
Trendlyne Analysis
Indian indices closed in the red on a volatile day of trade. India’s gross domestic product or GDP growth stands at 4.1% in Q4FY22 against 1.6% in Q4FY21. However, GDP growth slowing down QoQ in Q4FY22 can further put pressure on the already volatile markets as investors will assess the slowing down of GDP growth on company financials. In FY22, India’s GDP grows 8.7% vs a contraction of 6.6% in FY21. India’s GDP increases only by 1.5% in FY22 compared to pre-pandemic levels in FY20. India’s Manufacturing Purchasing Managers’ Index or PMI comes in at 54.6 in May 2022, topping analysts’ expectations but slightly lower than 54.7 in April 2022. India's goods and services tax or GST collection in May rises 44% YoY to Rs 1.41 lakh crore.
Asian indices closed lower, taking cues from the US indices, which closed in the red on Tuesday. US equities fell amid rising bond yields as investors remain anxious about the impact of aggressive interest rate hikes by the central banks. Crude oil rises on the back of lifting lockdowns in China and the European Union agreeing to cut over 90% of oil imports from Russia by the end of 2022. European indices open marginally higher than Tuesday’s levels amid mixed global cues.
Nifty Smallcap 100 closed in the green, despite the benchmark index closing lower. Nifty Metal and Nifty FMCG closed lower than Tuesday’s levels. Nifty IT, which opened higher, closed in the red, tracking the tech-heavy NASDAQ 100, which closed in the red on Tuesday.
Nifty 50closed at 16,522.75 (-61.8, -0.4%), BSE Sensexclosed at 55,381.17 (-185.2, -0.3%) while the broader Nifty 500closed at 14,082.90 (-36.7, -0.3%)
Market breadth is in the green. Of the 1,884 stocks traded today, 1,005 were on the uptrend, and 826 went down.
Tube Investments of India, Krishna Institute of Medical Sciences, TeamLease Services, and Ambuja Cements are trading with higher volumes as compared to Tuesday.
Motilal Oswal maintains a ‘Buy’ rating on Sun Pharmaceutical Industries with a target price of Rs 1,040, indicating an upside of 17%. The brokerage remains positive for the company’s prospects due to its market share gain in branded segments, steady pace of product launches, and improving operating leverage. The brokerage expects the company’s revenue to grow at a 12.1% CAGR over FY22-24.
Sumitomo Chemical India and Timken India touch 52-week high of Rs 489 and Rs 2,515 respectively. Both stocks are rising for four consecutive sessions.
Maruti Suzuki India’s total wholesales rise by 246.7% YoY to 1.61 lakh units with total passenger vehicle wholesales up 237.7% YoY to 85,941 units. Mini and compact car segment’s wholesales rise 240% to 85,355 units and mid-size car wholesales rise 67.9% YoY to 586 units. Total exports rise 141.4% YoY to 27,191 units.
Axis Securities maintains a ‘Buy’ rating on PNC Infratech with a target price of Rs 345, indicating an upside of 39%. The brokerage believes the company is well placed to capture growth opportunities in the infrastructure sector, given its robust and diversified order book, and efficient execution prowess. The brokerage expects the company’s net profit to grow at a 26% CAGR over FY22-24.
India's Manufacturing Purchasing Managers’ Index (PMI) stands at 54.6 in May 2022. This number is slightly lower than 54.7 in April 2022.
Btw, if you ask me, the story is not China contraction of demand but the fact that the REST OF ASIA isn't falling apart & resilient and some even thrived like Vietnam and South Korea.
— Trinh (@Trinhnomics) June 1, 2022
India PMI just came out - a solid number despite China contraction. https://t.co/nGBqyY33lHTata Motors' May 2022 total wholesales rise 186% YoY to 76,210 units and total domestic wholesales rise 204% YoY to 74,755 units. Domestic commercial vehicle wholesales rise 188% YoY to 32,818 units while commercial vehicle exports fall 31% YoY to 1,404 units. Passenger vehicle wholesales rise 185% YoY to 43,341 units with electric passenger vehicle wholesales rising 626% YoY to 3,454 units.
Happiest Minds Technologies is trading with more than six times its weekly average trading volume. General Insurance Corporation of India, Chalet Hotels, Hemisphere Properties India, and Dilip Buildconare trading at more than three times their weekly average trading volumes.
Va Tech Wabag is rising as it secures an engineering and procurement order worth Rs 149 crore. The order comes from DL E&C Co of Korea for a water treatment package for its EuroChem Methanol production facility in Kingisepp, Russia. The project is set to be completed over a 15-month period.
