Trendlyne Analysis

Nifty 50 closed at 19,444.00 (47.6, 0.3%), BSE Sensex closed at 65,433.30 (213.3, 0.3%) while the broader Nifty 500 closed at 16,950.25 (45, 0.3%). Of the 1,934 stocks traded today, 1,098 were in the positive territory and 779 were negative.

Indian indices maintained their gains from the afternoon session and closed in the green, with the Nifty 50 closing at 19,444. The volatility index, Nifty VIX, dropped by 0.2% and closed at 11.7 points. Jio Financial Services' promoters acquire a 45.8% stake (291 crore shares) in the company under the scheme of arrangement between Reliance Industries and its shareholders.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Bank closed higher, compared to Tuesday’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 5.9%. 

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. The data released by S&P Global indicates that the UK’s composite PMI for August has contracted to 47.9, against the estimates of 50.3. UK’s composite PMI for July stood at 50.8.

• Relative strength index (RSI) indicates that stocks like Apar Industries, Escorts Kubota, REC and BLS International Services are in the overbought zone.

• According to a survey of economists, India’s GDP is expected to grow by 7.8% in Q1FY24, compared to 6.1% in Q4FY23, driven by factors like robust domestic demand and government investments.

  #GDP growth: Indian economy likely grew 7.8% in Q1 FY24, say economists
  
  This GDP growth will be a step up from the 7.2% growth in the previous fiscal year and the 6.1% growth in the preceding March quarter.https://t.co/IM7QipNtP5

  — The Times Of India (@timesofindia) August 23, 2023

• Atul Auto and Hindustan Aeronautics touch their 52-week highs of Rs 453.45 and Rs 4,049.9 respectively. The former has risen 17.9% over the past month, while the latter increased by 3.3%.

• JB Chemical & Pharmaceuticals rises as it receives US FDA approval for its abbreviated new drug application (ANDA) for Doxepin Hydrochloride capsules. The drug is used for the treatment of anxiety, depression and other target symptoms of psychoneurosis. The company appears in a screener of stocks nearing 52-week high.

• Aeroflex Industries' Rs 351 crore IPO gets bids for 21.1X the available 2.3 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 17.78X of the available 1.2 crore shares on offer.

• PSU Banks like UCO Bank, Punjab & Sind Bank, Bank of Maharashtra and Central Bank of India are rising in trade. All constituents of the broader Nifty PSU Bank are also trading in the green.

• Goldman Sachs says that the IT sector’s revenue is expected to grow by 9-10% YoY from FY25, driven by increased demand for IT services and the tailwinds from adopting Generative AI. The brokerage has initiated coverage on LTIMindtree, Infosys and TCS with a ‘Buy’ rating.

  A revival in India’s $245-billion IT sector is only a matter of time as the services outsourcing is essential spending, says #GoldmanSachs.@tds19 reports.https://t.co/qEDACfBH7e

  — BQ Prime (@bqprime) August 23, 2023

• Shriram Properties (SPL) rises as Omega Holdings sells a 2.3% (39,00,000 shares) stake in the company at an average price of Rs 78.4 per share, amounting to Rs 30.6 crore. SPL & ASK Property Fund have announced a joint investment of Rs 206 crore for 100% development rights of a project in Chennai, through SPL's subsidiary Shrivision Elevations. The company appears in a screener of stocks with strong momentum.

• ICICI Direct keeps its ‘Buy’ rating on Mahindra Lifespace Developers with a target price of Rs 650, implying an upside of 22.9%. The brokerage is positive about the firm’s prospects due to its launch pipeline, focus on improving scalability and healthy balance sheet.  It expects the company’s revenue to grow at a CAGR of 42.5% over FY23-25.

• Himadri Speciality Chemicals surges to an all-time high of Rs 190.9 following its partnership with Dalmia Bharat Refractories. This partnership aims to engage in the corporate insolvency resolution process of Birla Tyres. The company appears in a screener of stocks with strong annual EPS growth.

• Joi Financial Services' promoters acquire a 45.8% stake (291 crore shares) in the company under the scheme of arrangement between Reliance Industries and its shareholders. This coincides with the stock's continued plunge for a second consecutive session. The stock is also in danger of being removed from all BSE indices from August 29. However, if it falls for two more consecutive days, the removal will be delayed by another three days. The exclusion comes as the stock hits the lower circuit for two consecutive sessions after an underwhelming listing on Monday.

• Hindalco Industries rises following an announcement during the annual general meeting that the company plans to invest up to Rs 2,000 crore to set up a first-of-its-kind copper and e-waste recycling unit in India. It appears in a screener for stocks with strong momentum.

• VD Nanavaty, the Executive Director (Finance) & CFO of Gujarat State Fertilizers & Chemicals, expects volume growth of 15-120% in its fertilizer segment. He adds that the company will commission a new factory in FY24, followed by three more in the next year, with a capex lineup of Rs 4,000 crore. He highlights that the caprolactam benzene spreads are expected to be in the $800 range.

