Trendlyne Marketwatch
Trendlyne Marketwatch
31 Aug 2023
Market closes lower, Rishabh Instruments' Rs 490.8 crore IPO gets bids for 2.5X of shares

Trendlyne Analysis

Nifty 50 closed at 19,253.80 (-93.7, -0.5%), BSE Sensex closed at 64,831.41 (-255.8, -0.4%) while the broader Nifty 500 closed at 16924.30 (-44.7, -0.3%). Market breadth is horizontal. Of the 1,925 stocks traded today, 946 were gainers and 927 were losers.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,254. The volatility index, Nifty VIX, rose by 2.2% and closed at 12.1 points. According to a Reuters poll of economists, India’s GDP in Q1FY24 is expected to have grown at 7.7%.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher with the benchmark index closing in the red. Nifty Realty and Nifty IT closed higher, compared to Wednesday’s closing levels. According to Trendlyne’s sector dashboard, telecommunication equipment emerged as the top-performing sector of the day, with a rise of over 2.6%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. The data released by Eurostat indicated that the Eurozone’s CPI in August increased by 5.3% against the estimates of 5.1%.

  • Relative strength index (RSI) indicates that stocks like Solar Industries India, Escorts Kubota, Archean Chemical Industries and Suzlon Energy are in the overbought zone.

  • Maruti Suzuki rises to its all-time high of Rs 10,065 per share. It ranks high on Trendlyne's checklist with a score of 78.3%. The stock is in the Buy zone according to the time spent below its current PE. It has a 'Buy' consensus from 28 out of 38 analysts. The company appears in a screener of stocks with strong growth in its annual EPS.

  • Zydus Lifesciences receives final approval from the US FDA for its isotretinoin capsules. The capsule is a generic version of the reference listed drug, accutane capsules and is used in the treatment of severe cystic acne. The drug has an estimated annual sales of $165 million for the year ended July 2023, according to IQVIA.

  • BLS International Services and Welspun India touch their 52-week highs of Rs 296.4 and Rs 127.8 respectively. The former has risen 19.5% over the past month, while the latter increased by 11.1%.

  • Nazara Technologies is rising as it announces that it is considering raising funds through the issuance of equity shares on a preferential basis. The stock shows up in a screener for companies with zero promoter pledges.

  • HDFC Securities upgrades its rating on BSE to ‘Buy’ from ‘Add’ and raises the target price to Rs 1,230 from Rs 940, implying an upside of 18.1%. The brokerage turns positive about the company’s prospects on the back of the success in the derivatives segment led by the launch of a weekly options contract in May. It expects the firm’s market share in the derivatives segment to reach 10% by the end of FY24 from 3.4% currently.

  • Rishabh Instruments' Rs 490.8 crore IPO gets bids for 2.5X the available 77.9 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 2.8X the available 39 lakh shares on offer.

  • Sula Vineyards is falling as reports suggest that 1.1 crore shares (13.1% equity), amounting to approximately Rs 540 crore, have changed hands in a block deal. Verlinvest Asia Pte is the likely seller in the transaction.

  • According to reports, companies like Colgate-Palmolive, Jubilant Foodworks (Domino's Pizza), Castrol India and Mastek are facing GST claims aggregating Rs 30,000 crore from their respective states. The GST comes on account of transfer of intellectual property rights (IPR) which attracts 18% GST and is currently issued to 200 companies.

  • Natco Pharma rises as it acquires 5.8% stake in USA's ISCA for a cash consideration of $2 million (Rs 16.5 crore). The objective of this acquisition is investment for biocontrol of pests. The company appears in a screener of stocks with high TTM EPS growth.

  • Zee Entertainment Enterprises is falling as the National Company Law Appellate Tribunal (NCLAT) sets October 11 as the date to hear IDBI Bank's plea against the company.

  • Vijay Kedia buys a 1.7% stake in Atul Auto today for approx Rs 19.4 crore through market purchase.

  • IT stocks like Persistent Systems, Coforge, Mphasis, L&T Technology Services and LTIMindtree are rising in trade. All the constituents of the broader sectoral index, Nifty IT, are also trading in the green.

  • Rajendra V Gogri, CMD of Aarti Industries, says that demand is increasing across products and he expects Q2FY24 volumes to grow by 10% QoQ. He adds that the topline growth of the company in FY24 will be similar to FY23, but is positive that it will improve significantly in FY25.

  • Ajanta Pharma falls despite receiving final US FDA approval to market Topiramate Extended-Release Capsules in varying strengths (25 mg, 50 mg, 100mg and 200mg). The drug is used in treating seizures and has a market size of  $175 million in the United States. The company appears in a screener of stocks with improving net cash flow.

  • Zen Technologies rises in trade as it bags an order from Ministry of Defense worth Rs 72.3 crore for implementing the Framework on Simulators that the Government released in September 2021. It appears on a screener for stocks with strong momentum.

