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Trendlyne Marketwatch
Trendlyne Marketwatch
10 Jul 2023
Market closes flat, SEBI submits affidavit before SC regarding Adani-Hindenburg case

Trendlyne Analysis

Nifty 50 closed at 19,355.90 (24.1, 0.1%), BSE Sensex closed at 65,344.17 (63.7, 0.1%) while the broader Nifty 500 closed at 16,553.75 (-11.2, -0.1%). Of the 1990 stocks traded today, 751 were on the uptick, and 1181 were down.

Indian indices fell from their day highs and closed flat, with the Nifty 50 settling just above the 19,350 mark. The Indian volatility index, Nifty VIX, fell below 11.5%. Rail Vikas Nigam closed in the green after it received an order worth Rs 808.5 crore from the National Highway Authority of India (NHAI).

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, underperforming the benchmark index. Nifty Energy and Nifty Infra closed higher than Friday's levels. According to Trendlyne's sector dashboard, Oil & Gas was the top-performing sector of the day.

Major Asian indices closed flat or higher, except for Japan’s Nikkei 225 and Australia’s ASX All Ordinaries, which closed in the red. European stocks traded in the green, despite the US index futures trading in the red. Brent crude oil futures traded lower after rising 2.3% on Friday.

  • Money flow index (MFI) indicates that stocks like Olectra Greentech, BSE, Hindustan Zinc and Exide Industries are in the overbought zone.

  • According to a poll of economists, India's CPI inflation is expected to rise to 4.6% in June from 4.25% in May.

  • SEBI files an affidavit before the Supreme Court, seeking appropriate orders in the Adani-Hindenburg case.

  • Sula Vineyards is rising as its own brands segment grows 24% YoY to Rs 103.5 crore in Q1FY24. Its elite and premium brands segment also increases by 30% YoY. Focusing on its premiumisation efforts, the company has divested its lowest-priced heritage brand. The stock shows up in a screener for companies with low debt.

  • Larsen & Toubro and Navantia (Spain) sign a teaming agreement to submit a techno-commercial bid to deliver six conventional submarines equipped with air-independent propulsion for the Indian Navy’s P75 (India) submarine program. The project is valued at over 4.8 billion euros.

  • Mazagon Dock Shipbuilders rises over 8% and ranks high on Trendlyne's checklist with a score of 72.7%. The stock has 'Buy' ratings from 2 out of 4 brokerage firms. It appears in a screener of stocks with increasing FII/FPI shareholdings.

  • Emkay Global initiates coverage on Delhivery with a ‘Buy’ rating and target price of Rs 465. The brokerage believes that the e-commerce shipments market in India will at least double by FY26. It expects a turnaround in the company’s PAT in FY26 and a revenue CAGR of 24% over FY23-26.

  • Medical equipment, shipping and movies & entertainment industries rise by more than 23% over the past month.

  • Metal stocks like Welspun Corp, Steel Authority of India, Tata Steel and Jindal Steel & Power are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

  • ICICI Securities keeps its ‘Add’ rating on Balkrishna Industries with a target price of Rs 2,577. This implies an upside of 12%. The brokerage is optimistic about the company's efforts to increase its global off-highway tyre market share from 6.5% to 10% over the next four years. It expects portfolio diversification, capacity expansion, and entry into new markets to drive market share gains. It expects the company’s net profit to grow at a CAGR of 34.1% over FY23-25.

  • Rail Vikas Nigam rises as it receives an order worth Rs 808.5 crore from the National Highway Authority of India. The order involves the rehabilitation and upgradation of the Chandikhole-Paradip section of NH-53 in Odisha from 4 to 8 lanes. The project is expected to be completed in 24 months. The company appears in a screener of stocks with strong momentum.

  • Easy Trip Planners rises as it enters into a General Sales Agreement (GSA) with SpiceJet Airlines to sell, promote and market passenger tickets and other products & services in India, effective from August 1, 2023. It appears in a screener of stocks with no debt.                                                                                                                                          

  • Mutual Funds' net equity inflow rises 2.8X MoM to Rs 8,245 crore in June from Rs 2,906 crore in May, according to data released by the Association of Mutual Funds in India (AMFI).

  • Hindustan Aeronautics rises as it receives an order worth Rs 458.9 crore from the Ministry of Defence. The order involves the delivery of two Dornier aircraft for the Indian Coast Guard and to provide associated engineering services. The company appears in a screener of stocks with increasing quarterly revenue.

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

  • Max Ventures and Industries rises in trade as it achieves pre-formal launch sales of over Rs 1,800 crore for its first luxury residential project, Estate 128, located in Noida, UP. It appears in a screener of stocks with strong momentum.

  • Zee Entertainment Enterprises is falling as the Securities Appellate Tribunal (SAT) refuses to grant an interim stay on SEBI’s order against Subash Chandra and Punit Goenka. SEBI had issued an interim order on June 12, barring them from holding any key managerial positions in listed entities or their subsidiaries because of an alleged fund diversion.

  • Shares of Cyient DLM debut on the bourses at a 52.1% premium to the issue price of Rs 265. The Rs 592 crore IPO has received bids for 67.3 times the total shares on offer.

  • Vijay Kedia sells a 0.2% stake in Elecon Engineering in Q1FY24. He now holds a 1.8% stake in the company.

  • IRB Infrastructure rises as its toll collection surges by 16.5% YoY to Rs 383.4 crore on the back of robust growth in tollways like MP Expressway and Kishangarh-Gulabpura highway. The company appears in a screener of stocks with improving annual net profits.

  • Morgan Stanley downgrades its rating on Titan Co to 'Equal-weight' with a target price of Rs 3,207, citing a possible halt in its outperformance. The brokerage expects high gold prices to impact discretionary consumption and a slowdown in the company's business growth for the next few quarters.

  • Ashish Kacholia reduces his stake in United Drilling Tools to below 1% in Q1FY24, compared to 2.8% in Q4FY23.

  • Aurobindo Pharma's subsidiary, CuraTeQ, enters into an exclusive licensing agreement with USA's BioFactura to commercialize the generic drug Ustekinumab. Under the agreement, CuraTeQ will receive 57-60% of the profits, and in return, will pay BioFactura $33.5 million as license fees.

  • Indian Oil Corporation rises as its board approves a rights issue to raise funds worth Rs 22,000 crore. The company has also formed a joint venture with Sun Mobility Singapore for the battery swapping business in India. Indian Oil plans to invest Rs 1,800 crore in equity and $78.31 million in IOCL Singapore for the purchase of preference shares and warrants of Sun Mobility.

  • Tata Motors is rising as it reports a 5% YoY increase in global wholesales to 3.2 lakh units in Q1FY24, driven by growth in wholesales of commercial and passenger vehicles. Jaguar Land-rover, its subsidiary, has contributed 28.9% of the global wholesales.

Riding High:

Largecap and midcap gainers today include Reliance Industries Ltd. (2,735.05, 3.85%), ICICI Prudential Life Insurance Company Ltd. (595.00, 3.79%) and Steel Authority of India (SAIL) Ltd. (90.05, 3.74%).

Downers:

Largecap and midcap losers today include Balkrishna Industries Ltd. (2,284.60, -4.38%), Hindustan Zinc Ltd. (327.85, -3.74%) and Deepak Nitrite Ltd. (1,986.85, -3.66%).

Volume Shockers

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

Top high volume gainers on BSE included Akzo Nobel India Ltd. (2,683.00, 6.63%), Sun Pharma Advanced Research Company Ltd. (224.40, 6.05%) and Caplin Point Laboratories Ltd. (821.95, 4.54%).

Top high volume losers on BSE were Prism Johnson Ltd. (124.95, -5.77%) and Crisil Ltd. (3,818.00, -0.16%).

Gland Pharma Ltd. (1,084.75, 3.69%) was trading at 10.7 times of weekly average. Hatsun Agro Products Ltd. (945.20, 1.67%) and DCM Shriram Ltd. (910.30, 1.85%) were trading with volumes 8.6 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

27 stocks overperformed with 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2683.00, 6.63%), Apollo Tyres Ltd. (428.85, 2.56%) and Bajaj Auto Ltd. (4,897.95, 1.32%).

Stock making new 52 weeks lows included - Aarti Industries Ltd. (454.10, -3.81%).

8 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (360.85, 6.67%) and Praj Industries Ltd. (409.25, 2.99%). 14 stocks slipped below their 200 SMA including Deepak Nitrite Ltd. (1,986.85, -3.66%) and Infibeam Avenues Ltd. (15.40, -2.84%).

 
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The Baseline
07 Jul 2023
Five Interesting Stocks Today
  1. KEC International: Thisheavy electrical equipment manufacturer has made headlines after winning orders worth Rs 1,042 crore across segments. This has resulted in a 5% increase in its stock price. According toTrendlyne Technicals, the stock has gained 10.7% in the past month. The management, in its recently concluded analyst meeting in June, discussed its shift in strategy from relying on traditional transmission and distribution (T&D) orders to venturing into new segments like railways, telecommunications and civil.

In line with this shift, KEC International’s order book now comprises of T&D (47%), civil (33%) and railways (13%). Of the Rs 22,398 crore worth of new orders in FY23, nearly 60% came from non-T&D segments. The management expects to add another Rs 25,000 crore to its order book after executing orders worth Rs 20,000 crore in FY24. The firm currently has a tender pipeline of Rs 1 lakh crore. It is handpicking orders to increase its operating margins.

