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Trendlyne Marketwatch
Trendlyne Marketwatch
16 Nov 2022
Market closes flat, Bharat Rasayan's Q2 net profit falls 13.4% YoY

Trendlyne Analysis

Nifty 50 closed flat after gyrating between losses and gains throughout the day. European stocks traded lower as UK’s CPI hit a 41-year high of 11.1% in October. Most major Asian indices closed in the red after reports of two Russian missiles landing in NATO member country Poland. However, US stocks closed in the green on Tuesday as US producer prices increased by less than expected in October, adding to the improving inflation outlook. The tech-heavy NASDAQ 100 rose nearly 1.5% while the Dow Jones closed 0.2% higher. Brent crude oil prices traded higher as traders assessed geopolitical tensions and OPEC cutting its 2022 global crude oil demand forecast.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing flat. Nifty Metal and Nifty Energy closed lower than Tuesday’s levels. Nifty IT closed marginally higher, taking cues from the NASDAQ 100, which closed in the green on Tuesday.

Nifty 50closed at 18,409.65 (6.3, 0.0%), BSE Sensexclosed at 61,980.72 (107.7, 0.2%) while the broader Nifty 500closed at 15,663.30 (-30.6, -0.2%).

Market breadth is in the red. Of the 1,934 stocks traded today, 676 were in the positive territory and 1,207 were negative.

  • Apollo Tyressees a short buildup in its November 24 future series as its open interest rises 28.7% with a put-call ratio of 0.33.

  • Commercial Services & Supplies, Hardware Technology & Equipmentand Oil & Gassectors risemore than 8% over the past month.

  • Ashish Kacholia adds DU Digital Global to his portfolio in Q2FY23, buys a 5% stake in the company.

  • KR Choksey maintains its 'Buy' rating on Zydus Lifesciences with a target price of Rs 507. This indicates a potential upside of 19.8%. The brokerage believes that the profitability of consumer wellness segment will improve in the coming quarters due to price action and improving rural demand. It expects the company's revenue to grow at a CAGR of 7.7% over FY22-24.

  • Voltas and Relaxo Footwears hit their 52-week lows of Rs 813 and Rs 907 respectively. Both stocks fall for three consecutive sessions.

  • Keystone Realtors’ Rs 635 crore IPO gets bids for 2X of the available 86 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 53% of the available 43 lakh shares on offer.

  • Motherson Sumi Wiring hits an all-time high today as it turns ex-bonus. The company had earlier announced a bonus issue in the ratio of 2:5.

  • ICICI Direct downgrades its rating on NMDC to ‘Hold’ from ‘Buy’ with a target price of Rs 115. This indicates an upside of 6%. The brokerage lowers its rating on the company on the back of a muted trend in iron ore realisations. The company’s Q2FY23 revenue and net profit came in below the brokerage’s estimates.

  • Metal stocks like Adani Enterprises, Steel Authority of India, National Aluminiumand Hindalco Industriesare falling in trade. The broader sectoral index Nifty Metalis also trading in the red.

  • ICICI Securities reiterates its ‘Buy’ rating on One97 Communications (Paytm) with a target price of Rs 1,285. The brokerage is optimistic about the company’s strong growth in the upcoming quarters and expects EBITDA to become positive by FY26.

  • KEC International wins orders worth Rs 1,294 crore, including an order to supply towers in the Americas by SAE Tower, two orders for ballastless track works from Chennai Metro and Mumbai Metro, and an order for various types of cables in India and overseas.

  • Bharat Rasayan is falling as its Q2FY23 net profit declines 13.4% YoY to Rs 22.9 crore. Rise in cost of raw materials caused EBITDA margins to fall 270 bps YoY to 12.3%. The company also features in a screener for stocks with declining cash flow from operations for the past two years.

  • TCNS Clothing is rising as reports suggest Reliance Retail, Nykaa, Aditya Birla Fashion and Trent are interested in buying TA Associates’ 29.2% stake in the company.

  • Indian rupee depreciates 66 paise to 81.57 against the US dollar in early trade today, as demand for domestic equities softens.

  • IDFCclarifies speculation on the delayed merger and states that it is committed to its ongoing corporate restructuring plan. This is with reference to a news article published today stating the company's merger may be delayed on fair value issue.

  • PSU Bank stocks like Union Bank of India, UCO Bank, Indian Overseas Bankand Bank of Maharashtraare rising in trade. The broader sectoral index Nifty PSU Bankis also trading in the green.

  • India’s October merchandise exports decline to $29.8 billion, as compared to $35.7 billion in September. Imports stood at $56.7 billion, while the trade deficit in October widens to $26.9 billion.

  • Global Health’s shares list at a 19.3% premium to the issue price of Rs 336 on its debut on the bourses. The Rs 2,205.5 crore IPO was subscribed for 9.5X the total shares on offer.

  • Bikaji Foods’ shares list at a 7.6% premium to the issue price of Rs 300 on its debut on the bourses. The Rs 881 crore IPO was subscribed for 26.6X the total shares on offer.

  • Bharat Electronics signs separate MoUs with Hindustan Shipyard, SVC Tech Ventures, Profense and Yantra India to jointly develop and manufacture defence equipment.

  • Segantii India Mauritius fund sells 0.12% stake (33.7 lakh shares) in FSN E-Commerce Ventures (Nykaa) for Rs 67.2 crore in a bulk deal. Hermes Investment Fund picks up a 0.09% stake (25.8 lakh shares) in Nykaa for Rs 51.3 crore in another bulk deal.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (26.95, 6.94%), Hindustan Aeronautics Ltd. (2,681.15, 6.28%) and Union Bank of India (66.05, 4.68%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (637.20, -4.99%), Steel Authority of India (SAIL) Ltd. (82.60, -4.18%) and One97 Communications Ltd. (601.45, -4.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Housing and Urban Development Corporation Ltd. (47.25, 13.58%), TCNS Clothing Co. Ltd. (606.75, 8.63%) and Finolex Industries Ltd. (161.85, 8.15%).

Top high volume losers on BSE were Metropolis Healthcare Ltd. (1,435.90, -7.75%), One97 Communications Ltd. (601.45, -4.00%) and Sobha Ltd. (633.50, -2.89%).

Castrol India Ltd. (129.80, 3.14%) was trading at 8.5 times of weekly average. Indian Railway Finance Corporation Ltd. (26.95, 6.94%) and NBCC (India) Ltd. (36.30, 3.71%) were trading with volumes 7.4 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks took off, crossing 52-week highs, while 6 stocks hit their 52-week lows.

