Trendlyne Analysis

Indian indices closed in the red with the volatility index, India VIX, rising over 21%. The Nifty 50 lost over 200 points and closed below the 16,900 mark. European indices traded lower as Credit Suisse fell close to 8% in early trade after its CEO asked investors for 100 days to deliver a new turnaround strategy. Major Asian indices closed in the red, in line with the US indices, which closed lower on Friday. The S&P 500 extended its losses and posted its third-worst performance in the first nine months of a year since 1931. The Dow Jones and the tech-heavy NASDAQ 100 lost over 1.7% and closed in the red on Friday. Brent crude oil traded sharply higher as OPEC+ considered cutting output of up to 1 million barrels per day at a meeting scheduled on Wednesday.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Pharma bucked the market trend and closed higher than Friday’s level. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed 1.7% lower on Friday.

Nifty 50 closed at 16,876.00 (-218.4, -1.3%), BSE Sensex closed at 56,788.81 (-638.1, -1.1%) while the broader Nifty 500 closed at 14,632.15 (-197.2, -1.3%)

Market breadth is highly negative. Of the 1,961 stocks traded today, 616 were gainers and 1,292 were losers.

• Indraprastha Gas sees a short build-up in its October 27 future series as its open interest rises 12% with put to call ratio of 0.4.

• Cipla and Vedant Fashions hit their all-time highs of Rs 1,144.9 and Rs 1,475, respectively. Both stocks rise for two consecutive sessions.

• Kajaria Ceramics to make an investment of upto Rs 125 crore to set up a manufacturing facility in Nepal on a joint venture basis. The joint venture partner Ramesh Corp will invest Rs 125 crore in the facility.

• Hotel stocks like Indian Hotels Co, EIH, Chalet Hotels, Oriental Hotels, among others are up by more than 2% in trade today. The hotels industry is also rising in trade today.

• Eicher Motors is falling despite a 9.2% YoY rise in September's total wholesales to 6,631 units from its joint venture with Volvo, its exports fall 35.8% YoY. The company's subsidiary Royal Enfield's total wholesales rise 145% to 82,097 units.

• Triveni Turbine rises as Anand Rathi initiates coverage on the stock with a ‘Buy’ rating and a target price of Rs 285, according to reports. The brokerage believes the company’s strong order book, capacity expansion, and industry-leading market share will aid growth in the coming quarters.

• Eicher Motors, Delhivery, and Suzlon Energy trade below their third support or S3 level as market trades lower.

• FSN E-Commerce Ventures' (Nykaa) board recommends bonus issue of five fully paid-up equity shares for every one fully paid-up equity share held by the shareholders, subject to shareholders’ approval.

• Federal Bank's Q2FY23 total deposits rise by 10% YoY to Rs 1.9 lakh crore and gross advances rise by 19.4% YoY to Rs 1.6 lakh crore. The bank's CASA deposits rise 10.7% YoY to Rs 68,873 crore. This bank shows up on the screener that lists companies with increasing profits for four consecutive quarters.

• Pharmaceutical companies like Lupin, Zydus Lifesciences, Aurobindo Pharma, Glenmark Pharmaceuticals, and Granules India are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

• Lupin is rising as it receives establishment inspection report (EIR) from the US FDA for its manufacturing facility in Ankleshwar, Gujarat. An EIR is issued after an inspection is completed without the need of observations. Inspection of the facility was conducted from August 16-19.

• Coal India’s production for September rises 12.3% YoY to 45.7 MT. Its supply to the power sector increases by 7% YoY on rising demand from thermal power plants. Coal India’s production in H1FY23 rises 20% and its supply to power plants grows 17% compared to the same period last year.

• Tata Motors is falling despite a 44% YoY rise in total domestic wholesales to 80,633 units in September. The passenger vehicle wholesales increases 85% YoY but the commercial vehicle (CV) wholesales rise marginally by 4% YoY due to a 36% fall in CV exports.