KEC has seen an increase in order inflow from international markets, particularly SAARC nations and the Middle East. The firm has also executed its legacy orders and aims to reduce its working capital cycle from 118 days in FY23 to 110 in FY24. It has also reduced debt by Rs 1,000 crore in the past three quarters, against the initial guidance of Rs 500 crore. It shows up in a screener of stocks with consistent high returns over five years compared to the Nifty 500

ICICI Securities says the management’s efforts to diversify into non-T&D businesses are seeing results with higher order inflow. The brokerage maintains a ‘Buy’ rating on the company and highlights that improved margins and better cash utilization will help in maintaining an optimum balance between execution and profitability. 

  1. Macrotech Developers: This realty stock rose 3.8% on Thursday and touched its 52-week high of Rs 740 per share after posting a strong business update for Q1FY24. This helped the stock grow 8.9% over the past week, while it has risen 26.9% over the past month. This helped it appear in a screener of stocks with prices above short, medium and long-term moving averages.

In Q1FY24, the company’s pre-sales bookings grew by 17% YoY to Rs 3,350 crore. It also acquired five land parcels with a gross development value of Rs 12,000 crore. Consequently, its net debt rose marginally to Rs 7,260 crore. Abhishek Lodha, MD and CEO of the company, said that the pre-sales performance was in line with its projected 20% growth in pre-sales bookings for FY24. The peaking of interest rates is a good sign for the realty sector. Any potential decrease in interest rates would aid volume sales in the realty market.

The company recently launched a luxury residential project in Mumbai, with prices starting from Rs 6.5 crore. According to some reports, 70% of the properties launched have already been booked.

Motilal Oswal maintains its ‘Buy’ rating on the stock with a target price of Rs 775, indicating a potential upside of 10.6%. The brokerage believes that the realtor will sustain its strong pre-sales growth rate, backed by focused project additions, faster turnarounds and healthy sales. It expects the company’s revenue to grow at a CAGR of 5.9% over FY23-25.

  1. Hero MotoCorp: This motorcycle company has risen 11.3% over the past week till Friday and gained 8.6% since announcing the launch of its new bike, X440, on July 3. The new bike is jointly developed by Hero and Harley Davidson, and will be manufactured in India, with prices starting from Rs 2.29 lakh. 

With the markets responding positively to X440., Hero’s stock grew. Its rival  Eicher Motors has fallen by more than 11% in response since July 3. Even though Royal Enfield commands a market share upwards of 90% in the premium bike segment in India, the entry of new models from Hero and Bajaj Auto (in partnership with Triumph) is expected to reduce Royal Enfield’s market dominance and profit margins. 

However, it's not all smooth sailing for Hero MotoCorp. Its total monthly wholesales in June fell by 10% YoY, with domestic sales and exports declining by 8.7% and 34.3% YoY respectively. Also, a weak monsoon season will lower rural demand, thus impacting Hero’s sales.

To make matters worse, there has been a shift in demand in the Indian market favouring 125cc bikes over 100cc ones. This does not bode well for the company as it commands an 80% share in the 100cc segment, which accounts for 78% of its volumes. The company’s market share in the 125cc segment has declined to 21% in FY23 from 55% in FY19, with competitors like TVS Motor Co, Royal Enfield and Suzuki Motorcycle India capturing a larger share. 

In response, the management has lined up new launches in the 125cc and above segments in FY24, aiming to regain its lost market share. However, whether the company succeeds will depend on its execution. According to Trendlyne Forecaster, the consensus recommendation on the stock from 38 analysts is a ‘Hold’.

  1. Blue Dart Express Ltd - Thislogistics firm has been in the news for adding two aircraft to its existing fleet of six. The stock has risen 15.4% in the past month, according toTrendlyne Technicals. The two new aircraft will cater to Tier-II and Tier-III cities, allowing Blue Dart to establish new routes and enhance connectivity across India. The recent decline in Aircraft Turbine Fuel (ATF) prices has also aided the rise in the stock’s price. ATF prices have declined by 25% in the past three months. The ATF cost accounts for nearly 40% of Blue Dart’s expenses. In Q4FY23, its margins were compressed on account of these fuel charges.

Blue Dart plans to increase its surface revenue share from the current 35% to 40-45%. The growing popularity of online shopping is expected to contribute to higher volumes, as nearly 25% of the firm's revenue comes from this sector. Blue Dart's strategy of implementing an annual 10% price hike will support its growth above inflation rates. Additionally, the company's focus on technology-driven logistics enables cost optimization and expands its reach.It shows up in a screener for stocks showing strong momentum, with prices above short, medium and long-term moving averages.

Motilal Oswal says the recent fleet expansion and price hikes will help in boosting the top line. Its overall volume is expected to grow by 12% in FY24. The decline in ATF prices is expected to boost margins, with EBITDA margins projected to grow from 10-11% to 13-14% in FY24. The brokerage has revised its rating from ‘Neutral’ to ‘Buy’.

  1. Bajaj Finance: This banking and finance company rose over 7% on Tuesday after announcing a strong Q1FY24 business update. This was driven by robust growth in volume and loans, and healthy new customer acquisition. Bajaj Finance touched its new 52-week high of Rs 7,999.9 on Wednesday and has risen 7.4% over the past week till Friday. As a result, the company features in a screener of stocks with strong momentum. 

In Q1FY24, the company’s AUM (assets under management) increased by 32% YoY to around Rs 2.7 lakh crore, backed by improvement in new loans booked and deposits. New loans booked during Q1FY24 grew by 34% YoY to 9.94 million, while the company reported its highest quarterly customer franchise of 3.8 million during the same period. 

Bajaj Finance’s focus on customer acquisition through multiple channels and diversified products has been key to its AUM growth over the past few years. In addition, the expansion of distribution into Tier II and Tier III cities has helped with AUM growth. During the company’s Q4FY23 earnings call, Managing Director Rajeev Jain had said that it targets an AUM growth of 28-29%, with a sharp focus on profitability in FY24. 

Following the company’s strong performance, foreign brokerage CLSA upgraded its rating to ‘Buy’ and raised the target price by 50% to Rs 9,000. According to the brokerage, Bajaj Fin’s QoQ AUM growth of 9% beat its estimate of 6-7%. The company is in the PE Buy Zone as its current PE is lower than its historical PE ratios. 

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
07 Jul 2023
Market closes lower, Zen Technologies bags order worth Rs 160 crore from the Centre

Trendlyne Analysis

Nifty 50 closed at 19,331.80 (-165.5, -0.9%), BSE Sensex closed at 65,280.45 (-505.2, -0.8%) while the broader Nifty 500 closed at 16,564.90 (-130.2, -0.8%). Market breadth is in the red. Of the 1,969 stocks traded today, 742 were on the uptick, and 1,161 were down.

Indian indices extend the losses from the afternoon session with the Nifty 50 closing just below at 19,331 mark. The volatility index, Nifty VIX drops by 2.6% and closes at 11.5 points. Sobha’s Q1FY24 sales rise by 27.9% YoY to reach a record high of Rs 1,464.7 crore beating the consensus estimates by 61%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Auto, Nifty PSU Bank and Nifty Media closed higher from Thursday’s closing levels. All other major sectoral indices closed lower. According to Trendlyne’s sector dashboard, media emerged as the top-performing sector of the day with a rise of over 2.1%.

Most European indices trade in the green except for England’s FTSE 100 and Switzerland’s SMI trading lower. US indices futures trade lower indicating a negative start. Twitter has threatened to sue Meta over Facebook’s new app launch ‘Threads’, which is on similar lines to Twitter.

  • Apollo Tyres beats Ceat in YoY revenue growth, PE ratio, Trendlyne Valuation score and MF holdings. But it lags in YoY net profit growth, Trendlyne Durability score, one-year price change and FII holdings.

  • Wipro and Federal Bank rise 3.8% and 10.8% respectively over the past week, ahead of their Q1FY24 results on July 13.

  • Indian Railway Catering & Tourism Corporation's annual return on equity (RoE) stands at 40.6% in FY24, showing a rise of 23.2 percentage points over the past five years.

  • Zen Technologies rises as it receives an order worth Rs 160 crore from the Government of India. The contract comes under the Government's Indigenous Design and Development (IDDM) initiative. The company appears in a screener of stocks with increasing quarterly profits.

  • Aster DM Healthcare rises as it acquires an additional 2.4% stake (23,58,637 shares) in its subsidiary, Malabar Institute of Medical Sciences. The deal was executed at an average price of Rs 100 per share, resulting in a total of Rs 23.6 crore. With this deal, Aster now owns a 78.4% stake in the subsidiary.

  • Talbros Automotive Components is rising as it bags multi-year contracts worth Rs 400 crore from domestic and overseas customers. The orders are expected to be executed over a period of five to seven years. The stock shows up in a screener for companies with high TTM EPS growth.

  • Rakesh Jhunjhunwala’s portfolio cuts a 0.1% stake in Raghav Productivity Enhancers in Q1FY24, bringing the holding to 5.1%.

  • Kalyan Jewellers rises 6.4% to reach its all-time high of Rs 166.5 per share, aiding it to appear in a screener of stocks that have gained more than 20% in the past month. It ranks high on Trendlyne's checklist with a score of 65.2%. However, the stock is in the 'Sell' zone.

  • Vikas Gupta, Managing Director of PG Electroplast, expects the company to achieve the revenue guidance of Rs 2,800 crore in FY24. He adds that the firm is aiming for a revenue growth contribution of 40-50% in the room AC category.

  • Dolly Khanna buys a 0.1% stake in Mangalore Chemicals & Fertilizers in Q1FY24, bringing her holdings in the company to 1.3%.

  • Power stocks like Bharat Heavy Electricals, Power Grid Corp of India, NHPC, Adani Transmission and NTPC are falling in trade. All constituents of the broader sectoral index, BSE Power, are also trading in the red.

