Trendlyne Marketwatch
Trendlyne Marketwatch
14 Sep 2022
Market closes lower, Harsha Engineers’ IPO gets bids for 2.9X of the total shares on offer

Trendlyne Analysis

Nifty 50 recovered from the day’s low but closed in the red, with the volatility index, India VIX, rising over 18%. India’s Wholesale Price Index (WPI) inflation fell for the third consecutive month in August to 12.4% compared to 13.9% in July. European indices took cues from the global markets and traded lower than Tuesday’s close. Asian indices closed lower, following the US indices, which closed deep in the red on Tuesday. US indices closed sharply lower, snapping their four-day winning streak, and posted their biggest one-day percentage loss since June 2020 after US CPI rose 8.3% in August, topping expectations. Analysts now expect another 75 bps federal funds rate hike at the next monetary policy scheduled later this month. The tech-heavy index, NASDAQ 100 plunged 5.5%, while the Dow Jones closed 3.9% lower. Brent crude oil futures traded flat after falling over 1% on a volatile day of trade on Tuesday.

Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty Auto closed lower than Tuesday’s levels. Nifty IT closed deep in the red, taking cues from the NASDAQ 100, which fell over 5% on Tuesday.

Nifty 50 closed at 18,000.65 (-69.4, -0.4%), BSE Sensex closed at 60,346.97 (-224.1, -0.4%) while the broader Nifty 500 closed at 15,626.80 (-43.1, -0.3%)

Market breadth is in the red. Of the 1,925 stocks traded today, 794 were gainers and 1,088 were losers.

  • India Cements sees a long build-up in its September 29 future series as its open interest rises 10.1% with put to call ratio of 0.77.

  • Sanofi India and Alembic Pharmaceuticals hit their 52-week lows of Rs 6,050 and Rs 625, respectively. Both stocks fall for three consecutive sessions.

  • State Bank of India (SBI) crosses the market cap of 5 lakh crore and hits an all-time high of Rs 574.8. Analysts suggest holding the stock as they see a ‘flag pattern’ breakout, according to reports. Flag pattern indicates that the stock will continue to remain in its previous trend. The stock also shows up on a screener with companies giving consistent returns over the past five years.

  • ICICI Securities maintains 'Buy' rating on Apollo Tyres with a target price of Rs 329, indicating an upside of 17.5%. The brokerage believes that disciplined pricing strategy, recovering demand and controlled capex to bode well for the company to generate a steady free cash flow. It expects the company's net profit to grow at a CAGR of 30.94% over FY22-24.

  • Harsha Engineers’ Rs 755-crore IPO gets bids for 2.9X of the available 1.6 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 3.2X of the available 83.8 lakh shares on offer. The IPO consists of a fresh issue of Rs 455 crore and an offer for sale for Rs 300 crore.

  • PSU Banks like Bank of Maharashtra, Central Bank of India, Canara Bank, State Bank of India, and Bank of Baroda are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Goldman Sachs downgrades its ratings on Infosys, Tata Consultancy Services and Tech Mahindra   to ‘Sell’. The brokerage cuts the EPS forecasts for the companies for FY23-26E by 4-6%. However, it upgrades its rating on Wipro to ‘Buy’.

  • Commodity Printing/Stationery, Surface Transportation, and Food & Drugs Retailing industries traded below 8% in the past month

  • Cement stocks like Ambuja Cements, Shree Cements, ACC, Dalmia Bharat, among others, are rising in trade today.

  • Bajaj Holding Investments is rising as its board of directors approve an interim dividend of Rs 110 per equity share for FY23. Record date to determine eligible members is fixed for September 23.

  • India’s Wholesale Price Index (WPI) inflation falls for the third consecutive month in August to 12.41% compared to 13.93% in July.

  • Axis Direct continues to have a positive outlook for Sundaram Finance as it keeps its ‘Buy’ rating with a target price of Rs 2,490. This indicates an upside of 11%. The brokerage believes the company’s rising disbursements, improving asset quality, and well-diversified loan mix will aid in profit growth. It expects the company’s net profit to grow at a CAGR of 14.2% over FY22-24.

  • Tata Power's arm Tata Power Solar Systems wins order worth Rs 596 crore to set up a 125 MWp floating solar project for NHDC. NHDC is a joint venture between NHPC and the Government of Madhya Pradesh.

  • Fertiliser stocks like Coromandel International, Chambal Fertilisers & Chemicals, and Gujarat State Fertilizer & Chemicals, among others are falling in trade. The stocks fall as the Centre's Minister of State for Chemicals and Fertilizers Mansukh Mandaviya says retail prices of di-ammonium phosphate and other non-urea fertilisers will not be allowed to rise.

  • US CPI inflation falls slightly to 8.3% in August, compared to 8.5% in July. Core CPI rose 6.3% in August. US Indices closed lower amid concerns that the US Federal Reserve would continue to raise interest rates. It is expected that the rate hike could be by 75 bps.

  • JSW Steel inks an agreement with Germany-based engineering company SMS group for carbon reduction projects. JSW Steel to invest Rs 10,000 crore to reduce carbon emissions. The collaboration will enable the companies to explore opportunities to reduce carbon emissions and produce green steel.

  • IT stocks like Infosys, Coforge, Tech Mahindra, Larsen & Toubro Infotech, and Tata Consultancy Services are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • Harsha Engineers International raises Rs 225.74 crore from anchor investors ahead of its IPO, which opens for subscription today. The investors include American Funds Insurance, Goldman Sachs, Pinebridge Global Funds, Abu Dhabi Investment Authority, Whiteoak Capital, and SBI Mutual Fund.

  • KEC International secures new orders worth Rs 1,108 crore in business segments like railways and oil and gas pipelines. The order also includes a transmission and distribution project secured in India, the Middle East and Africa.

Riding High:

Largecap and midcap gainers today include Vedanta Ltd. (305.60, 10.11%), Bajaj Holdings & Investment Ltd. (7,144.35, 7.91%) and Ambuja Cements Ltd. (524.60, 7.83%).

Downers:

Largecap and midcap losers today include Infosys Ltd. (1,475.40, -4.50%), L&T Technology Services Ltd. (3,676.95, -4.26%) and Coforge Ltd. (3,471.00, -3.76%).

Movers and Shakers

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

Top high volume gainers on BSE included Tata Investment Corporation Ltd. (2,621.30, 20.00%), Mahindra Logistics Ltd. (546.25, 11.08%) and Vedanta Ltd. (305.60, 10.11%).

Top high volume losers on BSE were Infosys Ltd. (1,475.40, -4.50%), Macrotech Developers Ltd. (1,061.40, -3.65%) and Tata Consultancy Services Ltd. (3,120.40, -3.37%).

Fortis Healthcare Ltd. (307.70, 5.34%) was trading at 16.0 times of weekly average. Indigo Paints Ltd. (1,563.95, 1.05%) and Aegis Logistics Ltd. (295.65, 8.75%) were trading with volumes 11.3 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks made 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - ACC Ltd. (2,743.20, 6.62%), Adani Ports & Special Economic Zone Ltd. (947.85, -0.10%) and Allcargo Logistics Ltd. (438.00, 5.54%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (626.85, -0.62%) and Sanofi India Ltd. (6,067.90, -0.16%).

9 stocks climbed above their 200 day SMA including Mahindra Logistics Ltd. (546.25, 11.08%) and Equitas Small Finance Bank Ltd. (51.05, 5.48%). 19 stocks slipped below their 200 SMA including TCNS Clothing Co. Ltd. (659.65, -3.13%) and Polyplex Corporation Ltd. (2,126.80, -2.69%).

 
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