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Trendlyne Marketwatch
Trendlyne Marketwatch
27 Jul 2022
Market closes higher, Maruti Suzuki’s Q1 net profit rises 118.1% YoY

Trendlyne Analysis

Nifty 50 rose over 150 points and closed above the 16,500 mark on a volatile day of trade. The International Monetary Fund or IMF cut India’s FY23 GDP forecast to 7.4% from 8.2%. However, this forecast is still marginally higher than the Reserve Bank of India’s 7.2% GDP growth forecast for FY23. European stocks traded higher than Tuesday’s levels. Most Asian indices closed in the green, following the US indices’ futures. However, US stocks closed lower on Tuesday. The tech-focused index, NASDAQ 100, fell 2% while the S&P 500 closed 1.2% lower. Investors look ahead to the crucial US Federal Reserve meeting scheduled later today. Brent crude oil futures traded marginally higher after losing its gains and closing in the red on Tuesday.

Nifty Midcap 100 closed higher, following the benchmark index while Nifty Smallcap 100 closed flat. Nifty Realty and Nifty Pharma closed higher than Tuesday’s levels. Nifty IT, which lost over 2.8% on Tuesday, closed in the green, taking cues from the NASDAQ futures.

Nifty 50closed at 16,641.80 (158.0, 1.0%), BSE Sensexclosed at 55,816.32 (547.8, 1.0%) while the broader Nifty 500closed at 14,262.55 (121.1, 0.9%)

Market breadth is in the green. Of the 1,893 stocks traded today, 986 were on the uptick, and 856 were down.

  • Pfizer, Bayer Cropscience, Sapphire Foods India, and Ajanta Pharmaare trading with higher volumesas compared to Tuesday.

  • Bandhan Banksees a long build-up in its July 28 future series as its open interest rises 23.8% with a put-call ratio of 0.79.

  • Maruti Suzuki’s Q1FY23 net profit rises 118.1% YoY to Rs 1,036.2 crore on a low base. Revenue rises 50.5% YoY to Rs. 25,288.9 crore despite the chip shortage issue persisting. However, revenue remains flat QoQ as raw material and employee benefits costs rise, leading to a 44.8% QoQ fall in net profit.

  • Gujarat Fluorochemicals is falling even though its Q1FY23 net profit jumps 2X YoY to Rs 303.4 crore as revenue rises 46.3% YoY to Rs 1,334 crore. The company’s margins expand despite an increase in input costs, with power and fuel costs rising 67.2% YoY to Rs 234.4 crore. EBITDA margin rises by 6.4 percentage points YoY to 34.4%.

  • Adani Total Gas and Coromandel International rise to their all-time highs of Rs 2,958 and Rs 1,067.4, respectively. Adani Total Gas is rising for the last four consecutive sessions, while Coromandel International is rising for the last two consecutive sessions.

  • Genesys International and Tech Mahindra rise as Google announces partnership with the companies on enabling the ‘street view’ feature of Google Maps in India. Google was unable to launch this feature because of regulation issues as foreign entities were not allowed to collect geospatial data on their own. With these partnerships the ownership and collection of data will stay with Genesys International and Tech Mahindra while Google will provide the infrastructure for the imaging and mapping of Indian streets.

  • United Spirits falls despite its Q1FY23 net profit rising 419% YoY to Rs 261.1 crore. Revenue rises 15.6% YoY to Rs 7,131.3 crore. An increase in cost of raw materials and a one-time special grant offered to the employees led to its EBITDA margin to shrink 340 bps YoY to 73.3%.

  • Dr. Reddy’s launches ‘Bortezomin’ injection in the US market after the USFDA's approval. The injection is a generic equivalent of the ‘Velcade’ injection and will be used in cancer treatments. The market size for this product is $1.2 billion in the US.

  • Sanofi India is falling as its Q2CY22 net profit declines 32.5% YoY to Rs 120.4 crore as revenue decreases by 11.4% YoY to Rs 699.3 crore. EBITDA margin also falls by 8 percentage points YoY to 23%. The company declares a one-time special interim dividend of Rs 193 per equity share and fixes August 8, 2022, as the record date.

  • Edelweiss maintains its ‘Buy’ rating on Crompton Greaves Consumer Electricals with a target price of Rs 432, indicating an upside of 15%. The brokerage believes the company’s extensive reach in the fans segment, strong research & development capabilities, and cost-saving initiatives will drive profit growth in the coming quarters. It expects the company’s net profit to grow at a CAGR of 15% over FY22-24.

  • Tata Investment Corpis trading with more than 38 times its weekly average trading volume. Tanla Platforms, TeamLease Services, United Spirits, and EPLare trading at more than three times their weekly average trading volumes.

  • Page Industries hits an all-time highof Rs 47,085.9, the stock is rising for four consecutive days. The company aims to expand capacity and increase infrastructure and facilities to meet growing demand.

  • The International Monetary Fund cuts its India growth forecast to 7.4% inFY23 from the earlier 8.2% (in April) due to tighter monetary policies and unfavourable external environment.

  • Pharmaceutical companies like Divi's Laboratories, Sun Pharmaceuticals, Zydus Lifesciences among others, are rising in trade. The broader Nifty Pharma index is also trading in the green.

  • Competition Commission of India sanctions Axis Bank’s acquisition deal of Citibank’s consumer business for Rs 12,235 crore.

  • Metropolis Healthcare is looking to raise $500 million to fund acquisitions and expansion in the healthcare and diagnostics lab space, according to reports. The company’s promoters drop plans of selling their stake and instead may find a strategic partner to fuel their expansion plans. The company plans to raise capital through preferential share allotments or secondary share sales over the coming months.

  • Tanla Platforms is falling and hits 52-week low. The stock is falling for two consecutive sessions as the company's Q1FY23 profit falls 39.2% QoQ to Rs 17.6 crore and revenue falls 10.5% QoQ to Rs 327.3 crore.

  • Tata Power is falling despite its Q1FY23 net profit surging 2X YoY to Rs 794.6 crore driven by its coal operations. Revenue rises 45.4% YoY to 14,495.5 crore as revenue from all business verticals increases. However, with the cost of fuel rising more than 2.5X YoY to Rs 4,215.7 crore the operating margin falls by 11.7 percentage points YoY to 11.6%.

  • Sansera Engineering is falling after its North American OEM client drops the project of manufacturing and supply of rods with the company, signed in April 2022. The production was to begin in July 2025. The approximate value of the deal was over $400 million.

  • Domestic production of urea may fall below 260 lakh metric tonnes in FY23 due to GAIL reducing gas supply. Fertilizer companies request the Centre to allow import of natural gas to sustain domestic production.

  • Larsen & Toubro’s Q1FY23 net profit falls 9.7% YoY to Rs 911.2 crore, however, revenue increases 21.7% to Rs 20,211.7 crore. Revenue from infrastructure projects is up 37.7% YoY to Rs 13,467 crore while revenue from energy projects is flat in Q1FY23 at Rs 4,417.6 crore. The company's operating margin fell 68 bps YoY to 7.65% as construction material costs almost doubled (up 87%) to Rs 7,196.6 crore.

Riding High:

Largecap and midcap gainers today include Star Health and Allied Insurance Company Ltd. (762.30, 8.81%), YES Bank Ltd. (14.70, 7.30%) and Coromandel International Ltd. (1,064.50, 6.21%).

Downers:

Largecap and midcap losers today include Mahindra & Mahindra Financial Services Ltd. (198.80, -3.68%), Tata Power Company Ltd. (218.00, -3.60%) and PB Fintech Ltd. (458.05, -2.92%).

Volume Shockers

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

Top high volume gainers on BSE included Star Health and Allied Insurance Company Ltd. (762.30, 8.81%), Coromandel International Ltd. (1,064.50, 6.21%) and Laurus Labs Ltd. (513.80, 6.14%).

Top high volume losers on BSE were Tanla Platforms Ltd. (585.20, -19.90%), EPL Ltd. (171.00, -7.49%) and Route Mobile Ltd. (1,213.70, -6.93%).

Tata Investment Corporation Ltd. (1,456.10, 2.94%) was trading at 47.4 times of weekly average. Mishra Dhatu Nigam Ltd. (172.65, 1.68%) and ZF Commercial Vehicle Control Systems India Ltd. (8,399.30, 0.17%) were trading with volumes 7.7 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks overperformed with 52-week highs, while 5 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Coromandel International Ltd. (1,064.50, 6.21%), GHCL Ltd. (677.30, 2.15%) and Inox Leisure Ltd. (565.60, 2.71%).

Stocks making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,451.40, -0.69%) and Zensar Technologies Ltd. (246.65, -1.20%).

16 stocks climbed above their 200 day SMA including Mazagon Dock Shipbuilders Ltd. (278.80, 3.57%) and Tata Investment Corporation Ltd. (1,456.10, 2.94%). 17 stocks slipped below their 200 SMA including EPL Ltd. (171.00, -7.49%) and Tata Power Company Ltd. (218.00, -3.60%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
26 Jul 2022
Market closes lower, Asian Paints' Q1 net profit surges 78.9% YoY to Rs 1,016.9 crore

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising above 18%. Nifty 50 fell close to 150 points and closed below the 16,500 mark. Most European stocks traded lower than Monday’s levels amid mixed global cues. However, FTSE 100 traded higher on the back of positive earnings updates. Major Asian indices closed mixed, tracking the US indices, which also closed mixed on Monday. US stocks closed mixed as investors look ahead to the crucial US Federal Reserve meeting this week. The tech-heavy index, NASDAQ 100 closed 0.6% lower, while the Dow Jones rose 0.3%. Brent crude oil futures rose as Russia’s reduction in gas supply to Europe could encourage a switch to crude oil.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Realty closed lower than Monday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which closed lower on Monday.