  • Olectra Greentech rises as it receives an order worth Rs 10,000 crore from the Maharashtra State Road Transport Corporation (MSRTC) for 5,150 electric buses. The project is expected to be completed within 24 months. The company appears in ascreener of stocks with strong momentum.

  • Foreign institutional investors invest Rs 7,261.3 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, stock options witness the highest outflow of Rs 2,404.9 crore from foreign investors. Mutual funds also invest Rs 1,768.3 crore in the Indian markets.

  • Morgan Stanley maintains its ‘Overweight’ rating on Dabur with a target price of Rs 606. The brokerage highlights the improvement in demand trends in rural and urban regions and expects the company's margins to improve due to the moderation in inflation.

  • HDFC Securities downgrades Eicher Motors to 'Reduce' from 'Add' and lowers the target price to Rs 3,086 from Rs 3,715. This indicates a downside of 3.6% from the current market price. The brokerage is concerned about the impact of new launches by Hero MotoCorp and Bajaj Auto in the premium segment, which could put pressure on Eicher Motors' margins.                                                                                                                                                                         

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

  • Praj Industries surges more than 5% as it signs a memorandum of understanding (MoU) with Indian Oil to increase the production capacity of biofuels in India. The companies had previously formed a 50:50 joint venture in October 2021 for the same. Under the MoU, the companies will produce biofuels like sustainable aviation fuel (SAF), compressed bio-gas (CBG) and biodiesel, among others.                                                                                                                                    

  • Indian rupee depreciates 17 paise to 82.68 from the previous close of 82.51 against the US dollar in early trade today. This is due to robust US private hiring statistics, which has raised concerns about further policy tightening by the Federal Reserve.

  • Shares of ideaForge Technology debut on the bourses at a 93.5% premium to the issue price of Rs 672. The Rs 567 crore IPO has received bids for 106 times the total shares on offer.

  • Intellect Design Arena is falling as it reportedly loses a contract to develop the Government e-Marketplace (GeM) portal, which constituted 10% of the firm's FY23 revenue. It appears in a screener of stocks with high volume and that are top losers.

  • Jefferies maintains its 'Buy' rating on Allcargo Logistics but lowers its target price to Rs 370, citing the demerger. The brokerage highlights the company's focus on international trade and domestic markets.

  • Tata Steel India’s Q1FY24 crude steel production rises by 1.8% YoY to 5 million tonnes, led by a ramp-up at Neelachal Ispat Nigam. Its deliveries grow by 18% YoY, driven by healthy growth in domestic demand. However, Tata Steel Europe’s crude steel production falls 25.8% YoY to 1.8 million tonnes.

  • Titan rises as its jewelry sales surge by 21% YoY, watches & wearables sales by 13%, and eyecare segment by 10% YoY in Q1FY24. The strong demand and popularity of premium brands contribute to the growth. Additionally, the company has added 57 new stores during the same period. Titan appears in a screener of stocks with improving annual net profits.

  • The National Company Law Tribunal approves the demerger of Reliance Industries’ financial unit into Reliance Strategic Investments, which will be renamed Jio Financial Services. The company announced that it will take the necessary steps to fix the record date for allotment and the listing of Reliance Strategic Investments’ equity shares. The stock shows up in a screener for companies with improving cash flows and high durability scores.

Riding High:

Largecap and midcap gainers today include Sona BLW Precision Forgings Ltd. (536.90, 2.47%), Titan Company Ltd. (3,163.85, 1.85%) and Hindustan Zinc Ltd. (341.25, 1.58%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (699.00, -4.00%), Mahindra & Mahindra Financial Services Ltd. (330.30, -3.12%) and Ambuja Cements Ltd. (418.90, -2.92%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Sunteck Realty Ltd. (335.60, 12.43%), Praj Industries Ltd. (398.75, 7.60%) and Kalyan Jewellers India Ltd. (163.35, 6.17%).

Top high volume loser on BSE was Intellect Design Arena Ltd. (588.75, -5.58%).

Sobha Ltd. (578.40, 4.14%) was trading at 6.9 times of weekly average. Granules India Ltd. (308.60, 2.56%) and PVR INOX Ltd. (1,440.00, 4.72%) were trading with volumes 4.4 and 3.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks overperformed with 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Bank of Baroda (205.30, -0.07%), Bharat Petroleum Corporation Ltd. (390.80, -0.64%) and Bosch Ltd. (19,749.95, 1.20%).

Stock making new 52 weeks lows included - Aarti Industries Ltd. (474.40, -2.39%).

12 stocks climbed above their 200 day SMA including Praj Industries Ltd. (398.75, 7.60%) and Sobha Ltd. (578.40, 4.14%). 10 stocks slipped below their 200 SMA including Container Corporation of India Ltd. (673.90, -2.33%) and Aegis Logistics Ltd. (337.50, -2.29%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Jul 2023
Market sees record close, Senco Gold’s IPO gets bids for 73.4X of the available shares

Trendlyne Analysis

Nifty 50 closed at 19,497.30 (98.8, 0.5%) , BSE Sensex closed at 65,785.64 (339.6, 0.5%) while the broader Nifty 500closed at 16,695.05 (97.9, 0.6%). Of the 1,964 stocks traded today, 1,186 were gainers and 712 were losers.

Indian indices closed in the green, with the Nifty 50 rising above the 19,450 mark. Benchmark indices, Nifty 50 and Sensex closed at their record highs. Eicher Motors fell over 2.5% and closed in the red for the third consecutive session as investors remain concerned about the potential threat posed by new launches from Hero MotoCorp and Bajaj Auto to the firm’s 90% market share in the premium bike segment.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty Infra closed sharply higher than Wednesday’s close. According to Trendlyne's sector dashboard, Realty was the top-performing sector of the day.

Major Asian indices closed in the red, except for India’s BSE Sensex, which closed higher. European stocks traded in the red as Eurozone’s composite purchasing managers' index fell to 49.9 in June from May's 52.8. A value above 50 indicates expansion in activity, while a lower than 50 is a sign of contraction. Brent crude oil futures extended gains and traded in the green for a third consecutive session.

  • Multi Commodity Exchange of India (MCX) sees a long buildup in its July 27 future series as its open interest rises 19.8% with a put-call ratio of 1.18.

  • Adani Green Energy is rising as its board of directors approves the issuance of equity shares with a face value of Rs 10 per share. The total investment through a qualified institutional placement (QIP) is expected to be Rs 12,300 crore.

  • G M Breweries rises as its Q1FY24 net profit jumps by 23.2% YoY to Rs 19.9 crore on the back of lower raw material costs. Its revenue also rises by 5.1% YoY to Rs 579.4 crore. It appears in a screener of stocks with increasing quarterly profits.

  • Hindustan Petroleum Corp and Amara Raja Batteries touch their 52-week highs of Rs 307 and Rs 709 respectively. The former has risen by 17.9% in the past month, while the latter increased by 14.4%.

  • BSE is rising as its management approves the buyback of shares worth Rs 374.8 crore at a price of Rs 816 per share. The buyback will take place through the tender offer route. The company shows up in a screener for stocks that have gained more than 20% over a month.

  • Puravankara is rising as it achieves its highest quarterly sale value of Rs 1,126 crore, implying growth of 199% YoY. Its customer collections also surge 52% YoY to Rs 696 crore. Ashish Puravankara, Managing Director of the company, says, “With a strong pipeline of new launches, we are confident that we will continue to drive our pre-sales growth momentum.”

  • Aerospace, movies & entertainment and shipping industries rise by more than 18% over the past month.

  • Senco Gold’s Rs 405 crore IPO gets bids for 73.4X the available 94.2 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 15.5X of the available 47.1 lakh shares on offer.

  • JBM Auto and Cyient are trading below their second support or S2 level despite the markets trading higher.

  • Eicher Motors is falling for the third consecutive session as reports suggest that investors are concerned about the potential threat posed by new launches from Hero MotoCorp and Bajaj Auto to the firm’s 90% market share in the premium bike segment.

  • Bombay Dyeing & Manufacturing Company touches a 52-week high as reports suggest that they are going to sell 2 million square feet of their Mumbai land for Rs 5,000 crore for commercial purposes. A prominent Japanese conglomerate is said to be leading the race to acquire the land. It appears in a screener of stocks with strong momentum.

  • Marico is falling following its Q1FY24 update that its consolidated revenue has fallen in low-single digits on a YoY basis. The management attributes this to pricing interventions in the domestic market and a drop in prices of Saffola edible oils. However, it expects gross margins to expand on a YoY basis due to a decline in edible oil prices and steady copra & crude prices.

  • Piramal Enterprises is falling in trade as reports suggest that 61 lakh shares (2.6% equity), amounting to Rs 575 crore, have changed hands in a block deal.

  • Dolly Khanna buys a 0.5% stake in Talbros Automotive Components in Q1FY24, bringing her holdings in the company to 1.5%.

  • Biocon rises as its subsidiary, Biocon Biosimilars, takes over the commercialization of the biosimilar business from Viatris in over 70 countries. In February 2022, Biocon Biosimilars acquired Viatris for $3.3 billion (Rs 24,912.7 crore).

  • Energy & Oil stocks like Indian Oil Corp, Tata Power, Bharat Petroleum Corp, Power Grid Corp of India and NTPC are rising in trade. All constituents of the broader sectoral index, Nifty Energy, are also trading in the green.

  • The Finance Ministry's FY23 Economic Review states that the Indian economy has carried forward its momentum from FY23 into FY24. It also highlights the improving rural demand and its progress towards recovery.