Stocks touching their year highs included - Ambuja Cements Ltd. (577.20, -1.58%), Bharti Airtel Ltd. (841.20, 0.71%) and Cummins India Ltd. (1,366.70, -0.44%).

Stocks making new 52 weeks lows included - DCM Shriram Ltd. (911.80, 2.25%) and Relaxo Footwears Ltd. (909.60, -0.77%).

9 stocks climbed above their 200 day SMA including PNC Infratech Ltd. (263.90, 3.94%) and NBCC (India) Ltd. (36.30, 3.71%). 22 stocks slipped below their 200 SMA including Steel Authority of India (SAIL) Ltd. (82.60, -4.18%) and Adani Green Energy Ltd. (2,110.15, -3.95%).

 
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The Baseline created a screener Significant (over 30%) distance …
16 Nov 2022
Stocks that fell sharply in recent months, with distance from year high of more than 50%
 
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The Baseline
15 Nov 2022
Analysts make five stock picks in Industrials
By Suhas Reddy

This week, we take a look at analyst picks from the Industrial Machinery sector 

  1. 3M India: ICICI Securities maintains a ‘Buy’ call on this industrial machinery company with a target price of Rs 27,400. This indicates an upside of 10.4%. In Q2FY23, the company’s revenue increased by 19.2% to Rs 1,011.5 crore and profit grew 65.4% to Rs 106.2 crore. 

Aniruddha Joshi, Karan Bhuwania and Pranjal Garg believe that strong numbers across all segments led to revenue growth. According to them, “Timely price hikes and other cost-saving initiatives helped 3M India expand EBITDA margins by 161 bps YoY amid input inflation, supply-chain challenges and rupee depreciation.”

The abrasive products manufacturer announced its first-ever dividend of Rs 850 per share in Q2FY23. This will lead to a cash outflow of Rs 957.5 crore but analysts believe that 3M’s capability to invest in capex remains intact even after the payment due to net cash of Rs 400 crore. They estimate revenue and PAT CAGR of 18.1% and 36.6% respectively over FY22-24.

  1. Cummins India: HDFC Securities maintains its ‘Buy’ rating on this engine equipment manufacturer with a target price of Rs 1,597, indicating an upside of 18.8%. In Q2FY23, the company’s net profit rose 20.9% YoY to Rs 267.3 crore (beating brokerage’s estimates by 12.7%) and revenue grew 13.1% YoY (beating brokerage’s estimates by 10%). 

Analysts Anuj Upadhyay and Hinal Choudhary see a lot of headroom for the firm to grow on the back of a strong demand environment, both in domestic and export markets. They say, “Demand is especially strong in the power-gen segment where end markets like pharma, biotech, commercial realty, manufacturing and data centres are driving growth.” 

Upadhyay and Choudhary expect Cummins’ margins to expand, given the price hikes and softening commodity prices amid a strong demand environment. They see the company’s gross margin rising by 400 bps to 35-36% in 18-24 months. The analysts expect the firm’s revenue to grow at a CAGR of 13.6% over FY22-25. 

  1. Elecon Engineering: Edelweiss maintains its ‘Buy’ rating on this industrial machinery company with a target price of Rs 480. This implies an upside of 6.6%. In Q2FY23, the company’s net profit grew 82.3% YoY to Rs 64.5 crore and revenue rose 21.5% YoY to Rs 296 crore. 

Analyst Himanshu Yadav remains positive on its growth prospects given the strong order enquiries, robust order book and rising margin trend. He added that the gear segment was the key driver of growth in Q2 and will continue to remain a growth lever in the coming quarters. The firm’s order book stands at Rs 714 crore, including gear segment’s orders at Rs 602 crore. 

Yadav believes that the company’s margins will continue to improve on the back of a better product mix and supply chain improvements. “Margin guidance of 22% provides increased confidence in bottom-line growth,” he said. He also sees Elecon raising its revenue growth guidance for FY23 as positive. The analyst expects the firm’s revenue to grow at a CAGR of 24.5% over FY22-24. 

  1. APL Apollo Tubes:Axis Direct retains its ‘Buy’ rating on this iron & steel products maker with a target price of Rs 1,200, indicating an upside of 11.3%. In Q2FY23, the company’s net profit rose 14.4% YoY to Rs 150.2 crore and revenue grew 28.7% YoY to Rs 3,969.2 crore. 

Analyst Aditya Welekar believes that the company’s performance in Q2 was commendable considering the tough market and volatile steel prices. He says the company focused on maintaining market share and liquidating its high-cost inventory by offering many discounts to distributors. From Q3FY23 onwards, he expects market conditions to improve. 

The analyst said, “Going forward, as steel prices stabilise, we expect EBITDA per tonne to improve as discounts to distributors decrease and the Raipur plant ramp-up provides richer EBITDA per tonne in the product mix”. 

Welekar expects APL Apollo’s margins and production volume to grow significantly in the coming quarters. He expects the company’s net profit to grow at a CAGR of 24.8% over FY22-25. 

  1. SKF India: ICICI Direct retains its ‘Buy’ call on this ball-bearing manufacturer with a target price of Rs 5,215, indicating an upside of 7.6%. In Q2FY23, the company’s revenue increased by 11.6% YoY to Rs 1,088.4 crore (vs brokerage’s estimate of Rs 1,105.9 crore) and profit increased 32.5% YoY to Rs 155.8 crore (vs brokerage’s estimate of Rs 141.7 crore). 

Chirag Shah and Yash Panwar say, “SKF has been making strides towards innovation and research and development and has made significant inroads in rotating equipment performance.” Going forward, they think a recovery in commercial vehicles and the upcoming e-market should benefit the company. The analysts remain optimistic on the back of shifting focus towards indigenisation of industrial bearings, strong traction from railways, and increasing presence in tier-3 cities.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
15 Nov 2022
Market closes higher, Inox Green Energy Services’ IPO gets bids for 1.55X of total shares

Trendlyne Analysis

Nifty 50 rose over 70 points towards the end of the trading session and hit a new 52–week high. European stocks traded higher than Monday's close. India’s retail inflation fell to a three-month low of 6.77% in October from 7.41% in September. However, the inflation print stayed above the RBI’s upper limit of 6% for the tenth month in a row. Asian indices closed higher despite the US indices closing in the red on Monday.

US stocks closed in the red as investors assessed comments from the US Federal Reserve officials. The tech-heavy NASDAQ 100 fell 1% while the Dow Jones closed 0.6% lower. Brent crude oil futures gave up gains and traded lower after falling around 3.5% on Monday after OPEC cut its 2022 global demand forecast. Rising Covid cases in China continue to put pressure on crude oil prices.

