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The Baseline
24 Nov 2022
Chart of the Week: India’s trade deficit grows as merchandise exports fall
By Abdullah Shah

India’s trade deficit widened to $14.6 billion in October 2022, the highest since June 2020. A major reason for this was the 16.7% YoY fall in merchandise exports to $29.8 billion. It was the first such decline in exports in the past 19 months. Demand fell across the US and EU markets, while the festive season in India slowed domestic production. In this edition of chart of the week, we take a look at the merchandise sectors which had the most impact on imports and exports.

The electronic goods sector is the only major sector which saw a rise in exports in October. It grew 37.6% YoY to $1.8 billion. The engineering goods sector fell 21.3% YoY in exports and contributed $7.4 billion (nearly 25%) to  merchandise exports in October. Export of handloom products fell the most by 46.2% YoY to $719 million, while  it was down 11.3% YoY to $4.7 billion for petroleum products. 

Although exports fell, merchandise imports rose by a small margin of 5.7% YoY to $56.7 billion in October. Biggest contributor to this rise in imports was the petroleum, crude & products sector – up 29.1% YoY and contributed $15.9 billion. On the contrary, the gold sector imports fell the most by 27.5% YoY to $3.7 billion, while the electronic goods sector declined 9.2% YoY to $6.2 billion. 

Trendlyne Marketwatch
Trendlyne Marketwatch
24 Nov 2022
Market closes higher, Capri Global Holdings buys 1.59% stake in Fino Payments Bank

Trendlyne Analysis

Indian indices rose sharply during the final hour of the trading session and closed in the green. BSE Sensex touched its life-time high and closed 1.2% higher. European stocks followed the global trend and traded higher than Wednesday's close. Major Asian indices closed in the green, in line with the US indices, which closed higher on Wednesday.

US stocks rose as the US Federal Open Market Committee (FOMC) Meeting Minutes showed that interest rate hikes may slow down going forward. The S&P 500 index closed 0.6% higher and touched a two-month high while the tech-heavy NASDAQ 100 index rose 1%. Brent crude oil futures traded marginally higher after falling over 4% on Wednesday as rising Covid cases in China hurt crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty FMCG and Nifty Bank closed higher than Wednesday’s close. Nifty IT closed in the green, taking cues from the tech-heavy NASDAQ 100, which closed nearly 1% higher on Thursday.

Nifty 50closed at 18,484.10 (216.9, 1.2%), BSE Sensexclosed at 62,272.68 (762.1, 1.2%) while the broader Nifty 500closed at 15,680.80 (142.7, 0.9%)

Market breadth is in the green. Of the 1,938 stocks traded today, 1,061 were on the uptrend, and 811 went down.

  • Relative strength index (RSI) indicates that stocks like Indian Railway Finance Corp, Union Bank of India, NBCC (India) and IIFL Financeare in the overbought zone.

  • Easy Trip Planners rises in trade after it announces a board meeting on December 1 to consider a proposal on acquisition. The stock shows up in a screener with improving RoA for the past two years.

  • KPI Green Energyis rising as its shareholders will consider the issuance of bonus shares at its board meeting on Wednesday. The company shows up in a screenerlisting stocks with improving book value per share for the past two years.

  • IOL Chemicals and Pharmaceuticals rises as the Centre grants it a patent for developing a safe process to prepare drugs used to treat high blood pressure and heart failure. It shows up in a screener for companies with improving book value per share for the past two years.

  • Aurobindo Pharma and Quess Corp hit their 52-week lows of Rs 456.6 and Rs 423.3 respectively. Aurobindo Pharma falls for seven consecutive sessions, while Quess Corp trades lower for two sessions.

  • Fino Payments Bank is rising after Capri Global Holdings buys a 1.59% stake (13.2 lakh shares) worth Rs 30.2 crore in a bulk deal. The company shows up on a screener with stocks rising more than 20% in the past month.

  • Indian Oil Corp and Chennai Petroleum Corp rise as ICICI Bank plans to invest in the seed equity capital of the proposed joint venture (JV) of the oil corporations. ICICI Bank will hold a 10% stake in the JV. As a seed equity investor, the bank does not have any obligation to fund the future equity requirements of the project.

  • PB Fintech (Policybazaar) is surging in trade as 73.4 lakh shares (1.6% equity) amounting to Rs 295 crore change hands, according to reports.

  • Brokerage firm Ambit recommends a ‘Buy’ rating on Zomato with a target price of Rs 94, indicating an upside of 50%, according to reports. It is optimistic about the company’s growth as Zomato's market share in the food delivery space rose to 55% in H1CY22. The company’s gross merchandise value in food ordering in H1CY22 stands at 56%, beating Swiggy’s 40%. The brokerage expects the entire enterprise (including Blinkit) to turn profitable by FY27.

  • Larsen & Toubro's heavy civil infrastructure business wins an order worth Rs 1,000-2,500 crore from the Greenko Group for the development of an off-stream pumped storage project in Madhya Pradesh.

  • Neeraj Kanwar, Managing Director of Apollo Tyres, says that the company’s volumes rose 9%. He adds that it aims to expand India business margins to 12% as raw material prices ease and new products are introduced in the market.

  • IT consulting & software companies like Persistent Systems, HCL Technologies, Larsen & Toubro Infotech, Infosys and Tech Mahindra are rising in trade. All the constituents of the broader Nifty IT index are trading in the green.

  • Cipla is falling as the US FDA issues an Official Action Indicated (OAI) status to its manufacturing facility in Goa. The OAI status generally means that the regulatory found objectionable conditions during inspections. The US FDA will hold further product approvals for the Goa facility until the observations are resolved.

  • Delhivery is rising as 32.1 lakh shares (0.44% equity) amounting to Rs 104.8 crore change hands, according to reports.

  • ICICI Securities maintains its ‘Buy’ rating on Balkrishna Industries with a target price of Rs 2,479. This implies an upside of 26.5%. The brokerage is positive about the company’s prospects given its lower input costs compared to its peers and its focus on exports. It expects the company’s revenue to grow at a CAGR of 16% over FY22-24.

  • Healthcare stocks like Global Health, Apollo Hospitals Enterprise, and Aster DM Healthcare are rising in trade. The broader Healthcare Facilities industry improves by more than 2%.

  • Sugar stocks like Shree Renuka Sugars, EID (Parry) India, Balrampur Chini Mills and Triveni Engineering & Industries are rising in trade. The Indian Sugar Mills Association suggests that the companies will be allowed to export an additional 2-4 million tonnes this season, according to reports. The broader sugar industry is also up by more than 2% in trade.
  • Tata Consumer Products is rising as the company plans to buy Bisleri International for Rs 7,000 crore, according to reports. The company features in a screener of stocks with improving return on capital employed (RoCE) for the past two years.

  • Keystone Realtors’ shares list at a 2.6% premium to the issue price of Rs 541 on its debut on the bourses. The Rs 635 crore IPO was subscribed for 2X the total shares on offer.

  • Glenmark Pharma is falling after the US FDA issued a warning letter to its Goa manufacturing facility. The unit was given an official action indicated (OAI) status after an inspection in May 2022.

