Trendlyne Marketwatch
Trendlyne Marketwatch
20 Sep 2023
Market closes lower, Axis Direct upgrades its rating on Tata Steel to ‘Buy’ from ‘Hold’

Trendlyne Analysis

Nifty 50 closed at 19,901.40 (-231.9, -1.2%) , BSE Sensex closed at 66,800.84 (-796, -1.2%) while the broader Nifty 500 closed at 17,449.35 (-164.3, -0.9%), of the 1,918 stocks traded today, 637 were in the positive territory and 1,244 were negative.

Indian indices extended their losses from the afternoon session and closed in the red, with the Nifty 50 falling 1.2% and settling at 19,901.4 points. The Indian volatility index, Nifty VIX, rose 2.7% and closed at 11.1 points. The Organisation for Economic Cooperation and Development (OECD) raised India’s GDP growth forecast for FY24 to 6.3% from its earlier estimate of 6%.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, taking cues from the benchmark index. Nifty Infra and Nifty FMCG closed lower than their Thursday close. According to Trendlyne's sector dashboard, Coal was the top-performing sector of the day as it rose 1% in a weak market.

Most European indices traded in the green, except for England’s FTSE 100 trading flat. However, major Asian indices closed in the red. US index futures traded marginally higher as investors awaited the US Fed’s interest rate decision, scheduled to be announced later today. Brent crude oil futures traded in the red after hitting a 10-month high of $95.9 per barrel on Tuesday.

  • Money flow index (MFI) indicates that stocks like Indian Overseas Bank, Central Bank of India, UCO Bank and HCL Technologies are in the overbought zone.

  • Escorts Kubota rises as its board of directors approves the incorporation of a wholly owned subsidiary as an NBFC. The proposed company will be incorporated with an authorised capital of Rs 700 crore, and the board has approved the infusion of capital up to Rs 200 crore. The company appears in a screener of stocks with no debt.

  • G R Infraprojects declines despite its subsidiary, GR Yamuna Bridge Highway, completing a concession agreement with the Ministry of Road Transport and Highways for the construction of a highway (Yamuna Bridge) in Uttar Pradesh, worth Rs 737.2 crore. It appears on a screener for stocks with increasing revenue for three consecutive quarters.

  • ABB India is rising as it enters a partnership with SMS Group to supply and install medium voltage motors and drives for ArcelorMittal Nippon Steel's hot strip mill in India.

  • Axis Direct upgrades its rating on Tata Steel to ‘Buy’ from ‘Hold’ and raises the target price to Rs 145 from Rs 125. This implies an upside of 12.8%. The brokerage turns positive about the company after the UK Government agreed to grant a 500-million-pound grant for the green transition of Tata Steel's Port Talbot facility. However, it expects the full impact of the transition to be known after negotiations with the employee union conclude.

  • Droneacharya Aerial Innovations rises more than 5% as it signs a franchise agreement with Switzerland’s Wollstone Capital SA for $2.7 million (Rs 23 crore). The company plans to set up 30 Remote Pilot Training Organizations (RPTOs) across India. This collaboration's major goal is to increase drone sales, services, and certified training.

  • Sai Silks (Kalamandir)'s Rs 1,201 crore IPO gets bids for 0.1X the available 3.9 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.1X the available 2 crore shares on offer.

  • Signatureglobal (India)'s Rs 730 crore IPO gets bids for 0.5X the available 1.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 19.9 lakh shares on offer.

  • The Organisation for Economic Cooperation and Development (OECD) raises India’s GDP growth forecast for FY24 to 6.3% from the earlier estimate of 6%.  It also revises the inflation projection to 5.3% from 4.8% earlier.

  • Yatra Online's Rs 775 crore IPO gets bids for 1.6X the available 3.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 2.1X the available 56.1 lakh shares on offer.

  • Ashok Buildcon is rising as it secures orders worth Rs 645.7 crore from Maharashtra State Electricity Distribution Co. The contracts involve the development of distribution infrastructure under the Revamped Distribution Sector Scheme to carry out energy loss reduction projects.

  • IIFL Finance is rising as HSBC initiates coverage with a ‘Buy’ rating and a target price of Rs 790. According to the brokerage, the company has strengthened its business by making strategic changes like enhanced liability management and stronger risk management. It believes that these changes will aid growth and improved earnings over FY23-26E.

  • Metal stocks like Jindal Stainless, JSW Steel, Vedanta, Jindal Steel & Power and Steel Authority of India are falling in trade. Barring Welspun Corp, all the other constituents of the broader sectoral index, Nifty Metal, are trading in the red.

  • ICICI Securities maintains its ‘Buy’ rating on Bharat Heavy Electricals and raises the target price to Rs 150 from Rs 120. This implies an upside of 20.1%. The brokerage believes that the company will be the key beneficiary of the Centre’s renewed focus on thermal capacity addition. It expects the firm’s revenue to grow at a CAGR of 18.3% over FY23-25.

