Trendlyne Marketwatch
Trendlyne Marketwatch
16 Sep 2022
Market closes lower, Harsha Engineers’ IPO gets bids for 74.6X of the total shares

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising over 19.5%. The benchmark index Nifty 50 lost over 340 points and closed below the 17,750 mark. European indices followed the global trend and traded lower than Thursday’s close. Major Asian indices closed lower, tracking the US indices, which closed in the red on Thursday. US stocks fell after a series of macroeconomic data failed to change the course of expected aggressive monetary tightening by the Federal Reserve. The tech-heavy index NASDAQ 100 closed 1.7% lower and the Dow Jones fell 0.6%. Crude oil prices fell and headed for a third straight weekly loss as low demand due to global economic slowdown outweighs demand concerns.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Energy closed lower than Thursday’s close. Nifty IT, which has lost over 4.5% in the last two days, closed deep in the red, taking cues from the NASDAQ 100, which closed lower on Thursday.

Nifty 50 closed at 17,550.10 (-327.3, -1.8%, BSE Sensex closed at 58,840.79 (-1093.2, -1.8%) while the broader Nifty 500 closed at 15,264.10 (-316.3, -2.0%)

Market breadth is overwhelmingly negative. Of the 1,916 stocks traded today, 296 were in the positive territory and 1,592 were negative.

  • Stocks like Ambuja Cements, Indian Hotels, Tata Investment Corp, and Varroc Engineering are in the overbought zone, according to the Money Flow Index or MFI.

  • Domestic air traffic grows 67.4% YoY in August, according to the data released by the Aviation regulator, DGCA. Domestic airlines flew more than 1.01 crore passengers in August.

  • Fairfax India Holding Corp plans to sell its majority stake in Fairchem Organics, according to reports. Fairfax India Holdings Corp, through FIH Mauritius Investments, owns a 52.83% stake in the company as of June.

  • Thermax and Indian Hotels hit their 52-week highs of Rs 2,607.1 and Rs 337.2, respectively. Thermax rises in today's session and Indian Hotels rises for five consecutive sessions.

  • Zydus Lifesciences’ arm Zydus Lifesciences (USA) receives tentative approval from the US Food and Drug Administration to market the sugammadex injection. This injection is used for reversing the neuromuscular blockade in adults undergoing surgery. The injection had annual sales worth $ 772 million in the United States for the 12 months ended July 2022.

  • Harsha Engineers’ Rs 755-crore IPO gets bids for 74.6X of the available 1.6 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 17.5X of the available 83.8 lakh shares on offer.

  • Special Consumer Services, Advertising & Media, and Oil Equipment & Services industries rise more than 8% over the past week.

  • Cipla is rising in trade as Jefferies maintains its ‘Buy’ rating on the company with a target price of Rs 1,223. The brokerage feels that the high-value products likely to be launched would aid strong sales for Cipla. It also revises its EPS targets for FY23 and FY24 by 3-4%.

  • Tata Metaliks rises as it inaugurates phase 1 of the expansion project of its ductile iron pipe plant at Kharagpur. This expansion project will take the ductile iron pipe capacity to 4 lakh tonne per annum in two phases. The total cost of the project is Rs 600 crore.

  • Auto companies like Hero MotoCorp, Mahindra & Mahindra, Tata Motors, and Escorts Kubota are falling in trade. The broader sectoral index Nifty Auto is also trading in red.

  • Defence and shipping stocks like Bharat Dynamics, Cochin Shipyard, Midhani, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers are up by more than 5% in trade today.

  • Adani Group overtakes Tata Group in terms of market capitalisation.

  • Axis Direct upgrades its rating on ACC to ‘Buy’ from ‘Hold’ with a target price of Rs 3,050. This implies an upside of 11%. The brokerage expects the company to regain its market share on the back of production capacity expansion, higher realisations, and its presence across India. It estimates the company’s net profit to grow at a CAGR of 48.1% over CY22-24.

  • Vedanta falls after issuing a clarification saying that the proposed business of manufacturing semiconductors will be undertaken by its holding company Volcan Investments and not Vedanta itself. This comes after news reports of Vedanta and Foxconn’s plan of investing $19.5 billion in Gujarat’s semiconductor business circulated in the market.

  • CSB Bank appoints Pralay Mondal as Managing Director and Chief Executive Officer. His appointment is effective from Thursday.

  • Ester Industries is falling as the company sells its engineering plastic business to Radici Plastics India. The sale takes place for a total cash consideration of Rs 289.3 crore. This will enable the management of Ester to focus on its core businesses of polyester films and specialty polymers.

  • Gray Birch Investment sells a 3.6% stake in PVR worth Rs 412.9 crore in a bulk deal. In another deal, Plenty Private Equity Fund I, and Plenty Private Equity FII I also sell 1.7% and 1.25% stake, respectively, in PVR.

  • Reliance Jio gains 29.5 lakh wireless subscribers in July on a net basis, while Bharti Airtel adds a net 5.1 lakh subscribers. Vodafone Idea loses 15.4 lakh subscribers.

  • Tata Power’s step-down subsidiary Tata Power Solar Systems receives the letter of award (LoA) of Rs 612 crore to construct a 100 MW ground-mounted solar project for SJVN. The project will be commissioned within 11 months from the date of receiving the LoA.

  • Adani Ports & Special Economic Zone’s subsidiary HDC Bulk Terminal sign a concession agreement to mechanize the Haldia Port. The estimated cost of the project is Rs 298 crore.

  • MTAR Technologies wins orders worth Rs 540 crore in the clean energy segment including projects from civil nuclear power. The company shows up on the screener of companies with increasing book value per share for the last two years.

Riding High:

Largecap and midcap gainers today include 3M India Ltd. (23,938.10, 4.65%), Star Health and Allied Insurance Company Ltd. (742.25, 4.18%) and IndusInd Bank Ltd. (1,227.35, 2.63%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (290.75, -7.46%), MRF Ltd. (86,112.85, -7.27%) and Astral Ltd. (2,338.80, -6.65%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included IIFL Wealth Management Ltd. (1,819.15, 6.59%), Sumitomo Chemical India Ltd. (524.05, 6.38%) and Mishra Dhatu Nigam Ltd. (215.65, 5.97%).

Top high volume losers on BSE were Elgi Equipments Ltd. (489.05, -6.82%), Mahindra Lifespace Developers Ltd. (460.75, -6.80%) and Bayer Cropscience Ltd. (4,821.95, -6.17%).

United Breweries Ltd. (1,635.60, -3.23%) was trading at 9.1 times of weekly average. Galaxy Surfactants Ltd. (3,270.20, -1.03%) and Aptus Value Housing Finance India Ltd. (328.20, 0.67%) were trading with volumes 9.0 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks hit their 52-week highs, while 8 stocks hit their 52-week lows.

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (938.20, -3.13%), Adani Transmission Ltd. (4,094.75, -0.26%) and Ambuja Cements Ltd. (516.70, -4.09%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (609.90, -2.11%) and Biocon Ltd. (291.25, -2.74%).

3 stocks climbed above their 200 day SMA including KIOCL Ltd. (212.70, 0.97%) and Aarti Drugs Ltd. (450.90, -1.32%). 44 stocks slipped below their 200 SMA including Housing and Urban Development Corporation Ltd. (36.90, -6.58%) and Bayer Cropscience Ltd. (4,821.95, -6.17%).

 
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