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The Baseline
08 Jun 2022
Chart of the Week: India's forex reserves rise for two consecutive weeks

The RBI raised its policy rate (repo rate) today by 50 bps from 4.4% to 4.9%, signaling that it is going to aggressively battle inflation. At this juncture, the RBI’s Monetary Policy Committee voted to move away from the ‘accommodative stance’ it had previously held to boost economic growth. This had contributed to increasing inflation, which was already up due to the rise in crude prices.

With a lot of uncertainty on the economic front, foreign institutional investors (FII) pulled out money from the Indian market. According to a report, FIIs pulled out more money from January-May 2022 than they invested in the Indian market in the last 12 years. FII activity in the last 30 days alone shows a net sale in Indian shares of Rs 35,800.7 crore.

This exit hurt India’s foreign exchange reserves. The dip in India’s forex reserves began in March 2022, when they fell 1.5% in seven days to $622 billion. Then on May 13 forex reserves plunged again by 6% to USD 593.3 billion. This is the highest decline in India’s forex reserves since March 04, 2022.

Now, India’s forex reserves are back over the $600 billion mark. This was because of the appreciation of non-US currencies like the euro, pound sterling, and the yen held in foreign exchange reserves. India’s forex reserves are in various global currencies but are denoted in dollars for easy comparison. As the dollar index fell nearly 1.5% against major currencies like the euro and pound, the value of India’s forex reserves in those currencies increased. 

With crude oil rising every week and China’s economy opening up, India’s forex reserves will be closely watched. India imports over 80% of its crude oil - as fuel demand continues to rise, there will be a higher price to pay for imports.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
08 Jun 2022
Market closes lower, RBI raises repo rate by 50 bps to 4.9%

Trendlyne Analysis

Nifty 50 closed in the red, with the Indian volatility index, India VIX, falling below 20%. The Reserve Bank of India (RBI) increased the repo rate by 50 bps to 4.9% as it withdrew its ‘accommodative stance’ for economic growth. RBI retained the FY23 real GDP growth estimate at 7.2%. The World Bank cut India’s economic growth forecast for the current fiscal to 7.5% from 8% due to rising inflation and supply chain disruptions. Most Asian indices closed higher, tracking the US indices, which closed in the green on Tuesday. US indices rose led by technology and energy stocks. S&P 500 rose close to 1% while Dow Jones increased by 0.8% on Tuesday. Brent crude oil edges higher and trades above $120 per barrel ahead of US oil inventories data release. European indices trade lower than Tuesday’s levels as investors assess the impact of aggressive monetary policy tightening on global economic growth.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, tracking the benchmark index. Nifty Media and Nifty Realty closed higher than Tuesday’s levels. Nifty ITclosed in the green, tracking the tech-heavy NASDAQ 100, which rose 0.9% on Tuesday.

Nifty 50 closed at 16,356.25 (-60.1, -0.4%), BSE Sensex closed at 54,892.49 (-214.9, -0.4%) while the broader Nifty 500 closed at 13,886.90 (-48.7, -0.4%)

Market breadth is in the red. Of the 1,877 stocks traded today, 755 showed gains, and 1,079 showed losses.

  • GlaxoSmithKline Pharmaceuticals, Tube Investments of India, Bajaj Holdings & Investment, and ZF Commercial Vehicle Control Systems Indiaare trading with higher volumesas compared to Tuesday.

  • Deepak Nitrite sees a short build-up in its Jun 30 futures series as its open interest rises 16.2% with put to call ratio at 0.52.

  • Stocks like Mangalore Refinery And Petrochemicals, Praj Industries, Elgi Equipments, TCNS Clothing Co., Engineers India, TV18 Broadcast and PNB Housing Financerise by more than 5% in trade today.

  • Stocks like Aditya Birla Sun Life AMC, Symphony, Birla Corporation, and JK Cement, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

  • ICICI Direct maintains a “Buy’ rating on MM Forgings with a target price of Rs 1,250, indicating an upside of 40%. The brokerage expects robust revenue growth for the company on healthy demand growth, new product launches, and an increasing share of machining in its product profile. The brokerage estimates the company’s profit to grow at a 39% CAGR over FY22-24.

  • One97 Communications (Paytm) rises as Reserve Bank of India (RBI) proposes the linking of credit cards to UPI platforms. RuPay credit cards will be the first to be linked to UPI platforms.

  • Central Banks of the major economies have begun to respond to inflation by tightening their monetary policies. After the RBA, RBI also raised its policy rate by 50 bps.

  • Sapphire Foods India and The New India Assurance Company touch their 52-week lows of Rs 932.5 and Rs 95.8 respectively. Both stocks are trading lower for the sixth consecutive day.

  • YES Bank gains as it initiates the process of setting up an alternate board in line with the YES Bank Reconstruction Scheme March 2020. The constitution of the alternate board will be recommended for approval to shareholders at the annual general meeting on July 15.

  • Biocon is trading lower and hit an over two-year low of Rs 312. In the past six weeks, shares of the pharmaceutical company is down 18% after it reported a 4% YoY fall in consolidated net profit to Rs 283.9 crore in Q4FY22.

  • Lupin is rising after it gets a tentative nod from the US FDA to market ivacaftor tablets. Ivacaftor is used to treat specific types of cystic fibrosis, a hereditary disease that causes problems with breathing, digestion, and reproduction in adults. The drug will be manufactured at its Nagpur facility. Ivacaftor tablets have an estimated annual sales of $109 million in the US, according to IQVIA.

  • PNB Housing Finance is trading with more than 14 times its weekly average trading volume. Engineers India, Sterlite Technologies, GlaxoSmithKline Pharmaceuticals, and Mangalore Refinery And Petrochemicalsare trading at more than three times their weekly average trading volumes.

  • ICICI Direct maintains a ‘Buy’ rating on TCI Express with a target price of Rs 2,000, indicating an upside of 21%. The brokerage remains positive on the company’s prospects due to its strong free cash generation, better margins from new businesses, and robust capital structure. The brokerage expects the company’s revenue to grow at a 20.8% CAGR over FY22-24

  • Reserve Bank of India increases repo rate by 50 bps to 4.9% as it withdraws its ‘accommodative stance’ for economic growth. Marginal Standing Facility (MSF) and bank rate stand at 5.15%.

  • Realty stocks like DLF, Macrotech Developers, Godrej Properties, Oberoi Realty, among others, are on the rise, after RBI doubles cooperative banks’ housing loan limits. The broader sectoral index Nifty Realty is also trading in the green.

  • Ramkrishna Forgings receives an export order worth Rs 115 crore from a European supplier for a new differential housing case business.

  • ITD Cementation is rising as it receives an order for a road construction project worth Rs 4,850 crore. The project involves the construction of a six-lane greenfield expressway in Uttar Pradesh on an EPC (Engineering, Procurement and Construction) basis.

  • Indian rupee appreciates 9 paise to Rs 77.69 against the US dollar in early trade today.