  • Caplin Point Laboratories declines in trade despite its subsidiary, Caplin Steriles, receiving final approval from the USFDA for its Norepinephrine Bitartrate Injection USP. This injection recorded US sales of approximately $40 million (Rs 333 crore) for the 12-month period ending June 2023. It appears on a screener for stocks with high momentum scores.

  • SJVN is rising as it signs an MoU with Power Finance Corp for financial assistance to set up renewable energy and thermal power generation projects worth nearly Rs 1.2 lakh crore. The term loan is proposed at 70% of the project cost, which may increase for renewable energy projects based on project requirements.

  • Rakesh Sharma, Executive Director at Bajaj Auto, says the auto industry has witnessed an increase in demand since July, and it has been evenly distributed across urban and rural areas. He adds that the demand for exports has improved in Q2. However, Sharma warns that exports are under pressure due to rising inflation rates and currency devaluation, and anticipates a slower recovery in exports.

  • HDFC Bank is falling as its management expects its non-performing assets (NPAs) to rise and net interest margin (NIM) to contract, owing to the merger with HDFC.

  • Tata Motors is rising following its announcement of a 3% price increase for its commercial vehicles, effective from October 1. The company states that the price hike is to offset the residual impact of high input costs in the past few quarters.

  • R R Kabel’s shares debut on the bourses at a 14% premium to the issue price of Rs 1,035. The Rs 1,964 crore IPO has received bids for 18.7 times the total shares on offer.

  • Reliance Industries declines as reports suggest that 1.9 crore shares (0.3% equity), amounting to Rs 4,512 crore, change hands in a block deal.

  • Aurobindo Pharma's subsidiary, APL Healthcare, receives Form 483 from the US FDA with one observation. This comes after the US FDA performed inspections at the company's formulation manufacturing facility in Andhra Pradesh.

  • Sai Silks (Kalamandir) raises Rs 360.3 crore from anchor investors ahead of its IPO by allotting 1.6 crore shares at Rs 222 each. Investors include Societe Generale, Citigroup Global Markets Mauritius, BNP Paribas Arbitrage, SBI Mutual Fund, Whiteoak Capital, HDFC Mutual Fund and Mirae Asset India.

  • Signatureglobal (India) raises Rs 318.5 crore from anchor investors ahead of its IPO by allotting 82.7 lakh shares at Rs 385 each. Investors include Nomura Trust, Morgan Stanley, Societe Generale, Lion Global Investment Funds, Goldman Sachs, Quant Mutual Fund and Max Life Insurance Co.

  • Blue Star rises to an all-time high of Rs 836 as it opens its Rs 1,000 crore qualified institutional placement issue at a floor price of Rs 784.5. The company appears in a screener of stocks with strong momentum.

  • NBCC (India) is rising as it bags an order worth Rs 150 crore from the Khadi & Village Industries Commission. The contract involves designing and building office and residential structures across India.

Riding High:

Largecap and midcap gainers today include Au Small Finance Bank Ltd. (755.45, 3.62%), JSW Energy Ltd. (407.50, 3.44%) and Polycab India Ltd. (5,287.60, 2.97%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (43.85, -5.50%), HDFC Bank Ltd. (1,563.70, -4.01%) and Max Healthcare Institute Ltd. (554.15, -3.53%).

Movers and Shakers

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

Top high volume gainers on BSE included Blue Star Ltd. (907.30, 13.41%), Varroc Engineering Ltd. (493.90, 4.39%) and Au Small Finance Bank Ltd. (755.45, 3.62%).

Top high volume losers on BSE were Reliance Industries Ltd. (2382.15, -2.23%) and Alembic Pharmaceuticals Ltd. (776.35, -0.89%).

Sheela Foam Ltd. (1,168.65, 1.70%) was trading at 4.6 times of weekly average. Mahindra & Mahindra Financial Services Ltd. (309.50, 2.67%) was trading with volume 4.2 times weekly average on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks made 52 week highs, while 1 stock tanked below their 52 week lows.

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (776.35, -0.89%), Axis Bank Ltd. (1,027.30, 0.25%) and Balkrishna Industries Ltd. (2,543.00, 0.64%).

Stock making new 52 weeks lows included - Orient Electric Ltd. (215.35, -2.36%).

3 stocks climbed above their 200 day SMA including Sheela Foam Ltd. (1,168.65, 1.70%) and Aavas Financiers Ltd. (1,673.00, 0.54%). 9 stocks slipped below their 200 SMA including SRF Ltd. (2,319.85, -2.06%) and Ambuja Cements Ltd. (428.15, -1.95%).

 
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