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Trendlyne Analysis

Nifty 50 closed at 17,856.50 (-37.0, -0.2%), BSE Sensex closed at 60,682.70 (-123.5, -0.2%) while the broader Nifty 500 closed at 15,015.85 (-14.3, -0.1%). Of the 1,952 stocks traded today, 986 were on the uptick, and 901 were down.

Indian indices recovered from their day’s lows but still closed in the red. Reuter’s poll of economists indicated that Indian annual retail inflation likely rose to 5.9% in January from a 12-month low in December. Adani Total Gas and Adani Transmission closed at their lower circuits while Adani Enterprises fell 3.9% in trade today after global index provider Morgan Stanley Capital International (MCSI) said it will cut the weights of these companies in its indices. Adani Group hired US legal firm Wachtell, which represented Twitter in Elon Musk's $ 44 billion deal, to take on short-seller Hindenburg.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty closed over 1.3% higher led by DLF and Godrej Properties. However, Nifty Energy and Nifty FMCG closed lower than Thursday’s levels. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower. 

Most major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices and US indices futures. The UK’s economy stagnated in Q4CY22 as its GDP remained unchanged between the third and fourth quarters of CY22. However, the British economy narrowly avoided recession, which is technically defined as two consecutive quarters of falling output/GDP.

• MRFbeats Apollo Tyres in YoY revenue growth, annual RoCE and three-year average annual RoE. But it lags in YoY and QoQ net profit growth, PE ratio, MF holdings and broker average rating.

• Mahindra & Mahindra's net profit grows 34.7% YoY to Rs 2,676.6 crore in Q3FY23. Rise in sales in the automotive and farm equipment segments aids the revenue to increase by 29.8% YoY. The company shows up in a screener of stocks with improving revenue QoQ for the past four quarters.

• KPIT Technologies and CG Power & Industrial Solutions hit their all-time highs of Rs 849.9 and Rs 327 per share respectively. KPIT Technologies has risen 16.9%, while CG Power & Industrial Solutions rose 10.3% over the past month.

• Axis Direct upgrades its rating on Ambuja Cements to ‘Buy’ from ‘Hold’ and lowers the target price to Rs 460 from Rs 555, implying an upside of 26.6%. The brokerage turns positive on the company due to its positioning in key markets, cost-saving initiatives and higher capacity utilisation.

• Chris Wood, Global Head of Equity Strategy at Jefferies, expects a recession in the second phase of 2023. In the Greed & Fear note, he mentions the changes that will be made to India's long-only portfolio–adding investment in Bajaj Finance and trimming stake in HDFC Life Insurance and ICICI Lombard General Insurance.

  The recent changes will involve adding investment in Bajaj Finance while trimming that in HDFC Life Insurance and ICICI Lombard General Insurance.https://t.co/KvK9FbtczS

  — Mint (@livemint) February 10, 2023

• Foreign institutional investors pull out Rs 3,951.6 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index futures receive the highest inflow of Rs 1,611.3 crore from foreign investors and mutual funds invest Rs 3,580.5 crore in the market.

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

• Lupin is falling as its net profit declines 71.9% YoY to Rs 153.5 crore in Q3FY23. EBITDA margin grows 340 bps YoY on the back of a decrease in raw material and other expenses. The company features in a screener of stocks with declining net profit and profit margin (YoY).

• Amit Uplenchwar, Director (Strategy & Subsidiaries Operations) of Kalpataru Power Transmissions, says the company’s order inflow could exceed the target of Rs 21,000 crore and be in the range of Rs 24,000-25,000 crore in FY23.

  #OnCNBCTV18 | Should be closer to 9% #EBITDA level by the end of #FY23. Will bring down topline #guidance from 15% to 12-14% for FY23. FY23 order inflow could be in the range of ?24,000-25,000 cr, says Amit Uplenchwar of Kalpataru Power pic.twitter.com/X93KOGB4oB

  — CNBC-TV18 (@CNBCTV18Live) February 10, 2023

• Suzlon Energy is rising as its Q3FY23 net profit surges more than 2X YoY to Rs 78.4 crore despite its revenue declining by 9.4% YoY. This improvement is due to the cost of raw materials declining 34.1% YoY. The company shows up in a screener for stocks with improving cash flow and a high durability score.

• Hindalco Industries, Shree Cements and Page Industries’ Q3FY23 net profits fall 62.9%, 41.5% and 29.1% YoY respectively.

• Housing Development Finance Corp, Titan and Berger Paints outperform the Nifty 50 index over the week post their Q3FY23 results.

• Elara India Opportunities Fund and Cresta Fund from Hindenburg's report sell 0.26% and 0.32% stakes respectively in Adani Transmission in Q3FY23.

• Sanjay Purohit, Group CEO of Sapphire Foods, says the company’s growth has normalised after 4-6 quarters. He expects revenue and EBITDA to grow 23-25% and 30-33% respectively for the next three years.

  #OnCNBCTV18 | Expect 23-25% #revenue & 30-33% #EBITDA growth for 3 years. Target 20% #margin in KFC & mid-teens margin in Pizza Hut. Consumer sentiment in Sri Lanka likely to remain weak for 2-3 quarters, says Sanjay Purohit of Sapphire Foods pic.twitter.com/s11P4Nsc5u

  — CNBC-TV18 (@CNBCTV18Live) February 10, 2023

• General Industrials, Banking & Finance and Media sectors trade above 3% over the past week.

• Pfizer appoints Meenakshi Nevatia as the Managing Director and Additional Director of the company for a period of five years with effect from April 3, 2023, subject to the approval of shareholders.

• One97 Communications (Paytm) is falling as 2.1 crore shares (3.4% equity) change hands in a block deal.

