Trendlyne Analysis
Nifty 50 closed at 19,342.65 (36.6, 0.2%) , BSE Sensex closed at 65,075.82 (79.2, 0.1%) while the broader Nifty 500 closed at 16,927.30 (52, 0.3%). Of the 1,931 stocks traded today, 1,117 were on the uptrend, and 753 went down.
Indian indices fell from their day highs but managed to close marginally higher, with the Nifty 50 settling below the 19,350 mark. The Indian volatility index, Nifty VIX, fell 1.4% but still closed above 12.2 points. Maruti Suzuki closed higher after its Chairman R.C. Bhargava announced that the company plans to invest Rs 45,000 crore to double its production capacity to 4 million cars by FY30-31.
Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, outperforming the benchmark index. Nifty Realty and Nifty IT settled higher than their Monday’s close. According to Trendlyne's sector dashboard, Chemicals & Petrochemicals was the top-performing sector of the day as it rose 3.1%.
Major European indices traded in the green, taking cues from the Asian indices, which closed higher. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures recovered from their day lows and traded in the green on a volatile day.
Money flow index (MFI) indicates that stocks like Chemplast Sanmar, Cera Sanitaryware, Shyam Metalics & Energy and KFIN Technologies are in the overbought zone.
PG Electroplast rises to an all-time high of Rs 2,036.3 as its Q1FY23 net profit increases by 106.1% YoY to Rs 33.8 crore. Its revenue also grows by 26.5% YoY on the back of robust growth in domestic sales. Furthermore, the company announces a fundraise by qualified institutional placements, setting a floor price of Rs 1,641.1 per share for the offer. The company appears in a screener of stocks with growing net profit and margins.
Finolex Industries surges more than 5% in trade to reach its 52-week high of Rs 241.2 per share. The stock has a consensus estimate of 'Buy' from eight out of 13 analysts. However, it is in the Sell zone according to time spent below its current PE. The company appears in a screener of overbought stocks according to the money flow index (MFI).
Maruti Suzuki’s Chairman R.C. Bhargava announces that the company plans to invest Rs 45,000 crore to double its production capacity to 4 million cars by FY30-31. The management also expects the company’s revenue to double during the same time period.
Bharat Forge rises to touch its 52-week high of Rs 1,076 as reports suggest that Nomura finds the stock to be trading at an attractive valuation. The brokerage keeps a ‘Buy’ rating on the stock, with a target price of Rs 1,157. It expects rapid growth in the defence business vertical on the back of a robust order inflow.
Credit rating agency ICRA expects revenue growth in the IT services sector to decrease to 3-5% in FY24, citing muted demand. It also anticipates a decline in profitability, with the operating profit margin narrowing to 20-21%.
3M India, Atul, Gujarat Fluorochemicals, Thermax and Pidilite Industries are trading above their third resistance or R3 levels.
KPI Green Energy bags multiple orders totaling a 9.7 MW capacity of solar power projects. Out of the total capacity, 4.7 MW will be undertaken by KPI Green Energy while 5MW will be undertaken by its subsidiary, Sun Drops Energia.
Lupin receives approval from the US Food and Drug Administration for its Abbreviated New Drug Application for Pirfenidone Capsules. The drug had estimated annual sales of $95 million in the United States as of June 2023.
Pyramid Technoplast’s shares debut on the bourses at a premium of 12.7% over the issue price of Rs 166. The IPO of Rs 153.1 crore has received bids for 18.3 times the available shares.
Prabhuas Lilladher expects Indian steel companies to add around 22 MT of capacities over the next two years and boost volume growth. The brokerage believes JSW Steel, Jindal Steel & Power and Tata Steel are primed to benefit from the upcoming capacity addition. It has initiated coverage on the following companies with a ‘Buy’ rating.
Axis Direct keeps its ‘Buy’ rating on JK Cement with a target price of Rs 3,560, implying an upside of 10.4%. The brokerage expects the company to sustain its growth path, benefiting from expanded production capacity and strong market reach. It expects the firm’s net profit to grow at a CAGR of 62.2% over FY23-25.
Bayer Cropscience’s Vice Chairman, Managing Director and CEO, Duraiswami Narain, resigns from his post with effect from October 31, owing to his planned return to Bayer US. Simon Wiebusch will replace him starting from November 1.
As per an economist poll, India's GDP is expected to have grown by 7.7% YoY in Q1FY24, marking the fastest rate in four quarters. This growth is attributed to strong domestic demand and the government's emphasis on capital expenditure.
Rashtriya Chemicals & Fertilizers surges more than 5% as the Department of Public Enterprise grants the company Navratna status. Companies with the Navratna status can invest up to Rs 1,000 crore without needing approval from the central government.
