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The Baseline
27 Oct 2023
Chart of the week: India’s Nifty500 outperforms global indices in the past quarter despite recent weakness
By Abdullah Shah

2023 started off on a strong note for global equities, as inflation moderated and investors looked forward to a pause in interest rates globally. Indian indices followed the global trend, and sector indices like the Nifty Auto, Nifty Bank and Nifty PSU Bank hit their all-time highs. 

However, the uptrend in global equities quickly turned sour as inflation proved to be pretty sticky. The recent fighting between Israel and Hamas in the Middle East is also spooking markets, as analysts worry that US, Iran and other countries will get pulled into the conflict. Central banks around the world have continued with their hawkish stance, and have suggested holding interest rates higher for a longer period. The Indian indices started falling in the past month as foreign investors began a sell-off in indian equities. This fall came after indices hit record highs in September. 

The unpredictable global environment has in recent weeks, triggered a global sell-off across indices as people hunt for less risky options like bonds. This has put world indices under pressure.

The Nifty 500 index has hung on to some of its early gains - it’s up by 8% in 2023 overall, as of October 25. However, it has lost 0.8% in the past three months. Despite the marginal fall, and journalists announcing that it’s dark days on Dalal Street, the Nifty 500 has still outperformed most global indices over the past quarter. The index also outperformed the US Tech 100 (Nasdaq 100) and S&P 500 in 2022. However, over the past two months, foreign investors have offloaded equities worth Rs 25,960.9 crore, causing Indian indices to fall.

The US’s US Tech 100 and S&P 500 indices have risen the most by 33.9% and 10% respectively in 2023. However, these indices have fallen by 8.1% and 6.3% over the past quarter. It is important to note that US indices fell significantly in 2022. The tech-heavy Nasdaq 100 fell 32.7% while the S&P 500 lost 18.1%. 

With inflation remaining sticky, US indices are facing worries of a recession, even as the US economy delivered a strong quarterly performance. The banking crisis and the worsening situation in the Middle East have added to its woes. US Tech 100 suffered its worst month of 2023 in September as it fell 5.1% due to fears of the interest rates rising or staying higher for a longer period of time.  

Japan's Nikkie 225 index has the second highest rise of 21.6% in 2023. This rise helped the index to touch its all-time high of 33,772.9 on June 20. However, it has fallen 3.8% in the last three months. This fall can be attributed to the sticky inflation in the country and the Bank of Japan’s refusal to raise interest rates, citing domestic and global uncertainties. 

England’s FTSE 100 is down 1.8% and 2.1% in 2023 and the recent quarter, respectively. The country is facing a persistent rise in inflation and weakening consumer sentiment. Its retail sales have fallen in September after a marginal rise in August. 

China’s Shanghai Composite index has fallen 4.3% over the last year and 5.9% in the past quarter. The country is facing a property crisis as its largest private sector developer, Country Garden, faces a default on payment of a foreign bond. The realtor has international debts aggregating at $11 billion while it has liabilities worth Rs 200 billion. 

The Hang Seng from Hong Kong has fallen the most (both YTD and quarter) among the major global indices. It has fallen by 14.8% in 2023 while it declined by 9.3% over the past quarter. The index is facing a sell-off after foreign investors divest their stakes in the Chinese market.

Other notable indices are the DAX (Germany), Taiwan Weighted (Taiwan) and S&P ASX 200 (Australia). The DAX and Taiwan Weighted rose by 5.3% and 15% respectively in 2023. However, they declined by 7.8% and 4.2% respectively over the last three months. 

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The Baseline
27 Oct 2023
Five Interesting Stocks Today

1. Amber Enterprises India:

This consumer electronics company closed 6.5% higher in intraday trade on Wednesday. This uptrend was led by its revenue increasing by 23.5% YoY and EBITDA margin expanding by 154 bps YoY due to lower input costs. This rise comes despite its net loss widening by 130% YoY to Rs 6.9 crore in Q2FY24. It also missed Trendlyne Forecaster’s net loss estimates of Rs 3.2 crore. The firm’s bottom line was impacted by higher finance costs and depreciation expenses, which rose by 49.3% and 42.2% YoY, respectively. The stock shows up in a screener for companies with cash flows from operations improving over the past two years.

Also, the street’s expectation of healthy growth from H2FY24 onwards pushed up the stock’s prices. According to reports, several analysts retained their ratings, while some raised the target price of the consumer electronics manufacturer. For instance, Jefferies India kept its ‘Buy’ rating on the company and raised its target price to Rs 3,990, implying an upside of 37.2% from the closing price on Friday. The brokerage expects the firm’s sales in the electronics and mobility divisions to double over the next two years.

The management’s focus is on increasing revenue contribution from the non-room air conditioners (non-RAC) segments, such as the electronics and mobility segments. Jasbir Singh, the CEO of Amber Enterprises said, “We've guided that the electronics division and the mobility division, which is the railway subsystem division, are likely to double their revenues in the next two years”. He expects this growth to be driven by new client additions, new product launches and rising order books. 

The firm expects its overall margins to improve as commodity costs have started to normalize. It plans to reduce its net debt to Rs 650-680 crore by the end of FY24, from its current levels of Rs 960 crore in Q2FY24.

2. CreditAccess Grameen

This financial services stock has outperformed the Nifty Financial Services index by 21.5% in the past month. The stock rose 18.1% in the past month according to Trendlyne’s Technical. The stock is trading at a 52-week high. 

In Q2FY24, the firm's AUM grew by 36% YoY to 22,438 crores. The disbursements in the quarter grew by 13.5% YoY to Rs 4,966 crore. The growth in AUM was led by the new customer addition and higher ticket size. The NIM of the bank is one of the highest among its peers at 13.1%. However, the margins are expected to compress owing to an increased cost of funds and limited scope to raise interest rates. The bottom line was also aided by lower provisioning. The gross NPA remains at 0.8% backed by high-rated customers. 

The bank is also rapidly expanding and investing in newer product lines like loan against property (LAP), two-wheeler loans, and housing loans. This stock shows up in a screener for companies with consistently high return stocks for five years in the Nifty 500.

In its future outlook, CreditAccess Grameen Managing Director, Udaya Kumar Hebbar has indicated that “CreditAccess Grameen will focus on geographical expansion along with building a non-micro finance (MFI) loan book. The AUM growth is expected to be at 24-25% and NIMs at 12.7% for FY24. Most of the growth would be from newly launched non-MFI verticals and geographical expansion”.

According to Axis Securities, healthy NIMs and a strong rural presence will help in maintaining the MFI loan book, while expansion into the retail side will be an added advantage. Also, the lower NPAs will result in lower credit costs. The brokerage has maintained a ‘Buy’ rating on the stock.

3. BSE

This stock exchange company hit an all-time high of Rs 1,912.8 on Friday and grew 20.8% in the past week. The rise comes after the company announced a hike in transaction costs for equity derivatives, effective November 1. Under the new transaction fee structure Rs 500 per crore will be charged for transactions with a turnover of less than Rs 3 crore. Whereas Rs 3,750 per crore will be charged for transactions with a turnover between Rs 3-100 crore. Rs 3,500 per crore for transactions with a turnover between Rs 100-750 crore, going up to Rs 2,000 per crore for transactions above Rs 2,000 crore.

BSE’s derivatives market share has also grown to 7.4% by September 2023 from 0% in April 2023. Its average daily trading volume in options, which were non-existent between January-May 2023, has risen above Rs 26 lakh crore in September 2023. The Sensex contract is currently catering to 40% of the NSE’s derivatives volume but with the launch of the Bankex contract, BSE will address 95% of NSE’s derivative volume. The launch of Bankex (Monday expiry) will cater to a larger addressable volume and there is a possibility of further gain in market share. The company’s premium market share is 3.3%, which is also expected to rise further with the launch of new contracts and trading on non-expiry days.

In Q1FY24, the company reported a 10x YoY growth in the net profit to Rs 442.7 crore (beating Trendlyne Forecaster's estimate by 94%) while its revenue grew by 37.2% YoY. The company also features in screener for stocks with increasing profits every quarter for the past three quarters. BSE will tentatively announce its Q2FY24 results on November 10.

