Stock Market Expiry- Top Few things before the opening bell

Bears seem to have kept tight control over Dalal Street, pushing the benchmark indices down by nearly one percent on September 28 ahead of the monthly expiry of futures & options contracts. The fall in global peers and consistent FII selling weighed on sentiment.

The BSE Sensex plunged 509 points to 56,598, while the Nifty50 fell 149 points to 16,859 and formed Doji kind of pattern on the daily charts, indicating indecisiveness among bulls and bears about the future market trends.

"Normally, such formation after a reasonable weakness calls for a pullback rally from the lows. But the overall market trend is still weak and there is no confirmation of any buying emerging from the lows," said Nagaraj Shetti, Technical Research Analyst at HDFC Securities.

He thinks the Nifty is now placed at the crucial support of 16,800 levels as per the concept of change in polarity. The said level has been a crucial value area in the past and has witnessed significant moves from its supports and its resistances in the past.

Having declined down to the support, there is a possibility of a minor pullback rally in the market from near 16,800-16,750 levels in the next 1-2 sessions. Immediate resistance is placed at 17,000 levels, the market expert said.

The selling pressure was also seen in broader markets as the Nifty Midcap 100 and Smallcap 100 indices fell 0.3 percent and 0.5 percent, respectively, while India VIX, the fear index, increased by 2.44 percent to 22.10 levels.

Harsha Engineers makes a bumper listing with 36% premium

Harsha Engineers International clocked gains on listing as expected before rising further but most analysts advise booking profits amid market turmoil. The stock started off the first day's trade with a whopping 36 percent premium over issue price despite nervousness in equity markets. It climbed further six percent as the day progressed to take total gains to 43 percent over issue price.

Analysts said high premium at listing is justified with the IPO generating stronger than expected demand as qualified institutional investors' portion got subscribed over 178 times. Also, the ask price is fairly valued compared to industry peers.

"We recommend booking partial profits while remaining can be kept for the long term as the company is a comprehensive solution provider offering diversified suite of precision engineering products across geographies and end-user industries and has long-standing relationships with leading clientele," said Astha Jain, senior research analyst at Hem Securities.

Rajnath Yadav, research analyst at Choice Broking, urged investors to exit given the market volatility. Although Prashanth Tapse, senior vice president of research at Mehta Equities, sounded "very optimistic" on Harsha Engineers with its dominant position, he too advised booking profits in the current market scenario. "Risk takers can hold with a long-term perspective," he added.

Santosh Meena, head of research at Swastika Investmart, termed the company as a proxy play on India becoming a global manufacturing hub: "Those who applied for listing gains can maintain a stop loss at Rs 400. Our recommendation for investors is to hold the allotted shares and long-term investors can accumulate the stock on dips."

Harsha Engineers, which is the largest manufacturer of precision bearing cages in India, raised Rs 755 crore from the public issue with a strong 74.70 times subscription during September 14-16. Of the total issue size, Rs 455 crore was raised through fresh issuance which will be used in repayment of debts, capital expenditure towards the purchase of machinery, and existing production facilities.

Sensex was down 860.62 points or 1.48 percent at 57,238.30, and the Nifty down 285.50 points or 1.65 percent at 17041.80 following weak global cues. This is the fourth straight day of selling on Dalal Street.

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Volvo plans to expand certified used-car business pan-India by early 2024

 Swedish car maker Volvo plans to expand its certified used-car business pan-India by early 2024 and expects as much as one-third of its volumes to come from this segment, a top company official has said.
Volvo operates its pre-owned car business under the Selekt' platform globally and it recently launched the platform in India with two dealerships.
According to a study published early this month, the pre-owned car market is expected to grow at a compounded annual growth rate of 19.5 per cent till financial year 2027 and reach up to 8-million units. A recent CRISIL-OLX Auto report suggested that within the used-car market, the premium segment has seen a sharp uptick in demand as well as in supply in the first half of this calendar year.
"We have just started a pilot for our pre-owned certified car platform Volvo Selekt with two dealers in India. We want to expand it in phases and we are looking to ensure that the platform is across our network by 2023 or early 2024," Jyoti Malhotra, Managing Director at Volvo Car India told PTI.
Customers want quality, assurance, warranties and the right inspection from the manufacturers when it comes to buying a used-car, according to Malhotra.
Malhotra further said that volumes could gain more traction if the segment is driven by manufacturers. In this (model), consumers get the right price for the car and the buyers also get the right price with the quality and value in the product, which "Volvo Car India is working on," he said.
Malhotra said that the company is expecting at least one-third of its volume to come from this platform once it is functional across the network. Volvo Car India total sales stood at 1,724 units in 2021, which was 27 per cent higher over 1,361 cars sold a year ago.
He said that the first half of 2022 has seen good demand with volumes spiking 17 per cent year-on-year at 800-odd units, and added, the July-December period of the year could see sales growing by 25 per cent. "Demand wise, it is better as we have good order intake but are still constrained by supplies," he added.

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Buy KEC International; target of Rs 515: Sharekhan

 Recent interaction with KEC International Limited (KEC) reaffirms that the company’s efforts to improve working capital cycle, bring down debt, and close the Brazil legacy orders are well on track. The company expects ~15% annual revenue growth in FY2023/FY2024 and expects margin to revert to 10% by FY2024. Year-to-date (YTD) order intake has surpassed Rs. 7,000 crore. The company aims Rs. 20,000 crore (+15% y-o-y) order inflows in FY2023E.

We retain Buy on KEC with an unchanged PT of Rs. 515, considering its diversified revenue stream, healthy order backlog, promising order prospects, and upside risk to margin.
At 17:30 KEC International was quoting at Rs 436.05, down Rs 11.75, or 2.62 percent.
It has touched an intraday high of Rs 457.40 and an intraday low of Rs 430.15.
It was trading with volumes of 45,730 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed up 2.18 percent or Rs 9.55 at Rs 447.80.
The share touched its 52-week high Rs 550.00 and 52-week low Rs 345.15 on 26 October, 2021 and 12 May, 2022, respectively.
Currently, it is trading 20.72 percent below its 52-week high and 26.34 percent above its 52-week low.
Market capitalisation stands at Rs 11,210.34 crore.

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