Trendlyne Marketwatch
Trendlyne Marketwatch
06 Sep 2023
Market closes higher, HDFC Securities upgrades its rating on Mahanagar Gas to ‘Buy’

Trendlyne Analysis

Nifty 50 closed at 19,611.05 (36.2, 0.2%) , BSE Sensex closed at 65,880.52 (100.3, 0.2%) while the broader Nifty 500 closed at 17,284.60 (32.5, 0.2%), of the 1,932 stocks traded today, 975 were in the positive territory and 918 were negative.

Indian indices recovered from their day lows and closed marginally higher, with the Nifty 50 rising above the 19,600 mark. The Indian volatility index, Nifty VIX, fell 1.3% and closed at 10.7 points. Syrma SGS Technology rose 4.5% and hit its all-time high after the company acquired a 51% stake in Johari Digital Healthcare for Rs 229.5 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index closing in the green. Nifty FMCG and Nifty Pharma closed higher than their Tuesday close. According to Trendlyne's sector dashboard, Fertilizers was the top-performing sector of the day as it rose 6.1%.

Major European indices traded in the red. Asian indices closed flat or lower, except for India’s BSE Sensex and Japan’s Nikkei 225 index, which closed in the green. US index futures traded lower, indicating a negative start to the trading session.

  • Lupin sees a long buildup in its September 28 future series as its open interest rises 16.5% with a put-call ratio of 0.8.

  • Tata Consumer Products rises as reports suggest that it may acquire at least 51% stake in Haldiram's. Haldiram's expects a valuation of $10 billion (Rs 83,142.8 crore) for this acquisition, which Tata Consumer Products deems too high. The company appears in a screener of stocks with low debt.

  • HDFC Securities upgrades its rating on Mahanagar Gas to ‘Buy’ from ‘Add’ and raises the target price to Rs 1,210 from Rs 1,170. This implies an upside of 12.6%. The brokerage believes that the stock is trading at an attractive valuation. It also expects the company to maintain peer-leading margins and witness volume growth.

  • Syrma SGS Technology rises to an all-time high of Rs 588 as it acquires a 51% stake in Johari Digital Healthcare for Rs 229.5 crore. This acquisition will expand Syrma SGS's offerings in the field of electro-medical devices. The company appears in a screener of stocks with low debt.

  • JM Financial touches its 52-week high as 1.28 crore shares (1.34% equity), amounting to Rs 116.8 crore, reportedly change hands in a large trade.

  • ICICI Securities maintains its ‘Buy’ rating on Five-Star Business Finance with a target price of Rs 860, implying an upside of 20.2%. The brokerage is optimistic about the firm’s prospects due to healthy growth in its assets under management, robust underwriting process and focus on branch expansion. It expects the company’s net profit to grow at a CAGR of 26% over FY23-25.

  • Jupiter Life Line Hospitals' Rs 869.1 crore IPO gets bids for 0.9X the available 85 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.1X the available 42.9 lakh shares on offer.

  • Ratnaveer Precision Engineering's Rs 165 crore IPO gets bids for 94X the available 1.2 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 54X the available 58.9 lakh shares on offer.

  • Sanjay Agarwal, Managing Director of AU Smal Finance Bank, anticipates the bank’s deposits to increase by around 25-27% and assets to grow around 26-27% in FY24. He adds that its NIM will likely improve in the next 12-18 months as the interest rate cycle turns.

  • SpiceJet surges as it allots 3.4 crore equity shares and 13.1 crore warrants to its promoter, Spice Healthcare, on a preferential basis.

  • Tata Power's subsidiary, Tata Power Renewable Energy, partners with Tata Motors to develop a 12 MWp solar project at Tata Motors CVBU (Commercial vehicle) manufacturing facility in Pune. This 12 MWp will add to the existing 8.7 MWp, resulting in a total of 20.7 MWp.

  • Sugar companies like Shree Renuka Sugars, EID Parry, Balrampur Chinni Mills and Triveni Engineering & Industries are rising. The broader sugar industry is also trading in the green.

  • Padam Kumar Jain, the CFO & Whole Time Director of Sarda Energy & Minerals, says that long steel demand has been high, with current prices over Rs 3,000 per tonne. Pellet prices have also rebounded to Rs 10,300 per tonne. He adds that their hydropower plant's EBITDA will range between Rs 240 core and Rs 250 crore in FY24.