  • Polus Global Fund sells a 2.3% stake (53.8 lakh shares) in the recently listed IPO, Inox Green Energy, for Rs 32.9 crore in a bulk deal. Meanwhile, Pilot Consultants picks up a 2.45% stake (57.6 lakh shares) in the company for Rs 34.9 crore in another bulk deal.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (432.00, 7.89%), Indian Railway Finance Corporation Ltd. (30.90, 5.64%) and Apollo Hospitals Enterprise Ltd. (4,815.05, 4.56%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (22.05, -4.55%), One97 Communications Ltd. (441.10, -2.50%) and Vodafone Idea Ltd. (8.05, -2.42%).

Volume Rockets

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

Top high volume gainers on BSE included SJVN Ltd. (38.90, 7.31%), Indoco Remedies Ltd. (415.35, 7.19%) and Avanti Feeds Ltd. (391.55, 7.17%).

Top high volume losers on BSE were Happiest Minds Technologies Ltd. (941.00, -2.13%), Alembic Pharmaceuticals Ltd. (599.75, -1.73%) and Gillette India Ltd. (5,001.10, -1.46%).

Cera Sanitaryware Ltd. (5,506.25, 2.96%) was trading at 24.4 times of weekly average. Welspun India Ltd. (80.35, 4.96%) and Mangalore Refinery And Petrochemicals Ltd. (56.05, 6.05%) were trading with volumes 12.4 and 11.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks took off, crossing 52-week highs, while 9 stocks hit their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (330.15, 0.15%), Bank of Baroda (170.40, 0.92%) and Bank of India (81.30, 2.46%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (456.30, -0.73%) and Avanti Feeds Ltd. (391.55, 7.17%).

18 stocks climbed above their 200 day SMA including Gujarat State Petronet Ltd. (260.45, 9.50%) and HDFC Life Insurance Company Ltd. (572.55, 4.55%). 6 stocks slipped below their 200 SMA including Adani Transmission Ltd. (2,790.85, -2.31%) and Aarti Drugs Ltd. (442.30, -2.25%).

Trendlyne Marketwatch
Trendlyne Marketwatch
23 Nov 2022
Market closes flat, Goldman Sachs expects Nifty 50 to reach 20,500-mark by 2023

Trendlyne Analysis

Indian indices closed flat with the Nifty 50 closing below the 18,300 mark. European indices traded higher than Tuesday’s levels. Major Asian indices closed in the green, in line with the US indices, which closed higher on Tuesday. Retail and energy stocks helped US indices to close in the green. The S&P 500 index closed 1.4% higher and touched a two-month high while the tech-heavy NASDAQ 100 rose 1.5%. Investors look ahead to the US Federal Open Market Committee (FOMC) Meeting Minutes to be released later today. Brent crude oil futures trade flat after rising 0.8% on Tuesday as US crude inventory fell by more than expected last week, raising supply concerns.

Nifty Smallcap 100 closed in the green, despite the benchmark index closing flat. Nifty Media and Nifty Bank closed higher than Tuesday’s levels. Nifty IT closed in the red, despite the tech-heavy NASDAQ 100, closing in the green on Tuesday.

Nifty 50closed at 18,267.25 (23.1, 0.1%), BSE Sensexclosed at 61,510.58 (91.6, 0.2%) while the broader Nifty 500closed at 15,538.15 (29.0, 0.2%)

Market breadth is in the green. Of the 1,932 stocks traded today, 1,048 were on the uptrend, and 830 went down.

  • Money Flow Index (MFI) indicates that stocks like Bank of Maharashtra, Union Bank of India, Amara Raja Batteries and NBCC (India) are in the overbought zone.

  • Fertilizer stocks like Rashtriya Chemicals & Fertilizers, The Fertilisers and Chemicals Travancore, Gujarat Narmada Valley Fertilizers & Chemicals and Chambal Fertilisers & Chemicals are rising in trade. The broader sector of fertilizers is also trading in the green.

  • Goldman Sachs expects the Nifty 50 index to reach the 20,500 mark by the end of 2023. It added that RBI’s repo rate could be at 6.75% by February 2023.
  • Trendlyne’s Forecaster Dashboard suggests stocks like Phoenix Mills, Ircon International and Petronet LNG to have the highest capex growth in FY23.

  • Canara Bank and IIFL Finance hit their 52-week highs of Rs 326.3 and Rs 475 respectively. While Canara Bank rises for five consecutive sessions, IIFL Finance trades higher for three sessions.

  • KPIT Technologies rises after announcing that Renault Group selected it as a strategic software scaling partner for its next-generation software-defined vehicle programme. The stock shows up on the screener for companies with revenue increasing sequentially for the past eight quarters.

  • M Anandan, Chairman and Managing Director of Aptus Value Housing Finance, says that the company aims to maintain a 25-30% CAGR in loan growth. He adds that NPAs will be at 1% in the upcoming quarters.

  • Tata Teleservices (Maharashtra) rises as it announces a strategic expansion of its cloud communication suite Smartflo with WhatsApp Business Platform to offer enhanced business communication solutions.

  • Aurobindo Pharma is rising as its step-down subsidiary Acrotech Biopharma signs a licensing agreement with Evive Biotech to commercialise Ryzneuta in the US market. The product is used for post-treatment of cancer patients after they go through chemotherapy.

  • BASF India's Managing Director Narayan Krishnamohan and Whole-Time Director Rajesh Naik resign from the company, effective from December 31. The company appoints Alexander Gerding as the Managing Director and Anil Kumar Choudhary as the Whole-time Director, subject to the approval of the shareholders.

  • Trent is rising as 0.2% equity amounting to Rs 100.4 crore change hands in a block deal, according to reports.

  • FSN E-Commerce Ventures (Nykaa) is falling as Chief Financial Officer Arvind Agarwal resigns from the company to pursue other opportunities in the digital economy and start-up space. His resignation will be effective from November 25.

  • DCW surges after announcing plans to expand the capacity of its Chlorinated Polyvinyl Chloride (CPVC) and Synthetic Iron Oxide Pigment (SIOP) plants to 100%. The company expects to double CPVC production capacity by H2FY24 and increase SIOP capacity utilisation by Q1FY24. It will invest around Rs 125 crore towards this.

  • Lighthouse India Fund sells an additional 0.65% stake (1.8 crore shares) in FSN E-Commerce Ventures (Nykaa) for Rs 335.7 crore in a bulk deal. Meanwhile, Catalyst Trusteeship sold a 1.56% stake (54 lakh shares) in Max Financial Services worth Rs 344.1 crore in a bulk deal.

  • Citi maintains its ‘Sell’ rating on Vedanta with a target price of Rs 235. This comes after the company’s board announced a third interim dividend for FY23. The brokerage says that dividend yield might be insufficient if there is a fall in commodity prices.
  • Bharti Airtel’s arm Nxtra Data starts construction of its hyper-scale data centre in Kolkata. The company plans to invest Rs 600 crore towards the development and construction of the centre. The stock makes it to the screener for companies with improving cash flow from operations over the past two years.