  #Paytm Large Trade | 2.1 cr shares (3.4% equity) change hands via block deal#BlockDealpic.twitter.com/5iAIgOxmB8

  — CNBC-TV18 (@CNBCTV18Live) February 10, 2023

• Zomato’s net loss widens to Rs 346.6 crore in Q3FY23 against a loss of Rs 63 crore in Q3FY22. Its finance and depreciation costs soar more than 4X YoY. However, Hyperpure and quick commerce revenues increase but revenue from the food delivery business falls in Q3. The stock ranks medium on the Trendlyne Checklist score.

• Mahindra & Mahindra inks an MoU with the Telangana government for its expansion plans at its manufacturing facility in Zaheerabad, Medak. The project would entail setting up a facility to develop and produce three- and four-wheeler electric vehicles.

• Voltas is falling as it posts a net loss of Rs 110.4 crore, compared to a net profit of Rs 96 crore in Q3FY22. This is on account of the rising cost of materials and a one-time provision of Rs 137.4 crore due to the cancellation of a contract. However, revenue grows 11.8% YoY led by the unitary cooling products segment.

• Life Insurance Corp of India’s Q3FY23 net profit rises nearly 27X YoY to Rs 6,334.2 crore and net premium income increases 14.5% YoY. This growth is driven by healthy expansion in market share and first-year premium income. The stock shows up in a screener for companies with RoA improving over the past two years.

Riding High:

Largecap and midcap gainers today include Aurobindo Pharma Ltd. (468.85, 6.33%), Indus Towers Ltd. (168.00, 5.40%) and CG Power and Industrial Solutions Ltd. (327.85, 5.27%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (650.55, -7.85%), Adani Transmission Ltd. (1,186.65, -5.00%) and Adani Total Gas Ltd. (1,255.40, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Campus Activewear Ltd. (420.15, 6.46%), Aurobindo Pharma Ltd. (468.85, 6.33%) and Punjab & Sind Bank (29.25, 4.84%).

Top high volume losers on BSE were Fine Organic Industries Ltd. (4,764.05, -5.53%), Garware Technical Fibres Ltd. (2,953.20, -5.43%) and Lupin Ltd. (737.15, -4.80%).

Alkem Laboratories Ltd. (3,292.70, 1.93%) was trading at 9.2 times of weekly average. Akzo Nobel India Ltd. (2,315.30, 4.20%) and United Breweries Ltd. (1,480.75, -4.45%) were trading with volumes 8.8 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks made 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Britannia Industries Ltd. (4,622.70, -0.32%), Carborundum Universal Ltd. (1,011.80, 4.51%) and Mahindra & Mahindra Financial Services Ltd. (265.05, -1.98%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,186.65, -5.00%) and Page Industries Ltd. (38,786.20, 2.18%).

16 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,258.50, 3.20%) and Glenmark Pharmaceuticals Ltd. (400.40, 1.55%). 10 stocks slipped below their 200 SMA including Astral Ltd. (1,941.65, -4.36%) and Havells India Ltd. (1,200.95, -2.74%).

Trendlyne Analysis

Nifty 50, BSE Sensexand the broader Nifty 500closed at 17,893.45 (21.8, 0.1%), 60,806.22 (142.4, 0.2%) and 15,030.10 (1.8, 0.0%) respectively, while the market breadth remained horizontal. Of the 1,947 stocks traded today, 895 were gainers and 983 losers. 

The Adani group will prepay a USD 500 million loan due next month, as several banks steered clear of the refinancing option. Adani group stocks closed in deep red, following the MSCI announcement that it will be making changes to the status of the group's stocks in the index. Meanwhile, France’s Total Energies put its USD 50 billion deal with the Adani group on hold.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, following the benchmark index. The Nifty Metal closed lower as heavyweight Adani Enterprises fell on the back of the MSCI inquiry. Nifty IT closed in the green, backed by gains in Infosys shares. 

In international markets, major Asian indices closed mixed. US indices futures traded lower as investors expect more rate hikes from the Fed to achieve the desired target of 2% inflation. Tech-heavy Nasdaq 100 closed 1.83% lower on Wednesday. European markets traded in the green as German consumer prices rose to 9.2% in January from a year ago, less than the anticipated 10%. This eased pressure on the European Central Bank to keep raising rates. UK is set to release GDP numbers on Friday, and they are expected to show that the economy flatlined in the fourth quarter, narrowly avoiding recession.

• Money flow index (MFI) indicates that stocks like Symphony, Blue Star, Procter & Gamble Health and KPIT Technologies are in the overbought zone.

• French company Total Energies puts its partnership with Adani group’s hydrogen venture on hold after the allegations raised by Hindenburg Research. The partnership was announced in June 2022 and Total Energies was set to have a 25% stake in the project.

  #AdaniCrisis | “Mr [Gautam] Adani has other things to deal with now, it’s just good sense to pause things while the audit goes forward," TotalEnergies Chief Executive Patrick Pouyanne was quoted as saying.
  
  Read more: https://t.co/YCKbkjRcsopic.twitter.com/Spm9LD88Xs

  — Scroll.in (@scroll_in) February 9, 2023

• Commodity Printing/Stationary, IT Training Services, Advertising & Media industries gain over 3% in trade today.

• Escorts Kubota, Graphite India andAstral’s Q3FY23 net profits fall 6.9%, 59.8% and 26.9% YoY respectively.

• Trent, Cummins India, Schaeffler India and NHPC are trading above their second resistance or R2 level.

• HSBC maintains its ‘Buy’ rating on Bharti Airtel with a target price of Rs 970. It expects the company’s return on invested capital (RoIC) to expand on the back of a rise in average revenue per user (ARPU). It adds that the growth outlook is strong due to the 5G rollout.

