Market closes lower, Edelweiss maintains ‘Neutral’ rating on Bank of Baroda

Trendlyne Analysis

Nifty 50 closed in the red with the Indian volatility index, India VIX rising 4.9%. All Asian indices closed in red as investors remain highly cautious of the implications of the Russia-Ukraine war situation. Crude oil prices surge to touch $139 per barrel briefly, fearing its supply chain disruption. Rupee hits a lifetime low of Rs 76.96 per Dollar as oil prices climb to new highs and foreign institutional investors outflow continues to rise. Nifty Metal, which gained over 12% last week, closed 2% higher today.

Nifty Bank ended the session 4.35% lower, extending its decline from last week. Nifty IT closed flat outperforming the broader market indices as Indian Rupee touched a lifetime low against the US Dollar resulting in possibility of higher margins for IT companies through forex gains.

Markets fell in today's trading. Nifty 50 closed at 15,863.15 (-382.2, -2.4%), BSE Sensex closed at 52,842.75 (-1,491.1, -2.7%) while the broader Nifty 500 closed at 13,564.25 (-328.9, -2.4%).

Market breadth is sharply down. Of the 1,891 stocks traded today, 271 showed gains, and 1,593 showed losses.

V-Guard Industries, SKF India, Nilkamal, and Carborundum Universal are trading with higher volumes as compared to Friday.
Realty stocks including, Godrej Properties, Macrotech Developers, Phoenix Mills, and Oberoi Realty, are falling in trade. The broader sectoral index Nifty realty is also trading in the red.
Metal stocks like Hindalco, Vedanta, Coal India, NMDC, and Jindal Steel and Power are trading higher. The broader sectoral index Nifty Metal is also trading in the green today.
Edelweiss maintains ‘Neutral’ rating on Bank of Baroda with a target price upside of 11% as it expects asset quality for the bank to improve by FY24. Analysts expect gross NPA and net NPA to fall below 5% and 2%, respectively, by FY24. Analysts also expect loan growth and reduced provisions to aid the bank’s profitability in FY23.
ICICI Securities maintains a ‘HOLD’ rating on Biocon with a target price of Rs 390, indicating an upside of 13%. The brokerage has a positive outlook on the company’s recent acquisition of Viatris for $3.3 billion in stock and cash. The brokerage expects Viatris to contribute to Biocon’s current biosimilars portfolio and related commercial and operational capabilities.
Paint companies’ stocks are trading lower with stocks like Asian Paints, Berger Paints (India), and Kansai Nerolac Paints, among others, falling in trade. This is because of spike in crude oil prices amid the ongoing war between Russia and Ukraine.
3M India is trading with more than five times its weekly average trading volume. PNB Housing Finance, Jyothy Labs, GlaxoSmithKline Pharmaceuticals, and La Opala RG are trading at more than three times their weekly average trading volumes.
JK Cement falls on the bourses after it announces a foray into the paints business through a wholly owned subsidiary. The cement major will invest Rs 600 crore over the next 5 years to develop this new venture.
PNB Housing Finance is rising as the board of directors meeting is scheduled on Wednesday to consider fundraising options by the issue of equity shares through appropriate methods (including rights issues). The company had previously failed to raise Rs 4,000 crore by selling a stake to Carlyle Group last year.
Info Edge acquires a 76% stake in online dating company Aisle Network for Rs 91 crore. The company acquires 21,483 shares comprising 11,699 compulsory convertible preference shares and 9,784 equity shares through a mix of primary infusion and secondary purchase.
Nazara Technologies to acquire 33% stake in Datawrkz Business Solutions. The company will issue equity shares worth Rs 24.9 crore to existing shareholders of Datawrkz Business Solutions as consideration
In its fourth buyback offer of Rs 18,000-crore, TCS will buy 1 share for every 7 shares held by the retail investors on the record date i.e. February 23, 2022. TCS will buy back 1 share for a lot of 108 shares held by all other eligible investors
Auto stocks are trading lower with stocks like Maruti Suzuki, Mahindra & Mahindra, Hero MotoCorp, TVS Motor Company among others falling in trade. The broader sectoral index Nifty Auto is also trading lower today on the Union Ministry of Road Transport proposing a hike in the third-party motor insurance premium for various categories of vehicles.
Coal India's subsidiary Bharat Coking Coal’s (BCCL) production increases 61% YoY to 3.24 million tonnes in February 2022. BCCL’s coal offtake is up 66% YoY to 2.93 million tonnes.

Riding High:

Largecap and midcap gainers today include Oil And Natural Gas Corporation Ltd. (186.95, 13.13%), Zee Entertainment Enterprises Ltd. (238.00, 6.18%) and Hindalco Industries Ltd. (619.75, 6.16%).

Downers:

Largecap and midcap losers today include Godrej Consumer Products Ltd. (664.70, -7.94%), Piramal Enterprises Ltd. (1,886.60, -7.87%) and Cholamandalam Investment & Finance Company Ltd. (607.30, -7.78%).

Volume Shockers

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

Top high volume gainers on BSE included Oil And Natural Gas Corporation Ltd. (186.95, 13.13%), PNB Housing Finance Ltd. (425.90, 5.71%) and Cyient Ltd. (919.75, 4.62%).

Top high volume losers on BSE were JK Cement Ltd. (2,336.90, -11.47%), KEC International Ltd. (417.80, -6.38%) and KPR Mill Ltd. (594.00, -5.26%).

3M India Ltd. (19,925.95, -2.22%) was trading at 5.8 times of weekly average. Vinati Organics Ltd. (1,834.00, -0.01%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,505.95, 1.24%) were trading with volumes 4.5 and 4.5 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 74 stocks hit their 52-week lows.

Stocks touching their year highs included - Hindalco Industries Ltd. (619.75, 6.16%), Oil And Natural Gas Corporation Ltd. (186.95, 13.13%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (608.20, 1.57%).

Stocks making new 52 weeks lows included - 3M India Ltd. (19,925.95, -2.22%) and AIA Engineering Ltd. (1,586.45, 2.44%).

2 stocks climbed above their 200 day SMA including TCI Express Ltd. (1,757.70, 3.50%) and ITC Ltd. (224.95, -0.24%). 50 stocks slipped below their 200 SMA including Vodafone Idea Ltd. (9.55, -7.73%) and Maruti Suzuki India Ltd. (6,769.05, -6.60%).