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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
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
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%).

 
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The Baseline
26 Sep 2023
Five analyst picks this week
By Satyam Kumar

1. HDFC Bank: 

ICICI Securities maintains its ‘Buy’ rating on this private bank with a target price of Rs 2,000. This implies an upside of 30.3%. Analysts Jai Prakash Mundhra, Chintan Shah, Renish Bhuva and Vaibhav Arora remain optimistic about the bank's prospects after its analyst conference on September 18. The highlight of the conference was that the NIMs and net worth of the merged entity (HDFC Bank and HDFC) will fall due to the need for additional liquidity, to increase the liquidity coverage ratio. The analysts expect the bank’s NIM to stabilise after Q2FY24 as the merger has resulted in higher non-performing assets. 

Despite short-term performance challenges, the analysts believe the bank's key growth drivers for the medium to long term are intact. They add, “We believe HDFC Bank has given reasonable clarity on the movement of net worth and related matters. The mobilisation of retail deposits and NIM trajectory are likely to be key drivers for the stock price.” They expect the bank’s net profit to grow at a CAGR of 15.9% over FY23-25. 

2. PNC Infratech: 

ICICI Securities maintains a 'Buy' rating on this roads and highways company with a target price of Rs 460, indicating an upside of 25%. Analyst Bhupendra Tiwary is upbeat about PNC's robust execution capabilities, supported by modern equipment and an in-house team for timely project delivery.

Tiwary highlights PNC's healthy order book, now at Rs 18,900 crore after adding new projects worth Rs 4,083 crore. It suggests strong revenue visibility. He expects inflows of about Rs 10,000 crore in FY24, driven by road projects, resulting in an estimated revenue CAGR of 13.5% from FY23-25. He also foresees internal accruals funding equity requirements, supported by the company's strong cash flow generation. As of Q1FY24, PNC maintains a net debt-to-equity ratio of 0.17X.

The analyst notes that the company is in talks with potential investors to monetize its assets, including 12 projects, aiming to complete this process by FY24-end. This strategic move is expected to facilitate the company's scalability in the future.

3. GAIL (India): 

Geojit Financial Services upgrades its rating on this utilities company to 'Buy', with a target price of Rs 142. This implies an upside of 15%. Analyst Vinod T P maintains a positive outlook, citing GAIL's substantial infrastructure expansion and improving sequential performance, thanks to a brighter economic outlook.

Vinod points out that a decrease in operational costs and other expenses has helped the company swing from an operating loss of Rs 336 crore in Q1FY23 to an operating profit of Rs 1,797 crore in Q1FY24. He expects GAIL's planned capex of Rs 9,000 crore for FY24—allocated to pipelines, petrochemicals, city-gas distribution, and equity investments—to drive growth. He is also optimistic about GAIL's plans to construct 100 CNG stations and 2 lakh DNPG stations over the next two years.

The analyst believes that GAIL's earnings performance will benefit from increasingly stable prices and consistent global LNG supplies. Vinod notes that the company is well-placed to capitalise on the growing demand for energy, owing to its diverse revenue streams and ongoing infrastructure expansion.

4. Hero MotoCorp: 

Sharekhan maintains a 'Buy' rating on this 2/3-wheeler company with a target price of Rs 3,629, indicating an upside of 22%. Analysts at Sharekhan are optimistic about the company's focus on volume growth, premiumisation, expansion in the electric vehicle (EV) market, and robust festive sales.

They anticipate volume growth in the premium segment, with over 25,000 bookings for the Harley Davidson X 440 and the launch of the Karizma XMR. They believe Hero’s strategic product rollouts in FY24, targeting both the entry-level and premium segments, will elevate the average selling price and attract new customers, particularly with the launch of Hero 2.0 stores.

The analysts say Hero's electric vehicle (EV) strategy is well-defined with a two-pronged approach. The company is building its own brand, VIDA, while also investing in Ather Energy, a rising name in the domestic EV market with new electric scooter launches. Given the healthy uptick in retail sales during Onam and Ganesh Chaturthi, they expect this momentum to persist, particularly during the 42-day festive period in Q3FY24.