  #BrokerageRadar | HSBC on Bharti Airtel: Maintain Buy; Expect ROIC to expand with a rise in ARPU#StockMarket#StocksToWatch@HSBCpic.twitter.com/BvuF41n2Ae

  — ET NOW (@ETNOWlive) February 9, 2023

• India Railway Catering & Tourism Corp (IRCTC) is rising as its Q3FY23 net profit increases 22.4% YoY to Rs 255.5 crore. Revenue surges 69.9% YoY led by multi-fold growth in the catering segment. The stock shows up in a screener for companies with book value per share improving over the past two years.

• Hindalco’s Q3FY23 net profit falls 62.9% YoY to Rs 1,362 crore as EBITDA across Novelis (a subsidiary of Hindalco) and the upstream segment dips. However, revenue increases by 5.7% YoY. The stock ranks high on the Trendlyne Checklist score.

• MRF is falling despite its Q3FY23 net profit rising 17% YoY to Rs 174.8 crore and revenue increasing by 14.7% YoY. The company’s profitability improves amid a significant surge in the cost of materials. The stock shows up in a screener for companies with revenues increasing sequentially for the past four quarters.

• Analysts expect the RBI to raise interest rates by another 25 bps in April after it expressed concern over the stickiness of core inflation. The RBI also maintained the policy stance at ‘withdrawal of accommodation’.

  The RBI raised the repo rate by a widely expected 25 basis points (bps) on Wednesday, in its sixth straight rate hike in a row that took the total to 250 bps in the current fiscal year.https://t.co/g6vDCSXd97

  — Mint (@livemint) February 9, 2023

• SFK India's net profit rises 31.4% YoY to Rs 116.7 crore in Q3FY23. Growth in revenue and declining employee benefits expenses aid the EBITDA margin to rise by 430 bps YoY. It features in a screener of stocks with improving net profit and profit margin (YoY).

• One97 Communications (Paytm), CG Power and Industrial Solutions and Mahindra CIE Automotive outperform their sectors in the past month.

• KRChoksey upgrades its rating on Alembic Pharmaceuticals to ‘Buy’ from ‘Add’ and raises the target price to Rs 704 from Rs 694. This implies an upside of 34.3%. The brokerage believes robust demand in the Indian market and new product launches will offset the price erosion concerns in the US market.

• Mutual Funds' net inflow grows 2.5X MoM to Rs 11,373 crore in January from Rs 4,491 crore in December 2022, according to data released by the Association of Mutual Funds in India (AMFI).

  #BREAKING | AMFI Data:
  
  -Jan net inflow at Rs 11,373 cr vs Rs 4,491 cr MoM
  -Jan equity inflow at Rs 12,547 cr Vs Rs 7,303 cr MoM
  -Jan total AUM flat at Rs 40.8 lk cr
  -Jan equity AUM at Rs 15.2 lk cr Vs Rs 15.4 lk cr MoM#AMFI#MutualFundspic.twitter.com/zyjCatHmpz

  — ET NOW (@ETNOWlive) February 9, 2023

• Lupin is rising as it receives US FDA approval for its abbreviated new drug application (ANDA) for glycopyrrolate injection. It is the first approval for the drug manufacturer's new injectable facility in Nagpur. According to IQVIA, the injection had an estimated annual sales of $39 million in the US during CY22.

• UNO Minda is rising as its Q3FY23 net profit surges 59.9% YoY to Rs 162 crore and revenue rises 33.7% YoY. The growth comes on the back of increasing content per vehicle, a diversified product portfolio and new launches. The stock shows up in a screener for companies with low debt.

• Trent is rising in trade after reporting a 19.5% YoY increase in net profit to Rs 167 crore. Revenue grows 53.7% on the back of improving customer traction and sales from brands like Westside and Zudio, among others. The company shows up in a screener of stocks with strong annual EPS growth.

• Indian rupee depreciates to 82.58 from the previous close of 82.49 against the US dollar in early trade today amid continued foreign fund outflows and muted trend of domestic equities.

  #Rupee Check | Rupee opens at 82.58/$ vs Wednesday's close of 82.49/$#RupeeVsDollar#USDINR#INR#USD#USDollar#Dollarpic.twitter.com/5NmmsABJA1

  — CNBC-TV18 (@CNBCTV18Live) February 9, 2023

• Oberoi Realty's Q3FY23 net profit rises 50.3% YoY to Rs 702.6 crore, while its revenue increases 95.9% YoY. The positive performance is the result of robust sales upon the launch of Tower G in project Sky City. It shows up in a screener for stocks with improving cash flow and good durability.

• Britannia Industries, Cholamandalam Investment Finance Co and ACC outperform the Nifty 50 index over the week post their Q3FY23 results.

• Cummins India is rising after reporting an increase in net profit by 66% YoY to Rs 413.8 crore for Q3FY23. Revenue is up 26% YoY, aided by growth in domestic sales and exports. It shows up in a screener for stocks with growth in quarterly net profit and margin YoY.

• Samvardhana Motherson International’s Q3FY23 net profit surges 85.2% YoY to Rs 453.9 crore as demand recovers in Europe and India. Revenue rises 25.5% YoY, aided by growth in revenue across segments like wiring harnesses, modules and polymer products, among others. It shows up in a screener of stocks with high momentum scores.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and PB Fintech Ltd. (510.30, 5.93%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,925.70, -11.02%), Ambuja Cements Ltd. (357.80, -6.98%) and Adani Power Ltd. (172.80, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and Gujarat Pipavav Port Ltd. (98.45, 6.49%).