Nifty 50closed at 16,483.85 (-147.2, -0.9%), BSE Sensexclosed at 55,268.49 (-497.7, -0.9%) while the broader Nifty 500closed at 14,141.45 (-138.1, -1.0%)

Market breadth is moving down. Of the 1,890 stocks traded today, 487 showed gains, and 1,352 showed losses.

  • Solara Active Pharma Sciences, Rossari Biotech, Nuvoco Vistas Corp, Motilal Oswal Financial Services, and Chemplast Sanmar are trading with higher volumes as compared to Monday.

  • Bajaj Finserv sees a long build-up in its July 28 future series as its open interest rises 15.2% with a put-call ratio of 0.71.

  • Stocks like Aegis Logistics, Timken India, Shriram Transport Finance Co, Kajaria Ceramics and Can Fin Homes are in the overbought zone, according to the technical indicator relative strength index or RSI and money flow index or MFI.

  • Bajaj Auto’s Q1FY23 net profit rises marginally by 0.6% YoY to Rs 1,163.3 crore. Its revenue increases 8.4% YoY to Rs 8,004.9 crore because of a favourable product mix. EBITDA margin rises 100 bps to 16.6% as three-wheeler wholesales rise.

  • Asian Paints is rising as its Q1FY23 net profit surges 78.9% YoY to Rs 1,016.9 crore and revenue increases 54.1% YoY to Rs 8,606.9 crore. Revenue grows on the back of robust sales volume growth and rising consumer demand. EBITDA margin rises 172 bps YoY to 18.1% despite the cost of materials consumed rising 34.6% YoY to Rs 4,610.3 crore.

  • India's crude oil imports rise 20.8% YoY to 19.2 million tonnes in June 2022. This is the highest quantity of import of crude oil since July 2021. However, LPG imports fall 5.9% YoY in June 2022.

  • IDBI Capital maintains its ‘Buy’ rating on Finolex Industries with a target price of Rs 195, indicating an upside of 39%. Even though the company’s net profit declined 31.8% in Q1FY23, the brokerage expects the company to perform well in the coming quarters. It remains positive on the company’s prospects given its backward integration operations, healthy balance sheet and strong positioning in the domestic agricultural-pipes market. The brokerage estimates the company’s revenue to grow at a CAGR of 6.1% over FY22-24.

  • Jindal Stainless’ Q1FY23 net profit rises 7.7% YoY to Rs 329.4 crore despite EDITDA margin falling 360 bps YoY to 21.2%. This is because finance costs fell 17.3% YoY to Rs 72.1 crore. Revenue increases by 35.7% YoY to Rs 5,474.1 crore.

  • JP Morgan initiates coverage on Sona BLW Precision Forgings with an ‘underweight’ rating and a target price of Rs 485. The brokerage expects its revenue mix to drive revenue growth of 32% CAGR over FY22-25. However, the downside risk is the low margins in the near term. It also expects revenue for FY23-24 to be 7%-9% below consensus estimates.

  • Vinati Organics is trading with more than 13 times its weekly average trading volume. Tanla Platforms, EIH, Delta Corp, and Sapphire Foods Indiaare trading at more than four times their weekly average trading volumes.

  • Lupin gets USFDA approval for its generic drug for treatment of high blood pressure. The company estimates an annual sale of $101 million in the US market for this tablet. The medicine will be manufactured in Lupin’s Nagpur plant.

  • Indian Energy Exchange is falling despite its Q1FY23 net profit rising 10% YoY to Rs 69.1 crore and revenue growing 8% YoY to Rs 98.3 crore. Electricity volumes on the exchange rise 10% YoY to 23.4 billion units driven by an increase in electricity consumption. EBITDA margin rises 20 bps YoY to 82.4%.

  • PSP Projects receives new work orders worth Rs 257.27 crore. The orders include development of Ahmedabad airport in the institutional segment worth Rs 128.01 crore, pharmaceutical project in the industrial segment worth Rs 98.99 crore, and remaining orders worth Rs 30.26 crore are from the precast segment.

  • GlaxoSmithKline Pharmaceuticals’ Q1FY23 net profit rises 8.3% YoY to Rs 116.2 crore as revenue rises 3.7% YoY to Rs 745.1 crore. Cost of raw materials falls 3.1% to Rs 286.9 crore. EBITDA margin rises 203 bps YoY to 56.4%.

  • Agriculture commodity prices fall with wheat and cotton leading the pack. In the last three months, cotton is down 31%, while wheat is down 28%. Corn prices are down 20% month-to-date in July.

  • IT stocks like MphasiS, L&T Technology Services, MindTree, and Infosys, among others, are falling in trade. The broader sectoral index Nifty IT is also trading in red.

  • Tata Steel is falling as its Q1FY23 net profit declines 12.8% YoY to Rs 7,765 crore as the cost of materials consumed increases 64.1% YoY to Rs 26,319.9 crore. Input costs increase due to elevated coking coal prices. However, revenue rises 18.8% YoY to Rs 63,430.1 crore driven by high steel realisations in India and Europe. Revenue from Tata Steel India grows 15.6% YoY to Rs 32,021.1 crore and Tata Steel Europe increases 33.5% YoY to Rs 25,960.9 crore.

  • Jefferies maintains its ‘Buy’ rating on Zomato with a target price of Rs 100, indicating an upside of more than 50%. It believes the company is moving toward better unit economics and that it will break even in the foreseeable future

  • Bajaj Finserv is rising as its board of directors will consider sub-division of shares and/or a bonus issue of shares in its meeting on Thursday. The board will also consider the company’s Q1FY23 results for approval in the same meeting.

  • Tech Mahindra is falling as its Q1FY23 net profit falls nearly 25% QoQ to Rs 1,131.6 crore despite revenue rising 4.9% QoQ to Rs 12,707.9 crore. The profit was hurt by a 8.3% QoQ rise in its employee costs to Rs 6,550 crore. EBIT margin came in at 11%, down 360 bps QoQ. New deal wins in Q1FY23 were $802 million, down 20.7% QoQ.

  • Axis Bank’s Q1FY23 net profit jumps 91% YoY to Rs 4,125.3 crore as provisions fall 75% YoY to Rs 777 crore. Net interest income rises 21% YoY to Rs 9,384 crore with net interest margin improving 14 bps YoY to 3.6%. Revenue from retail banking rises 17% YoY to Rs 19,631.6 crore while revenue from corporate and wholesale banking increases 23% to Rs 7,336.7 crore. Asset quality improves as gross NPAs fall 109 bps YoY to 2.7% in Q1FY23.

Riding High:

Largecap and midcap gainers today include Bajaj Finserv Ltd. (13,313.00, 5.50%), Sun TV Network Ltd. (465.80, 5.22%) and JSW Steel Ltd. (597.75, 2.09%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (41.65, -12.50%), One97 Communications Ltd. (698.90, -7.80%) and Persistent Systems Ltd. (3,333.95, -7.56%).

Movers and Shakers

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

Top high volume gainers on BSE included EIH Ltd. (155.00, 7.56%), Bajaj Finserv Ltd. (13,313.00, 5.50%) and Sun TV Network Ltd. (465.80, 5.22%).

Top high volume losers on BSE were Tanla Platforms Ltd. (730.60, -20.00%), Zomato Ltd. (41.65, -12.50%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,465.25, -2.04%).

Vinati Organics Ltd. (2,184.45, 3.07%) was trading at 15.7 times of weekly average. Delta Corp Ltd. (193.05, 4.58%) and Sapphire Foods India Ltd. (1,133.90, 2.73%) were trading with volumes 8.2 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks overperformed with 52-week highs, while 5 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - ITC Ltd. (302.45, 0.45%), Timken India Ltd. (2,896.15, 0.18%) and Vinati Organics Ltd. (2,184.45, 3.07%).

Stocks making new 52 weeks lows included - Sterlite Technologies Ltd. (133.20, -6.76%) and Tanla Platforms Ltd. (730.60, -20.00%).

9 stocks climbed above their 200 day SMA including EPL Ltd. (184.85, 2.67%) and Navin Fluorine International Ltd. (4,242.35, 0.81%). 23 stocks slipped below their 200 SMA including Angel One Ltd. (1,349.35, -4.58%) and Narayana Hrudayalaya Ltd. (628.60, -3.74%).

 
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The Baseline
25 Jul 2022
Five analyst stock picks with over 10% revenue and profit growth in Q1FY23
  1. Hindustan Unilever: Axis Securities maintains its ‘Buy’ rating on this FMCG company with a target price of 2,810. This indicates an upside of 7.1%. In Q1FY23, the company’s net profit increased 13.5% YoY to Rs 2,381 crore and revenue rose 19.9% YoY to Rs 14,624 crore.

Analysts Preeyam Tolia and Dhananjay Choudhury say “Hindustan Unilever delivered a resilient performance ahead of our and street expectations on key performance metrics”. Sales growth was driven by price hikes, market share gains and strong double-digit growth in home care and beauty & personal care segments, according to Tolia and Choudhury. 

However, its EBITDA margin fell 110 bps YoY to 23.2% on the back of high raw material cost inflation, they point out.

Tolia and Choudhury anticipate margins to remain under pressure until Q3 this year on high raw material costs and the weakening rupee. They believe the company’s mid- and long-term prospects are bright given its diverse product portfolio, market share gains, cost-saving initiatives, and strong execution capabilities. The analysts expect the company’s net profit to grow at a CAGR of 15.6% over FY22-24.

