placement worth Rs 3,000 crore.

  • Bajaj Finance reports a 33% YoY rise in assets under management (AUM) to Rs 2.9 lakh crore in Q2FY24. This growth is driven by an improvement in new loans booked and deposits. The company appears in a screener of stocks where foreign institutional investors have increased their shareholdings.

  • HDFC Bank's total gross advances (excluding eHDFCL non-individual loans) rise 17.6% YoY to Rs 23,32,800 crore in Q2FY24, while deposits increase by 18.2% YoY to Rs 21,73,000 crore.

  • Siddharth Vasudevan, Managing Director of Vascon Engineers, forecasts a 20% YoY growth in its order book in FY24. He notes that the company’s current order book stands at Rs 2,400 crore, with government projects accounting for 70-75% of the total. He believes the company’s order book will reach close to Rs 4,000 crore.

  • Updater Services’ shares debut on the bourses at a 5% discount to the issue price of Rs 300. The Rs 640 crore IPO has received bids for 2.9 times the total shares on offer.

  • Larsen & Toubro falls despite its power business arm winning an order worth Rs 1,000-2,500 crore from Power Development Corp. The order is for setting up wet flue gas desulphurization systems at the Sagardighi thermal power plant.

  • Rail Vikas Nigamrises as it bags an order worth Rs 444.3 crore from Himachal Pradesh State Electricity Board. The order involves the development of distribution infrastructure for the north zone of the state. The company appears in a screenerof stocks with strong momentum.

  • Titagarh Rail Systemsbags a contract worth Rs 857 crore from the Gujarat Metro Rail Corp to design, manufacture, test and commission 72 standard gauge cars for the Surat Metro Rail project phase-1.

Riding High:

Largecap and midcap gainers today include Adani Wilmar Ltd. (352.80, 5.82%), Avenue Supermarts Ltd. (3,872.95, 3.95%) and Adani Enterprises Ltd. (2,464.95, 3.25%).

Downers:

Largecap and midcap losers today include JSW Energy Ltd. (418.90, -5.35%), Macrotech Developers Ltd. (750.10, -4.85%) and Vodafone Idea Ltd. (11.45, -4.58%).

Movers and Shakers

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

Top high volume gainers on BSE included Adani Wilmar Ltd. (352.80, 5.82%), Avenue Supermarts Ltd. (3,872.95, 3.95%) and The Ramco Cements Ltd. (951.60, 3.78%).

Top high volume losers on BSE were Prince Pipes & Fittings Ltd. (679.30, -2.04%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,560.90, -0.60%).

Mangalore Refinery And Petrochemicals Ltd. (97.85, 2.46%) was trading at 11.5 times of weekly average. HEG Ltd. (1,791.25, 3.27%) and Timken India Ltd. (3,088.50, 0.66%) were trading with volumes 10.4 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks took off, crossing 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - Bajaj Finance Ltd. (7,854.05, -1.43%), Bank of India (110.00, -2.48%) and Bank of Maharashtra (48.85, -1.31%).

Stocks making new 52 weeks lows included - V-Mart Retail Ltd. (1,969.05, -1.23%) and Adani Total Gas Ltd. (610.70, -0.01%).

7 stocks climbed above their 200 day SMA including Adani Enterprises Ltd. (2,464.95, 3.25%) and Fine Organic Industries Ltd. (4,908.00, 0.88%). 9 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (979.50, -4.08%) and Gujarat Fluorochemicals Ltd. (2,845.00, -3.21%).

 
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The Baseline
03 Oct 2023
India’s PLI schemes: Is the government’s vision for boosting business a dream or a mirage?
By Abhiraj Panchal

The great hope of the Indian government’s much-celebrated Production Linked Incentive (PLI) schemes is to build powerful, globally competitive businesses across Indian industries Launched as part of the Atmanirbhar Bharat campaign, the PLI scheme hopes to make India a manufacturing powerhouse, through incentives for sales of domestically manufactured products. It encourages both domestic and foreign producers to expand or establish …

PremiumThis is a premium article. Click here to read.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Oct 2023
Market closes lower, Bajaj Auto's total wholesales decline by 1% YoY in September

Trendlyne Analysis

Nifty 50 closed at 19,528.75 (-109.6, -0.6%), BSE Sensexclosed at 65,512.10 (-316.3, -0.5%) while the broader Nifty 500closed at 17,254.40 (-38.2, -0.2%). Market breadth is balanced. Of the 1,985 stocks traded today, 931 were in the positive territory and 1,000 were negative.

Indian indices closed in the red, with the Nifty 50 closing at 19,528.8 points. The Indian volatility index, Nifty VIX, rose by 3% and settled at 11.8 points. The World Bank projected India’s GDP growth to moderate to 6.3% in FY24 from 7.2% in FY23, citing slower global growth and increasing price pressures. It also projected that the headline inflation will average at 5.9% in FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed up, despite the benchmark settling in the red. Nifty PSU Bank and Nifty Media closed higher than their Friday close. According to Trendlyne's sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day as it rose 2%.

Major European indices traded flat or lower, except for England’s FTSE 100 index trading up. However, all major Asian indices closed in the red. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded higher after falling 1.8% on a volatile day on Monday.

  • Money flow index (MFI) indicates that stocks like Tata Investment Corp, Gujarat Ambuja Exports, ITI and Union Bank of India are in the overbought zone.

  • Hero MotoCorp is falling despite its total wholesales in September rising by 3.2% YoY to 5.4 lakh units, driven by its motorcycle and scooter sales increasing by 2.9% and 6.3% YoY, respectively. The stock shows up in a screener for companies with high TTM EPS growth.

  • Metro Brands surges more than 10% to touch its all-time high of Rs 1,293 per share. It ranks high on Trendlyne's checklist with a score of 59.1. Trendlyne's Forecaster expects its revenue to grow by 18.9% YoY in FY24. According to Forecasters, the company has a 'Buy' rating from nine out of 14 analysts.

  • PSU Banks like Union Bank of India, Bank of Maharashtra, Punjab National Bank, Indian Bank and Bank of India are rising in trade. All the constituents of the broader index, Nifty PSU Bank, are also trading in the green.

  • HDFC Securities maintains its ‘Reduce’ rating on FSN E-Commerce Ventures (Nykaa) with a target price of Rs 130. This implies a downside of 14.4%. The brokerage cites the firm’s limited monetizing capabilities excluding advertising income for a pessimistic outlook on its prospects.

  • CLSA upgrades its rating on Vedanta to 'Outperform' but slashes the target price to Rs 230. The brokerage believes that the company's plan to demerge into six different entities won't affect operations. This will allow the parent company to bring in strategic investors and reduce its debt burden.

  • Plaza Wires' Rs 71.3 crore IPO gets bids for 20.8X the available 95 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 92.5X the available 13.2 lakh shares on offer.

  • Valiant Laboratories' Rs 152.5 crore IPO gets bids for 12.4X the available 76.2 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 9.4X the available 38.1 lakh shares on offer.

  • Escorts Kubota is falling as its total monthly tractor wholesales in September decrease by 11.2% YoY to 10,871 units, caused by an 11.2% YoY degrowth in domestic wholesales. However, its construction equipment sales improve by 51.8% YoY. The stock shows up in a screener for companies with improving net cash flow over the past two years.

  • The World Bank anticipates India’s GDP growth to moderate to 6.3% in FY24 from 7.2% in FY23, citing slower global growth, increasing price pressures and weaker base effects. It also projects that the headline inflation will average at 5.9% in FY24.

  • Tata Motors is falling despite its total wholesales in September rising by 2% YoY to 84,381 units. This growth is led by 12% YoY growth in commercial vehicle sales. But its passenger vehicle sales have fallen by 5% YoY. In Q2FY24, total wholesales grew by 2% YoY, driven by 4% YoY growth in commercial vehicle sales.

  • Man Industries rises to an all-time high of Rs 196.7 as it bags an order worth approx Rs 400 crore from a domestic customer. The order involves the supply of different types of pipes. The company appears in a screener of stocks with improving book value per share.

  • KPI Green Energyis rising as its captive power producer segment bags orders from Shree Parmeshwar Steel and Vivan Steels to produce solar power projects of 4 MW and 3 MW capacity respectively.

  • Rajesh Sharma, MD & CEO of Capri Global Capital, expects a positive Q2 and an even more favourable H2 for the company due to branch expansion. The company plans to open 150 new locations in the following months. He sees solid traction in loans and good collection efficiency and adds that the passing on of higher borrowing costs to clients has not dampened demand.

  • Manoj Vaibhav Gems N Jewellers’ shares make a flat debut on the bourses at Rs 215. The Rs 270 crore IPO has received bids for 2.3 times the total shares on offer.