ICICI Securities downgraded from 'Buy' to 'Add’ on BSE due to higher current valuation but maintains a positive outlook on the back of stellar growth in Q2FY24 and improved pricing. The brokerage expects the company to witness traction in new products like Bankex and expects large brokerages to add BSE product offerings in H2FY24.

4. Tanla Platforms:

This internet & software services stock rose 4% on October 20 as its net profit grew by 5.3% QoQ to Rs 142.5 crore in Q2FY24. Due to this, the company appears in a screener of stocks with increasing profit for the past four quarters.

The company provides services like application-to-person messaging (A2P), WhatsApp, email and chatbots for broadcasting. In Q2FY24, Tanla Platform’s revenue increased by 10.7% QoQ to Rs 1,008.6 crore. This helped the company to beat Trendlyne’s Forecaster estimates for net profit and revenue by 17.9% and 3.3% respectively. However, its EBITDA margin declined by 40 bps QoQ due to increase in cost of services, employee benefits and finance costs.

Revenue rose on the back of improvement in revenue from the digital platforms and enterprise communications segments and also the acquisition of ValueFirst India. The enterprise communications segment (SMS and WhatsApp broadcasts), which contributes to 90% of total revenue, rose by 8.4% QoQ owing to an improvement in revenue from WhatsApp, UPI, OTP SMS broadcast and a hike in National Long Distance Connection (NLD) rates. 

Uday Kumar Reddy, Founder and CEO of the company commented, “We expect to complete the ValueFirst overseas acquisition in Q3 subject to regulatory approvals in local geographies which would add around Rs 60-70 crore to the revenue on a quarterly basis.”

Post results, HDFC Securities maintained its ‘Buy’ rating on the stock with a target price of Rs 1,440 per share. This implies a potential upside of 47%. The brokerage expects its volumes to improve, driven by growth in transactional SMS traffic, NLD price hikes and market share gains with ValueFirst acquisition. It expects the company’s revenue to grow at a CAGR of 16.1% over FY23-26.

5. Jubilant Foodworks

This restaurant major has fallen over 4.5% in the past two consecutive sessions, from Thursday. This comes after it reported a fall in its Q2FY24 net profit, down 26.1% YoY to Rs 97.2 crore. This was due to factors including higher finance costs and employee benefit expenses, as well as muted demand and heightened competition. However, its revenue rose by 4.9% YoY to Rs 1,368.6 crore, in line with Trendlyne’s Forecaster estimates, led by Domino’s delivery channel sales. As a result of the revenue rise, it features in a screener of companies with increasing revenue every quarter for the past two quarters.

During the quarter, Domino’s Pizza’s like-for-like or LFL sales growth (which is the YoY growth in sales for non-split restaurants opened before the previous financial year) contracted by 1.3% YoY, therefore, remaining in the negative territory for three consecutive quarters. However, the LFL ADS (average daily sales per store) for matured stores grew 1.4% QoQ. Domino’s Pizza's ‘Cheesy Rewards’ continue to gain traction, with its membership base reaching around 2 crore (up 16% QoQ). Initiatives like 20-minute delivery and discounts on combo offers by the company are expected to aid in improving its sales. 

Further, the company continued to expand its store network in Q2FY24, and opened 60 new outlets across various brands, taking the total to 1,949 stores in India. Sameer Khetarpal, the CEO and MD said, “We are on track to meet our guidance of opening 200- 225 Domino’s stores and 30-35 Popeyes stores for FY24”.

Post results, Prabhudas Lilladher maintains its ‘Hold’ rating on the restaurant major, with a target price of Rs 505. The brokerage expects an increase in demand led by the festival season and World Cup. It also has a positive outlook on the company considering its focus on long-term growth. 

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

Market closes higher, Cipla's Q2FY24 net profit jumps 44.9% YoY

Trendlyne Analysis

Nifty 50closed at 19,047.25 (190, 1.0%), BSE Sensexclosed at 63,782.80 (634.7, 1.0%) while the broader Nifty 500closed at 16,765.45 (210, 1.3%). Market breadth is surging up. Of the 1,947 stocks traded today, 1,616 were on the uptrend, and 293 went down.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50closing at 19,047. The volatility index, Nifty VIX, dropped by 7% and closed at 10.9 points. Cipla’s Q2FY24 net profit jumps 44.9% YoY to Rs 1,155 crore due to a fall in inventory expenses, while its revenue increased by 14.6% YoY.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. All major sectoral indices closed lower than Monday’s closing levels. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day, with a rise of over 3.7%.

Most European indices trade in the green except for France’s CAC 40 trading lower. US indices futures trade higher, indicating a positive start. Intel shares rose 8% pre-market on the back of strong profit guidance for Q4 from management. The guidance included a 33% increase in net profit from previous estimates due to demand uptick in personal computers. Crude prices rose by 1% as the US launched airstrikes on Syria.

  • Relative strength index (RSI) indicates that stocks like BSE, Angel One, Prestige Estates Projects and CreditAccess Grameen are in the overbought zone.

  • Indian Hotels Co is falling despite its Q2FY24 net profit rising 37.3% YoY to Rs 166.9 crore, while its EBITDA margin expands by 180 bps YoY to 27.2%. Its revenue increases by 16.3% YoY driven by higher room rates and healthy occupancy rates.

  • Axis Direct keeps its ‘Buy’ rating on Welspun India and raises the target price to Rs 160 from Rs 125, implying an upside of 11.8%. The brokerage is positive about the firm’s prospects on the back of improving demand, moderating commodity costs and inventory pressures subsiding. It expects the company’s revenue to grow at a CAGR of 17.4% over FY23-25.

  • Cipla rises as its Q2FY24 net profit jumps 44.9% YoY to Rs 1,155.4 crore due to a fall in inventory expenses, while its revenue increased by 14.6% YoY. The stock shows up in a screener for companies that are effectively using their capital to generate profit.

  • The Reserve Bank of India (RBI) raises the threshold limit for non-callable deposits from Rs 15 lakh to Rs 1 crore. This means that any domestic term deposits accepted from individuals for Rs 1 crore or less will be eligible for early withdrawal.

  • Happiest Minds Technologies sees four analyst target price downgrades and two recommendation downgrades in the past three months. Bata India, Tanla Platforms, Tech Mahindra and ICICI Bank see two analyst target price downgrades over the same time period.

  • Maruti Suzuki India is rising as its Q2FY24 net profit surges by 78.2% YoY to Rs 3,764.3 crore driven by lower commodity costs and cost reduction initiatives. Revenue grows by 23.8% YoY led by higher sales volumes and a healthy product mix. The company shows up in a screener for stocks in the PE Buy zone a high durability score and rising momentum score.

  • Blue Jet Healthcare's Rs 840.3 crore IPO gets bids for 7.9X the available 1.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.2X the available 85 lakh shares on offer.

  • CLSA maintains its 'Outperform' rating on Shriram Finance with a target price of Rs 2,050. The brokerage highlights that the company's loan growth momentum has been healthy during the quarter. It anticipates the firm to deliver healthy AUM growth in H2FY24.

  • ZF Commercial Vehicle Control Systems is rising as its net profit grows by 54% YoY to Rs 105.7 crore in Q2FY24. Revenue expands by 25.1% YoY to Rs 991.7 crore. It appears in a screener of stocks with improving return on capital employed (RoCE) over the past two years.

  • Power stocks like Adani Power, Adani Green Energy, CG Power and Industrial Solutions, Adani Energy Solutions and NHPC are rising in trade. All the constituents of the broader sectoral index, BSE Power, are trading in the green.

  • Karnataka Bankis rising after its board approves the allotment of 3.3 crore shares, on a preferential basis, amounting to Rs 800 crore. The company will allot the shares to HDFC Life Insurance Co, Bajaj Allianz General Insurance, and Quant Mutual Fund, among others.

  • Reports suggest that, 10 lakh shares (0.01% equity), of HDFC Bank, amounting to Rs 147.1 crore, change hands in a large trade.

