Market Overview
On the recent market expiry day, Bank Nifty traded within a defined range, leading to a flat closing for major indices, with Sensex down by 0.04% and Nifty by 0.05%. The Sensex finished at 84,266.29 points, down 33.49 points, while Nifty concluded at 25,796.90 points, declining by 13.95 points. Notable activity was observed in midcap and smallcap stocks, while the IT and metals sectors experienced upward movement. However, the energy, oil-gas, and public sector enterprises faced downward pressure.
Top Performers of the Day
Here are some stocks that garnered maximum attention during trading.
Vipul Organics | CMP: Rs 312.90
Vipul Organics surged by 20% today following an announcement of a rights issue. The company’s board has proposed a rights issue in a 1:3 ratio, allowing shareholders to purchase one new share at Rs 54 for every three shares held. The record date for this significant announcement is expected to be announced shortly, triggering a wave of buying interest in the stock.
National Aluminum Company | CMP: Rs 224
This stock achieved a record high of Rs 218.72, gaining 6.5% after Kotak Institutional Equities upgraded its rating to ‘add’. The brokerage believes the stock could reach Rs 235, indicating a potential upside of around 5% from its current valuation.
PB Fintech | CMP: Rs 1,727.10
PB Fintech’s shares rose by 6.6% today, fueled by a ‘buy’ rating from foreign brokerage Jefferies, which set a target price of Rs 1,800 per share. The company is also planning an investment of Rs 800 crore to acquire a 20-30% stake in a new healthcare venture, while ensuring its balance sheet remains asset-light.
Angel One | CMP: Rs 2,594.90
Angel One witnessed an intraday jump of 7%, closing up 1.3%. The firm recently announced new brokerage fee structures, charging Rs 20 or 0.1% + GST, whichever is lower, per order. This strategic pricing is expected to attract more trading activity.
Muthoot Finance | CMP: Rs 1,951.95
In contrast, Muthoot Finance shares fell 4% due to a circular from RBI regarding irregularities in gold loans. The new stringent regulations are anticipated to impact the growth trajectory of gold financing, with a timeline of three months for compliance and corrective measures from companies.
Manappuram Finance | CMP: Rs 197.58
The shares of Manappuram Finance declined by 1.8% as analysts at Morgan Stanley highlighted the regulatory challenges posed by the RBI’s ultimatum. While the company is in a solid position, the ramifications of tightening regulations may slow loan growth.
Asian Paints | CMP: Rs 3,275
Asian Paints saw a decline of 1.6%, as a report from Macquarie Equity Research indicated weak demand for paints and adhesives in the second quarter. This trend has also affected other players in the market, including Berger Paints and Kansai Nerolac.
Jubilant FoodWorks | CMP: Rs 659
Jubilant FoodWorks underperformed with a drop of 3.36% after receiving a final assessment order from the Income Tax Department, demanding a tax of Rs 71 crore for the fiscal year 2016-2017. This unexpected tax demand may impact investor sentiment.
Bajaj Auto | CMP: Rs 12,175
Bajaj Auto’s shares closed down 1.38% amidst lower sales projections during the festival period. Brokerage UBS has advised selling the stock due to competitive pressures in the two-wheeler segment, exacerbated by significant price discounts during the festive season.
Summary
In summary, today’s market showcases a mix of volatility and opportunity. While some stocks like Vipul Organics and National Aluminum experienced gains, others like Muthoot Finance and Bajaj Auto faced challenges. Investors are advised to approach the market with caution, considering the economic indicators and upcoming regulatory changes.