  • FMCG stocks like Hindustan Unilever, ITC, Nestle India, Britannia Industries, Tata Consumer Products, among others, are falling in trade due to rise in Covid cases. The broader sectoral index Nifty FMCG is also trading in the red.

  • Adani Power invests a total of over Rs 609 crore in Support Properties and Eternus Real Estate to acquire 100% stake in them. The companies will help Adani Power set up infrastrcuture facilities.

  • Zomato board will meet on June 17 to consider the acquisition of quick commerce company Blinkit, according to reports. The value of the final deal is yet to be finalized. Blinkit’s largest investor SoftBank Vision Fund will get a 4% stake in the company. The deal will involve a stock swap in the ratio of 1:10, where Zomato gets 10 shares of every one share of Blinkit.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,099.60, 5.07%), SBI Cards and Payment Services Ltd. (784.90, 2.65%) and Dalmia Bharat Ltd. (1,269.70, 2.58%).

Downers:

Largecap and midcap losers today include Gujarat Gas Ltd. (489.10, -7.03%), Deepak Nitrite Ltd. (1,798.45, -4.84%) and Polycab India Ltd. (2,314.10, -4.31%).

Volume Shockers

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

Top high volume gainers on BSE included TV18 Broadcast Ltd. (45.00, 10.84%), Mangalore Refinery And Petrochemicals Ltd. (118.00, 9.11%) and Dishman Carbogen Amcis Ltd. (129.40, 8.65%).

Top high volume losers on BSE were Gujarat Gas Ltd. (489.10, -7.03%), Mas Financial Services Ltd. (507.90, -5.84%) and Polycab India Ltd. (2,314.10, -4.31%).

PNB Housing Finance Ltd. (345.20, 4.59%) was trading at 18.1 times of weekly average. Engineers India Ltd. (62.90, 4.75%) and Hawkins Cookers Ltd. (5,211.00, 0.30%) were trading with volumes 11.9 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52-week highs, while 13 stocks tanked below their 52-week lows.

Stock touching their year highs included - Mangalore Refinery And Petrochemicals Ltd. (118.00, 9.11%).

Stocks making new 52 weeks lows included - Biocon Ltd. (320.55, 1.20%) and Birla Corporation Ltd. (856.75, -0.43%).

11 stocks climbed above their 200 day SMA including Network 18 Media & Investments Ltd. (80.05, 5.47%) and Aster DM Healthcare Ltd. (193.55, 2.14%). 18 stocks slipped below their 200 SMA including Polycab India Ltd. (2,314.10, -4.31%) and Aegis Logistics Ltd. (216.90, -3.21%).

 
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The Baseline
08 Jun 2022
Up up and away: oil prices just keep rising

As China comes out of lockdowns, the competition to buy oil just got much more expensive. US oil reserves are also down, and Saudi Arabia is busy raising prices. Brent crude just hit $120 per barrel.

Does anyone remember April 2020, when oil prices briefly fell below zero because storing oil was more expensive than buying it? 

To combat rising prices, India has been making very large purchases of discounted Russian oil -  purchases from Russia jumped 500% to 840,000+ barrels per day this May, compared to May last year (when it was 136,774 bpd). With Reliance, IOC, BPCL and HPCL planning new six-month contracts for Russian crude, the purchases are not stopping anytime soon. 

Interactive chart - hover to see data

Despite these big buys, the price of India's oil basket is getting costlier and crossed above $116 per barrel in June (see chart above). The rise in oil prices will fuel inflation, an important issue as the RBI met this week to push through another rate hike, raising the repo rate by 50 basis points to 4.9%.

Stock markets: All eyes are on earnings now

US equities have fallen 15% from the peak they saw in the first week of January. India's Nifty50 on the other hand, has fallen just 3.1% over the past six months. Earnings Per Share (EPS) has risen steadily for Nifty50 companies over the same period (pink line in the chart):

 Nifty50's performance over the coming months will depend on how Indian companies' earnings are in the June quarter.

Management across sectors - from FMCG to specialty chemicals - have all said they have hiked prices. Rising prices may hit company earnings in the June quarter, as consumer spending slows. India's consumer spending growth fell to 1.8 percent in the Jan-March period from a year earlier. It had grown at 7.4 percent in the previous quarter.  

Lose lose situation for India's loss-making startups

As the RBI hikes rates amid high prices, investors should be careful about newly listed high-growth, loss-making companies. These businesses - like Zomato, Paytm, PB Fintech - rely on a steady inflow of investor money to keep growth going. But investor capital is likely to see a sharp slowdown in the coming weeks and months as interest rates go up and capital becomes more expensive. 

So are Indian startups losing their shine? See Deeksha Janiani's video analysis: 

Interesting reads

One of India's fastest growing specialty chemicals companies has aggressive growth plans, Ketan Sonalkar writes.

L&T has outlined its hopes and dreams in its Lakshya 2026 plan. Can it execute?

Mid-tier IT firms - Mindtree, Tech Mahindra, Coforge and others - are set to have a topsy-turvy FY23, Vivek Ananth says.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Jun 2022
Market closes lower, HG Infra Engineering bags contract worth Rs 4,971 crore

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, rising above 20%. Most Asian indices closed lower amid rising bond yields as investors await the global inflation print releases and monetary policy decisions by global central banks this week. However, Japan’s Nikkei index hit a two-month high boosted by auto stocks. US indices closed higher on Monday led by the tech-focused NASDAQ 100, which closed 0.4% higher. Crude oil edges higher and trades at elevated levels on expected demand revival in China after relaxing strict Covid lockdowns. European Indices trade in the red, tracking the Asian indices.

Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Realty closed lower than Monday’s levels. Nifty IT closed in the red, taking cues from the NASDAQ 100 futures, which are trading in the red.

Nifty 50closed at 16,416.35 (-153.2, -0.9%), BSE Sensexclosed at 55,107.34 (-568.0, -1.0%) while the broader Nifty 500closed at 13,935.60 (-118.5, -0.8%)

Market breadth is in the red. Of the 1,874 stocks traded today, 609 were on the uptick, and 1,214 were down.

  • Shriram City Union Finance, Kalpataru Power Transmissions, Phoenix Mills, and CESC are trading with higher volumesas compared to Monday.

  • Oil and Natural Gas Corp (ONGC) sees a long build-up in its Jun 30 futures series as its open interest rises 30.9% with put to call ratio at 0.44.

  • Stocks like Symphony, Jindal Steel & Power, Rajesh Exports, Delta Corp, and JK Cement, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Zydus Lifesciences receives final approval from United States Food & Drug Administration (USFDA) to market adapalene and benzoyl peroxide topical gel. The gel is used to decrease the number and severity of acne pimples. The product is estimated to have a market size of $195 million.