  • Solara Active Pharma Sciences is falling as its board of directors approves the issue of equity shares for a total value of Rs 450 crore by way of rights issue.

  • DCB Bank rises as Tata Asset Management gets RBI's permission to acquire 7.5% of the paid-up capital of the bank through the schemes of Tata Mutual Fund. The bank appears in a screener of stocks with high momentum scores.

  • Realty stocks like Macrotech Developers, Indiabulls Real Estate and Godrej Properties rise more than 2.5% in trade. The broader Nifty Realty index is trading 2% higher.

  • HDFC Securities maintains its ‘Buy’ rating on Oberoi Realty with a target price of Rs 1,158. This indicates an upside of 12.8%. The brokerage believes the company is well-placed to benefit from the rising demand for real estate, given its new project launches. It also expects the firm to generate robust cash flows from its recently completed projects.

  • Goldman Sachs maintains its 'Buy' rating on Godrej Consumer Products with a target price of Rs 1,150, citing strong traction across different segments in Q1FY24. It expects robust growth in the company's consolidated EBITDA and India organic segment.

  • KEC International rises to an all-time high of Rs 603.8 as it secures orders worth Rs 1,042 crore for its railways, civil, transmission & distribution and cables businesses. The company appears in a screener of stocks with increasing quarterly revenues.

  • Ujjivan Small Finance Bank rises to a new 52-week high of Rs 417.6 as its deposits grow by 44% YoY and the Gross NPA falls by 340 bps YoY in Q1FY24. However, the CASA ratio has contracted by 330 bps. The bank appears in a screener of stocks with strong momentum.

  • Retail sales for the automotive industry rise 9.6% YoY to 18.6 lakh units in June, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 6.8% YoY, while cars increase by 4.8% YoY.

  • India Cement falls as Life Insurance Corporation of India sells a 2% equity stake (63,27,906 shares) in the company. The deal was executed via an open market transaction at an average price of Rs 191.6 per share, amounting to Rs 121.5 crore. With this deal, LIC's shareholding in India Cement stands at 3.8% (1.18 crore shares).

  • Tata Power is rising as the company receives a letter of award (LOA) worth Rs 1,744 crore from Chhattisgarh State Power Distribution (CSPDCL). The LOA is for a smart metering project in the state over a period of 10 years.

Riding High:

Largecap and midcap gainers today include Hindustan Zinc Ltd. (335.95, 7.85%), Torrent Power Ltd. (640.35, 5.03%) and Mahindra & Mahindra Ltd. (1,548.80, 4.98%).

Downers:

Largecap and midcap losers today include Eicher Motors Ltd. (3,222.20, -2.65%), Marico Ltd. (527.70, -2.01%) and HDFC Life Insurance Company Ltd. (661.15, -1.85%).

Volume Shockers

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

Top high volume gainers on BSE included Ceat Ltd. (2,485.30, 18.72%), Hindustan Zinc Ltd. (335.95, 7.85%) and Jamna Auto Industries Ltd. (108.80, 5.17%).

PNC Infratech Ltd. (354.35, 4.88%) was trading at 14.7 times of weekly average. Sunteck Realty Ltd. (298.50, 5.07%) and Avanti Feeds Ltd. (409.50, 4.00%) were trading with volumes 14.3 and 9.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

55 stocks hit their 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (23,800.00, 2.12%), Amara Raja Batteries Ltd. (703.35, 2.47%) and Apollo Hospitals Enterprise Ltd. (5,283.05, 4.05%).

Stock making new 52 weeks lows included - Aarti Industries Ltd. (486.00, -0.07%).

14 stocks climbed above their 200 day SMA including Jamna Auto Industries Ltd. (108.80, 5.17%) and Avanti Feeds Ltd. (409.50, 4.00%). 3 stocks slipped below their 200 SMA including Eicher Motors Ltd. (3,222.20, -2.65%) and Alkyl Amines Chemicals Ltd. (2,626.95, -1.41%).

 
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The Baseline
06 Jul 2023
India looks for opportunity in the US-China chip war | Screener for outperformers ahead of results
By Shreesh Biradar

In the last few decades, the way countries wage war has changed. The world has mostly shifted from traditional battles involving soldiers and tanks, to more sophisticated weapons - economic sanctions.

China's growing dominance in the chip manufacturing sector raised alarms in the US. In response, the US is trying to put the brakes on China's technological rise by imposing sanctions and bans on chip exports to China.

The chip war has led to cascading effects globally, creating supply chain issues. Most of the global manufacturing industries, including automobiles and mobile phones, faced chip shortages post-pandemic. As a result, the costs for specialized hardware jumped. The chip supply has now increased as Korea and Japan boosted their production, while countries like India are trying to create a chip manufacturing ecosystem from scratch, via incentives to manufacturers. 

In this week’s Analyticks:

  • The chip war creates risk and opportunity: As China and the US clash over semiconductors, countries like India look to take advantage
  • Screener: Stocks outperforming their sectors and Nifty 500, with high broker upside and increasing MF buying

Let’s get into it.

US, the dominant chip manufacturing country, defends its territory

The US has been at the epicentre of chip manufacturing since the early 1980s, with a market share of 50%, followed by Japan (40%). Over the years, the US has maintained its market share, and currently holds 48%. In contrast, Japan’s market share has dropped to 9%.

The US accounts for nearly $275 billion of the global market size of $574 billion. The country is home to technologically advanced chip manufacturing companies such as Nvidia, AMD, Intel, and Qualcomm, making it a powerhouse of chip technology. It is followed by China, which has rapidly caught up and now has a market size of $181 billion. 

Semiconductors are the fifth largest exports for the US, after refined oil ($146.2 billion), crude oil ($116.8 billion), natural gas ($96.5 billion) and aircraft ($93.8 billion).

When it comes to investment in chip manufacturing, the US spends nearly $50 billion in R&D, surpassing the combined spending of approximately $40 billion by the rest of the world.

The US Department of Commerce recently announced a $52.7 billion package in August 2022 to further strengthen its semiconductor industry. The US has also passed the CHIPS Act to increase chip manufacturing and counter the rise of Taiwan, South Korea, and China. 

These eye-popping investments in chip technology and its dominant position in the market give the US a strong bargaining chip. 

China wants to dominate chip manufacturing, by fair means or foul

The stakes are high in the semiconductor market - the significance of chips in electronic equipment cannot be overstated. Nearly 56% of chips manufactured worldwide are used to power computers and smartphones. While the assembly cost of a mobile phone is relatively low, the chip inside costs hundreds of dollars.

China has been trying hard to build its chip manufacturing capability and the US has previously accused it of cheating to do it. For example, Micron, a chip maker based out of the US, found itself the target of a heist by Chinese company Fujan Jinhua in 2018, when more than 900 confidential Micron designs and documents were copied onto USB drives and phones to be smuggled out of Micron's Taiwanese office. Chinese companies have also been found selling chip designs very similar to manufacturers like Samsung.

The US has reacted by hitting China where it hurts the most.  American restrictions on chip exports have slowed down China’s electrical and electronic manufacturing. China is the biggest exporter of electrical and electronic equipment in the world, and according to United Nations Comtrade, its exports in this segment was $955 billion in 2022.

By disrupting the chip supply, US will force China to move down the value chain in exports.

US companies control nearly 53% of China's semiconductor market, easily the biggest consumer market worldwide:

Although US chip manufacturers will lose access to the China market with the restrictions, the blow to China will be even greater.

The semiconductor value chain is dominated by the US, followed by Japan, South Korea, Taiwan and the Netherlands. These nations are more aligned with the US even though China is the biggest customer. Following the US, Japan and the Netherlands have also imposed export restrictions on high-end chips (below 14nm size). Companies like Intel, Foxconn, TSMC, NXP, and Qualcomm are increasingly moving their units out of China.

China is a big exporter of rare earth metals crucial for chip manufacturing. According to the US Geological Survey, China supplies over two-thirds of global rare earth metal consumption. So in retaliation, China this week imposed restrictions on the export of Gallium and Germanium, which are necessary for chip manufacturing. It has also banned chip manufacturer Micron and other US players from entering its market.

Why can’t China scale up without the US?

China’s retaliatory measures may impact US revenue in the short term, but in the long run, China is depriving itself of the free flow of technology.

The US has long expressed concerns about unfair trade practices in China. China has always spent less on R&D (7% of its revenue) compared to the US (18.75%), and is trying to take advantage of the US technology, via IP theft and copycat chips.

One key limitation for China is in advanced processor chips below 14nm. With the restrictions in place, China only has access to chips sized 14nm or greater. Even China’s largest chip manufacturer, Huawei, is limited to producing 14nm and above chips. Developing expertise on par with the US will take years.

The technology involved in the chip manufacturing process is controlled by a handful of companies. For instance, Advanced Semiconductor Materials Lithography Holding (ASML) based out of the Netherlands has a 100% market share in advanced lithography tools used for chip manufacturing. Taiwan’s TSMC (Taiwan Semiconductor Manufacturing Company) controls 90% market share for advanced processor chips (5nm and 7nm chips) used in smartphones and computers. The few companies which purify the metals needed for chip manufacturing are located in Japan, a US ally, and the US.

The restrictions imposed by the US, Japan, Netherlands and Taiwan will significantly slow down China's participation in the AI and smartphone race.

India is pushing hard to overcome its challenges in chip manufacturing

The Indian semiconductor market is expected to reach around $55 billion by 2026 and $85 billion by 2030, a big jump from the current $27 billion. Currently, India relies on imports to fulfill nearly 90% of its semiconductor requirements. However, the recent trade war and supply chain issues have highlighted the need for domestic chip manufacturing. The Indian government is trying to incentivize chip manufacturing by allocating Rs 76,000 crore to the sector.