  • Ambadi Enterprises and Murugappa & Sons, promoters of Tube Investments of India, each sell a 1% stake in the company. They now hold a 45.1% stake each in the company.

  • NMDC rises as it announces iron ore price hike, effective from October 1. The price of both lump ore and fines has been raised by Rs 250 to Rs 5,200 per tonne and Rs 4,460 per tonne, respectively. It appears on a screener for stocks with strong momentum.                           

  • India’s manufacturing PMI drops to a 5-month low of 57.5 in September from 58.6 in August due a softer increase in new orders. The PMI reading, however, stays above the 50-mark for the 27th consecutive month, indicating an expansion in manufacturing activity.

  • Advent International makes changes to the management of Suven Pharmaceuticals after acquiring a 50.1% stake in the company. Advent appoints Vaidheesh Annaswamy, Vetukuri Venkata Naga Kali Vara Prasada Raju and Sudhir Kumar Singh as Executive Chairman, Managing Director (MD) and Chief Executive Officer, respectively. Venkateshwarlu Jasti resigns from the post of MD.

  • NCC is rising as it announces bagging three new projects worth Rs 4,205.9 crore in September. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Bajaj Auto is falling as its total wholesales decline by 1% YoY to 3.9 lakh units in September. The downturn is due to its two-wheeler sales decreasing by 6% YoY. However, its commercial vehicle wholesales improve by 40% YoY, aided by growth in domestic sales.

  • Indian rupee depreciates 17 paise to Rs 83.21 from the previous close of Rs 83.04 against the US dollar, due to a stronger dollar and a surge in US bond rates, which soared to multi-year highs after the US avoided a possible government shutdown.

  • Maruti Suzuki India's September wholesales rise by 2.8% YoY to 1.8 lakh units. This muted growth is attributed to a decline in wholesales in the mini and passenger cars segments. Its total domestic wholesales and exports increase by 2.5% and 5.2% YoY respectively.

  • JSW Infrastructure’s shares debut on the bourses at a 20.2% premium to the issue price of Rs 119. The Rs 2,800 crore IPO has received bids for 37.4 times the total shares on offer.

  • Kalpataru Projects International rises as it bags orders worth Rs 1,016 crore. This includes a power transmission and distribution order worth Rs 552 crore in India and overseas, and a building and factories order worth Rs 464 crore in India. The company appears in a screener of stocks with strong momentum.

  • Rail Vikas Nigamis rising as it emerges as the lowest bidder, quoting Rs 1,097.7 crore, at an auction held by the Himachal Pradesh State Electricity Board. The auction is for developing electricity distribution infrastructure in the state and is expected to be completed in 24 months.

Riding High:

Largecap and midcap gainers today include Union Bank of India (112.10, 5.46%), Max Healthcare Institute Ltd. (592.80, 4.48%) and Indian Bank (441.30, 4.19%).

Downers:

Largecap and midcap losers today include Oil And Natural Gas Corporation Ltd. (184.60, -3.78%), Gujarat Fluorochemicals Ltd. (2,939.30, -3.63%) and Adani Power Ltd. (366.70, -2.85%).

Volume Rockets

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

Top high volume gainers on BSE included Metro Brands Ltd. (1,265.40, 12.36%), KIOCL Ltd. (329.10, 8.60%) and Mahanagar Gas Ltd. (1,109.10, 7.80%).

Top high volume losers on BSE were Gujarat Fluorochemicals Ltd. (2,939.30, -3.63%), Siemens Ltd. (3,569.65, -2.80%) and Esab India Ltd. (4,951.95, -2.17%).

Kalpataru Projects International Ltd. (649.90, 2.91%) was trading at 31.4 times of weekly average. PNB Housing Finance Ltd. (742.30, 6.94%) and Jyothy Labs Ltd. (368.65, 2.26%) were trading with volumes 18.2 and 11.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks made 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Bayer Cropscience Ltd. (5,436.00, 1.79%), Canara Bank (384.45, 2.18%) and Cholamandalam Investment & Finance Company Ltd. (1,253.80, 2.98%).

Stock making new 52 weeks lows included - Adani Total Gas Ltd. (610.75, -0.41%).

13 stocks climbed above their 200 day SMA including Heidelberg Cement India Ltd. (191.65, 7.04%) and Vinati Organics Ltd. (1,878.70, 1.75%). 6 stocks slipped below their 200 SMA including Gujarat Fluorochemicals Ltd. (2,939.30, -3.63%) and Adani Enterprises Ltd. (2,387.25, -1.10%).

 
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The Baseline
29 Sep 2023
Five Interesting Stocks Today

1. Lupin:

This pharmaceuticals company hit its 52-week high of Rs 1,184.7 on Friday. It has increased by 5.7% in the past month, outperforming its industry. During the month, the company acquired five legacy brands and their associated trademark rights from Menarini for Rs 101 crore. It has also proposed transferring its two active pharmaceutical ingredients (API) manufacturing sites at Dabhasa and Visakhapatnam to its arm, Lupin Manufacturing Solutions, for which it expects to get Rs 750-850 crore. 

In early September, Lupin inked a deal with Mark Cuban Cost Plus Drug Company to improve healthcare accessibility in the US by expanding the availability of tiotropium bromide inhalation powder. In addition, the firm’s arm acquired the entire stake in French pharmaceutical company Medisol for 14.5 million euros. 

In Q1FY24, Lupin reported a net profit of Rs 452.3 crore, as against a loss of Rs 89.1 crore in Q1FY23 (beating Trendlyne Forecaster’s estimate by 84%). Its revenue also increased by 29% (beating estimates by 6.8%), thanks to strong sales growth in India, North America, and EMEA. The company also features in a screener for stocks with good quarterly growth in the recent results. The management expects the company’s robust pipeline of products, such as gSpiriva and diazepam gel, and other key launches like Prolensa to drive earnings growth in FY24 and beyond. 

Axis Securities recommends a ‘Buy’ call on Lupin on the back of new product launches, double-digit growth in its India business, and an improving API business. The brokerage believes that the company’s margin has scope for improvement in the coming quarters as its margins at 13% are still below the industry average of 22%.

2. NBCC: 

Thisconstruction & engineering firm has been making headlines with its recent announcement of selling its property in New Delhi's World Trade Centre for Rs 5,716 crore through an e-auction. It has also secured orders worth Rs 2,000 crore from the Kerala Housing Board. In the past week, the company touched its 52-week high of Rs 63.6 following an order win worth Rs 150 crore from the Khadi & Village Industries Commission. As of September 2023, the company’s order book stands at Rs 45,000 crore. According toTrendlyne Technicals, the company's stock price surged by 15% in the past month. However, the stock’s long-term price change remains volatile. 

NBCC’sQ1FY24 net profit stands at Rs 75.1 crore, as compared to a net loss of Rs 6.3 crore in Q1FY23. However, its revenue growth of 6.6% YoY missed expectations due to weakened performance in the PMC segment and a drop in real estate sales. As a result, the company's EBITDA margin in Q1FY24 fell by 32 bps YoY to 3.2%, primarily driven by increased input costs.

Despite these setbacks, the management is targeting a revenue of Rs 9,000 crore (Rs 8,961 crore in FY23) for FY24. It also expects order inflows ranging from Rs 11,000 crore to Rs 12,000 crore, including an expected Rs 8,000 crore order from Amrapali Housing. NBCC aims to monetise its remaining unsold inventory of Nauroji Nagar (Rs 5,400 crore) and Sarojini Nagar (Rs 1,300 crore), targeting a total of Rs 5,300 crore in FY24. 

Geojit projects that the speed at which NBCC monetises its real estate assets in redevelopment projects will be crucial for top-line growth. The brokerage also believes that tendering activities will continue to play a key role in unlocking revenue potential in the near future.

3. Procter & Gamble Hygiene & Healthcare: 

This personal products company has risen by 4.6% in the past week, following an analyst call on September 22. The stock touched its all-time high of Rs 18,597.9 per share on Friday, helping it enter a screener of stocks with high momentum scores. This uptick is on the back of the management projecting healthy growth in the rural segment. 

Currently, the urban segment accounts for almost 65% of the company’s total revenue, while the rural segment contributes less than 35%. The firm’s management aims to increase sales of brands like Whispers and Vicks Vaporub in the rural segment through educational drives and awareness campaigns. LV Vaidyanathan, Managing Director of the company, said, “We expect mid-single-digit volume growth over the next four to five years, with net profit outpacing revenue growth.” 

