Trendlyne Analysis

Nifty 50 closed at 18,599.00 (5.2, 0.0%), BSE Sensex closed at 62,792.88 (5.4, 0.0%) while the broader Nifty 500 closed at 15,878.40 (18.9, 0.1%). Of the 1,977 stocks traded today, 1,062 were gainers and 845 were losers.

Indian indices recover from a day low and close flat, with the Nifty 50 hovering above the key 18,600 mark. The volatility index, Nifty VIX, rises above 11 at the close. A report by Google, Temasek and Bain stated that India’s internet economy is expected to grow six times and touch USD 1 trillion by 2030. 

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closes flat following the benchmark index. Nifty Realty and Nifty Auto closed sharply higher than Monday’s closing levels. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day with a rise of over 6.31%. 

Most European indices trade sharply lower except for Switzerland’s SMI trading in the green. US indices futures trade lower indicating a negative start. The ISM non-manufacturing PMI of the US fell to 50.3 in May against estimates of 52.2. The April non-manufacturing PMI stood at 51.9.

• JSW Steel beats Tata Steel in QoQ revenue and profit growth, one-year price change and FII holdings. But it lags in PE ratio, one-year dividend yield, MF holdings and broker average rating.

• Dalmia Bharat and Craftsman Automation touch their 52-week highs of Rs 2,170 and Rs 3,969 respectively. Dalmia has risen 7.3% in the past month, while the other increased by 19.8%.

• According to reports, Jefferies maintains a ‘Buy’ rating on Axis Bank with a target price of Rs 1,150, indicating an upside of 19%. The brokerage is optimistic about the progress of Axis Bank's integration with Citibank India's retail platform, expecting it to generate cost synergies. It also expects the bank’s loan book to grow and asset quality to improve in the coming quarters.

• La Opala RG rises as Nippon India Mutual Fund purchases 1.7% of equity stake (18,82,205 shares) in the company at an average price of Rs 399.05 per share.

• IKIO Lighting’s Rs 607 crore IPO gets bids for 1.55X the available 1.5 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.64X of the available 76.9 lakh shares on offer.

• Morgan Stanley expects the BSE Sensex to reach the 68,500 level by December. The brokerage highlights that Indian stocks remain attractive despite rich valuations.

  #MarketsWithMC | Morgan Stanley predicts a potential 10% increase in the #Sensex, aiming for a level of 68,500 by Dec. They anticipate the index to trade at a trailing price-to-earnings multiple of 20.5 times, slightly below the 25-year average of 20x.
  
  Know more ????… pic.twitter.com/CNRg95MFJy

  — Moneycontrol (@moneycontrolcom) June 6, 2023

• Coforge falls by over 3.5% in trade and ranks low on Trendlyne's checklist with a score of 43.5%. The stock is in the 'Strong Sell' zone and appears in a screener of stocks with a negative breakdown at the third resistance level.

• Sharda Cropchem rises over 10% in trade and ranks high on Trendlyne's checklist with a score of 68.2%. The stock is in the 'Buy' zone, and appears in a screener for affordable stocks with high ROE and momentum.

• NTPC successfully commercializes the remaining 10 MW of the 20 MW Gandhar Solar PV project at Gandhar, Gujarat. The first 10 MW was commissioned on August 23, 2022.

• Bajaj Finance, Asian Paints, JSW Steel and Nestle India's TTM price-to-earnings ratios trade above that of their respective industries.

• Hardware technology & equipment, media and realty sectors rise more than 4% in the past week.

• Thermax is falling as an arbitration panel rules against the company regarding the malfunctioning of two gas turbo generators at a customer site. The panel has directed Thermax to repair the generators and pay Rs 250 crore to the customer to cover additional power expenses and arbitration cost.

• BoB Capital Markets maintains its ‘Buy’ rating on Hindustan Unilever with a target price of Rs 3,069. This implies an upside of 14.1%. the brokerage remains positive about the firm’s prospects due to its market share gains, investments into brand building and innovation. It expects the company’s revenue to grow at a CAGR of 10.5% over FY23-25.

• Emami rises as it buys back a total of 23.68 lakh equity shares, amounting to Rs 94 crore, at Rs 397 per share on June 5. It appears on a screener of stocks with low debt.

• Jefferies lowers the target price on Sunteck Realty to Rs 415 from the earlier Rs 621 due to the company’s weak Q4 earnings. However, the brokerage maintains its ‘Buy’ rating, expecting a 20-25% pre-sales growth over FY22-25.

  #Jefferies revises the target price for #SunteckRealty after a disappointing #Q4. Despite the setback, the buy tag remains intact.
  
