Trendlyne Analysis
Indian indices closed in the red, with the volatility index, India VIX, rising close to 18.5%. The Nifty lost over 130 points and closed below the 17,900 mark. However, European indices followed the global trend and traded higher than Wednesday’s close. Most major Asian indices closed higher, tracking the US indices, which closed in the green on Wednesday. The US stocks inched up after posting their biggest one-day percentage loss on Tuesday since June 2020 on high possibility of another 75 basis point rate hike by the US Federal Reserve. The S&P 500 rose 0.3% while the tech-heavy NASDAQ 100 index closed 0.8% higher. Crude oil prices fall after rising over 1% on Wednesday amid supply concerns over the increasing likelihood of a US rail stoppage due to an ongoing labor dispute.
Nifty Midcap 100 and Nifty Smallcap 100 closed flat to higher, despite the benchmark index closing in the red. Nifty Bank and Nifty FMCG closed lower than Wednesday’s close. Nifty IT extended its losses and closed in the red, despite the NASDAQ 100 closing in the green on Wednesday.
Nifty 50closed at 17,872.30 (-131.5, -0.7%), BSE Sensexclosed at 59,934.01 (-413.0, -0.7%) while the broader Nifty 500closed at 15,573.05 (-57.7, -0.4%)
Market breadth is in the red. Of the 1,921 stocks traded today, 835 were on the uptick, and 1,047 were down.
Stocks like Tata Investment Corp, India Cements, Ambuja Cements, and Bajaj Holdings & Investmentare in the overbought zone, according to the relative strength index or RSI.
Maruti Suzuki is rising as Bank of America Securities upgrades its target price on the company to Rs 10,500 from Rs 9,500, according to reports. This indicates an upside of 10.5%. The brokerage believes the company can regain its market share on the back of new product launches. It also said, the positive response the new models received despite higher prices is encouraging.
Veranda Learning Solutions' board approves the raising of Rs 300 crore by a preferential offer of equity shares and convertible warrants. It will be a mix of preferential offer of 77.9 lakh equity shares to non-promoters and 20 lakh convertible warrants to promoters at an issue price of Rs 307 per share. Every warrant is convertible to one equity share within 18 months from the date of allotment.
Utilitiescompanies like NHPC, NTPC, Adani Power, and Power Grid Corp of Indiaare rising in trade. The broader sectoral index BSE Poweris also trading in the green.
Larsen & Toubro’s arm L&T Construction secures a repeat order from the Government of Odisha to construct a pressurized underground pipeline irrigation network system. The order’s value is between Rs 1,000-2,500 crore.
Axis Securities maintains its ‘Buy’ rating on Birla Corp with a target price of Rs 1,305. This implies an upside of 17%. The brokerage says the company’s future growth prospects look promising given rising demand, new capacity addition, increasing sales of premium products, and new product launches. It expects the company’s net profit to grow at a CAGR of 38.9% over FY22-24.
Ceat is one of the top gainers in trade today due to a better business outlook, according to reports. The stock gained more than 23% in the past month. The company expects the auto tyre industry to do well because of the increase in demand from OEMs. Also, with the easing of raw material cost pressures, the company is likely to report better margins from Q3FY23 onwards.
Harsha Engineers’ Rs 755-crore IPO gets bids for 10.3X of the available 1.6 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 9.1X of the available 83.8 lakh shares on offer.
Indices like S&P BSE Industrials, S&P BSE Telecom, and Nifty PSU Bank trade above 9% over the past month
G R Infraprojects is falling after the company announces an offer for sale (OFS) which is open from September 15-16. The promoters will sell up to a 5.9% stake in the company through the OFS, with an additional 0.9% stake sale planned if there is sufficient demand. The first day will see bids only from non-retail investors and on the second day, all investors can bid for the shares. The floor price is set at Rs 1,260.
Astral is rising as it acquires an additional 15% stake in its arm Seal IT Services for a cash consideration of Rs 48 crore. With this acquisition, Astral’s stake in Seal IT Services increases to 95% from 80%.
PVR falls by 5% in trade today after four investors sell a 7.7% stake through block deals in PVR, according to reports.
