Trendlyne Marketwatch    
29 Jun 2022
Market closes lower, Tata Motors partners with Japanese chipmaker Renesas Electronics

Trendlyne Analysis

Nifty 50 closed in the red with the volatility index, Nifty VIX rising above 22%. Indian indices snapped their four-day winning streak amid weak global cues. European indices followed the global trend and traded lower than Tuesday’s levels. Major Asian indices closed lower, tracking the US indices, which fell sharply on Tuesday. US stocks declined after the US consumer confidence index fell for second straight month and to the lowest level since February 2021. The tech-heavy NASDAQ 100 fell over 3% while the S&P 500 closed 2% lower. Crude oil eased after rising for three consecutive days. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth remain the key levers affecting the crude oil price.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Bank closed lower than Tuesday’s levels. Nifty Media, which opened in the red, closed flat. Nifty IT closed in the red, tracking the NASDAQ 100, which fell over 3% on Tuesday.

Nifty 50 closed at 15,799.10 (-51.1, -0.3%), BSE Sensex closed at 53,026.97 (-150.5, -0.3%) while the broader Nifty 500 closed at 13,417.85 (-46.4, -0.3%)

Market breadth is in the red. Of the 1,872 stocks traded today, 746 were on the uptrend, and 1,070 went down.

  • Poly Medicure, Sundaram Finance, NHPC, and TCNS Clothing Co. are trading with higher volumes as compared to Tuesday.

  • Bharti Airtel sees a long build-up in its Jun 30 future series as its open interest rises 4.7% with put to call ratio of 0.68.

  • Ultratech Cement rises in a weak market after Nirmal Bang maintains a ‘Buy’ on the stock with no change in the target price of Rs 6,772. However, the brokerage expects the company's earnings in H1FY22 to face pressure because of high pet coke prices and weak realizations.

  • GAIL (India) rises as the public enterprise selection board picks Sandeep Kumar Gupta as the new Chairman of the company. Sandeep Kumar Gupta is currently the Director of Finance at Indian Oil Corp and will replace Manoj Jain, Chairman of GAIL who is scheduled to retire on August 31.

  • NMDC falls after shareholders and creditors approve the demerger of Nagarnar Steel Plant as said by the company’s CMD, Sumit Deb. NMDC is building a 3 million tonne per annum steel plant at Nagarnar at a cost of Rs 23,140 crore.

  • Energy stocks like Reliance Industries, Adani Transmission, Adani Green Energy, Oil and Natural Gas Corp, and Power Grid Corp of India, among others, are rising in trade. The broader sectoral index Nifty Energy is also trading in the green.

  • Bernstein maintains a 'Buy' call on Reliance Industries and raises target price to Rs 3,360 from Rs 2,830, according to reports. The brokerage says that the tariff hikes may drive strong Jio results and that e-commerce acceleration across categories will lift retail segment.

  • Orient Bell rises in intra-day trading after Crisil upgrades its rating on the bank facilities for the company to Crisil A/Stable/Crisil A1 from Crisil A-/Stable/Crisil A2+. The rating agency believes the company has a comfortable financial risk profile. It also expects revenue to grow by 10-12% CAGR over the medium term given the demand from the real estate sector remains healthy.

  • J B Chemicals & Pharmaceuticals is trading with more than seven times its weekly average trading volume. MTAR Technologies, Jamna Auto Industries, Alembic Pharmaceuticals, and Au Small Finance Bank are trading at more than four times their weekly average trading volumes.

  • SIS's board approves buyback of up to Rs 80 crore of fully paid-up equity shares of the company having a face value of Rs 5 per share. 

  • Tata Motors is rising in trade after it announces a strategic partnership with the Japanese chipmaker Renesas Electronics Corp. The companies will collaborate to develop next-generation automotive electronics, to accelerate the growth of electric and connected vehicles.

  • The Maharashtra government signs a memorandum of understanding with Adani Green Energy to generate 11,000 MW of green power over the next five years, according to reports. This is expected to entail an investment of Rs 60,000 crore over the next five years.

