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The Baseline
03 Feb 2023
Chart of the week: Centre expects fiscal deficit to fall to 5.9% of GDP in FY24
By Abdullah Shah

As global economic growth slows down, India’s GDP growth in FY23 is also expected to slow down to 7% from 8.7% in FY22. GDP growth in FY24 is expected to further reduce, to 6.5%. 

This is important for India’s Budget as the fiscal deficit is expressed as % of GDP. As the GDP estimate is revised downward, the Centre will have to reduce the expenditure to reduce the fiscal deficit.

The fiscal deficit as % of GDP rose to a record high of 9.5% in FY21, and Nirmala Sitharaman, the Finance Minister, had committed to reducing it. In line with the guidance, fiscal deficit as a % of GDP fell to 6.4% in FY23. The centre aims to further lower this to 5.9% of the GDP in FY24 and eventually to 4.5% of the GDP by FY25. 

In order to achieve a lower fiscal deficit in FY24, the government has planned to reduce expenditure on subsidies and pensions while keeping the spending on rural development constant. However, the Centre continues to focus on transport and defence segments as its spending is expected to rise 32.4% and 5.7% in these segments respectively, when compared to FY23 revised estimates. In addition, interest expenditure is also expected to rise 14.8% in FY24. 

Revised estimates of subsidies for food and fertilisers overshot FY23 budgeted amounts as the government had to boost support via free food grains and fertiliser subsidies amid higher commodity inflation. 

In FY24, the government has decided to curb the expenditure on subsidies with an estimated spend of Rs 2 lakh crore on food (-31.3%) and Rs 1.8 lakh crore on fertilisers (-22.2%). The estimated expenditure on pensions has also been marginally reduced to Rs 2.3 lakh crore in FY24 from the revised estimates of Rs 2.4 lakh crore in FY23.

The interest, transport and defence are the segments with the highest estimated expenditure in FY24. These segments contribute to 45.1% of the total estimated expenditure. The Centre has increased the estimated expenditure of interest to Rs 10.8 lakh crore in FY24 from t Rs 9.4 lakh crore in FY23 revised estimates. 

The rise comes on the back of higher requirements for payment of interest on market loans, discount on Treasury Bills, Central Government securities issued by National Small Savings Fund and state provident funds. 

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Feb 2023
Market closes higher, ASM move limits losses for Adani stocks

Trendlyne Analysis

Nifty 50 gained momentum in the last leg of the trading session and closed 1.3% higher than Thursday’s closing levels. NSE has put Adani Enterprises, Adani Ports and Ambuja cements in ASM limiting further downside.

India’s services purchasing managers index or PMI data released today indicated the Indian services sector expanded in January but at a slower pace compared to December. PMI stood at 58.5 in December, and 57.2 in January (PMI over 50 signifies expansion). Nifty Smallcap 100 and Nifty Midcap 100 close in the red, despite the benchmark index closing in the green. Nifty Auto and Nifty Bank close higher than Thursday’s levels. Nifty IT closes flat, despite the tech-heavy Nasdaq 100 index closing 3.56% higher on Thursday.

In international markets, S&P 500 and Dow Jones futures trade lower, dragged by Apple, Google and Amazon. US markets are anticipating the labor department’s job report later today. Brent crude oil futures are heading into the first session of weekly loss after gaining in the last two weeks. European indices trade higher.

Nifty 50closed at 17,854.05 (243.7, 1.4%), BSE Sensexclosed at 60,841.88 (909.6, 1.5%) while the broader Nifty 500closed at 14,962.35 (123.0, 0.8%)

Market breadth is in the red. Of the 1,958 stocks traded today, 649 were on the uptrend, and 1,260 went down.

  • Relative strength index(RSI) indicates that stocks like ITC, Ratnamani Metals & Tubes, Persistent Systems and Jindal Stainlessare in the overbought zone.

  • Jubilant Pharmova is falling as it posts a net loss of Rs 15.7 crore in Q3FY23 despite revenue rising by 18.1% YoY. Hari S Bhartia, Managing Director said that the profitability was lower in Q3 due to the generator supply outage, lower API production and low volumes in drug discovery services.

  • PSU Banks like Bank of Baroda, Canara Bank, State Bank of India, Bank of India and Punjab & Sind Bank are rising in trade. The broader sectoral indexNifty PSU Bank is also trading in the green.

  • Divi’s Laboratories falls over 14% in trade as its Q3FY23 net profit declines 66% YoY to Rs 306.8 crore and revenue falls by 31.5% YoY due to a sharp decline in covid revenue. On the other hand, Zydus Lifesciences' Q3 net profit rises 24.5% YoY to Rs 622.9 crore led by robust growth in revenue from the pharmaceuticals segment.

  • Bank of Baroda is up more than 3% in trade today. Its Q3FY23 net profit surges 75.4% YoY to Rs 3,852.7 crore as net interest income rises 26.5%. Asset quality for the bank improves as gross NPA and net NPA ratios fall. The stock ranks high on the Trendlyne Checklist score.

  • Abhijit Roy, Managing Director and CEO of Berger Paints, says demand will pick up and the growth rate will be back to double digits in Q4FY23. The company’s profit declined 20.5% YoY to Rs 207.1 crore in Q3.

  • TeamLease Services' board approves buyback of up to 3.28 lakh fully paid equity shares at Rs 3,050 per share aggregating to Rs 100 crore, subject to shareholder approval.

  • Shree Cements, Samvardhana Motherson International and Cummins rise 10.7%, 4.8% and 2.7% respectively over the past week, ahead of their Q3FY23 results on February 8.

  • Credit rating agency Fitch Ratings says that there will be no immediate impact on rated Adani Group companies as a consequence of the report published by Hindenburg Research. It expects no change in the cash flow forecast.

  • Foreign institutional investors pull out Rs 9,286.5 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options receive the highest inflow of Rs 12,542.7 crore from foreign investors. Mutual funds invest a total of Rs 3,386.5 crore in the market.

  • Titan is rising as its Q3FY23 net profit grows by 8.8% QoQ to Rs 904 crore, but falls by 10% YoY. Rise in employee benefit expenses, finance costs and other expenses caused the EBITDA margin to decline by 200 bps QoQ. CK Venkataraman, Managing Director of the company said, "The quarter witnessed strong festive consumer demand and we delivered healthy double-digit growth over a strong base of Q3FY22."

  • Citigroup maintains its ‘Buy’ rating on PB Fintech with a target price of Rs 760. The brokerage says that the company has a low contribution (around 20-25%) of ULIP in its product mix. It adds that the EoM guidelines will reduce the overhang of insurance commission.

  • Axis Direct upgrades its rating on KEC International to ‘Buy’ from ‘Hold’ and increases the target price to Rs 515 from Rs 405. This indicates an upside of 9.2%. The brokerage turns optimistic about the company’s prospects on the back of robust order inflows, proven execution prowess and a well-diversified order book. It expects the firm’s revenue to grow at a CAGR of 12.7% over FY23-25.

  • Commodity trading & distribution, marine port & services and utilities (non-electrical) industries fall more than 31% in the past week.

  • TVS Motor Co’s arm TVS Motor (Singapore) is set to acquire 31.4 lakh series AA shares in the electric mobility company Ion Mobility for $9.5 million (Rs 77.9 crore). The company believes this investment will increase its presence in the electric vehicle market in South-East Asia.

  • India’s January Services PMI falls to 57.2 compared to 58.5 in December 2022 but remains above the 50 mark for the 18th consecutive month.

  • NSE places Adani Enterprises, Adani Ports and Ambuja Cements under short-term additional surveillance measures (ASM). Under the ASM list stocks are surveyed on concerns of price, volume variation or volatility. Reports suggest that Adani Enterprises was removed from the Dow Jones Sustainability Index.

  • Tata Consumer Products’ Q3FY23 net profit is up 32.7% YoY to Rs 351.8 crore, led by healthy growth in its India business segment. Revenue increases 8.3% YoY on the back of strong growth in the food segment from both pricing and volume growth. Sunil D’Souza, Managing Director and CEO of Tata Consumer Products said “We delivered strong earnings growth this quarter...in an extremely challenging macroeconomic environment.”

