Trendlyne Analysis
Nifty 50 gave up all its gains on a volatile day of trade and closed below Thursday’s closing level. The S&P Global India Services Purchasing Managers’ index (PMI) rises to 58.9% in May, topping analysts’ expectations. Any value above 50 indicates an expansion. PMI stood at 57.5 in April. Most Asian stocks closed in the green, tracking the US indices, which closed sharply higher on Thursday. The tech-heavy NASDAQ 100 rose 2.8% while S&P 500 closed 1.8% higher than Thursday’s level.
Crude oil is set for its sixth weekly gain as the OPEC+ supply meeting delivered only a modest increase in crude oil output. Crude oil is expected to trade at elevated levels on the back of European Union agreeing to cut over 90% of crude oil imports from Russia by the end of 2022. Investors look ahead to the US Labour Department’s jobs report, which is due later today. A considerable slowdown in the employment market may convince the Federal Reserve to slow the interest rate hikes going forward. European indices follow the global trend and trade higher than Thursday’s levels.
Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media, which opened in the green, closed lower than Thursday’s levels.Nifty IT closed in the green, tracking the tech-focused NASDAQ 100, which rose 2.8% on Thursday.
Nifty 50closed at 16,584.30 (-43.7, -0.3%), BSE Sensexclosed at 55,769.23 (-48.9, -0.1%) while the broader Nifty 500closed at 14,077.90 (-90.1, -0.6%)
Market breadth is sharply down. Of the 1,881 stocks traded today, 573 were gainers and 1,269 were losers.
ZF Commercial Vehicle Control Systems India, Indoco Remedies, SKF India, and Gland Pharmaare trading with higher volumesas compared to Thursday.
Indiabulls Housing Finance sees a long build-up in its Jun 30 futures series as its open interest rises 8.7% with put to call ratio at 0.54.
Stocks like Solar Industries India, Indiabulls Housing Finance and TCI Expressrise by more than 5% in trade today.
HDFC Securities maintains a ‘Sell’ rating on Bata India with a target price of Rs 1,400. The brokerage continues to have a negative outlook on the company’s prospects as its pace of recovery is slower than its peers. The brokerage also points out that the company’s profit is at 31% of pre-pandemic levels in FY22.
Auto stocks like Maruti Suzuki India, Tata Motors, Eicher Motors, Hero MotoCorp, Bosch, and Ashok Leyland, among others, are falling in trade. The broader sectoral index Nifty Auto is also trading in the red.
S&P Global India Services Purchasing Managers’ Index (PMI) rises to 58.9 in May for India's service sector compared to 57.9 in April. This is the tenth consecutive month of expansion. A PMI number above 50 indicates an expansion.
Va Tech Wabag receives a order worth Euro 146 million from Société Nationale Des Eaux du Sénéga, the National Water Company of Senegal to design, build and operate the 50 million liter per day Mamelles sea water desalination project. The project is to be executed by the company in consortium with Toyota Tsusho Corp, Japan and Eiffage Génie Civil, France.
Power stocks like Adani Green Energy, Adani Transmission, NTPC, Adani Power, and Torrent Power, among others, are falling in trade. The broader sectoral index BSE Power is also trading in red.
ICICI Direct maintains a ‘Buy’ rating on GAIL India with a target price of Rs 180, indicating an upside of 21%. The brokerage expects the company’s revenue to rise on the back of favourable LNG spot prices, higher realisation, and an increase in gas transmission volumes. The brokerage estimates the company’s revenue to grow at a 19.5% CAGR over FY22-24.
Ratnamani Metals & Tubes is trading with more than 15 times its weekly average trading volume. TCI Express, Advanced Enzyme Technologies, Deepak Nitrite, and Dalmia Bharatare trading at more than five times their weekly average trading volumes.
Ratnamani Metals & Tubes touches 52-week high Rs 2,864, stock rises for two consecutive sessions. However, Shree Cements touches 52-week low of Rs 20,651.6, stock falls for five sessions.