5. Tata Steel: 

Prabhudas Lilladher maintains a ‘Buy’ call on this steel manufacturer with a target price of Rs 144, indicating an upside of 13%. Analyst Tushar Chaudhari bases his call on the company’s recently announced proposal to set up an electric arc furnace at its Port Talbot steel-making facility for a capex of 1.3 billion pounds. The UK government will grant 40% of the project cost. Chaudhari believes this move will address market share, competitiveness and substrate import challenges. Tata has also planned further capex over the next three years, subject to relevant regulatory approvals. 

Chaudhari expects Tata Steel’s current cash losses to end, as the company will import substrate instead of producing at its old facilities. He remains optimistic, expecting a fall in energy costs and believes that the volatility of coking coal prices won’t directly affect the company. He revises FY25 EBITDA estimates upwards by 5% to Rs 41,100 crore.

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

(You can find all analyst picks here)

 
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The Baseline
25 Sep 2023
As the relationship grows strained, we look into Canada’s Indian equity investments
By Suhas Reddy

The relationship between India and Canada has taken a surprising, sour turn this month—sparked by accusations over the killing of a pro-Khalistan Canadian citizen and activist. This has upended a historically friendly relationship with strong financial ties between the two countries. Despite the tit-for-tat expulsions of diplomats, and freeze on free-trade agreements and visa services, Canada has a significant investment in India’s stock market, according to NSDL. With Rs 1.77 lakh crore parked in Indian assets, including Rs 1.5 lakh crore in equities, Canada is the seventh-largest player in India's capital markets. 

Canadian Foreign Portfolio Investors (FPIs) have major investments in Indian infrastructure funds, real estate assets, logistical parks, listed entities and unlisted start-ups. 

The two major Canadian investors in Indian equities are Canada Pension Plan Investment Board (CPPIB) and Caisse de dépôt et placement du Québec (CDPQ). At the end of FY23, CPPIB’s portfolio in India was worth over Rs 1.3 lakh crore and held stakes in about 70 listed Indian firms. By the end of 2022, CDPQ’s portfolio in India was worth around $6 billion. 

Canadian Pension Fund optimistic about India’s internet tech firms

Let’s first look into investments (stakes greater than 1%) held by Canadian pension funds in listed Indian companies. CPPIB currently holds over 1% stake each in six stocks, with its biggest investment in terms of value being in Kotak Mahindra Bank. The total holding value of its investments in these six stocks is Rs 16,002.8 crore. It also owns stakes in the US-listed securities of Infosys, Wipro and ICICI Bank. 

CDPQ’s total holding value in listed companies where its stake is greater than 1% stands at Rs 1,123 crore. Its biggest investment in terms of value is Piramal Enterprises, followed by Mahanagar Gas. 

Holding value of large Canadian FPIs decline

The holding value of Canadian FPIs in the Indian equity market in the Indian equity market reduced over the past year. While CPPIB increased its investment in Indian equity at the beginning of FY23, its holding value fell by 17% YoY and 26.7% QoQ. 

CDPQ slashed its Indian market holdings to less than half, marking a cut of 75.3% YoY and 62.7% MoM.

Holding value of Canadian FPI investments in Indian stocks falls YoY

Canadian firms prefer the banking & finance sector 

Canadian firms have preferred the Indian banking & finance sector over the past year. CPPIB’s portfolio heavily leans towards the banking sector (59.4%), followed by software & services (22.2%) and transportation (11.6%). It also has investments in the telecom sector. 

Canadian investments prefer the banking & finance sector  

CDPQ also primarily focuses on banking & finance, accounting for 66% of its Indian portfolio, with additional stakes in utilities (9.5%) and diversified consumer services (8.7%). The firm has also invested in sectors like realty, cement & construction, and pharmaceuticals & biotechnology.

Over the past few years, CPPIB has expressed plans to invest about a third of its portfolio in emerging markets by 2025, with India featuring prominently. Despite current diplomatic tensions, experts reportedly don’t expect a long-term impact on Canadian investments in India. However, any escalation could put pressure on these investors, and the could put pressure on these investors, and the companies where Canadian holdings are significant.

This analysis by Trendlyne is meant for investor education - to help understand companies and make informed investment decisions on their own. It should not be considered an investment recommendation.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Sep 2023
Market closes flat, ICICI Direct maintains its ‘Buy’ rating on PNC Infratech

Trendlyne Analysis

Nifty 50closed at 19,674.55 (0.3, 0%), BSE Sensexclosed at 66,023.69 (14.5, 0.0%) while the broader Nifty 500closed at 17,272.55 (11.8, 0.1%). Market breadth is holding steady. Of the 1,955 stocks traded today, 934 were on the uptick, and 979 were down.

