Trendlyne Marketwatch
Trendlyne Marketwatch
04 Jun 2024
Market closes lower, Amber Enterprises reportedly plans a Rs 2,000 crore investment
By Trendlyne Analysis

 

Nifty 50 closed at 21,884.50 (-1,379.4, -5.9%), BSE Sensex closed at 72,079.05 (-4,389.7, -5.7%) while the broader Nifty 500 closed at 20,323.85 (-1,473.6, -6.8%). Market breadth is overwhelmingly negative. Of the 2,148 stocks traded today, 113 were in the positive territory and 2,022 were negative.

Indian indices closed deep in the red as investors looked ahead to the outcome of the general elections. The Indian volatility index, Nifty VIX, surged by 25.7% and closed at 26.3 points. Defence stocks like Bharat Electronics, Hindustan Aeronautics, Mishra Dhatu Nigam, and Mazagon Dock Shipbuilders fell sharply. The fall in defence stocks is due to the expectation that a coalition government may have less consensus on border issues and the China threat as the BJP falls short of a single party majority in the Lok Sabha elections.

Nifty Smallcap 100 and Nifty Midcap 100 close sharply lower, taking cues from the benchmark index. Nifty FMCG was the only sectoral Nifty index to close in the green. Nifty Infra and Nifty Bank closed sharply lower. According to Trendlyne’s sector dashboard, FMCG emerged as the best-performing sector of the day, with a rise of 3.5% in a weak market.

Major Asian indices trade in the red, except for Hong Kong’s Hang Seng index closing higher. European indices traded in the red, amid weak global cues. US index futures traded lower, indicating a cautious start to the trading session. Brent crude oil futures traded in the red for a fifth trading session.

  • Relative strength index (RSI) indicates that stocks like Rail Vikas Nigam, Adani Power, Bharat Electronics, and KNR Constructions are in the overbought zone.

  • Canara Bank's board approves diluting its 14.5% stake in its subsidiary Canara HSBC Life Insurance Co through an IPO.

  • KR Choksey downgrades Ashok Leyland to 'Accumulate' with a higher target price of Rs 243 per share. This indicates a potential upside of 15.3%. The brokerage revises its rating on the stock due to the recent run-up in the share price and a modest upside from current levels. It expects the company's revenue to grow at a CAGR of 10.5% over FY25-26.

  • Reliance Industries' subsidiaries complete the registration of sub-lease agreements for roughly 3,750 acres of land, including development rights, for 43 years. The deal, valued at Rs 13,400 crore, involves land obtained from Navi Mumbai IIA, in which City and Industrial Development Corporation (CIDCO) holds a 26% stake. The sub-leased land will be used to develop an integrated industrial area.

  • Kalyan Jewellers India is set to acquire the remaining 15% stake in its arm Enovate Lifestyles (Candere) for Rs 42 crore. The company acquired a majority stake in Candere in 2017 to enter the online jewellery market.

  • Defence stocks like Bharat Electronics, Hindustan Aeronautics, Mishra Dhatu Nigam, and Mazagon Dock Shipbuilders are falling in trade. The fall is due to the expectation that a coalition government may have less consensus on border issues and the China threat as the BJP falls short of a single party majority in the Lok Sabha elections.

  • Kronox Lab Sciences' Rs 130.2 crore IPO gets bids for 19.1X the available 67 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 20.8X the available 33.5 lakh shares on offer.

  • Amber Enterprises reportedly plans to invest Rs 2,000 crore to set up a printed circuit board manufacturing facility in India.

  • FMCG stocks like Hindustan Unilever, Nestle India, Godrej Consumer Products, Britannia Industries, and Dabur India are rising in trade. The rise is due to an expectation of a more welfare-oriented populist government, which will boost demand for FMCG products in rural areas.

  • Adani group stocks like Adani Enterprises, Adani Ports & SEZ, Adani Energy Solutions, and Adani Green Energy plunge more than 15% in trade as the BJP falls short of a single party majority in the Lok Sabha elections.

  • Porinju Veliyath sells a 0.2% stake in Kaya on Friday. He now holds a 10.9% stake in the company.

  • Punjab National Bank signs an agreement with Indian Infrastructure Finance Co (IIFCL) to provide long-term financial assistance for infrastructure projects.

  • Crude oil prices fall as the market projects a potential rise in global supply towards the end of 2024. July crude oil futures on WTI (West Texas Intermediate) stand at $73.56, down by 0.9%, and August Brent oil futures at $77.75, down by 0.8%. In addition, OPEC+ announces a production output cut of approx 5.8 million barrels per day until 2025.

  • Sasken Technologies' CEO Abhijit Kabra tenders his resignation, effective from June 3. The company appoints CMD Rajiv C. Mody as his successor.