Nifty Smallcap 100 and Nifty Next 50 closed in the green, following the benchmark index. Nifty Bank and Nifty Auto higher than Monday’s close. Nifty IT recovered from its day’s low and closed in the green, taking cues from the NASDAQ 100 futures, which traded higher.

Nifty 50closed at 18,403.40 (74.3, 0.4%), BSE Sensexclosed at 61,872.99 (248.8, 0.4%) while the broader Nifty 500closed at 15,693.90 (43.7, 0.3%)

Market breadth is in the red. Of the 1,942 stocks traded today, 845 were on the uptrend, and 1,039 went down.

  • Money Flow Index (MFI) indicates that stocks like Ceat, Amara Raja Batteries, Adani Enterprisesand Cochin Shipyardare in the overbought zone.

  • FSN E-Commerce Ventures (Nykaa) falls over 8% in trade today as it turns ex-bonus. The company had earlier announced a bonus issue in the ratio of 1:5.

  • Keystone Realtors’ Rs 635 crore IPO gets bids for 41% of the available 86 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 24% of the available 43 lakh shares on offer.

  • Inox Green Energy Services’ Rs 740 crore IPO gets bids for 1.55X of the available 6.67 crore shares on offer on the last day. The retail investor quota gets bids for 4.7X of the available 1.2 crore shares on offer.

  • Stocks like MRF, Ultratech Cement and Hero MotoCorp trade above their second resistance or R2 levelas the market grows volatile.

  • Fineotex Chemical rises as it secures an order worth Rs 150 crore for specialty performance chemicals from a leading FMCG company. The stock shows up on the screener for companies with improving cash flow and good durability.

  • Krishna Institute of Medical Sciences and CG Power and Industrial Solutionshit their all-time highs of Rs 1,668.4 and Rs 271.4 respectively. Both stock rise for two consecutive sessions.

  • New Delhi Television (NDTV) rises in trade as Adani Group gets Securities and Exchange Board of India's approval to acquire an additional 26% stake in the company via an open offer, according to reports.

  • ICICI Securities initiates its coverage on Piramal Pharma with a 'Buy' rating with a target price of Rs 200. This indicates an upside of 41.8%. The brokerage is positive about the company's outlook considering the growing requirement for development services, high entry barriers, limited competition for complex hospital generics and rising contribution from the growing consumer segment. It expects the company's net profit to grow at a CAGR of 30% over FY22-25.

  • Shriram Properties is back in the black as it reports a net profit of Rs 19.5 crore in Q2FY23 against a net loss of Rs 23.5 crore in Q2FY22. Its revenue surged 3.4X YoY on the back of higher pre-sales bookings as housing demand increased in Q2. The company expects housing demand to remain strong despite increasing interest rates. It shows up on the screener listing stocks with low debt.

  • Sobha is rising despite net profit falling 70% YoY to Rs 19.2 crore in Q2FY23. The fall was caused by a surge in land purchase cost by 6X and purchasing of building materials for various projects by 2X YoY. Revenue also fell 14% YoY but the company’s pre-sales booking value rose 13% YoY in Q2. Jagadish Nangineni, Managing Director, says, "With an inventory pipeline of 23 million sq ft, eight consecutive quarters of debt reduction by Rs 1,600 crore and future cash flows, we aim to deliver consistent performance."

  • Spicejet is falling as its Q2FY23 net loss widens to Rs 833.3 crore against Rs 570.5 crore in Q2FY22. Drop in revenue and rise in operating expenses are because of the high prices of aviation turbine fuel and increasing aircraft maintenance costs. The stock features in a screener for companies with high-interest payments compared to earnings.

  • Fusion Microfinance’s shares list at a 2% discount to the issue price of Rs 368 on its debut on the bourses. The Rs 1,104 crore IPO was subscribed for 2.95X the total shares on offer.

  • NBCC is rising as it secures orders worth Rs 332.8 crore in October 2022. The company shows up on a screener of stocks with improving book value per share for the last two years.

  • India’s CPI inflation falls to 6.77% in October compared to 7.41% in September as food prices decline. Food inflation was 7.01% against 8.6% in September.

  • Godrej Properties achieves sales worth Rs 500 crore from its new project, Godrej Woodsville in Hinjewadi, Pune.

  • Biocon falls as its Q2FY23 net profit declines 66.1% YoY to Rs 46.9 crore due to the additional taxes implied after adopting the new tax regime. The rise in raw material cost and other expenses caused EBITDA margins to fall 320 bps YoY to 16.2%. The company's Managing Director, Arun Chandavarkar, said the conclusion of strategic transactions with Viatris and Serum Institute will position Biocon Biologics as a fully integrated, leading global biosimilars player.

  • Citi downgrades its rating on NMDC to ‘Sell’ with a target price of Rs 100. The brokerage downgrades the stock due to concerns over domestic ore price.

  • Tiger Global Eight Holdings and Internet Fund sell additional 1.3 crore shares (2.9% stake) worth Rs 522.5 crore in PB Fintech in a bulk deal on Monday. Meanwhile, WF Asian Reconnaissance Fund picks up 50 lakh shares (1.1% stake) in PB Fintech for Rs 194 crore.

  • National Company Law Tribunal's Mumbai and Bengaluru benches approve the merger of Larsen & Toubro Infotech (LTI) and Mindtree. According to a press release, the companies will now function as one entity under the name ‘LTIMindtree’ from November 14. As part of the merger, shareholders of Mindtree will get 73 shares of LTI for every 100 shares of Mindtree.

  • Oil and Natural Gas Corp’s Q2FY23 net profit falls 54% YoY to Rs 8,299.4 crore as high crude oil prices dent earnings. Raw material costs and well exploration costs rose 2.4X and 5X YoY respectively. However, the company’s revenue also increases by 38% YoY in Q2. It shows up on a screener of stocks with improving RoA for the past two years.

Riding High:

Largecap and midcap gainers today include Gujarat Gas Ltd. (513.40, 6.04%), Balkrishna Industries Ltd. (1,963.20, 4.67%) and Macrotech Developers Ltd. (984.40, 4.11%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (192.05, -9.24%), Coal India Ltd. (232.15, -6.09%) and Info Edge (India) Ltd. (4,154.70, -4.73%).

Movers and Shakers

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

Top high volume gainers on BSE included Rail Vikas Nigam Ltd. (60.65, 11.18%), NCC Ltd. (78.25, 6.97%) and Balkrishna Industries Ltd. (1,963.20, 4.67%).

Top high volume losers on BSE were Aster DM Healthcare Ltd. (219.65, -6.13%), Uflex Ltd. (646.00, -5.02%) and Gillette India Ltd. (5,126.25, -0.90%).

