Market closes lower, Axis Securities maintains a ‘BUY’ rating on TVS Motors

Trendlyne Analysis

Nifty 50 settled 1.1% lower with Indian volatility index, India VIX rising. All Asian indices closed in the red tracking the US indices which closed sharply lower on Tuesday. Global stocks extend their sell-off as investors continue to assess the economic impact of the Russian invasion on Ukraine. Crude oil prices rise with fears of its supply chain disruption escalating. Safe-haven assets inch forward amid prevailing global uncertainties.

Nifty Metal closed 4% higher, gaining close to 15% in three sessions. Nifty Auto and Nifty Bank traded in red throughout the day to close sharply lower. Nifty Oil and Gas closed 1.2% higher amid rising commodity prices globally.

Market sinks in today's trading. Nifty 50 closed at 16,605.95 (-188.0, -1.1%), BSE Sensex closed at 55,468.90 (-778.4, -1.4%) while the broader Nifty 500 closed at 14,199.80 (-108.2, -0.8%)

Market breadth is in the red. Of the 1,856 stocks traded today, 850 were gainers and 972 were losers.

WABCO India, Great Eastern Shipping Company, UTI Asset Management Company, and Jyothy Labs are trading with higher volumes as compared to Monday.
Maruti Suzuki’s total passenger vehicle production declines marginally to 1,65,672 units in February 2022 from 1,65,683 units in February 2021 owing to chip shortage. Combined production of passenger vehicle and light commercial vehicle rises marginally by 0.9% YoY to 1.69 lakh units.
ICICI Securities maintains a ‘Buy’ rating on Easy Trip Planners with a target price of Rs 355 indicating an upside of 22%. With airlines being allowed to fly in full capacity, the brokerage believes the company is well-positioned to benefit with its lean cost model, no convenience fee strategy, and healthy customer repeat transaction rate.
Oil and gas stocks like Oil and Natural Gas Corporation, and Oil India, among others, rise as price of crude oil surges because of the ongoing Russia-Ukraine conflict.
HDFC Life Insurance Company is trading with more than six times its weekly average trading volume. Coal India, Hindustan Zinc, Motilal Oswal Financial Services, and Varun Beverages are trading at more than two times their weekly average trading volumes.
Axis Securities maintains a ‘BUY’ rating on TVS Motors with a target price of Rs 720, indicating an upside of 14%. The brokerage expects the company’s EBITDA margins to remain sustainable at current levels over the coming quarters on account of higher exports, improving product mix, and cost optimization measures.
Tata Motors' domestic wholesales rise 27% YoY to 73,875 units in February 2022. Passenger vehicles wholesales rise by 47% YoY to 39,981 units and commercial vehicle wholesales rise by 11% YoY to 37,552 units.
Coal India's coal production rises 3.9% YoY to 64.3 million tonnes in February 2022. The company's offtake rises 12% YoY to 57.4 million tonnes.
Truecaller announces partnership with Tanla Platforms. Truecaller’s Business Messaging will be exclusively powered by Tanla's Wisely CPaaS (Communication platform-as-a-service) platform. The aim is to help businesses reach out to their customers with relevant messages and engaging content, along with offering benefits for businesses like lower costs, faster deliveries, and better analytics, unlike traditional SMS services.
Page Industries' Managing Director Sunder Genomal resigns and will continue to work as non-executive director in the company. The resignation will be effective from May 31, 2022.
Eicher Motors’ Royal Enfield's February 2022 wholesales falls 15% YoY to 59,160 units due to continuing supply chain disruptions causing semiconductor chips shortage. Royal Enfield’s motorcycles with engine capacity up to 350cc sees a 23% YoY decline in wholesales to 49,484 units while models with engine capacity above 350cc see 83% YoY rise to 9,676 units. Total exports rise 55% YoY to 7,025 units.

Riding High:

Largecap and midcap gainers today include Hindustan Zinc Ltd. (351.75, 12.76%), Oil India Ltd. (244.50, 9.67%) and Coal India Ltd. (184.80, 8.99%).

Downers:

Largecap and midcap losers today include Maruti Suzuki India Ltd. (7,814.20, -6.01%), Dr. Reddy's Laboratories Ltd. (3,853.15, -5.17%) and Crompton Greaves Consumer Electricals Ltd. (407.45, -4.91%).

Movers and Shakers

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

Top high volume gainers on BSE included Hindustan Zinc Ltd. (351.75, 12.76%), Tata Metaliks Ltd. (833.15, 12.09%), and Oil India Ltd. (244.50, 9.67%).

Top high volume losers on BSE were Tata Teleservices (Maharashtra) Ltd. (113.75, -3.27%), Motilal Oswal Financial Services Ltd. (857.15, -2.39%) and Bajaj Holdings & Investment Ltd. (5,101.70, -1.94%).

HDFC Life Insurance Company Ltd. (560.80, 7.19%) was trading at 7.9 times of weekly average. Coal India Ltd. (184.80, 8.99%) and Varun Beverages Ltd. (975.85, 3.21%) were trading with volumes 5.2 and 4.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows, and moving averages

8 stocks made 52-week highs, while 8 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (2,241.05, 5.00%), Hindalco Industries Ltd. (600.10, 4.59%), and Vedanta Ltd. (387.30, 1.84%).

Stocks making new 52 weeks lows included - City Union Bank Ltd. (120.40, -3.80%) and Dr. Reddy's Laboratories Ltd. (3,853.15, -5.17%).

18 stocks climbed above their 200 day SMA including Hindustan Zinc Ltd. (351.75, 12.76%) and NHPC Ltd. (29.10, 6.20%). 17 stocks slipped below their 200 SMA including Varroc Engineering Ltd. (339.30, -4.66%) and Asian Paints Ltd. (3,028.95, -4.59%).