  1. Oberoi Realty: Motilal Oswal maintains its ‘Buy’ rating on this realty company with a target price of Rs 1,100. This indicates an upside of 25%. In Q1FY23, this company’s net profit grew nearly 5X YoY to Rs 403.08 crore and revenue jumped 3.2X YoY to Rs 913.1 crore.

Analysts Pritesh Sheth and Sourabh Gilda expect Oberoi Realty’s pre-sales to “increase by 22% YoY to Rs 4,800 crore in FY23”. The strong launch pipeline will drive growth in FY23, say Sheth and Gilda. In Q1, the realty developer got steady bookings amounting to Rs 760 crore, which fell 18% QoQ but rose nearly 4.5X times YoY.

The company’s retail and hospitality segments’ occupancy rates in Q1 have reached their highest levels since covid-19, say Sheth and Gilda. The occupancy rates of its retail mall and hospitality assets stood at 96% and 91%, respectively. “Renewed focus on business development is a positive sign and will continue to provide further growth visibility for Oberoi Realty,” say the analysts. They expect the company’s profit to grow at a CAGR of 32.7% over FY22-24.

  1. HDFC Bank: LKP Securities maintains a ‘Buy’ call on this bank with a target price of Rs 1,709, indicating an upside of 22.4%. In Q1FY23, the bank reported a profit growth of 21.9% YoY to Rs 9,654.2 crore and 13.53% YoY revenue growth to Rs 44,202.3 crore. “HDFC Bank reported moderate operating performance in Q1FY23,” says analyst Ajit Kumar Kabi. 

Kabi says the bank’s “superior underwriting practices, higher liquidity, adequate coverage, and strong capital position makes it well placed.” The analyst further adds that the bank maintained its growth as the net advances during Q1 increased 21.6% YoY to Rs 14 lakh crore and deposits grew 19% YoY to Rs 16 lakh crore. 

The bank’s net interest income stood at Rs 19,480 crore (up 14.5% YoY) and its net interest margin stood at 4.2%, up 10 basis points YoY. The analyst expects the bank to outperform the sector in the long run on the back of a healthy balance sheet growth, higher provision than the regulatory requirement in the balance sheet, and best-in-class underwriting and risk management practices.

  1. Jindal Steel & Power: BOB Capital maintains its ‘Buy’ rating on this steel company’s stock but reduces the target price to Rs 460 from Rs 555. This indicates an upside of 24.3%. In Q1FY23, the company’s revenue increased by 22.8% to Rs 13,069.2 crore and net profit increased by 4,727.9% to Rs 1,992.9 crore. 

An exceptional loss of Rs 1,240.12 crore in Q1FY22 and a reversal of deferred tax of Rs 1,276.22 crore in Q1FY23 have led to the elevated profit number during the quarter.

Analyst Kirtan Mehta says that the “Q1 results were ahead of consensus (estimates).” But despite a healthy EBITDA of Rs 3,000 crore and inflow of Rs 3,000 crore as consideration for the stake sale (in the company), the net debt reduction was muted at Rs 1,100 crore QoQ in Q1.

The analyst thinks the rise in coking coal prices will likely extend margin pressure on the company during Q2 this year. He adds that the company plans to continue with its Rs 18,000 crore capex plan to enhance margins and expand pellet, hot strip mill, and crude steel capacity even in the current environment. He is cautiously positive on the stock despite uncertainties, due to the company’s healthy growth.

  1. Angel One: ICICI Securities maintains a ‘Buy’ call on this stock broking company but revises its target price downwards to Rs 1,830 from Rs 2,230. This indicates an upside of 29.4%. In Q1FY23, the company reported a 49.6% YoY increase in net profit to Rs 181.5 with revenues rising 44.7% to Rs 686.5 crore. 

Analysts Ansuman Deb and Ravin Kurwa feel that despite the positive results, “Angel One reported a decline in the number of orders and margin trading facility book, in line with weak market sentiment in Q1 and especially June 2022”. The analysts expect the Indian stock market to decline further, causing a decline in key operating parameters for the company’s business. 

“We expect orders per day to remain resilient although it may dip in the near term, in line with market sentiment,” say Deb and Kurwa. They expect employee costs and other expenses to remain elevated due to new hiring and investments towards marketing costs in order to increase market share. Accordingly, the analysts forecast the profit to be at Rs 700 crore and Rs 780 crore in FY23 and FY24, respectively.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
25 Jul 2022
Market closes lower, Canara Bank’s Q1 profit rises 71.7% YoY to Rs 2,022 crore'

Trendlyne Analysis

Nifty 50 closed in the red with the volatility index, India VIX, rising above 17.5%. Indian market fell after rising for six consecutive sessions as Reliance Industries and Infosys' weak earnings weighed on the benchmark indices. European stocks traded lower than Friday’s levels. Major Asian indices closed in the red, tracking the US indices, which closed lower on Friday. The tech-heavy index, NASDAQ 100 closed 1.8% lower, led by social media company, Snap, which fell over 39% post its earnings release on Friday. Investors look ahead to the US Federal Reserve meeting and US Q2 gross domestic product or GDP data release later this week. Brent crude oil futures recovered from its day’s low and traded higher than Friday’s levels.

Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Media closed lower than Friday’s levels. Nifty IT closed higher, despite the NASDAQ 100 closing in the red on Friday.

Nifty 50closed at 16,631.00 (-88.5, -0.5%), BSE Sensexclosed at 55,766.22 (-306.0, -0.6%) while the broader Nifty 500closed at 14,279.50 (-57.1, -0.4%).

Market breadth is in the red. Of the 1,922 stocks traded today, 735 were in the positive territory and 1,137 were negative.

  • Macrotech Developers, Procter & Gamble Hygiene & Healthcare, Gujarat Pipavav Port, and Bayer Cropscienceare trading with higher volumesas compared to Friday.

  • Navin Fluorine International sees a long build-up in its July 28 future series as its open interest rises 35.1% with a put-call ratio of 0.85.

  • Stocks like Yes Bank, CG Power and Industrial Solutions, City Union Bank, and Aegis Logisticsare in the overbought zone, according to the technical indicator relative strength index or RSI.

  • Sharda Cropchem is falling as its Q1FY23 net profit declines 40.5% YoY to Rs 22.6 crore as the raw material costs more than doubled to Rs 300.1 crore. EBITDA margin declines by 330 bps to 11.7%. While revenue grows 32.4% YoY to Rs 824.5 crore given better price realisation and product mix. Revenue from the agrochemicals segment rises 15.1% YoY to Rs 534.3 crore and the non-agrochemicals segment surges nearly 2.4X YoY to Rs 209.7 crore.

  • Internet software and service companies Zomato and PB Fintech touch an all-time low of Rs 46 and Rs 499.5, respectively.

  • Canara Bank’s Q1FY23 net profit rises 71.7% YoY to Rs 2,022 crore with net interest income increasing 10% to Rs 6,785 crore. Provisions fall 6.5% YoY to Rs 4,584 crore. The bank’s asset quality improves significantly with gross NPAs falling 152 bps YoY to 6.98% and net NPAs are down 98 bps to 2.48%.

  • Auto stocks like Mahindra & Mahindra, Maruti Suzuki India, Eicher Motors, Bosch, and Tata Motorsare falling in trade. The broader sectoral index Nifty Auto is also trading in the red.

  • Jyothy Labs is rising as its Q1FY23 net profit increases 18.2% YoY to Rs 48.4 crore and revenue grows 13.7% YoY to Rs 597.2 crore. The fabric care segment's revenues rise 38.6% to Rs 251 crore while the dishwashing segment's rose 9.6% YoY to Rs 209 crore. EBITDA margins are down 200 bps YoY to 10% as the cost of materials rose nearly 30% YoY to Rs 343.6 crore

  • Larsen & Toubro to sell eight operational road assets and a power transmission project to Edelweiss Infrastructure Yield Plus, a fund managed by Edelweiss Alternative Asset Advisors, for Rs 7,000 crore, according to reports. The deal awaits approval from National Highway Authority of India and Securities and Exchange Board of India.

  • Specialty chemical stocks like SRF, Gujarat Flurochemicals, Aarti Industries,Vinati Organics, Alkyl Amines Chemicals, Balaji Amines, among others, rise a falling rupee benefits these export-oriented companies.

  • Navin Fluorine International is trading with more than nine times its weekly average trading volume. Mahindra CIE Automotive, Zomato, Praj Industries, and Anupam Rasayan India are trading at more than two times their weekly average trading volumes.

  • PB Fintech is falling and touches a 52-week low of Rs 499.5 as it reports an IT breach the company faced on July 19. The company is identifying the reasons for the breach and is auditing the discrepancies with the information security team. The company, however, says there was no customer data leakage because of this incident.

  • ICICI Securities downgrades its rating on Coforge to ‘Add’ from ‘Buy’ and reduces its target price to Rs 4,018 from Rs 4,160. This indicates an upside of 7.6%. The brokerage downgrades its rating as the company’s Q1FY23 revenue misses its estimates. However, the brokerage remains positive on the company’s prospects given that it has the lowest attrition rate in the industry. It also sees the company’s large deal wins and its ability to leverage cross-sell synergies through acquisitions as key positives. The brokerage estimates the company’s net profit to grow at a CAGR of 21.1% over FY22-24.

  • Vodafone Idea appoints Akshaya Moondra as Chief Executive Officer for a period of three years effective from with effect from August 19. The new appointment comes in as Ravinder Takkar ceases to be the Managing Director and Chief Executive Officer as he completes his term of three years on August 18.