  • Aurobindo Pharma’s wholly-owned subsidiary, Eugia Pharma Specialties receives final approval from the United States Food & Drug Administration (USFDA) to manufacture and market Leuprolide Acetate Injection. The injection is used to treat the symptoms associated with advanced prostate cancer. The product is estimated to have a market size of $83 million and will be launched this month.

  • HG Infra Engineering receives a contract worth Rs 4,971 crore from Adani Road Transport to develop an access-controlled six-lane greenfield Ganga Uttar Pradesh expressway of 151.7 kilometers.

  • Chola Wealth Direct maintains a ‘Market Performer’ rating on Page Industries with a target price of Rs 44,530, indicating an upside of 4.5%. The brokerage believes the company’s revenue could see high growth on the back of a strong distribution reach, diverse product portfolio, and a loyal customer base. However, the brokerage sees rising raw material prices increasing margin pressure in the coming quarters. The brokerage expects the company’s revenue to grow at a 18.5% CAGR over FY22-24.

  • Mangalore Refinery and Petrochemicals (MRPL), Chennai Petroleum Corp (CPCL), Bharat Petroleum Corp, among other downstream oil and gas sector stocks are trading higher. Singapore benchmark's gross refinery margin touches a record high of $ 25.2 per barrel, boosting confidence among investors and traders towards downstream oil and gas stocks.

  • ICICI Lombard General Insurance Co. and Lux Industries touch 52-week low of Rs 1,151.6 and Rs 1,945. While ICICI Lombard General Insurance Co. is falling for five consecutive sessions, Lux Industries trades lower for three sessions.

  • Consumer durable stocks like Havells India, Voltas, Whirlpool of India, Crompton Greaves Consumer Electronics and Dixon Technologies are falling in trade. The broader sectoral index BSE Consumer Durables is also trading in the red.

  • Mangalore Refinery And Petrochemicalsis trading with more than six times its weekly average trading volume.PB Fintech, Bajaj Holdings & Investment, Kalpataru Power Transmissions, and Oil India are trading at more than three times their weekly average trading volumes.

  • Edelweiss maintains a ‘Buy’ rating on Zydus Wellness with a target price of Rs 2,271, indicating an upside of 46%. The brokerage remains positive on the company’s prospects due to its focus on distribution expansion, new launches, and rising sales volume. The brokerage expects the company’s net profit to grow at a 20.8% CAGR over FY22-24.

  • Hindustan Aeronautics surges to hit an all-time as the Ministry of Defence approves the procurement of indigenous equipment worth Rs 76,390 crore. The equipment includes next-generation corvettes, armoured fighting vehicles and engines for the Sukhoi-30 MKI fleet.

  • Realty stocks like Indiabulls Real Estate, DLF, Godrej Properties, Macrotech Developers, and Brigade Enterprises among others are falling in trade. The broader sectoral index Nifty Realty is also trading in red.

  • Dish TV is falling as promoter entities World Crest Advisors LLP and Direct Media Distribution Ventures sold their stakes in the company to STCI Finance on Thursday. World Crest Advisors LLP reduces its stake to 0.05% from 0.56% and Direct Media Distribution Ventures reduces its stake to 0.56% from 2.09%.

  • Oil India hits a five-year high of Rs 291 as the profit for Q4FY22 rises 93.3% YoY to Rs 1,630 crore. Brokerages like Prabhudas Lilladhar, HDFC Securities, and Motilal Oswal remain bullish on the stock and maintain a 'Buy' call. The stock is rising for seven consecutive days.

  • Apollo Hospitals Enterprise and Adani Group to consider bidding for a majority stake in Metropolis Healthcare, according to reports. The deal could be worth $1 billion.

  • As the Reserve Bank of India's Monetary Policy Committee starts its regular bi-monthly meeting, other global central banks are acting to curb broad-based inflation.

  • HLE Glascoat is rising as its board approves the sub-division of one equity share of the face value of Rs 10 each, into fully-paid up five equity shares of Rs 2 each. The company’s board also approves raising Rs 350 crore by issuing equity shares.

  • Adani Enterprises receives approval to set up a hyper-scale data centre park at Bengal Silicon Valley on 51.75 acres of land, according reports.

  • PB Fintech falls as the Chairman and CEO of the company, Yashish Dahiya intents to sell 37.7 lakh equity shares via bulk deals on the open market.

  • NMDC cuts prices of lump ore by Rs 1,100 to Rs 4,400 per tonne and fines by Rs 1,000 to Rs 3,300 per tonne, effective from June 5, 2022. The revised prices exclude royalty, district mineral fund, national mineral exploration trust, cess, forest permit fee, and other taxes. The company had last made a price revision on May 25, 2022.

Riding High:

Largecap and midcap gainers today include Oil And Natural Gas Corporation Ltd. (161.85, 5.13%), Honeywell Automation India Ltd. (32,627.00, 3.98%) and NHPC Ltd. (33.90, 2.42%).

Downers:

Largecap and midcap losers today include Zee Entertainment Enterprises Ltd. (237.80, -4.50%), Titan Company Ltd. (2,100.20, -4.47%) and Gujarat Gas Ltd. (527.80, -4.31%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (108.60, 20.00%) and Kalpataru Power Transmissions Ltd. (365.10, 0.16%).

Top high volume losers on BSE were Gujarat Gas Ltd. (527.80, -4.31%), BEML Ltd. (1,328.20, -1.37%) and Bajaj Holdings & Investment Ltd. (4,979.85, -0.79%).

Oil India Ltd. (277.95, -0.34%) was trading at 5.6 times of weekly average.

BSE 500: highs, lows and moving averages

3 stocks overperformed with 52-week highs, while 19 stocks hit their 52-week lows.

Stocks touching their year highs included - Mangalore Refinery And Petrochemicals Ltd. (108.60, 20.00%), Oil India Ltd. (277.95, -0.34%) and Hindustan Aeronautics Ltd. (1,895.50, 0.41%).

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (516.30, -1.19%) and Birla Corporation Ltd. (860.45, -2.47%).

2 stocks climbed above their 200 day SMA including Tata Motors Ltd. (436.65, 0.99%) and ZF Commercial Vehicle Control Systems India Ltd. (7,839.35, 0.00%). 26 stocks slipped below their 200 SMA including Greaves Cotton Ltd. (150.55, -4.81%) and MRF Ltd. (71,490.00, -4.31%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Jun 2022
Market closes flat, Prabhudas Lilladher upgrades Aarti Industries rating to 'Accumulate'

Trendlyne Analysis

Nifty 50 recovered from the day’s low and closed flat on a volatile day of trade. However, most Asian indices closed in the green as China eased Covid-19 lockdowns offering hope for a global economic recovery. Major US indices closed in the red on Friday led by the tech-heavy NASDAQ 100, which fell over 2.7%. US stocks fell as a strong US job report released on Friday, allows the US Federal Reserve to maintain its aggressive stance on inflation. Saudi Arabia raises crude oil prices for its Asian customers starting July leading to a rise in crude oil prices globally. European indices trade higher than Friday’s levels ahead of key inflation print releases this week.