Motilal Oswal Financial Services maintains its ‘Neutral’ rating on the stock with a target price of Rs 16,940 per share, after the analyst call. This indicates a potential downside of 5.6%. The brokerage believes the company has an attractive long-term outlook, aided by growth in the feminine hygiene segment and improvement in profitability through premiumisation. However, in the near term, its valuations are high, which explains the downside target. It expects the company’s net profit to grow at a CAGR of 14.3% over FY22-25. Trendlyne’s Forecaster also expects its revenue and net profit to grow by 18.6% and 22.1%, respectively, in FY24.

4. Multi Commodity Exchange of India (MCX): 

This commodity derivatives exchange surged over 8% intraday on Thursday, touching a new 52-week high on Friday. The spike comes after MCX announced a new commodity derivatives platform set to launch on October 3. The platform, which was previously handled by 63 Moons, will be serviced by TCS. MCX dominatesthe commodity derivatives space with a 96% market share and an average daily turnover of approximately Rs 80,000 crore. 

However, a curveball from SEBI on Friday proposes to put the new platform’s launch on hold, causing the stock to tumble by over 2%. The company will continue mock tests while waiting for further directions from SEBI. 

MCX’s share price has risen by 17.2% over the past week till Friday, ahead of the launch. This has helped the company turn up in a screener of stocks with prices above short, medium and long-term moving averages.

HDFC Securities is optimistic about MCX’s growth prospects, citing increased trading volumes and new product launches. It also expects profitability to improve as the company shifts to the new platform, which will cut software support costs. The brokerage maintains its 'Buy' rating and raises the target price by 34.8% to Rs 2,400. 

In Q1FY24, MCX's net profit declined by 52.5% YoY to Rs 19.7 crore due to increased software support charges and product license fees. However, Its revenue grew by 34% to Rs 145.8 crore during the same period, led by an improvement in ADT (average daily turnover) of options contracts. According to Trendlyne’s Forecaster, MCX’s revenue is expected to grow by 14.9% in FY24. 

5. Triveni Turbine:

This turbine manufacturer touched its 52-week high of Rs 456.6 on Thursday and rose by 6.7% from Monday till Friday. This rally comes on the back of a healthy business outlook, driven by increasing demand for energy turbines in domestic and international markets. The company commands a market share of 60% in India’s industrial steam turbine segment. The management is optimistic about achieving strong order inflows in FY24. It expects this growth to be driven by rising exports and aftermarket business (sales of parts and services).

In Q1FY24, Triveni Turbines’ revenue from exports grew by 88% YoY, making up 48% of its overall revenue. The share of exports increased by 11 percentage points YoY. This robust growth trajectory of exports is expected to continue as the company focuses on expanding its sales network and supply chain. According to Trendlyne’s Forecaster, the firm’s revenue and net profit are expected to grow by 34.6% and 37.7% YoY in FY24, respectively. It also shows up in a screener for companies with improving net cash flow over the past two years.

Notably, the company already has the capacity to meet growing demand, eliminating the need for major capex in the coming quarters. Sharekhan expects the firm’s margins to improve on the back of falling raw material costs and a growing aftermarket business. It adds that the firm has no debt and a healthy cash balance of Rs 747 crore, which makes it well-placed to expand into newer markets. The consensus recommendation on the stock from five analysts is ‘Buy’, with four recommending a ‘Strong Buy’ and one calling for a ‘Buy’. 

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
29 Sep 2023
Market closes higher, Plaza Wires' IPO gets bids for 4.7X of the available shares

Trendlyne Analysis

Nifty 50 closed at 19,638.30 (114.8, 0.6%) , BSE Sensex closed at 65,828.41 (320.1, 0.5%) while the broader Nifty 500 closed at 17,292.60 (122.2, 0.7%), of the 1,917 stocks traded today, 1,262 were gainers and 602 were losers.

Indian indices maintained the gains from the afternoon session and closed in the green, with the Nifty 50 closing at 19,638. The volatility index, Nifty VIX, dropped by 10.7% and closed at 11.5 points. Ashok Leyland bags an order for 1,282 fully built buses from the Gujarat State Road Transport Corporation (GSRTC).

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty PSU Bank and Nifty Healthcare closed higher than Thursday’s closing levels. According to Trendlyne’s sector dashboard, pharmaceuticals & biotechnology emerged as the top-performing sector of the day, with a rise of over 2.6%.

Most European indices trade in the green. US indices futures trade higher indicating a positive start. The data released by Eurostat indicated that the Eurozone CPI inflation for September declined to 4.3% against estimates of 4.5%. The CPI inflation for August stood at 5.2%.

  • Relative strength index (RSI) indicates that stocks like Tata Investment Corp, Gujarat Ambuja Exports, Multi Commodity Exchange of India and Sunteck Realty are in the overbought zone.

  • UNO Minda rises as its board approves the acquisition of an additional 26% stake in its subsidiary, Minda Westport Tech. The acquisition amounts to Rs 14.8 crore, post which UNO Minda's stake will increase to 76%. With this acquisition, the firm aims to include hydrogen & natural gas components and kits for the territory of South Asia. The company appears in a screener of stocks with improving RoCE.

  • Ashok Soota, Chairman of Happiest Minds Technologies, sells a 0.9% stake in the company for approx Rs 115.4 crore in a bulk deal on Thursday.

  • Sharekhan keeps its ‘Buy’ rating on Balrampur Chini Mills and raises the target price to Rs 495 from Rs 425. This implies an upside of 13.3%. The brokerage believes the rising sugar prices and increasing production of ethanol provide earning visibility for the near term. It expects the firm’s net profit to grow at a CAGR of 48% over FY23-25.

  • NLC India is rising as it signs a power purchase agreement with Grid Corp of Odisha for 800 MW.  The company will also be setting up three 800 MW coal-based thermal power plants in the state. The stock shows up in a screener for companies with book value increasing over the past two years.

  • Hindustan Zinc surges more than 5% as it authorises the board of directors to evaluate value unlocking measures. Under these measures, the company plans to create separate legal entities to undertake the zinc & lead, silver and recycling businesses of the company.

  • Telecom equipment, internet & catalogue retail, housing finance and paper & paper products industries rise more than 4% over the past week.

  • Abu Dhabi-based International Holding Co (IHC) decides to offload its stake in Adani Green Energy and Adani Energy Solutions. This move is part of the company's plans to rebalance its overall portfolio.

  • Plaza Wires' Rs 71.3 crore IPO gets bids for 4.7X of the available 95 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 26.5X the available 13.2 lakh shares on offer.

  • Valiant Laboratories' Rs 152.5 crore IPO gets bids for 2.2X of the available 76.2 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 3.1X the available 38.1 lakh shares on offer.

  • Federal Bank rises as the Reserve Bank of India (RBI) grants approval to the International Finance Corporation (IFC) for acquiring an aggregate holding of up to 9.7% of the bank's paid-up share capital or voting rights. It appears on a screener for stocks with strong momentum.

  • Foreign institutional investors sell stocks worth Rs 4,603.4 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 37,660.6 crore from foreign investors.

  • Phoenix Millsfalls as its subsidiaries, Offbeat Developers, Market City Resources, and others, receive a show cause-cum-demand notice from GST authorities for Rs 9.2 crore. The notice stems from an investigation into tax liability discrepancies in May 2023. The company appears in a screenerof stocks with declining net profit and margins.

  • According to reports, 10.8 lakh shares (0.14% equity) of IndusInd Bank, amounting to Rs 152.3 crore, change hands in a large trade.

  • Motilal Oswal initiates coverage on Global Health with a ‘Buy’ rating and a target price of Rs 840, implying an upside of 17.4%. The brokerage is optimistic about the company’s prospects due to its execution capabilities, strong brand recall and growth visibility for the near future. It expects the company’s revenue to grow at a CAGR of 14.1% over FY23-25.

  • Sterling and Wilson Renewable Energy rises as it receives an order worth Rs 1,535 crore from NTPC REL in Khavda, Gujarat, for a 300 MWac EPC project with a time frame of three years. It appears in a screener for stocks with increasing net profit and profit margin (QoQ).

  • Godrej Agrovet is rising as it signs a strategic partnership agreement with Sime Darby Plantation Berhad to secure the supply of palm oil seeds and set up a palm oil seed plant in India.

  • Emami is rising as it acquires a 26% stake in Axiom Ayurveda (which houses the beverages brand AloFrut). With this acquisition, the company will foray into the juice category.

  • Pharmaceutical stocks like Glenmark Pharmaceuticals, Aurobindo Pharma, Dr. Reddy’s Laboratories, Lupin and Torrent Pharmaceuticals are rising in trade. The broader sectoral index, Nifty Pharma, is also trading in the green.