  • SBI Life Insurance's management says that its share of the business of non-linked policies with a premium above Rs 5 lakh is less than 2% of APE for 9MFY23 and the new policies of the Union Budget are unlikely to cause a significant impact. However, HDFC Life has an exposure of 10-12% of its total APE for non-linked products. According to the Union Budget, non-linked products with a premium above Rs 5 lakh will now be taxable.

  • Dabur is falling as its Q3FY23 net profit is down by 5.4% YoY to Rs 475.94 crore. CEO Mohit Malhotra says that cost and inflationary environment, especially in rural areas have dented the earnings. Raw material cost for the company rose 6.2% YoY in Q3. Revenue is up as all segments like consumer care, food and retail report growth.

  • Apollo Tyres’ Q3FY23 net profit rises 30.7% YoY to Rs 292.1 crore and revenue grows by 12.5% YoY to Rs 6,422.8 crore on the back of robust sales in the domestic market. The stock shows up in a screener for companies with net profits increasing sequentially over the past two quarters.

Riding High:

Largecap and midcap gainers today include Adani Ports & Special Economic Zone Ltd. (498.85, 7.87%), Titan Company Ltd. (2,463.10, 6.72%) and Bank of Baroda (163.60, 6.20%).

Downers:

Largecap and midcap losers today include Divi's Laboratories Ltd. (2,884.35, -11.71%), Adani Transmission Ltd. (1,396.05, -10.00%) and Adani Green Energy Ltd. (935.90, -10.00%).

Movers and Shakers

15 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Mahindra Lifespace Developers Ltd. (380.05, 8.80%), Aavas Financiers Ltd. (1,998.65, 7.37%) and EPL Ltd. (152.75, 3.35%).

Top high volume losers on BSE were Divi's Laboratories Ltd. (2,884.35, -11.71%), Crompton Greaves Consumer Electricals Ltd. (305.15, -8.18%) and Welspun Corp Ltd. (192.15, -7.91%).

Jamna Auto Industries Ltd. (108.15, 3.15%) was trading at 6.5 times of weekly average. eClerx Services Ltd. (1,495.90, 2.97%) and Jubilant Pharmova Ltd. (343.65, -1.28%) were trading with volumes 4.4 and 4.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks made 52-week highs, while 28 stocks hit their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (367.20, 2.38%), Apollo Tyres Ltd. (330.20, -0.38%) and Blue Star Ltd. (1,358.25, 2.14%).

Stocks making new 52 weeks lows included - ACC Ltd. (1,926.75, 4.64%) and Adani Ports & Special Economic Zone Ltd. (498.85, 7.87%).

15 stocks climbed above their 200 day SMA including Titan Company Ltd. (2,463.10, 6.72%) and Orient Electric Ltd. (283.10, 4.00%). 22 stocks slipped below their 200 SMA including Hindustan Copper Ltd. (107.50, -7.80%) and Hikal Ltd. (330.40, -6.07%).

 
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The Baseline
02 Feb 2023
Screener of the week: Adani group companies with high pledged shares by promoters
By Abdullah Shah

As Adani Group stocks rocket downward, we take a look at the implications for their pledged shares by promoters. This screener looks at Adani Group stocks’ promoter holding pledges and annual debt-equity ratio.

Adani Group has pledged 100% of their stake as promoters of Ambuja Cements. The cement & cement products company has a high forward PE ratio of 50X, which is higher than its current PE. Analysts forecast its profits falling by 20% YoY in FY23. 

The group has also pledged 25% of their stake in Adani Power. In Q3FY23, the promoters pledged an additional 14.1% of their shares in this electric utilities company. It has the second-highest annual debt-to-equity ratio of 8.9X among listed Adani group companies.

Adani Transmission has a promoters pledge ratio of 6.6%. The electric utilities company stands a risk of seeing more of its promoter holding being pledged to lenders, as it has fallen over 35% over the past week. 

Adani Green Energy is also at risk of seeing more promoter pledges due to its recent crash of 36% till January 31. This player has the highest annual debt-to-equity ratio of 43.9 among Adani group companies, and its return on capital (ROCE) is nearly half of its sector average.  

You can find some popular screenershere.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Feb 2023
Market closes flat, HDFC's Q3FY23 net profit rises 13.2% YoY to Rs 3,690.8 crore

Trendlyne Analysis

Nifty 50 closed flat recovering from the day’s low on a volatile day of trade. However, other major Asian indices closed in the green except for China’s Han Seng index, which closed lower. European indices traded in the green amid positive global cues. In a major surprise, Adani Enterprises called off its fully subscribed Follow on Public Offer (FPO). Adani Enterprises' FPO floor price was fixed at Rs 3,112 and Adani Enterprises stock closed on Wednesday at Rs 1,921. On Wednesday, US stocks closed higher after the Fed’s widely expected rate hike of 25 bps. S&P 500 closed 1.05% higher, while the Dow Jones closed flat on Wednesday. Brent crude oil futures traded in the green and are heading into a third straight weekly gain.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty FMCG and Nifty Media closed higher than Wednesday’s closing levels. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq 100 closing 2.2% higher on Wednesday.

Nifty 50closed at 17,610.40 (-5.9, 0.0%), BSE Sensexclosed at 59,932.24 (224.2, 0.4%) while the broader Nifty 500closed at 14,839.40 (-8.3, -0.1%)

Market breadth is in the red. Of the 1,957 stocks traded today, 853 were in the positive territory and 1,045 were negative.

  • Hindustan Unileverbeats Godrej Consumer Productsin YoY revenue and profit growth, one-year price change and MF holdings. But lagsin QoQ revenue growth, PE ratio and broker average rating.

  • Max Healthcare’s Q3FY23 net profit rises 17.2% YoY to Rs 222.4 crore and revenue grows by 16.9% YoY. This growth is driven by improving occupancy rates and average revenue per occupied bed. The stock shows up in a screenerfor companies with high TTM EPS growth.

  • Reports suggest that InterGlobe Aviation (Indigo) is likely to post a profit in Q3FY23 as air traffic improves for both international and domestic travel. Also, the correction in oil prices and price hikes may drive an earnings boost for the airline, which announces results tomorrow. It ranks high on the Trendlyne checklist score and shows up in a screener of stocks with consistent price growth.

  • Zydus Wellness is falling as its Q3FY23 net profit declines 16.1% YoY with rising cost of raw materials YoY. Revenue rises 7.1% YoY to Rs 415.6 crore. The stock shows up in a screener for companies with declining net cash flows.

  • HDFC trades lower in a weak market. Its Q3FY23 net profit rises 13.2% YoY to Rs 3,690.8 crore, with net interest income up by 13%. Total assets under management grew with individual loan books rising by 18% YoY. The management says that demand for home loans remains decent with growth in both the mid-income and high-end properties segment.

  • Shashank Srivastava, Senior Executive Officer (Marketing & Sales) of Maruti Suzuki, says production levels will depend on the availability of semiconductors and expects the shortage to continue. He adds that softening of commodity prices has helped improve earnings in Q3, and the trend is likely to continue in Q4.

  • JK Cement, Balaji Amines and Tata Steel's weekly average delivery volumes rise ahead of their Q3FY23 results on Monday.

  • Metal & Mining stocks like Jindal Steel & Power, Adani Enterprises, Tata Steel, MOIL and Vedanta are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

  • Kalpataru Power Transmissions secures new orders across segments worth Rs 2,456 crore. It wins orders in residential & building construction, railway and oil & gas in India. It has also bagged transmission & distribution orders in India and overseas.

  • Ion Exchange (India) receives a letter of award from Indian Oil Corp worth Rs 726.13 crore for work, operation and maintenance of a water treatment plant as part of the Panipat refinery expansion project.

  • ICICI Direct upgrades its rating on GAIL India to ‘Buy’ from ‘Hold’ and raises the target price to Rs 115 from Rs 95. This indicates an upside of 21.1%. The brokerage is positive about the company’s prospects as it expects an increase in gas transmission and trading volumes along with a decline in gas prices. It anticipates the firm’s revenue to grow at a CAGR of 19.9% over FY22-25.

