Trendlyne Analysis
Indian indices closed in the red, with the volatility index, India VIX, rising close to 20%. India’s Q1FY22 GDP rose at the fastest pace in a year at 13.5% but missed the expectations of analysts and the central bank. India’s Manufacturing Purchasing Manager’s Index or PMI fell marginally to 56.2 in August compared to 56.4 in July due to improving demand and a fall in input costs like aluminum and steel.
European indices traded lower than Wednesday, following the global trend. Major Asian indices closed in the red, tracking the US indices, which closed lower on Wednesday for a fourth straight session. The tech-heavy index NASDAQ 100 closed 0.6% lower while the Dow Jones fell 0.9%. Brent crude oil futures traded in the red after falling close to 10% in the previous two trading sessions. Crude oil prices fell amid demand concerns and comments by Iraq’s state-owned oil marketing company saying that the country’s oil exports are unaffected by the geopolitical crisis in Europe.
Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index trading in the red. Nifty Metal and Nifty FMCG closed lower than Tuesday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which closed lower on Wednesday.
Nifty 50closed at 17,563.25 (-196.1, -1.1%), BSE Sensexclosed at 58,766.59 (-770.5, -1.3%) while the broader Nifty 500closed at 15,224.20 (-100.9, -0.7%)
Market breadth is in the green. Of the 1,918 stocks traded today, 1,004 showed gains, and 865 showed losses.
Ashok Leyland sees a long build-up in its September 29 future series as its open interest rises 17.1% with put to call ratio of 0.9.
TVS Motor and Ceat hit their 52-week highs of Rs 1,028.8 and Rs 1,425, respectively. Both stocks rise for two consecutive sessions.
India's digital payments platform - Unified Payments Interface's (UPI) transaction volumes rise 85% YoY to 657 crore in August. Value of transactions is up 67.8% YoY.
NCC is rising as it bags a new order worth Rs 292 crore. The water and environment project has been awarded by state government agencies.
Financial Institutions, Distributors, and Data Processing Servicesindustries rise by more than 3% in trade today.
August GST revenue collections rise YoY, but fall month on month to Rs 1.43 lakh crore, compared to 1.48 lakh crore in July. Centre GST revenue stands at Rs 24,710 crore, State GST at Rs 30,951 crore and Integrated GST at Rs 77,782 crore.
Coal India’s production rises 8.5% YoY to 46.2 million tonnes and total coal off-take increases by 5.1% YoY in August 2022. Its supply to the power sector increases by 16% on rising demand from thermal power plants.
MM Forgings is rising after it announces a strategic investment in Abhinava Rizel. MM forgings will buy an 88% stake (26.4 lakh shares) in an all-cash deal.
ICICI Securities maintains its ‘Buy’ rating on Piramal Enterprises with a target price of Rs 1,391. This indicates an upside of 30.7%. As the company de-merges its pharmaceuticals business, the brokerage remains optimistic about the prospects of its financial services business. It expects the company’s increasing retail disbursements, new product launches, and network expansion to drive profitability. The brokerage estimates the company’s profit to grow at a CAGR of 56.6% over FY22-24.
India’s Manufacturing Purchasing Manager’s Index (PMI) falls marginally to 56.2 in August compared to 56.4 in July, because of improving demand and a fall in input costs like aluminum and steel.
Biocon falls and touches a 52-week low of Rs 297.5 after the US FDA issued Form 483 with 11 observations for two sites in Bangalore and six observations for its Malaysia site. The form is issued when the regulator observes a violation of the Food Drug and Cosmetics Act. The observations are for improving microbial control, quality oversight, and bettering software applications to gauge risks.