Greaves Cotton Ltd. (153.45, 3.02%) was trading at 10.0 times of weekly average. Apollo Tyres Ltd. (297.70, 4.33%) and Krishna Institute of Medical Sciences Ltd. (1,610.30, 2.15%) were trading with volumes 6.3 and 4.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks overperformed with 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,299.80, -1.82%), Ambuja Cements Ltd. (586.45, 1.06%) and Apollo Tyres Ltd. (297.70, 4.33%).

Stocks making new 52 weeks lows included - DCM Shriram Ltd. (891.70, -4.47%) and Sona BLW Precision Forgings Ltd. (448.55, -1.47%).

18 stocks climbed above their 200 day SMA including KEC International Ltd. (430.10, 4.95%) and Gujarat State Petronet Ltd. (252.55, 3.91%). 13 stocks slipped below their 200 SMA including Info Edge (India) Ltd. (4,154.70, -4.73%) and Star Health and Allied Insurance Company Ltd. (670.65, -2.47%).

 
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The Baseline created a screener PE Buy Zone Stocks …
15 Nov 2022
Stocks in the PE Buy Zone whose revenue and net profit have risen YoY with RSI higher than 70. This screener tracks live results as they come in
 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Nov 2022, 03:50PM
Market closes flat, Kaynes Technology's IPO gets bids for 34.2X of the total available shares

Trendlyne Analysis

Nifty 50 closed flat after gyrating between losses and gains throughout the day. However, European indices traded higher than Friday's levels. India’s Wholesale Price Index (WPI) inflation eased to 8.39% in October, compared to 10.7% in September, on the back of a fall in commodity prices. Asian indices closed mixed after China relaxed some of its strict anti-Covid measures, which were hurting the economy due to repeated lockdowns.

US stocks rose last week after data showed inflation slowed by more than expected last month. The tech-heavy NASDAQ 100 rose 1.8% while the S&P 500 closed 0.9% higher. However, Federal Reserve Governor Christopher Waller said Federal fund rates are going to stay elevated and keep going up until the inflation gets closer to the US Fed’s target.

Nifty Smallcap 100 closed in the green, despite the benchmark index closing flat. Nifty Metal and Nifty Realty closed higher than Friday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100 index, which closed over 1% on Friday.

Nifty 50closed at 18,329.15 (-20.6, -0.1%), BSE Sensexclosed at 61,624.15 (-170.9, -0.3%) while the broader Nifty 500closed at 15,650.20 (1.1, 0.0%)

Market breadth is in the red. Of the 1,958 stocks traded today, 831 showed gains, and 1,081 showed losses.

  • Relative strength index (RSI) indicates that stocks like Union Bank of India, Amara Raja Batteries, Adani Enterprises and Bank of India are in the overbought zone.

  • Ambuja Cementsand AIA Engineeringhit their 52-week highs of Rs 586.5 and Rs 2,821.2 respectively. Both stocks rise for two consecutive sessions.

  • Keystone Realtors’ Rs 635 crore IPO gets bids for 8% of the available 86 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 12% of the available 43 lakh shares on offer.

  • Metal stocks like Hindalco Industries, National Aluminium, Hindustan Zincand Jindal Stainlessare rising in trade. The broader sectoral index Nifty Metalis also trading in the green.

  • Inox Green Energy Services’ Rs 740 crore IPO gets bids for 85% of the available 6.67 crore shares on offer on the second day. The retail investor quota gets bids for 2.9X of the available 1.2 crore shares on offer.

  • Aman Desai, Director of Aether Industries, says that the company's margins were affected by an increase in raw material costs but maintains margin guidance of 28-29% for H2FY23.

  • Hindalco is surging as London Metal Exchange (LME) aluminium prices rise in trade today, according to reports. The company’s uptrend is also boosted by loosening up of Covid restrictions in China.

  • Kaynes Technology's Rs 857.8 crore IPO gets bids for 34.16X of the available 1.04 crore shares on offer on the last day. The retail investor quota gets bids for 4.09X of the available 52.6 lakh shares on offer.

  • One97 Communications (Paytm) is rising as its loan disbursals grow 161% YoY to 34 lakhs in October, while the value of loans disbursed rises 387% YoY. Merchant payment volumes also increase 42% YoY. Offline payment volumes, subscription revenue and merchant loan distribution rise as devices deployed at merchant stores rise.

  • Alembic Pharmaceuticals receives final approval from the US FDA for its abbreviated new drug application (ANDA) for cyclophosphamide capsules. They are used to treat cancer in pediatric patients. According to IQVIA, the capsules have an estimated market size of $ 8 million for 12 months ending September.

  • Aurobindo Pharma is falling as its Q2FY23 net profit declines 41.2% YoY to Rs 409.4 crore. Fall in the US and European formulations caused the revenue to drop 3.4% YoY to Rs 5,739.4 crore. The Vice-chairman and Managing Director of the company stated that 'the drop in performance was due to macro-environment factors and higher competitive intensity for some products in the U.S.'

  • India’s Wholesale Price Index (WPI) inflation eases to 8.39% in October, compared to 10.7% in September due to a fall in commodity prices. WPI food inflation falls to 6.48 %.

  • Computer Hardware, Zinc, andInternet & Catalogue Retail industries rise by more than 3% in trade today.

  • Macrotech Developers announces the merging of its subsidiaries Bellissimo Constructions and Developers, Homescapes Constructions, Primebuild Developers and Farms, Palava Institute of Advanced Skill Training and Center for Urban Innovation with itself. There will be no change in the shareholding pattern in Macrotech Developers after the merger. The merger is subject to approval from the National Company Law Tribunal.

  • Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Saregama India and Network 18 Media & Investments are falling in trade. All constituents of the broader Nifty Media are trading in the red.

  • JP Morgan maintains ‘Overweight’ rating on Mahindra & Mahindra with a target price of Rs 1,575. The brokerage says that the company’s Q2FY23 results were in line with estimates. It increases the EPS estimate by 1-2% for FY23-25.

  • ABB India's Q2FY23 net profit rises 64.7% to Rs 197.6 crore. Motion, electrification and process automation segments aid revenue rise of 19.2% to Rs 2,119.7 crore. The company features in a screener of stocks with increasing revenue every quarter for the past two years.

  • Tiger Global Eight Holdings and Internet Funds sell 1.6 crore shares (3.57% stake) in PB Fintech worth Rs 605.8 crore in a bulk deal on Friday.