Top high volume losers on BSE were Restaurant Brands Asia Ltd. (99.50, -6.57%), Ircon International Ltd. (55.40, -4.07%) and MRF Ltd. (88,813.05, -3.75%).

Kansai Nerolac Paints Ltd. (417.90, 0.84%) was trading at 9.4 times of weekly average. Godrej Agrovet Ltd. (460.80, 2.45%) and Honeywell Automation India Ltd. (37,910.00, -2.96%) were trading with volumes 8.5 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52-week highs, while 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Cummins India Ltd. (1,578.35, 7.06%), Mahindra & Mahindra Financial Services Ltd. (270.40, 0.50%) and NCC Ltd. (92.90, -1.69%).

Stocks making new 52 weeks lows included - Page Industries Ltd. (37,960.15, -3.54%) and Thyrocare Technologies Ltd. (486.65, -0.36%).

18 stocks climbed above their 200 day SMA including Trent Ltd. (1,341.90, 8.56%) and PB Fintech Ltd. (510.30, 5.93%). 14 stocks slipped below their 200 SMA including Honeywell Automation India Ltd. (37,910.00, -2.96%) and Prince Pipes & Fittings Ltd. (595.25, -2.91%).

Trendlyne Analysis

Nifty 50 closed at 17,871.70 (150.2, 0.9%), BSE Sensex closed at 60,663.79 (377.8, 0.6%) while the broader Nifty 500 closed at 15,028.30 (126.1, 0.9%). Market breadth is in the green. Of the 1,951 stocks traded today, 1,169 were on the uptrend, and 717 went down. The Reserve Bank of India (RBI) raised the key repo rate by an expected 25 bps to 6.5% during the Monetary Policy Committee (MPC) meeting. It also increased its FY23 gross domestic product (GDP) growth estimate from 6.8% to 7%.

Adani Enterprises extended its gains from Tuesday and rose over 20%. However, Adani Total Gas and Adani Green Energy continued their fall and closed at their lower circuits. Adani Wilmar hit its upper circuit post its Q3 results announcement. Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal rose over 3.8% and closed in the green while Nifty FMCG and Nifty Realty closed flat.

In international markets, major Asian indices closed mixed. US indices futures traded marginally lower as investors assess the US Fed Chairman Jerome Powell's speech. European stocks traded higher amid mixed global cues. Crude oil futures recovered from their day’s lows and traded higher due to an mproving economic outlook amid falling inflation.

• Relative strength index(RSI) indicates that stocks like Procter & Gamble Health, ZF Commercial Vehicle Control Systems India, Persistent Systemsand Mahindra & Mahindra Financial Servicesare in the overbought zone.

• PB Fintech (Policybazaar) is one of the high-volume top gainer stocks rising more than 6% in trade. It ranks medium on the Trendlyne Checklist score. The consensus recommendation from 10 analysts for the stock is ‘Buy’.

• One97 Communications (Paytm) is rising as Macquarie upgrades its rating to ‘Outperform’ and raises the target price by 80% to Rs 800. The brokerage says the quality of the company’s loans (post-paid and personal loans) is improving. It adds that the firm has controlled its overall expenses and charges.

  After releasing several bearish reports on #Paytm, Macquarie has given a double upgrade to the stock and raised its target price by 80% to Rs 800https://t.co/5QAzy6TS3c

  — ETMarkets (@ETMarkets) February 8, 2023

• Metal stocks like Adani Enterprises, Jindal Steel & Power, JSW Steel and Hindustan Copper are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

• Astral's board recommends a bonus issue of equity shares in the ratio of 1:3 and fixes March 14 as the record date, subject to approval from members of the company.

• Shree Cements is falling as its Q3FY23 net profit declines 41.5% YoY to Rs 282.1 crore due to higher expenses. However, revenue grows 19.4% YoY as volume sees healthy growth on a YoY basis. The stock shows up in a screener for companies with declining net cash flow.

• Godrej Consumer Products, Blue Star and Bajaj Finserv outperform the Nifty 50 index over the week post their Q3FY23 results.

• Talking about the banking sector’s exposure to Adani Group companies, RBI Governor Shaktikanta Das says that Indian banks are strong and resilient and won't be affected by a case like this. Deputy Governor MK Jain adds that domestic banks' exposure to Adani Group is “insignificant”.

  Banking System Won't Be Affected By "Case Like This": RBI On Adani Row https://t.co/MlQ3mLTxtspic.twitter.com/lUn1tyRGTu

  — NDTV Profit (@NDTVProfit) February 8, 2023

• ICICI Direct upgrades the rating on Elgi Equipments to ‘Buy’ from ‘Hold’ with a target price of Rs 500, implying an upside of 18.1%. The brokerage is positive about the firm’s prospects given an increase in high-margin orders, customer additions and a robust balance sheet. It expects the company’s net profit to grow at a CAGR of 26.1% over FY23-25.

• Bajaj Finance, LTIMindtree and AstraZeneca Pharma trade above their second resistance or R2 level.

• Ambuja Cements is rising as its Q3FY23 net profit surges 49.5% YoY to Rs 434.4 crore. Revenue also increases 3.7% YoY with growth in sales volumes and realizations. Raw material and power & fuel costs fall on a QoQ basis. The stock shows up in a screener with improving RoCE for the past two years.

• RBI’s Monetary Policy Committee projects India’s GDP to grow 5.8% during Jan-March and 6.4% in FY24.

  #GDP growth for #FY24 is seen at 6.4%, RBI Governor Shaktikanta Das said while announcing the Monetary Policy Committee decision.
  