Nifty Smallcap 100 closed lower despite the benchmark index closing flat. Nifty Media closed lower while Nifty Metal closed higher than Friday’s levels. Nifty IT closed in the red, tracking the tech-focused NASDAQ 100, which fell 2.7% on Friday.

Nifty 50closed at 16,569.55 (-14.8, -0.1%), BSE Sensexclosed at 55,675.32 (-93.9, -0.2%) while the broader Nifty 500closed at 14,054.10 (-23.8, -0.2%)

Market breadth is in the red. Of the 1,904 stocks traded today, 700 were gainers and 1,145 were losers.

  • Galaxy Surfactants, J B Chemicals & Pharmaceuticals, Kansai Nerolac Paints, and Equitas Small Finance Bank are trading with higher volumes as compared to Friday.

  • Rain Industries sees a long build-up in its Jun 30 futures series as its open interest rises 11% with put to call ratio at 0.38.

  • Stocks like ICICI Bank, ITC, HCL Technologies, Hindustan Unilever, Larsen & Toubro, and Titan Company, among others, are outperforming their respective sectors in the past month.

  • Prabhudas Lilladher upgrades rating on Aarti Industries from ‘Hold’ to ‘Accumulate’ with a target price of Rs 880, indicating an upside of 22%. The brokerage expects the company’s revenue growth to be driven by increasing capacity utilization, rising domestic demand and import substitution. The brokerage expects the company’s revenue to grow at an 18% CAGR over FY22-24.

  • Stocks like Hemisphere Properties India, Thyrocare Technologies, Indoco Remedies and Oil India rise by more than 5% in trade today.

  • Tata Motors receives an order for the supply of 10,000 XPRES-EV (electric vehicle) units from BluSmart Electric Mobility, according to reports.

  • Kolte-Patil Developers partners with Tata Power to set up charging stations across its projects in Pune, Mumbai, and Bengaluru. Tata Power will provide seamless EV (electric vehicle) charging facilities to the residential customers of Kolte-Patil Developers.

  • Hem Securities initiates coverage on Agarwal Industrial Corp with a ‘Buy’ rating and a target price of Rs 705, indicating an upside of 32%. The brokerage believes the company is well-placed to benefit from the rise in infrastructure spending given its fully integrated business model and market leadership in bitumen transportation with a market share of 28%. The brokerage expects the company’s profit to grow at a 22.5% CAGR over FY22-24.

  • Vijaya Diagnostic Centre and Aptus Value Housing Finance India touch an all-time low of Rs 345.1 and Rs 270.3 respectively. Both stocks are falling for two consecutive sessions.

  • PVR and Inox Leisure fall as investors worry about a decrease in footfall as Covid-19 infections rise, according to reports. The Maharashtra government makes the wearing of masks compulsory in public places after the number of cases increase by 54% in the last 24 hours.

  • Glenmark Life Sciences is trading with more than 11 times its weekly average trading volume. Thyrocare Technologies, Aegis Logistics, Galaxy Surfactants, and Garware Technica Fibres are trading at more than 2 times their weekly average trading volumes.

  • Aditya Birla Group set to invest Rs 77,000 crore towards building new capacity and entering new sectors.

  • Oil India rises after Kotak Institutional Equities upgrades the stock to ‘Add’ from ‘Sell’ with a target price of Rs 285, indicating an upside of 10.7%. The upgrade is on the assumption of elevated oil and gas prices in FY23-24. It raises its operating profit estimates for Oil India by 71% for FY23 and 83% for FY24.

  • Cyient’s arm Cyient Europe acquires a 100% stake in Celfinet for a total cash consideration of euro 41 million (Rs 341.4 crore). Celfinet is a wireless engineering and network management services provider based out of Lisbon, Portugal. The company expects the acquisition to improve its wireless engineering services and expand its presence in Europe.

  • Larsen & Toubro wins an order worth Rs 2,500-5,000 crore from the Municipal Corporation of Greater Mumbai to set up the Bandra wastewater treatment. The project involves designing, building, operating and maintaining the 360 million litres per day sewage treatment plant, which will also have an inhouse power generator.

  • All media stocks are trading in the red. Stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Network 18 Media & Investments, Saregama India, TV 18 Broadcast and Inox Leisure are falling below 2%. The broader sectoral index Nifty Media is also trading in the red.

  • Adani Transmission enters into a share purchase agreement with Essar Power to acquire a 100% stake in Essar Power Transmission for a total consideration of Rs 1,913 crore. The company expects this acquisition to expand its transmission line network, and reduce operational costs.

  • Vehicle retail sales in May 2022 rises 206.8% YoY to 16.5 lakh units. Two-wheeler sales rise 197.7% YoY to 12.2 lakh units and three-wheeler sales rise 695.9% YoY to 41,508 units. Passenger vehicle sales rise 204% to 2.6 lakh units and commercial vehicle sales rise 278% YoY to 66,632 units. Hero Motocorp's market share falls to 37.6% from 47%, and TVS Motor's and Bajaj Auto's market share fall marginally to 13.9% and 10.1%, respectively.

  • The Centre directs Coal India to import 12 million tonnes of coal to avoid a shortage of coal stock for power utility companies. Coal India will import coal for the next 13 months to meet the demand of power supply companies.

  • Zydus Lifesciences receives final approval from the United States Food and Drug Administration (USFDA) to market Famotidine tablets in the strengths of 20mg and 40mg. This drug is used to prevent and treat heartburn and other symptoms caused by acid indigestion. This drug has a market size of $67 million and will be manufactured at the company’s drug formulation facility in Ahmedabad.

  • NTPC awards multiple contracts to Adani Enterprises to import 6.25 million tonnes of coal worth Rs 6,585 crore, according to reports. The power generating company is importing coal to meet the new target given by the Union power ministry to blend 10% imported coal to deal with the domestic coal shortage.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (278.90, 11.14%), Adani Power Ltd. (298.30, 5.00%) and Bajaj Auto Ltd. (3,817.00, 3.93%).

Downers:

Largecap and midcap losers today include Coforge Ltd. (3,606.85, -4.08%), Berger Paints (India) Ltd. (589.90, -3.12%) and Shree Cements Ltd. (20,002.70, -3.08%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Oil India Ltd. (278.90, 11.14%), Thyrocare Technologies Ltd. (670.50, 5.80%) and Indoco Remedies Ltd. (380.00, 4.89%).

Top high volume losers on BSE were V Mart Retail Ltd. (2,900.00, -6.66%), Anupam Rasayan India Ltd. (649.55, -4.75%) and Akzo Nobel India Ltd. (1,785.00, -0.60%).

Dhanuka Agritech Ltd. (710.05, 1.03%) was trading at 5.6 times of weekly average. Aegis Logistics Ltd. (228.65, 2.28%) was trading with volume 3.5 times weekly average on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52-week highs, while 19 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Oil India Ltd. (278.90, 11.14%) and Sumitomo Chemical India Ltd. (484.10, 4.87%).