  • Ashok Leyland rises as it bags an order for 1,282 fully built buses from the Gujarat State Road Transport Corporation (GSRTC). The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • Larsen & Toubro’s heavy civil infrastructure business, L&T Construction, wins an order worth Rs 5,000-7,000 crore from the Mumbai Metropolitan Region Development Authority. The project involves the design and construction of twin road tunnels.

  • Macquarie forecasts robust revenue growth in the cement industry on the back of solid demand. The brokerage maintains a 'Neutral' rating on ACC with an upgraded target price of Rs 2,128. It gives an 'Outperform' rating to UltraTech Cement and Ambuja Cement, while maintaining a 'Neutral' rating on Shree Cements.

  • YES Bankacquires 1.8 crore shares of YES Securities at an average price of Rs 55.7 per share, amounting to Rs 100 crore.

  • Multi Commodity Exchange of India plunges more than 5% as SEBI halts the launch of MCX's Commodity Derivatives Platform due to technical issues.

  • Tube Investments of India declines more than 2% as 20 lakh shares (1% equity), amounting to Rs 586 crore, reportedly change hands in a large trade.

  • Tamilnad Mercantile Bank's Managing Director and Chief Executive Officer Shri S Krishnan resigns citing personal reasons, with effect from Thursday.

  • Likhitha Infrastructure is rising as it bags an order worth Rs 156 crore from Bharat Petroleum. The project involves the laying of a pipeline. The stock shows up in a screener for companies with zero promoter pledges.

  • Saregama India rises as it acquires a 51.8% stake in Pocket Aces for Rs 174 crore. The company plans to acquire another 41% stake over the next 15 months. It appears in a screener of stocks with no debt.

  • Navin Fluorine International's Managing Director (MD), Radhesh Welling, tenders resignation with effect from December 15, citing personal reasons. Executive Chairman Vishad Mafatlal will lead the operations of the company until the board appoints a new MD.

Riding High:

Largecap and midcap gainers today include Vedanta Ltd. (222.55, 6.82%), Hindalco Industries Ltd. (492.65, 5.53%) and JSW Energy Ltd. (437.40, 5.02%).

Downers:

Largecap and midcap losers today include Tube Investments of India Ltd. (2,988.30, -3.72%), Adani Green Energy Ltd. (987.15, -2.50%) and Adani Enterprises Ltd. (2,413.90, -2.48%).

Volume Rockets

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

Top high volume gainers on BSE included Glenmark Pharmaceuticals Ltd. (855.50, 10.11%), Sun TV Network Ltd. (612.15, 5.58%) and NLC India Ltd. (134.95, 5.35%).

Top high volume losers on BSE were Navin Fluorine International Ltd. (3,766.70, -13.56%), Tube Investments of India Ltd. (2,988.30, -3.72%) and Multi Commodity Exchange of India Ltd. (2,049.70, -2.23%).

Eris Lifesciences Ltd. (876.30, 3.08%) was trading at 32.8 times of weekly average. Emami Ltd. (538.45, 5.02%) and Sheela Foam Ltd. (1,141.65, 0.05%) were trading with volumes 6.3 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks made 52 week highs, while 3 stocks hit their 52 week lows.

Stocks touching their year highs included - Aurobindo Pharma Ltd. (914.35, 4.66%), Coal India Ltd. (295.20, 1.72%) and Lupin Ltd. (1,171.25, 3.37%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (142.70, 1.39%) and Navin Fluorine International Ltd. (3,766.70, -13.56%).

12 stocks climbed above their 200 day SMA including Grindwell Norton Ltd. (2,078.65, 3.80%) and Radico Khaitan Ltd. (1,206.00, 2.77%). 10 stocks slipped below their 200 SMA including Navin Fluorine International Ltd. (3,766.70, -13.56%) and Adani Enterprises Ltd. (2,413.90, -2.48%).

 
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The Baseline
29 Sep 2023
By Akshat Singh

There are two popular ways to generate returns from stocks: capital appreciation through share price growth, and dividends. Investing in dividend-paying stocks gives you a share of a company’s profits through regular cash payments. Such high-dividend stocks serve as reliable sources of income. 

The dividend yield, expressed as a percentage, indicates the annual dividend payment relative to the stock’s current price. The significance of the dividend yield for a company lies in its ability to attract and retain investors for longer. A higher dividend yield boosts  the stock’s appeal, especially for investors seeking steady income, such as retirees.

It's important to note that the dividend yield isn't a static figure; it changes as the stock price fluctuates. A falling stock price can inflate the dividend yield, a factor investors need to consider when analysing this metric. 

In this edition of Chart of the Week, we will look into sectors with the highest 1-year dividend yield, and the top three high-yield companies in each sector over the past year. The full high dividend screener is here.

Vedanta tops the list with a dividend yield of 30.7% 

The metals & mining sector has the highest dividend yield of 5.2%. Companies with the highest dividend yield in this sector are Vedanta, Hindustan Zinc and National Aluminium Company with 30.7%, 19.8% and 4.8% respectively. 

Though Vedanta tops the list, its outsize dividend yield can be attributed to a 20% drop in its stock price over the past year. This shows how a plummeting share price can push up yields. 

Vedanta chose to distribute a substantial dividend of Rs 101.5 per share to its shareholders to meet its holding company's financial obligations and debt repayments. This massive payout set a new record for the company. 

Moving on to the Zinc major, Hindustan Zinc (HZL), its share price increased by 9.9%. Vedanta holds a 65% stake in HZL as of June 2023. The company’s cash equivalents stood at Rs 10,061 crore in FY23, compared to borrowings of Rs 11,841 crore. 

Frequent dividend payouts, with Vedanta being the biggest beneficiary, have transformed HZL from a net-cash company to a net-debt one.

Meanwhile, the utilities sector had an overall dividend yield of 2.4% in FY23. The top dividend-paying stocks in this sector are Power Grid Corporation, CESC and NHPC, offering yields of 5.6%, 4.9% and 3.6%, respectively. All three companies saw their share prices rise by at least 15% in the past year.

Analysts expect IT companies’ high dividend payouts to continue in FY24

Next comes the software & services sector with an average dividend yield of 2.3% in the past year. The top performers in this sector are Oracle Financial Services Software (OFSS), HCL Technologies, and Tata Consultancy Services with yields of 5.4%, 3.8% and 3.2%, respectively. 

OFSS’ stock price rose by 39% in the past year, and Trendlyne’s Forecaster estimates its dividend yield to increase by 10 bps to 5.5% in FY24. Dolat Analysis reports that OFSS increased its dividend to Rs 225 per share for FY23, up from Rs 190 in FY22. This marks a payout of 118% of its free cash flow. This is in line with the company’s seven-year historical average of paying out over 97% of its FCF (free cash flow). The brokerage remains optimistic about OFSS' ability to sustain these high payouts.

HCL Technologies saw a 41% surge in its stock price over the past year but did not issue any special dividends. Overall, all three companies have managed to post high dividend yields despite their share prices rising sharply in the past year. 

Tobacco giant outperform peers in their sector

Next up, we have the food, beverage & tobacco sector with a dividend yield of 2.2% in the past year. The stand-out companies in this sector are Godfrey Phillips, Godrej Agrovet, and EID Parry (India) with yields of 3.5%, 2.1% and 1.7% respectively. The tobacco major, Godfrey Phillips, saw its share price increase by 81% during the same period. Trendlyne’s Forecaster estimates an 80 bps rise in its dividend yield to reach 2.9% in the next year. 

In this sector, two companies, Godrej Agrovet and EID Parry (India), have seen their stock prices fall by 7.8% and 4.8%, respectively, in the past year.

Windfall taxes disrupt oil & gas sector 

Finally, we have the oil & gas sector with a dividend yield of 1.4% in the past year. Companies in the lead are Oil India, Oil and Natural Gas Corporation (ONGC) and Castrol India, with yields of 7.2%, 6% and 4.6% respectively.

Oil India’s stock price surged by 51.8% in the past year but Trendlyne’s Forecaster estimates that the dividend yield will remain unchanged at 7.2% next year. However, the company’s financials may face headwinds due to escalating windfall taxes and a decline in the prices of domestically produced, administered price mechanism (APM) gas. Such a cut in APM gas prices could further reduce the company’s revenue realisation.

ONGC is another company affected by windfall taxes. Despite this, its stock price surged by 44.5% over the past year. This spike can be attributed to the company’s acquisition and processing of cheaper Russian oil, which it then exports to different countries, thereby increasing its sales volume. Trendlyne’s Forecaster estimates its dividend yield to rise by 130 bps to 7.4% by next year. 