  More details????https://t.co/DrsyOdLzYG#MPC#RBIPolicy#RBI#India#MPC2023pic.twitter.com/lCgNtam8ve

  — Moneycontrol (@moneycontrolcom) February 8, 2023

• Coal and Telecom Services sectors are falling in trade. Meanwhile, Commercial Services & Supplies, Transportation and Hardware Technology & Equipment sectors rise more than 3% today.

• IT stocks like Coforge, Mphasis, Infosys, LTIMindtree and Tata Consultancy Services are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

• The Reserve Bank of India (RBI) forecasts India’s CPI inflation or retail inflation to be at 6.5% and 5.3% for FY23 and FY24 respectively.

  RBI has projected retail inflation at 6.5% for FY2022-23, and 5.3% for the next fiscal, Governor Shaktikanta Das announced during the announced the Monetary Policy statement today. #RBIMPC#RBIPolicyhttps://t.co/RBrvxOa5HH

  — Mint (@livemint) February 8, 2023

• Tata Consultancy Services is rising as it bags a contract worth 600 million pounds (Rs 53,227 crore) from the UK-based Phoenix Group. The contract pertains to digitally transforming the life insurance business of ReAssure, a subsidiary of the group.

• NHPC's Q3FY23 net profit falls 14.2% YoY to Rs 692.7 crore as deferred tax expense rises. Revenue also improves 19.8% YoY. The stock shows up in a screener for companies with increasing profits every quarter for the past two years.

• Fine Organic Industries, Life Insurance Corp and Alkyl Amines Chemicals weekly average delivery volumes rise ahead of their Q3FY23 results tomorrow.

• The Reserve Bank of India (RBI) raises repo rate by 25 bps to 6.5% during the Monetary Policy Committee (MPC) meeting.

  #BREAKING | @RBI hikes repo rate by 25 bps to 6.5% @DasShaktikanta#RBI#RBIMPC#RepoRatepic.twitter.com/4ge3Pmys2Y

  — ET NOW (@ETNOWlive) February 8, 2023

• Deepak Nitrite is falling as its Q3FY23 net profit declines 13.8% YoY to Rs 209.1 crore due to higher raw material costs, employee expenses and power & fuel expenses. Revenue rises by 15.6% YoY led by healthy growth in its advanced intermediates segment. The stock shows up in a screener for companies with declining net profits for the past two quarters.

• Hero MotoCorp is falling despite reporting a net profit rise of 3.2% YoY to Rs 726 crore in Q3FY23. Net profit rises despite a weak demand scenario, especially from rural areas. CFO Niranjan Gupta says that the company’s cost-cutting programmes should improve profitability. The stock ranks medium on the Trendlyne Checklist score.

• Bharti Airtel’s Q3FY23 net profit falls 26% QoQ to Rs 1,588.2 crore, due to higher operating expenses and license fee-related provisions. However, revenue grows by 19.9% QoQ on ARPU growth. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Adani Enterprises Ltd. (2,164.25, 20.04%), One97 Communications Ltd. (675.95, 14.84%) and Zomato Ltd. (54.30, 10.03%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (1,391.00, -5.00%), Adani Green Energy Ltd. (802.45, -5.00%) and Power Grid Corporation of India Ltd. (212.00, -2.24%).

Movers and Shakers

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

Top high volume gainers on BSE included One97 Communications Ltd. (675.95, 14.84%), Zomato Ltd. (54.30, 10.03%) and Symphony Ltd. (1,047.85, 8.56%).

Top high volume losers on BSE were Navin Fluorine International Ltd. (4,185.05, -2.25%) and Privi Speciality Chemicals Ltd. (875.95, -1.00%).

Thermax Ltd. (2,090.50, 4.55%) was trading at 23.8 times of weekly average. 3M India Ltd. (2,2950.00, 0.22%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,279.00, 3.13%) were trading with volumes 11.3 and 7.4 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 10 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (474.00, -1.14%), Mahindra & Mahindra Financial Services Ltd. (269.05, 0.60%) and Jindal Stainless (Hisar) Ltd. (483.05, 0.68%).

Stocks making new 52 weeks lows included - IFB Industries Ltd. (835.00, 3.78%) and Sanofi India Ltd. (5,270.00, -1.11%).

23 stocks climbed above their 200 day SMA including One97 Communications Ltd. (675.95, 14.84%) and CreditAccess Grameen Ltd. (956.60, 6.13%). 6 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (850.45, -4.33%) and Tejas Networks Ltd. (544.80, -1.74%).

Trendlyne Analysis

Nifty 50closed at 17,721.50 (-43.1, -0.2%), BSE Sensex closed at 60,286.04 (-220.9, -0.4%) while the broader Nifty 500 closed at 14,902.20 (-32.0, -0.2%).

Market breadth is in the red. Of the 1,949 stocks traded today, 777 were on the uptrend, and 1,118 went down. Banking stocks recouped losses after a Fitch rating report noting that Indian banks' exposure to Adani Group would not pose a risk their credit profiles. It added that the economic and sovereign implications of the Adani Group controversy remain limited.

Adani Enterprises closes 14% higher after several days of technical weakness. Adani Wilmar closes in the upper circuit. Adani Green and Adani Power close in the lower circuit. Adani group paid back USD 1.12 billion ahead of schedule to release pledged shares in Adani Ports, Adani Green, and Adani Enterprises.

Nifty Smallcap 100 and Nifty Midcap 100 close in the red, taking cues from the benchmark index. Nifty FMCG closes in the red, led by the heavyweight ITC, as the government weighs stake sale in ITC.

Major Asian indices close in the green, except for Australian ASX All Ordinaries which closed negative. European indices trade in the red as strong US jobs data stoke rate hike fears. US indices futures are also in the red as investors wait for Fed’s commentary on rate hikes.