  • In a video address, Gautam Adani, Chairman of Adani Group, said that the decision to call off the Adani Enterprises’ Rs 20,000 crore FPO was due to heightened volatility in the market, and to "protect the interest of its investors". He added that they would be reviewing their capital market strategy once prices stabilize.

  • RailTel Corp is rising on a work order win from the State Bank of India for providing 4G connectivity for offsite ATMs, over five years. The cost of the project is Rs 253.35 crore. The company shows up in a screener of broker upgrades in the past three months.

  • FMCG stocks like ITC, Britannia Industries, Radico Khaitan and Hindustan Unilever are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

  • B Thiagarajan, Managing Director of Blue Star, says the Budget announcements favour the industry. He says the company will focus on expanding its margin in FY24.

  • Ashok Leyland is rising as its Q3FY23 net profit jumps by 362.5% YoY to Rs 319 crore and revenue surges 56.2% YoY. This growth comes on the back of a strong jump in sales volume. Medium and heavy commercial vehicle sales volume increases 69% YoY and light commercial vehicles sales volume by 15% YoY. The stock shows up in a screener for companies with decreasing promoter pledges.

  • Mahesh Nandurkar, Head of Research and MD at Jefferies India, says the Union Budget is well-balanced. He adds that the 33% rise in Capex spending beat expectations.

  • Promoter Biocon sells a 10% stake (4 crore shares) in Syngene International for Rs 2,240 crore in a bulk deal yesterday.

  • Ashish Kacholia sells stake in SG Finserve to below 1% in Q3FY23 as against 1.1% held in Q2FY23.

  • Tata Chemicals Q3FY23 net profit rises 25.7% YoY to Rs 391 crore as revenue increases 32% YoY. Revenue from basic chemistry products increased however specialty products reported a marginal fall. Input costs are still high with power and fuel costs surging 56% in Q3. It shows up in a screener of companies with low debt.

  • Britannia’s Q3FY23 net profit surges 2.5X YoY to Rs 932.4 crore because of an exceptional gain of Rs 359 crore with regard to the joint venture with Bel SA for its cheese business. As inflation moderated, the company’s operating margin improved by 330 bps YoY to 18.4%. The stock is trading near its 52-week high and shows up in a screener of increasing revenue for the past two quarters.

Riding High:

Largecap and midcap gainers today include Ambuja Cements Ltd. (352.55, 5.52%), IDFC First Bank Ltd. (59.60, 5.49%) and ITC Ltd. (378.60, 4.76%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,565.25, -26.70%), Adani Transmission Ltd. (1,551.15, -10.00%) and Adani Total Gas Ltd. (1,707.70, -10.00%).

Volume Rockets

20 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Welspun India Ltd. (70.00, 8.78%), Clean Science & Technology Ltd. (1,481.90, 7.66%) and Bombay Burmah Trading Corporation Ltd. (942.75, 7.48%).

Top high volume losers on BSE were TCI Express Ltd. (1,447.20, -9.34%), Birlasoft Ltd. (272.00, -8.11%) and EPL Ltd. (147.80, -5.44%).

Galaxy Surfactants Ltd. (2,414.20, 0.54%) was trading at 9.0 times of weekly average. Sapphire Foods India Ltd. (1,176.10, -5.22%) and ICICI Securities Ltd. (489.50, 1.27%) were trading with volumes 8.8 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks took off, crossing 52-week highs, while 23 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,329.85, 4.96%), Britannia Industries Ltd. (4,573.05, 4.62%) and ITC Ltd. (378.60, 4.76%).

Stocks making new 52 weeks lows included - Adani Ports & Special Economic Zone Ltd. (462.45, -6.60%) and Adani Transmission Ltd. (1,551.15, -10.00%).

16 stocks climbed above their 200 day SMA including Bombay Burmah Trading Corporation Ltd. (942.75, 7.48%) and KNR Constructions Ltd. (257.00, 6.62%). 28 stocks slipped below their 200 SMA including UPL Ltd. (696.40, -6.16%) and Sapphire Foods India Ltd. (1,176.10, -5.22%).

 
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The Baseline
01 Feb 2023
Budget 2023 Live Analysis

Budget 2023: Winners and Losers

  • Sector/IndustrySector Change 1 YearSector Change 1 YearBudget Impact
    Telecom-1.48%-0.96%Increase in government spending in telecom infrastructure from Rs 3,010 crore in FY23 to Rs 10,400 crore in FY24. However, telecom stocks traded in red as the Centre also increased its non-tax revenue collection target from telecom companies by 30% to Rs 89,469 crore. Telecom Services closed 1% lower in trade today.
    Life Insurance-16.99%-9.2%Life insurance stocks fell more than 9% in trade today after the Centre announced that all income earned from life insurance policies (excluding unit-linked insurance plans) with a premium of above Rs 5 lakh will be taxable. This is applicable post-April 01, 2023. Insurance companies are now worried that high-premium products will face slow demand. Major stocks like SBI Life Insurance, HDFC Life Insurance, Life Insurance Corp and Max Financial fell in trade today.
    Real Estate-8.41%-1.06% Much needed boost for infrastructure development both directly and indirectly. The Finance Minister (FM) has laid out Rs 10,000 crore for urban infrastructure development, with Rs 79,000 crore dedicated to PM Aawas Yojana - a housing development project. FM also specified that infrastructure will be one of the top three priorities. Increased capex will boost growth in these sectors. The index Nifty Realty however pared its gains and closed 0.94% lower in trade today.
    Banking6.68%-0.35%Banking stocks declined post the budget announcement. The budget deficit of 6.4% is higher than historical trends. As government borrowing increases, it sucks liquidity from commercial banks as banks are the biggest market for government bonds. Banks have been reeling with agriculture loans and MSME loans. The government has raised the agriculture loan target to Rs 20 lakh crore. MSME emergency credit line was not fully utilized in FY23. The allocation has been brought down to Rs 14,000 crore from earlier Rs 15,000 crore.
    General Industrials29.8%-1.34% The Centre has raised capex budget by 33% for FY24 with a special focus on railway infrastructure. This may attract higher private investments and start a new capex cycle. This bodes well for the order books of capital goods makers especially those which get business from Indian railways, manufacturing, power generation, defence and construction industries. Stocks in focus: Timken India, Siemens, Rail Vikas Nigam, Cummins, HAL, Bharat Electronics, CG Power, ABB India
    Agrochemicals / fertilizers47.14%-2.67% The majority of fertilizer stocks ended up negative post-budget announcement. The government has cut down the budget allocation of urea subsidy from Rs 1,54,098 crore (revised estimates) for FY23 to Rs 1,31,100 crore in FY24.
    Pharmaceuticals-0.1%-0.33% Indian pharma companies’ reactions to the Union budget unveiling were mixed. Finance Minister Nirmala Sitharaman said that the Centre will encourage the pharma industry to invest in research and development in priority areas. The impact of this on pharma companies will be dependent upon the priority areas or segments that the Centre will decide to focus on. With regard to the allocation to major schemes, the Centre has allocated Rs 1,250 crore (Rs 100 crore in FY23) for the Pharmaceutical department as per FY24 budget estimates.
    Defence49.5%-5.43% All 11 companies in this industry fell post-budget announcement after an early trading session rally despite a 13% increase in the Indian defence budget to Rs 5.94 lakh crore in FY23. This could be due to a less-than-expected increase in the capital outlay, which is mainly used to buy defense equipment. Capital outlay rose only 6.3% YoY to Rs 1.63 lakh crore. A slowdown in capital outlay growth momentum could hurt the order book growth of fast-rising defence companies. However, an already strong order book could help offset this; The focus falls back on the execution of orders going forward.
    FMCG10.64%-0.14% FMCG stocks rose as the Finance Minister announced plans to boost agricultural production. The Centre set an agriculture credit target of Rs 20 lakh crore and has announced various schemes to help farmers, fishermen and agricultural credit societies. However, the FMCG sector lost most of its gains by the end of today’s trade and closed flat. Although a surge in production may ease supply constraints to a certain extent, the focus still remains on cost pressures due to commodity prices still at elevated levels.
    Hotels, Restaurants & Tourism16.85%1.09% Hotel and Tourism stocks rallied in intra-day trade as the Finance Minister announced the promotion of tourism through government programs and public-private partnerships. At a time when demand for travel has almost recovered to pre-Covid levels, this Centre's focus on tourism is likely to push travel demand up in the coming years.