  • Indian rupee falls to 81.8 from the previous close of 81.67 against the US dollar in early trade today.
  • Anil Gupta, promoter of KEI Industries, sells a 0.2% stake amounting to Rs 32.1 crore in the company. He now holds a 12.4% stake in the company.

  • Inox Green Energy Services’ shares list at a 7.7% discount to the issue price of Rs 65 on its debut on the bourses. The Rs 740 crore IPO was subscribed for 1.5X the total shares on offer.

  • Gland Pharma, Go Fashion (India) and Sumitomo Chemical underperform the Nifty 50 index by more than 15% in the past month post its results.

  • Siemens’ Q4FY22 (financial year followed is October – September) net profit jumps 2X YoY to Rs 652.3 crore. It had exceptional gains of Rs 355 crore from the divestment of its large drives application business by its subsidiary. Revenue rose 10.9% YoY because of an increase in new orders in Q4. The company shows up on the screener listing stocks with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Punjab National Bank (50.35, 4.46%), InterGlobe Aviation Ltd. (1,893.35, 4.09%) and Apollo Hospitals Enterprise Ltd. (4,605.20, 3.03%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (301.05, -5.79%), One97 Communications Ltd. (452.40, -5.12%) and Schaeffler India Ltd. (2,943.00, -3.56%).

Volume Rockets

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

Top high volume gainers on BSE included RHI Magnesita India Ltd. (795.90, 12.96%), Rashtriya Chemicals & Fertilizers Ltd. (116.30, 11.51%) and NBCC (India) Ltd. (41.65, 10.48%).

Top high volume losers on BSE were Shriram City Union Finance Ltd. (1,992.65, -1.50%) and Siemens Ltd. (2,769.75, -1.20%).

Edelweiss Financial Services Ltd. (63.90, 6.95%) was trading at 16.3 times of weekly average. AstraZeneca Pharma India Ltd. (3,375.10, 3.81%) and Rallis India Ltd. (239.25, 4.32%) were trading with volumes 11.7 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks overperformed with 52-week highs, while 15 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (329.65, 3.34%), Bank of Baroda (168.85, 1.26%) and Bank of India (79.35, -1.37%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (365.35, -2.91%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,300.00, -0.68%).

11 stocks climbed above their 200 day SMA including Sun Pharma Advanced Research Company Ltd. (253.60, 4.36%) and InterGlobe Aviation Ltd. (1,893.35, 4.09%). 3 stocks slipped below their 200 SMA including Thermax Ltd. (2,076.00, -2.56%) and L&T Technology Services Ltd. (3,815.60, -1.04%).

Trendlyne Marketwatch
Trendlyne Marketwatch
22 Nov 2022
Market closes higher, realty stocks fall in trade

Trendlyne Analysis

Indian indices closed in the green with the Nifty 50 closing above the 18,200 mark. European indices traded higher than Monday’s close. Most major Asian indices closed higher after falling on Monday as investors remained wary of rising Covid cases in China, which announced its first new Covid-related death in nearly six months. This could give way to a new wave of lockdowns, leading to economic slowdown. As a result, US indices also closed in the red on Monday.

The S&P 500 index fell 0.4%, led by Tesla, which closed over 6.8% lower after hitting a new two-year low during intraday. However, the Dow Jones closed flat, helped by a 6.3% rise in Disney shares as the company replaced CEO Bob Chapek with his predecessor, Bob Iger. Brent crude oil futures recovered over $5 from its day's low but still closed in the red on Monday. Crude oil prices bounced back after Saudi Arabia denied reports of OPEC+ considering an oil output hike of 500,000 barrels per day.

Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty Bank closed higher than Monday’s levels. Nifty IT closed higher, despite the tech-heavy NASDAQ 100 closing over 1% lower on Monday.

Nifty 50closed at 18,244.20 (84.3, 0.5%), BSE Sensexclosed at 61,418.96 (274.1, 0.5%) while the broader Nifty 500closed at 15,509.20 (55.4, 0.4%)

Market breadth is in the red. Of the 1,940 stocks traded today, 866 showed gains, and 1,015 showed losses.

  • Relative strength index (RSI) indicates that stocks like Bank of Maharashtra, Indian Railway Finance Corp, Union Bank of India and Hindustan Zinc are in the overbought zone.

  • FSN E-Commerce Ventures (Nykaa) falls over 3% in trade as reports suggest that Lighthouse India likely offloaded 1.8 crore shares in a block deal.
  • Easy Trip Planners hits an all-time high of Rs 67.3 after it inks a memorandum of understanding with Assam Tourism Development Corp to share resources and collaborate to boost the growth of tourism in Assam.

  • Steel Strips Wheels rises as it signs an MoU with Israel-based Redler Technologies. The MoU pertains to the establishment of a joint venture undertaking to focus on the development, manufacturing and marketing of motion control solutions for two, three and four-wheeled electric vehicles.

  • India’s domestic air passenger traffic rises 27% YoY in October. Market share for Indigo, Vistara and Air India fell MoM in October, while Air Asia gained.
  • Stocks like IndusInd Bank, GAIL (India), Trentand Indian Railway Finance Corptrade above their second resistance or R2 levelas the market trades higher.

  • Realty stocks like Macrotech Developers, Indiabulls Real Estate, Phoenix Mills and Brigade Enterprises are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

  • Trendlyne’s Forecaster estimates weak revenue growth for State Bank of India, Power Grid Corp and HDFC Life Insurance in FY23.

  • Yes Securities maintains its ‘Buy’ rating on Aarti Industries with a target price of Rs 845, indicating an upside of 25.4%. The brokerage is positive about the company’s future growth prospects given its capacity expansion plans, ramp-up in operations and new product launches. It expects the company’s revenue to grow at a CAGR of 10.4% over FY22-25.

  • Reliance Jio gains 7.2 lakh wireless subscribers in September on a net basis, while Bharti Airtel adds a net 4.1 lakh subscribers. Vodafone Idea loses 40.1 lakh subscribers.
  • Raymond, ABB India and Oil India have a Trendlyne Durability score of above 80 and EPS TTM growth of more than 100%.

  • One97 Communications (Paytm) falls and touches a 52-week low of Rs 484.5. Reports suggest that rampant selling by foreign investors because of the end of the anchor lock-in period is the reason for the stock to fall. It shows up on a screener of bearish stocks with low to medium Trendlyne Momentum Score.

  • Crude oil prices reverse overnight losses after Saudi Arabia denies news of a possible output rise by OPEC+. Brent crude fell to $82.5 before rising to $87.6 per barrel in trade. Crude oil prices fell amid reports that OPEC+ will consider increasing output to 5 lakh barrels per day.
  • Jubilant Foodworks' arm Jubilant FoodWorks International Luxembourg approves incorporation of a wholly owned subsidiary company in Nepal. The to-be-named subsidiary shall have the exclusive right to develop and operate Domino‘s Pizza stores in the territory of Nepal.

  • ICICI Securities upgrades Bharti Airtel to 'Buy' rating from 'Add' with a target price of Rs 970, according to reports. This indicates an upside of 13.8%. The brokerage believes that the company's recent price hikes in Haryana and Odisha will raise the average revenue per unit (ARPU) to Rs 300 from Rs 190 in Q2FY23.

