Trendlyne Analysis

Nifty 50 fell over 2.6% and closed deep in the red with the volatility index, India VIX, rising above 22%. European indices follow the global trend and trade sharply lower than Friday’s levels. Major Asian indices also closed lower, tracking the US indices which closed in the red on Friday. The US indices fell following a surprise rise in the US consumer price index or CPI to 8.6% in May, which may lead to an aggressive monetary policy from the US Federal Reserve. The tech-heavy NASDAQ 100 fell 3.6% while S&P 500 declined 2.9% on Friday. The shorter term five-year US treasury yields surged higher than the 30-year Treasury notes on fears of recession. Investors also continue to monitor the resumption of Covid-19 lockdowns in parts of China, which could slow down the global economy and disrupt supply chain. India’s index of industrial production or IIP rises to an eight-month high of 7.1% YoY in April led by higher electricity and mining output.

Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Media and Nifty Auto closed lower than Friday’s levels. Nifty IT closed in the red, following the NASDAQ 100, which fell 3.6% on Friday.

Nifty 50 closed at 15,774.40 (-427.4, -2.6%), BSE Sensex closed at 52,846.70 (-1,456.7, -2.7%) while the broader Nifty 500 closed at 13,416.90 (-364.9, -2.7%)

Market breadth is overwhelmingly negative. Of the 1,900 stocks traded today, 152 were in the positive territory and 1,726 were negative.

• Orient Electric, Gujarat Fluorochemicals, TTK Prestige, and Macrotech Developers are trading with higher volumes as compared to Friday.

• Pidilite Industries sees a long build-up in its Jun 30 futures series as its open interest rises 2.2% with put to call ratio at 0.64.

• Cement stocks like UltraTech Cement, Grasim Industries, Ambuja Cements, Shree Cements, ACC, JK Cement, The Ramco Cements, among others, are falling in trade today. Brokerage Nirmal Bang expects earnings to fall for cement companies because of prolonged cost inflation. Also, falling demand, low pricing power, and rising crude oil prices may dent growth for this sector.

• Stocks like Chambal Fertilisers & Chemicals, Birla Corporation, Vijaya Diagnostic Centre, Vardhman Textiles, and GMM Pfaudler are in the oversold zone according to the technical indicator relative strength index or RSI.

• Life Insurance Corp of India hits an all-time low of Rs 669.7, falls for 10 consecutive days. The company falls more than 23% since its listing.

• Hindustan Zinc touches a 52-week low of Rs 276.25 as the government plans to sell its stake in the company in tranches, the Secretary of Department of Investment and Public Asset Management said on Friday. Last month, the cabinet approved the sale of the government’s stake of 29.5% in the company to raise Rs 38,000 crore.

• Bajaj Finserv and NMDC touch their 52-week lows of Rs 11,482.5 and Rs 114.8 respectively. While Bajaj Finserv falls for three days, NMDC trades lower for four consecutive days.

• Future Retail rises as National Company Law Appellate Tribunal (NCLAT) upholds the Competition Commission of India’s decision to suspend the deal between Amazon and Future Coupons, a subsidiary of Future Retail. NCLAT also orders Amazon to pay a Rs 200-crore fine within 45 days for suppressing information during its 2019 deal with Future Coupons.

• The Nifty IT is falling and is on track for its worst day in over two weeks. All stocks part of the index are falling, with Mindtree and Coforge being losing the most during trade today.

• G R Infraprojects is trading with more than 28 times its weekly average trading volume. Rajesh Exports, RBL Bank, Relaxo Footwears, and Minda Industries are trading at more than four times their weekly average trading volumes.

• HDFC Securities maintains a ‘Reduce’ rating on Siemens and reduces the target price to Rs 2,071 from Rs 2,120. The brokerage cut its target price and continues to remain bearish on the company’s prospects due to supply chain issues impacting its order execution.

• Rajesh Exports is rising after a subsidiary of the company inked a pact with the Telangana government to set up a fabrication facility in the state with an investment of Rs 24,00 crore. The stock is at the highest level seen in three months.