As a late entrant to the industry, India faces multiple challenges. Chip manufacturing requires skilled labour,  ultra-specialized software (which is usually licensed), and precise machine tools to lay down thin films of semiconductors (where thickness is measured in atoms). India currently lacks the necessary infrastructure and access to such processes and systems.

Investments in chip manufacturing run into billions of dollars, while the market size is only around $27 billion. This has been a major barrier for Indian manufacturers. Ideally, an Indian player should partner with a technological provider to scale up operations. Vedanta-Foxconn is currently the only such proposal on the government’s table. However, the JV is still looking for a suitable technological partner that could license them with 28 nm chip technology. 

In a positive development, Micron has announced a $2.5 billion investment in India for chip manufacturing. UK-based SRAM & MRAM has also pledged a Rs 30,000 croreinvestment for a semiconductor fabrication unit in India.

These investments also align with the China +1 policy, where global companies are finding alternate manufacturing locations to reduce their dependence on China. India needs these foreign firms to establish plants,  source raw materials from China, and drive exports.

While building the industry from the ground up is a difficult task, it's not impossible. India's journey toward chip manufacturing will require coordinated effort, strategic partnerships, and a robust ecosystem. It has the potential to emerge as a significant player in global chip manufacturing if it manages to beat these early roadblocks.

Screener: Stocks outperforming their sectors and Nifty 500, with high broker upside and increasing MF buying

As the Nifty 50andSensexhit record highs, we take a look at the outperformers. This screener shows stocks that have outperformed their sectors and the Nifty 500 in the past month, with more than 20% upside in the broker target price, and with mutual fund holdings increasing in the past two months.

The screener has 11 stocks from the Nifty 500 index, including Suzlon Energy, Shyam Metalics & Energy, Kennametal India, Piramal Pharma, KPR Milland Star Health & Allied Insurance.

Suzlon Energy has grown 66.4% over the past month, outperforming the Nifty 500 by 61.7 percentage points. The stock has an average broker target price upside of 20.2%. According to ICICI Securities, the general industrials company is well-positioned to take advantage of policy changes in the industry after booking orders worth 750 MW for its newly launched 3 MW turbine. However, the stock has been volatile over the past decade due to low industry volumes and high debt after the acquisition of Repower in 2008.  

Shyam Metalics & Energy comes in next with a 17.6 percentage point outperformance of the Nifty 500. The metals & mining company also has the second-highest average broker target price upside of 58.1%. ICICI Securities predicts growth in revenue driven by increased volume of aluminium foil and LC ferrochrome, and growth in rebar sales despite weak demand. 

Piramal Pharma has risen 11.4% over the past 30 days, outperforming the Nifty 500 by 6.7 percentage points. The pharmaceuticals & biotechnology stock has the highest average broker target price upside of 111%. Motilal Oswal expects growth in sales in the medium term owing to rising purchase orders in the contract development and manufacturing operations (CDMO) and complex hospital generics (CHG) segments. 

You can find more popular screenershere.

Signing off this week,

The Trendlyne Team

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Jul 2023
Market sees record close, Senco Gold’s Rs 405 crore IPO gets bids for 2.68X of shares

Trendlyne Analysis

Nifty 50 closed at 19,398.50 (9.5, 0.1%) , BSE Sensex closed at 65,446.04 (-33.0, -0.1%) while the broader Nifty 500 closed at 16597.20 (41.2, 0.3%). Of the 1,971 stocks traded today, 1,157 were in the positive territory and 756 were negative.

Indian indices rise from the day’s low and close flat, with the Nifty 50 closing just below the 19,400 mark. The volatility index, Nifty VIX rises by 1.5% and closes at 11.9 points. FIIs invested $5.4 billion in Indian equities in June 2023, the highest inflow since August 2022.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Auto and Nifty FMCG closed higher from Friday’s closing levels. According to Trendlyne’s sector dashboard, food beverages & tobacco emerged as the top-performing sector of the day with a rise of over 1.8%.

Most European indices trade in the red. US indices futures trade lower indicating a negative start. According to Hamburg Commercial Bank, Eurozone Purchasing Managers Index dropped to 49.9 in June against estimates of 50.3. The May PMI stood at 52.8

  • Relative strength index (RSI) indicates that stocks like JBM Auto, Angel One, Blue Dart Express and Bajaj Finserv are in the overbought zone.

  • RBL Bank and LTIMindtree touch their 52-week highs of Rs 194.2 and Rs 5,430 respectively. The former has risen by 12.1% in the past month, while the latter increased by 4.9%.

  • G R Infraprojects is rising as it announces that its subsidiary has executed a concession agreement with NHAI for the construction of a six-lane highway. The project cost stands at Rs 1,248.4 crore. The stock shows up in a screener for companies with zero promoter pledges.

  • Macrotech Developers falls despite its pre-sales revenue rising by 17% YoY to Rs 3,350 crore in Q1FY24. Although its collection has fallen by 8% YoY to Rs 2400 crore, the net debt currently stands at Rs 7,260 crore. The company appears in a screener of stocks with no promoter pledge.

  • Senco Gold’s Rs 405 crore IPO gets bids for 2.68X the available 94.2 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 3.67X of the available 47.1 lakh shares on offer.

  • Minda Corporation rises as Societe Generale buys a 0.7% equity stake (17,28,713 shares) in the company. The deal has been executed at an average price of Rs 281 per share, totalling to Rs 48.6 crore. The company also appears in a screener of stocks with increasing FII/FPI shareholding.

  • Larsen & Toubro's construction business secures an EPC order worth Rs 1,000-2,000 crore for an office space development in Mumbai. It will be constructed using composite steel construction technology. The project is estimated to be completed in 2026.

  • AU Small Finance Bank falls as its Q1FY24 gross advances improve by 29% YoY and total deposits increase by 27% YoY. However, its CASA ratio declines by 3.8% YoY. It appears in a screener for stocks with improving cash flow from operations.

  • The Association of Mutual Funds in India (AMFI) downgrades FSN E-Commerce (Nykaa) to the midcap category from the largecap after a 42% fall in its stock price from its 52-week high. Similarly, JSW Energy, Tata Elxsi, Macrotech Developers, and other companies have also been downgraded to the midcap category.

  • Axis Direct maintains 'Buy' rating on Federal Bank with Rs 155 target price, implying 15.8% upside. Despite margin pressure in H1FY24, the brokerage expects margins to recover in H2 with higher-yielding products and stable cost of funds. It estimates the bank’s net profit to grow at a CAGR of 18.4% over FY23-25.

  • Hindustan Oil Exploration is rising after HDFC Bank buys a 6.39% stake (84.4 lakh shares) in the company today.

  • Aurobindo Pharma rises as its subsidiary, CuraTeQ Biologics, announces positive results for phase three clinical trials of its Trastuzumab biosimilar. This drug, used in the treatment of breast cancer, has been found to be equivalent to its European counterpart, Herceptin. The company appears in a screener of stocks with increasing FII/FPI shareholding.

  • Bandhan Bank is falling despite its loans and advances increasing 6.7% YoY to Rs 1 lakh crore in Q1FY24. The bank's CASA deposits decline 2.8% YoY, causing its CASA ratio to contract by 7.2 percentage points to 36%. It appears in a screener of stocks with prices below their short, medium, and long-term averages.

  • PKH Ventures withdraws its IPO due to muted response from investors, particularly qualified institutional buyers (QIB). The IPO, which was open for subscription from June 30 to July 4, received bids for 65% of the available 2.6 crore shares on offer.

  • Yes Bank's net advances grow by 10% YoY in Q1FY24, deposits increase by 13.5% YoY and CASA ratio rises by 8.4 percentage points YoY. The bank appears in a screener of stocks with increasing quarterly revenue.

  • Gensol Engineering rises as it receives an order worth Rs 277 crore for supplying trackers and developing solar power projects in Andhra Pradesh, Chhattisgarh and Kerala, among others.

  • Bharat Heavy Electricals is rising as it signs an agreement with General Electric Technology GmbH, Switzerland, to provide gas turbines that can utilise fuel mixtures such as hydrogen, methanol, syngas, and operate in hybrid configurations. This development adds to India's energy revolution. It appears in a screener of stocks with strong momentum.

  • Tata Consultancy Services and HCL Technologies rise 3.9% and 2.6% respectively over the past week, ahead of their Q1FY24 results on July 12.

  • India’s Services PMI declines to 58.5 in June from 61.2 in May. However, the PMI reading has remained above the 50 mark for 23 consecutive months.

  • One97 Communications (Paytm) is rising as its average monthly transacting users in Q1FY24 rises 23% YoY to 9.2 crore, while its merchant payment volumes grow 37% YoY. The loan distribution business sees its disbursements jump 167% YoY to Rs 14,845 crore. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

  • Strides Pharma Science falls as its subsidiary, Stelis Biopharma, signs a binding term sheet with Syngene International to divest its manufacturing facility in Bengaluru. The acquisition will be done at Rs 702 crore. Syngene will further invest Rs 100 crore to repurpose the facility.

  • CLSA maintains its 'Sell' rating on Hero MotoCorp with a target price of Rs 2,708. The brokerage believes that the company is losing market share in its core segments and says there is rising competition in the 2-wheeler segment. However, it expects that the launch of X440 will help the firm gain market share in the 250cc segment.

  • Elevation Capital VI FII Holdings sells a 2.1% stake in TCNS Clothing for approx Rs 53 crore in a bulk deal on Tuesday.