  #OnCNBCTV18 | Expect caprolactam benzene spreads to be in the $800 range. Govt was liberal on the subsidy front last year, they are reducing subsidies now, says VD Nanavaty of GSFC pic.twitter.com/rkzSPaa7HG

  — CNBC-TV18 (@CNBCTV18Live) August 23, 2023

• Vodafone Idea rises as reports suggest that the company plans to clear approx Rs 2,400 crore dues to the government by September 2023.

• Larsen & Toubro hits a record high as its arm, L&T Construction, wins orders worth Rs 2,500-5,000 crore from the Middle East. The order involves establishing a gas-insulated substation and associated transmission lines in the United Arab Emirates, and setting up two new substations in Dubai and four in Kuwait.

• According to credit rating agency Crisil Ratings, the Indian footwear industry’s revenue is expected to grow by 11% in FY24, driven by higher realisations, with a 4% volume growth. It also anticipates operating margins to expand by 125 bps to 9%, supported by the moderation in raw material prices.

  Footwear industry revenue is striding ~11 per cent ahead this fiscal year on higher realisations with volume up ~4 per cent, said an analysis by CRISIL Ratings (@CRISILLimited ).https://t.co/SVKWEsKoLw

  — Financial Express (@FinancialXpress) August 23, 2023

• Metal stocks like Hindalco Industries, NMDC, APL Apollo Tubes, National Aluminium Co and Tata Steel are rising in trade. All the constituents of the broader sectoral index, BSE Metal, are also trading in the green.

• Reliance Industrial Investments and Holdings, promoter of Reliance Industries, buys a 3.6% stake in the company on Tuesday.

• TVS Supply Chain Solutions’ shares debut on the bourses at a 5.1% premium to the issue price of Rs 197. The Rs 880 crore IPO has received bids for 2.8 times the total shares on offer.

• JP Morgan maintains its 'Neutral' rating on Tata Motors with a target price of Rs 635. The brokerage believes the firm has outperformed its peers in the USA and China but underperformed in Europe. The brokerage says that their product mix remains healthy at over 80%.

  Brokerage Radar | JPMorgan on Tata Motors: Maintain Neutral; JLR outperforms peers in the U.S. and China, underperforms in Europe pic.twitter.com/GPpB41b8w1

  — ET NOW (@ETNOWlive) August 23, 2023

• Linde India rises to an all-time high of Rs 6,165 as it bags an order from the Indian Oil Corporation (IOCL) for 20 years. The order involves the installation, operation and maintenance of an air separation unit. This unit will be responsible for the production and supply of instrument air, plant air and cryogenic nitrogen to the IOCL Panipat Refinery Expansion Project. The company appears in a screener of stocks with improving cash flow from operations.

• Rites is rising as its bags an order worth Rs 65.4 crore from the Railway Board for testing and inspecting rails for the Indian Railways. The stock shows up in a screener for companies with no debt.

• BEML rises to an all-time high of Rs 2,183.7 as it bags an order worth Rs 101 crore from the Ministry of Defense. The order involves the supply of command post vehicles to the army. The company appears in a screener of stocks with improving RoCE.

• The Securities and Exchange Board of India (SEBI) reportedly bars Brightcom Group’s Chairman and CEO, Suresh Kumar Reddy, and its CFO, Narayan Raju, from participating in company boards due to fraud and alleged misrepresentation of financial statements. They are also not allowed to dispose of their shares in Brightcom until further notice.

Riding High:

Largecap and midcap gainers today include One97 Communications Ltd. (904.75, 5.53%), Federal Bank Ltd. (141.70, 4.15%) and Crompton Greaves Consumer Electricals Ltd. (308.90, 3.64%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (890.40, -7.26%), Adani Power Ltd. (322.85, -7.07%) and Adani Enterprises Ltd. (2,530.30, -6.22%).

Movers and Shakers

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

Top high volume gainers on BSE included MMTC Ltd. (43.50, 10.13%), Alok Industries Ltd. (18.45, 8.21%) and Jubilant Ingrevia Ltd. (476.15, 7.68%).

Top high volume losers on BSE were Borosil Renewables Ltd. (430.40, -3.86%), Poly Medicure Ltd. (1,411.35, -1.88%) and Endurance Technologies Ltd. (1,629.70, -0.80%).

CESC Ltd. (83.85, 6.82%) was trading at 13.9 times of weekly average. Hitachi Energy India Ltd. (4,600.00, 3.40%) and Global Health Ltd. (708.40, 2.14%) were trading with volumes 9.9 and 9.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

51 stocks took off, crossing 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - 3M India Ltd. (3,0240.00, 2.23%), Bank of Maharashtra (39.65, 3.93%) and Bharat Electronics Ltd. (133.40, 0.08%).

Stock making new 52 weeks lows included - Easy Trip Planners Ltd. (39.05, 4.13%).

18 stocks climbed above their 200 day SMA including Jubilant Ingrevia Ltd. (476.15, 7.68%) and Quess Corp Ltd. (420.80, 4.74%). 1 stock slipped below their 200 SMA including Adani Enterprises Ltd. (2,530.30, -6.22%).