Trendlyne Marketwatch
Trendlyne Marketwatch
09 Jun 2023
Market closes lower, HDFC Sec downgrades rating on Hero MotoCorp to ‘Reduce’ from ‘Buy’

Trendlyne Analysis

Nifty 50 closed at 18,563.40 (-71.2, -0.4%) , BSE Sensex closed at 62,625.63 (-223.0, -0.4%) while the broader Nifty 500 closed at 15,877.40 (-43.7, -0.3%). Of the 1,969 stocks traded today, 874 were in the positive territory and 1,031 were negative.

Indian indices extended their losses from the afternoon session and closed in the red, with the Nifty 50 closing below the 18,600 mark. However, the benchmark Nifty 50 index ended the week marginally higher and is just around 1.7% away from its all-time high. The volatility index, Nifty VIX, fell over 1% and closed just above the 11% mark.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index closing in the red. Nifty FMCG and Nifty Pharma closed lower than Thursday’s close. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment was the top-performing sector of the week.

Major Asian indices closed in the green, except for India’s BSE Sensex, which closed lower. European stocks traded mixed after opening lower, in line with US indices futures. Brent crude oil futures traded in the green after falling over 1.6% on Thursday.

  • India Cements sees a long buildup in its June 29 future series as its open interest rises 15.2% with a put-call ratio of 0.76.

  • Medplus Health Services falls more than 3% and ranks low on Trendlyne's checklist with a score of 35%. The stock is in the 'Sell' zone and appears in a screener with declining RoCE.

  • Foreign institutional investors invest Rs 2,685.7 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 13,817.8 crore from foreign investors.

  • Motilal Oswal maintains its ‘Buy’ rating on Tata Motors with a target price of Rs 650, implying an upside of 15.8%. The brokerage believes the company will benefit from the commercial vehicle upcycle, while its passenger vehicle segment will witness stable growth due to the easing of supply-side issues and falling commodity prices. It also expects a significant improvement in cash flows, which will lead to debt reduction.

  • KPR Mill and Max Healthcare Institute touch their 52-week highs of Rs 639 and Rs 577.4 respectively. KPR Mill has risen 8.8% in the past month, while the other increased by 18.5%.

  • Hardware technology & equipment, general industrials and telecommunications equipment sectors rise more than 5% in the past week.

  • HDFC Life Insurance Co, Apollo Hospitals Enterprise, Nestle India and Titan Co’s TTM price-to-earnings ratios trade above those of their respective industries.

  • Five Star Business Finance is rising as CareEdge Ratings upgrades its rating from 'A+ Stable' to 'AA- Stable', according to reports. The rating agency attributes the upgrade to the company's increased market capitalization and growth in the gross loan portfolio.

  • HDFC Securities downgrades its rating on Hero MotoCorp to ‘Reduce’ from ‘Buy’ and lowers the target price to Rs 2,512 from Rs 2,959. This implies a downside of 14.2%. The brokerage believes the shift in motorcycle demand towards 125cc from the 100cc segment will hurt the company, given that the 100cc segment contributes 78% of its volumes. It also adds that the firm’s significant loss of market share in the 125cc segment makes matters worse.

  • Biocon rises as its Bengaluru-based active pharmaceutical ingredient (API) factory receives good manufacturing practice (GMP) compliance approval from the competent authority of Germany after inspections. The stock appears in a screener for stocks with upgraded broker recommendations.

  • Bank of Maharashtra, HDFC Life Insurance Company, Voltas and ICICI Lombard General Insurance Company are trading below their third support or S3 levels.

  • Mutual Funds' net inflow declines 52.5% MoM to Rs 57,420 crore in May from Rs 1.21 lakh crore in April, according to data released by the Association of Mutual Funds in India (AMFI).

  • Aether Industries touches a new 52-week high today after signing a licensing deal with Saudi Aramco Industries for the commercialization of Converge polyols technology. The company is targeting a market of 850,000 MT per year with a CAGR of 5% for these novel polyols. It appears in a screener for stocks with strong quarterly growth in recent results.

  • PSU banks like Bank of Maharashtra, Punjab & Sind Bank, UCO Bank, State Bank of India and Bank of Baroda are falling in trade. Barring Indian Bank, all constituents of the broader sectoral index, Nifty PSU Bank, are also trading in the red.

  • Visa restrictions and investment clearance issues for Chinese nationals and firms are affecting Indian businesses. Dixon Technologies' proposed Rs 400 crore refrigerator manufacturing unit has also been impacted. Atul Lall, the company's MD, emphasizes the need for government support in clearing visas for Chinese engineers, particularly for production-linked incentive (PLI) holders.