  • Samvardhana Motherson International rises as its subsidiary, SMRP B.V, enters into an agreement to acquire an 81% stake in Yachiyo 4W. The cost of acquisition is at an equity value of JPY 22.9 billion (Rs 1,301 crore). The target company is engaged in the production of sunroofs, fuel tanks, and other resin products.

  • IndusInd Bank’s net advances in Q1FY24 rise by 21% YoY to Rs 3 lakh crore, while its deposits grow by 15% YoY. However, the bank’s CASA ratio falls by 3.3 percentage points. The bank shows up in a screener for stocks with high Piotroski scores, along with high RoE and EPS growth.

Riding High:

Largecap and midcap gainers today include Samvardhana Motherson International Ltd. (90.30, 6.05%), Bajaj Auto Ltd. (4,890.05, 5.72%) and Divi's Laboratories Ltd. (3,747.95, 5.57%).

Downers:

Largecap and midcap losers today include Dixon Technologies (India) Ltd. (4,206.10, -3.49%), HDFC Bank Ltd. (1,673.30, -3.18%) and Housing Development Finance Corporation Ltd. (2,796.15, -3.07%).

Movers and Shakers

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (88.80, 12.05%), Bombay Burmah Trading Corporation Ltd. (1,102.05, 8.82%) and Aegis Logistics Ltd. (353.05, 7.56%).

Top high volume losers on BSE were KIOCL Ltd. (185.90, -2.08%), FSN E-Commerce Ventures Ltd. (143.35, -1.48%) and KNR Constructions Ltd. (245.00, -0.91%).

MMTC Ltd. (33.40, 4.70%) was trading at 13.4 times of weekly average. Sun Pharma Advanced Research Company Ltd. (218.65, 6.27%) and Jindal Worldwide Ltd. (321.40, 4.49%) were trading with volumes 6.8 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

44 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,890.05, 5.72%), Bajaj Finance Ltd. (7,838.75, -0.28%) and Bank of Baroda (205.20, 1.41%).

10 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (353.05, 7.56%) and Sun Pharma Advanced Research Company Ltd. (218.65, 6.27%). 4 stocks slipped below their 200 SMA including Eicher Motors Ltd. (3,309.75, -2.71%) and KNR Constructions Ltd. (245.00, -0.91%).

 
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The Baseline
04 Jul 2023
Five analyst picks this week
By Suhas Reddy
  1. Trent: Sharekhan maintains its ‘Buy’ rating on this retailing company with a target price of Rs 2,025. This implies an upside of 15.1%. The analysts at the brokerage remain positive about the firm’s growth prospects due to its “consistent double-digit same-store-sales growth (SSSG) that beats peers and well-defined store expansion strategy”. They add that the company has maintained its leadership position in FY23 with same-store sales growth in the Westside brands and the expansion of the Zudio business. 

The analysts are also upbeat about Trent's ability to generate a healthy cash flow of Rs 450 crore, despite a capex of Rs 215 crore in FY23. They expect robust revenue growth over the next two financial years to be driven by consistent high footfall, growing online traction, increased billing size and new store additions. The analysts anticipate the retail giant’s revenue to grow at a CAGR of 23% over FY23-25.

  1. Chalet Hotels: ICICI Securities maintains a ‘Buy’ rating on this hotels company with a target price of Rs 603, indicating a potential upside of 37%. Analyst Adhidev Chattopadhyay is optimistic about the company's future because of its strategy to expand through ownership. This includes the expansion of existing projects and entry into long-term leases. He expects Chalet Hotels' EBITDA to grow at a CAGR of 18%, with profit margins around 45% in the coming years.

Chattopadhyay believes that the company is well-positioned to take advantage of the hotel industry's expected growth over the next five years. He highlights that the company has set a target to increase its room capacity by 40% by FY26. Additionally, Chalet plans to expand its rental portfolio to reduce risk, considering the cyclical nature of the hotel business. Chattopadhyay predicts robust revenue growth for the company, with an expected CAGR of 11%. This would bring its revenue to an estimated Rs 1,390 crore in FY26.

  1. Bharat Forge: HDFC Securities maintains its ‘Buy’ rating on this industrial products manufacturer with a target price of Rs 998. This implies an upside of 18.7%. Analysts Aniket Mhatre and Sonaal Sharma are upbeat about the company’s long-term growth prospects given its diversified portfolio mix, which provides a more stable revenue stream. They also expect the company’s subsidiaries in Europe and the US to gradually recover in the coming quarters on the back of a robust orderbook. 

The analysts believe that investors' concerns regarding “a slowdown in US Class 8 truck orders in 2024 hurting business growth, are exaggerated as “the company has multiple growth drivers to offset this slowdown”. They expect new defence orders, an order backlog in aerospace, and rising exports to drive top-line growth. Mhatre and Sharma estimate the company’s revenue to grow at a CAGR of 12.6% over FY23-25. 

  1. Ultratech Cement: Axis Securities maintains a 'Buy' recommendation on this cement and cement products company, targeting a price rise of 10.5% to Rs 9,350. Analysts Uttam Kumar Srimal and Shikha Doshi have an optimistic view about the company's future due to several factors. First, they anticipate an expansion in the firm's production capacity to meet the growing market demand for cement. Second, they predict that a decline in fuel costs will lead to an improvement in the company's profit margins in the upcoming quarters.

The analysts also highlight the potential benefits of digitising sales channels, using a blended cement strategy, and optimising resource utilisation. All of these are expected to boost the company's profit margins. They also acknowledge the significant industry experience of the company's promoters, which spans several decades. Additionally, the company carries a low debt burden and consistently generates positive cash flow, according to Srimal and Doshi. They project a CAGR of 9% in the company's volume and revenue for FY23-25.

  1. ICICI Lombard General Insurance Co: Motilal Oswal keeps its ‘Buy’ rating on this general insurance company and raises the target price to Rs 1,550 from Rs 1,400. This indicates an upside of 16.6%. Analysts Prayesh Jain, Nitin Aggarwal and Nemin Doshi believe that the Indian general insurance industry is poised for robust growth, driven by new reforms and initiatives introduced by the Insurance Regulatory and Development Authority (IRDAI). They are positive about the company’s strategy to capitalise on industry tailwinds, with market share expansion, improving profitability, robust risk management and good customer service. 

In the health segment, the analysts expect the firm’s profitability to improve through price hikes and enhanced efficiency of the agency channel. However, they anticipate slower growth in the motor segment “as the company awaits the rationalisation of pricing in the Own Damage (OD) insurance segment”. The analysts estimate the firm’s net profit to grow at a CAGR of 20% over CY23-25. 

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Jul 2023
Market sees record close, Senco Gold’s IPO gets bids for 69% of the shares on offer

Trendlyne Analysis

Nifty 50 closed at 19,389.00 (66.5, 0.3%), BSE Sensex closed at 65,479.05 (274, 0.4%) while the broader Nifty 500 closed at 16,556.05 (28.1, 0.2%). Market breadth is in the red. Of the 1,968 stocks traded today, 809 were gainers and 1,100 were losers.

Indian indices fell from their day highs but still closed at their all-time highs, with the volatility index, Nifty VIX, rising by 1.4%. The benchmark Nifty 50 index has risen over 3.7% in the past week. Eicher Motors closed over 6% lower as Hero MotoCorp and Harley-Davidson launched a new premium motorcycle, X440, in India with a starting price of Rs 2.29 lakh.

Nifty Smallcap 100 closed in the green but Nifty Midcap 100 closed lower, despite the benchmark index closing in the green. Nifty IT and Nifty PSU Bank closed higher than their Monday’s close.  According to Trendlyne's sector dashboard, Diversified was the top-performing sector of the day.

Major Asian indices closed flat or higher, except for Japan’s Nikkei 225 index, which closed nearly 1% lower. European stocks traded mixed, despite the US index futures trading marginally lower. US markets will remain closed today in observance of the Independence Day holiday.

  • Money flow index (MFI) indicates that stocks like Nippon Life India Asset Management, Zydus Lifesciences, JBM Auto and Patanjali Foods are in the overbought zone.

  • HPL Electric & Power surges almost 20% as it bags an order worth Rs 903 crore for smart meters. The company's order book currently stands at approximately Rs 2,250 crore.

  • 360 One Wam and Global Health touch their 52-week highs of Rs 490 and Rs 692.3 respectively. The former has risen by 15% over the past month, while the latter increased by 17.2%.

  • NBCC (India) is rising as the Ministry of External Affairs sanctions Rs 261.7 crore for the redevelopment of the MEA Housing Complex (Old) at Kasturba Gandhi Marg, New Delhi. It appears in a screener of stocks with no debt.

  • GR Infraprojects signs an engineering, procurement and construction (EPC) agreement worth Rs 587.6 crore with East Coast Railway for the construction of tunnels (T-4, T-5, T-6 and T-7) on the Khurda-Bolangir new rail line project. The estimated time of completion of the project is 30 months for T-4, 18 months each for T-5 and T-6, and 24 months for T-7.

  • Eicher Motors is falling as Hero MotoCorp and Harley-Davidson launch a new bike, X440, in India. This model is a premium motorcycle with a starting price of Rs 2.29 lakh. Co-developed by the company and Harley-Davidson, this bike will likely be a competitor to Royal Enfield's Classic 350 and Hunter 350.

  • Senco Gold’s Rs 405 crore IPO gets bids for 69% of the available 94.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.12X of the available 47.1 lakh shares on offer.

  • PKH Ventures’ Rs 379 crore IPO gets bids for 65% of the available 2.6 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 99% of the available 89.7 lakh shares on offer.