MTAR Technologies rises as it enters a share purchase agreement to acquire Gee Pee Aerospace for Rs 8.8 crore. The company will acquire a 100% stake in Gee Pee Aerospace making it a wholly-owned subsidiary.
Deepak Nitrite falls in trade after the warehouse section of its manufacturing site at Nandesari, Gujarat catches fire on Thursday. The company says that there are no casualties. Plant operations are likely to resume in one or two days.
Mahindra & Mahindra Financial Services is rising as its disbursements in May rise 272% YoY to Rs 2,973 crore and the collection efficiency rises by 28 percentage points YoY to 95%. The collection efficiency is in-line with pre-covid levels.
India's digital payments platform-Unified Payments Interface (UPI) processes transactions worth Rs 10 lakh crore, a record high since its launch in 2016.
IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and Mindtree, among others, are rising as the rupee rises 0.16% to Rs 77.47 against the dollar in early trade. The broader sectoral index Nifty IT is also trading in the green
Cement stocks like Grasim Industries, Shree Cements, Ambuja Cements, ACC, Dalmia Bharat, JK Cement and Ramco Cements, among others, trade lower after UltraTech Cement announces Rs 12,886 crore capex plan to expand production capacity.
Adani Ports and Special Economic Zone’s May 2022 cargo volume rises 4% YoY to 30.4 million metric tonnes indicating slow growth. Total coal volumes increase 6% YoY as thermal coal volumes are up 5% and coking coal by 9%. Crude volumes rise 15% YoY despite high crude oil prices.
Aether Industries’ shares list at a 9.7% premium to the issue price of Rs 642 on its debut on the bourses. The Rs 808-crore IPO was subscribed for 6.3X of the total shares on offer.
Angel One is rising as its client base rises 4.7% MoM in May to 1 crore. The number of orders grows 6.8% MoM to 7 crore with its retail turnover market share in the commodity segment increasing by 184 bps MoM to 45.1%
UltraTech Cement’s board approves capex of Rs 12,886 crore towards increasing capacity by 22.6 million tonnes per annum through brownfield and greenfield projects. The company will use a mix of debt and internal accruals to finance its capex plans. Commercial production from these new capacities will start from FY25. The existing expansion plan of the company is likely to complete by end of FY23.
Riding High:
Largecap and midcap gainers today include Macrotech Developers Ltd. (1,091.15, 5.43%), Reliance Industries Ltd. (2,779.50, 2.03%) and Emami Ltd. (429.45, 1.71%).
Downers:
Largecap and midcap losers today include The Ramco Cements Ltd. (630.80, -9.26%), Dalmia Bharat Ltd. (1,252.80, -8.80%) and Dixon Technologies (India) Ltd. (3,644.45, -6.99%).
Volume Rockets
21 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Macrotech Developers Ltd. (1,091.15, 5.43%), Indiabulls Housing Finance Ltd. (122.60, 4.38%) and TCI Express Ltd. (1,676.75, 4.12%).
Top high volume losers on BSE were The Ramco Cements Ltd. (630.80, -9.26%), Dalmia Bharat Ltd. (1,252.80, -8.80%) and JK Cement Ltd. (2,144.95, -8.42%).
Ratnamani Metals & Tubes Ltd. (2,514.00, -3.44%) was trading at 20.9 times of weekly average. India Tourism Development Corporation Ltd. (342.30, 2.64%) and Advanced Enzyme Technologies Ltd. (297.25, 3.41%) were trading with volumes 13.4 and 11.8 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
1 stock took off, crossing 52-week highs, while 10 stocks hit their 52-week lows.
Stock touching their year highs included - Ratnamani Metals & Tubes Ltd. (2,514.00, -3.44%).
Stocks making new 52 weeks lows included - Grasim Industries Ltd. (1,339.45, -6.50%) and Ipca Laboratories Ltd. (861.15, -2.12%).
11 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (223.55, 1.91%) and Century Textiles & Industries Ltd. (889.10, 1.53%). 14 stocks slipped below their 200 SMA including Adani Transmission Ltd. (1,956.05, -3.44%) and Hero MotoCorp Ltd. (2,583.75, -2.98%).