Trendlyne Analysis

Nifty 50 closed at 19,310.15 (-55.1, -0.3%), BSE Sensex closed at 64,948.66 (-202.4, -0.3%) while the broader Nifty 500 closed at 16,757.70 (-44.6, -0.3%). Of the 1,935 stocks traded today, 745 were gainers and 1,132 were losers.

Indian indices closed in the red, with the Nifty 50 closing just above the 19,300 mark. The Indian volatility index, Nifty VIX, fell 0.8% but still closed above 12 points. Indian indices posted weekly losses for a fourth straight week after hitting their all-time highs on July 20. The RBI, in its August bulletin, stated that the possibility of stagflation in India is low at 3%, despite the recent surge in retail inflation. 

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. However, Nifty Media and Nifty Metal closed higher than their Thursday close. According to Trendlyne's sector dashboard, Transportation was the top-performing sector of the week in a volatile market.

Major European indices traded in the red, in line with the Asian indices. China’s Shanghai SE Composite Index closed 1% lower amid contagion fears of the liquidity crisis in China’s shadow banking industry. US index futures also traded in the red amid weak global cues, indicating a negative start to the trading session.

• Money flow index (MFI) indicates that stocks like Suven Pharmaceuticals, Emami, KSB and Kalyan Jewellers India are in the overbought zone.

• New Delhi Television rises as the Ministry of Information & Broadcasting approves uplinking and downlinking for four news and current affairs channels: NDTV Rajasthan, NDTV Madhya Pradesh/Chhattisgarh, NDTV Gujarati and NDTV Marathi.

• Jio Financial Services (JFSL), demerged from Reliance Industries, is set to go public on Indian stock exchanges on August 21, 2023.

  Jio Financial Services to be listed on stock exchanges on August 21.#jiofinancialservices #Reliance #MukeshAmbani pic.twitter.com/7dkg6phlBN

  — Business Standard (@bsindia) August 18, 2023

• Indian Hume Pipe surges over 5% on receiving a letter of award (LOA) worth Rs 639.2 crore from the Rural Water Supply & Sanitation, Odisha. The LOA is for the execution of a rural piped water supply project in the Puri district. The project is expected to be completed in two years and the company will manage the operation and maintenance for five years.

• BLS International Services and Escorts Kubota touch their all-time highs of Rs 261 and Rs 2,874.3 respectively. The former has risen by 16.4% over the past month, while the latter increased by 20%.

• Route Mobile's UK arm inks an exclusive partnership with Vodafone Idea for the latter's international application-to-person (A2P) SMS traffic for 24 months. Route will provide comprehensive A2P monetization solutions by deploying its artificial intelligence/machine learning-driven analytical firewall solution.

• Pyramid Technoplast's Rs 153.1 crore IPO gets bids for 0.82X the available 75.6 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.20X of the available 46.1 lakh shares on offer.

• Mahindra & Mahindra is falling as it receives a penalty order of Rs 14.3 lakh from the Joint Commissioner, CGST & Central Excise. The order is directed at its merged entity, Mahindra Vehicle Manufacturers, for availing incorrect input tax credit during the transition from the excise regime to the GST regime.

• Zhongrong International Trust reportedly hires KPMG to audit its balance sheet due to worsening liquidity concerns. The shadow bank has missed payments on numerous wealth management products and plans to undergo debt restructuring and asset sales after the review to repay its investors.

  Exclusive: Chinese $137 billion shadow banking giant Zhongzhi, whose cash crunch has fanned contagion fears, is planning to restructure its debt and hired KPMG for an audit https://t.co/7gHGXBklEg

  — Bloomberg Economics (@economics) August 17, 2023

• ICICI Securities downgrades Glenmark Pharmaceuticals to a 'Sell' from 'Reduce', with a target price of Rs 660 per share due to the stock's high valuation. The brokerage believes that improving demand in India, debt reduction, and increased sales in the Ryaltris segment will aid the company's net profit to grow at a CAGR of 36.5% over FY23-25.

• Shipping, paper & paper products, plastic products and footwear industries rise more than 3% in the past week.

• Foreign institutional investors invest Rs 6,108.9 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest investment of Rs 34,465.2 crore from foreign investors.

• Manappuram Finance is falling as reports suggest that 13 lakh shares of the company have changed hands in pre-market trade. The company features in a screener for stocks that have seen a decrease in Mutual Fund holdings in the past quarter.

• In its August bulletin, the RBI states that the possibility of stagflation in India is low at 3%, despite the recent surge in retail inflation. This is due to factors like easing financial conditions, stable INR/USD exchange rates, and steady domestic fuel prices.

  The Reserve Bank in its August bulletin said the risk of stagflation, a period of weak growth and high inflation, remains low in India despite a sharp uptick in priceshttps://t.co/oOi7TxNRKN

  — Mint (@livemint) August 18, 2023

• Sula Vineyards rises as visitor attendance surged at the Nashik and Bengaluru wine tourism facilities from August 12-14. During this extended weekend, its wine tourism operations generated revenue of Rs 2.1 crore, marking a 40% increase from the previous three-day record.