• Hindalco Industries sees a short buildup in its February 23 future series as its open interest rises 11.9% with a put-call ratio of 0.32.

• Fitch Ratings says that Indian banks' exposure to Adani Group is insufficient to risk their credit profiles. It adds that the economic and sovereign implications of the Adani Group controversy are limited.

• Aditya Birla Fashion and Retail is falling as its Q3FY23 net profit falls 91.7% YoY to Rs 15.8 crore due to higher other expenses, raw material costs and employee expenses. However, its revenue grows by 20.1% YoY driven by its Madura Fashion & Lifestyle segment. The stock shows up in a screener for companies with declining net cash flow.

• Oil and Natural Gas Corp will explore investing in gas assets in Argentina, according to reports. The company also signs a memorandum of understanding with Argentina’s oil company YPF for hydrocarbon projects. The stock is rising in a volatile market.

• Canara Bank appoints Satyanarayana Raju as Managing Director and Chief Executive Officer with effect from today.

• Brent crude oil prices trade above the $80 per barrel mark amid demand recovery in China. Copper, zinc and aluminium prices are falling over demand concerns.

  #CommodityCorner
  
  -Oil prices rise for a second straight session
  -Gold prices above the $1885/oz
  -Copper falls as demand concerns, firm $ offset supply disruptions@vinnii_motiwala#Oil#Gold#Zinc#Copper#Aluminumpic.twitter.com/fpWawzbMMK

  — ET NOW (@ETNOWlive) February 7, 2023

• Adani Ports & SEZ is rising despite its Q3FY23 net profit falling 16% YoY to Rs 1,315.5 crore on account of higher operating expenses, employee costs and forex losses. Revenue rises 17.5% YoY as its cargo and container volumes increase. The stock shows up in a screener for companies with high promoter stock pledges.

• FSN E-Commerce Ventures (Nykaa) is rising as Jefferies cuts its target price to Rs 200 from Rs 275 but maintains its ‘Buy’ rating, according to reports. The brokerage says there are rising concerns over urban demand due to a high base and slow hiring in the IT segment.

• PVR rises after announcing the record date for the transfer of shares to eligible Inox Leisure shareholders as February 17, as part of the PVR-Inox merger. It features in a screener of turnaround companies – loss to profit QoQ.

• Hindalco is falling as its arm Novalis sees a 95% drop in net profit to $12 million due to high energy and freight costs. Revenue also declines 2.9% YoY on lower sales volumes due to beverage cans destocking by customers.

• National Aluminium Co, Steel Authority of India and Tata Steel are trading below their second support or S2 level.

• Economists expect the Reserve Bank of India (RBI) to slow down interest rate hikes as inflation cools. However, a 25 bps hike is expected in the ongoing monetary policy committee meeting.

  All eyes are on the MPC meet!
  
  Economists predict a 25 bps hike in the policy rate. They also expect a switch of stance from 'withdrawal of accommodation' to 'neutral'
  
  Pranjul Bhandari, @HSBC predicts the RBI strategy. Listen in @avannedubash@AyeshaFaridi1@_anishaj@RBIpic.twitter.com/sy1VQaaSwY

  — ET NOW (@ETNOWlive) February 7, 2023

• Advertising & Media, Cigarette-Tobacco Products and Commercial Vehicles industries rise more than 8% in the past month.

• KRChoksey keeps its ‘Buy’ rating on Housing Development Finance Corp (HDFC) and raises its target price to Rs 3,240 from Rs 2,989. This indicates an upside of 21%. The brokerage expects HDFC’s margins to remain stable on the back of improving yields. They see healthy growth in assets under management led by robust housing demand.

• Vinati Saraf Mutreja, Managing Director & CEO of Vinati Organics, expects the company’s EBITDA margin to be around 30% in FY23. She says it aims for revenue growth of 20% in FY24.

  #OnCNBCTV18 | Iso Butyl Benzene (IBB) has picked up quite a bit; Isobutylene (IB) demand remains stable. EBITDA margin should be around 30% in FY23. Looking at 20% revenue growth in FY24, says Vinati Saraf Mutreja of Vinati Organics pic.twitter.com/SRTuJcLiRS

  — CNBC-TV18 (@CNBCTV18Live) February 7, 2023

• Metal stocks like Tata Steel, Hindalco Industries, Vedanta, Steel Authority of India and National Aluminium Co are falling in trade. The broader sectoral index BSE Metal is also trading in the red.

• Muthoot Finance is falling as its Q3FY23 net profit declines 10.8% YoY to Rs 927.7 crore and revenue dips by 4.6% YoY. However, its consolidated loan assets under management rise on a YoY basis. The stock shows up in a screener for companies with declining RoE over the past two years.

• Indian rupee appreciates to 82.65 from the previous close of 82.73 against the US dollar in early trade today, due to a weaker greenback in the global markets.

  #Rupee Check | Rupee opens at 82.65/$ vs Monday's close of 82.73/$#RupeeVsDollar#USDINR#INR#USD#USDollar#Dollarpic.twitter.com/w0fk7i764E

  — CNBC-TV18 (@CNBCTV18Live) February 7, 2023

• LIC Housing Finance rises even as its Q3FY23 net profit falls 37.4% YoY to Rs 480.3 crore on higher finance costs. Interest income is up by 17% YoY. It shows up in a screener of stocks with high momentum scores and undervalued growth stocks.

• Samvardhana Motherson, Shree Cements and Cummins India rise 8.1%, 7.6% and 4.3% respectively over the past week, ahead of their Q3FY23 results tomorrow.