  • The Centre cuts food, fertilizer and fuel subsidy spends by 28% to Rs 3.74 lakh crore (estimated) for FY24.

  • The Centre cuts back spending on rural jobs guarantee schemes in the Union Budget. Also, customs duty has been revised in the import of parts for mobile phone manufacturing, seeds used in lab-grown diamonds, and open cells of TV panels.

  • Finance Minister, in her budget, has extended the date of incorporation for startups to avail tax benefits to March 31, 2024, from March 31, 2023. The FM also proposes the benefit of carrying forward losses on change of shareholding for startups to 10 years of incorporation from the current seven years.

  • Finance Minister proposes to remove the minimum threshold of Rs 10,000 on TDS and increase the rebate limit to Rs 7 lakh per year from Rs 5 lakh.

  • The government has a capex of Rs 35,000 crore for energy transition investment. Finance Minister Nirmala Sitharaman says that battery storage will get viability gap funding. The government also remodels the credit guarantee scheme for MSMEs with an investment of Rs 9,000 crore, reducing the cost of credit by 1 percentage point. This will come into effect from April 1.

  • Finance Minister announces an investment of Rs 75,000 crore for transport infrastructure projects in steel, ports, fertilizer, coal and foodgrain sectors, with Rs 15,000 crore coming from private sources. Iron & Steel/Interm.Products and Fertilizer industries trade in the green.

  • The fiscal deficit for 2022-23 stands at 6.4% of GDP. Finance Minister says that it will fall to 5.9% in 2023-24.

  • The government reduces more than 39,000 compliances and decriminalises more than 3,000 legal provisions to improve the ease of doing business.

  • Indian Railway Catering & Tourism Corp and Rail Vikas Nigam rise as Finance Minister Nirmala Sitharaman announces Rs 2.4 lakh crore capital outlay for railways.

  • Finance Minister Nirmala Sitharaman says the Centre’s capital outlay towards infrastructure development rises 33% to Rs 10 lakh crore. She adds that Rs 2.4 lakh crore will be allotted towards railways.

  • Finance Minister Nirmala Sitharaman says that India's per capita income has grown to Rs 1.97 lakh crore.

  • The Centre is focused on increasing jobs for the youth and enhancing the agriculture sector by bringing modern technologies.

  • The Centre will bear the complete expenditure of Rs 2 lakh crore to ensure Food Security. Finance Minister Nirmala Sitharaman says that agriculture credit will be enhanced to Rs 20 lakh crore.

  • Hotel stocks rise as the Centre announces support for the tourism industry. 

  • Rupee gains 12 paise against the US dollar to Rs 81.76 per dollar in early trade today, ahead of the Union Budget.

  • Economic Survey reveals that direct income has risen by 26%. The survey also suggests that borrowing costs will continue to remain high as rate tightening cycle may last for a longer period. India’s core sector output has also increased by 7.4% in December 2022.

  • The government's tax revenue is expected to exceed budget estimates by Rs 4 lakh crore on higher income tax and customs duty. The Centre's planned capex for this fiscal year is Rs 7.5 lakh crore, compared to Rs 5.5 lakh crore last fiscal. Industries such as infrastructure, defence and logistics are expected to see a boost in funding.

  • India’s manufacturing PMI falls to a three-month low of 55.4 in January, compared to 57.8 in December 2022. However, the reading remains above 50 for the 19th consecutive time.

  • Reports suggest that nominal GDP growth in FY23 will be around 15.4%. The real GDP growth will be around 7% and is likely to come down to 6-6.5% in FY24.

  • The domestic market looks forward to more disposable income for the middle class and a reasonable disinvestment target from the Budget. The market will also focus on the defence, railways and capital goods sectors.

  • Minister of State Finance, Pankaj Chaudhary, says that the 2023-24 budget will accommodate the expectations of all sections of society. Pradeep Misra, CMD – REPL, adds that infrastructure spending is likely to go up by 10% of GDP in the upcoming budget. Infrastructure spending will boost employment and generation of capital in the economy.

  • Finance Minister Nirmala Sitharaman will present the last full budget of this government today. According to Economic Survey, India’s GDP growth is expected to be in the range of 6-6.8% for 2023-24. The Centre also plans to reduce the fiscal deficit and bring it to the level of 5.8-5.9% from 6.4%.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
01 Feb 2023
Market closes lower, ICICI Sec upgrades its rating on Indian Hotels to ‘Buy’ from ‘Add’

Trendlyne Analysis

Nifty 50 closed in the red after falling nearly 350 points from the day's high. However, Sensex rose over 150 points and closed in the green on a volatile day of trade. Markets showed mixed sentiments toward Finance Minister Nirmala Sitharaman's last full year’s budget before the elections in 2024.

Major Asian indices close higher, in line with the US indices, which also closed in the green on Tuesday. European indices traded in the green amid positive global cues. US stocks rose on Tuesday ahead of the US Fed rate hike decision. Analysts expect the Fed to announce a 0.25% interest rate hike, its smallest increase since March 2022. The tech-heavy Nasdaq 100 rose 1.6% while the Dow Jones settled 1.1% higher. Brent crude oil prices rebounded on Tuesday after falling over 2% on Monday due to demand concerns. In January, crude oil prices remained volatile as traders assessed China’s economy reopening amid demand concerns due to slowing global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. However, Nifty FMCG closed higher. All other major sectoral indices closed in the red post the unveiling of the budget. Nifty IT closed in the green, taking cues from the Nasdaq 100, which rose over 1% on Tuesday.

Nifty 50closed at 17,616.30 (-45.9, -0.3%), BSE Sensexclosed at 59,708.08 (158.2, 0.3%) while the broader Nifty 500closed at 14,847.65 (-87.9, -0.6%)

Market breadth is highly negative. Of the 1,955 stocks traded today, 538 showed gains, and 1,376 showed losses.

  • SBI Life Insurancesees a short buildup in its February 23 future series as its open interest rises 33% with a put-call ratio of 0.42.

  • HDFC Life Insurancefalls 12% in trade, nearing a 52-week low after the revision of income tax slabs in the Union Budget. Reports suggest that this would impact taxpayers’ decisions on buying high-premium products in the insurance market. The stock is trading below its third support or S3.

  • Green energy stocks like JSW Energy, Sterling and Wilson Renewable Energy, Inox Wind and Inox Wind Energy rise post announcement of an outlay of Rs 20,700 crore, including the Centre's support of Rs 8,300 crore, for the construction of an interstate transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh.

  • Maruti Suzuki’s January total wholesales rise 11.8% YoY to 1,72,535 units, led by 14.3% growth in domestic passenger vehicle sales. Utility and mini-segment cars see healthy growth in sales. The stock shows up in a screener for companies with high TTM EPS growth.

  • Medplus Health Services, Tata Power Co and Emami rise 3.8%, 3.7% and 3.9% respectively over the past week, ahead of their Q3FY23 results on Friday.

  • ICICI Securities upgrades its rating on Indian Hotels Co to ‘Buy’ from ‘Add’ and increases the target price to Rs 399 from Rs 366. This implies an upside of 23.7%. The brokerage cites continued demand momentum, strong leisure travel and increasing business travel for revising its recommendation and target price. It expects the company’s revenue to grow at a CAGR of 31.2% over FY22-25.

  • Punjab National Bank, Trident and Tech Mahindra's Q3FY23 net profit falls 43%, 32% and 5.3% YoY respectively

  • NCC receives four new orders worth Rs 1,755 crore in January from state government agencies pertaining to the electrical division.

  • India’s manufacturing PMI falls to a three-month low of 55.4 in January, compared to 57.8 in December 2022. However, the reading remains above 50 for the 19th consecutive time.

  • Power Grid Corp of India’s Q3FY23 net profit rises 10.7% YoY to Rs 3,645.3 crore and revenue grows 7.8% YoY. This growth comes on the back of a healthy performance in the transmission segment. The stock shows up in a screener for companies with revenue increasing sequentially over the past four quarters.

  • GST revenue collections rise 24% to Rs 1.55 lakh crore in January, crossing the Rs 1.50 lakh crore mark for the third time.

