Trendlyne Analysis

Nifty 50 fell over 250 points and closed in the red amid weak global cues. Major Asian indices closed lower, tracking the US indices which also closed in the red on Thursday. The US indices closed sharply lower led by the tech-focused NASDAQ 100, which fell over 2.7%. S&P 500 lost 2.4% while Dow Jones fell 1.9% as investors look ahead to the inflation print to be released later today. Brent crude oil edges lower but continues to trade at elevated levels as China imposes new Covid-19 lockdown measures in parts of Shanghai. On Thursday, the European Central Bank said it would raise the interest rate next month, its first hike since 2011. European indices follow the global trend and trade lower than Thursday’s levels.

Nifty Smallcap 100 and Nifty Next 50 closed in the red, following the benchmark index. Nifty Pharma and Nifty Metal closed lower than Thursday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which fell over 2.7% on Thursday.

Nifty 50 closed at 16,201.80 (-276.3, -1.7%), BSE Sensex closed at 54,303.44 (-1,016.8, -1.8%) while the broader Nifty 500 closed at 13,781.75 (-195.4, -1.4%)

Market breadth is sharply down. Of the 1,880 stocks traded today, 557 were in the positive territory and 1,274 were negative.

• GMR Infrastructure, ZF Commercial Vehicle Control Systems India, Kansai Nerolac Paints, and Krishna Institute of Medical Sciences are trading with higher volumes as compared to Thursday.

• Grasim Industries sees a long build-up in its Jun 30 futures series as its open interest rises 1.1 % with put to call ratio at 0.46.

• Strides Pharma Science's Singapore arm receives approval from the US FDA for Ibuprofin oral suspension drug. This is a non-steroidal and anti-inflammatory drug used as a pain killer for various conditions. Strides Pharma has a competitive generic therapy designation for the drug with 180 days of exclusivity.

• Oil India rises 18.2% this week on account of rising crude oil prices. India's crude oil basket reached a decade high of $121 per barrel, as retail fuel prices continue to remain unchanged. The company’s three-year average annual ROE stands at 16.7%.

• India's auto sector's May wholesales indicate that the worst might be over for the industry as car and bike sales surge.

  #AutoSales | May passenger vehicle sales at 2.51 lk units vs 88,045 units, as per latest @siamindia data#Automobile #SIAM #PassengerVehicles pic.twitter.com/6JjsmkBfWP

  — ET NOW (@ETNOWlive) June 10, 2022

• Stocks like Birla Corporation, Jindal Stainless, Equitas Small Finance Bank, UltraTech Cement, and Amber Enterprises India India are in the oversold zone according to the technical indicator relative strength index or RSI.

• Morgan Stanley gives an ‘overweight’ rating to Tata Consumer Products with a target price of Rs 888, indicating an upside of 18%. It expects the company to expand its sales and distribution infrastructure to become the largest FMCG company. The management believes that reducing costs, building strategic partnerships, and improving cash flows will drive margin growth. However, the brokerage expects fluctuations in input costs, and weak profitability in the packaged food business to affect the earnings of the company.

• Bank stocks like HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank and Bandhan Bank, among others, are falling in trade. The broader sectoral index Nifty Bank is also trading in the red.

• Sugar companies like Shree Renuka Sugars, EID Parry India, The Andhra Sugars, among others, are rising. This is because state-owned fuel retailers--Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp--agree to provide relief to sugar mills, and other producers of ethanol (which is blended with motor fuel). The fuel retailers will compensate ethanol producers for higher energy costs by paying Rs 1,604 per kilolitre for ethanol produces from sugarcane juice, Rs1,439 for B-heavy molasses and Rs 1,179 for ethanol produced from C-heavy molasses. This relief is available between June 1 to November 30.

  #BQStocks | Shares of sugar companies rise.
  
  Here's why: https://t.co/F9hCe6giVj pic.twitter.com/d3amSVtHB3

  — BQ Prime (@bqprime) June 10, 2022

• IIFL Finance is trading with more than 33 times its weekly average trading volume. Tata Teleservices (Maharashtra), TTK Prestige, V-Guard Industries, and Sheela Foam are trading at more than three times their weekly average trading volumes.

• Axis Direct maintains a ‘Buy’ rating on Ambuja Cements with a target price of Rs 405, indicating an upside of 11%. The brokerage remains positive on the company’s prospects due to its focus on selling premium products, sharp cost optimization, new capacity expansion, and higher sales of blended cement. The company's net profit is expected to rise 25.1% in CY23 over CY22, the brokerage added.

• Medplus Health Services hits a new 52-week low as the stock trades below its issue price of Rs 796. The stock is falling for the last six consecutive sessions.

• IIFL Finance is trading with more than 33 times its weekly average trading volume. Tata Teleservices (Maharashtra), TTK Prestige, V-Guard Industries, and Sheela Foam are trading at more than three times their weekly average trading volumes.