Indian indices pared the gains from the afternoon session and closed flat, with the Nifty 50closing at 19,675. The volatility index, Nifty VIX, rose by 2.2% and closed at 10.9 points. Karnataka Bank approves the raising of Rs 1,500 crore through preferential issue, rights issue, and qualified institutional placements.

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

Most European indices trade in the red. US indices futures trade lower as US lawmakers are attempting to find a resolution to an ongoing budget stand-off ahead of October 1. The federal government is set to run out of funding for its operations on this date, which would force a shutdown.

  • Money flow index (MFI) indicates that stocks like Blue Star, KSB, ITI and Gujarat Ambuja Exports are in the overbought zone.

  • Palm Shelter Estate Development, promoter of Chalet Hotels, buys a 0.2% stake in the company on Friday. It now holds 3.9% of the company.

  • ICICI Securities maintains its 'Add' rating on Balkrishna Industries with an upgraded target price of Rs 2,669 per share. This indicates a potential upside of 4.9%. The brokerage believes that the revival in tyre exports in the agriculture segment and lower inflation in the US will help the company improve its profitability. It expects the company's revenue to grow at a CAGR of 7.7% over FY22-25.

  • ICICI Direct maintains its ‘Buy’ rating on PNC Infratech with a target price of Rs 460, implying an upside of 25.5%. The brokerage is optimistic about the firm’s prospects due to its healthy execution ability, stable margin trajectory and robust order book. It’s positive about the company’s asset monetisation plan, as it would free up capital and drive scalability. It expects the firm’s net profit to grow at a CAGR of 14.3% over FY23-25.

  • The Multi Commodity Exchange of India (MCX) rises over 7% in trade and touches a new 52-week high today. Reports suggest that it is set to introduce a new technology platform, serviced by TCS, from October 1.

  • Indian Metals & Ferro Alloys rises to a new 52-week high of Rs 443.5 as its subsidiary, Utkal Coal, receives Rs 20.7 crore in compensation. The payment is part of the total compensation of Rs 416.7 crore for freehold and leasehold land pertaining to the Utkal 'C' coal mines. The company appears in a screener of stocks with low debt.

  • Updater Services' Rs 640 crore IPO gets bids for 0.1X of the available 1.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X of the available 22.3 lakh shares on offer.

  • JSW Infrastructure's Rs 2,800 crore IPO gets bids for 0.4X the available 13.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.4X the available 2.5 crore shares on offer.

  • The consumer electronics industry anticipates around 18-20% increase in sales during the festive season, which also coincides with the Cricket World Cup. The industry is expected to surpass Rs 70,000 crore sales in FY24, with festive sales contributing around 25-27%.

  • Manoj Vaibhav Gems N Jewellers' Rs 270 crore IPO gets bids for 0.6X the available 91.2 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 0.7X the available 45.8 lakh shares on offer.

  • Religare Enterprisesfalls as Burman Group and others announce an open offer to acquire a 26% stake (9 crore shares) at an average price of Rs 235 per share, amounting to Rs 2,116 crore. After the open offer, Burman Group will own a 53.9% stake in the company. It appears in a screenerof stocks with strong annual EPS growth.

  • S&P Global Ratings maintains its forecast for India's GDP growth for FY24 at 6%, noting a slowing global economy, the threat of below-normal monsoons, and the delayed effect of rate hikes.

  • Sugar companies like Shree Renuka Sugars, EID Parry, Balrampur Chinni Mills and Triveni Engineering & Industries are rising. The broader sugar industry is also trading in the green.

  • Strides Pharma Science rises to a new 52-week high of Rs 539 as its subsidiary, Strides Pharma Global, receives approval from the US FDA for Icosapent Ethyl Capsules in 0.5-gram and 1-gram dosages. The drug is used for the treatment of various cardiovascular conditions and has a market size of $1.3 billion (approx Rs 10,803 crore) in the US. The company appears in a screener of stocks with strong momentum.

