Nifty 50 closed at 19,993.20 (-3.2, 0.0%), BSE Sensex closed at 67,221.13 (94.1, 0.1%) while the broader Nifty 500 closed at 17,460.55 (-192.8, -1.1%). Market breadth is highly negative. Of the 1,932 stocks traded today, 162 showed gains, and 1,749 showed losses.
Indian indices pared the gains from the afternoon session and closed flat, with the Nifty 50 closing at 19,993. The volatility index, Nifty VIX, rose by 3% and closed at 11.7 points. Coal India has planned a capex of Rs 24,750 crore for 61 First Mile Connectivity (FMC) projects over the next few years.
Nifty Midcap 100 and Nifty Smallcap 100 closed sharply lower, with the benchmark index closing flat. Nifty IT and Nifty Pharma closed higher, compared to Monday’s closing levels. All other sectoral indices closed in the red. According to Trendlyne’s sector dashboard, software & services emerged as the top-performing sector of the day, with a rise of over 0.6%.
Most European indices trade in the red, except for England’s FTSE 100 and Switzerland’s SMI, which are trading in the green. US indices futures trade lower, indicating a negative start. The data released by the German Federal Statistical Office indicate that Germany’s wholesale price index (WPI) for August has increased by 0.2% MoM, against the estimates of a decline of 0.1%. The WPI for July declined by 0.2% MoM.
Larsen & Toubro sees a long buildup in its September 28 future series as its open interest rises 18.8% with a put-call ratio of 0.8.
Consumer Electricals company R R Kabel opens for IPO subscription tomorrow. The price band for the issue is Rs 983-1,035 per share. The size of the issue is Rs 1,964 crore, comprising a fresh issue of Rs 180 crore and an offer for sale for Rs 1,784 crore.
Realty stocks like Indiabulls Real Estate, Prestige Estates Projects, Sobha, Brigade Enterprises and Oberoi Realty are rising in trade. The broader sectoral index, BSE Realty, is also trading in the red.
- CareEdge Ratings projects GRMs (gross refinery margins) of Indian refinery companies to remain in the range of $9-10 per barrel for the rest of FY24. This is despite increasing crude oil prices and possible constraints in the availability of Russian crude.
Axis Direct keeps its ‘Buy’ rating on HG Infra Engineering with a target price of Rs 1,140, implying an upside of 19.5%. The brokerage maintains its favourable outlook toward the firm’s prospects due to its robust order book, strong execution capabilities and focus on diversification. It expects the company’s net profit to grow at a CAGR of 19.7% over FY23-25.
Transport Minister Nitin Gadkari clarifies that the government is not actively considering any proposal on imposing an additional 10% GST on diesel vehicles.
Media stocks like Dish TV India, TV18 Broadcast, Hathway Cable & Datacom, Navneet Education and Network18 Media and Investments are falling. The broader sectoral index, Nifty Media, is also trading in the red.
EMS' Rs 321.3 crore IPO gets bids for 75.3X the available 1.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 29.8X the available 54.6 lakh shares on offer.
Jefferies maintains its ‘Hold’ rating on Havells India but raises the target price to Rs 1,420 as it expects the company to expand its network into tier 3 cities and rural areas. It also highlights Llyod’s healthy sales growth. However, it keeps its recommendation as the current valuation already reflects the positives.
Coal India plans a capex of Rs 24,750 crore for 61 First Mile Connectivity (FMC) projects over the next few years. The total capacity of the projects is 763.5 MTPA and they will be completed in three phases.
Ajmera Realty & Infra India declines in trade despite receiving an order worth Rs 330 crore to redevelop four residential societies at Yogi Nagar Borivali West, Mumbai. It appears on a screener of volume shocker stocks.
Hindalco Industries signs a technology partnership with Italy-based Metra SpA to utilise Metra's aluminium extrusion and fabrication technology to construct high-speed rail coaches in India.
Indian rupee appreciates 10 paise to 82.93 against the US dollar in early trade today, led by a positive trend in domestic equities and foreign fund inflows.
Auto stocks like Ashok Leyland, Escorts Kubota, Mahindra & Mahindra and Tata Motors are falling as Transport Minister Nitin Gadkari says he will propose imposing an additional 10% tax on diesel engine vehicles.
SpiceJet is falling as it announces its plan to complete the payment of Rs 100 crore to Kal Airways by paying Rs 22.5 crore today, in addition to the Rs 77.5 crore already paid. The company also acknowledges to pay $1.5 million to Credit Suisse as per a court directive. It has already paid a total of $8 million to Credit Suisse as per consent terms.
