Nifty, Sensex Top Gainers & Losers: Coal India, ITC gain on healthy outlook; Hindalco ends as top laggard – what should investors do?

Nifty, Sensex Top Gainers and Top Losers: The Indian markets snapped two-day gaining streak on Wednesday as both the benchmark indices closed lower around 0.25 per cent. The Nifty50 and BSE Sensex – settled above key levels of 18100 and 61000, respectively, today.

On the contrary, the broader markets such as Nifty Midcap and Smallcap underperformed the benchmarks to end between 0.4-0.6 per cent lower on Wednesday. The 12-share Nifty Bank closed over 0.2 per cent higher, aiding the markets from further fall along with FMCG, which was also up around 0.3 per cent today.

Among heavyweights, Adani Ports, Coal India, ITC, Hero MotoCorp, and Kotak Bank were among top gainers, while Hindalco, Power Grid, Divi’s Lab were among the top laggards. Pharma along with Auto and Metal dragged the markets during today’s session.

Coal India: BUY – Target: 280; CMP: 256

Coal India's share price has reacted to healthy second-quarter earnings for the financial year 2022-23 (Q2FY23) released on Monday. The counter touched its fresh 52-week high level of Rs 263.3 per share intraday and closed around 2.5 per cent higher to Rs 255.5 per share.

Global brokerage firm CLSA raises the target price for Coal India to Rs 280 and increases FY23-24 EPS estimates by 7/16 per cent, respectively. It said, Q2 lower e-auction volumes offset better realisation and e-auction premium continues to rise.

ITC: BUY – Target: 402; CMP: 360

Shares of ITC were among the top among gainers on Wednesday, the stock has been witnessing a continuous bull rally amid healthy outlook, it touched a new 52-week high today of Rs 361.5 per share intraday today, eventually closed nearly 2 per cent higher at Rs 360.4 per share on the BSE.

The stock currently trades at 24.0x and 20.9x its FY2023E and FY2024 EPS, which is at a discount to some large consumer goods companies, a domestic brokerage ShareKhan said, maintaining a Buy rating on the stock with a revised price target of Rs 402 per share.

It opined that strong earnings visibility with improving growth prospects of the core cigarette business and margin expansion in the non-cigarette FMCG business, along with a high cash generation ability and strong dividend payout will reduce the valuation gap in the coming years.

Hindalco: Buy – Target: 525; CMP: 418

Aditya Birla-owned metal company – Hindalco’s share price mainly reacted to its subsidiary Novelis' mute results. The stock closed as top laggard on NSE, down over 4.55 per cent to Rs 417.6 per share.

CLSA gave a Buy call on Hindalco with a target price of Rs 525 apiece after Novelis earnings, as the subsidiary’s Q2 earnings are largely in-line, however, the near-term outlook is weak. It added, cost headwinds could lead to sharply lower margins and revised capex guidance lower for FY23.

Below is the list of top gainers and losers on NSE, BSE

Nifty50 Top Gainers:

1) Adani Ports shares ended at Rs 892.30, up over 4.5 per cent on the NSE from Monday’s closing price.

2) Coal India shares ended at Rs 255.50, up over 2 per cent on the NSE from Monday’s closing price.

3) ITC shares ended at Rs 361.00, up over 2 per cent on the NSE from Monday’s closing price.

4) Hero Moto shares ended at Rs 2,652.55, over 1 per cent on the NSE from Monday’s closing price.

5) Eicher Motors shares ended at Rs 4,530.20, up over 1 per cent on the NSE from Monday’s closing price.

Nifty50 Top Losers:

1) Hindalco shares ended at Rs 417.60, down over 4.5 per cent on the NSE from Monday’s closing price.

2) Power Grid shares ended at Rs 218.90, down around 4 per cent on the NSE from Monday’s closing price.

3) Divi’s Lab shares ended at Rs 3,296.85, down around 3.5 per cent on the NSE from Monday’s closing price.

4) Grasim shares ended at Rs 1,748.00, down over 1.5 per cent on the NSE from Monday’s closing price.

5) Bajaj Finserv shares ended at Rs 1,751.85, down around 1.5 per cent on the NSE from Monday’s closing price.

Sensex Top Gainers:

1) ITC shares ended at Rs 360.50, up around 2 per cent on the BSE from Monday’s closing price.

2) Dr Reddy’s shares ended at Rs 4540.60, up over 1 per cent on the BSE from Monday’s closing price.

3) Kotak Bank shares ended at Rs 1896.45, up around 1 per cent on the BSE from Monday’s closing price.

4) HCL Tech Cement shares ended at Rs 1052.90, up over 0.5 per cent on the BSE from Monday’s closing price.

5) IndusInd Bank shares ended at Rs 1149.45, up around 0.5 per cent on the BSE from Monday’s closing price.

Sensex Top Losers:

1) Power Grid shares ended at Rs 218.75, down over 4 per cent on the BSE from Monday’s closing price.

2) Tech Mahindra shares ended at Rs 1029.10, down over 2 per cent on the BSE from Monday’s closing price.

3) Sun Pharma shares ended at Rs 1012.5, down around 1.5 per cent on the BSE from Monday’s closing price.

4) Bajaj Finserv shares ended at Rs 1753.50, down over 1 per cent on the BSE from Monday’s closing price.

5) NTPC shares ended at Rs 173.35, down over 1 per cent on the BSE from Monday’s closing price.