• Adani Green Energy, Adani Power and Adani Transmission are rising as Abu Dhabi International Energy Company (TAQA) plans to invest $2.5 billion (approximately Rs 20,773 crore) in Adani Group's power businesses, according to reports.

• Yatharth Hospital & Trauma Care Services surges as its Q1FY23 net profit rises by 73.1% YoY to Rs 190.4 crore and revenue increases by 39.1% YoY. Its EBITDA margin also improves by 368 bps YoY to 26.8%. The firm's Whole-Time Director, Yatharth Tyagi, says, "Our ongoing investments reflect a strategic approach to nurturing balanced future growth, exemplified by ongoing expansion efforts, both organic and inorganic."

• Jefferies maintains a 'Buy' rating on Finolex Cables while increasing the target price to Rs 1,270. The brokerage anticipates the communication industry to benefit from the 5G rollout and suggests a 5-15% import boost could offset optical fiber price erosion.

  Brokerage Radar | @Jefferies on Finolex Cables: Maintain 'Buy': Communication segment is likely to benefit from 5G rollout pic.twitter.com/3rofdPK0VC

  — ET NOW (@ETNOWlive) August 18, 2023

• IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro and LTIMindtree are falling in trade. All constituents of the broader Nifty IT index are also trading in the red.

• GMM Pfaudler is falling and hits a 52-week low of Rs 1,376 following reports of a 13% stake, equivalent to 58 lakh shares, changing hands in a block deal.

• Concord Biotech’s shares debut on the bourses at a 21.5% premium to the issue price of Rs 741. The Rs 1,551 crore IPO has received bids for 24.9 times the total shares on offer.

• Mayank Singhal, Vice-Chairman & MD of PI Industries, says that seasonal delays and irregular rains have caused a drop in domestic business. But he anticipates an improvement by Q2. He adds that the firm aims for double-digit domestic growth in FY24 and assures to maintain margins at the current levels.

  #OnCNBCTV18 | Seasonal delays & erratic rains led to a decline in domestic business, but should be in a better situation in the domestic markets by Q2. Looking at acquisition opportunities in various segments: Mayank Singhal of PI Industries says pic.twitter.com/c1FMywSyjh

  — CNBC-TV18 (@CNBCTV18Live) August 18, 2023

• Pyramid Technoplast raises Rs 27.6 crore from anchor investors ahead of its IPO by allotting 16.6 lakh shares at Rs 166 each. Investors include Carnelian Structural Shift Fund, Alchemie Ventures Fund-Scheme I, Pluris Fund and Resonance Opportunities Fund.

• Carborundum Universal inks an agreement with ideaForge Technology to jointly develop drone components using nanomaterial-reinforced composite materials such as graphene-reinforced polymers.

• South Indian Bank receives RBI approval to appoint P R Seshadri as the Managing Director and Chief Financial Officer. His appointment will take effect on October 1, 2023.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (994.75, 6.56%), Adani Power Ltd. (304.60, 6.30%) and Adani Transmission Ltd. (871.90, 6.04%).

Downers:

Largecap and midcap losers today include Gland Pharma Ltd. (1,568.70, -3.02%), Macrotech Developers Ltd. (696.00, -2.86%) and Bajaj Holdings & Investment Ltd. (6,943.20, -2.85%).

Movers and Shakers

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

Top high volume gainers on BSE included Vardhman Textiles Ltd. (362.05, 6.72%), Adani Green Energy Ltd. (994.75, 6.56%) and Lemon Tree Hotels Ltd. (102.15, 6.41%).

Top high volume losers on BSE were Manappuram Finance Ltd. (148.05, -3.89%), Aptus Value Housing Finance India Ltd. (271.20, -2.13%) and United Breweries Ltd. (1,519.30, -1.77%).

CSB Bank Ltd. (315.70, 4.45%) was trading at 14.4 times of weekly average. Aster DM Healthcare Ltd. (319.40, 4.91%) and Finolex Cables Ltd. (1,064.95, 3.57%) were trading with volumes 7.7 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks took off, crossing 52-week highs, while 3 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Bank of Maharashtra (38.45, -0.52%), Dr. Reddy's Laboratories Ltd. (5,874.45, -0.11%) and Emami Ltd. (528.60, 3.83%).

Stocks making new 52 weeks lows included - UPL Ltd. (578.45, -1.11%) and GMM Pfaudler Ltd. (1,509.15, -0.85%).

12 stocks climbed above their 200 day SMA including Network 18 Media & Investments Ltd. (63.50, 4.18%) and Ambuja Cements Ltd. (453.05, 1.58%). 10 stocks slipped below their 200 SMA including Page Industries Ltd. (40,106.70, -2.82%) and Aptus Value Housing Finance India Ltd. (271.20, -2.13%).