Eicher Motors' VE Commercial Vehicles’ May 2022 total wholesales rise 360.9% YoY to 5,637 units. Domestic wholesales rise 667.2% YoY to 5,033 units but exports fall 9.2% YoY to 471 units
Bata India is falling as reports suggest that the company's promoters sell around a 2.8% stake or nearly 3.6 million shares of the company in a block deal today.
Block deal done!!
— Yatin Mota (@YatinMota) June 1, 2022
Bata block done at Rs 1860 per share in block window on bse@AshVerma111@virendraonNiftyhttps://t.co/yu0ALemSOs- Swan Energy’s loss narrows to Rs 41.5 crore in Q4FY22 compared to a loss of Rs 59.2 crore in Q4FY21. However, revenue rises nearly 3X YoY to Rs 312.1 crore on the back of revenue from the construction segment rising 6X YoY to Rs 223.9 crore. EBITDA margin falls by 23.7 percentage points YoY to 10.5% as the cost of materials rises nearly 7X YoY to Rs 271.6 crore.
- Bajaj Auto's total May wholesales rise marginally by 1% YoY to 2.75 lakh units as total domestic wholesales rise 85% YoY to 1.12 lakh units and total exports fall by 22% to 1.63 lakh units. Two-wheeler wholesales rise 4% YoY to 2.49 lakh units and commercial vehicle wholesales (majority three-wheelers) fall 16% YoY to 26,369 units.
- Centre to cut revenue expenditure in FY22 to compensate for higher subsidy burden:
The centre will make every effort to cut revenue expenditure to compensate for the impact of over Rs 1.5 trillion on account of measures announced to rein in #inflation, Finance Secretary #TVSomanathan told @bsindia. @Shrimichoudhary#IndianEconomyhttps://t.co/u98UUSyuHI
— Business Standard (@bsindia) June 1, 2022 eMudhra shares list at a 5.5% premium to the issue price of Rs 256 on its debut on the bourses. The Rs 412.7-crore IPO was subscribed for 2.7X of the total shares on offer.
Escorts’ total wholesales rise 32.6% YoY to 8,726 units in May on improving rural demand. Tractor wholesales rise 31.1% YoY to 8,421 units led by domestic tractor sales rising 24.5% YoY to 7,667 units. Exports rise 184.5% YoY to 754 units. Construction equipment wholesales rise 96.8% YoY to 305 units.
India's GDP growth in Q4FY22 slows to 4.1% vs 1.6% in Q4FY21 on global supply chain issues and high inflation. For FY22 as a whole, GDP grows 8.7% vs a contraction of 6.6% in FY21.
Bharat Dynamics signs a contract worth Rs 2,971 crore with the Ministry of Defence. The company will build an Astra Mark-1 beyond visual range air-to-air missile and associated equipments for the Indian Air Force and the Navy.
Riding High:
Largecap and midcap gainers today include Torrent Power Ltd. (479.25, 5.09%), 3M India Ltd. (21213.80, 5.05%) and ICICI Prudential Life Insurance Company Ltd. (547.90, 5.04%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (307.10, -5.00%), Adani Transmission Ltd. (1,957.90, -4.73%) and Syngene International Ltd. (546.90, -4.47%).
Volume Rockets
15 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Timken India Ltd. (2,672.30, 17.20%), RHI Magnesita India Ltd. (595.15, 10.90%) and Happiest Minds Technologies Ltd. (991.10, 9.50%).
General Insurance Corporation of India (124.25, 3.97%) was trading at 7.1 times of weekly average. Chalet Hotels Ltd. (316.45, 6.53%) and Elgi Equipments Ltd. (377.00, 9.48%) were trading with volumes 6.5 and 5.8 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, while 2 stocks tanked below their 52-week lows.
Stocks touching their year highs included - Blue Dart Express Ltd. (7,666.95, 2.36%), GHCL Ltd. (663.20, 2.39%) and Mahindra & Mahindra Ltd. (1,047.35, 1.26%).
Stocks making new 52 weeks lows included - Ipca Laboratories Ltd. (889.25, -1.48%) and Hikal Ltd. (318.50, -3.62%).
18 stocks climbed above their 200 day SMA including Suzlon Energy Ltd. (9.40, 9.94%) and APL Apollo Tubes Ltd. (985.30, 5.13%). 12 stocks slipped below their 200 SMA including Adani Transmission Ltd. (1,957.90, -4.73%) and Britannia Industries Ltd. (3,551.30, -2.65%).