• Axis Direct remains optimistic about the future growth prospects of JK Lakshmi Cements as it retains its ‘Buy’ rating on the company with a target price of Rs 680. This indicates an upside of 18%. The brokerage believes the company will benefit from the expected fall in commodity prices and a rise in demand given its production capacity plans, focus on cost optimisation, and higher realisation. It expects the company’s net profit to grow at a CAGR of 13% over FY22-24.

• India’s September Manufacturing Purchasing Manager’s Index (PMI) falls to 55.42 compared to 56.2 in August, as India’s factory growth declines to a three-month low.

  #JustIN | India September Manufacturing PMI At 55.1 Vs 56.2 pic.twitter.com/7fb5yuhLSM

  — CNBC-TV18 (@CNBCTV18Live) October 3, 2022

• Zydus Lifesciences is rising as it receives the final approval from the US Food & Drug Administration and a 180-day shared exclusivity for mirabegron extended-release tablets. The drug is used to treat symptoms of overactive bladder. It had annual sales of $ 2.42 billion (approximately Rs 19,792.1 crore) in the US for the 12 months ended August 2022.

• The Centre reduces windfall tax on locally produced crude oil to Rs 8,000 per tonne from Rs 10,500 per tonne earlier. It also removes the tax on the export of aviation turbine fuel and halves export duties on diesel to Rs 5 per litre.

  India cuts windfall tax on crude oil output, diesel exports https://t.co/sviKLfa2bU pic.twitter.com/kQh9lJHjV0

  — Reuters (@Reuters) October 1, 2022

• Telecommunication stocks like ITI, HFCL, Sterlite Technologies among others are rising in trade. The broader telecommunication equipment sector rises above 3%

• Maruti Suzuki is falling despite its domestic passenger vehicle wholesales surging by 135.1% YoY to 1.48 lakh units. The rise in wholesales comes on the back of new product launches, improvement in the supply of semiconductor chips, and the onset of the festive season.

• Konark Trust buys a 0.5% stake in Aptus Value Housing Finance India worth Rs 71.3 crore on Friday.

• Hero MotoCorp’s September wholesales fall 1.9% YoY to 5.1 lakh units as motorcycle sales fall 1.8%. However, the company expects demand to rise because of the ongoing festive season. It also expects normal monsoons to improve farm activity and sales in rural areas.

Riding High:

Largecap and midcap gainers today include Lupin Ltd. (722.10, 6.21%),  Zydus Lifesciences Ltd. (409.35, 5.80%) and Aurobindo Pharma Ltd. (535.20, 4.82%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (3,157.30, -8.64%), Adani Green Energy Ltd. (2,074.05, -8.26%) and Adani Total Gas Ltd. (3,100.80, -7.16%).

Volume Shockers

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

Top high volume gainers on BSE included Cochin Shipyard Ltd. (485.40, 10.07%), Triveni Turbine Ltd. (255.50, 8.77%) and VIP Industries Ltd. (714.65, 7.38%).

Top high volume loser on BSE was Eicher Motors Ltd. (3,463.35, -5.67%).

Avanti Feeds Ltd. (486.95, 3.97%) was trading at 9.3 times of weekly average. Ajanta Pharma Ltd. (1,286.90, 1.14%) and Finolex Industries Ltd. (137.80, 0.88%) were trading with volumes 9.2 and 7.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks hit their 52-week highs, while 3 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bharti Airtel Ltd. (803.35, 0.43%), Cipla Ltd. (1,130.75, 1.42%) and Indian Hotels Company Ltd. (336.85, 1.55%).

Stocks making new 52 weeks lows included - Oracle Financial Services Software Ltd. (2,921.75, -2.04%) and Birlasoft Ltd. (278.90, -1.26%).

26 stocks climbed above their 200 day SMA including FDC Ltd. (275.80, 4.51%) and Avanti Feeds Ltd. (486.95, 3.97%). 21 stocks slipped below their 200 SMA including Adani Green Energy Ltd. (2,074.05, -8.26%) and Mahanagar Gas Ltd. (802.10, -3.61%).