  • Bajaj Auto's total monthly wholesales in January decline 21% YoY to 2.9 lakh units due to a 25% YoY fall in two-wheeler sales. Total domestic wholesales rise 16% YoY, while total exports fall 47% YoY. Two-wheeler exports and commercial vehicle exports dip 46% and 53% YoY respectively. The stock shows up in a screener for companies with strong momentum.

  • ACC trades flat as its Q3FY23 net profit falls 61% YoY to Rs 110.45 crore on the back of increasing costs for the company. Purchase of stock expenses rises 2X YoY with power, fuel and raw material costs rising 20% in Q3. The company’s revenue also increases 7% on an increase in sales volumes. It shows up in a screener of companies with no debt.

  • Global indices like Dow Jones, S&P 500 and Nasdaq close in the green in the previous trading session. Asia-Pacific markets also trade higher as investors look ahead to the US Federal Reserve’s decision on rate hikes.

  • Porinju Veliyath adds Lakshmi Automatic Loom Works to his portfolio in Q3FY23, buys a 1.1% stake in the company.

  • Rakesh Jhunjhunwala's portfolio buys a 0.4% stake in Karur Vysya Bank in Q3FY23, now holds 4.7% in the company.

  • Coal India’s Q3FY23 net profit surges 70.1% YoY to Rs 7,755.6 crore on the back of higher realisations and high premiums in the e-auction sale. Revenue grows by 23.7% YoY led by strong volume growth. The company shows up in a screenerfor stocks in the PE Buy zone with high durability and rising momentum scores.

Riding High:

Largecap and midcap gainers today include Indian Hotels Company Ltd. (326.70, 8.54%), Cholamandalam Investment & Finance Company Ltd. (749.80, 6.06%) and Dixon Technologies (India) Ltd. (2,806.60, 4.66%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (2,135.35, -28.20%), Adani Ports & Special Economic Zone Ltd. (495.15, -19.18%) and Ambuja Cements Ltd. (334.10, -16.72%).

Movers and Shakers

45 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Indian Hotels Company Ltd. (326.70, 8.54%), EIH Ltd. (175.45, 7.64%) and Borosil Renewables Ltd. (509.60, 6.86%).

Top high volume losers on BSE were ICICI Prudential Life Insurance Company Ltd. (401.95, -11.15%), HDFC Life Insurance Company Ltd. (515.70, -10.91%) and Max Financial Services Ltd. (752.95, -9.90%).

Avanti Feeds Ltd. (384.60, -0.08%) was trading at 13.9 times of weekly average. Cholamandalam Financial Holdings Ltd. (597.00, 0.18%) and Lemon Tree Hotels Ltd. (80.95, 5.82%) were trading with volumes 7.7 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks overperformed with 52-week highs, while 14 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Carborundum Universal Ltd. (975.35, 0.25%), IDFC Ltd. (84.35, -1.63%) and Indian Bank (292.75, -3.94%).

Stocks making new 52 weeks lows included - Adani Ports & Special Economic Zone Ltd. (495.15, -19.18%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,250.00, 0.30%).

25 stocks climbed above their 200 day SMA including EIH Ltd. (175.45, 7.64%) and Cholamandalam Investment & Finance Company Ltd. (749.80, 6.06%). 24 stocks slipped below their 200 SMA including HDFC Life Insurance Company Ltd. (515.70, -10.91%) and Max Financial Services Ltd. (752.95, -9.90%).

 
Trendlyne Talk
Trendlyne Talk
01 Feb 2023

Jan 2023 (New)

1) CEO Salaries Dashboard - Track the Highest paid CEOs and Directors. Sort the data feed for different stock groups or your preferred sector/industry. Example: see highest paid CEOs in IT, Banks, and Cement.

2) Trendlyne Widgets - Add widgets to your website and app by adding a single line of code: ‘Check Before You Buy’, SWOT Analysis and QVT Score on your app/website.

3) ASM and GSM Dashboard - Checkout stocks listed on the Long/Short Term Additional Surveillance Measure (ASM) and Graded Surveillance Measure (GSM) framework. The list shows active stocks and stocks which have exited the list.

Dec 2022

NSE data feed has now been shifted from 15 minutes delay to 1 minute delay. Get your analysis and alerts with minimal delay now.

1) Sign up and Sign in using email OTP  - Let go of the hassles of a password. You can now sign up and sign in with just an OTP. Visit the FAQ section for more details.

2) Track ETFs from the indices - - know the ETFs tracking the indices like Nifty 50, BSE Sensex etc.

3)Relative returns screeners now support sectors and industries. Find out which stock is outperforming or underperforming its sector or industry. Trendlyne offers you to compare a stock performance with its industry/sector for 18 different options each.

Try Query: 1Yr change % > Sector 1Yr change % and save it as your personal screener.

4) Relative Value screens launched - Compare sales growth, profit growth, PE, Price to Book, PEG etc for stocks with their sectors, industries and indices to find out the best and worst performers in valuation and growth.

Try Query:Net Profit Annual YoY Growth % > Industry Net Profit Growth Annual YoY %

Nov 2022

1) Price Target Alert now supports Mutual Funds as well - Search for your favourite mutual fund and set price alerts.

2) Earnings calls are available as a podcast now. Open this link in your favourite podcast app - https://trendlyne.com/feeds/earning-calls-podcast-rss/

3) GSM and ASM both are available from the BSE exchange. Use it in a screener or check active and exited stocks. You can find the status by clicking on the ASM icon near the stock name.

4) Insights under every stock name are available now. 

Stock Insights

Oct 2022

- Forecaster Dashboard - analysts' estimates section launched. Forecaster FAQ available in the FAQ section.

- New Mobile app now has the following features:

  • Sector industry dashboard and constituents - Check out how sectors, industries and indices are faring in the market with a heat map.
  • Email alerts - Set daily alerts on quarterly results, analyst reports, and conference/earnings calls. Set hourly alerts for all corporate announcements in your watchlist and portfolio directly in your inbox.
  • Stock Groups in Screeners You now have the option to filter stocks using the stock group option in your screeners.
  • More Screeners listing - forecaster, relative valuation - You can now check if your stock is expensive or cheaper compared to its industry, sector or index. You can also checkout stocks that analysts are bullish or bearish about!
  • Navigation overhaul - Download the latest version of the app 
  • User Metric list in parameter lists - Now filter stocks from your list of metrics while browsing through screeners.
  • Index Constituents - Find what stocks exist in the index universe and how they are faring in the market.
  • Design refresh on more pages - Download the latest version of the app

Sep 2022

1) 150+ new technical parameters added to screeners. See the whole list here and search for the work "Technicals" to see all the 322 parameters available.

2) Need technical analysis on a 5 min or 15 min basis. How about 2 hours - all of these are now available on the new technical page. Checkout Infosys technicals for 5 minute trends and technicals.

Aug 2022

1) Indices, Sector and Industry dashboard - get definitive market performance breakdown for any period. Deep dive by going into the sector or Industry

July 2022

1) Segment Analysis  - Check the Sales and Profit segmentation of the companies - which business units are contributing to how much sales and profit?

2) FNO Participants wise OI - Are FIIs going long or short in derivatives, what about MF? Find the current position and comparison with past data.

May 2022

1) Compare any two stocks: You hold Infosys but wonder about TCS. You have ICICI Bank but dream about HDFC Bank. Is the grass really greener on the other side? Now you can find out with our Compare Stocks tool, where you can compare a stock with any other.

2) IPO Dashboard: The new IPO Dashboard analyzes all live and upcoming IPOs, providing strengths and weaknesses of upcoming listings as well as the performance (including gains till date) of recent listings. See the dashboard as well as details of new IPOs including LIC, Venus Pipes and Delhivery. 

3) And the Trendlyne app just got prettier and more powerful: We have added new updates, including Futures & Options and Dark Mode. Update/download the app to get the new features.

Mar 2022

-Data Downloader launched. With this you can select preferred list of metrics to download, and multiple watchlists of stocks. 

- Forecaster detailed table in Financials and in forecaster

Feb 2022

- ASM is now available on the website. Screener parameters ASM Long term stage  and  ASM Short term stageare available as premium parameters.