  • Life Insurance Corp of India is falling as it receives a notice from the Additional Commissioner State Tax, demanding payment of goods and service tax worth Rs 290.5 crore. The company plans to file an appeal against the order before the GST Appellate Tribunal.

  • Karnataka Bank rises as its board approves the raising of Rs 1,500 crore through preferential issues, rights issues, and qualified institutional placements. The bank will issue 3.3 crore shares on a preferential basis at an average price of Rs 239.5, amounting to Rs 800 crore. It appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • CLSA maintains its 'Buy' rating on Bajaj Finance but raises the target price to Rs 9,500. The brokerage believes that the company's capital-raising efforts will help drive long-term growth and indicate stronger-than-expected medium-term loan growth. It has raised the loan growth forecasts by 2-3 percentage points over the next two years.

  • ICICI Lombard General Insurance Co appoints Sanjeev Mantri as the Managing Director and Chief Executive Officer, with effect from December 1, 2023.

  • Zen Technologies surges more than 5% as it bags an order worth Rs 227.7 crore from the Ministry of Defence.

  • Mahindra & Mahindra Financial Services is rising as it completes the acquisition of the remaining 20% stake in its subsidiary, Mahindra Insurance Brokers, for Rs 206 crore.

  • The Asian Development Bank (ADB) lowers its FY24 GDP forecast for India by 10 bps to 6.4%, citing a slowdown in exports and possible agricultural disruptions due to erratic rainfall patterns.

  • Updater Services raises Rs 288 crore from anchor investors ahead of its IPO by allotting 96 lakh shares at Rs 300 each. Investors include Societe Generale, Citigroup Global, Nomura Singapore, Franklin India, Motilal Oswal and ICICI Prudential Mutual Fund.

  • JSW Infrastructure raises Rs 1,260 crore from anchor investors ahead of its IPO by allotting around 10.6 crore shares at Rs 119 each. Investors include Morgan Stanley, Government of Singapore, Monetary Authority of Singapore, Goldman Sachs, SBI Mutual Fund, Aditya Birla Sun Life Trustee and Nippon Life India.

  • Ircon International falls despite bagging an order worth $14.9 million (approx Rs 122 crore) from Sri Lanka Railways. The project involves the design, installation, testing, commissioning, and certification of signalling and telecommunication systems from Maho Junction to Anuradhapura. The company appears in a screenerof stocks with improving net cash flow.

  • Delta Corp plunges almost 10% to touch its 52-week low of Rs 157.9 per share as the Directorate General of GST Intelligence directs the company to pay a tax liability of Rs 11,139.6 crore.

Riding High:

Largecap and midcap gainers today include Bajaj Finance Ltd. (7,819.85, 4.66%), Trent Ltd. (2,157.05, 4.41%) and Dalmia Bharat Ltd. (2,337.55, 4.09%).

Downers:

Largecap and midcap losers today include Berger Paints (India) Ltd. (611.40, -8.65%), Bank of India (106.55, -2.43%) and APL Apollo Tubes Ltd. (1,542.70, -2.25%).

Movers and Shakers

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

Top high volume gainers on BSE included Indiabulls Real Estate Ltd. (85.65, 9.32%), IRB Infrastructure Developers Ltd. (32.10, 7.72%) and Multi Commodity Exchange of India Ltd. (1,902.30, 6.66%).

Top high volume losers on BSE were Delta Corp Ltd. (142.80, -18.59%), Network18 Media & Investments Ltd. (65.95, -3.09%) and Swan Energy Ltd. (291.45, -2.38%).

Sapphire Foods India Ltd. (1,465.95, -1.21%) was trading at 8.7 times of weekly average. Maharashtra Scooters Ltd. (7,984.80, 5.85%) and Westlife Foodworld Ltd. (982.15, 2.78%) were trading with volumes 7.5 and 5.9 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 were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Balkrishna Industries Ltd. (2,562.35, 0.59%), Blue Star Ltd. (911.70, 1.95%) and Coal India Ltd. (288.05, 1.66%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (142.80, -18.59%) and Gujarat Gas Ltd. (437.30, -0.52%).

5 stocks climbed above their 200 day SMA including Aavas Financiers Ltd. (1,707.00, 3.24%) and Heidelberg Cement India Ltd. (179.00, 1.02%). 8 stocks slipped below their 200 SMA including Radico Khaitan Ltd. (1,158.35, -2.03%) and Bharat Dynamics Ltd. (991.25, -1.30%).

