Trendlyne Analysis
Nifty 50 lost over 200 points and closed marginally lower on a volatile day of trade. Nifty 50 tested the 16,000 mark but lost the gains and closed lower than the 15,850 level. India's services purchasing managers' index (PMI) in June rises to 59.2, the highest level since April 2011.
European stocks opened in the green but traded lower than Monday’s levels after Eurozone PMI composite fell to 52.0 in June from 54.8 in May. In reaction, the Euro fell to a new 20-year low against the Dollar. Most major Asian indices closed higher amid speculation that the US may announce a rollback of some tariffs on Chinese consumer goods. US indices futures trade higher than Friday’s levels. US markets were closed on Monday for the Independence Day holiday. Crude oil rose as a labour strike in Norway is expected to disrupt oil and gas output, tightening the supply. Investors continue to monitor the impact of aggressive rate hikes by the Central banks on global economic growth.
Nifty Smallcap 100 closed flat, following the benchmark index. Nifty Metal and Nifty Energy closed higher than Monday’s levels. Nifty IT closed in the red, following the NASDAQ 100 futures, which is trading lower.
Nifty 50closed at 15,810.85 (-24.5, -0.2%), BSE Sensexclosed at 53,134.35 (-100.4, -0.2%) while the broader Nifty 500closed at 13,461.85 (-10.8, -0.1%)
Market breadth is neutral. Of the 1,876 stocks traded today, 895 were on the uptick, and 906 were down.
Brightcom Group, Supreme Industries, Procter & Gamble Health, and ZF Commercial Vehicle Control Systems Indiaare trading with higher volumesas compared to Monday.
Cipla sees a long build-up in its July 28 future series as its open interest rises 7.6% with put to call ratio of 0.8.
India’s trade deficit widens to $25.6 billion in June 2022 from $9.6 billion in June 2021, as imports rise 51% YoY to $63.6 billion and exports rise by only 16.8% YoY to $37.9 billion. The trade deficit in Q1FY23 widens to $70.2 billion compared to $31.4 billion in Q1FY22. Imports rise 47.3% YoY to $187 billion and exports rise 22.2% YoY to $116.8 billion.
- The Centre's move to impose taxes on exports of petrol, diesel, and aviation turbine fuel, and on domestic production of crude oil could generate revenues of Rs 94,800 crore in FY23, according to Moody's Investors Service.
Britannia's shareholders reject a resolution authorising its board to make investments, loans, give guarantees, and security to another company worth up to Rs 5,000 crore. Around 29.14% of its shareholders voted against the proposal, which needed at least 75% of its shareholders to approve it.
SpiceJet is falling in trade after one of its flights travelling to Dubai from Delhi made an emergency landing in Karachi after developing a technical glitch, according to reports. All the passengers on board are safe and a replacement aircraft is sent to Karachi to pick up the passengers and transport them to Dubai.
Sugar stocks like Shree Renuka Sugars, Balrampur Chini Mills, Dalmia Bharat Sugar and Industries, Dwarikesh Sugar Industries, Bajaj Hindusthan Sugar, among others are rising in trade after the Centre intents to provide excise concession on 12% and 15% ethanol blended petrol.
Garware Technical Fibres rises as brokerage ICICI Direct initiates coverage on the stock with a 'Buy' rating, according to reports. It set a target price is set at Rs 3,695 (an upside of 21%) on the stock. The brokerage believes that increased profit over the last decade, balance sheet strength, and expansion of aquaculture cage businesses are the key parameters for driving revenue growth of the company. It expects profit CAGR to be 20% over FY22-24E with return on capital employed in the range of 22-24%
Galaxy Surfactants is trading with more than 11 times its weekly average trading volume. Elgi Equipments, Jyothy Labs, Indian Overseas and Finolex Cables are trading at more than five times their weekly average trading volumes.
YES Bank and Ujjivan Small Finance Bank rise in trade after reporting their Q1FY23 operational updates shows their toal loans rising. YES Bank’s total advances rise 14% YoY to Rs 1.8 lakh crore while Ujjivan Small Finance Bank’s total advances are up 38.3% to Rs 19,409 crore. Although YES Bank’s total deposits rise 18.3% YoY to Rs 1.9 lakh crore, they were down 2% QoQ. Ujjivan Small Finance Bank’s asset quality improves as gross NPAs fall to 5.9% in June 2022 against 6.6% in May 2022.
ICICI Securities maintains its ‘Buy’ rating on KEC International with a target price of Rs 502, indicating an upside of 29.4%. The brokerage believes the company’s margins will expand on the back of robust order intake in FY23. It expects commodity prices to correct in H2FY23, leading to higher profitability. The brokerage estimates the company’s net profit to grow at a 47% CAGR over FY22-24.
Galaxy Surfactants is trading with more than 11 times its weekly average trading volume. Elgi Equipments, Jyothy Labs, Indian Overseas and Finolex Cables are trading at more than five times their weekly average trading volumes.
Pharmaceutical companies like Dr. Reddy's Laboratories, Aurobindo Pharma, Sun Pharma among others are rising. The broader index Nifty Pharma trades in the green.