  • IDBI Capital maintains its ‘Buy’ rating on Mahindra & Mahindra with a target price of Rs 1,643, indicating an upside of 52%. The brokerage believes the newly launched ‘Scorpio N’ will boost volume growth for the company going forward. It expects the company’s sales volume growth to continue on competitive pricing and new product launches. The brokerage estimates the company’s revenue to grow at a 22.3% CAGR over FY22-24

  • AU Small Finance Bank falls more than 5% in trade today after Credit Suisse initiates coverage on the stock with an ‘underperform’ rating, according to reports. The brokerage set a target price of Rs 510 for the stock. It expects slippages to remain high from the restructured loan book and credit costs to rise in the SME segment.

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

  • Biocon hits a 52-week low of Rs 309 after the Central Bureau of Investigation (CBI) challenged the local court to gain custody of the people involved in the Central Drugs Standard Control Organisation bribery case. CBI arrested L Praveen Kumar of Biocon Biologics, an Associate Vice President, and joint drug controller Eswara Reddy, for demanding a bribe of Rs 9 lakh to waive off Phase-3 trial of ‘Insulin Apart Injection’.

  • Godawari Power & Ispat acquires a 78.96% stake in Alok Ferro Alloys for a total cash consideration of Rs 127 crore. The company acquires 37.8 lakh shares of Alok Ferro Alloys at a fair market value of Rs 336 per share.

  • Indian rupee falls to a new record low by 11 paise (0.14%) to Rs 78.88 against the dollar in early trade today.

  • Jammu and Kashmir Bank is rising after approving the raising of equity share capital of Rs 500 crore in one or more tranches. The plans to raise capital by way of rights issue or preferential allotment or follow-on public offer or any other approved method.

  • Route Mobile’s board approves a buyback of 7.05 lakh equity shares worth Rs 120 crore through the open market route. The buyback comprises 1.12% of the total paid-up share capital at a price of Rs 1,700 per share. The promoters and promoter group entities will not participate in the buyback.

  • Reliance Industries’ subsidiary Reliance Jio Infocomm’s board approves the appointment of Akash Ambani as Chairman as Mukesh Ambani steps down, according to reports. Akash Ambani was the Chief Strategy Officer at Reliance Jio before taking over as Chairman.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (2,347.90, 8.53%), Bosch Ltd. (15,523.00, 5.91%) and Oil India Ltd. (261.60, 4.79%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (57.30, -4.98%), NHPC Ltd. (30.95, -4.77%) and Max Financial Services Ltd. (777.85, -4.62%).

Movers and Shakers

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

Top high volume gainers on BSE included Aavas Financiers Ltd. (2,077.90, 7.34%), Bosch Ltd. (15,523.00, 5.91%) and Abbott India Ltd. (18,992.80, 4.72%).

Top high volume losers on BSE were Johnson Controls-Hitachi Air Conditioning India Ltd. (1,506.10, -4.68%), Au Small Finance Bank Ltd. (596.05, -4.27%) and Indian Energy Exchange Ltd. (161.30, -3.50%).

ZF Commercial Vehicle Control Systems India Ltd. (7,434.65, 1.25%) was trading at 17.4 times of weekly average. J B Chemicals & Pharmaceuticals Ltd. (1,556.45, -0.77%) and Alembic Pharmaceuticals Ltd. (739.05, 0.12%) were trading with volumes 8.2 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks made 52-week highs, while 9 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Dart Express Ltd. (7,802.40, 3.15%), Phoenix Mills Ltd. (1,209.35, 1.68%) and TVS Motor Company Ltd. (833.35, 1.60%).

Stocks making new 52 weeks lows included - Bajaj Finserv Ltd. (11,109.75, -2.24%) and Biocon Ltd. (310.20, -1.82%).

7 stocks climbed above their 200 day SMA including Abbott India Ltd. (18,992.80, 4.72%) and Trent Ltd. (1,109.25, 3.84%). 8 stocks slipped below their 200 SMA including Au Small Finance Bank Ltd. (596.05, -4.27%) and SKF India Ltd. (3,473.95, -2.05%).

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