 
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The Baseline
22 Sep 2023
Five Interesting Stocks Today

1.Blue Star:

This air conditioner manufacturer rose by 13.6% over the past week till Friday, as it floated its Qualified Institutional Placement (QIP) to raise up to Rs 1,000 crore. It has set the floor price for the QIP at Rs 784.55 per share, nearly a 2% discount from Monday’s closing price of Rs 800. The management plans to use the capital to fund its capex plans of capacity expansion and also reduce its debt. The company has planned a capex of Rs 750 crore over the next three years, with the major portion of it being executed in FY24 and FY25. It shows up in a screener for stocks in the PE Buy zone with a high Durability score and rising Momentum score. 

With air-conditioner penetration at less than 10% in India, B. Thiagarajan, MD of Blue Star said, “The long-term prospects for the business will continue to be good and we project that for the industry and Blue Star the growth will be at least 10% and 15% respectively in FY24.”

According to ICICI Securities, intense summer conditions and rising affordability will drive robust demand in the industry in the coming years. It also expects the company to gain market share in the coming quarters given its dominant market presence and focus on distribution expansion. According to Trendlyne’s Forecaster, the consensus recommendation from 20 analysts on the stock is a ‘Buy’. 

Although the firm’s largest segment, unitary products (room air conditioners), saw muted revenue growth in Q1FY24 due to unseasonal rains in North India, it still managed to gain market share in the segment. Nikhil Sohoni, CFO of Blue Star noted, “While the summer season impacted room air conditioner sales, we hope that demand will revive in the festive season”. He added, “We are optimistic about the prospects for the rest of the year.”

2. UPL:

This agrochemicals firm is seeing an uptick in demand for its products in North and South America. These regions contributed 20.5% to the company’s overall revenue. In a recent report Citi anticipates that the profitability of United States farmers in CY23 will surpass historical levels. The US Agriculture Department forecasts an increase in soybean production in Latin America during the current fiscal year. Citi adds that prices of generic chemicals are close to bottoming out, and a recovery appears to be on the cards from the first half of 2024. According to Trendlyne Technicals, the stock increased by 5% in the past month.

The company’s Q1FY24 net profit fell by 81.1% YoY to Rs 166 crore and its revenue dropped by 17.2% YoY. The weak set of numbers has driven the stock down by 10.4%  in the past three months. However, management indicated that new products such as Evolution and Feroce are outperforming in the market. The revenue from these differentiated products has risen from 24% to 35% of total revenues in Q1FY24. Looking ahead, the management expects a subdued demand from the domestic market in the near term, especially in Q2FY24, but anticipates a recovery starting in H2FY24.

KR Choksey says that the company's medium-term goal is to reduce net debt, aiming to achieve a Net Debt/EBITDA ratio below one while maintaining an 'investment grade' credit rating. They anticipate that UPL's emphasis on high-growth products like differentiated offerings, specialty chemicals, and seeds will boost market share and drive future revenue growth. 

3. SJVN: 

This electric utilities company has been volatile over the past few trading days. Following an 8.4% rise in share price in two consecutive sessions, SJVN plunged over 13% intra-day on Thursday after Centre’s Power Ministry (representing the President of India, promoter of the company) launched an offer for sale (OFS) to offload up to 4.9% equity stake in the company.  

This comes right after the company’s share price surged 6.6% on Wednesday and touched a new 52-week high, after it signed a MoU with Power Finance Corp for financial assistance of projects worth Rs 1.2 lakh crore. The projects include renewable energy and thermal generation projects to be set up at a total cost of approximately Rs 1.2 lakh crore. 

Despite the sharp fall on Thursday, the company’s share price has risen 30.3% in the past month, following multiple order wins. Earlier this month, the company, through its arm SJVN Green Energy, signed a power purchase agreement with Bhakra Beas Management Board (BBMB) for an 18 MW solar power project. The project is expected to be commissioned by August 2024.

In August, it received an order from Assam Power Development Corp for three solar power projects with a cumulative capacity 320 MW. It features in a screener of stocks that are up by more than 20% over the past month.

