Market closes lower, BOB Caps maintains ‘BUY’ on Aurobindo Pharma

Trendlyne Analysis

Nifty 50 closed lower on a volatile day of trade. Most Asian indices closed lower, tracking the US indices, which closed in the red on Wednesday. European stocks trade lower on the back of a 30-year high inflation print of 7.3% in Germany and no real developments from the peace talks between Russia and Ukraine. Crude oil prices fall more than 4% as the United States mulls drawing from its oil reserves to curb the surge in fuel prices. The OPEC+ group is set to meet today to determine the output levels for oil production beginning in May.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green despite the benchmark index closing in the red. Nifty metal, which lost over 2% yesterday, closed flat. Nifty IT trades closed lower, tracking the tech-heavy NASDAQ 100, which closed 1.1% lower on Thursday.

Nifty 50 closed at 17,464.75 (-33.5, -0.2%), BSE Sensex closed at 58,568.51 (-115.5, -0.2%) while the broader Nifty 500 closed at 14,894.50 (-2.4, 0.0%)

Market breadth is in the red. Of the 1,882 stocks traded today, 771 were on the uptick, and 1,089 were down.

Phoenix Mills, Supreme Industries, Grindwell Norton, and Avanti Feeds are trading with higher volumes as compared to Wednesday.
ICICI Securities maintains a ‘Buy’ rating on Axis Bank with a target price of Rs 1,050, indicating an upside of 40%. The brokerage is bullish on the company’s acquisition of Citibank’s consumer business in India. It expects the acquisition to give the company access to a huge retail base, an affluent and profitable consumer base, and strategic synergy benefits over the medium term.
Reliance Industries' telecom arm Reliance Jio lost 94 lakh subscribers MoM for the second consecutive month in January 2022, according to data from the Telecom Regulatory Authority of India. On the other hand, Bharti Airtel added 7 lakh subscribers to its overall subscriber base.
Veranda Learnings Solutions’ Rs 200-crore IPO gets bids for 3.53X of the available 1.2 crore shares on offer on the third day of bidding. Retail investors quota gets bids for 10.76X of the available 15.4 lakh shares. The offer comprises entirely of a fresh issue of Rs 200 crore.
Hariom Pipes' Rs 130.1-crore IPO gets bids for 1.48X of the available 85 lakh shares on offer on the second day of bidding. Retail investors put in bids for 3.55X of the available 29.75 lakh shares. The offer comprises entirely of a fresh issue of Rs 130.1 crore.
BOB Capital Markets maintains a ‘BUY’ rating on Aurobindo Pharma with a target price of Rs 850, indicating an upside of 20%. The brokerage maintains a positive outlook on the company as its acquisition of Veritaz Healthcare allows the company to foray into the domestic formulation business. However, the brokerage awaits better clarity on the strategy and financial planning post-acquisition before incorporating Veritaz into their estimates.
Max Healthcare Institute is trading with more than sixty-nine times its weekly average trading volume. IIFL Wealth Management, Edelweiss Financial Services, ABB India and KEI Industries are trading at more than four times their weekly average trading volumes.
Ashoka Buildcon wins bid to develop six lanes access-controlled greenfield highway from Baswantpur to Singond from National Highways Authority of India. The accepted bid cost for the project is Rs 1,079 crore.
Competition commission of India conducts an enquiry in the offices of tyre makers like Apollo Tyres, Ceat and Continental AG. The enquiry is in relation to suspicion of unfair trade practices carried on by these companies in the state of Haryana.
IIFL Wealth Management rises as Bain Capital is set to buy 2.2 crore or 24.98% stake in the company from Fairfax India Holdings. The total consideration for this stake acquisition will be close to Rs 3,680 crore.
Tejas Networks is rising as it is set to acquire a 64.4% stake in semiconductor firm Saankhya Labs for Rs 283.94 crore in an all-cash deal. The company expects the acquisition to enhance its wireless offerings and increase its customer base in India and the international markets.
Info Edge’s wholly-owned subsidiary, Allcheckdeals India, invests Rs 137.1 crore in 4B Networks. Allcheckdeals plans to strengthen its offering in the real estate segment by providing a new platform for real estate industry professionals via the 4B network’s broker network platform.
Axis Bank to acquire Citibank India’s retail business for Rs 12,235 crore in an all-cash deal. The deal includes Citibank’s credit card, retail banking, wealth management, and consumer loan business. The deal also includes the sale of consumer business of its non-banking financial company (NBFC), Citicorp Finance (India).

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (185.10, 7.93%), Tata Communications Ltd. (1,228.60, 6.09%) and Hindustan Aeronautics Ltd. (1,484.90, 5.72%).

Downers:

Largecap and midcap losers today include Hindalco Industries Ltd. (569.50, -5.05%), Indian Overseas Bank (18.15, -4.22%) and Max Healthcare Institute Ltd. (347.65, -3.70%).

Movers and Shakers

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

Top high volume gainers on BSE included Edelweiss Financial Services Ltd. (58.70, 15.44%), Mahindra Lifespace Developers Ltd. (395.20, 10.86%) and Bajaj Consumer Care Ltd. (163.30, 9.08%).

Top high volume losers on BSE were CSB Bank Ltd. (211.15, -5.48%), Max Healthcare Institute Ltd. (347.65, -3.70%) and Brigade Enterprises Ltd. (516.85, -1.80%).

IIFL Wealth Management Ltd. (1,668.90, 0.01%) was trading at 10.2 times of weekly average. V Mart Retail Ltd. (3,966.30, 4.67%) and Kansai Nerolac Paints Ltd. (467.75, 3.96%) were trading with volumes 7.4 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks overperformed with 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (185.10, 7.93%), Cummins India Ltd. (1,121.30, 1.22%) and Delta Corp Ltd. (330.05, 1.65%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (412.35, -0.87%) and Gujarat Pipavav Port Ltd. (76.40, -0.84%).

30 stocks climbed above their 200 day SMA including NOCIL Ltd. (248.90, 8.26%) and HFCL Ltd. (78.70, 7.15%). 10 stocks slipped below their 200 SMA including Max Healthcare Institute Ltd. (347.65, -3.70%) and Apollo Hospitals Enterprise Ltd. (4,516.10, -2.14%).