Stocks making new 52 weeks lows included - Biocon Ltd. (318.70, -0.50%) and Birla Corporation Ltd. (882.25, -4.36%).

10 stocks climbed above their 200 day SMA including Adani Transmission Ltd. (2,017.10, 3.12%) and ZF Commercial Vehicle Control Systems India Ltd. (7,839.15, 2.85%). 18 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (8.25, -9.34%) and Greaves Cotton Ltd. (158.15, -4.41%).

 
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The Baseline
06 Jun 2022
Five analyst picks that outperformed the Nifty 50

This week, we look at five analyst picks that outperformed the Nifty 50 and have a fresh buy call.

  1. Jubilant Foodworks: IDBI Capital maintains a ‘Buy’ call on this quick service restaurant operator with a target price of Rs 766. This indicates an upside of 42.8%. The company outperformed the Nifty 50 index by 2.3% over the past seven days.

“Jubilant Foodworks has reported in-line results for 4QFY22. Revenue grew 13%YoY (to Rs 1,157.9 crore in Q4FY22) led by 5.8% like-for-like growth. Delivery drove revenue growth while dine-in was impacted due to Omicron,” say analysts Varun Singh and Chetan Mahadik. The company’s profit grew 17.3% YoY to Rs 122.3 crore during the quarter. 

According to the analysts, in Q4FY22 the company added 80 Domino's stores (the highest ever, totaling 230 in FY22) along with 4 Popeyes stores, 1 Dunkin store, 1 Hong Kong Kitchen store, and 1 Ekdum store. The analysts are also positive about the appointment of the new CEO Sameer Khetarpal.

  1. Dixon Technologies (India): Axis Securities maintains a ‘Buy’ rating on this electronics contract manufacturer with a target price of Rs 4,450, indicating an upside of 21.6%. The company outperformed the Nifty 50 index by 5.7% over the past seven days.

“Dixon reported a consolidated revenue of Rs 2,953 crore in Q4FY22, down 3.9% QoQ but up 40% YoY, led by strong growth in the mobiles and home appliances segment,” says analyst Hiren Trivedi. In Q4FY22, net profit grew 37% YoY to Rs 63 crore. The analyst further added, “Dixon continues to focus on new client acquisition and product addition to aid its top line growth, backward integration, and increasing own design manufacturing revenues.”

Trivedi believes that the company will continue to benefit from its strong order book and execution capabilities to improve its operations. He also thinks that the company will enter into new product segments while deriving benefits from the PLI scheme in multiple segments. He expects the company’s revenue and profit to grow at a CAGR of 38% and 52% respectively, between FY 22-24

  1. Timken India: ICICIdirect has a 'Buy' rating on this industrial product manufacturer’s stock, with a target price of Rs 2,810. This indicates an upside of 15.4%. The company outperformed the Nifty 50 index by 22.6% over the past seven days.

“It (the company) has state-of-the-art manufacturing plants in Jamshedpur in Jharkhand, and Bharuch in Gujarat,” said analysts Chirag Shah and Yash Panwar. “Timken India reported an excellent set of numbers in Q4FY22, with revenues better than our expectation due to exceptional performance on the industrial segment side,” they added. Revenue for Q4FY22 came in at Rs 667.4 crore, up 40.4% YoY (versus the brokerage’s estimate of Rs 553.7 crore). In Q4FY22, the company registered a profit of Rs 121.3 crore (versus the brokerage’s estimate of Rs 68.1 crore), up 129.2% YoY, and EBIDTA margin was 26.9% against 18.3% in the consecutive quarter previous year (versus the brokerage’s estimate of 19.9%). The analysts believe that the surprise in the margin came due to higher gross margins, lower employee costs, and other expenses.

  1. Vedant Fashions: ICICI Securities initiates coverage on this branded apparel company with a ‘Buy’ rating and a target price of Rs 1,200, indicating an upside of 11.1%. This stock outperformed the Nifty 50 index by 10% over the past seven days.

Analysts Krupal Maniar and Harsh Mittal say that “first-mover advantage, scale efficiencies and no discounts on Manyavar allows Vedant Fashions to enjoy a significantly higher gross margin compared to most other listed brands”. They added that the company enjoys a higher gross margin of 75% on the net end customer sales than most other listed brands, which have a gross margin between 45-60%. The higher gross margin results in higher profitability and superior free cash flow generation for the company.

The analysts believe the asset-light business model followed by the company will continue to drive profitability. The company outsources a substantial portion of manufacturing and distribution, which enables it to reduce input costs, thereby improving profitability. The analysts expect Vendant’s profit to rise at a 23% CAGR over FY22-25.

  1. Mahindra & Mahindra: Motilal Oswal maintains a ‘Buy’ rating on this automaker’s stock with a target price of Rs 1,150, indicating an upside of 11.4%. This stock outperformed the Nifty 50 index by 6.9% over the past seven days.

“Mahindra & Mahindra’s Q4FY22 performance was above our estimate, as a strong recovery in the auto business made up for weakness in the tractor business,” say analysts Jinesh Gandhi, Vipul Agarwal, and Aniket Desai. They noted that the outlook for the tractor business is improving but it is the auto business that will drive growth over the next couple of years. They expect the growth in the auto business to be driven by new launches in the SUV (sport utility vehicle) segment and cyclical recovery in the LCV (light commercial vehicle) segment.

The company is the biggest player in the SUV market with a 17.8% market share, and expects a 16% volume CAGR in passenger utility vehicles over FY22-24. The analysts estimate the company’s revenue to grow at a 19.5% CAGR over FY22-24.

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

 
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The Baseline
03 Jun 2022
Five Interesting Stocks Today

  1. FSN E-Commerce Ventures (Nykaa): This online fashion and beauty products company’s stock rose 3% on Monday even after its Q4FY22 net profit fell 96.5% YoY to Rs 8.6 crore. According to Trendlyne’s Forecaster, it missed profit estimates by 78% in Q4FY22. The street’s consensus is still positive on this stock with it having 12 ‘Buy’ ratings,  one ‘Sell’ and three ‘Hold’ ratings.

Nykaa reported negative operating cash flows (Rs 354 crore) for FY22. This could be because of an increase in inventory as the company expanded its warehouses on a regional level. As a result, cash is tied up in inventory. The company is expanding its warehouse coverage to reduce the delivery time of products, which improved serviceability of orders by 98% in FY22. Almost 95% of orders were delivered in five days. This helped revenue rise 31.4% YoY to Rs 973.3 crore and a 71% rise in the GMV or gross merchandise value to Rs 6,933 crore.

ICICI Securities remains positive on the stock as it expects Nykaa’s investments to build a sustainable growing business. However, the management remains cautious and highlighted inflation, reduction in discretionary spending, and Covid uncertainty to be major challenges in FY23. CEO Falguni Nayar is targeting growth in the fashion space, which is expected to grow to $125 billion by 2025, even though it’s a crowded industry.