  • According to S&P Global Ratings, Indian companies are in a favourable financial position due to the improvement in their balance sheets and strong economic growth in the country. The rating agency estimates that the aggregate EBITDA of corporate and infrastructure firms will be around 50% higher in FY24 compared to the past five years.

  • Zydus Lifesciences receives final approval from the US FDA for oxcarbazepine tablets, which are used to treat epilepsy. The tablets are estimated to have had annual sales of $105 million in the year ending May 2023. The drug will be manufactured at the company's formulation manufacturing facility in Himachal Pradesh.

  • KRChoksey maintains its ‘Buy’ rating on Axis Bank with a target price of Rs 1,160. This implies an upside of 18.6%. The brokerage remains positive about the bank’s prospects given its strong business momentum trends, improving operating performance, healthy asset quality and successful integration of the CITI business. It expects the firm’s net profit to grow at a CAGR of 79.4% over FY23-25.

  • Bharti Airtel is falling as Reliance Jio launches a Jio Bharat 4G feature phone for Rs 999. Beta trials for the phone will start on Friday for the first 1 million buyers, offering unlimited voice calls and 14 GB data for Rs 123 per month. Jeffries India states that Bharti Airtel could potentially lose 11 million subscribers a year after the release of the phone.

  • Senco Gold raises Rs 121.5 crore from anchor investors ahead of its IPO by allotting 38.32 lakh shares at Rs 317 per share. Investors include Ashoka WhiteOak Emerging Markets Trust, Nippon Life India, Bandhan Mutual Fund, Templeton India Value Fund, Sundaram Mutual Fund and Max Life Insurance Co.

  • L&T Finance Holdings is falling as Kotak Institutional Equities downgrades its rating on the company to a ‘Sell’ from 'Reduce', with a revised target price of Rs 95. The brokerage believes that the firm will continue to face the challenges of low near-term growth and muted RoE.

  • Media stocks like Dish TV India, TV18 Broadcast, Zee Entertainment Enterprises, Hathway Cable & Datacom and Sun TV Network are rising in trade. Barring PVR INOX, all other constituents of the broader sectoral index, Nifty Media, are trading in the green.

  • Mahindra & Mahindra Financial Services, Indus Towers,UPLand Polycab India witness a significant surge in mutual fund holdings in the past month.

  • PSU banks like Punjab National Bank, Bank of India, Bank of Baroda, Indian Bank and Canara Bank are rising in trade. Barring Punjab & Sind Bank, all other constituents of the broader sectoral index, Nifty PSU Bank, are also trading in the green.

  • Morgan Stanley maintains its ‘Equal-weight’ rating on Avenue Supermarkets with a target price of Rs 3,786, citing a lower-than-anticipated growth in Q1FY24. Meanwhile, the company's standalone revenue has risen by 18.1% YoY to Rs 11,584.4 crore in Q1.

  • Foreign institutional investors invest Rs 40,015.6 crore in the equity market over the past month, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 33,681.9 crore from foreign investors. Mutual funds also invest Rs 7,670 crore in the Indian markets.

  • Shares of HMA Agro Industries debut on the bourses at a 6.8% premium to the issue price of Rs 585. The Rs 480 crore IPO has received bids for 1.43 times the total shares on offer.

  • Ameera Shah, Managing Director of Metropolis Health, says the company targets to maintain its margin at around 25% despite lab expansion. She expects the contribution from the new network and premium wellness to rise from 3-5% and 15-20% respectively.

  • Vijay Kedia converts Atul Auto's 7.24% warrants into equity shares on Monday. He now holds a 12.86% stake in the company.

  • Bajaj Finance surges to its 52-week high of Rs 7,918 per share as its AUM grows 32% YoY to Rs 2.7 lakh crore in Q1FY24. The growth is backed by improvements in new loans booked and deposits. The lender shows up in a screener of stocks with improving return on assets over the past two years.

  • IDFC rises as the board of IDFC First Bank approves a merger proposal with IDFC and IDFC Financial Holding Co. However, IDFC First Bank is declining as the merger stands to favour IDFC shareholders by 16%. IDFC shareholders will receive 155 IDFC First Bank shares for every 100 shares held.

  • Genus Power Infrastructure is rising as it receives a letter of award worth Rs 2,207.5 crore for the installation and commissioning of 27.69 lakh smart prepaid meters. Joint Managing Director of the firm, Jitendra Kumar Agarwal says, “This order win provides added visibility to our revenues for coming years. It also signals a strong start to order inflow in FY24”.

  • Tube Investments of India enters the small commercial electric vehicle segment through its subsidiary, TI Clean Mobility. It partners with Anand Jayachandran, promoter of Jayem Automotives, for a joint investment in a new company. TI Clean Mobility will invest Rs 160 crore and Jayachandran will give Rs 40 crore. The company’s arm also agrees to acquire a 50% stake in Jayem Automotives for Rs 206 crore to improve its product development capability.

Riding High:

Largecap and midcap gainers today include Bajaj Finance Ltd. (7,892.00, 7.62%), Punjab National Bank (57.40, 6.59%) and Bajaj Finserv Ltd. (1,631.95, 5.96%).

Downers:

Largecap and midcap losers today include Eicher Motors Ltd. (3,417.95, -5.86%), IDFC First Bank Ltd. (79.10, -3.48%) and FSN E-Commerce Ventures Ltd. (144.40, -2.50%).

Movers and Shakers

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

Top high volume gainers on BSE included Aster DM Healthcare Ltd. (322.20, 12.28%), Bajaj Finance Ltd. (7,895.95, 7.68%) and Radico Khaitan Ltd. (1,365.15, 6.81%).

Top high volume losers on BSE were Eicher Motors Ltd. (3,417.95, -5.86%) and Minda Corporation Ltd. (282.70, -3.78%).

IDFC Ltd. (111.90, 2.47%) was trading at 8.0 times of weekly average. La Opala RG Ltd. (451.25, 4.08%) and Bajaj Finserv Ltd. (1,631.95, 5.96%) were trading with volumes 7.1 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks overperformed with 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Bajaj Finance Ltd. (7,892.00, 7.62%), Bank of Baroda (203.30, 2.11%) and Can Fin Homes Ltd. (797.40, 2.43%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (520.60, -4.22%).

13 stocks climbed above their 200 day SMA including Bayer Cropscience Ltd. (4,613.15, 4.27%) and Federal Bank Ltd. (132.80, 4.12%). 6 stocks slipped below their 200 SMA including Praj Industries Ltd. (372.90, -1.04%) and JK Lakshmi Cement Ltd. (700.00, -1.03%).

 
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The Baseline
03 Jul 2023
Chart of the Week: InterGlobe Aviation is increasingly dominant in the airline industry
By Akshat Singh

InterGlobe Aviation has been in the news with a landmark agreement to purchase 500 aircraft. The company also crossed a milestone of Rs 1 trillion in market capitalization on June 28, 2023 – it’s one of just 56 companies to hit this number. In this edition of Chart of the Week, we analyse the factors driving the performance of InterGlobe Aviation's stock from July 2021 to June 2023. 

InterGlobe Aviation's stock price has picked up pace in the past six months, after rising by 14.4% in 2022. IndiGo has held on to its position as the market leader, with a market share of 55.7% in Q1CY23 and an average market share of 56% from January 2021 to May 2023. 

Indigo’s dominance as a budget airline confirms what many airline companies across the world are discovering - customers may complain about bad food, limited legroom and zero perks, but finally it’s the cheap ticket that is the main deciding factor. 

In July 2021, the aviation company’s share price gained 15.6% due to considerable improvements in market share, passenger load factor, and available seat kilometres (ASK). ASK represents the total capacity available for sale by the airline and is a key indicator of its ability to fill up its capacity, and its operational performance.

IndiGo resumed UAE flights on August 20, 2021, after 17 months, leading to a 14.2% increase in share price during August-September. However, in November 2021, despite the government permitting 100% capacity, IndiGo's passenger load factor only improved by 2.5%, lagging behind Air India and GoAir (now GoFirst). As a consequence, the stock price dropped by 12.4% during the month. It was reported that IndiGo received 36 new planes during Jan-Nov 2021. 

With a 20% growth in its stock price in 2021, InterGlobe Aviation entered 2022 on a  high. But on January 10, 2022, the company reduced its capacity by 20% due to another Covid-19 wave. From March to May, the company lost 20.2% of its share price on the back of weak Q4FY22 results. It posted a net loss of Rs 1,681.8 crore amid weak market sentiment. However, there was a significant recovery in air traffic in June 2022. During this month, IndiGo’s market share grew by 1.3 percentage points MoM, resulting in a 16.3% rise in stock price. 

In July 2022, the price of aviation turbine fuel remained unchanged at an all-time high of Rs 1.4 lakh per kilolitre. Additionally, the Indian currency depreciated 6.3% against the US dollar from the start of the year. This has a significant impact because while a large portion of an airline's expenses (around 70%) are in dollars, including fuel, rental, and maintenance costs, most of its revenue is earned in rupees. When the rupee depreciates, it results in higher expenses, impacting the airline's profit margins. 

Another factor was multiple technical snags faced by SpiceJet, resulting in the DGCA ordering the airline to operate only 50% of its flights for eight weeks. As a result, InterGlobe’s market share increased by 1.9% to 58.9%. This resulted in an 8% growth in its stock price in July 2022. 

Promoter Rakesh Gangwal sold a 2.8% equity stake in the company on September 8, 2022, as part of his plans to exit the business by FY25. This caused the stock to plunge by 5% in the week ending September 11, 2022. In addition, the Chief Executive Officer (CEO), Ronojoy Dutta, retired on September 30, resulting in an 8% drop in its share price during the month. 