• SJVN’s Q3FY23 net profit rises 22% YoY to Rs 287.4 crore as its total revenue increases 16.5% YoY. Revenue from operations improves marginally but revenue from other income goes up 2.5X. The company also reports a surge in finance costs in Q3. It shows up in a screener of mutual funds decreasing shareholdings over the past quarter.

• Tata Steel posts a net loss of Rs 2,223.8 crore in Q3FY23 compared to a net profit of Rs 9,572.7 crore in Q3FY22 on rising raw material costs and non-cash deferred tax expenses. Revenue declines 6.1% YoY on the back of a slowdown in demand and fall in global steel prices. The stock shows up in a screener for companies with high promoter pledges.

Riding High:

Largecap and midcap gainers today include Adani Enterprises Ltd. (1,802.95, 14.64%), Gland Pharma Ltd. (1,306.85, 11.44%) and Varun Beverages Ltd. (1,304.10, 6.73%).

Downers:

Largecap and midcap losers today include Tata Steel Ltd. (111.45, -5.11%), Adani Green Energy Ltd. (844.65, -5.00%) and Adani Total Gas Ltd. (1,464.20, -5.00%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gland Pharma Ltd. (1,306.85, 11.44%), Garware Technical Fibres Ltd. (3,109.80, 5.85%) and Triveni Turbine Ltd. (278.70, 5.61%).

Top high volume losers on BSE were Balaji Amines Ltd. (2,172.40, -5.57%), Adani Green Energy Ltd. (844.65, -5.00%) and Adani Total Gas Ltd. (1,464.20, -5.00%).

Eureka Forbes Ltd. (475.00, 0.81%) was trading at 38.3 times of weekly average. Adani Power Ltd. (173.25, -4.99%) and Hitachi Energy India Ltd. (3,002.35, -3.41%) were trading with volumes 32.7 and 13.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks took off, crossing 52-week highs, while 15 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,371.50, 0.40%), Britannia Industries Ltd. (4,606.85, -0.41%) and Zydus Lifesciences Ltd. (479.45, 1.98%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,252.20, -0.34%) and Alembic Pharmaceuticals Ltd. (522.90, -1.02%).

21 stocks climbed above their 200 day SMA including Zensar Technologies Ltd. (245.30, 5.44%) and One97 Communications Ltd. (588.60, 5.43%). 9 stocks slipped below their 200 SMA including LIC Housing Finance Ltd. (376.10, -3.12%) and KIOCL Ltd. (196.80, -2.55%).

Trendlyne Analysis

Indian indices closed in the red on a volatile day of trade. The Nifty 50 fell nearly 90 points and closed below the 17,800 mark. The Adani group’s stocks extended their sell-off today after rating agency Moody's warned on Friday that the group may struggle to raise capital, and S&P cut its outlook on two group companies. The Adani group is looking to prepay its debt of Rs 7,000-8,000 crore from its loans against shares (LAS) portfolio to calm the sell-off in its share prices.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. BSE Telecom index rose sharply, led by Vodafone Idea, which jumped over 20% as the Centre directed the company to convert interest due on deferred spectrum auction installments and revenue dues into equity for approximately Rs 16,113.2 crore.

Major Asian indices closed in the red - Chinese stocks were down after the US shot down what it said was a Chinese spying balloon in American skies. The sole exceptionwas Japan’s Nikkei 225, which closed higher for a third consecutive day amid expectations that the Bank of Japan will maintain its extremely accommodative monetary policy.

European markets tradelower, taking cues from US indices’ futures. Investors assess key central bank decisions, strong US job additions and corporate earnings. Crude oil pricestrade higher after falling over 7% in the previous week on fears of slowing global economic growth.

Nifty 50closed at 17,764.60 (-89.5, -0.5%), BSE Sensexclosed at 60,506.90 (-335.0, -0.6%) while the broader Nifty 500closed at 14,934.15 (-28.2, -0.2%)

Market breadth is in the green. Of the 1,975 stocks traded today, 1,040 were on the uptrend, and 873 went down.

• Money flow index(MFI) indicates that stocks like Ratnamani Metals & Tubes, ITC, Persistent Systemsand Jindal Stainlessare in the overbought zone.

• Britannia Industries beats Tata Consumer Products in YoY and QoQ net profit growth, PE Ratio and one-year price change. But it lags in price-to-book value, three-year price change, QoQ revenue growth and broker average target upside.

• Asian Paintssees seven broker target price and one recommendation downgradesin the past month, while Bajaj Finance, Avenue Supermartsand Bandhan Bank see five broker target price downgrades.

• Credit rating agency Fitch Ratings expects Indian banks’ net interest margin (NIM) to contract slightly by around 10 bps in FY24 amid deposit rate hikes taken by the banks.

  The net interest margin for Indian lenders will come under pressure during FY24 as #banks hike deposit rates to attract funds to support sustained high loan growth, Fitch Ratings said in a report.
  
  Find out more?https://t.co/BWwSr9jwgF#India#Banking#Loans#InterestRate

  — Moneycontrol (@moneycontrolcom) February 6, 2023

• Easy Trip Planners is rising as its Q3FY23 net profit rises 4.2% YoY to Rs 41.7 crore and revenue surges by 57.3% YoY driven by robust volume growth in the flight and hotels segments. The stock shows up in a screener for companies with zero promoter pledges.

• Commercial Services & Supplies, Utilities and Transportation sectors fall more than 15% over the past month.

• Rakesh Khanna, Managing Director & CEO of Orient Electric, says e-commerce contributes 10% to the total sales of the company and expects it to improve to 20% in a year. He adds that the company focuses on products with high growth potential.

