Trendlyne Marketwatch    
13 Dec 2022
Market closes higher, Landmark Cars’ IPO gets bids for 17% of total shares

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 closing just above the 18,600 mark. European stocks followed the global trend and traded higher than Monday’s level. India’s retail inflation eased to an 11-month low of 5.88% in November amid cooling commodity prices. The inflation print came under the RBI’s upper tolerance limit of 6% for the first time this year. However, India’s industrial output contracted by 4% in October, its weakest performance in over two years.

Most major Asian indices closed in the green, in line with the US indices, which closed higher on Monday. US stocks rose as investors look ahead to the key inflation report to be released later today and the Fed’s rate decision scheduled on Wednesday. The tech-heavy NASDAQ 100 rose 1.2% while the Dow Jones closed 1.6% higher. Brent crude oil futures rise over 1.8% due to the outage of a key crude oil pipeline supplying the United States.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty Auto closed higher than Monday’s levels. Nifty IT closed in the green, taking cues from the tech-heavy NASDAQ 100, which rose over 1.2% on Monday.

Nifty 50 closed at 18,608.00 (110.9, 0.6%), BSE Sensex closed at 62,533.30 (402.7, 0.7%) while the broader Nifty 500 closed at 15,904.50 (76.5, 0.5%)

Market breadth is in the green. Of the 1,940 stocks traded today, 988 were in the positive territory and 894 were negative.

  • Relative strength index (RSI) indicates that stocks like YES Bank, Central Bank of India, Bank of Baroda and JK Lakshmi Cement are in the overbought zone.

  • Great Eastern Shipping Co and The Fertilisers and Chemicals Travancore hit their all-time highs of Rs 727.9 and Rs 192.7 respectively. Both stocks rise for two consecutive sessions.

  • Vedanta rises as it signs three MoUs (memorandum of understanding) with Japanese Tech Firms for the development of Indian semiconductor and glass display manufacturing project. The project has the potential to generate business worth Rs 3.3 lakh crore, according to reports.

  • Landmark Cars’ Rs 552 crore IPO gets bids for 17% of the available 80.4 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 17% of the available 40 lakh shares on offer. The IPO is a fresh issue of Rs 150 crore and an offer for sale of Rs 402 crore.

  • IT stocks like Infosys, HCL Technologies, Coforge and Tata Consultancy Services are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

  • The Society of Indian Automobile Manufacturers (SIAM) data show a 20% YoY rise in auto sales to 15.6 lakh units in November. Two-wheeler sales increased 17% YoY to 12.4 lakh units and passenger cars, 29% YoY.
  • Sula Vineyards’ Rs 960.3 crore IPO gets bids for 59% of the available 1.8 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 99% of the available 94.1 lakh shares on offer.

  • Bandhan Bank is rising as its receives claims worth Rs 916.6 crore under the Centre’s trust fund. The fund is for guaranteeing payment against loan defaults.
  • UCO Bank surges and hits a 52-week high of Rs 27.7 in trade today. It shows up in a screener of stocks trading higher than their second resistance or R2 level. It ranks high in the Trendlyne checklist with a score of 78.26%.

  • Tata Motors rises as its board gives in-principle approval to partially divest its stake in Tata Technologies. Tata Motors held a 72.5% stake in Tata Technologies at the end of FY22. Tata Technologies is likely to go public in FY23.

  • Laurus Labs hits a 52-week low of Rs 388.2 and is one of the top loser stocks in trade today. It shows up in a screener of stocks where promoters increased their pledged shares QoQ. It ranks low in the Trendlyne checklist. The stock is trading below its historic averages and falls in the PE Buy Zone.

  • Sheela Foam rises after it announces December 22 as record date for its bonus issue of shares. It shows up in a screener of stocks with highest returns over the past five years.

  • Indian rupee depreciates 10 paise to 82.64 from the previous close of 82.54 against the US dollar in early trade today amid strong demand for the dollar.

  • Godrej Agrovet sells land measuring approx 3.92 acres in Ambattur, Tamil Nadu, for Rs 71.36 crore. 

  • V-Guard Industries is rising as it plans to acquire a 100% stake in Sunflame Enterprises for Rs 660 crore. The transaction is likely to be completed by mid-January 2023. The company shows up in a screener of stocks with improving book value for the past two years.

  • India’s CPI inflation eases to an 11-month low of 5.88% in November compared to 6.77% in October. The fall comes after a decline in global commodity and food prices. Meanwhile, India’s index of industrial production (IIP) contracted by 4% in October. Contraction in IIP implies a decline in industrial or manufacturing activity.

  • Porinju Veliyath sells a 0.1% stake in HPL Electric & Power on Thursday, he now holds 0.91% in the company.

  • Landmark Cars raises Rs 165.3 crore from anchor investors ahead of its IPO by allotting 32.6 lakh shares at Rs 506 per share. Investors include Aditya Birla Sun Life, Pinebridge Global Funds and Edelweiss.

  • Dalmia Cement, a wholly owned subsidiary of Dalmia Bharat will acquire cement, clinker and power plants from Jaiprakash Associates for a value of Rs 5,666 crore. Jaiprakash Associates has plants with a total cement capacity of 9.4 million tonnes in Madhya Pradesh, Uttar Pradesh and Chattisgarh. This acquisition will help Dalmia expand into the Central India region.

  • KEC International bags new orders worth Rs 1,349 crore across its businesses. The orders pertain to transmission and distribution projects in India, SAARC, the Middle East and the USA. It also won orders in the civil construction and cables segment.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (30.85, 14.90%), YES Bank Ltd. (23.95, 13.51%) and Tata Communications Ltd. (1,367.45, 7.06%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (1,026.85, -5.21%), Laurus Labs Ltd. (391.05, -3.27%) and Dr. Lal Pathlabs Ltd. (2,358.80, -2.81%).

Movers and Shakers

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

Top high volume gainers on BSE included Housing and Urban Development Corporation Ltd. (55.05, 11.66%), Indian Bank (294.00, 9.17%) and CSB Bank Ltd. (258.35, 7.40%).

Top high volume losers on BSE were GHCL Ltd. (513.10, -6.30%), Laurus Labs Ltd. (391.05, -3.27%) and Dalmia Bharat Ltd. (1,856.05, -2.64%).

IIFL Wealth Management Ltd. (1,827.00, 2.94%) was trading at 19.2 times of weekly average. Tata Communications Ltd. (1,367.45, 7.06%) and Sheela Foam Ltd. (2590.00, -0.35%) were trading with volumes 12.9 and 10.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

29 stocks overperformed with 52-week highs, while 2 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (362.40, 6.87%), Apollo Tyres Ltd. (318.30, -1.49%) and Axis Bank Ltd. (944.60, 0.63%).

Stocks making new 52 weeks lows included - Laurus Labs Ltd. (391.05, -3.27%) and Polyplex Corporation Ltd. (1,671.85, -1.76%).

20 stocks climbed above their 200 day SMA including Birla Corporation Ltd. (1,041.95, 3.42%) and CESC Ltd. (78.85, 2.87%). 9 stocks slipped below their 200 SMA including Macrotech Developers Ltd. (1,026.85, -5.21%) and Chemplast Sanmar Ltd. (469.60, -2.84%).

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