Life Insurance Corporation of India (LIC) rises after Motilal Oswal initiates coverage on the stock with a ‘Buy’ rating as it finds its expected embedded value of FY24 at 0.7 times reasonable. The brokerage set a target price of Rs 830 for the stock, a 20% upside from the current market price. The brokerage expects new business premium to grow at a 10% CAGR over FY22-24. LIC is also planning to increase its non-participating products business as its major product mix still consists of savings and participating products.
Metal stocks like JSW Steel, Tata Steel, Vedanta, Hindalco Industries, Jindal Steel & Power, among others, are rising in trade. The broader sectoral index BSE Metal is also trading in the green.
Retail sales for the automotive industry are up in June as total retail sales rise 27% YoY 15.5 lakh units, but a 6.1% MoM fall shows demand is still tepid, according to data from the Federation of Automotive Dealers' Association. Tata Motors is second among carmakers in retail market share with a 14.18% share of car retail sales in June. Even though demand for two-wheelers is tepid (June retail sales are down 8.2% MoM to 11.2 lakh units, but up 20.2% on a low-base.) TVS Motor continues to claw share away from Bajaj Auto. TVS Motor ended June with a 14.87% retail market share compared to Bajaj Auto's 8.94%.
Reliance Industries is rising as brokerage Nomura upgrades its rating on the company to a 'Buy' from 'Neutral', according to reports. Nomura believes that the correction in the stock is overdone and presents a buying opportunity for investors. It set a target price of Rs 2,800, indicating an upside of 16%.
Marksans Pharma is rising as its board of directors will consider a buyback of shares on Friday.
India's Purchasing Manager's Index (PMI) for services rises to 59.2 in June, the highest since April 2011, due to the fast-paced expansion of services industry. A PMI of above 50 indicates expansion.
Tata Steel's arm completes the acquisition of 49.75% stake in Nelachal Ispat Nigam from MMTC. The total acquisition cost is Rs 12,100 crore and was part of the Centre's strategic disinvestment of the Odisha-based Neelachal Ispat
Vedanta’s alumina production rises a mere 1% YoY to 4.6 lakh tonnes in Q1FY23 with total aluminium production increasing just 3% to 5.7 lakh tonnes. Although mined metal production rises 14% YoY to 2.5 lakh tonnes, and copper production rises 37% YoY to 0.4 lakh tonnes in Q1FY23, iron ore sales fall 24% YoY to 12.6 lakh tonnes.
Reserve Bank of India (RBI) fines IndusInd Bank with Rs 1 crore for failing to the restrict number of transactions in accounts opened through e-KYC. RBI also fines Kotak Mahindra Bank with Rs 1.05 crore for its delay in processing the credit involving unauthorized electronic transactions, according to reports.
The Reserve Bank of India approves HDFC's merger with HDFC Bank. This comes after the stock exchanges approved the merger on Monday. This merger includes the merger of HDFC Investments and HDFC Holdings into HDFC and the eventual merger of HDFC into HDFC Bank.
Riding High:
Largecap and midcap gainers today include Tube Investments of India Ltd. (1,820.25, 4.24%), Avenue Supermarts Ltd. (3,639.05, 4.11%) and SBI Cards and Payment Services Ltd. (816.55, 3.89%).
Downers:
Largecap and midcap losers today include SRF Ltd. (2,052.70, -5.85%), Oil India Ltd. (190.60, -5.48%) and TVS Motor Company Ltd. (812.40, -3.39%).
Volume Rockets
27 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Elgi Equipments Ltd. (374.45, 8.82%), AstraZeneca Pharma India Ltd. (2,966.80, 8.20%) and Asahi India Glass Ltd. (577.15, 6.86%).
Top high volume losers on BSE were CreditAccess Grameen Ltd. (1,010.60, -3.91%), Bombay Burmah Trading Corporation Ltd. (923.25, -1.41%) and Suven Pharmaceuticals Ltd. (448.35, -0.84%).
Galaxy Surfactants Ltd. (2,871.70, 0.79%) was trading at 12.3 times of weekly average. G R Infraprojects Ltd. (1,100.25, -0.04%) and Indian Overseas Bank (17.70, 1.72%) were trading with volumes 10.5 and 7.7 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
3 stocks made 52-week highs, while 4 stocks tanked below their 52-week lows.
Stocks touching their year highs included - Mahindra Lifespace Developers Ltd. (432.80, 1.94%), Siemens Ltd. (2,560.30, 1.54%) and Varun Beverages Ltd. (795.35, 1.18%).
Stocks making new 52 weeks lows included - Indiabulls Housing Finance Ltd. (91.85, -2.91%) and Wockhardt Ltd. (205.65, -0.75%).
16 stocks climbed above their 200 day SMA including AstraZeneca Pharma India Ltd. (2,966.80, 8.20%) and NLC India Ltd. (67.55, 4.97%). 3 stocks slipped below their 200 SMA including Mahindra Holidays & Resorts India Ltd. (222.40, -3.14%) and Petronet LNG Ltd. (217.00, -0.71%).