Trendlyne Analysis
Nifty 50 recovered from its day’s low and closed flat, with the volatility index, India VIX, falling below 19%. European indices followed the global trend and traded lower than Thursday’s close. World Bank cuts India’s FY23 GDP forecast by 100 basis points to 6.5%. Indian rupee touched an all-time low of 82.2 against the US dollar amid rate hike concerns on Thursday.
Major Asian indices closed in the red, in line with the US indices, which closed lower on Thursday. US stocks fell on Thursday ahead of a key US jobs data release scheduled later today. The tech-heavy NASDAQ 100 fell 0.8% while the Dow Jones closed 1.2% lower on a volatile day of trade. Brent crude oil futures traded flat after rising around 8% in the last four trading sessions amid supply concerns.
Nifty Smallcap 100 closed in the green, despite the benchmark index closing lower. Nifty Bank and Nifty FMCG traded 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 17,316.15 (-15.7, -0.1%), BSE Sensex closed at 58,191.29 (-30.8, -0.1%) while the broader Nifty 500 closed at 15,037.20 (-15.9, -0.1%)
Market breadth is in the green. Of the 1,925 stocks traded today, 1,027 were on the uptick, and 832 were down.
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Stocks like Rites, Cochin Shipyard, Mazagon Dock Shipbuilders, and Zydus Lifesciences are in the overbought zone, according to the Money Flow Index or MFI.
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Restaurant stocks like Jubilant Foodworks, Sapphire Foods India, Restaurant Brands Asia, Barbeque-Nation Hospitality and Coffee Day Enterprises fall in trade. The restaurant industry also trades in the red today.
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Emkay Global reiterates its 'Buy' rating on IndusInd Bank with a target price of Rs 1,275. This indicates an upside of 10.3%. The brokerage believes the company's non-performing assets (NPA) will fall from the levels Q1FY23. It estimates the company's interest revenue to grow at a CAGR of 11.8% over FY22-25.
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Tata Steel’s Q2FY23 domestic production rises 1.7% YoY but its Europe business segment’s production falls 6.3% YoY. The company’s domestic sales volume rises 7.2% YoY whereas its Europe business segment’s sales volume declines 12.1% YoY.
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Electronics Mart’s Rs 500-crore IPO gets bids for 71.9X of the available 6.25 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 19.7X of the available 3.1 crore shares on offer.
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EID Parry (India) and Praj Industries hit their all-time highs of Rs 621.9 and Rs 461.4, respectively. Both stocks rise for three consecutive sessions.
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NTPC signs an MoU with General Electric (GE) Gas Power to demonstrate the feasibility of hydrogen co-firing in the gas turbines to decarbonise power generation. This agreement pertains to GE’s gas turbines installed in the company’s Kawas gas power plant in Gujarat. The companies intend to explore ways to reduce carbon dioxide emissions from the Kawas power plant.
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Lupin rises after it announces partnerships with global agencies like Unitaid, The Aurum Institute, Clinton Health Access Initiative (CHAI) etc. to support the treatment of tuberculosis. The company plans to introduce new formulations and affordable medicines which will be easily accessible in 138 countries.
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Coal, Metals & Mining, and Hardware Technology & Equipment sectors rise more than 6.5% in the past week.
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Maruti Suzuki is rising after Goldman Sachs initiates coverage on the stock with a ‘Buy’ and a target price of Rs 10,500. The brokerage says that the company is in a better position due to falling raw material prices and its new model launches like Grand Vistara and Jimny.
#BrokerageRadar | Goldman Sachs on Maruti: Assume Coverage with 'Buy', See Maruti better positioned to benefit from softening raw material #StockMarket #StocksToWatch pic.twitter.com/8nks0TxjdV
— ET NOW (@ETNOWlive) October 7, 2022 -
Indian Overseas Bank, GMR Infrastructure and Mangalore Refinery and Petrochemicals trade below their second support or S2 level as market trades lower.
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Indian Hume Pipe is rising as it bags an order worth Rs 194 crore from the Maharashtra government. The order is for the water supply of 150 villages in Jalgaon under the Jal Jeevan mission project.
