Regulatory developments and UltraTech Cement’s entry into the wires and cables segment featured among the day’s triggers, with SEBI’s review of F&O settlement pricing lifting Angel One even as brokerages flagged de-rating concerns for the wires and cables incumbents.
Top gainers at market open
Angel One shares rose up to 6% at market open after SEBI, in a Thursday-night circular, said it would review the settlement price methodology for F&O contracts a month after the rollout of the Closing Auction Session, following feedback from market participants across multiple channels.
The company’s shares had risen over 28% since the beginning of the year and over 34% in the past year. The stock was at an 18.9% decline from its 52-week high of ₹360.45 and 45.2% away from hitting its 52-week low of ₹208.63. Over 1 crore shares of the company were traded on the stock market at 2.44 times the stock’s 10-day average.
BSE shares saw strong buying momentum at market open, surging over 4% following the same SEBI move. The stock opened at ₹3,400 against its previous close of ₹3,306.10 and touched an intraday high of ₹3,474. The stock had gained 3.97%, or ₹131.10, from its previous close of ₹3,306.10, even as shares had declined 5% over the past month.
The stock was trading 22.70% below its 52-week high of ₹4,446.80 and 70.03% above its 52-week low of ₹2,021.50. Trading volume stood at 40.05 lakh shares, with the stock having closed in green in 5 out of the last 10 trading sessions.
HBL Engineering shares rose up to 6% at market open. The company’s shares had fallen over 23% since the beginning of the year and more than 17% in the past year. The stock was 14.8% away from hitting its 52-week low of ₹613. Over 24 lakh shares of the company were traded at 3.59 times the stock’s 10-day average.
HFCL shares rose over 5% at market open. The company’s shares had risen almost 236% since the beginning of the year and more than 230% in the past year. The stock was at a 10.9% decline from its 52-week high of ₹256.70. Over 35 lakh shares of the company were traded at 0.23 times the stock’s 10-day average.
Top losers at market open
KEI Industries shares fell more than 6% at market open, the sharpest hit among the wires and cables makers, after UltraTech Cement officially launched its “Ultravolt” brand three months ahead of schedule. Nuvama warned that KEI, along with Polycab and other peers, could face near-term de-rating from UltraTech’s aggressive entry, which involves capex of around ₹1,800 crore that analysts expect could rise to ₹10,000-12,000 crore, targeting over one lakh retailers across 500 districts.
The company’s shares had risen more than 10% since the beginning of the year and almost 21% in the past year. The stock was at an 18.9% decline from its 52-week high of ₹5,899. Over 6 lakh shares of the company were traded on the stock market at 1.72 times the stock’s 10-day average.
Polycab shares fell up to 4.5% at market open before paring some of their losses. The stock came under pressure on the same UltraTech Cement development, though JPMorgan maintained an Overweight call with a target of ₹10,000 a share, pointing out that only ₹888 crore of UltraTech’s approved ₹1,800 crore capex has been spent so far.
The brokerage added that Polycab’s focus on residential wires, around 30% of its revenue, should limit the medium-term impact, and called the correction a buying opportunity once the new entrant is digested.
The company’s shares had risen over 10% since the beginning of the year and more than 16% in the past year. The stock was at a 19.6% decline from its 52-week high of ₹10,126. Over 3 lakh shares of the company were traded at 1.13 times the stock’s 10-day average.
RR Kabel rounded off the sector’s decline, falling over 3.5% at market open as the same UltraTech Cement entry weighed on wires and cables stocks, with Nuvama flagging scale-up risk for smaller peers in particular.
The company’s shares had risen almost 72% since the beginning of the year and over 107% in the past year. The stock was at an 18.1% decline from its 52-week high of ₹2,983.80. Over 4 lakh shares of the company were traded at 0.78 times the stock’s 10-day average.
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