  • Aeroflex Industries’ shares debut on the bourses at a 75.9% premium to the issue price of Rs 108. The Rs 351 crore IPO has received bids for 97.1 times the total shares on offer.

  • JP Morgan maintains its ‘Neutral’ rating on Maruti Suzuki with a target price of Rs 8,800. The brokerage keeps a watchful eye on positive catalysts and foresees its potential to outperform competitors in the next two months. It also anticipates robust wholesale volume figures, which will lead to an improvement in market share.

  • DCX Systems is rising following its announcement of entering into a joint venture with ELTA Systems, a subsidiary of Israel Aerospace Industries. The purpose of the joint venture is to develop, produce and distribute obstacle-detection solutions to the railways industry. The stock shows up in a screener for companies with high TTM EPS growth.

  • Tata Power Renewable Energy signs a power distribution agreement with Sanyo Special Steel Manufacturing India to set up a captive solar plant with a capacity of 28.1 MW. The plant is expected to produce 61.9 million units of electricity annually and is expected to be commissioned by March 2024.

  • SVF Growth (Singapore) sells a 1.2% stake in Zomato for approx Rs 947 crore in a bulk deal on Wednesday.

  • Medplus Health Services falls more than 8% today as 1.5 crore shares (12.8% equity), amounting to Rs 1,319 crore, change hands in a large trade, according to reports.

  • Quant Mutual Fund sells a 0.5% stake in Zee Entertainment Enterprises for approx Rs 128.4 crore in a bulk deal on Wednesday.

  • Adani Enterprises is falling as The Guardian reports that the Adani family allegedly invested in its own shares discreetly through multiple foreign accounts in Mauritius, based on documents obtained by the Organised Crime and Corruption Reporting Project (OCCRP).

  • Bharat Heavy Electricals rises to an all-time high of Rs 121.5 as it bags an order to set up a 2x800 MW Supercritical Thermal Power project in Chhattisgarh  from NTPC. The project involves civil and structural works for the engineering, procurement and construction (EPC) package and is expected to be commissioned in the next 4 years. The company appears in a screener of stocks with strong momentum.

  • Rail Vikas Nigam is rising as it emerges as the preferred bidder with a bid of Rs 256.2 crore at an auction held by Maharashtra Metro Rail Corp for multiple projects. The orders are for multiple metro stations and a multistoried building at Tulsi School Land.

Riding High:

Largecap and midcap gainers today include Gland Pharma Ltd. (1,741.45, 9.15%), CG Power and Industrial Solutions Ltd. (429.35, 4.87%) and Persistent Systems Ltd. (5,370.70, 3.56%).

Downers:

Largecap and midcap losers today include Torrent Pharmaceuticals Ltd. (1,842.50, -5.74%), Power Finance Corporation Ltd. (260.20, -4.64%) and Adani Green Energy Ltd. (928.65, -4.31%).

Volume Rockets

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

Top high volume gainers on BSE included Alok Industries Ltd. (19.85, 11.20%), NCC Ltd. (169.60, 10.20%) and Gland Pharma Ltd. (1,741.45, 9.15%).

Top high volume losers on BSE were Medplus Health Services Ltd. (811.40, -8.94%), Torrent Pharmaceuticals Ltd. (1,842.50, -5.74%) and Power Finance Corporation Ltd. (260.20, -4.64%).

Supreme Industries Ltd. (4,457.70, 1.16%) was trading at 18.4 times of weekly average. ACC Ltd. (2,005.75, 0.26%) and Cummins India Ltd. (1,707.75, -1.36%) were trading with volumes 17.4 and 17.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

46 stocks overperformed with 52 week highs, while 1 stock were underachiever and hit their 52 week lows.

Stocks touching their year highs included - Bharat Forge Ltd. (1,070.35, 1.25%), Bharat Heavy Electricals Ltd. (121.25, 2.15%) and Cera Sanitaryware Ltd. (9,520.00, 2.14%).

Stock making new 52 weeks lows included - Vedanta Ltd. (232.30, -1.78%).

9 stocks climbed above their 200 day SMA including Sterlite Technologies Ltd. (171.55, 3.44%) and Bajaj Electricals Ltd. (1,161.20, 2.38%). 11 stocks slipped below their 200 SMA including Hindustan Petroleum Corporation Ltd. (248.10, -3.73%) and Bharat Petroleum Corporation Ltd. (340.55, -3.24%).

 
More from Trendlyne Marketwatch
More from Trendlyne Analysis
Recommended
Five stocks to buy from analysts this week - May 20, 2025
The Baseline | 20 May 2025, 05:40PM
Market closes lower, Hindalco Industries's Q4 net profit beats Forecaster estimates by 24%
Trendlyne Marketwatch | 20 May 2025, 04:00PM
Markets close higher, Rakesh Jhunjhunwala buys a 2.2% stake in Indiabulls Housing Finance
Trendlyne Marketwatch | 22 Jul 2021