Trendlyne Analysis
Nifty 50 rose over 130 points and closed above the 18,050 mark, with the volatility index, India VIX, falling below 17.5%. European indices followed the global trend and extended their gains from Monday. India’s consumer price index or CPI rises to 7% in August, after falling to a five-month low in July. CPI print continues to stay above the central bank’s upper tolerance level of 6% for the eighth straight month. India’s industrial production or IIP rises 2.4% in July, missing analysts' expectations of 4.3%.
Asian indices closed in the green, tracking the US indices, which closed higher on Monday. US stocks rose ahead of the key US CPI print release scheduled later today. Brent crude oil futures traded marginally higher after rising about 7% in the last three trading sessions amid supply concerns.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty FMCG closed higher than Monday’s close. Nifty IT closed flat despite the tech-heavy index, NASDAQ 100, rising 1.2% on Monday.
Nifty 50closed at 18,066.50 (130.2, 0.7%), BSE Sensexclosed at 60,571.08 (456.0, 0.8%) while the broader Nifty 500closed at 15,667.50 (90.1, 0.6%)
Market breadth is neutral. Of the 1,919 stocks traded today, 936 were on the uptrend, and 944 went down.
Stocks like Tata Investment Corp, Hindustan Aeronautics, Indian Railway Finance Corp, and Bajaj Holdings & Investmentare in the overbought zone, according to the relative strength index or RSI.
SRF rises as WTI crude and brent crude prices fall to $88.7 per barrel and $94.9 per barrel.
Harsha Engineers International, the iron & steel products manufacturer, opens for IPO subscription tomorrow. The price band for the issue is Rs 314-330 per share. The size of the issue is Rs 755 crore, comprising a fresh issue of Rs 455 crore and an offer for sale for Rs 300 crore. The risk factors for this company are its over-dependence on limited customers and outstanding litigations.
ICICI Securities maintains 'Buy' rating on DCB Bank with a target price of Rs 145. This indicates an upside of 38.1%. The brokerage believes that the bank's strong operational history, stable management team and improving credit growth revival will bode well for the stock. It estimates the bank's revenue to grow at a CAGR of 10.8% over FY22-24.
SRFand Ratnamani Metals & Tubeshit their 52-week highsof Rs 2,848.9 and Rs 1,968.2, respectively. SRF rises for two consecutive sessions, while Ratnamani Metals & Tubes rises in today's session.
- Centre may announce changes in windfall tax and export duties on fuel after international crude oil prices fall in the past 15 days.
DB Realty rises and hits the upper circuit on reports of its merger with Adani Group’s real estate arm. The merger will lead to Adani Group infusing funds into DB Realty which may lead to a fresh issuance to new investors, according to reports.
Zydus Lifesciences receives final approval from the US Food and Drug Administration to market lenalidomide capsules. This drug is used to treat various types of cancers. The capsules had annual sales of $ 2.86 billion (approximately Rs 22,630 crore) in the US for the 12 months ended July 2022.
Healthcare Equipment & Supplies, Media, and Transportation sectors rise more than 12% in the past month.
Vedanta signs a joint venture agreement with Foxconn to set up a semiconductor plant in Ahemdabad, Gujarat, according to reports. The joint venture will invest Rs 1.54 lakh crore in the plant. Vedanta also obtains financial and nonfinancial subsidies on capex and cheap electricity from Gujarat for the plant.
Morgan Stanley expects India’s investment-to-GDP ratio to increase to 36% by FY27E. It says that reducing NPAs of banks and NBFCs, PLI schemes and improvement in government capex will boost India’s capex cycle in the coming years.
Motilal Oswal initiates coverage on Computer Age Management Services with a ‘Buy’ rating and a target price of Rs 3,000. This indicates an upside of 22%. The brokerage believes the company is well placed to benefit from the growing financialisation of savings in India, given its 70% market share in the mutual fund registrar and transfer agent industry. The brokerage expects the company’s net profit to grow at a CAGR of 15% over FY22-25.
India's Index of Industrial Production (IIP) growth falls to a four-month low at 2.4% in July compared to 12.7% in June, as the low base effect wanes. The manufacturing sector's growth slowed to 3.2% in July compared to 13% in June.
Dixon Technologies rises as its wholly owned subsidiary Padget Electronics receives approval from the Centre for disbursement of PLI (production-linked incentive). The subsidiary will receive an amount of Rs 53.2 crore as an incentive under the PLI scheme.
- Abrdn Plc, promoter of HDFC Life Insurance, may sell 2% stake in the company through a block deal, according to reports. Abrdn Plc currently holds 3.72% stake in HDFC Life, as on June 2022.
IRB Infrastructure Developers is rising as its toll collections in August increase by 35% YoY to Rs 336 crore.
Indian rupee gains 25 paise to 79.28 against the dollar in early trade today.
Metal stocks like Vedanta, Jindal Steel & Power, National Aluminium among others are rising in trade. All constituents of the broader BSE Metal index are trading in the green.
India’s Consumer Price Index (CPI) stands at 7% in August against 6.7% in July. The rise in CPI is because of increase in prices of cereals, vegetables, and prepared meal snacks, among others. However, inflation in oils and fuel fell to 10.8% in August against 11.7% in July.
General Atlantic Singapore sells 22 lakh shares (2.7% stake) in Krishna Institute of Medical Sciences (KIMS) for Rs 275 crore in a bulk deal. In another deal, ICICI Prudential Smallcap Fund and ICICI Prudential Long-Term Equity pick up 20 lakh shares (2.5% stake) in KIMS for Rs 250 crore.
Riding High:
Largecap and midcap gainers today include PB Fintech Ltd. (565.05, 11.88%), Relaxo Footwears Ltd. (1,086.20, 7.60%) and Zomato Ltd. (65.45, 4.64%).
Downers:
Largecap and midcap losers today include Astral Ltd. (2,445.80, -4.17%), Tube Investments of India Ltd. (2,649.65, -3.14%) and Dr. Lal Pathlabs Ltd. (2,434.65, -2.46%).
Movers and Shakers
38 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KRBL Ltd. (365.05, 13.78%), Maharashtra Scooters Ltd. (5,130.30, 12.28%) and PB Fintech Ltd. (565.05, 11.88%).
Top high volume losers on BSE were Tata Communications Ltd. (1,236.05, -1.46%), Uflex Ltd. (772.70, -0.32%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,417.70, -0.16%).
Relaxo Footwears Ltd. (1,086.20, 7.60%) was trading at 17.4 times of weekly average. Rallis India Ltd. (239.20, 4.91%) and Laxmi Organic Industries Ltd. (375.20, 7.92%) were trading with volumes 9.5 and 9.1 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
34 stocks hit their 52-week highs, while 2 stocks tanked below their 52-week lows.
Stocks touching their year highs included - ACC Ltd. (2,572.80, 2.88%), Adani Ports & Special Economic Zone Ltd. (948.80, 1.10%) and Adani Transmission Ltd. (4,037.05, 0.78%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (630.75, -0.83%) and Sanofi India Ltd. (6,077.70, -0.46%).
23 stocks climbed above their 200 day SMA including PNB Housing Finance Ltd. (402.50, 8.16%) and Rallis India Ltd. (239.20, 4.91%). 3 stocks slipped below their 200 SMA including TCNS Clothing Co. Ltd. (680.95, -2.17%) and Sobha Ltd. (707.70, -1.59%).