  1. Coal India: This coal miner’s stock outperformed the Nifty 500 over the past month. Although the stock fell by nearly 10% in the second week of May, it rose again ahead of Q4FY22 results. The company’s Q4FY22 net profit rose 46.3% YoY to Rs 6,715 crore, while revenues increased 22.6% to Rs 30,046.2 crore. Its raw coal production also increased 2.8% YoY to 209 million tonnes.

The uptrend of the stock began after the company announced its divestment of a 25% stake from its unlisted arm Bharat Coking Coal (BCCL). It also plans to get BCCL listed after getting the necessary approvals from the Ministry of Coal. 

While BCCL’s performance isn’t something to write home about as its FY21 production missed its target, the divestment plan enthused investors sending Coal India’s stock higher. BCCL posted a loss of Rs 1,577.6 crore in FY21 on a turnover of Rs 6,149.8 crore (up 31.4% YoY).

For now, Coal India’s growth prospects look good and its recent production numbers look decent. The company’s coal production in May 2022 rose 30% YoY to 54.7 million tonnes and coal offtake increased 11.3% to 61.2 million tonnes. 

  1. United Spirits: This alcohol company’s stock rose 6% since Monday after announcing its Q4FY22 results, despite its net profit falling 12.9% YoY to Rs 181.7 crore. United Spirits shows up on a screener for companies that declared their results in the past week with a declining net profit YoY and QoQ. So why did the stock rise despite posting a bad show in Q4FY22?

The company announced that it will sell 32 ‘popular’ brands or entry-level brands to Inbrew Beverages (Inbrew) for Rs 828.5 crore. The sale of these brands was on the anvil for a while, and now that it is finally done, the company plans to use the funds received from this slump sale to wipe out its accumulated losses. The Diageo-owned company and Inbrew have entered into a five-year franchise arrangement for 11 other brands. According to the agreement, the legal titles of the franchise brands will remain with United Spirits and it will receive royalties over the franchise period. The company also granted Inbrew a right to convert the fixed-term franchise arrangement into one with perpetual rights with a call option to acquire the brands at Rs 1,331 crore. This transaction is expected to be completed by September 30.

  1. Sun TV Network: This broadcaster’s stock rose 4.1% since it announced its Q4FY22 results last Friday evening. This is despite its net profit falling 15.8% YoY to Rs 410.2 crore as operating expenses rose 20.6% to Rs 142.7 crore. However, its profit beat Trendlyne’s Forecaster estimates by 8.2%. The stock’s up move after the results helped it outperform the Nifty 50 index over the past week. The reason profit fell is due to a high base, caused by a deferred tax credit of Rs 426.8 crore in Q4FY21. The growth in revenue was driven by a 7% YoY rise in advertisement revenue, as overall viewership improved. The company’s revenue from IPL (Indian Premier League) stood at Rs 28.9 crore in Q4FY22 and is set to recognize a large part of the revenue from IPL in Q1FY23. Sun TV also owns the Sunrisers Hyderabad team.

The company is increasingly investing in content creation in the South Indian market, as it expects to maintain its growth momentum in viewership in the coming years. As it is nearly debt-free and has a positive cash flow, this offers it the flexibility to intensify investments in the OTT (over-the-top) content as well. But as the company has not held an earnings conference call since November 8, 2021 (Q2FY22 earnings call), there is no management guidance regarding its OTT investments. 

  1. Go Fashion (India): This clothing and apparel retailer saw itspromoter’s pledged shares rise to 11.65% of the shares they held in the company at the end of Q4FY22. At the end of Q3FY22, there were no pledges on any promoter shares. For context, the promoter group entities–VKS Family Trust and PKS Family Trust–had pledged 16.56% stake in the company to Tata Capital Financial Services before the IPO for a loan facility of Rs 40 crore. These entities, along with other promoters, hold a 52.8% stake in the company post the IPO. A part of the IPO proceeds received by the promoters went towards paying off this debt. 

Then came the bumper listing which saw the stock double from its issue price of Rs 690, but now it’s been trading around Rs 1,000 levels for a while. On April 1, PKS Family Trust pledged a 2.47% stake in the company. This takes the total pledged promoter holding to 16.32% of the shares held by the promoter and promoter group entities.

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

 
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The Baseline created a screener Stocks with Free Float …
03 Jun 2022
Companies whose free float market capitalization is greater than 1000 crore.
 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Jun 2022
Market closes lower, ICICI Direct maintains a ‘Buy’ rating on GAIL India

Trendlyne Analysis

Nifty 50 gave up all its gains on a volatile day of trade and closed below Thursday’s closing level. The S&P Global India Services Purchasing Managers’ index (PMI) rises to 58.9% in May, topping analysts’ expectations. Any value above 50 indicates an expansion. PMI stood at 57.5 in April. Most Asian stocks closed in the green, tracking the US indices, which closed sharply higher on Thursday. The tech-heavy NASDAQ 100 rose 2.8% while S&P 500 closed 1.8% higher than Thursday’s level.

Crude oil is set for its sixth weekly gain as the OPEC+ supply meeting delivered only a modest increase in crude oil output. Crude oil is expected to trade at elevated levels on the back of European Union agreeing to cut over 90% of crude oil imports from Russia by the end of 2022. Investors look ahead to the US Labour Department’s jobs report, which is due later today. A considerable slowdown in the employment market may convince the Federal Reserve to slow the interest rate hikes going forward. European indices follow the global trend and trade higher than Thursday’s levels.

Nifty Next 50 and Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty Metal and Nifty Media, which opened in the green, closed lower than Thursday’s levels.Nifty IT closed in the green, tracking the tech-focused NASDAQ 100, which rose 2.8% on Thursday.

Nifty 50closed at 16,584.30 (-43.7, -0.3%), BSE Sensexclosed at 55,769.23 (-48.9, -0.1%) while the broader Nifty 500closed at 14,077.90 (-90.1, -0.6%)

Market breadth is sharply down. Of the 1,881 stocks traded today, 573 were gainers and 1,269 were losers.

  • ZF Commercial Vehicle Control Systems India, Indoco Remedies, SKF India, and Gland Pharmaare trading with higher volumesas compared to Thursday.

  • Indiabulls Housing Finance sees a long build-up in its Jun 30 futures series as its open interest rises 8.7% with put to call ratio at 0.54.

  • Stocks like Solar Industries India, Indiabulls Housing Finance and TCI Expressrise by more than 5% in trade today.

  • HDFC Securities maintains a ‘Sell’ rating on Bata India with a target price of Rs 1,400. The brokerage continues to have a negative outlook on the company’s prospects as its pace of recovery is slower than its peers. The brokerage also points out that the company’s profit is at 31% of pre-pandemic levels in FY22.

  • Auto stocks like Maruti Suzuki India, Tata Motors, Eicher Motors, Hero MotoCorp, Bosch, and Ashok Leyland, among others, are falling in trade. The broader sectoral index Nifty Auto is also trading in the red.