• Omaxe is rising after the company announces its partnership with Reliance Jio-BP. It plans to establish a battery charging ecosystem for electric vehicles. Jio-BP will set up electric vehicle charging and swapping infrastructure at various Omaxe properties gradually.

• Shares of Deepak Nitrite rise as the company clarifies that it will restart its plant that caught fire only after complying with the Gujarat state government's order. The plant needs to undergo stability studies and other compliances before reopening.

• Fitch Ratings revises the outlook on India’s long-term foreign-currency issuer default rating to ‘stable’ from ‘negative’. It expects India’s fast economic recovery and stabilization of the financial sector to bode well for its growth. The rating agency forecasts India’s GDP growth for FY23 at 7.8%

  "We expect (India's) robust growth relative to peers to support credit metrics in line with the current rating," the rating agency said. https://t.co/xQaSaqTMFk

  — Mint (@livemint) June 10, 2022

• Metal stocks are trading in the red. Stocks like Tata Steel, Hindalco Industries, Jindal Steel & Power, NMDC, Steel Authority of India and National Aluminium Co or NALCO are falling below 2%. The broader sectoral index Nifty Metal is also falling in trade.

• Alembic Pharmaceuticals receives tentative approval from the US FDA for its Abbreviated New Drug Application (ANDA) for dasatinib tablets. The drug will be used to treat 'Philadelphia Chromosome-positive Chronic Myeloid Leukaemia'. The dasatinib tablets have an estimated market size of $1.46 billion.

• IT stocks like Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra are falling in trade today. The broader sectoral index Nifty IT is also trading in the red today. According to reports, IT stocks are falling as TCS warns of low growth and a high inflation environment going forward. IT stocks are falling despite the Indian rupee falling 4 paise to hit its all-time low of Rs 77.82 against the dollar in early trade today.

• Shares of IIFL Finance rise the most in six weeks to nearly 9% as its subsidiary IIFL Home Finance enters into definitive agreements to raise Rs 2,200 crore of primary capital for a 20% stake from the Abu Dhabi Investment Authority.

• Welspun Enterprises is rising as it plans to plans to sell its operating road projects at an aggregate enterprise value of Rs 6,000 crore to Actus. These projects comprise five completed hybrid annuity models and one tolled road.

• HFCL is rising as it receives orders worth Rs 73.4 crore to supply unlicensed band radio (UBRs) and optical fibre cables. The order for the supply of UBRs is worth Rs 51.1 crore and the order for the supply of optical fibre cables is worth Rs 22.3 crore.

• Dr Reddy’s Laboratories arm Aurigene Discovery inks a global licensing pact with Olema Pharmaceuticals to research, develop, and commercialise novel small molecule inhibitors for a cancer project. Olema will pay a license fee of $8 million to get access to Aurigene's existing cancer research project. Dr Reddy's arm can gain up to $430 million based on clinical development and milestones, and there will also be royalties on annual net sales.

Riding High:

Largecap and midcap gainers today include Deepak Nitrite Ltd. (1,853.40, 3.82%), Trent Ltd. (1,113.30, 2.68%) and Emami Ltd. (422.00, 2.30%).

Downers:

Largecap and midcap losers today include Godrej Properties Ltd. (1,313.40, -4.24%), Adani Total Gas Ltd. (2,398.30, -3.99%) and Kotak Mahindra Bank Ltd. (1,791.80, -3.94%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tata Teleservices (Maharashtra) Ltd. (140.50, 9.98%), IIFL Finance Ltd. (353.70, 7.72%) and IOL Chemicals and Pharmaceuticals Ltd. (355.00, 7.28%).

Top high volume losers on BSE were PNB Housing Finance Ltd. (369.45, -7.04%), V-Guard Industries Ltd. (230.45, -2.39%) and TTK Prestige Ltd. (792.25, -2.38%).

Sheela Foam Ltd. (2,801.05, -0.62%) was trading at 5.1 times of weekly average. JSW Energy Ltd. (247.75, 1.75%) and Torrent Power Ltd. (466.00, 1.89%) were trading with volumes 4.3 and 3.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks overperformed with 52-week highs, while 14 stocks tanked below their 52-week lows.

Stocks touching their year highs included - GHCL Ltd. (663.40, -0.81%) and Oil India Ltd. (300.20, 0.98%).

Stocks making new 52 weeks lows included - Grasim Industries Ltd. (1,326.50, 1.33%) and Gujarat State Petronet Ltd. (237.30, -1.45%).

7 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (140.50, 9.98%) and Trent Ltd. (1,113.30, 2.68%). 15 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.60, -3.37%) and Network 18 Media & Investments Ltd. (78.60, -2.90%).