  • TPG Growth sells 1.08 crore shares (0.38% stake) in FSN E-Commerce Ventures (Nykaa) worth Rs 202.1 crore in a bulk deal on Friday. Meanwhile, Morgan Stanley (Asia) and Societe Generale pick up a 0.38% stake in Nykaa.

  • Indian rupee rises to 80.52 from Friday’s close of 80.80 against the US dollar in early trade today.

  • Keystone Realtors raises Rs 190.5 crore from anchor investors ahead of its IPO opening up for subscription today. The company allotted 35.2 lakh equity shares at Rs 541 each to investors, including Morgan Stanely, Abu Dhabi Investment Authority and SBI Life Insurance.

  • Life Insurance Corp of India’s Q2FY23 net profit jumps nearly 11X YoY to Rs 15,952.5 crore. The company transferred Rs 14,271.8 crore to the shareholder’s account from the non-participatory account. Net premium income grows 27% YoY and single premium income rises 62% YoY. The stock shows up on a screener for companies with an improving RoA over the past two years.

Riding High:

Largecap and midcap gainers today include Info Edge (India) Ltd. (4,360.85, 6.36%), Hindalco Industries Ltd. (455.55, 5.98%) and Life Insurance Corporation of India (664.65, 5.89%).

Downers:

Largecap and midcap losers today include Sun TV Network Ltd. (502.35, -8.85%), The New India Assurance Company Ltd. (95.30, -5.88%) and Zomato Ltd. (69.60, -4.40%).

Movers and Shakers

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

Top high volume gainers on BSE included Krishna Institute of Medical Sciences Ltd. (1,576.35, 8.88%), Strides Pharma Science Ltd. (345.00, 8.13%) and Fortis Healthcare Ltd. (303.85, 7.65%).

Top high volume losers on BSE were Sun TV Network Ltd. (502.35, -8.85%), DCM Shriram Ltd. (933.45, -8.46%) and Restaurant Brands Asia Ltd. (117.05, -7.10%).

Jyothy Labs Ltd. (193.15, 1.82%) was trading at 14.7 times of weekly average. Medplus Health Services Ltd. (618.00, 6.15%) and AIA Engineering Ltd. (2,731.75, 5.33%) were trading with volumes 13.5 and 12.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks hit their 52-week highs, while 8 stocks hit their 52-week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (2,731.75, 5.33%), Akzo Nobel India Ltd. (2,342.50, 3.14%) and Allcargo Logistics Ltd. (473.90, 4.48%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (487.45, -0.38%) and Divi's Laboratories Ltd. (3,275.70, 0.13%).

24 stocks climbed above their 200 day SMA including Strides Pharma Science Ltd. (345.00, 8.13%) and Info Edge (India) Ltd. (4,360.85, 6.36%). 15 stocks slipped below their 200 SMA including DCM Shriram Ltd. (933.45, -8.46%) and Astral Ltd. (1,982.30, -3.86%).

 
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The Baseline
11 Nov 2022
Which stocks did superstar investors buy in Q2FY23?
By Abhiraj Panchal

With the economic recovery looking decidedly mixed, many investors are taking inspiration from the portfolios of Superstar investors like Rakesh Jhunjhunwala, Sunil Singhania, Ashish Kacholia, and Dolly Khanna to identify sectors and stocks to invest in. We take a look at some stocks that these Superstars bought during Q2FY23.

These superstars have very different preferences - this is visible in the sectors that have the biggest share in their portfolios. Singhania’s most favoured sector is software, while Kedia prefers telecom, Veliyath favours consumer services companies, and so on.  

In Q2FY23, most of the biggest buys of superstar investors were new additions to their portfolios. Only Porinju, Mohnish Parbrai, and Vijay Kedia’s biggest buys were in existing portfolio stocks. This suggests that the majority of the investors in focus see growth opportunities outside their existing holdings. 

Rakesh Jhunjhunwala’s portfolio increases stake in Tata companies in Q2

Rakesh Jhunjhunwala’s net worth in Q2FY23 rose by 30.7% QoQ to Rs 33,225.8 crore. During the quarter, the big bull’s portfolio, now managed by investment firm Rare Enterprises, added a 7.9% stake in household appliances company Singer India. This was the only new addition to his portfolio in Q2FY23. This small-cap company’s share price increased 76.8% in Q2FY23. 

Rakesh Jhunjhunwala’s portfolio increased stakes in Tata Communication and Titan by 0.5% each to 1.6% and 5.5% respectively in Q2. It also raised its stake in healthcare player Fortis Healthcare, by 0.4% to 4.7%. Rare Enterprises also bought minor stakes in NCC and Tata Motors. 

Sunil Singhania’s Abakkus Fund adds stake in multiple small-cap companies in Q2FY23

Sunil Singhania’s Abakkus Fund saw its consolidated net worth rise 28.9% QoQ in Q2FY23 to Rs 2,079.2 crore. It made a new addition, pharmaceutical company Jubilant Pharmova to the portfolio by purchasing a 1.2% stake in this quarter. Abakkus also added a 0.4% stake in Stylam Industries, a manufacturer of decorative laminates, fascia, exterior cladding, etc., increasing the total holding to 2.3% in the company.

By adding minor additional stakes in already existing small-cap portfolio companies like Sarda Energy & Minerals, Hindware Home Innovation, HIL, and Rupa & Company, Abakkus now holds 1.9%, 5%, 3.1%, and 4.1% stakes in them respectively. 

The Fund also added minor stakes in Siyaram Silk Mills (now holds a 2.1% stake) and Ion Exchange (now holds a 3.1% stake) during Q2FY23. 

Ashish Kacholia goes on a buying spree, adds eight new stocks to portfolio

Ashish Kacholia’s net worth increased 15.3% QoQ to Rs 1,772 crore in Q2FY23. Kacholia bought stakes in several new stocks - he added a fresh 3.3% stake of IT networking equipment company D-Link (India), 2.6% of petrochemicals trader Agarwal Industrial Corp, and 2% of iron and steel products retailer Shankara Building Products to his portfolio. 

He also purchased new stakes in Moongipa Securities (1.1%), Best Agrolife (1.5%), Megastar Foods (1%), and Arvind Fashions (1.1%) during the quarter. The only mid-cap company stake he bought was 1% in Rainbow Childrens Medicare.

Apart from these new buys, the marquee investor also bought an additional 1.3% stake in Hindware Home Innovation (now holds 2.7%), 1% in Ador Welding (now holds 4.2%), 0.7% in Fineotex Chemical (now holds 2.6%), 0.5% in PCBL (now holds 1.9%) and Xpro India (now holds 4.4%) each, 0.4% in Barbeque-Nation Hospitality (now holds 1.4%) and TARC (now holds 1.9%) each. 