- Import portfolio V2 launched. Import from a excel file directly.

- Checklist launched for Debt Mutual Funds

- Company brief, directors and board salary.

Jan 2022

- Forecaster is available on mobile apps

Dec 2021

Forecaster is available to GuruQ and StartQ subscribers

Oct 2021

iOS app is available on Apple Appstore

Rapid Results  lets you keep track of results as they are declared

Sep 2021

MF Checklist Check before you buy

BSE quarterly results notes are available in financial tables

Relative Performance screeners are available here

17 Aug 2021

Export Super

14 Jun 2021

Create custom parameters and use them in my metrics and screeners. Blog Post here 

8 Jun 2021

Target Price Alerts are available here

1 Jun 2021

Stock Overview page new version release with timeline for corporate events 

8 May 2021

Results PDF are now available in the financial tables for each quarter

10 Apr 2021

Superstar pages now support 9 quarters worth of history. 

06 Apr 2021

1. Stock overview - Manage metrics: You can populate your favorite metrics and parameters in the stock overview page. Insights below each parameter are also available. This solves the issue of  '"X" should be added to the list'. You have full control over it now.

Overview Metrics

31 Mar 2021

1. My Notes List: You can check all your notes from a single page from Watchlist -> My Notes. Link

2. SWOT in screeners: Premium subscribers can now query SWOT numbers in their screeners. "SWOT Strengths", "SWOT Weakness", "SWOT Threats" and "SWOT Opportunities" can now be used in screeners like:

SWOT Strengths  > 10  AND SWOT Threats  < 6   

19 Mar 2021

F&O pages: F&O pages are being revamped. 

19 Mar 2021

See Details: Click on 'see details' on any table to see the details of the stock without navigating away from the table.

See Details

10 Mar 2021

1. Save Charts configuration: Stock charts and F&O charts now have a'save configuration' option. This lets you save the studies as well as the chart type - candlestick, line or OHLC. When you navigate to the new page, this configuration is automatically loaded for you. 

2. Lifetime High and Lifetime Lows: "All Time High" and "All Time Low" are now available in the screening module for premium subscribers.

08 Mar 2021

Relative Strength screeners are available here now. Comparison parameters are available for Nifty50, Nifty500 and Sensex and parameters like Nifty50 Five Years change % as well as relative returns parameters like Relative returns vs Nifty50 five years% are also available. Try a screener like the following to fetch stocks which consistently outperform the indices using Create Screener

Qtr Change % > Nifty50 Quarter change % AND
1Yr change % > Nifty50 Year change % AND
2Yr price change % > Nifty50 Two Years change % AND
5Yr price change % > Nifty50 Five Years change % 

05 Mar 2021

We have been working on the new Stock Overview pages. The overview page now supports the following summaries

- Peer comparison radar charts under financials

- Documents now have Annual Reports, Earnings calls and Analyst presentations made by the company. This is great to hear what the management has to say about the company. Videos are also available in this section

- Technicals, Shareholding, Deals and Corporate Actions summaries are all available in a single page along with stock News.

02 Mar 2021

1. Corporate announcement alerts are now available as part of Alpha alerts as hourly and daily digests to subscribers. Add any stock to your watchlist and Portfolio and if you have the alert active, you will be notified on your email.

2. Events alerts are now available as part of Alpha alerts to all users. You will be notified on email for upcoming events like Bonus, Splits, Dividends, Result board meetings etc.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Jan 2023
Market closes flat, Sun Pharma's Q3FY23 net profit grows by 5.2% YoY to Rs 2,166 crore

Trendlyne Analysis

Indian indices closed flat after switching between losses and gains throughout the day. Other Asian indices closed lower, in line with the US indices, which closed in the red on Monday. European stocks traded lower than Monday’s levels amid weak global cues. US stocks fell on Monday as investors look ahead to the Fed’s interest rate decision and earnings announcements from major companies this week. The tech-heavy Nasdaq 100 index fell 2% while the Dow Jones closed 0.8% lower. Brent crude oil futures traded lower after falling nearly 2% on Monday. However crude oil prices are on an uptrend since two weeks after China reopened its economy amid softening global inflation.

Nifty Smallcap 100 and Nifty Midcap 100 closed sharply higher, despite the benchmark index closing flat. Nifty Auto and Nifty Metal closed higher than Monday’s levels. Nifty IT closed in red, taking cues from the Nasdaq 100, which closed sharply lower on Monday.

Nifty 50closed at 17,662.15 (13.2, 0.1%), BSE Sensexclosed at 59,549.90 (49.5, 0.1%) while the broader Nifty 500closed at 14,935.50 (81.3, 0.6%)

Market breadth is ticking up strongly. Of the 1,950 stocks traded today, 1,510 were on the uptrend, and 393 went down.

  • Relative strength index(RSI) indicates that stocks like Persistent Systems, Coforgeand Max Financial Servicesare in the overbought zone.

  • Sun Pharmaceutical Industries' net profit grows by 5.2% YoY to Rs 2,166 crore in Q3FY23. A rise in revenue aids the EBITDA margin to grow marginally by 30 bps YoY, despite an increase in expenses. The company shows up in a screener of stocks with increasing revenue for the past two quarters.

  • Ashok Leyland, Raymond and Redington's weekly average delivery volumes rise ahead of their Q3 results tomorrow.

  • The Economic Survey points out that commodity prices rose amid geopolitical tensions and adds that inflation levels are high due to elevated food and energy prices.

  • Lupin receives tentative approval from the US Food & Drug Administration under the US President's Emergency Plan for AIDS Relief for its new drug applications for dolutegravir, emtricitabine and tenofovir alafenamide (DETAF) tablets. The tablets will be manufactured at the company’s facility in Nagpur, Maharashtra.

  • Punjab National Bank is surging as its net profit rises 52.9% QoQ to Rs 628.9 crore in Q3FY23 after completely provisioning for a fraud account in Q2FY23. This leads to a fall in provisions by 3.9% QoQ. The bank's asset quality improves as its gross and net NPAs decline by 72 bps and 50 bps QoQ respectively. The company features in a screener of stocks with increasing revenue every quarter for the past three quarters.

  • Finance Minister Nirmala Sitharaman tables The Economic Survey 2023. It states that India’s FY23 GDP growth is at 7% and pegs GDP for FY24 at 6-6.8%.

  • Utilities, Commercial Services & Supplies, Retailing and Transportationsectors fall more than 10% in the past month.

  • SRF is rising as its board of directors approves capex plans of Rs 595 crore for the production of specialty fluoropolymers and Rs 110 crore to set up a facility to produce 300 MT of SS20 per year at Dahej. It would take 24 months to produce specialty fluoropolymers and 10 months to add the proposed capacity of SS20.

  • Telecom stocks like GTL Infrastructure, Optiemus Infracom, Indus Towers, Route Mobile and Tata Teleservices (Maharashtra) are rising in trade. All constituents of the broader sectoral index S&P BSE Telecom are also trading in the green.

  • ICICI Direct upgrades its rating on Indraprastha Gas to ‘Buy’ from ‘Hold’ with a target price of Rs 490, indicating an upside of 16.1%. The brokerage turns positive on the firm’s prospects on the back of rising production volumes, a decline in gas sourcing costs and expansion into newer markets. It expects the company’s net profit to grow at a CAGR of 11.3% over FY22-25.

  • IIFL Finance is rising as its Q3FY23 net profit grows 22.1% YoY to Rs 378.3 crore. A rise in interest and fees & commission income helps the revenue grow 17.9% YoY. The lender's asset quality improves as its gross and net non-performing assets (NPAs) fall 70 bps and 40 bps YoY respectively. The company features in a screener of stocks with improving cash flow and good durability.

  • International Monetary Fund (IMF) expects India’s GDP to slow down to 6.1% in 2023 from 6.8% in 2022. It has also lowered its forecast for global growth to 2.9% in 2023.

    IT stocks like Tech Mahindra, Coforge, LTIMindtree and HCL Technologies are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • PSU Bank stocks like Punjab National Bank, Bank of Baroda, Bank of Maharashtra and Punjab & Sind Bank are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • N Srinivasan, Managing Director of CG Power and Industrial Solutions, says the company’s overall order book is at Rs 4,100 crore. He expects revenue of above Rs 6,000 crore for FY23.