  • Group of Ministers of GST Council remain indecisive on increasing the GST rate to 28% for online gaming and casinos. The group will hold another meeting before submitting their final report to the Council on August 10.

  • Navin Fluorine International is rising as its Q1FY23 net profit rises 33.1% YoY to Rs 74.4 crore and revenue rises 21.7% YoY to Rs 397.5 crore. Revenue rises on the back of the speciality chemicals segment rising 32% YoY to 176 crore and the high-performance products segment rising 33% to Rs 152 crore. EBITDA margin rises 110 bps YoY to Rs 24.9%

  • Tata Motors receives an order for suppling, operating and maintaining 1,500 electric buses for 12 years from Delhi Transport Corporation (DTC) as part of a tender by Convergence Energy Services, according to reports.

  • Kotak Mahindra is falling despite its net profit surging 26.1% YoY to Rs 2,071.1 crore. Profit rises on the back of the net interest income rising 19.1% YoY to Rs 4,697 crore and provisions reducing 12.3% YoY to Rs 6,532 crore. Net interest margin rises 32 bps YoY to 4.9%. The bank’s asset quality improves as the net non-performing assets fall 66 bps YoY to 0.6%.

  • ICICI Bank is rising as its Q1FY23 net profit rises 49.6% YoY to Rs 6,904.9 crore as provisions fall 60% YoY to Rs 1,144 crore. Net interest income increases 21% YoY to Rs 13,210 crore with net interest margin rising 12 bps to 4.01%. Retail banking segment revenue grew 18.7% YoY to Rs 23,388 crore while wholesale banking segment’s revenue rises 14.8% to Rs 10,869 crore. The bank’s asset quality improves as gross NPAs fall 174 bps YoY to 3.4% and net NPAs are down by 46 bps to 0.7% in Q1FY23.

  • Infosys is falling as its net profit declines 5.7% QoQ to Rs 5,360 crore while revenue rises 6.8% QoQ to Rs 34,470 crore. Profit falls due to employee benefit expenses rising 10.1% QoQ to Rs 18,337 crore and sub-contractors’ costs surging 8.9% QoQ to Rs 3,909 crore. Operating margin declines by 150 bps QoQ to 20%. Attrition rate rises by 70 bps QoQ to 28.4%. The management raises its FY23 revenue growth guidance to 14-16% from 13-15%.

  • Reliance Industries’ Q1FY23 net profit is up 46.3% YoY to Rs 17,955 crore with revenue increasing 53% to Rs 2.4 lakh crore. Oil to chemicals segment contributes most to revenue growth, rising 56.7% YoY to Rs 1.6 lakh crore. Retail segment revenue is up 51.9% YoY to Rs 58,569 crore as consumer spending increases while digital services revenue rises 21.8% to Rs 28,511 crore. Inflationary pressures cause an increase in expenses by 50.9% YoY to Rs 1.9 lakh crore as raw material costs surge 75.5% to Rs 1.3 lakh crore.

Riding High:

Largecap and midcap gainers today include SRF Ltd. (2,383.45, 4.06%), GAIL (India) Ltd. (147.00, 3.81%) and Balkrishna Industries Ltd. (2,349.10, 3.42%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (47.60, -11.28%), Oil India Ltd. (186.50, -4.63%) and Bandhan Bank Ltd. (273.80, -4.27%).

Movers and Shakers

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

Top high volume gainers on BSE included Navin Fluorine International Ltd. (4,208.20, 11.10%), Praj Industries Ltd. (398.95, 4.06%) and Mahindra CIE Automotive Ltd. (258.30, 3.82%).

Top high volume losers on BSE were Zomato Ltd. (47.60, -11.28%), Finolex Industries Ltd. (131.90, -5.82%) and Poly Medicure Ltd. (736.55, -5.55%).

Akzo Nobel India Ltd. (1,943.95, 1.00%) was trading at 6.4 times of weekly average. Lakshmi Machine Works Ltd. (10,233.55, 2.09%) and Suven Pharmaceuticals Ltd. (475.75, 2.05%) were trading with volumes 6.1 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks hit their 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Bharat Electronics Ltd. (270.05, 1.22%), Blue Dart Express Ltd. (8,374.45, 0.03%) and EID Parry (India) Ltd. (563.55, 1.15%).

Stocks making new 52 weeks lows included - Zomato Ltd. (47.60, -11.28%) and PB Fintech Ltd. (499.70, -3.92%).

15 stocks climbed above their 200 day SMA including Navin Fluorine International Ltd. (4,208.20, 11.10%) and SRF Ltd. (2,383.45, 4.06%). 16 stocks slipped below their 200 SMA including EPL Ltd. (180.05, -2.75%) and Nesco Ltd. (569.85, -2.56%).

 
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The Baseline
22 Jul 2022
Five Interesting Stocks Today

  1. Federal Bank: This private bank’s stock rose 21.8% over the past month till Thursday. It also outperformed the banking industry over the past 90 days by 11.3%. The latest upmove in the stock started after the bank released its business update on July 3. The company’s gross advances grew 16.3% YoY to Rs 1.5 lakh core and total deposits by 8.2% YoY to Rs 1.8 lakh crore in Q1FY23. This was a precursor to its good Q1FY23 results as after announcing its results on July 15, the scrip rose 8.5% on the bourses. The bank’s net profit rose 63.5% YoY to Rs 600.7 crore and revenue rose 8.1% YoY to Rs 3,628.9 crore. It beat Trendlyne’s Forecaster profit estimates by 19.6%. The bank shows up on this screener of companies with rising profits for four consecutive quarters.

The bank’s management expects 18% credit growth in FY23 and healthy business traction and diversification to aid profitability. The expansion into high-yield segments such as commercial vehicle loans, construction equipment loans, personal loans, and credit cards is expected to contribute to profit growth. The bank also expects its asset quality to remain stable, with the NIM improving by 5-7 bps from 3.22% to 3.25%-3.27% by the end of FY23. 

  1. Tube Investments of India: This auto parts & equipment maker’s stock rose 12.3% on Tuesday after it announced that its arm TI Clean Mobility (TICMPL) acquired a 65.2% stake in IPLTech Electric in an all-cash deal worth Rs 246 crore. IPLTech Electric makes and sells electric heavy commercial vehicles. The company expects this acquisition to expand its footprint in the electric vehicle space. TICMPL has existing interests in the manufacturing of electric three-wheelers and electric tractors through its subsidiary Cellestial E-Mobility. The management plans to launch its first electric three-wheeler and tractor in FY23.

Over the past week, the stock rose over 10.1% till Thursday and outperformed the Nifty 50 index in the same time period. 

In FY22, Tube Investments’ revenue grew 105.9% YoY to Rs 12,525.3 crore and net profit grew 168.5% YoY to Rs 768.8 crore driven by the engineering and industrial systems segment. All the business verticals of the company grew, thanks to total exports growing 98% YoY, according to Motilal Oswal. To push exports the company is developing strategic partnerships with original equipment manufacturers and distributor channels. The US and EU nations are its major export markets. The company expects growth in the domestic market in the coming years and expects production-linked schemes (PLI) for auto parts to boost the industry. However, Trendlyne’s Forecaster shows the company’s revenue falling 25.2% YoY to Rs 1,823.6 crore in Q1FY23.

  1. Havells India: This consumer durables company’s Q1FY23 result was a mixed bag. Its Q1FY23 revenue rose 62.6% YoY to Rs 4,244.5 crore, beating Trendlyne’s Forecaster estimates by 5.9%. But high raw material costs hurt net profit, which rose only 3.1% YoY, missing Forecaster estimates by 26%. The stock gained over 12.6% in the past two weeks ahead of its results. With the sharp rise in its share price, Havells features in the screener that lists stocks that are overbought by the money flow index or MFI.

In the post-earnings call, Havells India’s Chairman and Managing Director Anil Rai Gupta said that volatile commodity prices impacted the margins in Q1FY23. He added that the recent moderation in prices could reflect in the next two quarters. High raw material costs put pressure on the operating profit margin, which fell 5.1 percentage points YoY to 8.5% in Q1FY23.

In addition to the raw material costs, advertisement and sales promotion costs jumped 2.5X YoY to Rs 113.4 crore in Q1FY23, which impacted profits from the company’s subsidiary Lloyd. Havells had acquired Lloyds in 2017 to foray into the air conditioning segment. Lloyd, which constitutes over 25% of total revenue, posted strong revenue growth of 119% YoY to Rs 1,084 crore in Q1FY23. However, it posted a loss of Rs 56 crore before tax on the back of high advertising and sales promotion expenses due to intense competition in the air conditioning space. 

  1. Bharat Electronics: This defence equipment makers’ stock touched an all-time high of Rs 242.2 in the first week of April as the Centre moved to indigenise production of certain items like weapons, equipment, etc. This could benefit defense public sector companies like Bharat Electronics. Its stock is trading up 6% in the last 90 days and also outperformed its industry by 1.2% in the past 90 days. 

The company’s stock touched an all-time high on Monday of Rs 260.8 when it announced its Q1FY23 results. Its net profit zoomed 15X YoY on a low base to Rs 365.5 crore. It also sees a 90.5% rise in revenues to Rs 3,140 crore, much more than the ICICI Securities’ estimates. Revenue numbers beat Trendlyne’s Forecaster estimates by 43.7%. 