JM Financial has a ‘Buy’ rating on SJVN as the brokerage has a positive outlook on India’s hydroelectric power sector. According to Trendlyne’s Forecaster, its revenue is expected to increase by 9% in FY24.  

4. Power Grid Corp of India: 

We have one more electric utilities stock this week. Power Grid rose 2.1% over the past week, outperforming the Nifty 50 index, which fell  2.1% over the same period. It appears in a screener of stocks near their 52-week highs with significant volume. 

This rise comes after Union Power Minister, RK Singh said that India plans to add 25-30 GW of thermal power capacity. This is in addition to the 50 GW expansion which is already under construction. The increase in thermal power capacity is on the back of ever increasing power demand, which reached a record high of 241 GW towards the end of August. 

The company also emerged as the preferred bidder under tariff based competitive bidding (TBCB) to establish an inter-state transmission system project in Rajasthan on September 11. The project is to establish a new 765/400 kV substation along with a static synchronous compensator (STATCOM) at Ramgarh and a 765kV D/C transmission line.

Sharekhan maintained its ‘Buy’ rating on the stock with a target price of Rs 290 per share. The brokerage believes that the company’s orders in hand worth Rs 48,700 crore and a strong order pipeline in the transmission segment will aid in profitability growth. It expects the company’s net profit to grow at a CAGR of 8.6% over FY22-25. It also has a ‘Buy’ consensus from 13 out of 19 analysts tracking the stock.

5. Hindalco Industries: 

This aluminium manufacturer fell 5.9% since its 52-week high of Rs 508.9 on September 14, 2023. It hit a 52-week high after the company inked a partnership agreement with Italy-based Metra SpA to enhance aluminium extrusion and fabrication technology to manufacture Vande Bharat rail coaches. It plans to invest Rs 2,000 crore for the project. Novelis, a subsidiary, signed a contract with Ball Corp to supply aluminium beverage can sheets to Ball’s can-making plants. 

In Q1FY24, Hindalco beat Trendlyne Forecaster’s estimate for net profit by 24.5% despite its profit falling 40.4% YoY to Rs 2,454 crore. Its revenue also fell by 8.3% YoY but beat the estimate by 6.7%. Sales were affected in Q1 due to the destocking of cookware, but the management is optimistic that sales volumes will recover and exceed expectations in Q2 as destocking is almost over, and due to high demand. 

Hindalco’s Silvassa extrusion facility started operations in Q1 and the company is increasing its capacity. Its Aditya Aluminium's cold-rolling facility is also expected to begin by FY25. This will lead to a 50% increase in downstream aluminium capacity by FY25. The aluminium manufacturer has guided a capex of Rs 4,000-4,500 crore for Indian operations for FY24. It has also guided capex for the arm Novelis of $1.6-1.9 billion focusing on increasing greenfield rolling capacity, removing bottlenecks and setting up recycling units.

Geojit BNP Paribas has upgraded Hindalco to a ‘Buy’ on the back of strong domestic demand, volume growth, successful completion of destocking, improved margins, and ambitious expansion projects in the downstream business. The analysts also expect the cost of aluminium and coal prices to decline further in Q2. The company appears in a screener for stocks with brokers upgrading recommendations or target prices in the past three months.

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
22 Sep 2023
Markets closes lower, Lupin acquires five brands from Menarini

Trendlyne Analysis

Nifty 50 closed at 19,674.25 (-68.1, -0.3%) , BSE Sensex closed at 66,009.15 (-221.1, -0.3%) while the broader Nifty 500 closed at 17,260.80 (-42.7, -0.3%), of the 1,898 stocks traded today, 871 were gainers and 986 were losers.

Indian indices pared their gains and settled in the red, with the Nifty 50 falling over 0.3% and closing at 19,674.3 points. The Indian volatility index, Nifty VIX, fell 1.5% and closed at 10.7 points. NCC and J Kumar Infraprojects bagged an order worth Rs 6,301.1 crore through their joint venture. NCC’s share in the JV is 51% which amounts to Rs 3,213.6 crore and J Kumar Infraprojects’ share is 49%, amounting to Rs 3,087.5 crore.

Nifty Smallcap 100 outperformed the benchmark index and closed in the green, while the Nifty Midcap 100 closed marginally flat. Nifty Auto and Nifty PSU Bank closed higher than their Thursday close. According to Trendlyne's sector dashboard, Telecommunications Equipment was the top-performing sector of the day as it rose 3.5%.