The other companies where Kacholia increased stakes are Garware Hi-Tech Films, La Opala RG, Gravita India, SJS Enterprises, and Faze Three. 

Vijay Kedia’s pick hits an all-time high during Q2FY23

Vijay Kedia’s net worth soared 56.1% QoQ to Rs 770.7 crore. He bought an additional 0.1% stake in Elecon Engineering in Q2FY23. The company is specialised in manufacturing industrial gear and equipment. Its stock price rose to Rs 341.9 on September 30, 2022, from Rs 261.5 on July 1, 2022,   a rise of 30.8% during the quarter. Elecon Engineering even hit its all-time high of Rs 415.6 on September 14, 2022. 

Dolly Khanna adds one small cap to her portfolio and increases her stake in seven companies 

Dolly Khanna’s net worth saw a marginal increase of 1.9% QoQ to Rs 521.4 crore in Q2. During the quarter, she bought a 1.1% stake in J Kumar Infraprojects, a small-cap construction & engineering company. 

She increased her stake in the apparels and accessories company Monte Carlo Fashions, by 0.7%, taking her stake to 2.5%. The ace investor also raised her stakes in Simran Farms, Talbros Automotive Components, and Prakash Pipes by 0.2%, 0.1%, and 0.1% to hold 2.2%, 1.2%, and 2.8% respectively. 

Other companies where she increased her stake during the quarter include Deepak Spinners, Zuari Industries, and Ajanta Soya.

Porinju V Veliyath adds one small cap to his portfolio 

Porinju V Veliyath’s net worth improved 22.1% QoQ to Rs 177.2 crore in Q2FY23. This quarter, the investor mainly bought stakes in small- and micro-cap companies. He bought a stake of 1.1% in the household appliances company, Hindware Home Innovation. It was the only new addition to his portfolio in Q2. 

During the quarter, Porinju raised his stake in Duroply Industries by 1.3%. He now holds 7%. The company is involved in the manufacturing and sale of plywood, decorative veneers, block boards, doors, etc. The stock rose 29% in Q2FY23. He also raised his stake in Aurum Proptech and Ashok Alco-Chem by 0.3% and 0.2% to hold 2% and 4.1% respectively. 

Mohnish Pabrai increases his stake in petcoke business Rain Industries  

Mohnish Pabrai’s net worth in Q2FY23 rose by 39.5% QoQ to Rs 1,653.4 crore. The ace investor increased his stake in only one company from his portfolio during the quarter. His stake in the petcoke company, Rain Industries, is up by 0.4% (he now holds 8.8%). The stock rose 13.1% in Q2FY23.

See all superstar portfolios here.

 
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The Baseline
11 Nov 2022
Five Interesting Stocks Today
  1. PI Industries: This agrochemical company’s share price rose 9.9% and touched an all-time high of Rs 3,698.5 on Wednesday, post its Q2FY23 results. Net profit rose 46% YoY to Rs 334.8 crore, and PI Industries features in a screener for stocks nearing their 52-week high with significant volumes. 

According to its management, strong demand for crop protection products during the Kharif season owing to a normal monsoon, healthy reservoirs and price realisations helped the revenue grow by 31% YoY to Rs 1,770 crore. Revenue numbers beat Trendlyne’s Forecaster estimates by 7.9%, while net profit beat the estimates by 19.6%. The company has also revised its capex plan for FY23 upwards by Rs 50 crore to Rs 700 crore. 

According to Prabhudas Lilladher, the company’s margins are expected to grow from their current levels due to strong enquiries in the custom synthesis manufacturing (CSM) business and new launches in the domestic segment. The brokerage maintains its ‘Buy’ rating on the company with an upside of 20% (Rs 4,350). The company also features in a screener for stocks with improving book value for the past two years. 

  1. Divi's Laboratories: This pharma company’s share price fell by over 10% in two trading sessions, and hit a new 52-week low after Q2FY23 results were announced on Monday. Divi’s Labs’ Q2 revenue dipped 6.7% YoY, while its net profit fell 18.6%. As a result, this drug maker features in a screener for companies that declared results in the past week with falling net profit YoY or QoQ. 

A 37% fall in the custom synthesis segment revenue, which contributes to over 40% of the top line, led to a drop in revenue growth. This steep fall was due to a decline in the sales of Molnupiravir (a drug used to treat Covid-19). However, the management said the company has onboarded several new clients in the past six months and it will support growth in the custom synthesis segment over the next four to six quarters. But ICICI Direct, in its brokerage report, reduced the target price and downgraded the stock to ‘Hold’ from ‘Buy’. The brokerage cited low revenue growth visibility in the custom synthesis segment after Covid as the reason for the rating downgrade. 

Despite weak Q2 results, a silver lining for Divi’s Labs is its revenue from the generic segment rising 34% YoY in Q2FY23. The management said it was looking at opportunities from patent expiries in 2023-25 in the generics space worth around $20 billion. In order to benefit from this opportunity, the drug maker had allocated capex worth around Rs 1,500 crore for the Kakinada greenfield project. The management added that it is still waiting for government clearance for the establishment with all licences and permissions in place. 

  1. Jubilant Foodworks: This restaurant stock was among high-volume top loser stocks on Wednesday despite reporting a net profit rise of 9% YoY to Rs 131.5 crore in Q2FY23. Revenue for the company increased 16.6% YoY as new stores start generating revenue in Q2FY23. The company shows up on a screener of stocks with improving cash flow from operations over the past two years. However, analysts from ICICI Securities expected a better increase in revenue, given the price hikes and store expansions done by the company. 

Rising raw material cost remains a concern as gross margin fell 200 bps YoY to 76.2% in Q2. High inflation in commodities like flour, milk and milk products contributed to an increase in costs. Also, the company’s inability to pass on price hikes was a problem as these were lower than inflation rates. Besides, in its earnings call, the management maintains its stance on not introducing further price hikes and plans to mitigate the problem of rising expenses through internal cost cuts and maintaining its operating leverage. Ashish Goenka, CFO, says, “Currently, we are not looking at any further price increase but  would absorb some of these cost increases in our margins.”

Analysts expect the company’s growth story to continue but remain cautious given the high inflation scenario, no price hikes and less scope for improvement in margins in the short term. ICICI Securities and Prabhudas Lilladher maintain ‘Buy’ but have reduced their earnings estimates for the company. ICICI Sec cuts its earnings estimate by 2% after calculating revenue growth of 21% over FY22-24E, while Prabhudas Lilladher cuts FY23 EPS estimates by 7.8%. HDFC Securities, however, maintains a ‘Sell’ on the stock as it expects a slowdown in the company’s expansion plans. Jubilant also shows up on a screener where FIIs have decreased their shareholding by 1.1% QoQ in Q2FY23 but institutional holdings have increased their stake by 1.5%.