  • Life Insurance Corporation of India, United Spirits, Page Industries, Syngene International and Voltas are trading above their third resistance or R3 levels, despite market trading in the red.

  • Best Agrolife rises as its subsidiary, Seedlings India, receives a 20-year patent from the government for a synergistic pesticidal composition effective against fungal diseases in rice crops. The company appears in a screener of stocks with improving RoA.

  • ICICI Prudential Mutual Fund sells 14.5 lakh shares (2.2% stake) of LIC Housing Finance on September 4, 2023.

  • RBI Governor Shaktikanta Das says the central bank remains focused on bringing down inflation to 4%. He highlights that CPI inflation, which reached 7.4% in July, has started to moderate.

  • ABB India is rising as Jefferies reportedly keeps its ‘Buy’ rating on the company with a target price of Rs 5,260, indicating an upside of 23%. The brokerage expects an increase in order inflows and execution. The company shows up in a screener for stock with consistently high returns over the past five years.

  • Bikaji Foods International rises as Plutus Wealth Management purchases a 0.5% stake (13.5 lakh shares) at an average price of Rs 480.1 per share for Rs 64.8 crore. However, Lighthouse India Fund III sells a 1.3% stake (32.4 lakh shares) at an average price of Rs 480 per share, amounting to Rs 155.6 crore. The company appears in a screener of stocks with increasing FII/FPI shareholding.

  • Jio Financial Services is falling as NSE announces that it will be removed from the NSE indices, including the Nifty 50, starting from September 7, 2023.

  • Motilal Oswal maintains its ‘Buy’ rating on Voltas with a target price of Rs 1,000. The brokerage believes that the company’s EMPS (electro-mechanical project & services) division has rebounded, driven by a solid order book. It expects the RAC (room air conditioners) segment's market share to be in the range of 21-22% for FY24/25.

  • Vedanta is rising as the Zambian government reportedly agrees to return ownership of the Konkola copper mines to Vedanta Resources. This resolution comes after a four-year-long legal battle between the company and ZCCM Investments Holding, a Zambian government-owned entity, regarding the ownership of the mining complex. The mines have an estimated 16 million tonnes of copper reserves.

  • Metal stocks like APL Apollo Tubes, Hindalco Industries, Jindal Steel & Power, NMDC and National Aluminium Co are falling in trade. Barring Vedanta, all the other constituents of the broader sectoral index, BSE Metal, are trading in the red.

  • Power Grid Corporation of India rises as it bags an order for an inter-state transmission project in Rajasthan. The project includes building, owning, operating and transferring the transmission system for power evacuation from a renewable energy zone in Rajasthan. The company appears in a screener of stocks with strong momentum.

  • NBCC (India) signs an MoU with the Kerala State Housing Board to develop a 17.9-acre land parcel in Kochi. The project is worth Rs 2,000 crore. The stock shows up in a screener for companies with book value per share improving over the past two years.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (10.65, 7.58%), Petronet LNG Ltd. (244.90, 6.87%) and Adani Energy Solutions Ltd. (855.95, 5.22%).

Downers:

Largecap and midcap losers today include Indian Railway Finance Corporation Ltd. (68.75, -4.84%), Dixon Technologies (India) Ltd. (4,998.15, -2.52%) and Aditya Birla Capital Ltd. (186.70, -2.46%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included EID Parry (India) Ltd. (522.25, 8.00%), JK Paper Ltd. (398.00, 7.00%) and KRBL Ltd. (435.30, 6.98%).

Top high volume losers on BSE were SIS Ltd. (462.10, -1.63%), ZF Commercial Vehicle Control Systems India Ltd. (15,170.15, -1.17%) and Aavas Financiers Ltd. (1,632.00, -0.29%).

Adani Energy Solutions Ltd. (855.95, 5.22%) was trading at 8.3 times of weekly average. SKF India Ltd. (5,285.00, 0.64%) and Castrol India Ltd. (155.20, 4.16%) were trading with volumes 6.9 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

50 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Bharat Forge Ltd. (1,099.00, 0.15%), Caplin Point Laboratories Ltd. (1,093.10, -1.88%) and Castrol India Ltd. (155.20, 4.16%).

16 stocks climbed above their 200 day SMA including EID Parry (India) Ltd. (522.25, 8.00%) and Petronet LNG Ltd. (244.90, 6.87%).

 
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