Market closes higher, Edelweiss maintains a ‘BUY’ rating on Infosys

Trendlyne Analysis

Nifty 50 recovered from its fall in the first hour of the session and closed 0.8% higher. The Indian volatility index, India VIX surged 6.8% as investors continue to remain cautious and monitor the effect of the fresh sanctions by the West on Russia. Safe-haven asset gold edges higher with the prevailing global uncertainties.

Nifty Midcap 100 extended its gains throughout the day to close 1.2% higher. Nifty Metal closed 2.5% higher, outperforming the benchmark index. Nifty IT settled in the green tracking the tech-focused NASDAQ 100, which closed 1.3% higher on Friday. Madhabi Puri Buch to assume charge as the chairperson for market regulator Securities and Exchange Board of India (SEBI) from Tuesday.

Markets rose in today's trading. Nifty 50 closed at 16,793.90 (135.5, 0.8%) , BSE Sensex closed at 56,247.28 (388.8, 0.7%) while the broader Nifty 500 closed at 14,307.95 (120.6, 0.9%)

Market breadth is in the green. Of the 1,886 stocks traded today, 1,172 were in the positive territory and 673 were negative.

WABCO India, Great Eastern Shipping Company, UTI Asset Management Company, and Jyothy Labs are trading with higher volumes as compared to Friday.
Geojit BNP Paribas maintains a ‘Buy’ rating on InterGlobe Aviation (Indigo) with a target price of Rs 2,188 indicating an upside of 19%. The brokerage has a positive view of the carrier, expecting it to capitalize on the strong passenger growth with its cost-efficient fleet operations, market leadership position, and healthy cash position.
Rain Industries is falling as it reports a loss of Rs 72.2 crore in Q3FY22 against a profit of Rs 322 crore in Q3FY21. The company reports loss despite a revenue increase of 32% YoY to Rs 4,806 crore. Inventory write-down of Rs 165.5 crore due to Covid-19 and a fall in oil prices leads to an increase in the company’s total expenses.
Edelweiss maintains a ‘BUY’ rating on Infosys with a target price of Rs 1,882, indicating an upside of 11%. The brokerage remains positive on the company as it is tapping into newer growth areas including cybersecurity and data analytics post cloud migration. The brokerage expects the company’s revenue to grow at 13.6% CAGR over FY21-FY24E
Metal stocks like Hindalco, Tata Steel, JSW Steel, Jindal Steel and Power, and SAIL are trading higher. The broader sectoral index Nifty Metal is also trading in the green today.
Nalanda India Equity Fund buys 12.73 lakh shares or 1.14% stake in Advanced Enzymes Technologies for an average price of Rs 289.72 in a bulk deal on Friday.
KSB is trading with more than 5 times its weekly average trading volume. Alembic, Biocon, Bayer Cropscience, and Future Retail are trading at more than three times their weekly average trading volumes.
Airlines stocks like InterGlobe Aviation, SpiceJet and Jet Airways are trading lower as directorate general of civil aviation extends international flight operation suspension until further notice.
Future group stocks like Future Consumer, Future Enterprise, Future Retail, Future Supply Chain solutions among others rises as reports say Reliance Industries will invest in at least 200 Future Retail stores
Biocon’s subsidy Biocon Biologics enters into an agreement with Viatris to acquire its biosimilars business for $3.35 billion, including cash of up to $2.33 billion and Compulsorily Convertible Preference Shares (CCPS) in Biocon Biologics, valued at $1 billion. The company said following the completion of the deal it will have one of the broadest and deepest commercialized biosimilars portfolio in the industry.
Bharti Airtel agrees to acquire additional equity stake of 4.7% in Indus Towers from the Vodafone group provided Vodafone will apply the same in clearing its outstanding dues towards the target company. This will increase Bharti's stake in the company to 46.4% from current 41.73%.
Vedanta to start production in two of its mines (Amkhani and Radhikapur coal mines) in Odisha to provide raw material security for its manufacturing plants. The expansion of the company's aluminum refinery from the current two Million Tonnes Per Annum (MPTA) to five MTPA is going as per the schedule. The company plans to focus on backward integration in the next fiscal.
Aurobindo Pharma and Sun Pharmaceutical Industries are recalling products in the US market due to deviation from standard manufacturing norms. Aurobindo Pharma is recalling 1.1 lakh bottles of antibiotic ‘Moxifloxacin Ophthalmic Solution’ and Sun Pharma is recalling 59,232 bottles of ‘Chlorthalidone' tablets. As per the US regulator, Sun Pharma is recalling products because of the presence of stainless-steel microscopic particles mixed with lubricant oil and silicone particles.

Riding High:

Largecap and midcap gainers today include Natco Pharma Ltd. (869.50, 9.26%), Hindalco Industries Ltd. (573.75, 7.46%) and GAIL (India) Ltd. (144.85, 7.46%).

Downers:

Largecap and midcap losers today include Biocon Ltd. (348.85, -11.58%), Adani Green Energy Ltd. (1,843.40, -4.16%) and Macrotech Developers Ltd. (1,127.50, -4.03%).

Volume Rockets

18 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included UTI Asset Management Company Ltd. (836.05, 13.42%), KSB Ltd. (1,097.10, 9.82%) and Krishna Institute of Medical Sciences Ltd. (1,267.75, 7.87%).

Top high volume losers on BSE were Biocon Ltd. (348.85, -11.58%), Edelweiss Financial Services Ltd. (54.55, -8.32%) and Rain Industries Ltd. (184.75, -7.25%).

Endurance Technologies Ltd. (1,318.25, -2.50%) was trading at 7.1 times of weekly average. Hawkins Cookers Ltd. (5,345.00, 2.74%) and Dabur India Ltd. (563.35, 3.40%) were trading with volumes 6.3 and 5.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks hit their 52-week highs, while 17 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Hindalco Industries Ltd. (573.75, 7.46%), Narayana Hrudayalaya Ltd. (685.40, 4.75%) and Fine Organic Industries Ltd. (4,290.10, 0.40%).

Stocks making new 52-weeks lows included - Aegis Logistics Ltd. (168.80, -1.75%) and AIA Engineering Ltd. (1,624.20, -0.93%).

38 stocks climbed above their 200 day SMA including Crisil Ltd. (2,878.15, 6.09%) and Bharat Electronics Ltd. (210.45, 5.15%). 18 stocks slipped below their 200 SMA including Biocon Ltd. (348.85, -11.58%) and TVS Motor Company Ltd. (617.60, -2.27%).