  • Foreign institutional investors have withdrawn Rs 1,813.7 crore from the equity market in the past week, according to Trendlyne's FII dashboard. Meanwhile, there has been a significant outflow of Rs 24,117.8 crore from index options by foreign investors.

  • ACC reports a net profit of Rs 387.8 crore in Q2FY24 compared to a loss of Rs 87.3 crore in Q2FY23. Revenue grows by 11.2% YoY on the back of improvement in clinker and cement sales. It features in a screener of stocks with declining net cash flow.

  • Axis Bank appoints Munish Sharda as Whole-time Director, designated as Executive Director of the Bank, effective from November 1, 2023.

  • JPMorgan upgrades its rating on India equities to "Overweight" from "Neutral." According to the broker, India has the best emerging market (EM) nominal GDP compounding, driven by demographic trends and infrastructure investment needs. Additionally, India offers competitive risk-adjusted returns compared to developed market (DM) equities. SunPharmaceuticals Industries, Bank of Baroda, and Hindustan Unilever have been added to its EM model portfolio.
  • Colgate-Palmolive (India) is falling despite its Q2FY24 net profit rising by 22.3% YoY to Rs 340.1 crore led by cost efficiencies and lower raw material costs. Its revenue grows 6% YoY to Rs 1,471.1 crore driven by price hikes. However, the firm’s sales volume remains flat in Q2. The stock shows up in a screener for companies with zero promoter pledges.

  • Suzlon Energy rises more than 3% as it bags an order from Juniper Green Energy to set up a wind power project with a capacity of 50.4 MW. The order is to install 16 wind turbines with generators with a capacity of 3.1 MW and is expected to be completed in 2025.

  • Westlife Foodworld is falling as its Q2FY24 net profit falls 31.6% YoY to Rs 21.9 crore despite revenue rising 7.4% YoY. Profit falls due to increase in occupancy and operating expenses. The company features on a screener for stocks with low debt.

  • Sanjay Sethi, CEO & MD of Chalet Hotels, notes that in Q2, the company witnessed a significant increase in margins and revenue, with revenue per available room (RevPAR) rising by 24% YoY. He anticipates that their Q3 results will outperform those of the previous quarter, and he expects annual recurring revenue (ARR) in larger cities to increase by double digits.

  • Media stocks like Zee Entertainment Enterprises, Saregama India, Dish TV India, TV18 Broadcast and PVR INOX are rising in trade. The broader sectoral index, Nifty Media, is also trading in the green.

  • PSU bank stocks like Bank of India, Canara Bank, Union Bank of Indiaand Punjab National Bankrise more than 3% in trade. All constituents of the broader Nifty PSU Bankindex are also trading in the green.

  • Vodafone Idearises despite its net loss expanding by 15% YoY to Rs 8,737.9 crore in Q2FY24. Revenue increases by 1% YoY aided by an improvement in average revenue per unit (ARPU) and growth in 4G subscriber base. It shows up in a screener of stocks with high interest payments compared to earnings.

  • Dixon Technologies is rising as its net profit surges by 38.9% YoY to Rs 107.3 crore in Q2FY24. Revenue jumps by 27.8% YoY while its EBITDA margin expands by 27 bps YoY to 4%. It features in a screener of stocks with improving cash flow from operations in the last two years.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (354.15, 8.19%), Shriram Finance Ltd. (1,935.20, 7.65%) and Bank of India (96.80, 7.26%).

Downers:

Largecap and midcap losers today include Indraprastha Gas Ltd. (382.20, -1.20%), ACC Ltd. (1,878.00, -1.15%) and Crompton Greaves Consumer Electricals Ltd. (284.80, -0.99%).

Volume Rockets

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

Top high volume gainers on BSE included Jubilant Pharmova Ltd. (397.25, 16.94%), Swan Energy Ltd. (369.20, 12.20%) and Shriram Finance Ltd. (1,935.20, 7.65%).

Top high volume losers on BSE were Sterlite Technologies Ltd. (135.90, -9.25%), Westlife Foodworld Ltd. (820.25, -7.09%) and Carborundum Universal Ltd. (1,085.95, -1.99%).

Blue Dart Express Ltd. (6,376.40, -1.14%) was trading at 5.8 times of weekly average. Torrent Power Ltd. (719.00, -0.79%) and Jubilant Ingrevia Ltd. (434.40, 1.34%) were trading with volumes 4.7 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks made 52 week highs, while 5 stocks hit their 52 week lows.

Stocks touching their year highs included - Canara Bank (380.80, 5.97%), Maruti Suzuki India Ltd. (10,560.70, 1.31%) and Persistent Systems Ltd. (6,083.75, 3.70%).

Stocks making new 52 weeks lows included - Atul Ltd. (6,249.10, 0.15%) and Indraprastha Gas Ltd. (382.20, -1.20%).

33 stocks climbed above their 200 day SMA including Jubilant Pharmova Ltd. (397.25, 16.94%) and Kajaria Ceramics Ltd. (1,290.00, 5.70%). 9 stocks slipped below their 200 SMA including Sapphire Foods India Ltd. (1,291.40, -4.26%) and Carborundum Universal Ltd. (1,085.95, -1.99%).

Market closes lower, Asian Paints' revenue remains flat YoY at Rs 8,451.9 crore in Q2FY24

Trendlyne Analysis

Nifty 50 closed at 18,857.25 (-264.9, -1.4%) , BSE Sensex closed at 63,148.15 (-900.9, -1.4%) while the broader Nifty 500 closed at 16,555.45 (-205.4, -1.2%), of the 1,965 stocks traded today, 814 were on the uptick, and 1,100 were down.

Indian indices closed in the red, with the benchmark Nifty 50 index falling 264.9 points and closing at 18,857.3 points. The Indian volatility index, Nifty VIX, rose 3.7% and closed at 11.7 points. Asian Paints closed 3.3% lower after its revenue remained flat YoY at Rs 8,451.9 crore in Q2FY24, missing the revenue Forecaster estimates by 5.9%.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, taking cues from the benchmark index. Nifty Auto and Nifty FMCG closed lower than their Wednesday close. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day as it rose 1.1% in a weak market.

Major Asian indices closed in the red, except for China’s Shanghai SE Composite Index closing in the green. European indices extended their losses from their open and traded lower. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures traded lower after closing 2.2% higher on Wednesday.

  • Kotak Mahindra Bank sees a short buildup in its October 26 future series as its open interest rises 35.9% with a put-call ratio of 0.6.

  • Asian Paints is falling as its revenue remains flat YoY at Rs 8,451.9 crore in Q2FY24. However, its net profit improves by 54% YoY to Rs 1,205.4 crore aided by reduction in cost of raw materials. It appears in a screener of stocks with high promoter pledges.

  • Jindal Saw rises as it's Q2FY24 net profit rises by 532.3% YoY to Rs 375.7 crore, while its revenue rises by 35.2% YoY due to robust performance in iron and steel segment. The stock shows up in a screener for companies with strong momentum.

  • Somany Ceramics' board of directors approve the proposal for the buyback of up to 14,70,588 shares(15.2% equity) of the company, for Rs 125 crore.

  • Apar Industries is falling as its net profit falls 11.9% QoQ to Rs 173.9 in Q2FY24, due to an increase in finance and material costs. Meanwhile, its revenue rises by 4.1% QoQ to Rs 3,894 crore. The company features in a screener of companies where mutual funds decreased their shareholding last quarter.

  • Blue Jet Healthcare's Rs 840.3 crore IPO gets bids for 1.1X the available 1.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.2X the available 85 lakh shares on offer.

  • Indus Towersfalls despite its net profit rising by 48.5% YoY to Rs 1,294.7 crore in Q2FY24 aided by reduction in allowance for doubtful receivables. Revenue declines by 10.5% YoY to Rs 7,132.5 crore. It features in a screenerof stocks with declining net cash flow.