  • Zee Entertainment Enterprises' board is set to meet on June 6 to consider raising funds by issuing equity shares and any other eligible securities through permissible modes like private placement, qualified institution placement, preferential issue, etc.

  • Infosys enters a partnership with Nihon Chouzai, a Japanese dispensing pharmacy chain, to expand healthcare access in Japan with enhanced online medication guidance services and payment solutions.

  • Bajaj Finance’s wholly-owned subsidiary, Bajaj Housing Finance’s board is set to meet on Thursday to approve an initial public offer, consisting of a fresh issue and an offer for sale.

  • MOIL's manganese ore sales rise 41% YoY in May, reaching a record 2.1 lakh tonnes.

  • Prabhudas Lilladher retains its 'Buy' call on Apollo Hospitals Enterprises with a target price of Rs 7,050 per share. This indicates a potential upside of 19.5%. The brokerage believes that the stake sale in HealthCo to Advent and the merger with Keimed will create an integrated pharmacy distribution business, boosted by a fast-growing omni-channel digital health business. It expects the company's revenue to grow at a CAGR of 9.7% over FY25-26.

  • MphasiS is rising as it enters a partnership with Classiq to commercialise industry solutions powered by Quantum. The company aims to speed up the adoption of quantum solutions for enterprises by integrating them into its operations.

  • JM Financial expects telecom companies’ ARPU (average revenue per user) to grow at 10-12% CAGR, and reach Rs 270-300 in the next 3-4 years. The brokerage has a ‘Buy’ rating on Bharti Airtel and Bharti Hexacom, and a 'Sell' rating on Vodafone Idea.

  • PSU bank stocks like Bank of Baroda, Indian Bank, Canara Bank and Central Bank of India fall more than 6% in trade. All constituents of the broader Nifty PSU Bank index are also trading in the red, causing the index to plunge more than 5%.

  • Biocon gets US FDA approval for Micafungin, used as an antifungal medication to treat fungal or yeast infections. The drug has an approximate market size of $330 million annually in the US.

  • Mahindra & Mahindra Financial Services' total disbursements grow 7% YoY to Rs 4,430 crore in May 2024. Business assets improve 23% YoY to Rs 1.1 lakh crore with a coefficient efficiency of 96%.

  • Rail Vikas Nigam bags an order worth Rs 440 crore from South Central Railway for the engineering, procurement, and construction of a doubling track for the Aurangabad-Ankai Doubling Project.

  • Indian markets slumped today. Nifty 50 was trading at 22,851.35 (-412.6, -1.8%), BSE Sensex was trading at 75,026.85 (-1,441.9, -1.9%) while the broader Nifty 500 was trading at 21,434.15 (-363.3, -1.7%).

  • Market breadth is highly negative. Of the 1,933 stocks traded today, 234 were on the uptick, and 1,647 were down.

Riding High:

Largecap and midcap gainers today include Dabur India Ltd. (578.20, 6.1%), Hindustan Unilever Ltd. (2,496.30, 6.0%) and Avenue Supermarts Ltd. (4,548.75, 4.6%).

Downers:

Largecap and midcap losers today include REC Ltd. (452.20, -25.2%), Power Finance Corporation Ltd. (426.75, -23.1%) and Adani Ports & Special Economic Zone Ltd. (1,248.95, -21.2%).

Volume Rockets

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

Top high volume gainers on BSE included Dabur India Ltd. (578.20, 6.1%), Hindustan Unilever Ltd. (2,496.30, 6.0%) and Avenue Supermarts Ltd. (4,548.75, 4.6%).

Top high volume losers on BSE were REC Ltd. (452.20, -25.2%), Power Finance Corporation Ltd. (426.75, -23.1%) and Adani Ports & Special Economic Zone Ltd. (1,248.95, -21.2%).

Gujarat Fluorochemicals Ltd. (2,800, -9.1%) was trading at 7.2 times of weekly average. Vaibhav Global Ltd. (277.90, -15.4%) and Bharat Electronics Ltd. (255.55, -19.8%) were trading with volumes 7.2 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks overperformed with 52 week highs, while 46 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,601.65, 0.1%), Britannia Industries Ltd. (5,339.90, 3.3%) and Container Corporation of India Ltd. (948.75, -19.2%).

Stocks making new 52 weeks lows included - Atul Ltd. (5,486.05, -4.6%) and Bajaj Finserv Ltd. (1,489.40, -5.5%).

3 stocks climbed above their 200 day SMA including Hindustan Unilever Ltd. (2,496.30, 6.0%) and Ceat Ltd. (2,352.10, -1.7%). 111 stocks slipped below their 200 SMA including HFCL Ltd. (83.45, -19.4%) and Adani Enterprises Ltd. (2,941.25, -19.3%).

 
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