  1. Britannia Industries:  This FMCG company is rallying following its Q2FY23 results. It hit an all-time high of Rs 4,237, rising for four consecutive sessions on Wednesday. Britannia reported a 28% YoY increase in net profit to Rs 493.3 crore in Q2FY23. It recorded its highest quarterly revenue of Rs 4,379 crore, up 21.4% YoY in Q2FY23.

Managing Director Varun Berry said, "An increase in distribution reach helped deliver a robust topline growth of 22% YoY, aided by mid-single-digit volume growth, as we record our highest quarterly revenue." The company’s revenue and net profit beat Trendlyne’s Forecaster estimates by 8.02% and 17.28% respectively. It also touched the market capitalisation mark of Rs 1 lakh crore on Monday.

Several analysts are positive about the company’s potential to perform strongly in the upcoming quarters. ICICI Securities upgraded its rating on the stock to ‘Add’ from ‘Hold’, with a target price of Rs 4,300. The brokerage is optimistic about Britannia’s market share gains and expects the company to foray into new segments.

Axis Direct also upgraded its rating to ‘Buy’ from ‘Hold’, with a target price of Rs 4,550. The brokerage remains positive about the company’s long-term prospects. Consensus estimates show 16 analysts recommending a ‘Strong Buy’ on the stock, with eight recommending ‘Buy’ and 10 recommending ‘Hold’.

  1. JK Lakshmi Cement: After announcing its Q2FY23 results on November 3, this cement maker gained 13.4% till Thursday, despite its net profit declining 27.6% YoY. The company’s revenue, on the other hand, rose 13.6% YoY driven by higher realisations, which grew 17% YoY. The uptrend in the stock price is due to the company beating the street’s Q2 estimates on the back of lower-than-expected margin erosion and higher realisations. Operational efficiencies, better product mix and low-cost fuel inventory helped absorb the high input costs. This helped the company beat Trendlyne’s Forecaster profit estimates by 34.5% in Q2. Given this better-than-expected performance, the stock saw four broker target upgrades and one broker recommendation upgrade over the past month. 

As the company is focusing on improving production capacity, enhancing premium product sales and cost management, the street expects margin expansion and growth in profitability. According to Axis Direct, the company is well-positioned to capitalise on robust demand for cement in the coming quarters, amid the expectation of moderating cost pressures as commodity costs soften. 

The company aims to increase its consolidated cement production capacity to 16.4 million tonnes (MT) by FY24. To meet its target, it is expanding the production capacity of its subsidiary Udaipur Cement Works by 2.5 MT to 4.7 MT, with a planned spend of  Rs 1,650 crore. To enhance cost management, JK Lakshmi is aiming to increase its share of green power usage in the next 9-10 months. 

Trendlyne's analysts identify stocks that are seeing interesting price movement, analyst calls, or new developments. These are not buy recommendations.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
11 Nov 2022
Market closes higher, Inox Green Energy Services’ IPO gets bids for 32% of total shares on offer

Trendlyne Analysis

Nifty 50 rose over 180 points and hit a new 52-week high with the volatility index, India VIX, falling below 14.5%. European indices traded higher despite the UK’s Q3 Gross domestic product or GDP contracting by 0.2% QoQ. Major Asian indices closed sharply higher, in line with the US indices, which closed in the green on Thursday. US indices rose the most in two years after the US consumer price index or CPI cooled down to 7.7% in October. This lower-than-expected inflation data could lead to slowing the pace of Fed rate hikes going forward. The tech-heavy NASDAQ 100 rose 7.5% while the S&P 500 closed over 5.5% higher. Brent crude oil futures extended its gains from Thursday and traded higher on the back of softer-than-expected US CPI print.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Bank closed higher than Thursday’s levels. Nifty IT closed sharply higher, taking cues from the NASDAQ 100, which rose over 7% on Thursday.

Nifty 50closed at 18,349.70 (321.5, 1.8%), BSE Sensexclosed at 61,795.04 (1,181.3, 2.0%) while the broader Nifty 500closed at 15,649.10 (209.1, 1.4%)

Market breadth is holding steady. Of the 1,918 stocks traded today, 965 were on the uptrend, and 892 went down.

  • Gujarat Narmada Valley Fertilizers & Chemicals sees a short buildup in its November 24 future series as open interest rises 56.2% with a put-call ratio of 0.32.

  • Hindalco is rising despite its Q2FY23 net profit declining 35.5% YoY to Rs 2,205 crore due to a fall in aluminium prices and rising input costs. Revenue, on the other hand, grows 17.9% YoY on the back of better realisations and robust volumes. Hindalco’s CEO and MD Satish Pai says, “Despite a surge in input costs, the company produced the highest-ever aluminium metal volumes.”

  • Housing Development Finance Corp and HDFC Bank rise as possible changes to MSCI Index on mergers and acquisitions could enable early inclusion of the merged entity in the index, according to reports.

  • Aegis Logistics and Kalpataru Power Transmissionshit their 52-week highs of Rs 328.9 and Rs 516.5 respectively. Aegis Logistics rises for three consecutive sessions, while Kalpataru Power trades higher for two sessions.

  • Inox Green Energy Services’ Rs 740 crore IPO gets bids for 32% of the available 6.67 crore shares on offer on the first day. The retail investor quota gets bids for 58% of the available 1.2 crore shares on offer. The IPO consists of a fresh issue of Rs 370 crore and an offer for sale of Rs 370 crore.

  • Kaynes Technology's Rs 857.8 crore IPO gets bids for 40% of the available 1.04 crore shares on offer on the second day. The retail investor quota gets bids for 33% of the available 52.6 lakh shares on offer.

  • Commodity Trading & Distribution, Copper, and Advertising & Media industries rise more than 7% over the past week.

  • Stocks like Tata Consultancy Services, Reliance Industriesand Housing Development Finance Corptrade above their second resistance or R2 levelas the market trades higher.

  • ICICI Securities downgrades its rating on Westlife Foodworld to ‘Add’ from ‘Buy’ but increases target price to Rs 850 from Rs 640, an upside of 8.8%. The brokerage cites the company’s expensive valuation for the downrating. However, it is optimistic about the firm’s growth prospects given its focus on store expansion, premiumisation and product launches. The brokerage expects the company’s revenue to grow at a CAGR of 30.5% over FY22-24.

