Trendlyne Analysis

Nifty 50 rose over 250 points and closed above the 17,000 mark, with the volatility index, India VIX, falling significantly. Reserve Bank of India's Monetary Policy Committee raised the RBI's repo rate by an expected 50 bps to 5.9%. The RBI also lowered the GDP growth forecast for FY23 to 7% from 7.2%. India's current account deficit widens to $23.9 billion or 2.8% of the country's GDP in the April-June period. European indices traded higher as UK’s gross domestic product or GDP rises 0.2% QoQ in Q2FY23, topping analysts’ expectations.

However, most major Asian indices closed in the red, in line with the US stocks which closed sharply lower on Thursday. US indices fell to their lowest level since November 2020 as investors remain wary of slowing economic growth amid the Federal Reserve raising interest rates to combat record-high inflation levels. The tech-heavy NASDAQ 100 fell 2.9% while the S&P 500 closed 2.1% lower. Crude oil prices head for their first weekly gain in five weeks amid supply concerns as traders look ahead to the outcome of the OPEC+ meeting next week.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty Media closed higher than Thursday’s level. Nifty IT closed in the red, despite the NASDAQ 100 falling close to 3% on Thursday.

Nifty 50 closed at 17,107.20 (289.1, 1.7%), BSE Sensex closed at 57,426.92 (1,017.0, 1.8%) while the broader Nifty 500 closed at 14,837.45 (235.0, 1.6%)

Market breadth is surging up. Of the 1,927 stocks traded today, 1,349 were on the uptick, and 518 were down.

• Rites and Cochin Shipyard are trading in the overbought zone, according to the Money Flow Index or MFI.

• Bharti Airtel and Gujarat Fluorochemicals hit their 52-week highs of Rs 809 and Rs 4,024, respectively. Both the stocks rise for four consecutive sessions.

• City gas distributor stocks like Adani Total Gas, Gujarat Gas, Indraprastha Gas, and Mahanagar Gas fall in trade today.

• One97 Communications (Paytm) rises as JP Morgan reiterates its ‘Overweight’ rating on the company, with a target price of Rs 1,000, an implied return of 58.19%. The brokerage says that the company’s model is undergoing a shift and the company may turn profitable by September 2023.

• Nestle India, Mphasis, Dabur India, and Dr. Reddy’s Laboratories’ weekly average delivery volumes rise, ahead of their Q2FY23 results.

• Schneider Electric is rising as the company plans to invest Rs 300 crore for the development of a new smart factory in Telangana, according to reports. CEO of Schneider Electric, Anil Chaudhry says, they aim to make Hyderabad a leading manufacturing hub the country.

• RBI is focused on price stability, says RBI’s Deputy Governor Micheal Patra. He expects the current account deficit to slightly widen during H1FY23 and to narrow in H2FY23.

  #RBIPolicy | Soft-landing is for advanced economies, for #India- it is take off. Expect #CAD to be under 3% of #GDP overall. See a quickening of #growth momentum in July-September, says Michael Patra, @RBI Deputy Governor pic.twitter.com/s5pxRbod4b

  — CNBC-TV18 (@CNBCTV18Live) September 30, 2022

• HDFC Bank, Carborundum Universal and Bharti Airtel trade above their third resistance or R3 level as market trades higher.

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

• Axis Direct continues to keep its positive outlook on ITC’s prospects as it retains its ‘Buy’ rating on the company with a target price of Rs 380. This implies an upside of 17%. The brokerage believes the firm is well-placed to capitalise on the stable tax regime. It expects revenue growth to be led by the recovery in its cigarette and hotels segments, scaling up of its FMCG business, and focus on increasing exports. The brokerage estimates the firm’s net profit to grow at a CAGR of 13.5% over FY22-25.

• Public sector banks like Canara Bank, Punjab National Bank, Bank of Baroda, and Union Bank of India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in green.