ICICI Securities remains bullish on 3M India as it keeps its ‘Buy’ rating with a target price of Rs 26,500. This indicates an upside of 16.3%. The brokerage anticipates the company’s profit to increase on the back of its strong brand value, extensive distribution network, new product launches, and capacity expansion. It expects the company’s net profit to grow at a CAGR of 39.4% over FY22-24.
Media stocks like PVR, Inox Leisure, Zee Entertainment Enterprises, Network 18 Media and Investments, and Saregama India are falling in trade. The broader sectoral index Nifty Media is also trading in the red.
ICICI Bank hits a 52-week high of Rs 927.2 after CLSA rates ‘Buy’ and Morgan Stanley rates ‘Overweight’ on the stock. Morgan Stanley sees the bank's asset quality to remain strong, according to reports. It also shows up on the screener of companies with improving RoE over the last two years.
Vedanta is rising as it emerges as the highest bidder for the Ghogharpalli coal block located in Sundargarh, Odisha. The mine is estimated to have a total reserve of 1.3 billion tonnes and an annual capacity of 20 million tonnes.
Indian rupee falls 9 paise to 79.53 against the dollar in early trade today in anticipation of a rate hike by the US Federal Reserve
- Global rating agency Fitch lowers India’s GDP growth forecast to 7% in FY23 from its earlier estimate of 7.8%.
Tamilnad Mercantile Bank’s shares list at a 3% discount to the issue price of Rs 510 on its debut on the bourses. The Rs 831.6-crore IPO got bids for 2.9 times the total shares on offer.
Promoter TVS Sundaram Fasteners sells a 1.18% stake (24.7 lakh shares) in Sundaram Fasteners for Rs 208.7 crore in a bulk deal. In another deal, ICICI Prudential Mutual Fund picks up a 0.66% stake (13.7 lakh shares) of Sundaram Fasteners for Rs 116.4 crore.
HFCL bags two orders from Bharat Sanchar Nigam Limited (BSNL) and RailTel Corporation of India. The order from BSNL is worth Rs 341.26 crore for the supply of equipment and services for broadband network gateway project on a turnkey basis. The order from RailTel Corp is worth Rs 106.55 crore majorly to set up Video Surveillance Systems at 180 railway stations on behalf of Indian Railways.
Riding High:
Largecap and midcap gainers today include MRF Ltd. (92,868.45, 7.90%), Adani Enterprises Ltd. (3,748.70, 4.94%) and NHPC Ltd. (38.70, 4.45%).
Downers:
Largecap and midcap losers today include PB Fintech Ltd. (519.65, -4.94%), Hindalco Industries Ltd. (424.40, -3.98%) and Laurus Labs Ltd. (530.75, -3.22%).
Volume Rockets
28 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Ceat Ltd. (1,661.60, 20.00%), Welspun Corp Ltd. (263.75, 8.34%) and MRF Ltd. (92,868.45, 7.90%).
Top high volume losers on BSE were PVR Ltd. (1,845.50, -4.35%), Phoenix Mills Ltd. (1,377.55, -2.66%) and G R Infraprojects Ltd. (1,343.15, -2.28%).
Mahindra CIE Automotive Ltd. (289.95, 3.68%) was trading at 15.3 times of weekly average. Poly Medicure Ltd. (910.85, 2.76%) and EID Parry (India) Ltd. (595.35, 5.32%) were trading with volumes 10.5 and 9.6 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
38 stocks hit their 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (968.55, 2.18%), Adani Transmission Ltd. (4,105.40, 3.20%) and Allcargo Logistics Ltd. (424.45, -3.09%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (623.05, -0.61%) and Sanofi India Ltd. (6,042.10, -0.43%).
13 stocks climbed above their 200 day SMA including JM Financial Ltd. (67.90, 4.78%) and Bombay Burmah Trading Corporation Ltd. (1,008.15, 4.17%). 8 stocks slipped below their 200 SMA including Laurus Labs Ltd. (530.75, -3.22%) and Polyplex Corporation Ltd. (2,071.20, -2.61%).