  • Moody’s lowers India’s GDP growth forecast for 2022 to 7% from earlier 7.7% amid concerns of inflation, high-interest rates and global slowdown. This is the second downward revision by Moody’s Investors Service since September.
    • Archean Chemical Industries’ Rs 1,462.3 crore IPO gets bids for 5X of the available 1.99 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 5.7X of the available 37 lakh shares on offer.Five Star Business

    • Finance’s Rs 1,960 crore IPO gets bids for 45% of the available 3.04 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 8% of the available 1.5 crore shares on offer.

    • The Society of Indian Automobile Manufacturers’ (SIAM) data shows that auto sales were up 6.2% to 19.23 lakh units in October. Two-wheeler sales rose 1.6% YoY to 15.8 lakh units and passenger cars were up 28.8% YoY.

    • Indian Hotels Co fall despite a net profit of Rs 121.6 crore in Q2FY23 as against a net loss of Rs 120.6 crore in Q2FY22. The company turns profitable on the back of robust domestic demand. Revenue rises 69.2% YoY to Rs 1,232.6 crore. The company makes it to a screener for stocks with consistently high returns over the past five years.

    • Public holders Mala Gopal Gaonkar, Narotam S Sekhsaria and Lighthouse India Fund sell a 1% stake (2.8 crore shares) worth Rs 491.3 crore in FSN E-Commerce Ventures (Nykaa) in a bulk deal as the promoter and investor lock-in period ends on Thursday. Meanwhile, Aberdeen Standard Asia, Norges Bank and Segant II India Mauritius Fund pick up 1.2 crore shares (0.42% stake).

    • Steel Authority of India rises despite posting a net loss of Rs 329.4 crore in Q2FY23 compared to a net profit of Rs 4,338.8 crore in Q2FY22. The company slips into the red as the cost of materials consumed rises 76.9% YoY. Revenue declines 2.2% YoY as crude steel output falls on a YoY basis along with a fall in sales volume. The stock shows up on the screener for companies with a declining net cash flow.

    • MSCI (Morgan Stanley Capital International) adds ABB India, Bajaj Holdings, Indian Hotels, among others to the MSCI Indian Standard Index during its semi-annual review. The changes will be effective from December 1.

    • Apollo Hospitals Enterprises' Q2FY23 net profit falls 20.4% YoY to Rs 212.8 crore. Rise in employee benefit expenses causes EBITDA margins to fall by 120 bps YoY to 36%. The company features on a screener for stocks with FII/FPI or institutions increasing their shareholding.

    • IT stocks like Coforge, MphasiS, Persistent Systemsand Wiproare rising in trade. Broader sectoral index Nifty ITis also trading in the green.

    • Indian rupee rises to 80.71 against US dollar in early trade today as US CPI inflation softens, reducing chances of a sharp interest rate hike.

    • Inox Green Energy Services raises Rs 333 crore from anchor investors ahead of its IPO opening up for subscription today. The company allotted 5.12 crore equity shares at Rs 65 each to anchor investors including Morgan Stanely, Nomura and Edelweiss.

    • DCX Systems’ shares list at a 38.6% premium to the issue price of Rs 207 on its debut on the bourses. The Rs 500 crore IPO was subscribed for 70X the total shares on offer.

    • Dolly Khannasells a 0.2% stake in Tinna Rubber and Infrastructurein Q2FY23 and now holds 1.7% in the company.

    • Zomato’s Q2FY23 net loss narrows to Rs 250.8 crore against Rs 429.6 crore in Q2FY22. However, revenue increases 62% YoY with contributions from Blinkit (Zomato’s e-commerce acquisition) in Q2FY23. High inflation causes a surge in raw material purchases by 2.9X YoY. The stock shows up on a screener with increasing revenue over the past eight quarters.

    Riding High:

    Largecap and midcap gainers today include Zomato Ltd. (72.80, 13.84%), FSN E-Commerce Ventures Ltd. (207.85, 10.41%) and Info Edge (India) Ltd. (4,100.20, 7.47%).

    Downers:

    Largecap and midcap losers today include Indian Hotels Company Ltd. (315.35, -6.89%), Eicher Motors Ltd. (3,519.65, -4.90%) and Container Corporation of India Ltd. (767.80, -4.42%).

    Crowd Puller Stocks

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

    Top high volume gainers on BSE included Zomato Ltd. (72.80, 13.84%), Swan Energy Ltd. (244.25, 12.66%) and Allcargo Logistics Ltd. (453.60, 8.22%).

    Top high volume losers on BSE were Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (602.40, -10.55%), Indian Hotels Company Ltd. (315.35, -6.89%) and Eicher Motors Ltd. (3,519.65, -4.90%).

    PB Fintech Ltd. (399.30, 6.79%) was trading at 22.2 times of weekly average. G R Infraprojects Ltd. (1,165.05, -4.41%) and eClerx Services Ltd. (1,402.65, 2.06%) were trading with volumes 17.8 and 8.7 times weekly average respectively on BSE at the time of posting this article.

    BSE 500: highs, lows and moving averages

    15 stocks took off, crossing 52-week highs, while 8 stocks tanked below their 52-week lows.

    Stocks touching their year highs included - Aegis Logistics Ltd. (322.75, 1.83%), Akzo Nobel India Ltd. (2,271.25, 1.83%) and Allcargo Logistics Ltd. (453.60, 8.22%).

    Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,325.30, -0.73%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,109.40, -2.10%).

    20 stocks climbed above their 200 day SMA including Zomato Ltd. (72.80, 13.84%) and Swan Energy Ltd. (244.25, 12.66%). 11 stocks slipped below their 200 SMA including Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (602.40, -10.55%) and DCM Shriram Ltd. (1,019.75, -2.67%).

     
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    The Baseline
    10 Nov 2022
    Chart of the week: Sectors see mixed investments from FPIs in October
    By Abdullah Shah

    Foreign investors have become increasingly selective of where they invest in the Indian market. While the net outflow of FPIs in October was just Rs 10 crore, they pulled out more than Rs 6,000 crore from just two sectors. 

    The Financial Services sector saw FPIs take out Rs 4,686 crore in October, the most among all sectors. While they pulled out Rs 1,673 crore in September. This suggests rising negative interest in the Indian market among foreign investors as the Financial Services sector is considered to be a proxy for the Indian economy, alongside the IT sector. Oil, Gas & Consumable Fuels sector has the second highest pullout by FPIs to the tune of Rs 1,418 crore in October compared to a pull out of Rs 4,410 in September. 

    There is still hope for the Indian market as FPIs have invested Rs 1,289 crore in October in the Construction sector rising from an investment of Rs 628 in September, the most among all sectors. The IT sector comes in next with a net investment of Rs 945 crore.