Trendlyne Analysis
Indian indices closed in the red with the volatility index, India VIX, rising over 19.5%. The Nifty 50 lost over 240 points and closed below the 17,350 mark. European indices followed the global trend and traded lower than Friday. Major Asian indices closed in the red, tracking the US indices, which closed deep in the red on Friday. US stocks fell after the US Federal Reserve Chairman Jerome Powell reiterated that the Fed will continue to raise federal funds rates to tame multi-decade high inflation. The Chairman also acknowledged that tighter monetary policy will slow down the economy and potentially lead to job losses. In reaction to Powell’s speech, the tech-heavy index NASDAQ 100 plunged over 4% while the Dow Jones closed 3% lower. Brent crude oil futures traded higher after rising over 5% last week.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Realty closed lower than Friday. Nifty IT closed deep in the red, taking cues from the NASDAQ 100, which fell over 4% on Friday.
Nifty 50closed at 17,339.10 (-219.8, -1.3%),BSE Sensexclosed at 57,972.62 (-861.3, -1.5%) while the broader Nifty 500closed at 14,992.70 (-154.9, -1.0%)
Market breadth is in the red. Of the 1,942 stocks traded today, 644 were gainers and 1,251 were losers.
- Reliance Industries to invest Rs 75,000 crore on a oil-to-chemicals value chain business over the next three years, according to reports.
Hardware Technology & Equipment and Healthcare Equipment & Supplies sectors rise by more than 3% in trade today.
MphasiS and Biocon hit their 52-week lows of Rs 2,062.1 and Rs 298.5, respectively. MphasiS falls for seven consecutive sessions, while Biocon trades lower for last two sessions.
Geojit BNP Paribas upgrades its rating on Bata India to ‘Buy’ from ‘Accumulate’ with a target price of Rs 2,151. This indicates an upside of 16%. The brokerage believes the company can revive its revenue growth trajectory as the economy normalizes. It expects the company’s strong brand recall, extensive distribution reach, and strong balance sheet to drive revenue growth. The brokerage anticipates the company’s revenue to grow at a CAGR of 29.4%.
Stocks like Thermax, Mazagon Dock Shipbuilders, Indigo Paints, and Tata Communicationsare in the overbought zone, according to the money flow index or MFI.
IDBI Capital maintains its ‘Buy’ rating on PSP Projects with a target price of Rs 715, indicating an upside of 22%. The brokerage is positive on the company’s prospects given its stable cash flow, project execution ability, consistent order wins, and strong balance sheet. It expects the company’s revenue to grow at a CAGR of 21% over FY22-24.
Lupin is rising as the company in partnership with Pharmascience receives tentative approval from the US Food and Drug Administration for its abbreviated new drug application Dasatinib tablets. These tablets are used to treat certain cases of leukaemia. The tablets had an estimated annual sales of $ 1.57 billion in the US for the 12 months ended June 2022.
Reliance Industries subsidiary Reliance Retail bids Rs 5,600 crore to acquire Metro Cash and Carry's India operations, according to reports. Reliance Retail is one of the highest bidders after Charoen Pokphand Group and Lightspeed Venture Partners.
IT Networking Equipment, Shipping, and Healthcare Supplies industries rise by more than 3% in trade today.
Axis Bank is likely to raise its stake to 20% in Max Life Insurance (a subsidiary of Max Financial Services) over the next 6-9 months, says Max Life’s CEO Prashant Tripathy. Axis Bank and its subsidiaries currently hold a 12.99% stake in Max Life Insurance.
Indian Railway Catering & Tourism Corporation (IRCTC) shares fall after the Centre withdraws a tender for appointing a consultant for data monetization. The tender was floated by IRCTC on July 29.
Axis Direct maintains its ‘Buy’ rating on G R Infraprojects with a target price of Rs 1,620. This indicates an upside of 16%. The brokerage remains optimistic about the company’s prospects given its strong execution prowess, diversified order book, and lean balance sheet. It expects the company’s revenue to grow at a CAGR of 13% over FY22-24.