  • JK Paper is rising as it is set to acquire two paper & packaging board companies, Horizon Packs and Securipax Packaging, for Rs 578 crore. It will acquire an 85% stake in both companies now and the remaining 15% in three years. The company believes that this will enable the expansion of its corrugated packaging business.

  • CB Ananthakrishnan, Director (Finance) and CFO of Hindustan Aeronautics, says that the EBITDA margin guidance is at 26-27% for FY23, compared to the earlier 24-25%. He expects revenue growth of 8% during FY23 and FY24.

  • Kaynes Technology’s shares list at a 32.5% premium to the issue price of Rs 587 on its debut on the bourses. The Rs 857.8 crore IPO was subscribed for 34.2X the total shares on offer.

  • Public holder Dharampal Satyapal sells a 0.14% stake (25 lakh shares) in Easy Trip Planners for Rs 13.5 crore in a bulk deal, while Saint Capital Fund picks up a 0.13% stake (22 lakh shares) for Rs 11.5 crore.

  • CA Swift Investments sells a 2.5% stake (1.8 crore shares) in Delhivery worth Rs 607.4 crore in a bulk deal. In another deal, Morgan Stanley Asia picks up a 0.67% stake (48.5 lakh shares) in Delhivery for Rs 160.2 crore.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,155.20, 4.70%), Bank of India (80.45, 4.35%) and The New India Assurance Company Ltd. (95.55, 3.69%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (476.80, -11.21%), Adani Transmission Ltd. (2,875.15, -4.76%) and FSN E-Commerce Ventures Ltd. (175.20, -4.52%).

Volume Rockets

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

Top high volume gainers on BSE included Easy Trip Planners Ltd. (68.40, 19.37%), UCO Bank (20.95, 12.33%) and Mazagon Dock Shipbuilders Ltd. (866.75, 12.01%).

Top high volume losers on BSE were Vakrangee Ltd. (28.40, -8.09%), Avanti Feeds Ltd. (378.00, -4.91%) and Max Financial Services Ltd. (644.80, -1.67%).

UTI Asset Management Company Ltd. (683.75, 0.24%) was trading at 16.4 times of weekly average. Torrent Power Ltd. (530.05, 0.93%) and Gujarat State Petronet Ltd. (238.15, 1.25%) were trading with volumes 6.6 and 5.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks hit their 52-week highs, while 14 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of India (80.45, 4.35%), Bank of Maharashtra (27.85, -3.30%) and Bharti Airtel Ltd. (847.60, -0.42%).

Stocks making new 52 weeks lows included - Avanti Feeds Ltd. (378.00, -4.91%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,066.00, -3.39%).

13 stocks climbed above their 200 day SMA including Prism Johnson Ltd. (120.25, 3.53%) and Glenmark Pharmaceuticals Ltd. (422.40, 2.61%). 12 stocks slipped below their 200 SMA including Indiabulls Real Estate Ltd. (80.80, -4.09%) and Bajaj Electricals Ltd. (1,074.00, -1.72%).

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The Baseline
21 Nov 2022
Five rising stocks with analyst ‘Buy’ calls
By Abhiraj Panchal

We take a look at five stocks that have been rising over 5% in the past month, with analyst ‘Buy’ calls.

  1. Oil And Natural Gas Corp: HDFC Securities maintains its ‘Buy’ rating on this oil & gas exploration & production company with a target price of Rs 169. This indicates an upside of 24.8%. In Q2FY23, the company’s net profit fell 54% YoY to Rs 8,299.4 crore and revenue rose 38.2% YoY.  

Analysts Harshad Katkar, Nilesh Ghuge, Akshay Mane and Rutvi Chokshi are positive about the company due to an improvement in crude oil realisations and domestic gas price realisations. 

The analysts were also positively surprised by the firm’s standalone Q2FY23 results, as it beat their net profit estimates. They attribute this outperformance to “lower-than-expected statutory levies, lower employee cost, lower depreciation, depletion & amortisation costs and higher other income”. The analysts find the management’s crude oil and gas production guidance for FY23, FY24 and FY25 encouraging. They expect the company’s revenue to grow at a CAGR of 10.6% over FY22-25.

  1. Hindustan Aeronautics: ICICI Direct maintains its ‘Buy’ rating on this defence company with a target price of Rs 3,300. This indicates an upside of 24.3%. In Q2FY23, its net profit rose 44.2% YoY to Rs 1,221.2 crore despite its revenue declining 7.3% YoY. 

Analysts Chirag Shah and Vijay Goel said the firm’s EBITDA margins also grew by 919 bps YoY to 31.5%. They attributed the improvement in profitability and margins to lower other costs and a higher share of revenue contribution from the maintenance, repair & overhaul (MRO) segment.  

Shah and Goel believe the company’s revenue growth in the coming quarters will be driven by its healthy order book, which stands at Rs 83,800 crore. They also expect a continuous order inflow in the MRO segment to bolster the order pipeline. The analysts added that “execution of other key orders and sustained growth in MRO will drive revenue growth in double digits from FY25”. They estimate the company’s net profit to grow at a CAGR of 11.8% over FY23-25.    

  1. Bharat Forge: Prabhudas Lilladher reiterates its ‘Buy’ call on this forging company with a target price of Rs 950, indicating an upside of 14.9%. The stock price rose by 6.4% during the past month. The company’s net profit in Q2FY23 fell by 46.2% YoY to Rs 145.9 crore despite a 28.1% YoY rise in revenue to Rs 3,122.3 crore. According to analyst Mansi Lall, the poor performance was caused by high raw material costs and a one-time charge of Rs 13 crore on a defence business. 

Bharat Forge won export orders for passenger vehicles and industrial segments, as well as a defence export order worth $155 million for artillery products to be executed over the next three years. Lall said, “The management highlighted that near-term demand for commercial vehicles looks positive in both India and export markets.” She remains optimistic on the back of a “positive outlook for the automotive industry as semiconductor supply issue eases out along with healthy order wins in the industrial space”.

  1. Bharat Heavy Electricals: ICICI Securities maintains a ‘Buy’ call on this industrial valve manufacturer with a target price of Rs 100, indicating an upside of 38.8%.The stock rose by 5.7% in the past month. In Q2FY23, the company reported a net profit of Rs 12.1 crore, as against a loss in the previous year, while its revenue increased marginally to Rs 5,418.7 crore. 

Bharat Heavy Electricals’ order inflow during Q2FY23 stood at Rs 12,000 crore and the total order book now stands at Rs 1.06 lakh crore. Rahul Modi, Ashwani Sharma and Aashna Manaktala said, “Given the addition of new orders with favourable payment terms, we expect execution to gather pace, followed by margin improvement supported by the recent correction in commodity prices.” 

The valve manufacturer's trade receivables declined 8% but overall receivables grew 8% YoY. The analysts concluded that Bharat Heavy Electricals’ efforts to improve cash flow and reduce receivables could achieve sustainable and profitable growth. 

