Trendlyne Analysis
Nifty 50closed at 19,436.10 (-92.7, -0.5%), BSE Sensexclosed at 65,226.04 (-286.1, -0.4%) while the broader Nifty 500closed at 17,123.10 (-131.3, -0.8%). Market breadth is highly negative. Of the 1,955 stocks traded today, 535 were in the positive territory and 1,373 were negative.
Indian indices recovered from their day lows but still closed in the red, with the Nifty 50closing at 19,436.1 points. The Indian volatility index, Nifty VIX, fell 1.1% and closed at 11.7 points. Nestle India rose 3% after its board of directors considered a proposal to split its shares, each with a face value of Rs 10. It is also considering a second interim dividend for 2023.
Nifty Smallcap 100 and Nifty Midcap 100 closed lower, following the benchmark index. However, Nifty ITand Nifty FMCG closed higher than their Tuesday’s close. According to Trendlyne's sector dashboard, Commercial Services & Supplies was the top-performing sector of the day as it rose 1.4%.
European indices rebounded and traded higher after opening in the red on a volatile day. However, major Asian indices settled lower than their Tuesday close. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after rising 0.7% on Tuesday.Axis Bank says media reports about the bank planning to raise Rs 10,000 crore via QIP are untrue. The bank adds any fund-raising decision might be taken at the board meeting ahead of the results and the report is purely speculative.
Axis Bank sees a short buildup in its October 26 future series as its open interest rises 26.5% with a put-call ratio of 0.4.
Metal & mining stocks like Vedanta, Jindal Steel & Power, Steel Authority of India, Tata Steel and National Aluminium Co are falling in trade. All constituents of the broader sectoral index, BSE Metal, are also trading in the red.
JPMorgan maintains its ‘Overweight’ rating on HDFC Bank with a target price of Rs 1,900. According to the brokerage, the bank's Q2FY24 earnings are expected to be weak and this weakness will worsen post Q2. It adds that the bank's sequential advances growth momentum has increased to 5% QoQ, and deposits are coming in thick and fast.
Reliance Industries' step-down subsidiary, Reliance Brands Holding UK, signs a joint venture (JV) agreement with Superdry. The purpose of the JV is for Superdry to sell its South Asian IP to Reliance for $48.3 million (approximately Rs 401.7 crore).
Alembic Pharmaceuticals is falling as flash floods disrupt operations at its Sikkim facility. No loss or harm has been caused to any personnel. The stock shows up in a screener for companies in which mutual funds have increased their shareholdings over the past month.
Plaza Wires' Rs 71.3 crore IPO gets bids for 62.6X the available 95 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 223.8X the available 13.2 lakh shares on offer.
Adani Enterprises is rising as Abu Dhabi-based International Holding Company (IHC) raises its stake in the firm to over 5%. This comes just a week after the UAE-based business sold its entire stake in Adani Green Energy and Adani Energy Solutions.
HDFC Securities maintains its ‘Buy’ rating on Prestige Estates Projects and raises the target price to Rs 786 from Rs 700. This implies an upside of 27.1%. The brokerage expects sustained demand for housing and office spaces in the long term despite potential rate hikes. It believes the company is well-placed to capitalise on this growing demand, given its robust pre-sales and launch pipeline.
Easy Trip Plannerssigns a memorandum of understanding (MoU) worth RS 250 with the government of Uttarakhand. Under the MoU, the company will make joint marketing campaigns with the state to target the American, European and Asian markets.
Bajaj Finserv falls as its subsidiary, Bajaj Allianz General Insurance Co, receives a show cause cum GST demand notice of Rs 1,010 crore. The notice was served by the Directorate General of GST Intelligence, Pune. The company appears in a screenerof stocks with declining net cash flow.
Suzlon Energy touches a new 52-week high as it releases a pledge on 97.1 crore shares from SBICAP Trustee Co. These shares account for 7.1% of the total equity. It appears in a screener for stocks with strong momentum.
Jitendra Adhia, President of Finance at Atul Auto, projects high single-digit margins for FY24. He expects a run rate exceeding 1,000 units per quarter in H2FY24. Adhia is optimistic about Atul Auto’s sales returning to pre-Covid levels during the festive period.
Realty stocks like Macrotech Developers, DLF, Oberoi Realty, Mahindra Lifespace Developers and Phoenix Mills are falling in trade. The broader sectoral index, Nifty Realty, is also trading in the red.