  • KRChoksey downgrades its rating on Hindustan Unileverto ‘Add’ from ‘Buy’ and reduces its target price to Rs 2,778 from Rs 3,109. This implies an upside of 12.1%. The brokerage cites the headwinds of slow rural recovery and stiff competition faced by the firm for changing its recommendation. It expects the company’s revenue to grow at a CAGR of 8.4% over FY23-25.

  • Zomato is falling as 42.4 lakh shares (0.05% equity) of the company, amounting to Rs 43.5 crore change hands, according to reports.

  • Chalet Hotelsis falling despite its Q2FY24 net profit surging by 131.6% YoY to Rs 36.4 crore and EBITDA margin expanding by 5.7 percentage points YoY. Its revenue rises 26.9% YoY, driven by healthy growth in the hospitality segment. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

  • J B Chemicals and Pharmaceuticalsdeclines over 3% after the Maharashtra GST department commences an inspection at the company’s registered and corporate offices from October 25.

  • Healthcare stocks like Max Healthcare Institute, Metropolis Healthcare, Torrent Pharmaceuticalsand Bioconare falling in trade. All constituents of the broader Nifty Healthcareindex are trading in the red.

  • Steel consumption increases by 15% to 64 million tons in H1FY24, according to data from the steel ministry. Steel consumption is expected to grow to 130-132 MT in FY24. The steel sector's consumption-led expansion has been matched by an equally strong output performance.

  • Axis Bank is rising as its net profit grows by 10% YoY to Rs 5,863.6 crore in Q2FY24. Revenue improves by 31.6% YoY aided by increase in revenue from the treasury, corporate and retail banking segments. The bank's asset quality improves as its gross and net NPAs decline by 77 bps and 15 bps YoY, respectively. It appears in a screener of stocks with increasing revenue for the last eight quarters.

  • Antony Waste Handling Cell rises at it wins door-to-door collection and transportation project for municipal solid waste from Panvel Municipal Corp worth Rs 386 crore.

  • Sonata Software is rising as its Q2FY24 net profit rises by 3.4% QoQ to Rs 124.2 crore, driven by lower inventory costs. However, its revenue declines by 5.1% QoQ led by weakness in its Indian operations. The stock shows up in a screener for companies in which mutual funds have increased their shareholding over the past month.

  • Dipali Goenka, MD and CEO of Welspun Living (formerly Welspun India) says the company remains cautiously optimistic amid concerns of global turmoil and war. The company sets a sales growth guidance of 10-12%. Goenka expects a recovery in the domestic retail segment in H2. She adds that the company can reduce its debt below Rs 1,000 crore by the end of FY24.

  • IRM Energy shares debut on the bourses at a 5.5% discount to the issue price of Rs 505. The Rs 545.4 crore IPO has received bids for 27.1 times the total shares on offer.

  • Capri Global Holdings sells a 0.5% stake in Indiabulls Housing Finance for approx Rs 40 crore in a bulk deal on Wednesday.

  • Jefferies maintains its 'Buy' rating on Sona BLW Precision Forgings with a target price of Rs 700. The brokerage says the company has experienced a strong Q2, with EBITDA and profit above forecasts by 7-13%. Jefferies believes that the company has expanded its scope to embrace emerging mobility trends and has added various components spanning differentials, such as motors and sensors, to its roadmap.

  • Macrotech Developers is falling as it sells its entire stake in the arm Palava Induslogic 3 to NewCold India Holding for Rs 153.7 crore.

  • Realty stocks like Macrotech Developers, Sobha, Prestige Estates Projects, Phoenix Mills and Brigade Enterprises are falling in trade. The broader sectoral index, Nifty Realty, is also trading in the red.

  • Zen Technologies secures an order worth Rs 100 crore from the Ministry of Defence, India. The contract involves the supply of an advanced tank training system. The stock shows up in a screener for companies with low debt.

  • Tech Mahindra’s net profit for Q2FY24 falls by 28.7% QoQ to Rs 493.9 crore due to increased employee expenses. Its EBIT margin declined by 322 bps QoQ to 3.6%. Its revenue fell by 2.2% QoQ on the back of weakness in the banking and communications, media and entertainment business verticals.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (390.90, 6.74%), Sona BLW Precision Forgings Ltd. (546.15, 6.51%) and Adani Power Ltd. (327.35, 4.69%).

Downers:

Largecap and midcap losers today include Supreme Industries Ltd. (4,177.50, -4.80%), Berger Paints (India) Ltd. (537.75, -4.52%) and One97 Communications Ltd. (875.95, -4.42%).

Movers and Shakers

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

Top high volume gainers on BSE included Prism Johnson Ltd. (135.60, 12.02%), Sonata Software Ltd. (1,135.25, 8.23%) and Sona BLW Precision Forgings Ltd. (546.15, 6.51%).

Top high volume losers on BSE were SIS Ltd. (410.00, -5.21%), Berger Paints (India) Ltd. (537.75, -4.52%) and Jubilant Foodworks Ltd. (506.05, -4.36%).

Rallis India Ltd. (216.70, 4.91%) was trading at 11.8 times of weekly average. Zydus Wellness Ltd. (1,518.00, 0.89%) and Lakshmi Machine Works Ltd. (13,201.10, -4.24%) were trading with volumes 7.3 and 6.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52 week highs, while 18 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Prestige Estates Projects Ltd. (784.35, 3.50%) and Sonata Software Ltd. (1,135.25, 8.23%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (289.05, -1.53%) and Atul Ltd. (6,239.95, -1.59%).

8 stocks climbed above their 200 day SMA including Rallis India Ltd. (216.70, 4.91%) and Aarti Drugs Ltd. (478.25, 3.49%). 47 stocks slipped below their 200 SMA including SIS Ltd. (410.00, -5.21%) and Au Small Finance Bank Ltd. (686.55, -2.79%).

Market closes lower, Gensol Engineering bags an order worth Rs 301.5 crore

Trendlyne Analysis

Nifty 50closed at 19,122.15 (-159.6, -0.8%), BSE Sensexclosed at 64,049.06 (-522.8, -0.8%) while the broader Nifty 500closed at 16,760.80 (-127.9, -0.8%). Market breadth is moving down. Of the 1,972 stocks traded today, 590 were gainers and 1,349 were losers.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50closing at 19,122. The volatility index, Nifty VIX, rose by 3.7% and closed at 11.3 points. Torrent Pharma’s Q2FY24 net profit increased by 23.7% YoY to Rs 386 crore and revenue rose 16.1% YoY to Rs 2,660 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. All major sectoral indices closed lower than Monday’s closing levels. According to Trendlyne’s sector dashboard, healthcare equipment & suppliesemerged as the top-performing sector of the day, with a rise of over 1.6%.

Most European indices trade in the red except for England’s FTSE 100 trading higher. US indices futures trade lower, indicating a negative start. Crude prices fell by 2% on Tuesday as weak economic data from the Eurozone suggested that the important oil-consuming region is heading towards recession, leading to lower crude oil consumption.

  • Money flow index (MFI) indicates that stocks like Prestige Estates Projects, BSE, Bombay Burmah Trading Corp and CreditAccess Grameen are in the overbought zone.

  • Delta Corp is rising as the Goa bench of the Bombay High Court directs the Directorate General of GST Intelligence, Hyderabad, to refrain from issuing orders related to the alleged tax notice of Rs 16,194 crore against the company without prior permission from the court.

  • Jubilant Pharmova plunges more than 7% in trade, causing it to fall 31.7% below its 52-week high. It has a 'Hold' consensus by brokers tracking the stock. The company also has a broker average target price upside of 23.5%. It appears in a screener of stocks with declining return on equity (RoE) over the past two years.

  • CLSA maintains its 'Buy' rating on Amber Enterprises India with a target price of Rs 3,650. Despite modest margins in Q2, the brokerage is optimistic about the company's future prospects. It adds that the company's medium-term growth guidance for non-RAC segments remains robust. According to the brokerage, the company's capacity to scale up fresh segments will be essential for re-rating.