Castrol India also rose by 23.3% during the same period. Trendlyne’s Forecaster estimates a 30 bps increase in its dividend yield to 5% in the next year. According to Motilal Oswal, Castrol India maintains a dividend payout policy that exceeds 70% of net profit, translating into a dividend yield of around 4-5%.

Among the stocks that made it to the list, Vedanta, Godrej Agrovet and EID Parry’s (India) share prices fell in the past year. 

It’s worth keeping in mind that there are many reasons for companies to pay out dividends. While some aim to distribute profits back to shareholders, others might do so due to lack of significant expansion plans. Additionally, public sector companies are obligated to pay dividends to their shareholders.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
28 Sep 2023
Market closes lower, Motilal Oswal maintains its ‘Buy’ rating on Kajaria Ceramics

Trendlyne Analysis

Nifty 50closed at 19,523.55 (-192.9, -1.0%), BSE Sensexclosed at 65,508.32 (-610.4, -0.9%) while the broader Nifty 500closed at 17,170.45 (-171.2, -1.0%). Market breadth is in the red. Of the 1,925 stocks traded today, 722 were in the positive territory and 1,153 were negative.

Indian indices fell from their day highs and closed in the red, with the Nifty 50closing at 19,526.6 points. The Indian volatility index, Nifty VIX, rose sharply by 10.7% and closed at 12.8 points. RBI’s data showed India’s current account deficit (CAD) widening QoQ to $9.2 billion in Q1FY24, making up 1.1% of the GDP.

Nifty Smallcap 100 and Nifty Midcap 100 closed down, taking cues from the benchmark index. Nifty Metal and Nifty Media closed over 1% lower than their Wednesday’s close. According to Trendlyne's sector dashboard, Forest Materials was the top-performing sector of the day in a weak market.

Major European indices pared their gains from open and traded in the red. Asian indices closed flat or lower, except for Taiwan’s TSEC 50 Index closing in the green. US index futures traded down, indicating a negative start to the trading session. Brent crude oil futures traded lower after rising 2% on Wednesday.

  • Money flow index (MFI) indicates that stocks like Tata Investment Corp, Gujarat Ambuja Exports, Varroc Engineering and Apar Industries are in the overbought zone.

  • KSB is rising as it bags an order worth Rs 55 crore from Nuclear Power Corp of India to supply vertical safety class pumps.

  • Coforge is falling as it receives an income tax demand of Rs 82.9 crore for FY20, including an interest liability of Rs 25.7 crore. The company shows up in a screener for companies in the 'Sell' zone.

  • Cholamandalam Investment and Finance Co rises to an all-time high of Rs 1,249.5 following reports of its plan to raise Rs 2,000 crore through qualified institutional placements (QIP). The floor price for the QIP is likely to be Rs 1,160-1,180. The company appears in a screener of stocks with improving RoE.

  • According to Anarock, home sales in India's top seven cities reached an all-time high of 1,20,280 units from July to September. It notes that the sales have increased by 36.3% compared to 88,230 units sold during the same months in 2022.

  • Valiant Laboratories' Rs 152.5 crore IPO gets bids for 0.7X of the available 76.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.3X the available 38.1 lakh shares on offer.

  • Oberoi Realty is falling despite entering into an agreement to develop a 13,450 square-meter plot in Mumbai. The company shows up in a screener for stocks with book value per share improving over the past two years.

  • Valiant Laboratories' Rs 152.5 crore IPO gets bids for 0.6X of the available 76.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1X the available 38.1 lakh shares on offer.

  • Barbeque-Nation Hospitality falls despite signing a joint agreement with its subsidiary, Red Apple, to acquire a 53.3% stake in Blue Planet Foods for Rs 39,844 per share, totalling for Rs 23.1 crore. With this acquisition, the company plans to expand offerings in its a-la-carte restaurants segment. It appears in a screener of stocks with low debt.

  • Happiest Minds Technologies declines more than 3% as 15.5 lakh shares (1% equity), amounting to Rs 138 crore, reportedly change hands in a large trade.

  • HDFC Securities keeps its 'Buy' rating on Multi-Commodity Exchange of India (MCX) and raises the target price to Rs 2,400 from Rs 1,780. This implies a 15.7% upside. The brokerage expects the company to grow due to increased trading volumes and new products. It also expects profitability to improve as the company shifts to a new software platform, which will lead to a sharp reduction in software support charges.

  • CE Info Systemssurges more than 7% to touch its all-time highof Rs 2,108.9 per share. It ranks high on Trendlyne's checklist with a score of 59.1%. However, the company is in the 'Sell' zone. It appears on a screenerof stocks with the biggest price gains since the open.

  • As per RBI data, India’s current account deficit (CAD) widens QoQ to $9.2 billion in Q1FY24, making up 1.1% of the GDP. It also highlights a YoY decline in net FDI inflow, which now stands at $5.1 billion.

  • Rane (Madras)rises as it approves setting up an arm in Mexico to manufacture steering and linkage auto components catering to customers in Mexico and North American Region.

  • Promoters Fortitude Trade & Investment and Emerging Market Investment buy a 1.7% and 0.5% stake, respectively, in Adani Power from September 5 to September 25.

  • Motilal Oswal maintains its ‘Buy’ rating on Kajaria Ceramicswith a target price of Rs 1,580. This implies an upside of 18.5%. The brokerage believes the company is well-placed to benefit from the real estate upcycle due to its extensive distribution network, higher advertising spending and healthy balance sheet. It expects the company’s net profit to grow at a CAGR of 26% over FY23-26.

  • Tech stocks like Tech Mahindra, Persistent Systems, LTIMindtree and Infosys are falling in trade. All constituents of the broaderNifty IT index are trading in the red.

  • Reliance Jio gains 39.1 lakh wireless subscribers in July on a net basis, while Bharti Airtel adds 15.2 lakh. Vodafone Idea's subscribers continue to decline, with a loss of 13.2 lakh users on a net basis.

  • Dixon Technologies rises to its 52-week high of Rs 5,378.8 per share as its subsidiary Padget Electronics enters an agreement with Xiaomi. The agreement is to manufacture Xiaomi mobiles in the company's manufacturing facility in Noida.

  • Gensol Engineering rises as its EV-focused leasing solutions arm wins an order for over 500 Tata Ace Cargo EVs. The order is valued at Rs 75 crore.

  • Yatra Online’s shares debut on the bourses at a 10.2% discount to the issue price of Rs 142. The Rs 775 crore IPO has received bids for 1.6 times the total shares on offer.

  • Ajit Venkataraman, Chief Executive Officer of Finolex Industries, says that demand is strong but rainfall has led to a temporary slowdown. He expects the fittings business to rise by up to 15% and the pipes business to increase by over 10%. He also mentions that the company's non-agricultural segment is outpacing industry growth, expanding at a rate of 15%.

  • HLE Glasscoat's promoters Nilesh Patel, Himanshu Patel and Harsh Patel sell 1.5%, 1.5% and 0.7% stake in the company respectively in a block deal on Wednesday.

  • ICICI Lombard General Insurance is falling as the Directorate General of GST Intelligence issues a show cause-cum-demand notice to the company for not paying Rs 1,728.9 crore in taxes.

  • NBCCrises as it announces the sale of a commercial space in New Delhi's World Trade Centre for Rs 5,716 crore. The area offered for sale is 14.8 lakh square feet and will be sold through an e-auction. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • PNC Infratech is rising as it submits an eligible dispute to the National Highways Authority of India under the government's Vivad se Vishwas II scheme for Rs 259.1 crore. The company will also receive interest at a rate of 9% per annum on this amount until it receives an acknowledgement from the parties concerned.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (46.35, 3.00%), FSN E-Commerce Ventures Ltd. (153.15, 2.72%) and PB Fintech Ltd. (760.00, 2.32%).

Downers:

Largecap and midcap losers today include Berger Paints (India) Ltd. (569.55, -5.66%), Tech Mahindra Ltd. (1.229.50, -4.59%) and Hindustan Zinc Ltd. (297.95, -4.20%).

Volume Rockets

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

Top high volume gainers on BSE included Multi Commodity Exchange of India Ltd. (2,096.55, 8.24%), C.E. Info Systems Ltd. (2,037.70, 7.41%) and Finolex Cables Ltd. (1,195.55, 6.73%).

Top high volume losers on BSE were Hindustan Zinc Ltd. (297.95, -4.20%), Happiest Minds Technologies Ltd. (872.95, -4.15%) and United Breweries Ltd. (1,540.20, -2.40%).