Major Asian indices closed in the green, except for India’s BSE Sensex and Japan’s Nikkei 225 closing in the red. US index futures traded up, indicating a positive start to the trading session. Brent crude oil futures traded lower after closing flat on a volatile day on Thursday.

  • Relative strength index (RSI) indicates that stocks like Cholamandalam Financial Holdings, Sundaram Finance, KSB and Sunteck Realty are in the overbought zone.

  • JSW Steel rises as its subsidiary Periama Holding enters into an agreement to sell plant, property, equipment and mineral rights of Caretta Minerals for $24 million (approx. Rs 199 crore). The purchasing entity is West Virginia Properties. The company appears in a screener of stocks nearing 52-week high with significant volumes.

  • Dhampur Sugar Mills Chief Executive Officer, Anant Pande, resigns on Thursday due to personal reasons.

  • Foreign institutional investors sell stocks worth Rs 3,520.7 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 1.1 lakh crore from foreign investors.

  • Jairam Sampath, Whole Time Director and CFO at Kaynes Technology India, expects greater traction in Q3 and Q4 of FY24, with robust momentum expected in FY25. He mentions smart meters as a good prospect for the firm and a developing area. As of July 1, 2023, the company's order book was well over Rs 3,000 crore.

  • Manoj Vaibhav Gems N Jewellers' Rs 270 crore IPO gets bids for 0.1X the available 91.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X the available 45.8 lakh shares on offer.

  • Signatureglobal (India)'s Rs 730 crore IPO gets bids for 11.9X the available 1.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 6.8X the available 19.9 lakh shares on offer.

  • Sai Silks (Kalamandir)'s Rs 1,201 crore IPO gets bids for 4.4X the available 3.9 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 0.9X the available 2 crore shares on offer.

  • NCC and J Kumar Infraprojects are rising as they bag an order worth Rs 6,301.1 crore through their joint venture. NCC’s share in the JV is 51% which amounts to Rs 3,213.6 crore and J Kumar Infraprojects’ share is 49%, amounting to Rs 3,087.5 crore. The project involves the construction and operation of tunnels in Mumbai.

  • Lupin is falling despite acquiring five brands in the gastroenterology, urology and anti-infectives segments from Menarini for a cash consideration of Rs 101 crore. The companies had previously signed an agreement to market these brands in India in July 2021.

  • Zaggle Prepaid Ocean Services’ shares make a flat debut on the bourses, at Rs 164. The Rs 563.4 crore IPO has received bids for 12.6 times the total shares on offer.

  • Samhi Hotels’ shares debut on the bourses at a 6% premium to the issue price of Rs 126. The Rs 1,370.1 crore IPO has received bids for 5.3 times the total shares on offer.

  • Tech Mahindra hits a new 52-week high as it approves the merger of Tech Mahindra Credit Solutions with Tech Mahindra (Americas), a wholly-owned subsidiary of the company. It appears in a screener for stocks with strong momentum.

  • Motilal Oswal maintains its ‘Buy’ rating on Hindalco Industries and raises the target price to Rs 550 from Rs 510, implying an upside of 15.6%. The brokerage remains positive about the firm’s prospects due to its expanding capacity, strong capacity and shift towards high-value-added downstream products.

  • Suzlon Energy bags an order to develop 29.4 MW of wind capacity for the 100 MW wind-solar hybrid energy project of BrightNight located in Maharashtra. The company will supply 14 wind turbines with a capacity of 2.1 MW each.

  • Prabhudas Lilladher initiates coverage on the recently listed R R Kabel with a ‘Buy’ rating and a target price of Rs 1,407. The brokerage is optimistic about the company's position in the Wires & Cables (W&C) sector. They highlight RR Kabel's strong brand, diverse product range, well-planned capacity expansion, growing dealer and distribution network, and distribution-focused export business as factors contributing to their positive outlook.

  • PSU bank stocks like Union Bank of India, Central Bank of India, Canara Bank and Bank of Baroda are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • UltraTech Cement enters into an agreement with India Cements for purchasing a total of 73.8 acres of land in Andhra Pradesh in a deal worth Rs 70 crore. It appears in a screenerfor stocks with high momentum scores.