  1. Manappuram Finance: Motilal Oswal maintains its ‘Buy’ call on this NBFC with a target price of Rs 140. This indicates an upside of 25.7%. The stock price rose by 7.9% during the past month. In Q2Y23, the company’s net profit grew by 10.4% YoY to Rs 408.4 crore (17% higher than the brokerage’s estimate), while revenue increased 10.3% YoY to Rs 1,714.1 crore. Net interest income improved 9% YoY to Rs 1,080 crore, 6% higher than the brokerage’s estimates.

Analysts Abhijit Tibrewal, Nitin Aggarwal and Parth Desai ask the question: Should the NBFC now change from gold loan growth and margin compression to healthier yields and diversification in the loan book. “We feel Manappuram Finance should tread carefully in the non-gold segments as it is yet to exhibit a clear ‘right to win’ in these segments and strong non-gold AUM growth is also fraught with risks,” they said. 

The analysts raised their estimates and model profit CAGR of 13% over FY22-24 by factoring in higher margins in the gold loan segment and moderation in credit costs in the MFI business.

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

(You can find all analyst picks here)

Trendlyne Marketwatch
Trendlyne Marketwatch
21 Nov 2022
Market closes lower, Goldman Sachs lowers India’s GDP forecast for 2023 to 5.9% from 6.9%

Trendlyne Analysis

Indian indices closed in the red with the Nifty 50 closing below the 18,200 mark. European stocks traded lower than Friday’s levels. Major Asian indices closed in the red, despite the US indices closing in the green on Friday. US stocks rose marginally on Friday but fell on a weekly basis as investors assessed the impact of high inflation on company financials. Investors will also look forward to the US Federal Open Market Committee (FOMC) Meeting Minutes on Wednesday this week. Crude oil traded in the red for a fourth straight session as rising Covid cases in China and potential global recession affect the crude oil demand. Brent crude oil futures has lost over 6% in the last four trading sessions.

Nifty Smallcap 100 closed higher, despite the benchmark index trading in the red. Nifty Bank and Nifty FMCG closed lower than Friday’s close. Nifty IT closed in the red, despite the tech-heavy NASDAQ 100 closing flat on Friday.

Nifty 50closed at 18,159.95 (-147.7, -0.8%), BSE Sensexclosed at 61,144.84 (-518.6, -0.8%) while the broader Nifty 500closed at 15,453.80 (-97.1, -0.6%)

Market breadth is in the red. Of the 1,970 stocks traded today, 744 were on the uptick, and 1,152 were down.

  • Housing Development Finance Corp sees a short buildup in its November 24 future series as its open interest rises 10.5% with a put-call ratio of 0.84.

  • Ajit Isaac, promoter of Quess Corp, buys a 0.03% stake amounting to Rs 2.3 crore in the company. He now holds a 11.35% stake in the company.

  • Aarti Industries and Deepak Fertilisers & Petrochemicals Corp ink a binding term agreement for offtake and supply of Nitric Acid for 20 years. The estimated value of the order is more than Rs 8,000 crore.

  • M K Dhanuka, Managing Director of Dhanuka Agritech, expects double-digit growth in sales in FY23. He also expects margin pressures to continue in Q3FY23 due to a rise in input costs.
  • Financial Institutions, Commodity Printing/Stationaryand Mining industries rise by more than 3% in trade.

  • Goldman Sachs lowers India’s GDP forecast for 2023 to 5.9% from 6.9% earlier. The brokerage expects inflation to rise due to further interest rate hikes by the Reserve Bank of India.

  • Ahluwalia Contracts wins an order worth Rs 120.2 crore from the Government of Assam for the construction of Lachit Moidam Memorial and Cultural Complex at Lahdoigarh.

  • Aurobindo Pharma is falling as it receives 10 observations from the US FDA for its intermediate facility in Telangana. According to the company statement, the observations were procedural in nature and not related to data integrity.

  • Allied Digital Services is rising as the company wins a contract worth Rs 207.2 crore from the Punjab Municipal Infrastructure Development Company (PMIDC) in association with KEC International. The contract is for the smart cities project of Amritsar, Jalandhar and Sultanpur Lodhi.

  • ICICI Securities upgrades its rating on Delhivery to ‘Buy’ from ‘Sell’ with a target price of Rs 460, implying an upside of 31.1%. The brokerage turns positive on the company’s prospects given its low-cost structure, strong balance sheet and robust brand recall. It expects the company’s revenue to grow at a CAGR of 25.6% over FY22-25.

  • PVR is rising in trade as 0.70 lakh shares (0.1% equity) amounting to Rs 12.28 crore change hands, according to reports.

  • Zomatofalls as its co-founder Mohit Gupta resigns on Friday. "I am deciding to move on from Zomato to seek the other unknown adventures that life holds for me," Gupta says.

  • Engineers India wins an order from the Chennai Petroleum Corp for overall project management and engineering, procurement and construction management services. The services will be provided for revamping the once-through hydrocracker unit (OHCU), catalytic dewaxing unit (CDWU) and other off-site facilities at the Manali refinery.

  • CLSA does not expect further duty cuts on steel prices. However, it remains cautious as there is a downside risk to steel prices as global demand falls. The brokerage says that domestic prices of steel are at a premium to import and export parity.
  • Easy Trip Planners is surging as it trades ex-bonus and ex-split today. The company had fixed November 22 as the record date for its 1:2 stock split and 3:1 bonus issue. The stock shows up on the screener for companies with low debt.

  • IT stocks like Persistent Systems, L&T Technology Services, Coforge and Tech Mahindra are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • Five-Star Business Finance’s shares list at a 1.1% discount to the issue price of Rs 474 on its debut on the bourses. The Rs 1,593.4 crore IPO was subscribed for 70% of the total shares on offer.

  • Archean Chemical Industries’ shares list at a 10.6% premium to the issue price of Rs 407 on its debut on the bourses. The Rs 1,462.3 crore IPO was subscribed for 32X the total shares on offer.

  • TPG Growth IV fund sells a 1.9% stake (5.4 crore shares) in FSN E-Commerce Ventures (Nykaa) for Rs 1,000.5 crore in a bulk deal on Friday.

  • PB Fintech’s wholly-owned subsidiary PB Fintech FZ buys a 26.72% stake in YKNP Marketing Management for $2 million in an all-cash deal. With this acquisition, PB Fintech will cater to the needs of the UAE market with YKNP providing sales support to the company.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (23.45, 9.84%), Shriram Transport Finance Company Ltd. (1,300.15, 3.91%) and Punjab National Bank (47.60, 3.82%).

Downers:

Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (183.50, -4.63%), Oil And Natural Gas Corporation Ltd. (135.45, -4.44%) and Zomato Ltd. (64.30, -4.24%).

Volume Shockers

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

Top high volume gainers on BSE included Easy Trip Planners Ltd. (57.30, 20.03%), UCO Bank (18.65, 18.41%) and Bank of Maharashtra (28.80, 14.74%).

Top high volume losers on BSE were Avanti Feeds Ltd. (397.50, -6.27%), Ajanta Pharma Ltd. (1,224.00, -1.84%) and Delhivery Ltd. (344.55, -1.75%).