With the entry of budget airline Akasa Air on August 7, 2022, IndiGo had to offer a 20-25% discount on fares. This led to an 11.6% fall in its share price during August-September. On November 15, the company began operating its inaugural A321 Freighter aircraft on the Delhi-Mumbai route. Additionally, on November 23, 2022, it started services to Portugal and Switzerland through a codeshare collaboration with Turkish Airlines. These developments helped the stock price surge by 11% in November 2022.

In 2022, the stock price experienced a modest 8% gain. However, 2023 has been more promising, with the stock already soaring 28% as of June. The year began with the airline’s international operations recovering to pre-COVID levels, accounting for 23% of total capacity, while the fleet size expanded to 300 aircraft. On February 16, the Gangwal family sold another 4% equity stake in the company. 

Domestic passenger traffic in Q4FY23 grew by an impressive 51.7% YoY, leading to a 2.4% market share gain for IndiGo in January-March 2023. In February 2023, the company observed a 6.3% MoM decline in ASK. GoFirst filed for insolvency on May 3, 2023, enabling IndiGo to capture an additional 4% market share previously held by GoFirst. This sparked an 8% rally in InterGlobe's shares. 

The company’s recent purchase agreement - the largest in commercial aviation - of 500 Airbus aircraft on June 19, 2023, indicates a strategy shift. IndiGo is now purchasing aircraft instead of leasing them, and its debt levels have consequently increased at a three-year CAGR of 28.7%.

As a result, annual interest expenses have also been increasing at a five-year CAGR of 55.9%. In contrast, lease rentals decreased by 93% to Rs 311.7 crore in FY22. This, along with crossing a market capitalization of Rs 1 trillion, drove the stock to gain 29.7% in value during May-June

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Jul 2023
Market closes higher, PKH Ventures’ IPO gets bids for 30% of the available shares on offer

Trendlyne Analysis

Nifty 50 closed at 19,322.55 (133.5, 0.7%) , BSE Sensex closed at 65,205.05 (486.5, 0.8%) while the broader Nifty 500 closed at 16,527.95 (98.0, 0.6%). Of the 1,998 stocks traded today, 1,073 were gainers and 863 were losers.

Indian indices maintain gains from the afternoon session and close in the green, with the Nifty 50 closing above the 19,300 mark. The volatility index, Nifty VIX, rises above 11 at the close.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty FMCG closed higher from Friday’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 3%.

Most European indices trade in the green. US indices futures trade higher indicating a positive start. Tesla stock price surged post-market hours as the June quarter vehicle deliveries beat analyst estimates by 4%. According to Goldman Sachs, Tesla’s recent price cut measures to boost sales have paid off.

  • Bank of Baroda sees a long buildup in its July 27 future series as its open interest rises 6.5% with a put-call ratio of 0.72.

  • Piramal Enterprises' annual return on equity (RoE) stands at 32.1% in FY24, rises 12.7 percentage points over the past five years.

  • Bajaj Auto is falling as its total monthly wholesales in June decline by 2% YoY to 3,40,981 units on the back of its overall two-wheeler wholesales falling by 7% YoY. This dip in sales is due to a fall in exports in the two-wheeler and commercial vehicle segments. The stock shows up in a screener for companies with declining net cash flows.

  • Lakshmi Machine Works, Ultratech Cement, Kennametal India and Reliance Industries are trading above their third resistance or R3 levels.

  • Asset management cos, biotechnology and movies & entertainment industries rise by more than 9% over the past week.

  • Zee Entertainment is rising as reports suggest that the firm has settled all its dues with IndusInd Bank. In light of this settlement, the National Company Law Appellate Tribunal (NCLAT) closes the insolvency resolution process.

  • IIFL finance raises Rs 1433.7 crore through the external commercial borrowing (ECB) route from HSBC, Union Bank and Bank of Baroda. The company expects these funds to strengthen their ALM position and support core business growth.

  • PKH Ventures’ Rs 379 crore IPO gets bids for 30% of the available 2.6 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 45% of the available 89.7 lakh shares on offer.

  • PSU Banks likeCanara Bank, Bank of Maharashtra, Bank of India, Punjab National Bank and Bank of Baroda are rising in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the green.

  • Maruti Suzuki India is falling as its total wholesales in June grows marginally by 2.3% to 1,59,418 units, while its total domestic sales increases by 5.8% YoY. The firm’s total domestic passenger vehicle wholesales rise 8.4% YoY. The company believes that the shortage of electronic components has had a minor impact on the production of vehicles.

  • Adani Ports' cargo handled grows 11.5% YoY to 101.4 MMT in Q1FY24, backed by growth in the container, liquids & oil and dry bulk segments.

  • Metal & mining stocks like NMDC, Jindal Steel & Power, APL Apollo Tubes, Steel Authority of India and National Aluminium Co are rising in trade. All constituents of the broader sectoral index, BSE Metal, are also trading in the green.  

  • Goldman Sachs maintains its 'Buy' rating on Ultratech Cement with a target price of Rs 8,270. The brokerage highlights the company's strong volume growth of 20% in Q1FY24, surpassing their estimate of 16%. While the sector has limited upside, Ultratech Cement remains their top pick.

  • ICICI Securities initiates coverage on Chalet Hotels with a ‘Buy’ rating and a target price of Rs 603, implying an upside of 37.7%. The brokerage is optimistic about the company’s strategy of expanding its hotel portfolio through the ownership route and long-term leases during the industry upcycle. It believes the firm’s robust operating cash flows are sufficient to fund its capex plans. It expects the firm’s revenue to grow at a CAGR of 19.1% over FY23-26.                   

  • Ashish Kacholia buys a 2.74% stake in Vasa Denticity for approximately Rs 13.3 crore in a bulk deal on Friday.             

  • APL Apollo Tubes is rising as it reports a record-high increase of 56% YoY in sales volume for Q1FY24, supported by the highest contribution from its value-added segment.                                                                                                            

  • India’s manufacturing PMI falls to 57.8 in June compared to 58.7 in May. The PMI reading, however, stays above the 50-mark on the back of strong demand and output.

  • Mahindra & Mahindra is rising as its overall automobile wholesales in June increase by 15% YoY to Rs 62,429 units, led by a 22% YoY growth in SUV sales. The firm’s farm equipment sector’s total tractor wholesales improve by 6.3% YoY on the back of healthy domestic demand. It shows up in a screener for stocks with improving net cash flows over the past two years.

  • TVS Motor Co’s total monthly wholesales grow 3% YoY to 3,16,411 units, driven by domestic two-wheeler wholesales rising 22% YoY. However, the company’s total exports decline by 30.8% YoY due to a sharp fall in two-wheeler exports.

  • Kansai Nerolac Paints rises as reports indicate that the management has approved the sale of a land parcel in Kavesar, Maharashtra, for Rs 671 crore to Shoden Developers, a part of House of Hiranandani. It appears in a screener of stocks with strong momentum.

  • Oil & gas stocks like Hindustan Petroleum Corp, Gujarat Gas, Bharat Petroleum Corp, Indian Oil Corp and Indraprastha Gas are rising in trade. All constituents of the broader sectoral index, BSE Oil & Gas, are also trading in the green.

  • Morgan Stanley downgrades its rating on Apollo Tyres to ‘Equal-weight’ from Overweight with a target price of Rs 425, citing limited upside for the stock. However, the brokerage says the company is on track to meet its RoCE target.

  • Coal India is falling despite a 12.4% YoY increase in monthly production volumes to 58 million tonnes (MT) in June. The company's production during Q1FY24 has grown by nearly 10% YoY to 175.5 MT and the management believes it is on track to achieving its production target of 780 MT for FY24.

  • The Securities and Exchange Board of India imposes a fine of Rs 30 lakh on Vedanta for incorrect disclosures on the exchange and the company's website regarding announcements made last year.

  • Mazagon Dock Shipbuilders is rising as it signs a contract worth Rs 2,724.6 crore with the Indian Navy for medium refit cum life certification (MRLC) of a second Shishumar class submarine, INS Shankush.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (289.00, 5.96%), Canara Bank (318.50, 5.52%) and Bank of India (77.30, 5.03%).

Downers:

Largecap and midcap losers today include Persistent Systems Ltd. (4,861.75, -2.98%), Cummins India Ltd. (1,890.00, -2.73%) and Bandhan Bank Ltd. (235.45, -2.73%).

Volume Rockets

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

Top high volume gainers on BSE included L&T Finance Holdings Ltd. (137.35, 7.56%), Latent View Analytics Ltd. (374.90, 6.61%) and IDFC Ltd. (109.20, 6.33%).

Top high volume losers on BSE were Anupam Rasayan India Ltd. (1,004.60, -2.47%), Krishna Institute of Medical Sciences Ltd. (1,756.30, -1.75%) and Tamilnad Mercantile Bank Ltd. (431.00, -1.56%).

Godrej Agrovet Ltd. (473.05, 4.26%) was trading at 21.0 times of weekly average. HLE Glasscoat Ltd. (676.40, 4.29%) and Rallis India Ltd. (204.55, 3.78%) were trading with volumes 11.2 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

50 stocks made 52 week highs,

Stocks touching their year highs included - Abbott India Ltd. (23,239.00, -0.77%), Amara Raja Batteries Ltd. (688.35, 1.05%) and Ashok Leyland Ltd. (167.15, -0.15%).

23 stocks climbed above their 200 day SMA including Latent View Analytics Ltd. (374.90, 6.61%) and JSW Energy Ltd. (289.00, 5.96%). 7 stocks slipped below their 200 SMA including Bandhan Bank Ltd. (235.45, -2.73%) and JK Lakshmi Cement Ltd. (707.25, -1.57%).