Since Monday the stock has been rising. It also shows up in this screener where the companies which announced their results with rising operating profit margin and net profit growth. ICICI Securities maintains a ‘Buy’ stance on its robust order book and its foray into non-defence segments and increasing exports. The company’s order book stands at Rs 55,333 crore as on July 1. Orders came in not only from the defence segments (arms and ammunition) but also from other non-defence sectors like medical electronic devices and manufacturing electronic products for civil aviation, railways and metros. 

  1. Wipro: This IT services company’s stock hit a 52-week low of Rs 391 on July 15 after Q1FY23 results of its peers like HCL Technologies and Tata Consultancy Services showed that the industry might be facing cost pressures and revenue growth related headwinds. Investors were relieved when Wipro’s stock traded higher for the last three consecutive sessions, but it fell on Thursday after its Q1FY23 results showed a 17% fall in its net profit to Rs 2,563.6 crore This led to Wipro entering this screener of companies which reported a QoQ and YoY decline in net profit. It has also underperformed its industry by 12.5% over the past 90 days.

The company’s management is confident that its clients aren’t planning cuts in technology spends, and does not anticipate any demand slowdown. However, since Wipro’s major business comes from consulting, and given a weak macro environment, this segment is likely to see headwinds. According to a report from ICICI Securities, its capital allocation into the consulting business is already seeing problems because of high investments made. This could impact overall earnings in FY23.

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
22 Jul 2022
Market closes higher, UltraTech Cement's net profit falls 7% YoY to Rs 1,584.1 crore

Trendlyne Analysis

Nifty 50 closed higher with the volatility index, India VIX, below 17%. Indian indices closed higher for a sixth straight session. Reserve Bank of India’s Governor Shaktikanta Das said that the central bank "will continue to engage with the foreign exchange market to ensure the rupee finds its level." Meanwhile, Asian Development Bank or ADB slashed India’s GDP growth forecast to 7.2% from 7.5% for FY23. European markets traded flat to higher as investors assessed the European Central Bank’s larger-than-expected 50 bps interest rate hike.

Most Asian indices closed in the green, tracking the US indices which closed higher on Thursday. The tech-heavy index, NASDAQ 100 rose 1.4% while the Dow Jones closed 0.5% higher. The euro is set for its best week against the US dollar since May after the European Central Bank raised interest rates by 50 basis points to 0%. Brent crude oil futures rose after falling about 2.5% on Thursday due to weakened crude oil demand in the US.

Nifty Midcap 100 closed flat, despite the benchmark index closing in the green. Nifty Bank and Nifty Auto closed higher than Thursday’s levels. Nifty IT, which opened in the green, closed 0.6% lower.

Nifty 50closed at 16,714.30 (109.1, 0.7%), BSE Sensexclosed at 56,072.23 (390.3, 0.7%) while the broader Nifty 500closed at 14,327.05 (55.3, 0.4%)

Market breadth is holding steady. Of the 1,897 stocks traded today, 937 showed gains, and 899 showed losses.

  • Ajanta Pharma, Kansai Nerolac Paints, Supreme Industries, and CESC are trading with higher volumes as compared to Thursday.

  • Atul sees a long build-up in its July 28 future series as its open interest rises 9.2% with a put-call ratio of 0.51.

  • UltraTech Cement is rising despite its net profit falling 7% YoY to Rs 1,584.1 crore while revenue jumps 28.2% YoY to Rs 15,164 crore. Revenue grows on the back of price hikes and rising sales volumes. Profit falls due to power and fuel costs rising 65.3% YoY to Rs 4,013.1 crore and freight expenses increasing 24.2% YoY to Rs 3,290.6 crore.

  • TVS Motor hits an all-time high of Rs 898.7 during trade today. The stock is rising for two consecutive days after the company's management announced that it is lining up fresh investments for Rs 1,000 crore in its electric vehicle business to double its capacity to 25,000 units per month by the end of 2022, and 50,000 units in 2023.

  • India plans to import 76 million tonnes of coal in FY23 to meet the shortage of coal as Coal India's production will slow down in August and September due to the monsoons. This move may cause an increase in electricity tariff rates because of expensive coal imports.

  • Crompton Greaves Consumer Electricals’ Q1FY23 net profit rises 32.9% YoY to Rs 125.9 crore. However, net profit falls 22.7% QoQ due to a 17.7% QoQ rise in raw material cost to Rs 1,278 crore and employee expense rising 71.7% to Rs 143.4 crore. Revenue increases 77.3% YoY to Rs 1,862.9 crore with revenue from electric consumer durables rising 52.3% YoY to Rs 1,347.2 crore. Butterfly products also add to revenue growth, contributing Rs 253 crore.

  • HDFC AMC is falling after its Chief Investment Officer Prashan Jain resigns from his post after 19 years

  • HDFC Securities maintains its ‘Add’ rating on Wipro and cuts the target price to Rs 475 from Rs 490, indicating an upside of 15.3%. It cut its target price as the company’s Q1FY23 net profit falls 17% QoQ. However, the brokerage remains positive on the company’s prospects due to it booking 18 large deals in Q1FY23 with a total contract value of $1.1 billion. It also sees the company’s stronger growth in headcount and lower attrition rates relative to its peers as a key positive. The brokerage estimates the company’s revenue to grow at a CAGR of 12.9% over FY22-24.

  • Asian Development Bank cuts India’s growth forecast to 7.2% for FY23 from 7.5% on higher inflation and monetary tightening.

  • RBL Bank reports a net profit of Rs 201.2 crore in Q1FY23 against a loss of Rs 459.5 crore in Q1FY22 as provisions fall 81.7% YoY to Rs 253 crore. Interest earned rises 3.1% YoY to Rs 2,089.3 crore, however, it falls 1.9% QoQ. The bank's asset quality improves as gross NPAs fall by 91 bps YoY to 4.1% and net NPAs fall by 85 bps YoY to 1.2%.

  • Cyient is falling as its Q1FY23 net profit declines 24.7% QoQ to Rs 116.1 crore but revenue rises 5.8% QoQ to Rs 1,250.1 crore. EBIT margin falls 298 bps QoQ to 11.5%. Profit falls as employee benefits expense rises 10.5% QoQ to Rs 638 crore. Attrition rate rises 170 bps QoQ to 27.9%.

  • Gujarat State Fertilizer & Chemicals is trading with more than 19 times its weekly average trading volume. MOIL, Sheela Foam, Balaji Amines, and Can Fin Homesare trading at more than six times their weekly average trading volumes.

  • IndiaMART InterMESH is falling as the company's Q1FY23 profit falls 46.9% to Rs 46.7 crore despite marginal rise in revenue of 6.9% to Rs 225.6 crore. The profit falls as employee benefit expenses rises 68% to Rs 92.5 crore and and other expense rises 79% to Rs 67.8 crore.

  • IT stocks like Mphasis, Tech Mahindra, Infosys among others, are falling in trade. The broader Nifty IT index also trades in the red.

  • Mphasis falls despite its net profit rising 2.5% QoQ to Rs 401.8 crore in Q1FY23. Revenue increases by 4.1% QoQ to Rs 3,411.2 crore with logistics and transportation segment growing 6% QoQ to Rs 441 crore. However, revenue from insurance segment fell 3.1% QoQ to Rs 300.2 crore. The company guides for an EBIT margin of 15.25-17% in FY23.

  • Reserve Bank of India’s (RBI) Governor is positive on the growth prospects of the Indian economy while remaining watchful on the movement of the rupee. He believes any spillover impact on the Indian economy due to global headwinds will be modest.

  • Crisil is falling despite its Q1FY23 net profit rising 35.8% YoY to Rs 136.9 crore and revenue rising 26.5% YoY to Rs 668.5 crore. Revenue growth is led by the research services segment rising 32.1% YoY to Rs 469.5 crore. However, the EBITDA margin falls 110 bps YoY to 25.3%.

  • Gujarat State Fertilizers & Chemicals is rising as the company's Q1FY23 net profit increases 154% YoY to Rs 345 crore. Revenue from operations rises 63.1% YoY to Rs 3,018.2 crore helped by revenue of fertilizer products rising 82.9% YoY to Rs 2,279.3 crore.

  • Persistent Systems is rising as its Q1FY23 net profit rises 5.3% QoQ to Rs 211.6 crore and revenue rises 14.7% YoY to Rs 1,878.1 crore. Revenue grows on the back of the banking, financial services and insurance segment rising by 19.2% QoQ to Rs 634.4 crore and the software segment rising 13.4% QoQ to Rs 871.6 crore. Profit is hit due to employee benefits expenses rising 10.2% QoQ to Rs 1,110.6 crore and the cost of professionals rising 21.7% QoQ to Rs 260.3 crore.

  • Dolly Khanna buys a 1.2% stake in Suryoday Small Finance Bankfor Rs 10 crore during Q1FY23. She also bought a 0.3% stake in Prakash Pipes, which took here stake in the company to 2.7% at the end of the quarter.

  • NLC India is rising as its board approves investment of Rs 14,945 crore to set up a mining and power plant in Neyveli, Tamil Nadu. It plans to invest Rs 3,755.7 crore in setting up a mining plant and Rs 11,189.2 crore for the second expansion of thermal power station.

  • JSW Energy’s Q1FY23 net profit rises 2.6X YoY to Rs 554 crore as revenue increases 75.2% YoY to Rs 3,026.3 crore. Sale of power in the short term market at 874 million units (up nearly 6X YoY) and an increase in capacity at Vijayanagar plant led to higher revenues in Q1FY22. Still, EBITDA margin is down 9 percentage points to 36% in Q1FY23 as fuel expenses rise 92% YoY to Rs 1,559.3 crore.