  • Tech Mahindra’s Q3FY23 net profit marginally grows by 0.8% QoQ to Rs 1,296.6 crore despite falling attrition rates and subcontractor costs. Revenue grows by 4.6% QoQ on the back of moderate demand. The stock ranks high on Trendlyne’s checklist with a score of 52.17%.

  • Kansai Nerolac Paints decides to sell its land at Kavesar, Thane, to Shoden Developers, a group company of the House of Hiranandani group, for Rs 655 crore. The total land area is around 96,180 square meters. The stock ranks high on the Trendlyne checklist score.

  • Bharat Petroleum Corp’s Q3FY23 net profit falls 36.7% YoY to Rs 1,747 crore as costs increase. High crude oil prices cause raw material costs to rise 23% YoY. Reports suggest that stagnant retail prices have also hurt the company’s margins. It shows up in a screener for stocks with a declining net profit margin YoY.

  • KEC International is rising as it bags orders worth Rs 1,131 crore across its various business segments. The company secures transmission & distribution contracts in India, Africa and North America. It has also won orders in its civil and cable segments.

  • Larsen & Toubro’s Q3FY23 net profit rises 24.3% YoY to Rs 2,552.9 crore and revenue grows 17.3% YoY to Rs 46,389.7 crore. This growth is led by better execution of infrastructure projects and strong traction in the IT & Technology services business. The stock shows up in a screener for companies with increasing net profit sequentially for the past two quarters.

Riding High:

Largecap and midcap gainers today include Bharat Electronics Ltd. (94.95, 6.75%), Gujarat Fluorochemicals Ltd. (2,777.40, 6.70%) and Vedant Fashions Ltd. (1,186.00, 6.20%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,108.20, -10.00%), Adani Wilmar Ltd. (466.45, -5.00%) and Adani Power Ltd. (223.80, -4.99%).

Crowd Puller Stocks

38 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Gujarat Ambuja Exports Ltd. (257.90, 12.62%), Kalyan Jewellers India Ltd. (117.95, 12.33%) and EID Parry (India) Ltd. (543.85, 12.20%).

Top high volume losers on BSE were BASF India Ltd. (2,439.35, -6.21%), Laurus Labs Ltd. (330.30, -3.36%) and Tech Mahindra Ltd. (1,015.00, -2.04%).

Orient Electric Ltd. (259.50, -0.75%) was trading at 15.0 times of weekly average. Century Textiles & Industries Ltd. (704.90, 5.41%) and Syngene International Ltd. (566.70, -0.12%) were trading with volumes 8.9 and 8.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks made 52-week highs, while 16 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (381.65, 2.15%), AIA Engineering Ltd. (2,747.45, 3.88%) and Carborundum Universal Ltd. (972.90, 0.76%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,774.00, 3.85%) and Aurobindo Pharma Ltd. (408.15, -0.78%).

28 stocks climbed above their 200 day SMA including Bharat Electronics Ltd. (94.95, 6.75%) and Tejas Networks Ltd. (566.65, 5.84%). 4 stocks slipped below their 200 SMA including TCI Express Ltd. (1,720.00, -1.14%) and Cholamandalam Investment & Finance Company Ltd. (706.95, -0.53%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Jan 2023
Market closes lower, Data Patterns' Q3FY23 net profit surges by 271.3% YoY to Rs 33.3 crore

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 rising over 250 points from the day’s low on a volatile day of trade. However, European shares traded lower than Friday's levels. Most Asian indices closed higher except for the Hang Seng index, which closed in the red. On Friday, US stocks closed marginally higher as economic data and guidance from corporate earnings indicated softening demand and cooling inflation. The S&P 500 closed nearly 1% higher while the Dow Jones rose 0.1%. Crude oil prices traded flat following tensions in the Middle East due to a drone attack on Iran and also expected higher oil demand from China.

Nifty Smallcap 100 closed in the red, despite the benchmark index closing in the green. Nifty Energyand Nifty FMCG closed lower than Friday’s closing levels. Nifty IT closed in the green, following the Nasdaq 100, which closed higher on Friday.

Nifty 50closed at 17,648.95 (44.6, 0.3%), BSE Sensexclosed at 59,500.41 (169.5, 0.3%) while the broader Nifty 500closed at 14,854.20 (-20.6, -0.1%)

Market breadth is in the red. Of the 1,986 stocks traded today, 748 were on the uptrend, and 1,181 went down.

  • TVS Motor Cobeats Bajaj Autoin YoY revenue & net profit growth, one-year price change and MF holdings, but lags in PE ratio, annual RoE, one-year dividend yield and quarter price change.

  • Bajaj Finance, Ratnamani Metals & Tubes, KEI Industriesand Radico Khaitanare trading above their second resistance or R2 leveldespite markets trading lower.

  • Keki Mistry, Chief Executive Officer of HDFC, warns of another 25 bps rise in interest rates. He iterates that increasing capital rate tax gains is not a good idea. However, maximum interest, which is tax deductible, needs to be increased, he adds.

  • GAIL India is falling as its Q3FY23 net profit declines 89.1% YoY to Rs 413.8 crore on the back of the purchase of stock in trade surging more than 2X YoY. However, revenue rises 37.3% YoY as the natural gas marketing segment grows 61.1% YoY. The stock shows up in a screener for companies with declining net profit sequentially for the past three quarters.

  • Data Patterns surges more than 10% with high volumes as its net profit grows 271.3% YoY to Rs 33.3 crore. Revenue is up 155% to Rs 11.8 crore in Q3FY23. Srinivasagopalan Rangarajan, Chairman and Managing Director of the company, says, "With the expectation of new orders in Q4, we are focused on improving execution to promote operating leverage and maintaining a diversified order book."

  • The Centre may consider a capital booster worth Rs 4,000 crore for general insurance companies United India, Oriental Insurance and National Insurance in the upcoming budget, say reports. This is to help these insurers meet their solvency needs.

  • Laurus Labs’ Q3FY23 net profit rises 32.1% YoY to Rs 203 crore and revenue increases 50.2% YoY to Rs 1,544.8 crore. This growth is driven by the robust demand in its synthesis and active pharmaceutical ingredient businesses. The stock shows up in a screener for companies with revenue increasing sequentially for the past three quarters.

  • Welspun India enters into a brand licensing agreement with Disney to manufacture and distribute home textile products in the Europe, Middle-East and Africa (EMEA) region, according to reports.

  • AGI Greenpac is surging as its Q3FY23 net profit grows 80.8% YoY to Rs 53.2 crore. A rise in revenue from packaging products aids growth by 43%. EBITDA margin declines marginally by 40 bps YoY owing to rise in employee benefits, fuel and other expenses. The company shows up in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

  • ICICI Securities upgrades the rating on AIA Engineering to ‘Buy’ from ‘Add’ and raises the target price to Rs 3,258 from Rs 2,994, implying an upside of 22.5%. The brokerage is positive about its prospects given the scale-up in volume, capacity expansion, strong business moat and robust balance sheet. It expects the firm’s revenue to grow at a CAGR of 17.8% over FY22-25.

  • ACC, Max Financial Services andPCBL's weekly average delivery volumes rise ahead of their Q3 results tomorrow.

  • Hinduja Global Solutions is rising as its board of directors approves the buyback of 60 lakh shares for Rs 1,700 each. The company has fixed March 6 as the record date to determine the shareholders eligible for the buyback.

  • Gautam Saraogi, CEO of Go Fashion (India), says the company’s gross margin is at 62% in Q3FY23. He expects volume growth of 5% for store sales.

  • HFCL is rising as it bags orders worth Rs 206.7 crore from Reliance Projects & Property and Reliance Retail to supply optical fibre cables. The company shows up in a screener for stocks with consistently high returns over the past 5 years.

  • Bajaj Finance, Ratnamani Metals & Tubes and Sun Pharma are trading above their second resistance of R2 level in a volatile market today.

  • Genus Power Infrastructures wins order worth Rs 2,855.96 crore for appointment of advanced metering infrastructure service provider, including design of AMI system with supply, installation and commissioning of smart prepaid meters, DT metering, and HT & feeder metering level energy accounting.