  • S&P Global India Services Purchasing Managers’ Index (PMI) rises to 58.9 in May for India's service sector compared to 57.9 in April. This is the tenth consecutive month of expansion. A PMI number above 50 indicates an expansion.

  • Va Tech Wabag receives a order worth Euro 146 million from Société Nationale Des Eaux du Sénéga, the National Water Company of Senegal to design, build and operate the 50 million liter per day Mamelles sea water desalination project. The project is to be executed by the company in consortium with Toyota Tsusho Corp, Japan and Eiffage Génie Civil, France.

  • Power stocks like Adani Green Energy, Adani Transmission, NTPC, Adani Power, and Torrent Power, among others, are falling in trade. The broader sectoral index BSE Power is also trading in red.

  • ICICI Direct maintains a ‘Buy’ rating on GAIL India with a target price of Rs 180, indicating an upside of 21%. The brokerage expects the company’s revenue to rise on the back of favourable LNG spot prices, higher realisation, and an increase in gas transmission volumes. The brokerage estimates the company’s revenue to grow at a 19.5% CAGR over FY22-24.

  • Ratnamani Metals & Tubes is trading with more than 15 times its weekly average trading volume. TCI Express, Advanced Enzyme Technologies, Deepak Nitrite, and Dalmia Bharatare trading at more than five times their weekly average trading volumes.

  • Ratnamani Metals & Tubes touches 52-week high Rs 2,864, stock rises for two consecutive sessions. However, Shree Cements touches 52-week low of Rs 20,651.6, stock falls for five sessions.

  • MTAR Technologies rises as it enters a share purchase agreement to acquire Gee Pee Aerospace for Rs 8.8 crore. The company will acquire a 100% stake in Gee Pee Aerospace making it a wholly-owned subsidiary.

  • Deepak Nitrite falls in trade after the warehouse section of its manufacturing site at Nandesari, Gujarat catches fire on Thursday. The company says that there are no casualties. Plant operations are likely to resume in one or two days.

  • Mahindra & Mahindra Financial Services is rising as its disbursements in May rise 272% YoY to Rs 2,973 crore and the collection efficiency rises by 28 percentage points YoY to 95%. The collection efficiency is in-line with pre-covid levels.

  • India's digital payments platform-Unified Payments Interface (UPI) processes transactions worth Rs 10 lakh crore, a record high since its launch in 2016.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and Mindtree, among others, are rising as the rupee rises 0.16% to Rs 77.47 against the dollar in early trade. The broader sectoral index Nifty IT is also trading in the green

  • Cement stocks like Grasim Industries, Shree Cements, Ambuja Cements, ACC, Dalmia Bharat, JK Cement and Ramco Cements, among others, trade lower after UltraTech Cement announces Rs 12,886 crore capex plan to expand production capacity.

  • Adani Ports and Special Economic Zone’s May 2022 cargo volume rises 4% YoY to 30.4 million metric tonnes indicating slow growth. Total coal volumes increase 6% YoY as thermal coal volumes are up 5% and coking coal by 9%. Crude volumes rise 15% YoY despite high crude oil prices.

  • Aether Industries’ shares list at a 9.7% premium to the issue price of Rs 642 on its debut on the bourses. The Rs 808-crore IPO was subscribed for 6.3X of the total shares on offer.

  • Angel One is rising as its client base rises 4.7% MoM in May to 1 crore. The number of orders grows 6.8% MoM to 7 crore with its retail turnover market share in the commodity segment increasing by 184 bps MoM to 45.1%

  • UltraTech Cement’s board approves capex of Rs 12,886 crore towards increasing capacity by 22.6 million tonnes per annum through brownfield and greenfield projects. The company will use a mix of debt and internal accruals to finance its capex plans. Commercial production from these new capacities will start from FY25. The existing expansion plan of the company is likely to complete by end of FY23.

Riding High:

Largecap and midcap gainers today include Macrotech Developers Ltd. (1,091.15, 5.43%), Reliance Industries Ltd. (2,779.50, 2.03%) and Emami Ltd. (429.45, 1.71%).

Downers:

Largecap and midcap losers today include The Ramco Cements Ltd. (630.80, -9.26%), Dalmia Bharat Ltd. (1,252.80, -8.80%) and Dixon Technologies (India) Ltd. (3,644.45, -6.99%).

Volume Rockets

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

Top high volume gainers on BSE included Macrotech Developers Ltd. (1,091.15, 5.43%), Indiabulls Housing Finance Ltd. (122.60, 4.38%) and TCI Express Ltd. (1,676.75, 4.12%).

Top high volume losers on BSE were The Ramco Cements Ltd. (630.80, -9.26%), Dalmia Bharat Ltd. (1,252.80, -8.80%) and JK Cement Ltd. (2,144.95, -8.42%).

Ratnamani Metals & Tubes Ltd. (2,514.00, -3.44%) was trading at 20.9 times of weekly average. India Tourism Development Corporation Ltd. (342.30, 2.64%) and Advanced Enzyme Technologies Ltd. (297.25, 3.41%) were trading with volumes 13.4 and 11.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52-week highs, while 10 stocks hit their 52-week lows.

Stock touching their year highs included - Ratnamani Metals & Tubes Ltd. (2,514.00, -3.44%).

Stocks making new 52 weeks lows included - Grasim Industries Ltd. (1,339.45, -6.50%) and Ipca Laboratories Ltd. (861.15, -2.12%).

11 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (223.55, 1.91%) and Century Textiles & Industries Ltd. (889.10, 1.53%). 14 stocks slipped below their 200 SMA including Adani Transmission Ltd. (1,956.05, -3.44%) and Hero MotoCorp Ltd. (2,583.75, -2.98%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Jun 2022
Market closes higher, ICICI Direct maintains ‘Buy’ on Bharat Electronics

Trendlyne Analysis

Nifty 50 closed in the green with the Indian volatility index, India VIX rising by more than 1.5%. Nifty IT and Nifty Energy indices ended higher while Nifty Auto lagged the other indices. SBI Research projects the Indian economy to grow at 7.5% in FY23, which is an upward revision of 20 bps. This comes after the Centre says the Indian economy grew at 8.7% in FY22. Aether Industries is all set to list on the bourses tomorrow at a premium, as suggested by its grey market premium of Rs 25-30. The pan-European STOXX 600 index rose 0.4% led by healthcare and technology stocks.

Nifty 50closed at 16,628.00 (105.3, 0.6%), BSE Sensexclosed at 55,818.11 (436.9, 0.8%) while the broader Nifty 500closed at 14,167.95 (85.1, 0.6%)

Market breadth is in the green. Of the 1,877 stocks traded today, 1,101 were on the uptick, and 728 were down.

  • Zydus Wellness, Kansai Nerolac Paints, Cera Sanitaryware, and Solar Industries Indiaare trading with higher volumesas compared to Wednesday.