M Anandan, Chairman and Managing Director at Aptus Value Housing Finance, says that NPAs have gone up due to COVID-19. He also says that, the company expects a loan growth of about 25-30% in FY23.
US FDA issues from 483 to Aurobindo Pharma with a procedural issue observed at its Raleigh plant in North Carolina which manufactures inhalers and derma products. The form is issued when the regulator observes a violation of the Food Drug and Cosmetics Act. However, no data integrity issues were reported in the inspection.
Sansera Engineering is rising as its bags a repeat order worth Rs 50.8 crore from a North American electric vehicle manufacturer. The order involves precision forged and machined components for electric passenger vehicles. The company says mass production of the components will start in FY24.
IT stocks like Tech Mahindra, Infosys, Mindtree, Larsen & Toubro Infotech, and MphasiS are falling in trade. The broader sectoral index Nifty IT is also trading in the red.
Indian rupee hits a record low of 80.15 against the US dollar in early trade today. This comes after US Federal Reserve Chairman on Friday said that the interest rates in the US will increase and remain at higher levels.
L&T Technology Services wins a five-year, multi-million-dollar deal from BMW group. The order pertains to providing high-end engineering services to the BMW Group’s infotainment systems used in its hybrid vehicles.
Edelweiss Finance sells 3.4 lakh shares (0.54% stake) in Sapphire Foods for Rs 41.8 crore in a bulk deal on Friday. In another bulk deal, PGIM India Mutual Fund sells 13 lakh shares (0.62% stake) in Orient Electric for Rs 34.2 crore.
RITES is rising as the company and its joint venture partner bag an order worth Rs 361.2 crore to redevelop Kollam railways station in Kerala. The company has a 51% stake in the joint venture.
New Delhi Television (NDTV) postpones its annual general meeting (AGM) by a week. The AGM will not be held on September 27. The company says that the rescheduling is because of the processes required after the open offer made by Vishvapradhan Commercial (VCPL) to acquire a 26% stake in NDTV.
Riding High:
Largecap and midcap gainers today include Adani Power Ltd. (394.25, 4.99%), Colgate-Palmolive (India) Ltd. (1,630.00, 3.74%) and Patanjali Foods Ltd. (1,172.95, 3.48%).
Downers:
Largecap and midcap losers today include Info Edge (India) Ltd. (4,157.60, -6.29%), Tata Elxsi Ltd. (8,870.85, -5.11%) and One97 Communications Ltd. (726.40, -4.68%).
Crowd Puller Stocks
23 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Poly Medicure Ltd. (868.25, 14.49%), Mazagon Dock Shipbuilders Ltd. (399.00, 12.66%) and Aegis Logistics Ltd. (294.80, 10.29%).
Top high volume losers on BSE were Thyrocare Technologies Ltd. (611.25, -2.61%), Oracle Financial Services Software Ltd. (3,154.15, -2.33%) and Westlife Development Ltd. (642.05, -0.39%).
Jubilant Pharmova Ltd. (348.80, 3.49%) was trading at 15.8 times of weekly average. Hathway Cable & Datacom Ltd. (17.45, 3.56%) and Vaibhav Global Ltd. (335.60, 8.59%) were trading with volumes 9.4 and 6.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
13 stocks overperformed with 52-week highs, while 6 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Adani Transmission Ltd. (3,855.55, 2.78%), Aegis Logistics Ltd. (294.80, 10.29%) and Bharat Electronics Ltd. (308.85, 1.15%).
Stocks making new 52 weeks lows included - Biocon Ltd. (303.50, -1.06%) and MphasiS Ltd. (2,087.30, -3.64%).
9 stocks climbed above their 200 day SMA including Poly Medicure Ltd. (868.25, 14.49%) and Kalpataru Power Transmissions Ltd. (410.75, 5.15%). 18 stocks slipped below their 200 SMA including Route Mobile Ltd. (1,499.75, -4.17%) and Bandhan Bank Ltd. (275.35, -3.84%).