  • HDFC Securities upgrades its rating on Kajaria Ceramics to ‘Buy’ from ‘Add’ and raises the target price to Rs 1,470 from Rs 1,310. This implies an upside of 21.6%. The brokerage expects the company’s volumes to improve from H2FY24 onwards and sees profitability rising on the back of its cost-saving initiatives.

  • Dreamfolks Services rises as it's Q2FY24 net profit increases by 19.2% YoY to Rs 17.7 crore due to a fall in finance costs. Its revenue also surges by 65% YoY. The stock shows up in a screener for companies with low debt.

  • Welspun India reports a net profit of Rs 196.7 crore, up over 22X YoY in Q2FY24. Meanwhile, its revenue grew 18.7% YoY to Rs 2,509.1 crore, aided by its home textiles and flooring segments. It features in a screener of companies with increasing profits every quarter for the past three quarters.

  • According to reports, 97.3 lakh shares (1.03% equity) of Aditya Birla Fashion and Retail, amounting to around Rs 206.8 crore, change hands in a large trade.

  • Torrent Pharma is rising as its Q2FY24 net profit increases by 23.7% YoY to Rs 386 crore and revenue rises 16.1% YoY to Rs 2,660 crore. This comes on the back of robust growth in the chronic therapies segment, revival in gastro demand and healthy demand in the consumer division. The stock shows up in a screenerfor companies with zero promoter pledges.

  • Blue Jet Healthcare's Rs 840.3 crore IPO gets bids for 0.7X the available 1.7 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.8X the available 85 lakh shares on offer.

  • Network18 Media & Investmentis falling as its net loss expands by 67.1% YoY to Rs 61 crore in Q2FY24 due to higher expenses for raw material, marketing, employee benefits, and finance. However, revenue grows by 20.4% YoY, aided by better performance from Viacom18, JioCinema and TV18 News. It appears in a screenerof stocks with declining cash flow from operations over the past two years.

  • Power Mech Projectsis falling despite its board of directors approving the issue and allotment of 9 lakh shares through a qualified institutional placement. The company plans to set an issue price of Rs 3,881.2 per share, aggregating to a total of Rs 350 crore.

  • Ashok Kajaria, the CMD of Kajaria Ceramics, says the company’s volumes are expected to grow by 13-15% in H2FY24, driven by healthy demand. He also anticipates an improvement in its margins in H2. He adds that Kajaria’s bathware segment’s revenue will be around Rs 400-415 crore in FY24.

  • Mahindra Logistics declines as its Q2FY24 net loss increases by 230.6% YoY to Rs 15.9 crore due to a rise in operating and employee benefit expenses. Despite a 3.1% YoY rise in revenue, the stock shows up in a screener for companies with declining profits every quarter for the past four quarters.

  • TV18 Broadcast is falling as it posts a net loss of Rs 28.9 crore in Q2FY24, as opposed to a net profit of Rs 5.7 crore in Q2FY23. This comes despite its revenue rising 21.8% YoY. Profitability is impacted by operational costs surging by 57.7% YoY. The stock shows up in a screener for companies with weak financials and low Piotroski scores.

  • HSBC downgrades its rating on Hindustan Unilever to 'Hold' and reduces the target price to Rs 2,700. The brokerage says that the company has been a 'market laggard' for five years now due to the unwinding of a big prior re-rating phase. It adds that the company's muted Q2 performance has further contributed to the weakness in its portfolio. It sees only a small upside potential for the company if markets become extremely risk-averse.

  • Gensol Engineering surges more than 8% as it bags an order worth Rs 301.5 crore from Maharashtra State Power Generation. The order is for the engineering, installation, testing and commissioning of a 62 MW AC crystalline solar PV power plant in Aloka, Maharashtra.

  • Metal & mining stocks like JSW Steel, Tata Steel, Hindalco Industries, Vedanta, Jindal Steel & Power, and NMDC are rising in trade. Barring APL Apollo Tubes, all the other constituents of the broader sectoral index, BSE Metal, are trading in the green.

  • Blue Jet Healthcare raises Rs 252 crore from anchor investors ahead of its IPO by allotting around 72.9 lakh shares at Rs 346 each. Investors include ICICI Prudential Mutual Fund, Bandhan Mutual Fund, HSBC Global, Societe Generale and BNP Paribas Arbitrage.

  • Baldev Prakash, CEO & MD of Jammu & Kashmir Bank, expects the bank's credit growth to be in the 15-18% range. He also anticipates the bank to keep a capital adequacy ratio of 16%. Prakash adds that J&K Bank's net NPA is 1%, a figure he expects to decrease in FY24. For Q2FY24, the bank reported a 60.1% YoY increase in net profit to Rs 383.8 crore, alongside a 20.9% YoY rise in revenue, primarily due to a strong performance in the corporate banking segment.

  • John Cockerill India is rising as it bags an order worth Rs 280 crore from The Tinplate Company of India to install a continuous annealing line at the client's plant in Jamshedpur.

  • Tridentrises as it appoints Vinod Kumar Goyal as the Chief Executive Officer for its yarn business, effective from October 23, 2023.

  • Franklin Templeton Mutual Fund sells a 0.6% stake in Amber Enterprises Indiafor approx Rs 56.4 crore in a bulk deal on Monday.

  • Lupinreceives US FDA approval for its abbreviated new drug application (ANDA) for fluconazole tablets. The drug is a generic equivalent to the reference listed drug (RLD), Diflucan, originally produced by Pfizer. According to IQVIA, the RLD has an estimated annual sales figure of $43 million.

  • PNB Housing Financefalls even as its Q2FY24 net profit surges 46.2% YoY to Rs 384.4 crore. Revenue rises by 5.6% YoY, aided by growth in AUM, loan book, and deposits. Asset quality also improves, with gross and net NPAs declining by 428 bps and 240 bps YoY, respectively. The stock appears in a screenerfor undervalued growth stocks.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (38.90, 4.71%), General Insurance Corporation of India (222.20, 2.99%) and Tata Elxsi Ltd. (7,545.25, 2.85%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (884.20, -4.18%), Adani Total Gas Ltd. (550.45, -3.96%) and Bajaj Holdings & Investment Ltd. (6,856.00, -3.42%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Welspun India Ltd. (142.20, 11.22%), Aster DM Healthcare Ltd. (356.90, 7.97%) and Amber Enterprises India Ltd. (2,975.25, 6.49%).

Top high volume losers on BSE were Jubilant Pharmova Ltd. (330.90, -7.70%), TeamLease Services Ltd. (2,429.40, -6.12%) and HEG Ltd. (1,537.90, -5.83%).

Indigo Paints Ltd. (1,393.00, -2.68%) was trading at 9.7 times of weekly average. Torrent Pharmaceuticals Ltd. (1,922.25, 2.39%) and Swan Energy Ltd. (310.25, 2.29%) were trading with volumes 6.3 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks overperformed with 52 week highs, while 13 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Balkrishna Industries Ltd. (2,592.85, 1.01%), Prestige Estates Projects Ltd. (757.85, 1.53%) and Welspun India Ltd. (142.20, 11.22%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (293.55, -3.33%) and Atul Ltd. (6,337.60, -0.84%).

18 stocks climbed above their 200 day SMA including Elgi Equipments Ltd. (484.70, 1.61%) and FSN E-Commerce Ventures Ltd. (140.45, 1.01%). 40 stocks slipped below their 200 SMA including Jubilant Pharmova Ltd. (330.90, -7.70%) and Triveni Turbine Ltd. (329.10, -4.93%).

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The Baseline
25 Oct 2023
Five analyst picks from the banking and finance sector
By Suhas Reddy

This week, we take a look at five stocks that analysts have picked from the banking and finance sector. 

1. IndusInd Bank:

BoB Capital Markets maintains its ‘Buy’ rating on this private bank with a target price of Rs 1,755. This implies an upside of 21.6%. In Q2FY24, the bank’s net profit grew 22.8% YoY to Rs 2,181.5 crore, and its revenue rose by 29.2% YoY. 

Analyst Ajit Agrawal attributes the bank’s growth to its robust credit growth trajectory, where vehicle finance, non-vehicle finance and microfinance (MFI) segments have outperformed. He notes that the company’s net interest margin (NIM) was stable due to the recovery of its high-yielding consumer finance division (CFD). 

