BT50 Tuesday movers: Maruti Suzuki, M&M, Tata Motors among 17 stocks that defy gravity

Bears took control of Dalal Street on Tuesday on the back of selling in index heavyweight Reliance Industries (RIL) and financial majors including ICICI Bank, HDFC twins and State Bank of India. The Reserve Bank of India’s statement in its November 2021 bulletin related to the overvaluations of the domestic equity market further dampened the mood.

 

As a result, the 30-share BSE Sensex closed 396.34 points, or 0.65 per cent, down at 60,322.37. Likewise, the 50-share NSE Nifty index settled 110.25 points, or 0.61 per cent, down at 17999.20.

 

However, as many as 17 stocks in the Business Today top 50 list defied gravity. With a rally of 7.28 per cent, the country's largest carmaker Maruti Suzuki emerged as the top gainer in the list. The scrip closed Rs 546.45 higher at Rs 8049.55. Other auto majors including Mahindra & Mahindra and Tata Motors advanced 2.87 per cent and 2.47 per cent, respectively.

 

Sharing its views on the auto sector, Emkay Global Financial Services in a recent report said that in October 2021, domestic commercial volumes witnessed robust growth, aided by better freight availability. Other segments were subdued due to factors such as supply issues, muted rural sentiments and a high base due to inventory filling last year.

 

“Improving chip supply is expected to aid sequential improvement in volumes for PVs and premium motorcycles ahead. We retain a positive view on the auto sector, underpinned by expectations of a cyclical upturn in the next three years,” Emkay said. The brokerage is positive on Maruti Suzuki and Tata Motors with a target price of Rs 8,750 and Tata Motors Rs 550.

 

Tech Mahindra (1.32 per cent), Avenue Supermarts (up 1.26 per cent) and Dabur India (up 1.06 per cent) stood among other top gainers in the BT50 list.

 

Commenting on Tuesday’s market movement, Vinod Nair, head of research, Geojit Financial Services said, “The domestic market started trading between gains and losses before slipping into deep red with heavy selling in banking stocks. The RBI’s statement that equity market valuations are stretched added further pressure.”

 

BT50 stocks are the top players from the BT500 universe. These players are ranked based on the gain in their 12-month average market capitalisation between October 2020 and September 2021 against the same period a year ago.

 

On the other hand, Shree Cement (down 3.19 per cent), Reliance Industries (down 3.12 per cent), State Bank of India (down 2.43 per cent), UltraTech Cement (down 2.27 per cent) and Adani Enterprises (down 2.20 per cent) emerged as top losers in the list.

 

Sectorwise, the BSE Auto index gained the most 2.61 per cent. It was followed by Information Technology (up 0.44 per cent) and Capital Goods (up 0.44 per cent). However, the BSE Energy, Oil & Gas and Bankex dipped 2.12 per cent, 1.22 per cent and 1 per cent, respectively.

 

Ruchit Jain, trading strategist, 5paisa.com said, “The auto space was in momentum and looked geared up for the next leg of upmove. Some heavyweight stocks from this sector have witnessed good volumes and hence, could show relative outperformance. The banking index continues to underperform and is showing weakness, and hence one should avoid taking contra bets until any reversal is seen.” He sees a tug-of-war between bulls and bears in the next few sessions.

 

“It is crucial to see that whether 18,210 for Nifty breached first or 17,800. These levels will determine the trend. Till then, traders are advised to avoid aggressive positions and trade with a stock-specific approach,” Jain added.

Also Read: This Jhunjhunwala stock seen rising 76% post strong Q2 earnings

Also Read: Big Bull Portfolio: What should investors do with this Rakesh Jhunjhunwala stock post Q2 earnings?