• Motherson Sumi Wiring's board of directors approve a bonus issue of shares in the ratio of two shares for every five shares held in the company.

• Marine Port & Services, Non-alcoholic beverages, and Electric Utilities industries fall more than 10% in trade over the past week.

• Punjab National Bank is rising as it plans to sell its entire stake of 10.01% (3.25 crore shares) in Asset Reconstruction Co (India) in an all-cash consideration deal. Post the divestment the company will cease to be a shareholder of Asset Reconstruction Co (India). The stake sale is set to be completed by December 31.

• Macrotech Developers' board of directors to meet today to approve the proposal of repaying Rs 125 crore in borrowings from Yes Bank, according to reports. The repayment comes five months ahead of schedule. The company features in the screener of companies with reducing debt.

• India’s current account deficit widens to 2.8% of the GDP and stands at $23.9 billion during the April-June quarter due to rising global commodity prices and capital outflows.

  India's current account deficit widens in April-June; seen worsening https://t.co/fOqVK8Bib9 pic.twitter.com/94PeFbnKN8

  — Reuters Asia (@ReutersAsia) September 30, 2022

• Rail Vikas Nigam rises as it wins a contract worth Rs 408 crore from National Highways Authority of India. The order pertains to the construction of a four-lane highway in Andhra Pradesh.

• The Reserve Bank of India's Monetary Policy Committee raises the RBI's repo rate by 50 bps to 5.9%

  #BREAKING | RBI MPC raises repo rate by 50 bps to 5.9%@RBI @DasShaktikanta #RBI pic.twitter.com/xDIC1sPkXA

  — ET NOW (@ETNOWlive) September 30, 2022

• Bajaj Electricals is rising as it bags an order worth Rs 332.6 crore from the Power Grid Corp of India. The order is for supply and services of under the transmission line tower package TW04 associated with transmission network expansion in Gujarat.

• Vodafone Idea rises after it clarifies that it is in talks with Indus Towers to discuss payment terms to clear its pending dues to the tower company. According to reports, the company owes Indus Rs 6,800 crore.

• Hero MotoCorp to collaborate with Zero Motorcycles – a California-based manufacturer to develop electric motorcycles. Hero’s board approved an investment of $60 million in Zero Motorcycles for the same.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (2,260.80, 12.81%), Indus Towers Ltd. (197.45, 6.21%) and Tube Investments of India Ltd. (2,744.35, 6.21%).

Downers:

Largecap and midcap losers today include Indraprastha Gas Ltd. (396.80, -5.51%), Adani Transmission Ltd. (3,289.80, -3.42%) and Dr. Lal Pathlabs Ltd. (2,518.75, -2.80%).

Movers and Shakers

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

Top high volume gainers on BSE included Adani Green Energy Ltd. (2,260.80, 12.81%), Granules India Ltd. (345.35, 6.49%) and Bajaj Electricals Ltd. (1,202.20, 5.79%).

Caplin Point Laboratories Ltd. (744.40, 2.12%) was trading at 5.3 times of weekly average. Dilip Buildcon Ltd. (220.80, 3.93%) and Aptus Value Housing Finance India Ltd. (307.30, 1.20%) were trading with volumes 4.0 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 8 stocks hit their 52-week lows.

Stocks touching their year highs included - Bharti Airtel Ltd. (799.90, 4.61%), Cipla Ltd. (1,114.95, -0.08%) and Phoenix Mills Ltd. (1,399.10, 5.49%).

Stocks making new 52 weeks lows included - Sanofi India Ltd. (5,780.80, -0.17%) and Zensar Technologies Ltd. (211.65, 0.79%).

41 stocks climbed above their 200 day SMA including Adani Green Energy Ltd. (2,260.80, 12.81%) and Canara Bank (228.75, 6.20%). 9 stocks slipped below their 200 SMA including Balaji Amines Ltd. (3,167.50, -1.45%) and ITI Ltd. (105.45, -1.31%).