  • Avenue Supermarts is rising as Motilal Oswal Securities upgrades its rating on the stock to a ‘Buy’ from ‘Neutral’ earlier and increases the target price to Rs 4,200. The brokerage expects a recovery in the company’s same-store sales growth (SSSG) due to easing inflation. It says robust store additions and a reduction in raw material costs could aid SSSG.

  • Sugar stocks like Shree Renuka Sugars, EID Parry (India), Balrampur Chini Mills, Bannari Amman Sugars and Dalmia Bharat Sugar and Industries are rising in trade. The broader sugar industry is also trading in the green.

  • Indian Energy Exchange (IEX) is falling as the Power Ministry reportedly orders the Central Electricity Regulatory Commission (CERC) to implement ‘market coupling’ for spot power trading. This could reduce IEX's trading volumes, impacting its market share. SN Goel, Chairman and MD of IEX, says CERC will initiate a stakeholder consultation before the implementation process.

  • Macquarie downgrades its rating on HDFC Life, ICICI Prudential Life and SBI Life to 'Neutral' from 'Outperform' and also cuts the target price over concerns regarding long-term growth prospects and emerging regulatory risks.

  • HAL touches a new 52-week high today following reports of an upcoming board meeting on June 27 to discuss and approve a proposal for the sub-division of equity shares of the company. It appears in a screener for stocks with strong momentum.

  • GAIL is rising as it emerges as the successful bidder in the resolution process of JBF Petrochemicals, investing a total of Rs 2,101 crore. This acquisition adds purified terephthalic acid to its existing petrochemical portfolio. The stock appears in a screener for companies with low debt.

  • Canada Pension Fund sells 1.7% equity (3.4 crore shares) amounting to Rs 6,336 crore in Kotak Mahindra Bank in a large trade today, according to reports.

  • IRB Infrastructure rises as its monthly toll collection increases 19.7% YoY to Rs 411 crore. The increase in toll revenue is driven by IRB's Madhya Pradesh expressway and Kishangarh Gulabpura tollways. It appears in a screener of stocks with growing quarterly revenue.

  • Ashish Kacholia sells a 0.78% stake in United Drilling Tools for approx Rs 3 crore in a bulk deal on Thursday.

  • Greenlam Industries rises as its subsidiary, HG Industries, begins commercial production at one of its greenfield projects. The project has the potential to generate an annual revenue of Rs 400 crore when operating at full capacity. The estimated capex for the project amounts to Rs 130 crore.

  • Tata Power’s arm, TP Vardhaman Surya, inks a pact with Tata Steel to set up a 966 MW hybrid renewable power project. The project will include 379 MW of solar power and 587 MW of wind power. It is expected to be commissioned by June 1, 2025. The company shows up in a screener for stocks with book value per share improving over the past two years.

Riding High:

Largecap and midcap gainers today include Hindustan Aeronautics Ltd. (3,732.90, 5.83%), One97 Communications Ltd. (814.30, 5.48%) and Tata Communications Ltd. (1,469.75, 3.92%).

Downers:

Largecap and midcap losers today include ICICI Prudential Life Insurance Company Ltd. (495.05, -3.46%), Voltas Ltd. (777.95, -3.35%) and SRF Ltd. (2,429.70, -3.35%).

Volume Shockers

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

Top high volume gainers on BSE included India Cements Ltd. (230.35, 6.97%), Sonata Software Ltd. (1,032.85, 3.85%) and Just Dial Ltd. (751.00, 3.77%).

Top high volume losers on BSE were Indian Energy Exchange Ltd. (122.60, -10.15%), Bank of Maharashtra (28.35, -6.59%) and Clean Science & Technology Ltd. (1,377.15, -2.07%).

Five-Star Business Finance Ltd. (593.40, 1.79%) was trading at 6.9 times of weekly average. Poly Medicure Ltd. (986.90, -0.62%) and Balrampur Chini Mills Ltd. (404.70, 2.31%) were trading with volumes 5.4 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks made 52 week highs, while 3 stocks hit their 52 week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (3,223.20, 3.21%), Apollo Tyres Ltd. (405.30, 2.30%) and Astral Ltd. (1987.85, 1.84%).

Stocks making new 52 weeks lows included - V-Mart Retail Ltd. (1,990.00, -0.94%) and Indian Energy Exchange Ltd. (122.60, -10.15%).

9 stocks climbed above their 200 day SMA including India Cements Ltd. (230.35, 6.97%) and HFCL Ltd. (70.15, 1.89%). 14 stocks slipped below their 200 SMA including Indian Energy Exchange Ltd. (122.60, -10.15%) and HDFC Asset Management Company Ltd. (1,934.25, -2.98%).

 
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