Swan Energy Ltd. (255.95, 14.21%) was trading at 16.0 times of weekly average. Punjab & Sind Bank (21.20, 12.47%) and Escorts Kubota Ltd. (2,196.05, 8.13%) were trading with volumes 11.2 and 9.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks overperformed with 52-week highs, while 11 stocks hit their 52-week lows.

Stocks touching their year highs included - Bank of India (77.10, 2.66%), Bank of Maharashtra (28.80, 14.74%) and Bharti Airtel Ltd. (851.20, 1.66%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,308.55, -0.82%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (1,105.00, -1.36%).

9 stocks climbed above their 200 day SMA including Indoco Remedies Ltd. (378.00, 3.14%) and Edelweiss Financial Services Ltd. (59.70, 2.93%). 20 stocks slipped below their 200 SMA including Mahindra Lifespace Developers Ltd. (378.90, -3.27%) and Strides Pharma Science Ltd. (328.90, -3.05%).

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The Baseline
18 Nov 2022
Which stocks did superstar investors sell in Q2FY23?
By Suhas Reddy

Where do investors get their investing cues from? In the Indian market, investors track Superstar investors for investment ideas, and are quick to identify the buying and selling patterns of these big bulls. 

Earlier, we looked at the stocks bought by Superstars in Q2FY23. Here, we focus on their key sells. We take a look at recent stake sales by ace investors like Rakesh Jhunjhunwala (now managed by RARE Enterprises), Ashish Kacholia, Sunil Singhania and Dolly Khanna in Q2FY23.

Rakesh Jhunjhunwala’s portfolio cuts stake below 1% in three companies

Rakesh Jhunjhunwala's portfolio, which is currently managed by Rare Enterprises, sold  stakes in 14 companies in Q2FY23. The portfolio’s two biggest sells include Bilcare and Autoline Industries, where it cut its stakes by over 7.5% and 3.5% respectively. 

Bilcare is a small-cap healthcare supplies company, for which the corporate insolvency resolution process began on November 11. The stock fell by 36.3% from last Friday (November 11) till Wednesday. Autoline Industries is a small-cap auto parts & equipment company that rose 63.6% in Q2, and its profit in the same period jumped nearly 9X YoY. Yet RJ’s portfolio pared its stake below 1% in the company. It also took its stake in IndiaBulls Housing Finance below 1% from 1.2%.

The big bull’s portfolio reduced its holdings in Jubilant Ingrevia and Federal Bank by 1.6% and 1% to bring down its stakes to 3.2% and 2.6% respectively. 

The portfolio cut  0.5% in Canara Bank, D B Realty and Rallis India each, reducing these holdings to 1.5%, 1.5% and 9.4% respectively. It also cut 0.3% from its stake in Anant Raj to 3.1%.

The Rare Enterprises managed portfolio also reduced its stake in Karur Vysya Bank, Edelweiss Financial Services and Star Health & Allied Insurance by 0.1% each to take the holdings to 4.4%, 1.5% and 17.4% respectively. It also sold minor stakes in Nazara Technologies and Crisil

Sunil Singhania sells 1% stake in industrial machinery company The Anup Engineering

In Q2FY23, Sunil Singhania’s Abakkus Fund pared its stake in financial services company CMS Info Systems, defence company Paras Defence and Space Technologies, plastic products and electric appliances manufacturer Surya Roshni, movies and entertainment company Saregama India, and packaging company Polyplex Corp. Its stake is now below 1% in these companies.

Abakkus sold a 1.5% stake in Mastek during the quarter and now holds 2.8% in the company. Mastek’s share price fell by 18.3% to Rs 1,741.3 on September 30, 2022, from Rs 2,130 on July 1, 2022. The fund also sold a 1% stake in The Anup Engineering and now holds only 4.8%. In Q2FY23, Anup Engineering’s profit fell by 17.9% YoY to Rs 12.9 crore. 

Apart from these stocks, the fund also reduced stakes in Route Mobile (now holds 2.7%) and IIFL Securities (now holds 3.2%)

Ashish Kacholia takes his holdings below 1% in several small-cap companies

Ashish Kacholia sold more than 2.4% in Vishnu Chemicals during Q2FY23 and now holds below 1% in the speciality chemicals manufacturer. He also sold most of his holdings in Kwality Pharmaceuticals, VRL Logistics, Mold-Tek Packaging and Mastek. He now holds below 1% in all these companies.

The marquee investor cut his stake in IT consulting and software company Genesys International Corp by 0.3% (now holds 1.7%), in apparels and accessories manufacturer Safari Industries (India) by 0.2% (now holds 2.6%), and in internet and catalogue retailer Creative Newtech by 0.1% (now holds 2.7%).

Kacholia also sold stakes in Vaibhav Global and NIIT; he now holds 1.2% and 2.2% respectively in the companies.

Dolly Khanna goes on a selling spree in Q2FY23

Dolly Khanna sold stakes in 16 companies in Q2FY23, which mostly included agrochemicals, cement, fertilisers and textile companies. Her biggest sell was Chennai Petroleum Corp, where she reduced her stake by 0.7% to 2.6%. The ace investor also cut 0.5% from her holdings in Pondy Oxides & Chemicals and Rama Phosphates to 3.4% and 1.7% respectively.

Khanna took her holdings below 1% in Suryoday Small Finance Bank, RSWM, New Delhi Television and Goa Carbons in Q2FY23.

She pared her stake in KCP by 0.4% to 3% and reduced her stakes in NCL Industries, Sharda Cropchem, Tinna Rubber and Infrastructure and Aries Agro by 0.2% each to 1.3%, 1%, 1.7% and 1.1% respectively. The ace investor also reduced her holdings in Polyplex Corp and Mangalore Chemicals & Fertilisers by 0.1% and sold minor stakes in Manali Petrochemicals and Nitin Spinners

Vijay Kedia cuts stake in Lykis, a micro-cap company

Vijay Kediasold a 6.6% stake in the micro-cap company Lykis in Q2FY23; he now holds 2.7% in the company. The personal products company’s stock price was Rs 27 on July 1, 2022, which then surged to Rs 55.1 on September 6, 2022. After a sharp rise, the stock price then fell to Rs 41.45 by the end of the September quarter. 

Kedia sold a 0.3% stake in Ramco Systems during Q2FY23, bringing down his holding to 1.6%. The company’s profit has consistently reported losses for six consecutive quarters. He also sold a minor stake in Tejas Networks and now holds 2.6%.

Porinju V Veliyath takes his stake below 1% in Cupid

Porinju V Veliyath reduced his stakes in a total of five companies. His biggest sell was in TCM, an agrochemicals company, where he pared his stake by 2.9% to 1.3%. He also took his stake below 1% in Cupid, a personal products manufacturer. 

The investor reduced his stakes in RPSG Ventures and Kaya by 0.2% each to 1.6% and 1.4% respectively. He also decreased his holding in Orient Bell by 0.1% to 4.8%.

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The Baseline
18 Nov 2022
Five Interesting Stocks Today
  1. United Spirits: This alcoholic beverage company’s share price has risen nearly 10% since it announced its Q2FY23 results. United Spirits comfortably beat Trendlyne’s forecaster estimates in both revenue and net profit. According to Trendlyne’s comparison tool, United Spirits outperformed its peers United Breweries, Radico Khaitan and Globus Spirits in YoY revenue and net profit growth in Q2.  