Centre raises windfall tax on the sale of locally produced crude oil to Rs 13,300 per tonne from Rs 13,000 per tonne, earlier. Export duty on aviation turbine fuel (ATF) is increased to Rs 9 per litre from Rs 2 per litre. Revenue Secretary Tarun Bajaj previously said that the trend in tax rates will depend on the movement of global crude prices
Escorts Kubota is rising as its monthly tractor wholesales in August increase by 7.3 % YoY to 6,111 units. The growth in tractor wholesales is due to a 7.9 % YoY rise in domestic tractor wholesales. The company's construction equipment monthly wholesales declines by 26.7% YoY.
IT stocks like Tata Consultancy Services, Infosys, MindTree among others are falling in trade. All constituents of the broader Nifty IT index are trading in the red.
Moody’s Investors Service lowers its GDP growth forecast for India to 7.7% from 8.3%, for CY22. It says that an increase in interest rates and uneven monsoons might slow down the momentum.
Competition Commission of India okays acquisition of 7.49% stake by Caladium Investments (affiliate of GIC) in Aditya Birla Fashion and Retail for Rs 2,195 crore. The proposed transaction will be through the issue of preferential equity and warrants on a fully diluted basis.
Bajaj Auto is rising as its two-wheeler wholesales in August is up 5% YoY to 3.4 lakh units. The growth in two-wheeler wholesales comes on the back of a 48% YoY rise in domestic wholesales. The biggest increase is in the company’s commercial vehicle wholesales, which is up 31% YoY.
Ashok Leyland is rising as it receives orders worth $ 75.1 million (Rs 598.1 crore) from major fleets for 1,400 school buses in the UAE, according to reports. The orders have been bagged by the company’s UAE distribution partners Swaidan Trading – Al Naboodah Group.
India's Gross Domestic Product rises 13.5% YoY to Rs 36.9 lakh crores in Q1FY23 and Gross Value Added rises 12.7% YoY to Rs 34.4 lakh crores.
Infosys divests its entire stake in Trifacta Inc, a data engineering software company based out of San Franciso, for $12 million.
Tata Motors completes the acquisition of Marcopolo’s 49% stake in its manufacturing joint venture Tata Marcopolo Motors (TMML) for Rs 99.9 crore. TMML is now a wholly owned subsidiary of Tata Motors.
Riding High:
Largecap and midcap gainers today include Zomato Ltd. (62.45, 7.77%), Ashok Leyland Ltd. (162.75, 5.68%) and Gland Pharma Ltd. (2,501.35, 5.63%).
Downers:
Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (244.75, -4.79%), Hindalco Industries Ltd. (421.95, -3.88%) and Dr. Lal Pathlabs Ltd. (2,476.90, -3.48%).
Volume Rockets
21 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Tata Teleservices (Maharashtra) Ltd. (127.55, 17.61%), Poly Medicure Ltd. (933.40, 9.58%) and Latent View Analytics Ltd. (390.80, 6.12%).
Top high volume losers on BSE were Zee Entertainment Enterprises Ltd. (244.75, -4.79%), Spicejet Ltd. (44.85, -3.24%) and Mahindra Logistics Ltd. (477.90, -0.47%).
Krishna Institute of Medical Sciences Ltd. (1,269.10, 5.43%) was trading at 59.5 times of weekly average. Prestige Estates Projects Ltd. (470.55, 2.87%) and TCNS Clothing Co. Ltd. (593.40, -0.24%) were trading with volumes 8.1 and 6.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
31 stocks hit their 52-week highs, while 2 stocks tanked below their 52-week lows.
Stocks touching their year highs included - Aegis Logistics Ltd. (296.45, 0.80%), AIA Engineering Ltd. (2,625.05, 0.67%) and Ashok Leyland Ltd. (162.75, 5.68%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (642.30, -0.91%) and Biocon Ltd. (301.60, -2.68%).
15 stocks climbed above their 200 day SMA including Suzlon Energy Ltd. (8.80, 7.32%) and Tata Communications Ltd. (1,257.05, 4.56%). 7 stocks slipped below their 200 SMA including MMTC Ltd. (41.85, -6.17%) and Housing Development Finance Corporation Ltd. (2,404.20, -1.72%).