Riding High:

Largecap and midcap gainers today include Atul Ltd. (8,659.65, 5.51%), UltraTech Cement Ltd. (6,458.70, 5.35%) and Grasim Industries Ltd. (1,521.35, 3.87%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (572.65, -4.38%), ABB India Ltd. (2,696.40, -2.75%) and Deepak Nitrite Ltd. (1,815.90, -2.69%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gujarat State Fertilizer & Chemicals Ltd. (163.75, 14.71%), MOIL Ltd. (161.00, 8.42%) and Cera Sanitaryware Ltd. (4,563.20, 6.22%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (4,074.45, -4.27%), SRF Ltd. (2,290.55, -2.26%) and Crompton Greaves Consumer Electricals Ltd. (377.05, -1.69%).

Atul Ltd. (8,659.65, 5.51%) was trading at 19.2 times of weekly average. Sheela Foam Ltd. (2,845.70, 5.55%) and Balaji Amines Ltd. (3,319.60, 6.13%) were trading with volumes 16.4 and 9.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,054.50, -0.06%), Bharat Electronics Ltd. (266.80, -0.71%) and Blue Dart Express Ltd. (8,372.05, 0.59%).

23 stocks climbed above their 200 day SMA including Balaji Amines Ltd. (3,319.60, 6.13%) and Aegis Logistics Ltd. (258.50, 5.66%). 14 stocks slipped below their 200 SMA including Syngene International Ltd. (572.65, -4.38%) and KPR Mill Ltd. (573.60, -4.18%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Jul 2022
Market closes higher, PVR posts a profit of Rs 53.4 crore in Q1FY23

Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, below 17%. Indian indices closed higher for a fifth straight session. European indices traded lower than Wednesday’s levels ahead of a key European Central Bank meeting. Major Asian indices closed mixed, despite the US indices closing in the green on Wednesday. US stocks rose supported by positive earnings reports. The tech-heavy index, NASDAQ 100 rose 1.6% while the S&P 500 closed 0.6% higher. Brent crude oil futures trade lower as investors remain concerned about reduced demand due to slow global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed higher than Wednesday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100, which rose 1.6% on Wednesday.

Nifty 50closed at 16,609.80 (89.0, 0.5%), BSE Sensexclosed at 55,681.95 (284.4, 0.5%) while the broader Nifty 500closed at 14,277.35 (113.0, 0.8%)

Market breadth is in the green. Of the 1,896 stocks traded today, 1,119 were on the uptick, and 720 were down.

  • Prism Johnson, CreditAccess Grameen, Procter & Gamble Hygiene & Healthcare, and Macrotech Developersare trading with higher volumesas compared to Wednesday.

  • Grasim Industries sees a long build-up in its July 28 future series as its open interest rises 1.4 % with a put-call ratio of 0.64.

  • Stocks like Aster DM Healthcare, Adani Transmission, Timken India, KRBL, and City Union Bank are in the overbought zone according to the technical indicators relative strength index or RSI and money flow index or MFI.

  • PVR is rising as it posts a profit of Rs 53.4 crore compared to a loss of Rs 219.4 crore in Q1FY22. Revenue jumps more than 16X YoY to Rs 981.4 crore on a low base due to covid-19 restrictions last year. The movie exhibition segment’s revenue rises 12X YoY to Rs 980 crore.

  • IDBI Bank’s Q1FY23 net profit rises 25.4% YoY to Rs 756.4 crore as provisions fall 47.9% to Rs 959.2 crore. Net interest income falls 5.6% YoY to Rs 4,640.8 crore. The bank's asset quality improves as gross NPAs fall by 281 bps YoY to 19.9% and net NPAs fall by 42 bps YoY to 1.25%.

  • Metropolis Healthcare may call off a potential deal with Flipkart over valuation concerns, according to reports.

  • Hindustan Zinc is rising as its Q1FY23 net profit surges 55.9% YoY to Rs 3,092 crore and revenue grows by 43.7% YoY to Rs 9,387 crore. Revenue grows on the back of the zinc and lead segment, which rises 54.6% YoY to Rs 8,066 crore. EBITDA margin rises 20bps YoY to 54.7%.

  • Media stocks like PVR, Inox Leisure, Sun TV Network, Zee Entertainment Enterprises, and Dish TV India, among others, are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

  • Motilal Oswal maintains a ‘Buy’ rating on ICICI Lombard General Insurance Co with a target price of Rs 1,500. This indicates an upside of 18%. The brokerage expects strong premium growth for the company. It believes this growth will be driven by robust new auto sales, health distribution channel growth, and digital capabilities investments. The brokerage estimates the company’s profit to grow at a CAGR of 27% over FY22-24.

  • AU Small Finance Bank’s Q1FY23 net profit rises 31.8% YoY to Rs 267.9 crore as interest earned is up 34.5% to Rs 1,820.2 crore. However, net profit falls 22.6% QoQ as total revenue remains flat and interest expended rises by 15.6% QoQ to Rs 844.2 crore. Provisions fall by 84.5% YoY to Rs 38.3 crore. The bank's asset quality improves as gross NPAs fall by 235 bps YoY to 1.9% and net NPAs fall by 170 bps YoY to 0.56%.

  • Gland Pharma is trading with more than 17 times its weekly average trading volume. Sonata Software, Aegis Logistics, Tata Communications, and IndusInd Bankare trading at more than six times their weekly average trading volumes.

  • Federal Bank partners with the Central Board of Direct Taxes to launch online tax payment services. This will allow taxpayers to pay taxes through the e-pay tax facility in the e-filing portal. The bank’s online tax payment services are effective from July 1.

  • Oracle Financial Services Software is falling despite its net profit rising 2.1% QoQ to Rs 491.8 crore and revenue rising 9.8% QoQ to Rs 1,402.5 crore. Revenue grows on the back of the product licenses activities segment rising 10.1% QoQ to Rs 968.6 crore. The company’s operating profit margin rises by 292 bps QoQ to 46.2%.

  • ITC touches a 52-week high of Rs 302.2 per share following the company’s annual general meeting.

  • Havells India is rising as its revenue rises 62.6% YoY to Rs 4,244.5 crore as all its business verticals see growth. The surge in revenue is driven by the Llyod consumer segment rising 2.2X YoY to Rs 1,093.8 crore and the cable segment growing 47.8% YoY to Rs 1,192.9 crore. However, profit rises by only 3.1% YoY to Rs 234.2 crore as raw material costs rise 85% YoY to Rs 2,391.5 crore and purchase of traded goods rise 2.5X YoY to 797.6 crore. The management says the demand outlook looks stable in the coming quarters.

  • Gland Pharma hits a 52-week low after its net profit falls 35% YoY to Rs 229 crore with revenue decreasing 26% to Rs 856.9 crore. The sales were hit because of shutdown of two manufacturing product lines.

  • Ashish Kacholia buys a 1.1% stake in Barbeque-Nation Hospitality worth Rs 44.6 crore during Q1FY23

  • Ceat’s Q1FY23 net profit falls 61.4% YoY to Rs 9.2 crore because a 58% YoY increase in raw materials cost to Rs 2,037.5 crore. Gross margins fall by 7.23 percentage points YoY to 31.7% in Q1FY23 despite a 47.8% YoY increase in revenue to Rs 2,818.3 crore.

  • IndusInd Bank is rising as its net profit rises 60.5% YoY to Rs 1,631 crore and revenue rises 8% YoY to Rs 8,181.8 crore. Revenue growth is driven by the wholesale banking segment’s revenue rising 32.5% YoY to Rs 2,900.7 crore. Net interest margin rises 15 bps YoY to 4.2% and its asset quality improves as its net non-performing assets fall 17 bps YoY to 0.67%.

  • Wipro’s Q1FY23 net profit falls 17% QoQ to Rs 2,563.6 crore with operating profit margin down 200 bps QoQ to 15%. This is because of increase in employee cost by 4% QoQ to Rs 12,613 crore and sub contracting expenses by 3.3% to Rs 2,945 crore. However, the company’s revenue is up 3.2% QoQ to Rs 21,528.6 crore with revenue from IT services increasing 3% QoQ to Rs 21,284.8 crore. Revenue from verticals like energy and manufacturing fall 3.4% and 2.8% QoQ, respectively. Employee attrition rate is down to 23.3% in Q1FY23 from 23.8% in Q4FY22.

Riding High:

Largecap and midcap gainers today include Tata Communications Ltd. (1,077.10, 10.03%), IndusInd Bank Ltd. (948.10, 7.82%) and ABB India Ltd. (2772.75, 6.70%).

Downers:

Largecap and midcap losers today include Gland Pharma Ltd. (2,329.70, -5.81%), Crompton Greaves Consumer Electricals Ltd. (383.55, -3.21%) and JSW Energy Ltd. (235.55, -2.52%).

Volume Shockers

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

Top high volume gainers on BSE included Aegis Logistics Ltd. (244.65, 15.76%), Tata Communications Ltd. (1,077.10, 10.03%) and IndusInd Bank Ltd. (948.10, 7.82%).

Top high volume losers on BSE were Gland Pharma Ltd. (2,329.70, -5.81%), Thyrocare Technologies Ltd. (608.80, -2.08%) and Trident Ltd. (41.05, -1.91%).

Sonata Software Ltd. (715.05, 4.86%) was trading at 18.9 times of weekly average. Eris Lifesciences Ltd. (673.60, 1.34%) and Kajaria Ceramics Ltd. (1,073.65, 7.44%) were trading with volumes 10.6 and 7.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks hit their 52-week highs, while 3 stocks hit their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (4,057.05, 1.37%), Bharat Electronics Ltd. (268.70, 5.41%) and Coromandel International Ltd. (1,034.80, 3.95%).

