D-Street was tainted in red today, with the market mood being somber at best. The benchmark indices were seen falling in trade today, with the Nifty as well as the Sensex trading a percent lower. Nifty Bank, after rallying for the past few days, saw a fall of seven-tenths of a percent an hour before markets closed for the day. The broader markets followed suit and the Midcap as well as the smallcap indices were down between 0.4-0.8%.
On the sectoral front, all the sectors were trading in the red, with IT, Media, Metals and PSU Banks dragging the most, down more than a percent in trade. Surprisingly, the PSU Bank index saw a correction after being the top market gainer for the last few trading sessions.
Stock specific action saw Tech Mahindra, Titan, Infosys, JSW Steel, Hindalco, Tata Steel, TCS and ITC as the top Nifty laggards today. On the flip side, we had Britannia, Hero Moto, NTPC, M&M, HDFC Life, ONGC and BPCL managed to eke some gains for themselves and shielded the market from a further tumble.
These were the stocks in the spotlight today based on news flows, block deals or brokerage notes:
1. FERTILISER PACK:
Fertiliser names such as FACT, National Fertiliser, RCF, Gujarat State Fertiliser and SRF were trading in the positives today. Global forecasts suggest that rising nitrogen fertilizer prices will continue in 2023. EU’s restocking will drive up natural gas prices, and subsequently nitrogen fertilizer prices. more so, the winter Rabi crop season may see a hiked demand for fertilisers. Another news flow coming in suggested that the government may increase urea subsidy in Budget 2023. The subsidy may be hiked to Rs 288/kg from Rs 268/kg. FACTs stole the show among the fertiliser pack, soaring as much as 10% in trade today.
2. IRCTC:
The stock recorded a fall of about a percent in trade today, based on a news flow that the Government is looking to sell 5% stake in IRCTC via offer for sale (OFS). GoI currently holds 67.4% stake in IRCTC. The OFS will include a 2.5% green shoe option. the non-retail part is open for subscription and has been subscribed 0.32x as of 1:30 pm on December 15.
3. JB, GLENMARK PHARMA:
Both these stocks were newsmakers in trade today based on the news flow that JB will acquire Glenmark’s Razor portfolio. The acquisition will cost JB Rs 314 crore, and will give the company distribution rights in India and Nepal. The deal will be funded through a mix of long-term debt and internal accruals.
4. MAHINDRA CIE:
The company is going to change its name to CIE Automotive to reflect the ownership of CIE. Further, they have announced intention to sell their German Forging business, which contributes to almost 20% of the company’s revenue but has unfortunately been a drag on earnings. The stock was up a whopping 9% in today’s trading session.
5. NYKAA:
The stock was in the spotlight today based on a bunch deal. 3.1% of the company’s equity changed hands in a bock deal today. The stock was down eight-tenths of a percent towards market close.
6. THERMAX:
The stock was in focus today on the news flow that the Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the demand notice worth Rs 1,381.55 crore from the excise department against the company and its group firms. This news hit the stock, and it was trading four-tenths of a percent in the red.
7. RAMKRISHNA FORGINGS:
The stock managed to gain marginally on an otherwise negatively trading day. The company’s board of directors has approved an investment to acquire up to 51% voting rights in TSUYO Manufacturing Private Limited, a Make-In-India start-up focused on powertrain solutions for electric vehicles. This proposed investment will enable TSUYO to leverage both organisations’ technological expertise and manufacturing capabilities to expand its product portfolio and expand its manufacturing facilities for motors, controllers, E-axles, and differentials. The company intends to invest around Rs 100 crore over the next 5 years, with a revenue of around Rs 500 crore expected by the end of the fifth year.
8. RATEGAIN:
Air Senegal, the national carrier of the Republic of Senegal, has selected RateGain’s AirGain product to accelerate its growth in a dynamic market by getting access to accurate and real time market insights every day. This selection kept the stock abuzz in trade. higher almost 1.5% today.
9. POONAWALLA FINCORP:
The stock was hit in trade today, slipping almost 4.5% in the red based on the news flow that the company has approved sale of its housing arm, Poonawalla Housing Finance to TPG for a sum of Rs 3,900 crore.
10. SAPPHIRE FOODS:
The stock was up almost 3% in today’s trading session based on a block deal. The company had 10.7% of its equity traded in a bunch deal.
