Trendlyne Marketwatch
Trendlyne Marketwatch
21 Sep 2023
Market closes lower, Axis Direct keeps its ‘Buy’ rating on PNC Infratech

Trendlyne Analysis

 

Nifty 50 closed at 19,742.35 (-159.1, -0.8%), BSE Sensex closed at 66,230.24 (-570.6, -0.9%) while the broader Nifty 500 closed at 17,303.50 (-145.9, -0.8%). Market breadth is highly negative. Of the 1,914 stocks traded today, 562 were on the uptick, and 1,309 were down.

Indian indices extended their losses from afternoon session and closed in the red, with the Nifty 50 closing at 19,742. The volatility index, Nifty VIX, dropped by 2.8% and closed at 10.8 points. Ipca Laboratories has acquired an additional 19.3% stake in Unichem Laboratories.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. Nifty Media and Nifty IT closed flat. All other major sectoral indices closed lower. According to Trendlyne’s sector dashboard, media emerged as the top-performing sector of the day, with a rise of over 0.6%.

Most European indices trade in the red except for the Swiss Market Index trading higher. US indices futures trade lower, indicating a negative start. US 10-year benchmark bond yields rose to a 15-year high of 4.4% post the Fed’s hawkish commentary on Wednesday.

  • Glenmark Pharmaceuticals sees a short buildup in its September 28 future series as its open interest rises 7.7% with a put-call ratio of 0.5.

  • Ipca Laboratories falls despite acquiring an additional 19.3% stake (1.4 crore shares) in Unichem Laboratories. The deal has been executed at an average price of Rs 440 per share, amounting to Rs 598 crore. The company appears in a screener of stocks with no debt.

  • Biocon falls despite its subsidiary, Biocon Biologics, receiving European Commission approval for the marketing of YESAFILI. The drug is used for the treatment of neovascular degeneration and has an annual sales of $ 1.8 billion (approx. Rs 14,964 crore) in the European Union. The company appears in a screener of stocks with improving cash flow from operations.

  • Morgan Stanley maintains its 'Overweight' rating on Zomato and hikes the target price to Rs 125. The brokerage believes that the platform fees charged by the company have received positive feedback from its user base. Over the next six quarters, Morgan Stanley expects the company to achieve an adjusted EBITDA margin of around 4-5% in the food delivery sector.

  • UPL is rising following reports that Citi has maintained its ‘Buy’ rating on the company, with a target price of Rs 800, implying an upside of 30% from the current market price. The brokerage believes that the improvement in agriculture production in the US and Latin America bodes well for the company as it derives a significant portion of its revenue from these two regions.

  • Mahindra & Mahindra is falling as its associate company, Resson Aerospace Corp, files for voluntary dissolution. Mahindra & Mahindra will receive approx 4.7 million canadian dollars upon liquidation.

  • A global sugar deficit is anticipated for the 2023-24 season starting in October. However, most trade organisations, industry groups, and the Indian government believe that domestic supplies will exceed demand. This outlook is expected to hold true even after accounting for ethanol diversion next year.

  • ICICI Securities upgrades its rating on Tech Mahindra to ‘Buy’ from ‘Sell’ and raises the target price to Rs 1,552 from Rs 910, indicating an upside of 19.9%. The brokerage believes that the company’s margins will improve in the coming quarters due to reduced subcontractor costs, divestment of non-strategic business, and an increase in offshore business. It is optimistic about the firm’s new CEO’s ability to drive growth.

  • Sai Silks (Kalamandir)'s Rs 1,201 crore IPO gets bids for 0.3X the available 3.9 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 0.3X the available 2 crore shares on offer.

  • Signatureglobal (India)'s Rs 730 crore IPO gets bids for 1.6X the available 1.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.5X the available 19.9 lakh shares on offer.

  • Jefferies predicts that Indian banks are likely to witness pressure on their NIMs (net interest margins) amid rising interest rates over the coming 2-3 quarters. The brokerage expects IndusInd Bank’s margins to remain near the current levels. It also notes that Axis Bank may see a compression of 10-15 bps, while ICICI Bank and SBI may see a compression of 30-40 bps.

  • KSB surges more than 5% in trade to touch its all-time high of Rs 3,084 per share. It ranks high on Trendlyne's checklist with a score of 69.6%. However, the company is in the 'Sell' zone and appears in a screener of stocks with improving return on equity (RoE) over the past two years.

  • BLS International Services is falling as the Indian government cancels visa services for Canadian nationals for an indefinite period of time, according to the company's website.

  • DCB Bank is rising as the Reserve Bank of India (RBI) approves HDFC Asset Management Company to acquire an aggregate 9.5% stake in the bank. The RBI has also given HDFC AMC a period of one year from the date of approval to complete the acquisition. The Centre has also granted HDFC AMC permission to acquire a 9.5% stake in Federal Bank.