TeamLease Services Ltd. (2,593.80, 0.02%) was trading at 14.1 times of weekly average. Oil India Ltd. (292.25, 1.65%) and Global Health Ltd. (715.10, 2.92%) were trading with volumes 8.1 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks made 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Cholamandalam Investment & Finance Company Ltd. (1,219.80, 1.79%), Coal India Ltd. (290.20, -0.46%) and Finolex Cables Ltd. (1,195.55, 6.73%).

Stocks making new 52 weeks lows included - Gujarat Gas Ltd. (414.95, -1.41%) and Vedanta Ltd. (208.35, -0.31%).

3 stocks climbed above their 200 day SMA including Crompton Greaves Consumer Electricals Ltd. (305.75, 2.24%) and Avenue Supermarts Ltd. (3,665.00, 0.67%). 19 stocks slipped below their 200 SMA including Happiest Minds Technologies Ltd. (872.95, -4.15%) and Honeywell Automation India Ltd. (39,141.20, -3.42%).

 
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The Baseline
28 Sep 2023
The West and Asia are approaching inflation differently
By Shreesh Biradar

In a world where inflation is rising during a growth slowdown, central banks face a challenge. The only tool they really have to beat rising prices? Interest rates. 

As many countries face weak growth and recession risks, global central banks are pulling interest rates in different directions. In US, UK, India and the EU, inflation has fallen from its peak but is still above the target. Trade wars and surging oil prices haven’t helped: tensions with China, the world’s biggest exporter are high, while OPEC+ countries are driving oil prices up as they try to boost their revenues. 

Rising inflation increases costs for people, and takes a big bite out of their savings.

In this environment, there are no easy answers. Central banks are divided: Western powerhouses like the US and Europe are raising interest rates to tame sticky inflation. In contrast, China and Japan are bringing down their interest rates to boost growth.

Countries like Pakistan (22% interest rate), Hungary (14%) and Brazil (12.8%) have kept interest rates high, while Japan (-0.1%), China (3.5%), and South Korea (3.5%) are at the lower end of the spectrum.

Japan sees the lowest interest rates among global peers

The Reserve Bank of India (RBI) is walking a tightrope, keeping interest rates high while trying to prioritize growth. Meanwhile, both the US and EU are hiking rates even as the possibility of a recession increases. 

In this week’s Analyticks:

  • The global divide: Central banks differ on interest rates amid slowdown worries 
  • Screener: Stocks with increasing debt levels as interest rates rise

Let’s get into it.

US Fed embraces "higher for longer" interest rate policy

The US Federal Reserve Bank has embraced a "higher for longer" approach to interest rates. In just 15 months, the Fed has hiked interest rates to a 22-year high of 5.5%, the fastest increase in a short time. But the hike has not led to the much-hoped-for drop in inflation, which stood at 3.7% in August. This is quite above the Fed’s target of 2%.

Interest rates rise at the fastest pace in 2022 than any other time in US history

The recent spike in inflation puts the Fed in a tricky position, giving it limited room to further increase interest rates. Still, the Fed has hinted at one more rate hike before the end of 2023. 

US inflation spikes in the past three months, prompting Fed’s hawkish stance

The Fed has opted for higher interest rates rolled out over a longer period, rather than aggressive hikes at one go. It hopes to prevent a recession with this strategy, and achieve a soft landing for the US economy. Federal Reserve Chairman Jerome Powell said, “While some factors are beyond central banks’ control, the US economy has a good chance of a soft landing.” 

Will things go as Powell planned, or is a crash landing on the horizon? So far at least, the US economy has been resilient, with higher-than-expected GDP growth (revised upward from 1% to 2.1% in 2023) and higher consumer spending despite rate hikes. But some analysts are predicting a recession in 2024, as unemployment rises.

European Central Bank sticks to high-interest rates, despite recession signals in its largest economy 

With an inflation rate of approximately 5.2% in August, down from a peak of 10.6% in October 2022, the European Central Bank (ECB) is struggling to bring inflation down to its target of 2% in the Eurozone. The ECB foresees consumer inflation hitting 3.2% by the end of 2023, with the 2% target expected to be met only in 2025. The prices of natural gas and crude inching above $90 is contributing to sticky inflation.

Eurozone inflation remains stubbornly high

While the ECB has signalled one more rate hike in 2023, politicians, investors and industries are pushing for a pause. European countries, including Germany, the largest economy, are seeing a slowdown and a drop in industrial production.

European countries’ manufacturing PMI declines

Germany faces declining manufacturing output due to rising interest rates. Germany’s manufacturing PMI for August was at 39.8 (35 in Covid times), the lowest among developed economies.

Japan fuels growth through ultra-loose monetary policy 

Japan’s prolonged deflation (with a 30-year historical average inflation of below zero) made growth difficult to sustain. So the recent spike in inflation is not such bad news here, and has provided an opportunity to boost the economy. The Bank of Japan is capitalizing on this trend and has maintained its interest rates at a low -0.1%.

Nikkei 225 hits a 30-year high amid high inflation and low interest rates

The ultra-loose policy has led to a rally in the country's stock markets, to a 30-year high. Although inflation peaked around 4.3% in January 2023, it has softened to around 3.2% over the past five months. 

Facing slow growth, China opts for rate cuts 

After decades of growth, China's post-Covid slowdown has its central bank scrambling to cut rates. The People’s Bank of China slashed its loan prime rate by 10 bps to 3.45% in August. China’s GDP is expected to grow at 4.8% in 2023, lower than initial estimates of 5.6%. Trade wars and rising fuel costs have put a damper on China's economic momentum. 

China’s weak GDP growth has prompted lower interest rates

Adding to these challenges is the growing debt problem in China's real estate sector. Industry participants are asking for both financial stimulus and rate cuts to prevent the problem from worsening.

India stands out in balancing interest rates, inflation, and growth

India’s inflation shot up to 6.8% in August from 4.9% in June 2023, mainly due to a surge in vegetable prices. However, these rates are expected to decline in the coming quarters owing to a favorable monsoon.

India’s inflation stays within RBI's target range of 2%-6%

The Reserve Bank of India (RBI) projects inflation will settle around 5.4% in 2023. Since this would be within the RBI’s 2-6% target range, the bank is not hiking rates - yet. An expected GDP growth rate of 6.5% for the year has given the RBI some room to relax, for now.

Globally, rising crude prices, ongoing trade wars, and high government spending have led to sticky inflation.Central banks seem to be leaning towards maintaining high interest rates for longer periods, and hiking more slowly. It remains to be seen if a growth slowdown will force central bankers like the US Fed to be more cautious about hikes, or if they will keep going, as JP Morgan CEO Jamie Dimon suggests, all the way to 7%.

Screener: Stocks with increasing debt levels as interest rates rise

Rising interest rates tend to make debt a bigger burden for businesses.This screener shows stocks that have a total debt-to-equity ratio greater than 1,  and increasing interest expenses YoY In FY23. It also highlights stocks where Forecaster expects growing interest expenses in FY24. 

The list comprises 25 stocks from the Nifty 500 and three from the Nifty 50 indices, featuring sectors like electric utilities, refineries/petro-products, hotels and telecom services.

Major stocks in the screener are Adani Green Energy, Tata Telecommunications, Adani Energy Solutions, Hindustan Petroleum Corp, Lemon Tree Hotels and Bharti Airtel.

Adani Green Energy reported a revenue growth of 41.3% in Q1FY24. Its net profit also grew by 50.5% to Rs 322 crore, backed by lower operating expenses. However, Adani companies are known for their high debt levels, and this one is no exception. The firm’s interest expense tripled due to debt-backed expansion. Adani Green Energy plans to reach its installed capacity of 25,000 MW in 2025, up from 8,216 MW currently. Most of the new projects will be backed by debt, which can worsen interest expenses for the firm.

Hindustan Petroleum Corp’s revenue grew by 10.3% QoQ to Rs 1.2 lakh crore in Q1FY24. Its net profit also improved by 87.5% QoQ to Rs 6,765.5 crore, compared to a loss in Q1FY23. This oil & gas company achieved an operating profit margin of 8.1% during the quarter. This was aided by a decline in the cost of raw materials due to an 8.7% decrease in Brent crude oil prices to $72.7 per barrel.

Lemon Tree Hotels reported a 69.4% YoY increase in net profit to Rs 23.5 crore in Q1FY24. Its revenue also improved by 15.7% YoY to Rs 222.2 crore, aided by higher gross average room rate (ARR), more revenue per available room (RevPAR), and increased occupancy. The firm has been on an expansion spree and recently signed two new properties in Bhubaneshwar and Kasauli. These properties are expected to be operational by FY25 and FY26, respectively. The firm’s asset-light model through franchised hotels is expected to accelerate its growth with lower capex. 

You can find more screeners here.