Stocks making new 52 weeks lows included - Thyrocare Technologies Ltd. (608.80, -2.08%) and Gland Pharma Ltd. (2,329.70, -5.81%).

20 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (244.65, 15.76%) and IndusInd Bank Ltd. (948.10, 7.82%). 8 stocks slipped below their 200 SMA including V-Guard Industries Ltd. (224.10, -2.84%) and Jubilant Ingrevia Ltd. (543.55, -2.56%).

 
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The Baseline
20 Jul 2022
Chart of the week: While several currencies fall, Russian ruble gains against US dollar in 2022

As the Indian rupee touches new all-time lows every other day against the US dollar, it is worth pondering if the going is really as bad as it is made out to be.

High inflation across  the world is forcing global central banks to raise rates to control runaway price increases. And central banks across the world are facing the challenge of controlling inflation in the face of a strengthening dollar. As the US Federal Bank hikes interest rates, the US dollar has gained, making major global commodities like oil that trade in dollars become more expensive for the rest of the world to import.Rising trade deficits and the attraction of the dollar as a safe haven are also driving investor money out of key emerging markets. 

Many currencies worldwide are performing much worse than the Indian rupee. In the past month, the Japanese yen fell to a 24-year low against the US dollar and is currently down 20% year-to-date. The euro fell below a one-for-one parity against the dollar for the first time since 2002. The worst performing currency against the dollar is the Argentine Peso which as of today is trading down 25.7% year-to-date. Even the UK’s pound sterling is down 11.1% against the US dollar since the start of the year while the Swedish Krona and Norwegian Krone fell 12.8% and 12.3%, respectively, against the dollar.

In face of this, the Indian rupee’s 7.6% fall year-to-date doesn’t seem all that bad. Breaching the Rs 80 mark against the dollar is being driven by foreign investors pulling money out of Indian equities. 

The surprising thing in all of this is the movement of the Russian ruble. After falling sharply due one of the toughest sanctions imposed on the country due its war with Ukraine, the ruble is the best performing currency globally from the beginning of the year, the ruble is up 25.7%. The county’s aggressive approach to stop money from leaving the country and the rising crude oil prices helped it strengthen against the US dollar. Commodity exporter Brazil also saw its Real currency strengthen against the dollar in the first half of 2022, although the trend has reversed since June on recession fears.

For the humble rupee though, it’s not all bad. But we are still at the end of July and there is doom and gloom about recession in the western countries. That could hurt the rupee further.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
20 Jul 2022
Market closes higher, Bank of India initiates insolvency proceedings against Future Retail

Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, falling below 17%. Indian indices closed higher for the fourth straight session. UK’s consumer price index rose 9.3% in June, hitting a 40-year high as food and energy prices continued to rise. However, European indices followed the global trend and traded higher than Tuesday’s levels. Asian indices closed in the green, tracking the US indices, which closed sharply higher on Tuesday. US stocks rose on the back of positive earnings reports. The tech-heavy index, NASDAQ 100, rose 3.1% while the Dow Jones closed 2.8% higher. Russian gas supply via the Nord Stream 1 pipeline is set to restart on time on Thursday, easing investors’ concerns about gas supply to Europe. Brent crude oil futures traded marginally lower after rising 1.5% on Tuesday.

Oil and gas stocks rose after the Centre cut windfall tax on the export of crude oil and its products. Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Energy closed higher than Tuesday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which closed sharply higher on Tuesday.

The market closed on an upbeat note. Nifty 50 closed at 16,495.80 (155.3, 1.0%) , BSE Sensex closed at 55,397.53 (629.9, 1.2%) while the broader Nifty 500 closed at 14,143.20 (91.6, 0.7%)

Market breadth is in the green. Of the 1,899 stocks traded today, 1,031 were on the uptrend, and 803 went down.

  • Sanofi India, Home First Finance Company India, Go Fashion (India), and IIFL Wealth Management are trading with higher volumes as compared to Tuesday.

  • Infosys sees a long build-up in its July 28 future series as its open interest rises 5.7% with a put-call ratio of 0.70

  • Stocks like Hinduja Global Solutions, Aster DM Healthcare, Tube Investments of India, Adani Transmission, and Timken India are in the overbought zone according to the technical indicators relative strength index or RSI and money flow index or MFI.

  • Bank of India initiates insolvency proceedings against Future Retail

  • FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Britannia Industries, Godrej Consumer Products, among others, are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

  • Syngene International is falling as its Q1FY23 net profit drops 4.4% YoY to Rs 73.9 crore despite its revenue rising 8.4% YoY to Rs 644.5 crore. Profit takes a hit mainly due to employee expenses rising 8.8% YoY to Rs 186.1 crore and other expenses increasing by 52.8% YoY to Rs 121 crore.

  • TVS Motors touches a 52-week high of Rs 890 after announcing an investment of Rs 1,000 crore to increase the production of its two-wheeler electric vehicles, according to reports. It plans to double its production capacity to 25,000 units a month by the end of this year.

  • HDFC Securities maintains its ‘Buy’ rating on Oberoi Realty with a target price of Rs 1,118. This indicates an upside of 30.4%. The brokerage remains positive on the company’s prospects given its robust sales pipeline, new launches, and strong balance sheet. It expects the company’s revenue to grow at a CAGR of 11.6% over FY22-24.

  • Cummins India and Federal Bank hit their 52-week highs of Rs 1,184.6 and Rs 109.4, respectively. While Federal Bank rises for five consecutive sessions, Cummins India trades higher for two sessions.

  • Metal stocks like Vedanta, National Aluminium Co, Steel Authority of India, APL Apollo Tubes, and Hindustan Copper, among others, are rising in trade. The broader sectoral index Nifty Metal is also trading in the green.

  • L&T Finance Holdings' Q1FY23 net profit rises 47.4% YoY to Rs 262 crore, however falls 23% QoQ. Interest income is down 2.1% YoY to Rs 2,946.5 crore but total income rises marginal by 0.6% to Rs 3,135.8 crore. Its retail loan disbursements increase 148% YoY to Rs 8,938 crore with two-wheeler loans rising 84% YoY to Rs 1,517 crore. The company’s net interest margin (including fee income) rises 71 bps YoY to 8.23%.

  • PNB Housing Finance is trading with more than eight times its weekly average trading volume. Triveni Turbine, Laxmi Organic Industries, Caplin Point Laboratories, and IIFL Wealth Management are trading at more than five times their weekly average trading volumes.

  • Stocks like Jubilant Foodworks, Devyani International, Sapphire Foods India, Restaurant Brands Asia, Barbeque-Nation Hospitality, among others are rising in trade after the Delhi High Court stays the guidelines on levying service charge by the Ministry of Consumer Affairs.

  • Rallis India is falling as its Q1FY23 net profit declines 18.1% YoY to Rs 67.5 crore despite its revenue rising 16.5% YoY to Rs 862.8 crore. Revenue grows on the back of price hikes and rise in sales volume but EBITDA margin drops 330 bps YoY to 13.1%.

  • Vedanta rises after the company announces a second interim dividend of Rs 19.50 per share for FY 2022-23. The total payout amounts to Rs 7,250 crore.

  • ICICI Lombard General Insurance is falling despite reporting a 79.6% YoY rise in net profit to Rs 349 crore. Gross written premium is up 29.6% YoY to Rs 5,529.7 crore while gross direct premium rises 28% to Rs 5,370 crore. Group health insurance sees a revenue growth of 34% YoY to Rs 772 crore and marine insurance sees a rise in revenue by 16.8% to Rs 105.6 crore.

  • All IT stocks are trading in the green. Stocks like Tech Mahindra, Larsen & Toubro Infotech, MindTree, Mphasis, L&T Technology Services and Coforge, are up by more than 2%. The broader sectoral index Nifty IT is also rising in trade.

  • Ambuja Cements is falling as its Q2CY22 net profit declines 14.2% YoY to Rs 752 crore despite its revenue rising 15.1% YoY to Rs 8,032.9 crore. The drop in profit is due to the power & fuel costs rising 62.6% YoY to Rs 2,632.5 crore and the cost of materials consumed rising 30.3% YoY to Rs 994.2 crore. The company’s EBITDA margin falls by 12.5 percentage points YoY to 14%.

  • Grasim Industries rises as its board of directors approve investment of Rs 2,000 crore over the next five years on a B2B e-commerce platform for trading and marketing of building materials.

  • Hindustan Unilever rises as its Q1FY23 net profit is up 13.5% YoY to Rs 2,381 crore with revenue increasing 20.4% to Rs 14,757 crore. EBITDA margin falls 110 bps YoY to 23.2%. Revenue from the home care segment sees the highest growth of 29.8% YoY to Rs 4,930 crore. However, total expenses also see a rise of 20.8% to Rs 11,531 crore as cost of materials expenses rises 32%.

  • Centre cuts windfall tax on diesel and aviation fuel exports by Rs 2 per litre as global crude oil prices fall. The export tax on diesel and aviation turbine fuel are Rs 11 and Rs 4 per litre, respectively. It rolls back the entire export tax on petrol of Rs 6 per litre while cutting an additional excise duty on domestically produced crude oil by 27% to Rs 17,000 per tonne.

Riding High:

Largecap and midcap gainers today include L&T Technology Services Ltd. (3,406.35, 6.81%), Vedanta Ltd. (253.20, 6.05%) and Oil India Ltd. (197.45, 5.81%).