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Sharekhan continues to be positive on HDFC Bank’s growth prospects as it retains its ‘Buy’ rating on the bank with a target price of Rs 1,800. This indicates an upside of 23.9%. The brokerage expects the bank’s healthy loan growth trend to continue driven by the retail and corporate segments. It also believes the company’s focus on improving its digital capabilities and franchise network will aid growth in the coming quarters. The brokerage estimates the bank’s profit to grow at a CAGR of 17.5% over FY22-25.
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World Bank lowers India’s FY23 GDP growth forecast to 6.5% from its earlier estimate of 7.5%.
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World Bank cuts India #FY23 #GDP growth forecast by 100 bps to 6.5%#WorldBank #IndiaGDP pic.twitter.com/f66aF6qCdG
— CNBC-TV18 (@CNBCTV18Live) October 6, 2022 -
Biocon falls after a European Directorate of Quality of medicines and healthcare (EDQM) cites a major deficiency at the API manufacturing site in Bangalore. The stock shows up on a screener of companies with declining RoA for the last two years.
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Bank stocks IDFC First Bank, Bank of Baroda, Bandhan Bank among others are falling in trade. All constituents of the broader Nifty Bank index also trade in the red.
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Indian rupee touches an all-time low of 82.2 against the US dollar in early trade today.
#Rupee opens at record low, crosses 82 Vs $ for the 1st time#RupeeAtrecordLow pic.twitter.com/rsbBFACmPX
— CNBC-TV18 (@CNBCTV18Live) October 7, 2022 -
Titan is rising as its overall sales in Q2FY23 rise 18% YoY as customer sentiment improves across all of its business segments. The overall sales growth is driven by the jewellery, watches, and accessories & apparel segments rising 18% YoY, 20% YoY, and 58% YoY, respectively. The company adds 105 retail stores for the quarter.
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Dolly Khanna buys a 0.1% stake in Talbros Automotive Components during Q2FY23, she now holds a 1.2% in the company.
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Quess Corp’s board approves the disinvestment of 53% stake in its non-material subsidiary Simpliance Technologies. Simpliance Tech is valued at Rs 120 crore and Quess Corp will receive its due consideration after adjustments are made for cash, debt and working capital. The company shows up on a screener which lists stocks with improving RoE in the last two years.
Riding High:
Largecap and midcap gainers today include Zomato Ltd. (69.55, 6.10%), Titan Company Ltd. (2,730.50, 5.31%) and JSW Energy Ltd. (345.00, 4.34%).
Downers:
Largecap and midcap losers today include Adani Total Gas Ltd. (3,187.60, -3.64%), Jubilant Foodworks Ltd. (618.95, -3.17%) and Dalmia Bharat Ltd. (1,524.35, -2.95%).
Crowd Puller Stocks
13 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Poly Medicure Ltd. (1,010.65, 6.18%), Zomato Ltd. (69.55, 6.10%) and Mahindra CIE Automotive Ltd. (317.25, 6.00%).
Top high volume losers on BSE were Varroc Engineering Ltd. (315.30, -6.87%), Dalmia Bharat Ltd. (1,524.35, -2.95%) and Emami Ltd. (487.75, -2.50%).
Century Plyboards (India) Ltd. (630.15, 0.02%) was trading at 4.1 times of weekly average. Titan Company Ltd. (2,730.50, 5.31%) and eClerx Services Ltd. (1,460.65, 2.59%) were trading with volumes 4.1 and 3.7 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
14 stocks overperformed with 52-week highs, while 1 stock hit its 52-week lows.
Stocks touching their year highs included - EID Parry (India) Ltd. (615.80, 1.85%), Phoenix Mills Ltd. (1,451.65, 2.39%) and Solar Industries India Ltd. (4,139.30, 1.87%).
Stock making new 52 weeks lows included - Motilal Oswal Financial Services Ltd. (713.40, -2.37%).
12 stocks climbed above their 200 day SMA including JSW Energy Ltd. (345.00, 4.34%) and Heidelberg Cement India Ltd. (197.70, 3.73%). 12 stocks slipped below their 200 SMA including Endurance Technologies Ltd. (1,360.05, -2.91%) and Godrej Consumer Products Ltd. (829.85, -2.79%).
