Trendlyne Analysis

Nifty 50 closed at 19,389.00 (66.5, 0.3%), BSE Sensex closed at 65,479.05 (274, 0.4%) while the broader Nifty 500 closed at 16,556.05 (28.1, 0.2%). Market breadth is in the red. Of the 1,968 stocks traded today, 809 were gainers and 1,100 were losers.

Indian indices fell from their day highs but still closed at their all-time highs, with the volatility index, Nifty VIX, rising by 1.4%. The benchmark Nifty 50 index has risen over 3.7% in the past week. Eicher Motors closed over 6% lower as Hero MotoCorp and Harley-Davidson launched a new premium motorcycle, X440, in India with a starting price of Rs 2.29 lakh.

Nifty Smallcap 100 closed in the green but Nifty Midcap 100 closed lower, despite the benchmark index closing in the green. Nifty IT and Nifty PSU Bank closed higher than their Monday’s close.  According to Trendlyne's sector dashboard, Diversified was the top-performing sector of the day.

Major Asian indices closed flat or higher, except for Japan’s Nikkei 225 index, which closed nearly 1% lower. European stocks traded mixed, despite the US index futures trading marginally lower. US markets will remain closed today in observance of the Independence Day holiday.

• Money flow index (MFI) indicates that stocks like Nippon Life India Asset Management, Zydus Lifesciences, JBM Auto and Patanjali Foods are in the overbought zone.

• HPL Electric & Power surges almost 20% as it bags an order worth Rs 903 crore for smart meters. The company's order book currently stands at approximately Rs 2,250 crore.

• 360 One Wam and Global Health touch their 52-week highs of Rs 490 and Rs 692.3 respectively. The former has risen by 15% over the past month, while the latter increased by 17.2%.

• NBCC (India) is rising as the Ministry of External Affairs sanctions Rs 261.7 crore for the redevelopment of the MEA Housing Complex (Old) at Kasturba Gandhi Marg, New Delhi. It appears in a screener of stocks with no debt.

• GR Infraprojects signs an engineering, procurement and construction (EPC) agreement worth Rs 587.6 crore with East Coast Railway for the construction of tunnels (T-4, T-5, T-6 and T-7) on the Khurda-Bolangir new rail line project. The estimated time of completion of the project is 30 months for T-4, 18 months each for T-5 and T-6, and 24 months for T-7.

• Eicher Motors is falling as Hero MotoCorp and Harley-Davidson launch a new bike, X440, in India. This model is a premium motorcycle with a starting price of Rs 2.29 lakh. Co-developed by the company and Harley-Davidson, this bike will likely be a competitor to Royal Enfield's Classic 350 and Hunter 350.

• Senco Gold’s Rs 405 crore IPO gets bids for 69% of the available 94.2 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.12X of the available 47.1 lakh shares on offer.

• PKH Ventures’ Rs 379 crore IPO gets bids for 65% of the available 2.6 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 99% of the available 89.7 lakh shares on offer.

• According to S&P Global Ratings, Indian companies are in a favourable financial position due to the improvement in their balance sheets and strong economic growth in the country. The rating agency estimates that the aggregate EBITDA of corporate and infrastructure firms will be around 50% higher in FY24 compared to the past five years.

  S&P Global Ratings said on Tuesday that Indian companies were in "good credit shape" due to strong growth in the country's #economy and accommodative corporate balance sheets.https://t.co/jcfjCKwfxH

  — Economic Times (@EconomicTimes) July 4, 2023

• Zydus Lifesciences receives final approval from the US FDA for oxcarbazepine tablets, which are used to treat epilepsy. The tablets are estimated to have had annual sales of $105 million in the year ending May 2023. The drug will be manufactured at the company's formulation manufacturing facility in Himachal Pradesh.

• KRChoksey maintains its ‘Buy’ rating on Axis Bank with a target price of Rs 1,160. This implies an upside of 18.6%. The brokerage remains positive about the bank’s prospects given its strong business momentum trends, improving operating performance, healthy asset quality and successful integration of the CITI business. It expects the firm’s net profit to grow at a CAGR of 79.4% over FY23-25.

• Bharti Airtel is falling as Reliance Jio launches a Jio Bharat 4G feature phone for Rs 999. Beta trials for the phone will start on Friday for the first 1 million buyers, offering unlimited voice calls and 14 GB data for Rs 123 per month. Jeffries India states that Bharti Airtel could potentially lose 11 million subscribers a year after the release of the phone.

• Senco Gold raises Rs 121.5 crore from anchor investors ahead of its IPO by allotting 38.32 lakh shares at Rs 317 per share. Investors include Ashoka WhiteOak Emerging Markets Trust, Nippon Life India, Bandhan Mutual Fund, Templeton India Value Fund, Sundaram Mutual Fund and Max Life Insurance Co.

• L&T Finance Holdings is falling as Kotak Institutional Equities downgrades its rating on the company to a ‘Sell’ from 'Reduce', with a revised target price of Rs 95. The brokerage believes that the firm will continue to face the challenges of low near-term growth and muted RoE.

  L&T Finance Holdings share price falls 5%; Kotak downgrades the stock to a sell
  
  Read here: https://t.co/Rw0AETUbrX pic.twitter.com/MIcvcz9PyW

  — Mint (@livemint) July 4, 2023

• Media stocks like Dish TV India, TV18 Broadcast, Zee Entertainment Enterprises, Hathway Cable & Datacom and Sun TV Network are rising in trade. Barring PVR INOX, all other constituents of the broader sectoral index, Nifty Media, are trading in the green.