 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Sep 2023, 04:01PM
Market closes higher, JSW Infrastructure's IPO gets bids for 13.3X of the available shares

Trendlyne Analysis

Nifty 50closed at 19,716.45 (51.8, 0.3%), BSE Sensexclosed at 66,118.69 (173.2, 0.3%) while the broader Nifty 500closed at 17,341.60 (64.9, 0.4%). Market breadth is in the green. Of the 1,920 stocks traded today, 1,065 were in the positive territory and 812 were negative.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50closing at 19,716. The volatility index, Nifty VIX, rose by 3.6% and closed at 11.6 points. According to Jefferies, the forthcoming ICC World Cup is expected to drive up hotel prices and airline fares by 150% and 80%, respectively, in cities hosting matches.  

Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed flat, following the benchmark index. Nifty PSU Bank and Nifty Healthcare closed higher than Tuesday’s closing levels. According to Trendlyne’s sector dashboard, telecommunications equipment emerged as the top-performing sector of the day, with a rise of over 1.6%.

Most European indices trade in the green, except for England’s FTSE 100 trading flat. US indices futures trade higher as the US Senate voted to begin debate on a bill to secure short-term funding for the government to avert an impending federal shutdown. The Senate bill would keep the government funded till November 17.

  • Relative strength index (RSI) indicates that stocks like Sundaram Finance, Tata Investment Corp, Apar Industries and Gujarat Ambuja Exports are in the overbought zone.

  • Manappuram Finance rises as the Kerala High Court directs the Enforcement Directorate to release all documents related to the firm's frozen properties. This is in relation to the money laundering case registered against the company's MD and CEO, V P Nandakumar. The company appears in a screener of stocks with high TTM EPS growth.

  • HLE Glasscoat rises as DSP Mutual fund acquires a 3.5% stake (24 lakh shares) at an average price of Rs 505 per share, amounting to Rs 121.2 crore.

  • ICICI Securities downgrades its rating on Strides Pharma Science to ‘Reduce’ from ‘Hold’, citing expensive valuation. However, it raises the target price to Rs 495 from Rs 460, which implies a downside of 5.1%. The brokerage expects the firm’s focus on its contract development and manufacturing organisation (CDMO) business to drive growth.

  • Vedanta falls over 6% as Moody's Investors Service downgrades its parent company's (Vedanta Resources) senior unsecured bonds to Caa3 from Caa2. The rating agency indicates a high chance of debt restructuring in the coming months.

  • Valiant Laboratories' Rs 152.5 crore IPO gets bids for 0.3X of the available 76.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.6X the available 38.1 lakh shares on offer.

  • Updater Services' Rs 640 crore IPO gets bids for 2.9X of the available 1.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 1.4X the available 22.3 lakh shares on offer.

  • JSW Infrastructure's Rs 2,800 crore IPO gets bids for 37.4X the available 13.6 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 10.3X the available 2.5 crore shares on offer.

  • Nuvama Institutional Equities expects HDFC Bank, Trent, Power Grid Corpand Shriram Finance, among others, to receive strong inflows following NSE index changes. The semi-annual reshuffling of the index is scheduled for Friday.

  • Procter & Gamble Health rises as it closes the production of injections in its Goa plant, planning to outsource the manufacturing. The facility in Goa contributed 8.4% to the company's revenue in FY23. The company appears in a screener of stocks with improving RoCE.

  • Pharmaceutical and Healthcare stocks like Granules India, Aurobindo Pharma, Laurus Labs, Glenmark Pharmaceuticalsand Lupinare rising in trade. Barring Abbott India, all the other constituents of the broader sectoral index, Nifty Healthcare, are trading in the green.

  • Apollo Hospitals Enterprises rises as its subsidiary Apollo Multispeciality Hospital acquires a partially built 325-bed hospital for Rs 102 crore in Sonapur, Kolkata. The company appears in a screener of stocks with low debt.

  • According to a Reuters poll, India's GDP is expected to grow 6.2% in FY24, making it the fastest-growing major economy. A 6.3% growth is projected for FY25.

  • Prataap Snacks is falling as the GST Authority conducts a search and seizure at the company's manufacturing unit in Bangalore. The company emphasizes that the search did not affect its operations at the manufacturing plant.

  • BoB Capital Markets maintains its ‘Buy’ rating on Tata Steeland raises the target price to Rs 155 from Rs 145. This implies an upside of 21.5%. The brokerage cites the decarbonisation of the firm’s plant in the UK for raising the target price. It believes this transition can sharpen competitiveness and improve profitability.

  • Shares of Sai Silks (Kalamandir) debut on the bourses at a 4.1% premium to the issue price of Rs 231. The Rs 1,201 crore IPO has received bids for 4.4 times the total shares on offer.

  • Morgan Stanley expects robust FY25 revenue growth for IT companies and believes that rising margins and double-digit EPS growth will keep valuations afloat. The brokerage keeps an 'Equal-weight' rating on TCS with an upgraded target price to Rs 3,730. For Infosys and HCL Technologies, it gives an 'Over-weight' rating. Meanwhile, the brokerage maintains its 'Under-weight' rating on Wipro.

  • Shares of Signatureglobal (India) debut on the bourses at a 15.3% premium to the issue price of Rs 385. The Rs 730 crore IPO has received bids for 11.9 times the total shares on offer.

  • Aditya Birla Fashion & Retail is rising as it signs a share purchase agreement with TCNS Clothing to acquire an additional 22% stake in the company for Rs 685 crore. This takes the company's holding in TCNS to 51%.

  • Vaibhav Global falls despite its subsidiary, Shop TJC, entering into a definitive agreement to acquire Mindful Souls for €12 million (approx Rs 105.4 crore). This acquisition enables the company to venture into the subscription-based fashion business. The company appears in a screener of stocks with low debt.

  • Jasbir Singh, Chairman & CEO of Amber Enterprises India, forecasts Rs 1,000 crore earnings next fiscal year from the new JV between the company's arm ILJIN Electronics (India) and Nexxbase Marketing (the 'Noise' brand). He expects double-digit growth in the wearable and hearable market after FY25. He also states that the use of new capabilities will increase to 60-65%.

  • Valiant Laboratories raises Rs 45.7 crore from anchor investors ahead of its IPO by allotting around 32.7 lakh shares at Rs 140 each. Investors include Leading Light Fund VCC – The Triumph Fund, Saint Capital Fund and Negen Undiscovered Value Fund.

  • Shree Renuka Sugars is rising as it enters a share purchase agreement with Anamika Sugar Mills to acquire a 100% stake in the company for a cash consideration of Rs 235.5 crore.

  • Century Textiles & Industriesis rising as its subsidiary, Birla Estates, sells out phase-1 of Birla Trimaya with a total booking value of Rs 500 crore. The company features in a screenerof stocks with improving return on capital employed (RoCE) over the past two years.

  • REC signs a memorandum of understanding (MoU) with Punjab National Bank to co-finance loans worth Rs 55,000 crore. The loans will be for projects in the power, infrastructure and logistics segments over the next three years.

Riding High:

Largecap and midcap gainers today include Power Finance Corporation Ltd. (249.65, 6.51%), REC Ltd. (284.35, 6.38%) and Schaeffler India Ltd. (3,250.15, 5.84%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (209.00, -6.70%), Tube Investments of India Ltd. (3,099.40, -2.57%) and Gujarat Gas Ltd. (420.90, -2.57%).

Movers and Shakers

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

Top high volume gainers on BSE included HLE Glasscoat Ltd. (557.80, 9.82%), C.E. Info Systems Ltd. (1,897.05, 6.95%) and Borosil Renewables Ltd. (435.95, 6.12%).

Top high volume losers on BSE were Vedanta Ltd. (209.00, -6.70%) and Eureka Forbes Ltd. (496.95, -0.14%).

Jindal Worldwide Ltd. (389.00, 6.07%) was trading at 7.8 times of weekly average. HFCL Ltd. (75.95, 6.08%) and Great Eastern Shipping Company Ltd. (856.20, 0.60%) were trading with volumes 5.1 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks hit their 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Coal India Ltd. (291.55, 1.67%), Colgate-Palmolive (India) Ltd. (2,050.40, -0.85%) and Federal Bank Ltd. (150.55, 1.83%).

Stocks making new 52 weeks lows included - Gujarat Gas Ltd. (420.90, -2.57%) and Vedanta Ltd. (209.00, -6.70%).