Agrawal adds, “Strong growth momentum in retail and recovery in the MFI book led to stable margins, despite higher costs.” The analyst remains optimistic about the bank’s prospects due to its favourable loan mix and stable asset quality. He expects the company’s net profit to grow at a CAGR of 21.3% over FY23-25. 

2. ICICI Bank:

Edelweiss keeps its ‘Buy’ rating on this bank with a target price of Rs 1,195, implying an upside of 30.1%. In Q2FY24, its net profit grew by 35.8% YoY to Rs 10,261 crore, and its net interest income (NII) rose by 23.8% YoY. It beat Trendlyne Forecaster’s net profit estimates by 6.6%.

Analysts Raj Jha and Umang Patil attribute the bank’s growth in Q2 to a healthy rise in domestic loans. In terms of business segments, retail and business banking drove growth. The analysts also highlight improving asset quality, with declining slippages in the retail, rural and business banking segments. 

Jha and Patil believe the firm will continue to see healthy growth on the back of asset quality improvement and growing loans. They add, “A strong digital push, focus on risk-calibrated operating returns, and a strong balance sheet will result in a re-rating of the stock.” They expect the private bank’s net profit to grow at a CAGR of 17.9% over FY23-25. 

3. Can Fin Homes:

HDFC Securities reiterates its ‘Buy’ call on this housing finance company with a target price of Rs 920. This indicates an upside of 26.6%. In Q2FY24, the company’s profit increased by 11.6% YoY to Rs 158.1 crore, while its revenue grew by 32.5% YoY to Rs 871 crore. It beat Trendlyne Forecaster’s profit estimate by 2.3%. Analysts Krishnan ASV, Deepak Shinde and Neelam Bhatia say, "Delayed asset repricing and a mild softening in the funding environment have contributed to an improvement in NIMs, which now stand at 3.8%." 

According to the analysts, asset quality remains stable, with slippages from the restructured portfolio at 14%, which is marginally higher than the guided range. The management has reiterated its loan growth guidance of 18%, coupled with an acceleration in return disbursement. On account of a one-time provision, the analysts have slightly reduced their FY24 earnings estimates for the company by 4%.

4. ICICI Prudential Life Insurance:

KRChoksey reiterates its ‘Buy’ call on this life insurance company with a target price of Rs 625, indicating an upside of 20.2%. In Q2FY24, the company’s profit grew 21.9% YoY to Rs 243.9 crore, despite its revenue falling 22.3% YoY. It missed Trendlyne Forecaster’s profit estimate by 0.4% but beat the revenue estimate by 2.8%. 

Analyst Unnati Jadhav believes that the company’s VNB margin declined by 308 bps YoY primarily because of the shift in the underlying product mix towards unit-linked insurance and a decline in non-participating business.

The analyst remains optimistic about the insurance services provider as it has focused on expanding its non-ICICI Bank channels and expects it to reap results from H2FY24 onwards. Jadhav believes that a balanced product mix and improved productivity of the agency channel will drive premium growth in the coming quarters. She says, “We will closely monitor the trends in product mix and their impact on margins going ahead.”

5. IIFL Finance:

ICICI Securities maintains a ‘Buy’ call on this financial services provider with a target price of Rs 760. This indicates an upside of 22.7%. The company’s net profit grew by 25% YoY to Rs 474.3 crore in Q2FY24, while its revenue grew by 23.5% YoY. According to Trendlyne Forecaster, it missed the profit estimate by 2.1% YoY. Analyst Renish Bhuva says, “IIFL Finance’s healthy Q2FY24 financial performance reflects the successful execution of its retail-focused strategy.” 

Bhuva notes that controlled asset quality, sustained traction in assigned and co-lending volumes, and strong growth in higher-yielding products like MFI and digital loans led to growth in net profit. He remains optimistic about IIFL, as it has increased its physical presence by adding 184 branches in Q2FY23, taking its total branches to 4,596 in H1FY24. He believes that diversified AUM, investment in franchise development, and access to funds at competitive rates will help sustain its growth momentum. 

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

(You can find all analyst picks here)

Market closes lower, ICICI Securities downgrades Tata Communications to 'Hold' rating

Trendlyne Analysis

Nifty 50 closed at 192,81.75 (-260.9, -1.3%) , BSE Sensex closed at 64,571.88 (-825.7, -1.3%) while the broader Nifty 500 closed at 16,888.70 (-320.1, -1.9%), of the 2,011 stocks traded today, 134 were on the uptick, and 1,854 were down.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,282. The volatility index, Nifty VIX, rose by 0.8% and closed at 10.9 points. Kotak Mahindra Bank’s Q2FY24 net profit increased by 23.6% YoY to Rs 4,461 crore, while its revenue expanded by 23.1% YoY on the back of strong performance in the retail banking segment.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. All major sectoral indices closed lower than Friday’s closing levels. According to Trendlyne’s sector dashboard, telecommunications equipment emerged as the worst-performing sector of the day, with a drop of over 7.6%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. The rising tensions in the Middle East, along with surging US bond yields on higher rate expectations, have led to the decline in global indices.

  • Relative strength index (RSI) indicates that stocks like BSE, Angel One, Bajaj Auto and Multi Commodity Exchange of India are in the overbought zone.

  • Supriya Lifescience declines despite signing an agreement with Kalinga Institute of Technology to develop Quickblue, a novel oral cancer detection kit. The stock shows up in a screener for companies with inefficient use of shareholder funds.

  • Mahindra Holidays & Resorts India is falling as its Q2FY24 net profit declines by 47.8% YoY to Rs 21.3 crore due to higher employee expenses and finance costs. Its revenue rises 9.5% YoY to Rs 655.3 crore. The stock shows up in a screener for companies with declining net cash flows.

  • Hindustan Foods acquires a 100% stake in KNS Shoetech for a consideration of Rs 3.1 crore. This acquisition is part of the company's plans to invest Rs 100 crore to set up, acquire and invest in sports shoe manufacturing.

  • Aurobindo Pharma is rising as its subsidiary, Eugia Pharma Specialities, receives final approval from the US FDA to manufacture and market testosterone cypionate injection. The drug is equivalent to the reference listed drug (RLD), depo-testosterone injection, with estimated annual sales of $226.8 million, according to IQVIA.

  • PSU banks like Central Bank of India, Indian Overseas Bank, Bank of India, Bank of Maharashtra and UCO Bank are falling in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the red.

  • Laurus Labsfalls as its Q2FY24 net profit plummets 84.1% YoY to Rs 37 crore and revenue drops 22.2% YoY. According to Trendlyne Forecaster, the company missed its profit and revenue estimates by 65% and 10.2%, respectively. It appears in a screenerfor stocks with declining annual net profit for the past two years.

  • Kotak Mahindra Bankfalls even after RBI approves Ashok Vaswani as the new CEO & MD. Its Q2FY24 net profit surges 23.6% YoY to Rs 4,461 crore, and revenue rises 23.1% YoY, driven by a strong retail banking sector. The stock appears in a screenerfor companies with increasing revenue for the past eight consecutive quarters.

  • Telecom stocks like MTNL, OnMobile Global, ITI and RailTel Corp of Indiafall more than 7% in trade. All constituents of the broader S&P BSE Telecomindex are also trading in the red.

  • The shipping industry faces scrutiny from GST authorities over the nonpayment of integrated GST on ocean freight. Foreign shipping companies operating through branches in India are under investigation for evading taxes on costs allocated to head offices. The sector's estimated total tax burden ranges between Rs 2-2.5 lakh crore, according to experts.

  • ICICI Securities downgrades its rating on Tata Communicationsto ‘Hold’ from ‘Buy’ and lowers the target price to Rs 1,740 from Rs 1,850. This implies an upside of 6.3%. The brokerage cites the rise in core connectivity costs, near-term macroeconomic challenges and high valuations for lowering its rating on the stock. It expects the company’s revenue to grow at a CAGR of 10.6% over FY23-25.