• Mahindra & Mahindra Financial Services, Indus Towers, UPL and Polycab India witness a significant surge in mutual fund holdings in the past month.

• PSU banks like Punjab National Bank, Bank of India, Bank of Baroda, Indian Bank and Canara Bank are rising in trade. Barring Punjab & Sind Bank, all other constituents of the broader sectoral index, Nifty PSU Bank, are also trading in the green.

• Morgan Stanley maintains its ‘Equal-weight’ rating on Avenue Supermarkets with a target price of Rs 3,786, citing a lower-than-anticipated growth in Q1FY24. Meanwhile, the company's standalone revenue has risen by 18.1% YoY to Rs 11,584.4 crore in Q1.

  Brokerage Radar | Morgan Stanley on Avenue Supermarts; Maintain Equal-weight: Third consecutive quarter in which growth has been weaker than expected#AvenueSupermarts #MorganStanley #StockMarket pic.twitter.com/iP6C8FpU4E

  — ET NOW (@ETNOWlive) July 4, 2023

• Foreign institutional investors invest Rs 40,015.6 crore in the equity market over the past month, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 33,681.9 crore from foreign investors. Mutual funds also invest Rs 7,670 crore in the Indian markets.

• Shares of HMA Agro Industries debut on the bourses at a 6.8% premium to the issue price of Rs 585. The Rs 480 crore IPO has received bids for 1.43 times the total shares on offer.

• Ameera Shah, Managing Director of Metropolis Health, says the company targets to maintain its margin at around 25% despite lab expansion. She expects the contribution from the new network and premium wellness to rise from 3-5% and 15-20% respectively.

  #OnCNBCTV18 | #COVID impacted #revenue & #profit, #FY23 core business saw 13% volume growth (ex-COVID). Despite opening 15 #labs in #FY23, #margin dilution was at 1.5%. New network contribution to increase from 3% to 5%, says Ameera Shah of Metropolis Health pic.twitter.com/As2M4lmKZS

  — CNBC-TV18 (@CNBCTV18Live) July 4, 2023

• Vijay Kedia converts Atul Auto's 7.24% warrants into equity shares on Monday. He now holds a 12.86% stake in the company.

• Bajaj Finance surges to its 52-week high of Rs 7,918 per share as its AUM grows 32% YoY to Rs 2.7 lakh crore in Q1FY24. The growth is backed by improvements in new loans booked and deposits. The lender shows up in a screener of stocks with improving return on assets over the past two years.

• IDFC rises as the board of IDFC First Bank approves a merger proposal with IDFC and IDFC Financial Holding Co. However, IDFC First Bank is declining as the merger stands to favour IDFC shareholders by 16%. IDFC shareholders will receive 155 IDFC First Bank shares for every 100 shares held.

• Genus Power Infrastructure is rising as it receives a letter of award worth Rs 2,207.5 crore for the installation and commissioning of 27.69 lakh smart prepaid meters. Joint Managing Director of the firm, Jitendra Kumar Agarwal says, “This order win provides added visibility to our revenues for coming years. It also signals a strong start to order inflow in FY24”.

• Tube Investments of India enters the small commercial electric vehicle segment through its subsidiary, TI Clean Mobility. It partners with Anand Jayachandran, promoter of Jayem Automotives, for a joint investment in a new company. TI Clean Mobility will invest Rs 160 crore and Jayachandran will give Rs 40 crore. The company’s arm also agrees to acquire a 50% stake in Jayem Automotives for Rs 206 crore to improve its product development capability.

Riding High:

Largecap and midcap gainers today include Bajaj Finance Ltd. (7,892.00, 7.62%), Punjab National Bank (57.40, 6.59%) and Bajaj Finserv Ltd. (1,631.95, 5.96%).

Downers:

Largecap and midcap losers today include Eicher Motors Ltd. (3,417.95, -5.86%), IDFC First Bank Ltd. (79.10, -3.48%) and FSN E-Commerce Ventures Ltd. (144.40, -2.50%).

Movers and Shakers

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

Top high volume gainers on BSE included Aster DM Healthcare Ltd. (322.20, 12.28%), Bajaj Finance Ltd. (7,895.95, 7.68%) and Radico Khaitan Ltd. (1,365.15, 6.81%).

Top high volume losers on BSE were Eicher Motors Ltd. (3,417.95, -5.86%) and Minda Corporation Ltd. (282.70, -3.78%).

IDFC Ltd. (111.90, 2.47%) was trading at 8.0 times of weekly average. La Opala RG Ltd. (451.25, 4.08%) and Bajaj Finserv Ltd. (1,631.95, 5.96%) were trading with volumes 7.1 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks overperformed with 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Bajaj Finance Ltd. (7,892.00, 7.62%), Bank of Baroda (203.30, 2.11%) and Can Fin Homes Ltd. (797.40, 2.43%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (520.60, -4.22%).

13 stocks climbed above their 200 day SMA including Bayer Cropscience Ltd. (4,613.15, 4.27%) and Federal Bank Ltd. (132.80, 4.12%). 6 stocks slipped below their 200 SMA including Praj Industries Ltd. (372.90, -1.04%) and JK Lakshmi Cement Ltd. (700.00, -1.03%).