7 stocks climbed above their 200 day SMA including Radico Khaitan Ltd. (1,200.50, 2.62%) and Godrej Consumer Products Ltd. (999.90, 2.17%). 4 stocks slipped below their 200 SMA including Rallis India Ltd. (209.40, -2.65%) and Bharat Dynamics Ltd. (1,024.60, -0.96%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Sep 2023, 03:56PM
Market closes flat, Poonawalla Fincorp receives approval from the RBI

Trendlyne Analysis

Nifty 50 closed at 19,664.70 (-9.9, -0.1%) , BSE Sensex closed at 65,945.47 (-78.2, -0.1%) while the broader Nifty 500 closed at 17,276.75 (4.2, 0.0%), of the 1,933 stocks traded today, 912 were on the uptrend, and 982 went down.

Indian indices closed flat with the benchmark Nifty 50 index closing at 19,664.7 points. The Indian volatility index, Nifty VIX, rose 2.7% and closed at 11.2 points. GR Infraprojects fell 3.6% after National Highways Logistics Management (NHLML) annulled the bidding process for two projects worth Rs 3,613 crore won by the company.

Nifty Smallcap 100 outperformed the benchmark index and closed in the green, while the Nifty Midcap 100 closed marginally lower. Nifty Metal and Nifty Realty settled higher than their Monday close. According to Trendlyne's sector dashboard, Telecom Services was the top-performing sector of the day as it rose 0.9%.

Major European indices traded in the red, except for England’s FTSE 100 index trading marginally higher. Major Asian indices closed flat or lower. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures extended losses from Monday and traded lower.

  • Dabur India sees a short buildup in its September 28 future series as its open interest rises 21% with a put-call ratio of 0.4.

  • Healthcare equipment & supplies, oil & gas and pharmaceuticals & biotechnology sectors fall by more than 2.5% over the past week.

  • Rail Vikas Nigam is falling despite bagging an order worth Rs 311.2 crore from Central Railway. The project involves the construction of tunnels, bridges and a side-drain retaining wall. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • P. Radhakrishnan, Whole-time Director & CEO of Kesoram Industries, says the company maintains its FY24 volume target of eight metric tonnes, with an EBITDA of about Rs 650 per tonne. He further highlights that the firm may consider hiking prices by Rs 30-40 per cement bag in South India and Rs 50 per bag in the west in early October of this year.

  • Updater Services' Rs 640 crore IPO gets bids for 0.2X of the available 1.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.7X of the available 22.3 lakh shares on offer.

  • JSW Infrastructure's Rs 2,800 crore IPO gets bids for 2.1X the available 13.6 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 4.5X the available 2.5 crore shares on offer.

  • Manoj Vaibhav Gems N Jewellers' Rs 270 crore IPO gets bids for 2.3X the available 91.2 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 1.7X the available 45.8 lakh shares on offer.

  • Sun Pharma Advanced Research rises as it incorporates a bio-pharmaceutical arm SPARCLIFE Inc. in Delaware, US, for $50,000. The company will engage a team of professionals to coordinate, review and monitor the global clinical trials through various CROs in the US.

  • Goldman Sachs maintains its ‘Buy’ rating on Larsen & Toubro with an upgraded target price of Rs 2,830. The brokerage expects the company to deliver robust YoY growth in its order inflow, and a double-digit growth in net income in Q2FY24.

  • Suven Pharmaceuticals rises following approval from the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, for its acquisition by Berhyanda, Cyprus. Berhyanda is set to acquire a 50.1% shareholding from the company's promoter. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • IT stocks like Mphasis, Coforge, Tech Mahindra, Persistent Systemsand Infosysare falling in trade. All the constituents on the broader sector index, Nifty IT, are also trading in the red.

  • Axis Direct keeps its ‘Buy’ rating on Steel Strips Wheels and raises the target price to Rs 325 from Rs 240, implying an upside of 15.7%. The brokerage believes growth will be driven by rising export demand, an increasing share of alloy wheels and an improving balance sheet. It expects the company’s net profit to grow at a 17% CAGR over FY23-26.

  • Poonawalla Fincorp is rising as it receives approval from the Reserve Bank of India (RBI) to issue co-branded credit cards with IndusInd Bank. This partnership will aid the NBFC to venture into the retail credit segment.

  • HSBC maintains its 'Buy' rating on Maruti Suzuki India with an upgraded target price of Rs 12,000. The brokerage says that the company's market share has peaked in the short run, but believes that the introduction of more hybrid models could further increase it in the medium term. HSBC also anticipates that the company may not achieve its annualised growth target of 10% within seven years.

  • Vishnu Prakash R Punglia rises as its Q1FY24 net profit increases by 52.5% YoY to Rs 16.4 crore due to a fall in inventory cost. Revenue also rises by 49.6% YoY. The company appears in a screener of stocks with annual net profits improving for the past two years.

  • GR Infraprojects is falling as National Highways Logistics Management (NHLML) annuls the bidding process for two projects worth Rs 3,613 crore won by the company. The projects are for the development, operation and maintenance of ropeways in Uttarakhand.

  • Welspun Corp is rising as its subsidiary, Sintex BAPL, signs a memorandum of understanding (MoU) with the government of Telangana to set up a manufacturing unit in the state. The expected capex of the project is Rs 350 crore, with an initial investment of Rs 50 crore for land and infrastructure in FY24. The manufacturing facility will be used to produce a mix of PVC pipes and fittings.

  • Eicher Motors is rising as Jefferies maintains its 'Buy' rating but raises the target price to Rs 4,150. According to the brokerage, the company has been impacted by growing competition concerns in 2023, but believes that it is a favourable time to 'Buy' as competitive concerns are easing. It expects the company's EBITDA to increase by 62% over FY23-26.

  • Century Textiles rises as it enters into a joint venture with M S Ramaiah Realty to develop a 52-acre land parcel in North Bangalore under phase-1 of Birla Trimaya. The project is expected to have a revenue potential of Rs 3,000 crore. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • Wipro sells its 20-year-old building (non-strategic immoveable property) at Chennai’s IT corridor of Sholinganallur to Casagrand Bizpark in a deal worth Rs 266.4 crore.

  • Metal stocks like JSW Steel, Tata Steel, Hindalco Industries, Jindal Steel & Power, NMDC and National Aluminium Co are rising in trade. All constituents of the broader sectoral index, BSE Metal, are trading in the green.

  • Voltamp Transformers declines more than 3% as 13 lakh shares (12.9% equity), amounting to Rs 603.5 crore, change hands in a large trade, according to reports.

  • D B Realty is set to acquire stakes in three hotels, Bamboo Hotel Global Centre, Goan Hotels & Realty and BD & P Hotels for Rs 2,300 crore. These deals are related party transactions and are done at an arm’s length basis. The company believes these acquisitions will enable it to enter into the hospitality sector.

  • Sheela Foam rises as its board approves raising Rs 1,200 crore by qualified institutional placements. The company will allot 1.1 crore shares at an average price of Rs 1,078 per share. It appears in a screener of stocks with low debt.

  • Ashish Kacholia sells a 0.6% stake in Delta Corp for approx Rs 21.7 crore in a bulk deal on Monday

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (12.10, 7.08%), Varun Beverages Ltd. (967.55, 4.49%) and JSW Energy Ltd. (439.90, 4.45%).

Downers:

Largecap and midcap losers today include Shriram Finance Ltd. (1,884.60, -3.13%), 3M India Ltd. (30,952.60, -2.34%) and Union Bank of India (99.70, -2.30%).

Volume Shockers

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

Top high volume gainers on BSE included Cochin Shipyard Ltd. (1,087.75, 10.63%), Deepak Fertilisers & Petrochemicals Corporation Ltd. (653.20, 5.76%) and Uflex Ltd. (468.70, 5.53%).

Top high volume losers on BSE were HLE Glasscoat Ltd. (507.90, -12.80%), AstraZeneca Pharma India Ltd. (4,413.95, -3.90%) and Muthoot Finance Ltd. (1,236.80, -1.94%).

KRBL Ltd. (417.85, 3.75%) was trading at 8.6 times of weekly average. Eureka Forbes Ltd. (496.15, -1.63%) and Great Eastern Shipping Company Ltd. (851.10, 3.44%) were trading with volumes 6.7 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks took off, crossing 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Coal India Ltd. (286.75, -0.45%), Colgate-Palmolive (India) Ltd. (2,067.90, 3.27%) and Great Eastern Shipping Company Ltd. (851.10, 3.44%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (140.40, -1.68%) and Gujarat Gas Ltd. (432.00, -1.21%).

8 stocks climbed above their 200 day SMA including Uflex Ltd. (468.70, 5.53%) and Bharat Dynamics Ltd. (1,034.50, 4.36%). 3 stocks slipped below their 200 SMA including Adani Enterprises Ltd. (2,457.95, -0.97%) and Avenue Supermarts Ltd. (3,633.60, -0.83%).