  • Morgan Stanley prefers the Indian cement sector over steel. The brokerage maintains its ‘Overweight’ stance on Ultratech Cement and Shree Cements, and ‘Underweight’ on ACC, Jindal Steel & Power and JSW Steel.

  • Power stocks like Adani Transmission, Adani Green Energy, Adani Power and Power Grid Corp of India are falling in trade. The broader sectoral index BSE Power is also trading in the red.

  • Bharat Electronics’ Q3FY23 net profit goes up 2.8% YoY to Rs 613 crore, with revenue rising 11%. However, the cost of materials consumed inches up 10.8% YoY, affecting EBITDA margins which fell 160 bps YoY. It shows up in a screener of stocks with improving RoE for the past two years.

  • Vedanta’s Q3FY23 net profit falls 41% YoY to Rs 2,464 crore, with revenue rising marginally. This is because of weak commodity prices due to drop in zinc and aluminium prices in Q3. However, the company has announced an interim dividend of Rs 12.5 per share for FY23.

  • Bajaj Finance’s Q3FY23 net profit rises 40% YoY to Rs 2,973 crore on the back of increasing net interest income by 24% YoY and a fall in provisions and contingencies. However, asset under management (AUM) is up only 27% YoY due to the slow growth of the mortgage portfolio and B2B loan disbursements. The NBFC shows up in a screener with quarterly growth in net profit and margins.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (146.95, 7.26%), FSN E-Commerce Ventures Ltd. (133.85, 6.31%) and Vodafone Idea Ltd. (6.80, 6.25%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,342.40, -20.00%), Adani Green Energy Ltd. (1,189.00, -20.00%) and Adani Transmission Ltd. (1,708.20, -15.19%).

Movers and Shakers

20 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Aegis Logistics Ltd. (373.60, 11.92%), Adani Enterprises Ltd. (2,892.85, 4.76%) and Ratnamani Metals & Tubes Ltd. (2,092.30, 4.63%).

Top high volume losers on BSE were Adani Green Energy Ltd. (1,189.00, -20.00%), Adani Transmission Ltd. (1,708.20, -15.19%) and EID Parry (India) Ltd. (484.70, -8.62%).

Vedant Fashions Ltd. (1,116.75, -3.63%) was trading at 7.9 times of weekly average. Thermax Ltd. (1,900.85, -0.24%) and Bharat Electronics Ltd. (88.95, -5.67%) were trading with volumes 4.8 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52-week highs, while 21 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (373.60, 11.92%), Carborundum Universal Ltd. (965.55, 2.92%) and Sun Pharmaceutical Industries Ltd. (1,051.70, 0.80%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,708.20, -15.19%) and Biocon Ltd. (233.45, -0.87%).

14 stocks climbed above their 200 day SMA including Easy Trip Planners Ltd. (52.05, 5.90%) and NLC India Ltd. (78.15, 4.62%). 31 stocks slipped below their 200 SMA including Adani Total Gas Ltd. (2,342.40, -20.00%) and GAIL (India) Ltd. (94.95, -4.24%).

 
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The Baseline
30 Jan 2023
Five analyst picks this week with upgrades in rating or target price
By Suhas Reddy

This week we take a look at analyst picks that saw an upgrade in their target price or rating from brokerages. 

  1. Jindal Steel and Power: ICICI Securities maintains its ‘Buy’ rating on this Iron & Steel Intermediate Products manufacturer and raises its target price to Rs 750 from Rs 605, which indicates a revision of 24%. With the new target price, the upside in the stock stands at 31.3%.

Analysts Amit Dixit, Mohit Lohia and Pritish Urumkar believe the ramp-up in captive thermal coal production and the acquisition of Monnet Power Co’s assets will improve cost efficiencies. They also see an increase in volume due to the company’s logistical advantages and capacity expansion. Although the analysts expect realisations to fall, they see cost efficiencies driving the expansion of margins. 

The analysts add, “Jindal Steel and Power (JSPL) has been the top performer among mainstream ferrous players with a robust return of 45% in the past 3 months.” They anticipate the company’s growth to be driven by cost efficiencies and volume growth. The analysts expect Jindal Steel’s revenue to grow at a CAGR of 9.1% over FY22-24. 

  1. SBI Life Insurance Co: KRChoksey keeps its ‘Buy’ rating on this Life Insurance company and increases its target price to Rs 1,750 from Rs 1,550, a revision of 12.9%. With the new target price, the upside now stands at 42.7%.

Analyst Abhishek Agarwal says the company is trading at an attractive valuation. Even though its Q3FY23 results have been a mixed bag, he expects healthy growth in the coming quarters. The renewal business has seen robust growth along with absolute value of new business (VNB), but the VNB margin contracted due to a higher share of Unit Linked Insurance Plan (ULIP). According to the analyst, “The company had been reporting 30%+ margins in the past few quarters but it contracted in Q3FY23 on the back of a higher share of the ULIP segment.” He believes that the strong margin growth in previous quarters will keep the annual margins healthy at 28-30% in FY23.

Agarwal expects the non-par guaranteed products to continue seeing healthy traction in the coming quarters. He believes that the insurance firm’s net profit will grow at a CAGR of 13.1% over FY22-25.

  1. Canara Bank: Motilal Oswal maintains its ‘Buy’ rating on this PSU Bank and raises its target price to Rs 410 from Rs 300, indicating a revision of 36.7%. The new target price implies an upside of 42.9%. 

Analysts Nitin Aggarwal and Yash Agarwal remain positive on the company’s prospects as it has posted “strong operating performance supported by healthy traction in loan growth and improvement in asset quality, while margin expansion drove NII.” They add that loan growth is also healthy, led by the corporate, retail and agri segments. The improvement in asset quality, led by lower slippages and higher recoveries are seen as key positives by the analysts.

They believe, along with this healthy operational performance, margin expansion and lower provisions have aided in improving profitability. The analysts cite higher NII and lower provisions for raising their net profit estimates by 5% for FY23 and FY24 each. They anticipate the bank’s net profit to grow at a CAGR of 27.4% over FY23-25. 

  1. Supreme Industries: ICICI Direct maintains its ‘Buy’ rating on the Plastic Pipes manufacturer and raises its target price to Rs 2,880 from Rs 2,600, implying a revision of 10.8%. The new target price implies an upside of 12.7%.

Analysts Sanjay Manyal, Hitesh Taunk and Ashwi Bhansali write that the company has posted healthy revenue growth on a YoY basis in Q3FY23, on the back of good volume growth. However, they point out that the margins and net profit are lower YoY but have expanded sequentially. They add that margins will gradually improve as inflation declines.

The analysts believe the company will be a major beneficiary of the Centre’s flagship scheme, ‘Nal Se Jal’, in the long term. They also expect the mix of value-added products in its portfolio to increase in the coming quarters. The analysts say, “Rising contribution of value-added products in the overall top line (increased from 35% in FY18 to ~38% in FY22) will keep the EBITDA margin elevated.” Manyal, Taunk and Bhansali expect the firm’s revenue to grow at a CAGR of 14.1% over FY22-25. 

  1. LTIMindtree: IDBI Capital upgrades its rating on this IT Consulting & Software stock to ‘Buy’ from ‘Hold’ and raises its target price to Rs 5,000 from Rs 4,795, implying a revision of 4.3%. The new target price implies an upside of 13.1%.

Even though the company’s revenue has grown just 1.9% QoQ, analysts Dhevang Bhatt and Dhawal Doshi believe its revenue growth will increase as the merger-related issues iron out. They add, “In terms of synergies, the company is expected to benefit from cross-sell & up-sell opportunities, diversification of portfolio, inorganic growth, end-to-end services, client mining and larger deals.” The analysts also like the IT firm’s focus on winning efficiency deals in legacy and digital, allowing it to save costs.

The analysts note that the firm's cross-sell opportunities and ability to win large deals allow it to sustain healthy revenue growth in the long term. They also see margins improving in the medium term as supply-side pressures ease and operational efficiencies kick in. They expect the firm’s revenue to grow at a CAGR of 17.7% over FY22-25.

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

(You can find all analyst picks here)