  Find out more ????https://t.co/sfgCi2Z37h#EarningsWithMC #RealEstate #Stocks #Markets

  — Moneycontrol (@moneycontrolcom) June 6, 2023

• Man Infraconstruction rises as its subsidiary, MICL Creators LLP, plans to undertake the development of a residential project in Ghatkopar, Mumbai. The project will have a saleable carpet area of 4 lakh sqft and the potential to generate Rs 12,000 crore over four years.

• IT stocks like Persistent Systems, MphasiS and Tech Mahindra fall more than 2% in trade today. All constituents of the broader Nifty IT index are also trading in the red.

• Larsen & Toubro's buildings and factories arm wins orders worth Rs 1,000-2,500 crore to construct commercial towers at two locations in Mumbai.

• Leelavathi Reddy, P Kalpana Reddy and Mitta Madhavi, promoters of MTAR Technologies, sell stakes of 1.13%, 0.33% and 0.33% in the company respectively on Thursday.

• CLSA expects a moderate improvement in the operating margins of FMCG companies in FY24. The brokerage favours Hindustan Unilever, ITC, and Dabur in the space, while maintaining a 'Sell' rating on Britannia Industries and Nestle.

  Brokerage Radar | @CLSAInsights on Consumer Stocks; Continue to like HUL, ITC and Dabur while remain Sell on Britannia and Nestle on high valuations@HUL_News @ITCCorpCom @DaburIndia @BritanniaIndLtd @Nestle #StockMarket pic.twitter.com/KkOazOydeW

  — ET NOW (@ETNOWlive) June 6, 2023

• President of India, promoter of Coal India, sells a 3% stake in the company for Rs 4,185 crore. The government now holds a 63.13% stake after the sale.

• Adani Enterprises is rising as it completes the prepayment of share-backed loans worth $2.1 billion, according to reports. The promoters have also prepaid a $700 million debt taken for the acquisition of Ambuja Cements.

• IKIO Lighting raises Rs 181.95 crore from anchor investors ahead of its IPO by allotting 63.84 lakh shares at Rs 285 each. Investors include HDFC Mutual Fund, ICICI Prudential, Goldman Sachs, Quant Mutual Fund, Malabar India Fund and Citigroup Global Markets Mauritius.

• Reports suggest that 19.4 lakh shares (0.14% equity) of Larsen & Toubro, amounting to Rs 441.3 crore, change hands in a large trade.

  L&T Large Trade | 19.4 Lakh Shares (0.14% Equity) Worth ?441.3 Cr Change Hands At ?2,275/Sh pic.twitter.com/JuChBlX3VT

  — CNBC-TV18 (@CNBCTV18Live) June 6, 2023

• JK Cement is rising as it agrees to acquire a 100% stake in Toshali Cements for a cash consideration of Rs 157 crore. The management expects this acquisition to support the company's expansion in Eastern India. The stock shows up in a screener for companies with book value per share improving over the past two years.

• Indoco Remedies' board of directors approves the acquisition of an 85% equity stake in Florida Pharmaceutical Products (FPP) Holding Company for $4 million. This acquisition will provide Indoco with synergies and access to marketing and distribution channels in the USA.

• Indian Energy Exchange’s total monthly trade volume in May rises 8% YoY to 8,251 million units (MU) due to increased power demand. The average spot power price falls 30% YoY on the back of improved supply, higher liquidity, and cooler weather conditions. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (263.35, 5.51%), Ambuja Cements Ltd. (459.15, 4.58%) and PB Fintech Ltd. (624.05, 4.03%).

Downers:

Largecap and midcap losers today include Persistent Systems Ltd. (4,981.05, -4.38%), Coforge Ltd. (4,415.50, -3.85%) and MphasiS Ltd. (1,914.40, -3.67%).

Volume Shockers

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

Top high volume gainers on BSE included Aegis Logistics Ltd. (346.70, 8.99%), Sterling and Wilson Renewable Energy Ltd. (318.60, 8.22%) and Mahindra CIE Automotive Ltd. (492.20, 7.28%).

Top high volume losers on BSE were Indian Energy Exchange Ltd. (147.20, -3.92%) and Rallis India Ltd. (188.90, -1.54%).

IFB Industries Ltd. (803.15, 0.40%) was trading at 17.0 times of weekly average. Shyam Metalics and Energy Ltd. (311.20, 5.89%) and Prism Johnson Ltd. (127.85, 4.32%) were trading with volumes 15.9 and 11.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks made 52-week highs,

Stocks touching their year highs included - 3M India Ltd. (27,415.00, 2.28%), AIA Engineering Ltd. (3,112.90, 0.40%) and Ajanta Pharma Ltd. (1,414.35, 2.54%).

20 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (346.70, 8.99%) and Sterling and Wilson Renewable Energy Ltd. (318.60, 8.22%). 10 stocks slipped below their 200 SMA including MphasiS Ltd. (1,914.40, -3.67%) and Trident Ltd. (33.35, -1.91%).