  #OnCNBCTV18 | e-commerce at 10% of sales, expect it to be 20% in a year. Lighting segment performance is weak. We are gaining traction in switches & switchgears business, says Rakesh Khanna of Orient Electric pic.twitter.com/uQoaoMKg3w

  — CNBC-TV18 (@CNBCTV18Live) February 6, 2023

• ICICI Securities upgrades its rating on Mahindra Lifespace Developers to ‘Buy’ from ‘Add’ and increases the target price to Rs 483 from Rs 461. This implies an upside of 21.5%. The brokerage anticipates the company’s sales growth momentum to accelerate on the back of new project launches and a robust business development pipeline.

• Indian Oil Corp decides to ink a memorandum of understanding with LanzaJet to produce sustainable aviation fuel at its Panipat refinery, according to reports.

• One97 Communications (Paytm) is rising as its Q3FY23 net loss narrows on a YoY basis to Rs 392 crore from Rs 778.4 crore. Revenue rises 41.6% YoY on the back of growth in merchant subscriptions, loan distribution and payment services. The stock shows up in a screener for companies with revenues increasing sequentially over the past four quarters

• Varun Beverages' Q3FY23 net profit rises 353.28% YoY to Rs 74.8 crore in a seasonally weak quarter, while its revenue increases 27.9% YoY. Realisation per unit improves with price hikes, rationalised discounts & incentives and improved product mix. The stock shows up in a screener for companies with consistent high returns over five years.

• Timken India, Relaxo Footwears and VIP Industries are trading below their third support or S3 level as the market trades lower.

• Metal stocks like Adani Enterprises, Jindal Steel & Power, Hindustan Zinc and JSW Steel are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

• InterGlobe Aviation's Q3FY23 net profit rises close to 11x to Rs 1,422.6 crore and revenue grows 62.6%. The strong performance is a result of robust demand for air travel, says Pieter Elbers, Chief Executive Officer. The stock shows up in a screener for companies with FII/FPI or Institutions increasing their shareholding.

• Retail sales of the automotive industry rise 13.6% YoY to 18.3 lakh units in January, shows data from the Federation of Automotive Dealers' Association. Two-wheeler and car retail sales are up 10.1% and 21.9% YoY respectively.

  #FADA releases January 2023 vehicle retail data, total sales rise 13.6% on a YoY basis
  
  Alert: Sales rise in all vehicle segments in January 2023 pic.twitter.com/s1TYmLF40U

  — CNBC-TV18 (@CNBCTV18Live) February 6, 2023

• Telecom stocks like Vodafone Idea, Indus Towers, GTL Infrastructure, Reliance Communications and Tata Communications are rising in trade. The broader sectoral index S&P BSE Telecom is also trading in the green.

• Vodafone Idea surges as the government converts adjusted gross revenue dues of the company into equities for approx Rs 16,113.2 crore.

• Indian rupee depreciates to 82.41 from the previous close of 81.83 against the US dollar in early trade today.

  #Rupee Check | Rupee opens nearly 60 paise weaker from Friday’s close of 81.83 against US Dollar#RupeeVsDollar#USDINR#INR#USD#Dollar#USDollarpic.twitter.com/brNeZ3vdZv

  — CNBC-TV18 (@CNBCTV18Live) February 6, 2023

• ITC's Q3FY23 net profit rises 23.4% YoY to Rs 5,006.6 despite its revenue falling 2.6% YoY. The increase is due to a 60.5% fall in purchases of stock-in-trade expense. The stock shows up in a screener for companies with increasing net profits sequentially for the past four quarters.

• State Bank of India’s Q3FY23 net profit rises 68.5% YoY to Rs 14,205.3 crore on the back of healthy credit expansion and robust net interest income (NII) growth. Revenue increases by 24.3% YoY led by strong growth in retail and corporate banking operations. The stock shows up in a screener for companies with quarterly net profit growth and increasing net profit margin YoY.

• Tata Power’s Q3FY23 net profit jumps 121.9% YoY to Rs 945 crore and revenue rises 29.5% YoY. This growth is driven by improved realisation, higher power generation and increased distribution sales. The stock shows up in a screener for companies with net profits rising sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (8.25, 20.44%), Indus Towers Ltd. (162.05, 12.81%) and Adani Ports & Special Economic Zone Ltd. (545.45, 9.34%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (1,256.45, -10.00%), Adani Power Ltd. (182.35, -5.00%) and Adani Wilmar Ltd. (379.95, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Vodafone Idea Ltd. (8.25, 20.44%), Procter & Gamble Health Ltd. (4,702.70, 14.63%) and Elgi Equipments Ltd. (412.35, 8.31%).

Top high volume losers on BSE were Privi Speciality Chemicals Ltd. (908.45, -7.07%), Multi Commodity Exchange of India Ltd. (1,425.15, -5.56%) and Mahindra Logistics Ltd. (430.15, -3.45%).

Zydus Lifesciences Ltd. (470.15, 8.17%) was trading at 8.5 times of weekly average. Anupam Rasayan India Ltd. (602.90, 4.48%) and Mahindra & Mahindra Financial Services Ltd. (261.85, 7.49%) were trading with volumes 6.2 and 5.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks hit their 52-week highs, while 14 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (470.15, 8.17%), Carborundum Universal Ltd. (999.05, 0.77%) and IDFC Ltd. (91.55, 3.39%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,256.45, -10.00%) and BASF India Ltd. (2,315.85, -1.31%).

22 stocks climbed above their 200 day SMA including Procter & Gamble Health Ltd. (4702.70, 14.63%) and Cholamandalam Financial Holdings Ltd. (629.95, 4.89%). 14 stocks slipped below their 200 SMA including Poly Medicure Ltd. (827.50, -4.11%) and LIC Housing Finance Ltd. (388.20, -2.88%).