  • Power Grid Corp of India'sboard of directors approves an investment of Rs 119.9 crore for its eastern region expansion scheme. The expansion is expected to be completed in Q1FY26.

  • Genus Power Infrastructuresis rising as it bags an order worth Rs 3,121.4 crore for the supply, installation and commissioning of 36.3 lakh smart meters. Jitendra Kumar Agarwal, Joint MD of the firm, says, “The recent influx of orders serves to fortify our position as the leading provider of intelligent metering solutions in the Indian market, reaffirming our industry dominance.”

  • Arun Misra, CEO of Hindustan Zinc, says that zinc prices will range between $2,400 and $2,600 per tonne. He adds that by 2025, they aim to operate at a capacity of 1.2mt, up from 1mt. The company expects their offer for sale (OFS) to be completed in FY24 and the cost of production (COP) to be lower in H2FY24, compared to H1FY24.

  • BSE rises more than 7% as it announces a hike in transaction costs for equity derivatives. The new rates start at Rs 500 per crore for premium values less than Rs 3 crore, and go up to Rs 2,000 per crore for premium values exceeding Rs 2,000 crore.

  • Ashish Kacholiatrims his stakes in Bharat Bijlee and Venus Pipes & Tubes to below 1% in Q2FY24. He held 1.5% and 2% in them respectively in Q1.

  • Sunil Singhania sells a 2% stake in Rajshree Polypack in Q2FY24. He now holds a 4.3% stake in the company.

  • The government plans to spend Rs 30,000 crore in expanding the Pradhan Mantri Fasal Bima Yojana (PMFBY) portal into a complete platform which will include assets other than crops, such as ponds, tractors, animals, and palm trees. The AIDE app will lead the programme to assure door-to-door enrollment, making crop insurance more accessible and convenient for farmers.

  • Rakesh Jhunjhunwala's portfolio buys a 0.6% stake in D B Realty in Q2FY24. It now holds a 2% stake in the company.

  • KFIN Technologies is rising as its net profit grows by 28.1% YoY to Rs 61.4 crore in Q2FY24. Revenue improves by 16% YoY on the back of an increase in assets under management (AUM) and transaction volume. It shows up in a screener of stocks transitioning from negative to positive growth in sales and net profit, along with strong price momentum.

  • JSW Energy rises as its Q2FY24 net profit rises by 82.6% YoY to Rs 850.2 crore due to a decline in fuel cost. Its revenue also increases by 30.5% YoY. The stock shows up in a screener for companies with increasing revenue for the past three quarters.

  • CLSA maintains a "Buy" rating on One97 Communications (Paytm) and raises the target price to Rs 1,200. The brokerage notes strong growth in the company's gross merchandise value (GMV), leading it to revise EBITDA predictions to 12-13%. The company is also innovating with new sound box variations. Additionally, the brokerage highlights that Paytm has a new partner and that the take rate remains steady.

  • CreditAccess Grameenis rising as its Q2FY24 net profit jumps 120% YoY to Rs 349.2 crore, while its revenue surges by 85.7% YoY. The company’s net interest income grows 49.6% YoY, driven by robust loan growth. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Media stocks like Network18 Media & Investments, Hathway Cable & Datacom, DB Corp, TV18 Broadcast and Nazara Technologies are falling in trade. All the constituents of the broader sectoral index, Nifty Media, are also trading in the red.

  • One97 Communications rises to its 52-week high of Rs 998.3 per share as its net loss contracts by 49.1% YoY to Rs 290.5 crore in Q2FY24. Revenue grows by 31.6% YoY, aided by an increase in the payment & financial and cloud services segments. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • ICICI Bank’s Q2FY24 net profit rises by 35.8% YoY to Rs 10,261 crore, while its net interest margin expands by 22 bps YoY to 4.5%. The bank’s net interest income grows 23.8% YoY, led by strong demand in the retail and business banking loan sectors. The stock shows up in a screener for companies with net profits increasing sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include Ipca Laboratories Ltd. (998.80, 6.72%), United Breweries Ltd. (1,629.05, 1.14%) and Balkrishna Industries Ltd. (2,566.90, 1.03%).

Downers:

Largecap and midcap losers today include Laurus Labs Ltd. (362.40, -9.61%), Bank of India (90.80, -8.84%) and Supreme Industries Ltd. (4,322.05, -8.31%).

Volume Rockets

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

Top high volume gainers on BSE included CreditAccess Grameen Ltd. (1,507.40, 8.46%), Ipca Laboratories Ltd. (998.80, 6.72%) and Rainbow Childrens Medicare Ltd. (1,111.35, 3.23%).

Top high volume losers on BSE were Jubilant Pharmova Ltd. (358.50, -10.40%), Laurus Labs Ltd. (362.40, -9.61%) and Mahindra Holidays & Resorts India Ltd. (408.60, -8.85%).

Amber Enterprises India Ltd. (2,793.90, -7.99%) was trading at 10.7 times of weekly average. Medplus Health Services Ltd. (801.25, 2.08%) and Balkrishna Industries Ltd. (2,566.90, 1.03%) were trading with volumes 6.4 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks hit their 52 week highs, while 10 stocks hit their 52 week lows.

Stocks touching their year highs included - Bombay Burmah Trading Corporation Ltd. (1,427.50, 0.58%), Ipca Laboratories Ltd. (998.80, 6.72%) and Multi Commodity Exchange of India Ltd. (2,212.70, -4.62%).

Stocks making new 52 weeks lows included - Atul Ltd. (6,391.30, -4.27%) and Gujarat Gas Ltd. (406.80, -1.55%).

4 stocks climbed above their 200 day SMA including Voltas Ltd. (821.30, 0.33%) and Nuvoco Vistas Corporation Ltd. (351.40, -0.10%). 43 stocks slipped below their 200 SMA including Jubilant Pharmova Ltd. (358.50, -10.40%) and India Cements Ltd. (209.70, -7.05%).

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The Baseline
20 Oct 2023
Five Interesting Stocks Today

1. Angel One

This capital markets stock has soared by 11.2% over the past week, hitting its all-time high of Rs 2,369.7 per share. The surge comes as its net profit grew by 43.9% YoY to Rs 305.3 crore in Q2FY24, outperforming Trendlyne Forecaster’s estimates by 6.1%. As a result, Angel One appears in a screener of stocks with improving quarterly net profit and profit margin. 

The company’s revenue improved by 40.6% YoY on the back of a higher number of active clients, growth in average daily turnover (ADTO) and increased number of orders.  Its ADTO surged by 143.4% YoY during Q2FY24. The active client base also increased by 16% YoY to 4.9 million, helping Angel One maintain its position among the top three brokers. Its market share increased by 336 bps YoY to 14.6%. 

Dinesh Thakkar, the MD and CEO of the company, said, “Our orders, a key revenue driver for our business, grew by 36% sequentially to over 338 million, marking a lifetime best, while the ADTO generated on our platform remains on an uptrend.” 

Over the past year, Angel One (14.6%) has overtaken Upstox (6.6%) in terms of market share concerning the active client base. On the other hand, Groww took the top spot from Zerodha as of September 2023.

Post results, Motilal Oswal Financial Services maintains its ‘Buy’ rating on the stock with an upgraded target price of Rs 2,550 per share. This indicates a potential upside of 8.6%. The brokerage remains confident in the stock, given its strong growth in Q2FY24 and continued technology investments to strengthen its position. It expects the company’s revenue to grow at a CAGR of 16.5% over FY23-25. 

2. Polycab India

This consumer durables company – a historically strong performer currently trading at an eye-watering PE of 78 – has dropped by 2.4% since the announcement of its results on Wednesday. The decline is on account of a slowdown in its fast-moving electrical goods (FMEG) segment and demand tailwinds in the B2B business. However, the firm reported 28.9% growth in its cables and wires business. The firm's Q2FY24 profits beat Forecaster estimates by 10.4%. 