Despite a recent run-up in the share price, United Spirits is in the PE Buy zone and features in a screener for stocks in the PE Buy Zone with reasonable durability and rising momentum scores. 

Strong volume growth of 13% YoY in its premium and above segment drove revenue growth in Q2. However, volumes from the popular segment remained flat YoY. This is in line with the management’s guidance as it is changing the product mix to high-margin premium & above segment, which contributed nearly 80% of the total revenue in Q2. 

The management aims to derive 90% of its revenue from the premium segment in the near term. As part of this premiumisation drive, the company sold 32 popular brands amounting to Rs 372 crore in Q2FY23. These brands accounted for about 14% of the sales in H1FY23–meaning sales from this segment could see a YoY decline in H2FY23. However, with new premium product launches, margins are expected to improve. In Q2, gross margins fell 560 bps YoY to 39.5% due to double-digit inflation in raw material prices. The management said input cost inflation will continue in Q3FY23 as well due to the rise in glass manufacturing and Extra Neutral Alcohol (ENA) costs. 

  1. Hindalco Industries: This aluminium manufacturer gained nearly 5% since announcing its Q2FY23 results on November 11. This rise in its stock price comes despite a 35.5% YoY drop in its net profit. It also missed Trendlyne’s Forecaster profit estimates by 14.4%. The street’s optimism around the company comes on the back of its aluminium production reaching record highs amid high input costs.

The business outlook for the firm looks healthy as the London Metal Exchange (LME) aluminium prices are expected to rise and demand for aluminium remains strong. This confidence in the company’s prospects is echoed by brokerages as well. Over the past month, it witnessed four broker target price upgrades and one broker recommendation upgrade.

The management expects the firm’s margins to expand in the coming quarters on better coal availability, as its captive coal mines start contributing effectively. This will bring down energy costs in the medium-to-long term. According to ICICI Securities, capacity expansion at Utkal Alumina will lead to a further fall in input costs for the company.

The management says it expects a robust demand environment in India, but a slowdown in the US may be a concern. ICICI Securities sees the Indian market driving growth for the company in the near-to-medium term. The company has allocated a capex of Rs 2,500 crore for the rest of FY23, which it plans to finance with its cash flows and not take on any debt. 

  1. Tata Motors: The commercial vehicles manufacturer fell almost 5% following its Q2FY23 results on November 9. The company reported a loss of Rs 944.6 crore and 29.7% YoY rise in revenue to Rs 79,661.4 crore. It was backed by growth in revenues from Jaguar Land Rover, commercial vehicles and passenger vehicles segments. 

Shailesh Chandra, Managing Director, said the company remains vigilant about the evolving demand and supply situation and will stay active to take swift actions while focusing on further improving profitability. 

The company beat Trednlyne’s Forecaster estimates for revenue by 2.4% while net profit missed the forecaster estimates. Prabhudas Lilladher maintains ‘Buy’ rating on the company with a target price of Rs 520. The brokerage believes that the company’s likely market share gains in the PV segment led by a revamped portfolio, customer preference for SUVs and rising EV penetration along with the revival in Jaguar Land Rover and strong order book will benefit and drive free cash flow generation. 

Bringing in more business, the company’s commercial vehicles segment won an order for 1,000 buses from Haryana Roadways. The 52-seater fully built BS6 diesel buses will be supplied to the state in a phased manner. The stock also features on a screener of top Indian exporters in listed companies.

Meanwhile, Jaguar Land Rover’s Chief Executive Officer Thierry Bolloré resigned from the position due to personal reasons on November 17. 

  1. Trent: This retailing company witnessed robust sales during the recently ended quarter. Although revenue was up 66% YoY to Rs 1,929 crore, its rise in profit was marginal at 0.5% YoY (Rs 93 crore). While its margins declined due to inflationary pressures, Trent’s revenue growth was backed by festive demand and in-store sales. It outperformed the industry. 

Noel Tata, Chairman of Trent, said the company’s fashion concepts have displayed encouraging growth momentum in Q2FY23. He added that Trent continues to expand its reach with vigour, and reinforce lifestyle offerings across concepts, categories and channels.

Brokerages like ICICI Direct, Axis Direct and Motilal Oswal are optimistic and give it a ‘Buy’ call on the back of the retailer’s robust performance and growth prospects. They expect Trent to add over 200 stores across various brands in the next two-three years. They believe that brands like Zudio and Star will drive growth in the coming years. 

While comparing Trent with its peer Aditya Birla Fashion and Retail using Trendlyne’s Stock Comparison tool, it outperformed in 30 out of 42 parameters, including revenue and net profit QoQ growth. 

The stock features in a screener for companies with strong annual EPS growth.

Trendlyne’s Forecaster estimates Trent’s revenue to grow 42.7% and EPS, 76.3% in FY23. 

  1. Aster DM Healthcare: This healthcare facilities provider's share price fell over 18% in three trading sessions after it announced Q2FY23 results. The company's net profit fell 57% YoY and missed Trendlyne's Forecaster estimates by a significant margin. Net profit fell despite a 12.5% rise in revenue, mainly due to a sharp fall in the Gulf Cooperation Council (GCC) clinics and losses incurred by new hospitals in GCC. As a result, this company comes up in a screener of companies that posted a decline in quarterly net profit with a falling profit margin (YoY). 

Aster DM derives nearly 75% of its revenue from the GCC. The company has an established business in the GCC but has been expanding in India through an asset-light model. Revenue from hospitals in India rose 18.7% YoY in Q2, while GCC hospitals' revenue increased 8.2%. In addition, Indian hospitals boast higher operating profit margins or OPM (18.3%) than GCC hospitals (13.9%). 

To grab this opportunity in India, Aster DM has allocated a significant portion of Rs 600 crore capex planned for FY23 to increase bed counts in India. In order to strengthen its presence in South India, the hospital company inked a deal with Tirupathi-based Narayanadri Hospital & Research Institution in October to manage its hospital operations. This is in line with management's guidance of adding over 500 beds in India over FY23.

Another company expanding its footprint in South India is Krishna Institute of Medical Sciences (KIMS). According to Trendlyne’s comparison tool, KIMS beats Aster DM in YoY revenue and net profit growth in Q2. However, Aster DM hopes to leverage its multiple growth levers such as its pharmacy business and diagnostics business in GCC and India to drive top line growth. 

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
18 Nov 2022
Market closes lower, HDFC Securities maintains 'Add' rating on Berger Paints

Trendlyne Analysis

Nifty 50 recovered around 100 points from its day’s low but still closed in the red. European indices traded higher than Thursday’s levels. However, major Asian indices closed in the red, in line with the US indices, which closed lower on Thursday. US stocks fell amid rising treasury yields after the US Fed indicated that it may need to raise the interest rates by more than expected to rein in high inflation. The tech-heavy NASDAQ 100 fell 0.2% while the S&P 500 closed 0.3% lower. Crude oil is set for a second weekly decline after Brent Crude oil futures fell over 5% on Thursday amid a worsening demand outlook.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Pharma and Nifty Auto closed lower than Thursday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100, which closed lower on Thursday.