  • Axis Direct keeps its ‘Buy’ rating on PNC Infratech with a target price of Rs 435, implying an upside of 18.5%. The brokerage remains positive about the company’s prospects due to its robust order book, better execution credentials, healthy balance sheet and focus on diversification. It expects the company’s standalone revenue to grow at a CAGR of 12.3% over FY23-25.

  • Shashank Srivastava, Executive Vice-President at Maruti Suzuki, expects strong monthly sales for the company in September. He believes that Maruti Suzuki is on track to accomplish its target of capturing a 25% market share in the SUV  segment by the end of FY24. He also notes that the PV market will grow by 5-7% in FY24.

  • Equitas Small Finance Bank rises as HDFC Asset Management Company gets RBI approval to acquire a 9.5% stake in the bank's paid-up equity capital or voting rights. It appears on a screener for stocks with high Piotroski Scores.

  • Auto stocks like Apollo Tyres, Mahindra & Mahindra, Tata Motors, Hero MotoCorp and Samvardhana Motherson International are falling in trade. Barring Cummins India, all other constituents of the broader sectoral index, BSE Auto, are also trading in the red.

  • Vijay Kedia converts a 5.3% stake in Atul Auto to equity from warrants on Wednesday. Following the transaction, his equity holding in the company stands at 18.2%.

  • EMS’ shares debut on the bourses at a 33.7% premium to the issue price of Rs 211. The Rs 321.3 crore IPO has received bids for 75.3 times the total shares on offer.

  • PSU banks like Indian Overseas Bank, UCO Bank, Bank of India and Bank of Maharashtra are rising in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

  • India’s domestic crude oil production rises by 2.1% YoY to 2.5 MMT (million metric tonnes) in August, according to data from the Oil Ministry. Meanwhile, crude oil imports have increased by 6.2% YoY.

  • Cipla is falling as the US FDA issues a Form 483 with five observations after conducting an inspection at the manufacturing facility of InvaGen Pharmaceuticals, a subsidiary of the company.

  • SJVN falls despite the Power Ministry selling up to a 2.5% stake (9.7 crore shares) via an offer for sale (OFS). The floor price of the OFS is set at Rs 69 per share, amounting to Rs 669.3 crore. The company appears in a screener of stocks with improving book value per share.

  • Karur Vysya Bank is rising as the Reserve Bank of India (RBI) gives HDFC AMC approval to acquire an aggregate 9.5% stake in the bank.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (382.45, 3.81%), Hindustan Petroleum Corporation Ltd. (263.45, 2.19%) and REC Ltd. (259.10, 1.89%).

Downers:

Largecap and midcap losers today include NHPC Ltd. (52.35, -5.68%), ICICI Prudential Life Insurance Company Ltd. (565.05, -3.94%) and Indian Railway Finance Corporation Ltd. (74.45, -3.56%).

Volume Shockers

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

Top high volume gainers on BSE included KSB Ltd. (3,122.35, 13.54%), KIOCL Ltd. (319.20, 4.26%) and Cholamandalam Financial Holdings Ltd. (1,200.00, 2.86%).

Top high volume losers on BSE were Anupam Rasayan India Ltd. (877.85, -5.07%), Ratnamani Metals & Tubes Ltd. (2,600.00, -2.21%) and Honeywell Automation India Ltd. (40,300.00, -0.81%).

Multi Commodity Exchange of India Ltd. (1,749.45, 1.74%) was trading at 5.1 times of weekly average. Nuvoco Vistas Corporation Ltd. (369.05, 1.01%) and JM Financial Ltd. (85.65, 1.42%) were trading with volumes 4.7 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Glenmark Pharmaceuticals Ltd. (827.70, -3.37%), Indian Bank (404.90, -2.47%) and Phoenix Mills Ltd. (1,830.00, 0.03%).

Stocks making new 52 weeks lows included - Delta Corp Ltd. (175.45, -0.79%) and Vedanta Ltd. (226.50, -2.29%).

2 stocks climbed above their 200 day SMA including Pidilite Industries Ltd. (2,517.00, 0.71%) and Atul Ltd. (7,096.40, -0.74%). 12 stocks slipped below their 200 SMA including Anupam Rasayan India Ltd. (877.85, -5.07%) and Sheela Foam Ltd. (1,128.10, -3.47%).

 
More from Trendlyne Marketwatch
More from Trendlyne Analysis
Recommended
Five Interesting Stocks Today - May 09, 2025
The Baseline | 09 May 2025, 04:56PM
Market closes lower, Intellect Design Arena's Q4 net profit surges 93% QoQ to Rs 135.3 crore
Trendlyne Marketwatch | 09 May 2025, 03:56PM
Markets close higher, Rakesh Jhunjhunwala buys a 2.2% stake in Indiabulls Housing Finance
Trendlyne Marketwatch | 22 Jul 2021