• Adani Group is in talks with foreign banks to raise $4.5 billion through a mix of overseas loan instruments, according to reports. The proposed loan structure includes stock-backed bridge loans and a senior debt facility for 18 months. The proceeds of this fundraising will be utilized n the acquisition of Holcim’s stakes in the listed companies Ambuja Cements and ACC.

• Coal India floats two international competitive bidding e-tenders of three million tonnes each to import coal from abroad. The two medium-term tenders have an option of increasing the bid quantity by 100% to 12 million tonnes.

• Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Network 18 Media & Investments, and Saregama India, among others, are falling in trade today. The broader sectoral index Nifty Media is also trading in the red.

• RBL Bank is falling in trade after the RBI appoints R Subramaniakumar as the company’s new Managing Director (MD) and CEO. The appointment comes after the former MD and CEO unexpectedly stepped down.

• Foreign Portfolio Investors (FPI) pull out Rs 14,000 crore from equities this month because of economic slowdown, high inflation in the US, and supply constraints. Net outflow by FPIs reaches Rs 1.8 lakh crore in 2022.

• Pharma stocks like Sun Pharmaceutical Industries, Divi’s Laboratories, Dr. Reddy’s Laboratories, Aurobindo Pharma, Abbott India, among others, are falling in trade as the pharma sector continues to underperform due to rising costs and prevailing pricing pressures in the US generic market.

  Tepid growth of pharma companies in May indicates that the pressure will continue for the near term.
  
  (By @UjjvalJauhari)https://t.co/vX7S1xmnzo

  — Mint (@livemint) June 13, 2022

• Rupee falls to a new all-time low of Rs 78.14 since breaching the record low of Rs. 77.80 and touching new lows over the past few weeks.

• Public sector banking stocks like State Bank of India, Canara Bank, Punjab National Bank, and Indian Overseas Bank, among others, are falling in trade today. The broader sectoral index Nifty PSU Bank is also trading in the red.

• CDC Group PLC, a British investment firm, sells a 4.2% stake (1.6 crore shares) in IIFL Finance, worth Rs 526.9 crore, through bulk and block deals. Max Life Insurance and Nomura India Investment Fund pick up 1.8% stake through a bulk deal in IIFL Finance. Superstar Sunil Singhania’s Abakkus Growth Fund-2 also purchases 3.1 lakh shares (0.08% stake), Nomura Funds Ireland PLC buys 6.5 lakh shares (0.17% stake), Employee Provident Fund purchases 5 lakh shares (0.13% stake), L&T Mutual Fund purchases 4.8 lakh shares (0.13% stake), among others.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,798.70, 2.34%), Honeywell Automation India Ltd. (33,450.05, 2.30%) and Marico Ltd. (500.15, 1.54%).

Downers:

Largecap and midcap losers today include Gujarat Gas Ltd. (447.65, -7.40%), Bajaj Finserv Ltd. (11,386.05, -7.08%) and JSW Energy Ltd. (230.75, -6.86%).

Volume Rockets

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

Top high volume gainers on BSE included Rajesh Exports Ltd. (548.35, 4.91%), Minda Industries Ltd. (895.70, 3.47%) and Sheela Foam Ltd. (2,803.75, 0.10%).

Top high volume losers on BSE were RBL Bank Ltd. (87.85, -22.67%), Punjab & Sind Bank (14.30, -4.35%) and Zee Entertainment Enterprises Ltd. (226.70, -4.00%).

Gillette India Ltd. (4,948.25, -0.12%) was trading at 15.3 times of weekly average. Relaxo Footwears Ltd. (974.90, -1.01%) and Cholamandalam Financial Holdings Ltd. (615.95, -1.29%) were trading with volumes 5.0 and 4.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock overperformed with 52-week highs, while 63 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - Mahindra Lifespace Developers Ltd. (403.15, -1.71%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,635.90, -0.73%) and Bajaj Finance Ltd. (5,358.25, -5.46%).

27 stocks slipped below their 200 SMA including Sunteck Realty Ltd. (430.80, -7.97%) and Cholamandalam Investment & Finance Company Ltd. (609.00, -6.36%).