Nestle India is rising as its board of directors considers a proposal to split its shares, each with a face value of Rs 10. It is also considering a second interim dividend for 2023. The stock shows up in a screener for companies with zero promoter pledges.
Polyplex Corp rises as promoters plan to sell a 24.3% stake in the company to its investor, AGP Holdco, for Rs 1,188.9 crore.
Pranjul Bhandari, the Chief India Economist at HSBC Securities & Capital Markets (India), says that the current macro environment doesn't favour emerging markets. She notes that the RBI will be cautious about risks. She adds that any change in inflation or growth forecasts by the RBI is not likely.
IDFC First Bank's board of directors approves a floor price of Rs 94.9 per share for its qualified institutional placement worth Rs 3,000 crore.
Bajaj Finance reports a 33% YoY rise in assets under management (AUM) to Rs 2.9 lakh crore in Q2FY24. This growth is driven by an improvement in new loans booked and deposits. The company appears in a screener of stocks where foreign institutional investors have increased their shareholdings.
HDFC Bank's total gross advances (excluding eHDFCL non-individual loans) rise 17.6% YoY to Rs 23,32,800 crore in Q2FY24, while deposits increase by 18.2% YoY to Rs 21,73,000 crore.
Siddharth Vasudevan, Managing Director of Vascon Engineers, forecasts a 20% YoY growth in its order book in FY24. He notes that the company’s current order book stands at Rs 2,400 crore, with government projects accounting for 70-75% of the total. He believes the company’s order book will reach close to Rs 4,000 crore.
Updater Services’ shares debut on the bourses at a 5% discount to the issue price of Rs 300. The Rs 640 crore IPO has received bids for 2.9 times the total shares on offer.
Larsen & Toubro falls despite its power business arm winning an order worth Rs 1,000-2,500 crore from Power Development Corp. The order is for setting up wet flue gas desulphurization systems at the Sagardighi thermal power plant.
Rail Vikas Nigamrises as it bags an order worth Rs 444.3 crore from Himachal Pradesh State Electricity Board. The order involves the development of distribution infrastructure for the north zone of the state. The company appears in a screenerof stocks with strong momentum.
Titagarh Rail Systemsbags a contract worth Rs 857 crore from the Gujarat Metro Rail Corp to design, manufacture, test and commission 72 standard gauge cars for the Surat Metro Rail project phase-1.
Riding High:
Largecap and midcap gainers today include Adani Wilmar Ltd. (352.80, 5.82%), Avenue Supermarts Ltd. (3,872.95, 3.95%) and Adani Enterprises Ltd. (2,464.95, 3.25%).
Downers:
Largecap and midcap losers today include JSW Energy Ltd. (418.90, -5.35%), Macrotech Developers Ltd. (750.10, -4.85%) and Vodafone Idea Ltd. (11.45, -4.58%).
Movers and Shakers
12 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Adani Wilmar Ltd. (352.80, 5.82%), Avenue Supermarts Ltd. (3,872.95, 3.95%) and The Ramco Cements Ltd. (951.60, 3.78%).
Top high volume losers on BSE were Prince Pipes & Fittings Ltd. (679.30, -2.04%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,560.90, -0.60%).
Mangalore Refinery And Petrochemicals Ltd. (97.85, 2.46%) was trading at 11.5 times of weekly average. HEG Ltd. (1,791.25, 3.27%) and Timken India Ltd. (3,088.50, 0.66%) were trading with volumes 10.4 and 7.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
16 stocks took off, crossing 52 week highs, while 2 stocks hit their 52 week lows.
Stocks touching their year highs included - Bajaj Finance Ltd. (7,854.05, -1.43%), Bank of India (110.00, -2.48%) and Bank of Maharashtra (48.85, -1.31%).
Stocks making new 52 weeks lows included - V-Mart Retail Ltd. (1,969.05, -1.23%) and Adani Total Gas Ltd. (610.70, -0.01%).
7 stocks climbed above their 200 day SMA including Adani Enterprises Ltd. (2,464.95, 3.25%) and Fine Organic Industries Ltd. (4,908.00, 0.88%). 9 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (979.50, -4.08%) and Gujarat Fluorochemicals Ltd. (2,845.00, -3.21%).