  • Manoj Vaibhav Gems N Jewellers raises Rs 81.1 crore from anchor investors ahead of its IPO by allotting 37.7 lakh shares at Rs 215 each. Investors include Quantum-State Investment Fund, Nexus Global Opportunities Fund, AG Dynamics Funds, Coeus Global Opportunities Fund and Chhatisgarh Investments.

  • The Finance Ministry’s August Economic Review states that food prices are moderating. It highlights that the risks of stock market correction and geopolitical developments may impact investor sentiment. It has given a baseline estimate for India’s FY24 GDP at 6.5%.

  • IRB Infrastructure Developers is rising as it achieves financial closure of Rs 2,092 crore to upgrade NH-27 to six lanes with paved shoulders. This includes financing of Rs 1,446 crore through lenders.

  • Sunteck Realty falls despite creating a joint platform with International Finance Corp with a total investment of Rs 750 crore. The platform will promote the development of nearly 12,000 housing units across four to six green housing projects within the Mumbai Metropolitan Region (MMR). The company appears in a screener of stocks with growing profit and margins.

  • ideaForge Technology is rising as it bags an order worth Rs 58 crore to supply 400 Surveillance Copters with accessories. The stock shows up in a screener for companies with low debt.

  • JP Morgan is set to include India in its GBI-EM (Government Bond Index-Emerging Markets) index, effective from June 28, 2024. It has stated that 23 Indian Government Bonds are eligible and that India will have a maximum weight of 10% on the index.

  • Rail Vikas Nigam rises as it receives an order worth Rs 1,272 crore in a joint venture with Tracks & Towers Infratech. The scope of the order involves construction of a 6-lane greenfield Varanasi Ranchi-Kolkata highway. The company appears in a screener of stocks with strong momentum.

  • ICICI Lombard General Insurance falls as Managing Director and Cheif Executive Officer, Bhargav Dasgupta, resigns on Thursday to pursue a career opportunity outside the country. His last working date shall be intimated in due course of time.

  • Rakesh Jhunjhunwala's portfolio buys a 4.4% stake in D B Realty on September 15, 2023. It now holds 5.6% in the company.

  • Glenmark Pharmaceuticals agrees to sell a 75% stake in its subsidiary, Glenmark Life Sciences (GLS), to Nirma for Rs 5,652 crore. Post the stake sale, the company will own a 7.8% stake in GLS. Glenn Saldanha, Chairman and MD of Glenmark Pharmaceuticals said “This deal aligns with Glenmark’s strategic intent of moving up the value chain to become an innovative/brand-led organization, with continuous focus on our core therapeutic areas of dermatology, respiratory and oncology.”

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (422.10, 7.19%), Berger Paints (India) Ltd. (669.30, 6.63%) and Union Bank of India (101.85, 5.65%).

Downers:

Largecap and midcap losers today include Zydus Lifesciences Ltd. (595.60, -3.26%), Info Edge (India) Ltd. (4,300.35, -3.14%) and Macrotech Developers Ltd. (740.60, -2.94%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Housing and Urban Development Corporation Ltd. (85.80, 18.84%), Century Textiles & Industries Ltd. (1,086.00, 6.80%) and Berger Paints (India) Ltd. (669.30, 6.63%).

Top high volume losers on BSE were Glenmark Pharmaceuticals Ltd. (802.80, -3.01%) and Cholamandalam Financial Holdings Ltd. (1,194.30, -0.76%).

Carborundum Universal Ltd. (1191.25, 2.68%) was trading at 14.8 times of weekly average. Gujarat Ambuja Exports Ltd. (314.95, 6.12%) and La Opala RG Ltd. (423.15, 0.81%) were trading with volumes 6.8 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Berger Paints (India) Ltd. (669.30, 6.63%), Canara Bank (382.95, 5.08%) and Indian Bank (420.85, 3.94%).

Stocks making new 52 weeks lows included - Gujarat Gas Ltd. (439.60, -0.33%) and Vedanta Ltd. (225.05, -0.64%).

4 stocks climbed above their 200 day SMA including Berger Paints (India) Ltd. (669.30, 6.63%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (624.25, 1.98%). 8 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (1,004.35, -2.13%) and Sheela Foam Ltd. (1,106.15, -1.95%).