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Trendlyne Marketwatch
23 Sep 2022
Market closes lower, NBFC stocks are falling in trade

Trendlyne Analysis

Nifty 50 lost over 300 points and closed in the red, on a volatile day of trade. The Indian volatility index, India VIX, rose above 20.5%. European stocks traded lower as investors digest a series of interest rate hikes by central banks. Bank of England followed the US Federal Reserve and raised its key interest rate by 50 bps to 2.25% to combat elevated inflation levels. Major Asian indices closed lower, tracking the US indices, which closed in the red for a third straight session on Thursday. The tech-heavy NASDAQ 100 fell 1.2% while the Dow Jones closed 0.4% lower. Crude oil traded lower and is set to post losses for a fourth straight week amid demand concerns due to slow global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media closed lower than Thursday’s close. Nifty IT closed lower, taking cues from the NASDAQ 100, which closed in the red on Thursday.

Nifty 50 closed at 17,332.25 (-297.6, -1.7%), BSE Sensex closed at 58,098.92 (-1,020.8, -1.7%) while the broader Nifty 500 closed at 15,056.45 (-278.9, -1.8%)

Market breadth is sharply down. Of the 1,921 stocks traded today, 289 were on the uptrend, and 1,594 went down.

  • Stocks like Tata Steel Long Products, Cochin Shipyard, Solar Industries India, and RHI Magnesita India are in the overbought zone, according to the Money Flow Index or MFI.

  • BSE Realty Index, BSE Power, and S&P BSE Utilities fall more than 6.5% in the past week.

  • Reliance Industries' arm Reliance New Energy inks an agreement to invest $12 million in Caelux Corp, a perovskite-based solar technology developer, for a 20% stake in the company.

  • Divi’s Laboratories and Vijaya Diagnostic Centre trade above their third resistance or R3 level despite markets trading lower.

  • Shriram Properties Managing Director Murali Malayappan says the company will launch two projects in Q2FY23 and six projects in Q3FY23. The company intends to hike prices by 5-6% in the coming months.

  • Exide Industries is planning to invest Rs 6,000 crore, according to reports. The investment will take place for the next 8-10 years to set up a 12 GWh lithium-ion cell manufacturing plant in Karnataka.

  • Media stocks like Dish TV India, Zee Entertainment Enterprises, Sun TV Network, Saregama India, and TV18 Broadcast are falling in trade. The broader sectoral index Nifty Media is also trading in the red.

  • Patanjali Foods expects Indian palm oil imports to increase 23% in FY23 to 9.5 million tonnes because of rising consumption and prices, according to reports. This will cause refiners to increase their purchase of palm oil, says CEO Sanjeev Asthana. He also implies that prices are under pressure because of stocks.

  • Sharekhan continues to have a positive outlook on State Bank of India as it keeps its ‘Buy’ rating on the PSU bank with a target price of Rs 680. This indicates an upside of 19.3%. The brokerage believes the bank’s healthy loan growth, lower credit cost, and adequate capital levels will drive profitability in the coming quarters. It expects the company’s net profit to grow at a CAGR of 22.9% over FY22-24.

  • Citi downgrades its rating on Mphasis to ‘Sell’ with a target price of Rs 1,900, a downside of 7%. The brokerage says that the company may be impacted by changing macro conditions. It also expects the slowness of the digital risk business to continue.

  • NBFC stocks like Bajaj Finance, SBI Cards & Payments, Cholamandalam Investment & Finance, and Shriram Transport Finance fall in trade. The industry is trading down by more than 2% today.

  • Sterling and Wilson Renewable Energy is rising as its US subsidiary signs a memorandum of understanding (MoU) with the government of Federal Republic of Nigeria. The MoU is to deliver the development, design, construction and commissioning of solar power plants. The plants will be installed at five locations in Nigeria with a total capacity of 961 MW along with battery energy storage systems with a capacity of 455 MWh.

  • Century Textiles and Industries rises as its wholly-owned subsidiary Birla Estates acquires a 10-acre land parcel in South Bengaluru. The project has a development potential of 10 lakh square feet and a revenue potential of Rs 900 crore.

  • Mahindra & Mahindra Financial Services falls over 10% in trade today, after the RBI orders the company to stop recovery or repossession activity through outsourcing arrangements, until further orders.

  • Fidelity Investment sells a 1.42% stake (14.5 lakh shares) in Vijaya Diagnostic Centre for Rs 58 crore through a bulk deal.

  • Bank stocks like HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank, Axis Bank, are falling in trade. All constituents of the broader Nifty Bank are also trading in the red.

  • Tata Metaliks is falling as Managing Director Sandeep Kumar steps down from the position to take up an opportunity within the Tata Steel Group. His resignation is effective from October 31, 2022.

  • Hero MotoCorp increases ex-showroom prices of its motorcycles and scooters up to Rs 1,000 with effect from Thursday. The company is revising its prices to partially offset the impact of inflation.

  • The Indian rupee touches a new record low of 81.2, against the US dollar in early trade today.

  • Promoter Sundaram Clayton buys TVS Motor's 50.05% stake in step-down arm Sundaram Holding USA for Rs 317 crore from Sundaram Auto Components (TVS Motor's wholly-owned subsidiary).

  • Tata Steel’s board of directors approve the merger of seven of its subsidiaries with the company. The seven companies are Tata Steel Long Products, Tinplate Co of India, Tata Metaliks, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Co. The company shows up on a screener which lists stocks with improving cash flow from core business operations over the past two years.

Riding High:

Largecap and midcap gainers today include Dr. Lal Pathlabs Ltd. (2,514.90, 2.83%), Divi's Laboratories Ltd. (3,642.60, 1.75%) and Endurance Technologies Ltd. (1,453.85, 1.56%).

Downers:

Largecap and midcap losers today include Mahindra & Mahindra Financial Services Ltd. (194.40, -13.10%), Power Grid Corporation of India Ltd. (202.55, -7.97%) and Cholamandalam Investment & Finance Company Ltd. (738.50, -5.82%).

BSE 500: highs, lows and moving averages

6 stocks hit their 52-week highs, while 11 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Escorts Kubota Ltd. (2,076.65, -2.36%), ITC Ltd. (346.40, 0.39%) and Lakshmi Machine Works Ltd. (12,771.85, -3.31%).

Stocks making new 52 weeks lows included - Biocon Ltd. (283.80, -1.97%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,443.90, -0.97%).

6 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (1,179.75, 3.51%) and Sterling and Wilson Renewable Energy Ltd. (337.10, 2.42%). 27 stocks slipped below their 200 SMA including Power Grid Corporation of India Ltd. (202.55, -7.97%) and Advanced Enzyme Technologies Ltd. (290.90, -5.72%).

 
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