Downers:

Largecap and midcap losers today include Hindustan Zinc Ltd. (278.85, -6.63%), ICICI Lombard General Insurance Company Ltd. (1,216.85, -4.22%) and Tube Investments of India Ltd. (2,194.90, -3.04%).

Volume Shockers

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

Top high volume gainers on BSE included KPR Mill Ltd. (557.10, 8.58%), Aavas Financiers Ltd. (2,267.50, 8.03%) and Laxmi Organic Industries Ltd. (325.65, 7.92%).

Top high volume losers on BSE were ICICI Lombard General Insurance Company Ltd. (1,216.85, -4.22%), Hatsun Agro Products Ltd. (929.30, -2.30%) and HDFC Life Insurance Company Ltd. (525.20, -2.00%).

Triveni Turbine Ltd. (167.95, 6.16%) was trading at 18.4 times of weekly average. PNB Housing Finance Ltd. (358.60, 6.00%) and Century Plyboards (India) Ltd. (591.70, 3.18%) were trading with volumes 14.2 and 9.9 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,

Stocks touching their year highs included - Adani Transmission Ltd. (3,018.75, -0.36%), AIA Engineering Ltd. (2,405.80, -1.14%) and Bajaj Auto Ltd. (4,002.05, 0.00%).

23 stocks climbed above their 200 day SMA including KPIT Technologies Ltd. (532.50, 5.26%) and Gillette India Ltd. (5,396.95, 3.55%). 8 stocks slipped below their 200 SMA including Blue Star Ltd. (995.15, -2.91%) and Havells India Ltd. (1,223.25, -2.82%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
19 Jul 2022
Market closes higher, HDFC Life’s Q1 profit up 22% YoY to Rs 328.7 crore

Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, below 17.5%. Indian rupee hit a record low of 80.05 against the US dollar. European stocks traded mostly flat amid mixed global cues. Most Asian indices closed in the green, tracking the US indices futures, which traded higher. However, US indices closed lower on Monday after giving up early gains on a volatile day of trade. The tech-heavy index, NASDAQ 100 closed 0.9% lower while the Dow Jones fell 0.7% on Monday. Crude oil traded flat after rising close to 5% on Monday. Tight crude oil supply due to the geopolitical crisis, and fears of slow economic growth induced by aggressive rate hikes remain the key factors affecting the crude oil price.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank, which opened in the red, closed higher. Nifty IT closed flat despite the NASDAQ 100 closing lower on Monday.

Nifty 50closed at 16,329.30 (50.8, 0.3%), BSE Sensexclosed at 54,767.62 (246.5, 0.5%) while the broader Nifty 500closed at 14,041.80 (57.4, 0.4%)

Market breadth is in the green. Of the 1,880 stocks traded today, 1,128 were gainers and 712 were losers.

  • Brightcom Group, Macrotech Developers, ZF Commercial Vehicle Control Systems India, and Chemplast Sanmarare trading with higher volumesas compared to Monday.

  • Polycab India sees a long build-up in its July 28 future series as its open interest rises 12.7% with a put-call ratio of 0.55.

  • Polycab India’s Q1FY23 net profit rises 195.5% YoY to Rs 222.5 crore as revenue from operations rises 47.5% YoY to Rs 2,736.5 crore. However, its net profit falls 31.6% QoQ due to revenue from operations falling 31% QoQ and a rise in material cost and employee benefit expenses.

  • TV18 Broadcast is falling as its Q1FY23 profit falls 76.6% YoY to Rs 33.7 crore but revenue rises 9.5% YoY to Rs 1,265 crore. The fall in profit is due to operational costs rising 26.9% YoY to Rs 584.4 crore and marketing, distribution and promotional expenses rising 25% YoY to Rs 287.1 crore. The company’s EBITDA margin falls by 11.6 percentage points YoY to 4.6%.

  • Surya Roshni rises as the company receives an order worth Rs 91.3 crore from Bharat Gas Resources for supply of 2.3 lakh metres of four and 12 inch API SL grade three layer polyethylene coated line pipes within a period of one year

  • HDFC Life Insurance’s Q1FY23 net profit rises 22% YoY to Rs 328.7 crore with first year premium income increasing 32.9% to Rs 1,708.6 crore. New business margin is up 60 bps to 26.8%. Asset under management in Q1FY23 stands at Rs 2 lakh crore, an increase of 10% YoY. The quality of business improves as 13-month persistency ratio increases 200 bps to 88%.

  • Mindtree is rising after it partners with a US-based cloud data management and security company Rubrik. Both firms will jointly launch a cyber-recovery platform ‘Mindtree Vault’ which will deal with the ransomware and cyber attacks.

  • Sterlite Technologies rises as the company wins deal worth Rs 250 crore with one of India's largest telecom operators. The deal is to provide specialised optic fibres and deployment services to build the telecom operator's network across nine telecom circles in India.

  • ICICI Direct maintains its ‘Buy’ rating on HDFC Bank with a target price of Rs 1,650, indicating an upside of 21%. The brokerage remains positive on the company’s prospects given the build-up of its digital and physical infrastructure, branch addition, and growth in its retail segment. It expects the company’s net profit to grow at a CAGR of 19% over FY22-24.

  • Advanced Enzyme Technologies is trading with more than 18 times its weekly average trading volume. Great Eastern Shipping Company, Engineers India, Dilip Buildcon, and Grindwell Norton are trading at more than four times their weekly average trading volumes.

  • Public sector banks like Bank of Baroda, Canara Bank, Punjab & Sind Bank, among others are rising in trade. The broader Nifty PSU Bank index also trades in the green.

  • Pharma stocks like Divi’s Laboratories, Dr. Reddy's Laboratories, Torrent Pharmaceuticals, Biocon, Alkem Laboratories, Zydus Lifesciences, among others are rising in trade. The broader sectoral index Nifty Pharma is also trading in the green.

  • DCM Shriram’s Q1FY23 net profit rises 61.2% YoY to Rs 253.9 crore as total revenue rises 47.5% YoY to Rs 2,999.9 crore. However, net profit falls 36.7% QoQ due to increase in material, employee and, power and fuel expenses.

  • Nelco is rising as its Q1FY23 net profit is up 7.8% YoY to Rs 4.7 crore. Its revenue sees a 48.2% rise to Rs 81.6 crore. However, EBITDA margin falls 359 bps YoY to 18.4% in Q1FY23.

  • Oil companies like Mangalore Refinery And Petrochemicals, Chennai Petroleum, Oil India, among others are rising in trade as brent crude oil price rises above $ 105 per barrel.

  • Alok Industries is falling as its Q1FY23 loss widens 45% YoY to Rs 141.6 crore despite its revenue rising 55.9% YoY to Rs 1,971.5 crore. The increase in loss is due to the cost of materials consumed rising 54.7% YoY to Rs 1,371.8 crore.

  • Auto stocks like Mahindra & Mahindra, Eicher Motors, TVS Motors, among others are rising in trade. The broader Nifty Auto index is also trading in the green.

  • Mangalore Chemicals & Fertilizers is falling after it announces the shutting down of its phosphatic fertilizer plant. It shut down the plant due to the non-availability of the raw material phosphoric acid. The company is yet to announce the date of resuming operations in the plant.

  • Indian rupee depreciates seven paise to another record low of 80.05 against the US dollar in early trade today.

  • Arvind is rising after Shiprocket acquires its technology business ‘Omuni’ for Rs 200 crore in a stock and cash deal. Both companies are leaders in in D2C commerce segment. The deal will result in better post-purchase experience for customers.

  • Mastek’s arm Mastek Inc. to acquire US-based tech consulting partner Metasoftech Solutions. It will acquire 100% stake in the company for $76.6 million. The acquisition is likely to complete by end of August.

  • Tube Investments’ arm inks pact with IPLTech Electric (IPLT) to acquire 65.2% stake, for an amount of Rs 246 crore. IPLT is a startup engaged in manufacturing and sale of heavy electric commercial vehicles.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (2,263.75, 12.36%), Oberoi Realty Ltd. (898.80, 4.87%) and Polycab India Ltd. (2,250.80, 4.53%).

Downers:

Largecap and midcap losers today include GAIL (India) Ltd. (140.25, -2.67%), Max Financial Services Ltd. (831.05, -2.08%) and Tata Motors Limited (DVR) (223.95, -2.08%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tube Investments of India Ltd. (2,263.75, 12.36%), Dilip Buildcon Ltd. (219.10, 7.19%) and Advanced Enzyme Technologies Ltd. (294.90, 7.04%).

Top high volume losers on BSE were Grindwell Norton Ltd. (1,679.70, -2.69%), HDFC Life Insurance Company Ltd. (535.90, -1.26%) and Biocon Ltd. (329.05, -1.02%).

Great Eastern Shipping Company Ltd. (441.00, 6.84%) was trading at 17.9 times of weekly average. Engineers India Ltd. (64.20, 5.59%) and TTK Prestige Ltd. (895.00, 6.08%) were trading with volumes 12.0 and 11.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks made 52-week highs,

Stocks touching their year highs included - Adani Transmission Ltd. (3,029.75, 1.65%), AIA Engineering Ltd. (2,433.60, 3.04%) and Eicher Motors Ltd. (3,077.70, 1.36%).

19 stocks climbed above their 200 day SMA including PCBL Ltd. (117.80, 6.51%) and Escorts Kubota Ltd. (1,755.35, 5.27%). 6 stocks slipped below their 200 SMA including Grindwell Norton Ltd. (1,679.70, -2.69%) and Tata Motors Limited (DVR) (223.95, -2.08%).