  • Berger Paints sees a long build-up in its Jun 30 futures series as its open interest rises 10.7% with put to call ratio at 0.68.

  • Fine Organic Industries gains more than 34% in last four trading sessions and hits a 52-week high of Rs 6,139.9 today, after robust Q4FY22 results. Its standalone net profit rises 281% YoY to Rs 110 crore and revenue increases 87% to Rs 601 crore.

  • Stocks like RHI Magnesita India, Apollo Hospitals Enterprise, and Brightcom Groupfall by more than 5% in trade today.

  • The 3-year average ROCE of ICICI Securities is 29.1% and Finolex Industries' is 25.6%. These companies have the highest 3-year average ROCE among the low PE profit-making Nifty 500 firms.

  • ICICI Direct maintains a ‘Buy’ rating on Bharat Electronics with a target price of Rs 290, indicating an upside of 24%. The brokerage believes the company’s order inflow growth, sustained margins and robust order book will drive profit growth in the coming quarters. The brokerage expects the company’s profit to grow at a 12.3% CAGR over FY22-24.

  • Energy stocks like Reliance Industries, Adani Green Energy, Adani Transmission, Oil and Natural Gas Corp, NTPC, and Bharat Petroleum Corp, among others are rising in trade. The broader sectoral index Nifty Energyis also trading in the green.

  • Edelweiss maintains a ‘Buy’ rating on KNR Construction with a target price of Rs 354, indicating an upside of 37%. The brokerage remains positive on the company’s prospects given its debt-free balance sheet, strong order book visibility, and robust bid pipeline. The brokerage expects the company’s net profit to grow at a 17.8% CAGR over FY22-24.

  • Stocks like Hikal, Aditya Birla Sun Life AMC, Lupin, Equitas Small Finance Bank, and Jindal Steel & Power, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

  • Blue Dart Express and KEI Industries touch 52-week high of Rs 7,814.6 and Rs 1,377.4 respectively. While Blue Dart Express is rising for six consecutive sessions, KEI Industries is trading higher for three sessions.

  • Capri Global Capitalis trading with more than three times its weekly average trading volume. Balaji Amines, Fine Organic Industries, Coromandel International, and Gland Pharmaare trading at more than two times their weekly average trading volumes.

  • Delhivery gains as Credit Suisse initiates coverage on the stock with an ‘outperform’ rating with a target price of Rs 675, indicating an upside of 26%. The brokerage prefers the stock as the company does not incur customer acquisition costs. It also sees steady growth in profit by nearly 5.5% by FY25 and revenue to grow at a 29% CAGR over FY22-25. IIFL Securities differs in its opinion and rates the stock as ‘Sell’ with a target price of Rs 442, indicating a downside of 17%. It believes the company needs to improve its operating efficiency and EBITDA margins.

  • Motilal Oswal maintains a ‘Buy’ rating on Restaurant Brands Asia with a target price of Rs 150, indicating an upside of 54%. The brokerage believes the company is well-placed to benefit from the recovery in the dine-in industry. The addition of Burger King Café outlets and cost-saving initiatives will drive EBITDA margin expansion, the brokerage said. Furthermore, the brokerage expects the company’s revenue to grow at a 38.8% CAGR over FY22-24.

  • Religare Enterprises is rising as its arm Religare Finvest's lead lender gets an offer of a one--time settlement of its dues to lenders. The subsidiary is ready to consider this offer.

  • Eicher Motors’ arm Royal Enfield’s May wholesales rise 133% YoY to 63,643 units. Models with engine capacity up to 350cc drive growth by rising 137% YoY to 53,835 units. Models with engine capacity exceeding 350cc rise 115% YoY to 9,808 units and exports rise 40% YoY to 10,118 units.

  • The FMCG sector saw its volumes fall in Q4FY22. This is visible in many FMCG companies' Q4FY22 results, which saw their net profit fall YoY. These include Nestle India, Dabur India, Godrej Consumer Products, etc. Companies like ITC, Hindustan Unilever and Colgate-Palmolive's net profit growth slowed considerably.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Larsen & Toubro Infotech and MindTree among others are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

  • Reliance Industries' arm Reliance Brands and Plastic Legno SPA inks a joint venture arrangement through which Reliance Brands will acquire a 40% stake in the toy manufacturer. This investment will bring in vertical integration for its toy business and help diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.

  • Greaves Cotton is rising as Abdul Lateef Jameel International DMCC is set to buy a 35.6% stake worth Rs 1,160 crore in its electric vehicle arm, Greaves Electric Mobility (GEM). The company expects this investment to aid it in developing new products and technologies. GEM also has the option to require the investor to make further investments of Rs 543.2 crore within the next 12 months.

  • Indian rupee depreciates 0.11% to Rs 77.61 against the US dollar in early trade today.

  • Hero MotoCorp’s total wholesales jump 165.9% YoY to 4.8 lakh units because of improving customer sentiment. Motorcycle wholesales rise 153% YoY to 4.5 lakh units while scooter wholesales increase 694% to 34,458 units. Total exports for the company however fall 13.8% to 20,238 units. The company also postpones the launch of its electric vehicle till the festive season because of supply constraints and a shortage of auto components.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (2,445.85, 5.16%), Ruchi Soya Industries Ltd. (1,111.10, 4.20%) and Adani Green Energy Ltd. (1,925.80, 4.19%).

Downers:

Largecap and midcap losers today include Apollo Hospitals Enterprise Ltd. (3,645.25, -5.05%), Info Edge (India) Ltd. (3,923.05, -3.85%) and Adani Power Ltd. (295.35, -3.83%).

Movers and Shakers

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

Top high volume gainers on BSE included Finolex Cables Ltd. (400.55, 10.28%), Century Textiles & Industries Ltd. (875.70, 8.69%) and IFB Industries Ltd. (926.25, 7.54%).

Top high volume loser on BSE was Coromandel International Ltd. (954.15, -0.83%).

Greaves Cotton Ltd. (164.90, 1.95%) was trading at 8.8 times of weekly average. Abbott India Ltd. (18,376.15, 3.38%) and Fine Organic Industries Ltd. (5,482.90, 6.96%) were trading with volumes 5.4 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Blue Dart Express Ltd. (7,695.15, 0.37%), Coromandel International Ltd. (954.15, -0.83%) and Mahindra & Mahindra Ltd. (1,044.55, -0.27%).

Stocks making new 52 weeks lows included - Ipca Laboratories Ltd. (879.80, -1.06%) and Thyrocare Technologies Ltd. (632.15, -0.98%).

15 stocks climbed above their 200 day SMA including Century Textiles & Industries Ltd. (875.70, 8.69%) and Sundaram Clayton Ltd. (3,876.35, 5.99%). 10 stocks slipped below their 200 SMA including Krishna Institute of Medical Sciences Ltd. (1,256.05, -3.02%) and Mahindra Holidays & Resorts India Ltd. (218.05, -2.79%).