Nifty 50closed at 18,307.65 (-36.3, -0.2%), BSE Sensexclosed at 61,663.48 (-87.1, -0.1%) while the broader Nifty 500closed at 15,550.85 (-46.4, -0.3%)

Market breadth is in the red. Of the 1,930 stocks traded today, 708 were in the positive territory and 1,168 were negative.

  • Money Flow Index (MFI) indicates that stocks like Housing and Urban Development Corp, Mazagon Dock Shipbuilders, Amara Raja Batteries and Indian Railway Finance Corp are in the overbought zone.

  • CESC, Kalyan Jewellers India, ITI and Manappuram Finance trade below their second support or S2.

  • Coal, Forest Materialsand Retailingsectors fallby more than 5% over the past week.

  • Sudarshan Chemical Industriesand Shilpa Medicarehit their 52-week lows of Rs 379 and Rs 275.5 respectively. Sudarshan Chemical falls for two sessions, while Shilpa Medicare trades lower for four sessions.

  • Bharat Electronicssigns multiple licensing agreements for the transfer of technology with DRDO's labs and centres for manufacturing digital radar warning receiver, multi-kW beam directed optical channel, laser-based end game fuze and unexploded ordnance handling robot. The company also signs a joint development agreement with the Indian Institute of Technology, Madras, for co-operation in the field of quantum science and technology.

  • HDFC Securities maintains 'Add' rating on Berger Paints with a target price of Rs 620. This indicates a potential upside of 2%. The brokerage believes that the company's gross margin will improve in H2FY23 as the cost of raw materials has started to ease up. It expects the company's revenue to grow at a CAGR of 14.3% over FY22-25.

  • Strides Pharma Science's arm Strides Pharma Global receives US FDA approval for potassium chloride oral solution USP. It is used to treat hypokalemia with or without metabolic alkalosis when dietary management with potassium-rich foods or diuretic dose reduction are insufficient.

  • PSU Bank stocks like Bank of Maharashtra, Indian Overseas Bank, UCO Bank and Central Bankof India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • ICICI Direct upgrades its rating on Sobha to ‘Buy’ from ‘Hold’ with a target price of Rs 750, indicating an upside of 18%. The brokerage is positive about the company’s future growth prospects given its rising sales volumes, robust operating cash flows and falling debt. It expects the company’s net profit to grow at a CAGR of 66.5% over FY22-24.

  • Polycab India is falling as 16.13 lakh shares (1.1% equity) amounting to Rs 406.6 crore change hands, according to reports.

  • Aurobindo Pharma is rising as its wholly owned subsidiary, Eugia Pharma Specialties, gets final approval from the US FDA for amphotericin B liposome injection. It is used to treat cryptococcal meningitis in HIV-infected patients, among others. According to IQVIA, the estimated market size of the injection is $145 million for 12 months ending September.

  • RP Goyal, Director (Finance) of NHPC, says that the company plans to increase its capex to Rs 8,000 crore in FY23. He adds that NHPC’s dues are now at Rs 1,200 crore from Rs 2,600 crore earlier.

  • Ahluwalia Contracts bags orders worth Rs 530.1 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) and the Rail Land Development Authority, New Delhi. The MMRDA order pertains to building structural steelworks for the Mumbai Metro Rail for Rs 68.1 crore. The second order is to upgrade Chandigarh Railway Station for Rs 462 crore.

  • Defencestocks like Hindustan Aeronautics, Data Patterns (India), Bharat Electronicsand Bharat Dynamicsare falling in trade. The broader Defenceindustry is also trading in the red.

  • Bajaj Healthcare is rising as it gets zero observations under Form 483 from the US FDA after a pre-approval inspection at the company's active pharmaceutical ingredient (API) facility in Vadodara, Gujarat.

  • CLSA maintains ‘Underperform’ rating on Info Edge with a target price of Rs 4,100. The brokerage says that the management is focused on gaining market share, over increasing the company’s profitability.
  • Bharat Electronics signs a memorandum of understanding (MoU) with Armoured Vehicles Nigam to meet the requirements of defence markets. The companies seek to utilise their complementary strengths and capabilities to address both domestic and export opportunities in the areas of combat vehicles, main battle tanks (MBTs), infantry fighting vehicles (IFVs), armoured fighting vehicles (AFVs) and related systems.

  • Vijay Kedia buys Atul Auto on Thursday through warrants and now holds 18.2% in the company.

  • BofA Securities Europe, Morgan Stanley Asia and Societe Generale buy 0.7%, 0.9% and 1.09% stakes respectively in One97 Communications (Paytm) for a total of Rs 1,005.4 crore in a bulk deal on Thursday.

  • Public holder Mala Gopal Gaonkar further sells a 2% stake (5.7 crore shares) in FSN E-Commerce Ventures (Nykaa) for Rs 1,009 crore in a bulk deal on Thursday. Canada Pension Plan Investment Board picks up a 0.6% stake (1.7 crore shares) worth Rs 299.3 crore in Nykaa in another bulk deal.

  • The Securities and Exchange Board of India allows IHH Healthcare, a Malaysia-based company, to proceed with its open offer for Fortis Healthcare after obtaining relevant permissions from the Delhi High Court. IHH Healthcare plans to buy 26.1% stake each in Fortis Healthcare and Fortis Malar Hospitals.

Riding High:

Largecap and midcap gainers today include PB Fintech Ltd. (402.40, 8.30%), Indian Overseas Bank (21.35, 5.43%) and Union Bank of India (73.90, 5.20%).

Downers:

Largecap and midcap losers today include Bharat Electronics Ltd. (107.35, -2.94%), Adani Total Gas Ltd. (3,644.65, -2.90%) and SRF Ltd. (2,275.25, -2.73%).

Movers and Shakers

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

Top high volume gainers on BSE included IFB Industries Ltd. (1,084.50, 16.05%), Bank of Maharashtra (25.10, 8.66%) and Graphite India Ltd. (390.25, 7.12%).

Top high volume losers on BSE were Chalet Hotels Ltd. (318.85, -10.11%), Mastek Ltd. (1538.60, -5.45%) and Polycab India Ltd. (2,527.50, -1.66%).

SKF India Ltd. (4,993.30, 1.07%) was trading at 7.5 times of weekly average. Central Bank of India (23.55, 3.06%) and Indian Overseas Bank (21.35, 5.43%) were trading with volumes 4.9 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

19 stocks overperformed with 52-week highs, while 10 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,340.00, 0.26%), Bank of India (75.10, 1.08%) and Bank of Maharashtra (25.10, 8.66%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,321.75, -0.46%) and Motilal Oswal Financial Services Ltd. (677.65, -0.88%).

16 stocks climbed above their 200 day SMA including IFB Industries Ltd. (1,084.50, 16.05%) and Indiabulls Real Estate Ltd. (86.80, 6.77%). 18 stocks slipped below their 200 SMA including Chalet Hotels Ltd. (318.85, -10.11%) and Glenmark Pharmaceuticals Ltd. (409.85, -4.53%).