TVS Supply Chain Solutions is falling as its Q1FY24 net loss widens to Rs 65.3 crore from Rs 1.8 crore in Q1FY23. Its revenue also drops by 12.3% YoY on the back of a 35% YoY decline in the network solutions segment. The stock features in a screener for companies with zero promoter pledge.
- Ramesh Iyer, Vice-Chairman & MD of Mahindra & Mahindra Financial Services, says that growth in H2FY24 will be significantly higher than in H1. He anticipates the growth rate to be in the mid-teens for FY24, with disbursal growth similar to FY23 levels. He adds that the NIM guidance of more than 7% will be maintained in the long-term perspective.
Power Grid Corp receives a Letter of Intent to establish an interstate transmission system project in Rajasthan. The company will build, own and operate a 20-gigawatt interstate transmission project. The stock shows up in a screener for companies with Return on Capital Employed (RoCE) improving over the past two years.
HDFC Mutual Fund buys a 0.6% stake in KNR Constructions for approx Rs 42.4 crore in a bulk deal on Monday.
Norges Bank sells a 1.1% stake in Mahanagar Gas for approx Rs 111.8 crore in a bulk deal on Monday.
- UBS maintains its ‘Neutral’ rating on Hindustan Unilever with a target price of Rs 2,860. The brokerage expects the company’s volume recovery to be moderate in the near term and the pace of volume recovery to be impacted by the increasing regional competition.
Reliance Industries' subsidiary, Reliance Retail Ventures, announces KKR's plan to invest Rs 2,069.5 crore in the company for a 0.3% stake. This will take KKR's holding in the company to 1.4%.
Power stocks like NHPC, JSW Energy, Bharat Heavy Electricals and Adani Power fall more than 3% in trade. All constituents of the broader BSE Power index are also trading in the red.
Larsen & Toubro touches its all-time high of Rs 3,009 per share as its board increases the buyback price to Rs 3,200 from Rs 3,000 per share. The board also reduces the number of shares proposed to be bought back to 3.1 crore (or 2.2% stake) from 3.3 crore.
Lupin is rising as its board of directors approves a business transfer agreement with its subsidiary, Lupin Manufacturing Solutions, for approximately Rs 800 crore. The agreement involves the transfer of the company's active pharmaceutical ingredients (API) manufacturing plants at Dabhasa and Visakhapatnam, and select R&D operatioins.
Largecap and midcap gainers today include Tata Consultancy Services Ltd. (3,580.80, 2.88%), Larsen & Toubro Ltd. (2,944.10, 1.72%) and Infosys Ltd. (1,501.10, 1.67%).
Largecap and midcap losers today include Tube Investments of India Ltd. (3,365.60, -8.82%), REC Ltd. (248.35, -8.17%) and JSW Energy Ltd. (397.15, -7.91%).
23 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included ITI Ltd. (167.25, 12.02%), Blue Dart Express Ltd. (6,628.05, 3.22%) and J B Chemicals & Pharmaceuticals Ltd. (2,924.10, 2.83%).
Top high volume losers on BSE were NLC India Ltd. (128.00, -9.51%), Indiabulls Housing Finance Ltd. (167.90, -9.12%) and SJVN Ltd. (70.35, -8.40%).
Elgi Equipments Ltd. (498.95, 2.09%) was trading at 23.6 times of weekly average. Quess Corp Ltd. (426.10, -0.23%) and Shyam Metalics and Energy Ltd. (437.90, -2.96%) were trading with volumes 8.3 and 7.1 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
44 stocks made 52 week highs, while 2 stocks hit their 52 week lows.
Stocks touching their year highs included - Adani Power Ltd. (386.30, -3.04%), Alembic Pharmaceuticals Ltd. (751.05, -1.80%) and Axis Bank Ltd. (1,000.90, 0.05%).
Stocks making new 52 weeks lows included - Bajaj Electricals Ltd. (1,132.10, -3.24%) and Vedanta Ltd. (231.80, -2.73%).
4 stocks climbed above their 200 day SMA including Blue Dart Express Ltd. (6,628.05, 3.22%) and Honeywell Automation India Ltd. (39,858.20, 1.25%). 20 stocks slipped below their 200 SMA including Sterlite Technologies Ltd. (162.65, -7.40%) and Eureka Forbes Ltd. (479.60, -5.97%).