Forest materials, telecommunications equipment, fertilizers and chemicals & petrochemicals sectors gain more than 4% in trade over the past week.
Indiabulls Housing Finance is falling despite Hrti buying 1.5% stake (or 71.8 lakh) shares in the company for Rs 132.6 crore in a bulk deal.
University of Notre Dame Du Lac sells a 2.9% stake (around 1.7 crore shares) in Star Health and Allied Insurance Co, for approximately Rs 1,016 crore in a bulk deal on Monday. In another deal, Fidelity Investment Trust picks up a 2.1% stake (1.2 crore shares) in the company.
According to reports, 1.1 crore shares (0.16% equity) of Bharti Airtel, amounting to Rs 922.8 crore, have changed hands in a block deal.
Som Distilleries & Breweries is witnessing a rise after gaining approval to supply its beer brands to Chhattisgarh. The company has already initiated the initial shipments to the state. It appears in a screener for stocks with strong momentum.
Capacit'e Infraprojects is rising as it bags an order worth Rs 575 crore in a joint venture with Mohan Mutha Exports from Rail Vikas Nigam. This is an engineering, procurement and construction order to be executed in Maldives within a period of 18 months. The company appears in a screener of stocks with strong annual EPS growth.
Investec has downgraded its rating on Indian Bank to 'Hold', while simultaneously raising the target price to Rs 430. The brokerage's rationale is based on the anticipation that, despite the bank's net interest margins (NIMs) approaching their historical peak, there will be a gradual decline. The analysis also indicates that the bank will benefit significantly from the reduction in credit costs over the short term.
Gokaldas Exports surges in trade following its agreement to acquire UAE-based apparel manufacturer Atraco Group for an equity value of $55 million (around Rs 454.5 crore). The funding will involve a mix of debt and internal accruals. The stock shows up in a screener for companies with high consistent returns over the past five years.
Zomato rises despite Tiger Global Management's Internet Fund III offloading its remaining 1.4% equity shares (12.3 crore shares) and subsequently exiting the company. The deal was executed through an open market transaction at an average price of Rs 91 per share aggregating to Rs 1,123.8 crore. The company appears in a screener of stocks with low durability.
Realty stocks like Macrotech Developers, Indiabulls Real Estate, DLF, Sobha and Brigade Enterprises are rising in trade. Barring Phoenix Mills, all the other constituents of the broader sectoral index, Nifty Realty, are trading in the green.
SJVN’s wholly-owned subsidiary, SJVN Green Energy bags orders worth Rs 1,900 crore from the Assam Power Development Corp. The orders involve the construction of three solar power projects with a cumulative capacity of 320 MW in Assam.
Riding High:
Largecap and midcap gainers today include Deepak Nitrite Ltd. (2,170.20, 6.46%), JSW Energy Ltd. (366.20, 5.46%) and Macrotech Developers Ltd. (672.75, 4.31%).
Downers:
Largecap and midcap losers today include Union Bank of India (86.25, -6.30%), Procter & Gamble Hygiene & Healthcare Ltd. (15,770.00, -3.97%) and One97 Communications Ltd. (852.90, -3.39%).
Volume Shockers
39 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Vaibhav Global Ltd. (442.05, 11.98%), PCBL Ltd. (170.20, 8.51%) and Alkyl Amines Chemicals Ltd. (2,515.60, 8.50%).
Top high volume losers on BSE were Union Bank of India (86.25, -6.30%), APL Apollo Tubes Ltd. (1,625.10, -2.62%) and Kajaria Ceramics Ltd. (1,441.85, -1.90%).
Eureka Forbes Ltd. (511.15, 2.11%) was trading at 31.9 times of weekly average. Gujarat Pipavav Port Ltd. (127.95, 7.07%) and SIS Ltd. (459.00, -0.44%) were trading with volumes 17.3 and 15.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
29 stocks took off, crossing 52 week highs, while 1 stock were underachiever and hit their 52 week lows.
Stocks touching their year highs included - 3M India Ltd. (31,581.15, 3.64%), Berger Paints (India) Ltd. (720.45, 1.61%) and Bharat Forge Ltd. (1,070.10, 1.99%).
Stock making new 52 weeks lows included - Rajesh Exports Ltd. (487.35, -3.53%).
13 stocks climbed above their 200 day SMA including NOCIL Ltd. (228.70, 4.88%) and Indraprastha Gas Ltd. (462.65, 4.28%). 2 stocks slipped below their 200 SMA including Gujarat State Petronet Ltd. (273.95, -1.17%) and Dabur India Ltd. (550.15, -0.72%).