During the quarter, Polycab’s revenue increased by 26.6% YoY to Rs 4,253 crore, led by the wires & cables and international businesses. The company’s net profit grew by 58.9% YoY to Rs 429.7 crore and EBITDA margins also improved by 160 bps YoY due to falling commodity prices and the sale of high-margin products. The firm appears in a screener of stocks with good quarterly growth in recent results.

Polycab has almost emptied its non-rated fan inventory in Q2FY24 and expects a revival in its lighting business. The company’s newly launched economy brand ‘Etira’ and premium brand ‘Hohm’ are seeing traction. Further growth is expected to be led by institutional demand, especially by growth in the real estate sector and affordable housing. 

Commenting on the company’s performance, Inder T Jaisinghani, the Chairman and MD, said, “The company registered its best-ever first-half yearly revenues and profitability. A favourable demand environment, with multiple growth avenues, and the Centre’s focus on infrastructure development and structural reforms, as well as continued momentum in real estate has given us a good set of results.”

ICICI Securities maintains a ‘Hold’ rating on the firm but raises the target price to Rs 5,600 from Rs 4,100. The brokerage believes that strong institutional demand and a revival in its FMEG segment will help Polycab’s top-line growth. 

3. Dalmia Bharat

This cement company has fallen by 7.1% since announcing its result on Saturday. The decline came after QoQ decreases in the company’s net profit and revenue by 9.2% and 12.1%, respectively, in Q2FY24

Despite the lackluster sequential performance, its profit rose by 156.1% YoY to Rs 118 crore, beating Trendlyne Forecaster’s estimate by 10.1%. Its revenue is also up by 7.5% YoY, at Rs 3,234 crore. Its EBITDA margins expanded by 5.8 percentage points YoY to 18.7% due to lower power & fuel and freight costs. The company features in a screener for stocks showing growth in operating profit and operating margins.

During the quarter, Dalmia Bharat lost market share in West Bengal and Bihar due to price hikes. In response, the management has implemented corrective measures and anticipates a positive swing starting from Q4. 

According to the management, Dalmia Bharat has benefited from rising cement prices, particularly in the East, where costs surged by Rs 40-50/bag. Taking note of improved demand, it has also upped the price by Rs 30/bag in the southern market. 

For FY24, the company is planning a capex of Rs 6,500 crore, including Rs 3,700 crore for the acquisition of Jaiprakash Associates’ (JPA) cement assets. Meanwhile, the company's net debt increased by Rs 290 crore to Rs 1,500 crore this quarter and is expected to swell further to around 3,000-4,000 crore with the conclusion of the JPA deal.  

Motilal Oswal reiterates a ‘Buy’ call on Dalmia Bharat and expects its volume to clock a CAGR of 11% over FY24-26. It estimates an EBITDA/tonne of Rs 1,045 in FY24, as against Rs 901 in FY23, driven by lower opex.

4. Bajaj Auto:

This two-wheeler manufacturer rose by 7.5% over the past week till Friday, and also touched its 52-week high of Rs 5,510. This surge follows a 17.8% YoY increase in stock price comes on the back of its Q2FY24 net profit rising by 17.8% YoY to Rs 2,020 crore. It beat Trendlyne Forecaster’s net profit estimates by 15.1%. The management attributes this improvement in profitability to normalising commodity costs and a better product mix. The stock also shows up in a screener for companies with increasing cash flows from operations over the past two years.  

However, this growth comes despite a 0.2% YoY dip in its Q2 sales volume. The slump in exports offset strong growth in the domestic market.  falling by 0.2% YoY as growth in the domestic market was offset by a decline in exports. In contrast, Bajaj Auto's domestic On the domestic front, the company's retail sales increased by 22% YoY, outperforming the industry’s domestic retail sales growth of 10% YoY for the same period in Q2FY24. 

The firm gained from the healthy demand for 125cc+ bikes in the domestic industry, which made up 51% of all two-wheeler sales in the 2-wheeler domestic market during Q2. Specifically, Bajaj Auto’s retail sales in this 125cc + segment grew by 36% YoY, outpacing the rest of the industry. Currently, Bajaj Auto The company has a 30% market share in the 125cc + segment, which and this segment accounts for 65% of its domestic volumes. 

The management expects to drive growth in the near-to-medium term by increasing its market share in the 125cc+ segment through new launches. It also aims to sustain its 80% market share in the internal combustion engine (ICE) three-wheeler segment, and boost increase its presence in the electric three-wheeler market. Although the company’s exports have been sluggish are currently subdued, wholesales and retail sales in the key markets like of Africa, Latin America and Asia have started to improve on a QoQ basis. The firm expects exports to start recovering gradually as the inflation subsides in these key markets reduces. 

5. Karur Vysya Bank:

This banking and finance company has risen over 6% since Monday and is currently trading near its 52-week high, after reporting healthy Q2 numbers. The bank reported its highest-ever quarterly net profit of Rs 378.5 crore (up 51.2% YoY), beating Trendlyne’s Forecaster estimates by 5.7%, owing to a sharp decline in provisions. As a result, it features in a screener of companies with increasing profits every quarter for the past four quarters. The bank’s net interest income grew 11.5% YoY to Rs 915 crore, helped by improved revenue from the treasury, corporate banking, and retail banking segments.  

During the quarter, Karur Vysya’s deposits grew by 13.2% YoY, while its loan book was up by 15.3% YoY, driven by the MSME and housing segments. Its asset quality has also improved, as NPAs decreased by 91 bps YoY to 0.5%. According to Managing Director and CEO Ramesh Babu, "Our slippages are under control, and our gross slippages for the quarter is less than 1%, which is as per our guidance." He also highlighted the bank’s focus on retail deposit mobilisation, while maintaining a steady growth strategy. 

Post Karur Vysya’s results, Emkay Global maintains its ‘Buy’ rating with an upgraded target price of Rs 185, implying an upside potential of 28.6%. The brokerage has a positive outlook on the bank, given its superior return ratios. It anticipates the bank to register its decadal best RoA and RoE at 1.5% and 16%, respectively, over FY24-26E.

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

Market closes lower, Hindustan Zinc's Q2 net profit drops 35.5% YoY to Rs 1,729 crore

Trendlyne Analysis

Nifty 50 closed at 19,542.65 (-82.1, -0.4%) , BSE Sensex closed at 65,397.62 (-231.6, -0.4%) while the broader Nifty 500 closed at 17,208.75 (-101.8, -0.6%), of the 1,968 stocks traded today, 573 were in the positive territory and 1,348 were negative.

Indian indices closed in the red, with the Nifty 50 falling 82.1 points and closing at 19,542.7 points. The Indian volatility index, Nifty VIX, fell 0.7% and closed at 10.8 points. Jindal Stainless closed 4.4% higher after its Q2FY24 net profit jumped 120.2% YoY to Rs 764 crore on the back of lower inventory costs.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, taking cues from the benchmark index. Nifty Pharma and Nifty FMCG closed lower than their Thursday close. According to Trendlyne’s sector dashboard, Telecommunications Equipment was the top-performing sector of the week as it rose 14.2%.

Major European indices traded in the red, tracking the Asian indices. US index futures also traded lower, indicating a negative start to the trading session. Brent crude oil futures traded in the green after rising 1.8% on a volatile day on Thursday.

  • Mahanagar Gas sees a short buildup in its October 26 future series as its open interest rises 26.8% with a put-call ratio of 0.5.

  • Titagarh Rail Systems rises as it bags an order worth Rs 350 crore from Gujarat Metro Rail Corporation Limited (GMRC) for the design, manufacture, supply, testing, commissioning and training of 30 standard gauge cars for the Ahmedabad Metro Rail Phase-II Project. The stock shows up in a screener for companies with strong annual EPS growth.

  • Welspun India, Sonata Software and Rallis India rise 9.1%, 2.6% and 1.2% respectively over the past week, ahead of their Q2FY24 results on October 25.

  • Hindustan Zinc declines as its Q2FY24 net profit drops by 35.5% YoY to Rs 1,729 crore, impacted by an increase in finance costs. Meanwhile, its revenue falls by 24.1% YoY. The stock appears in a screener for companies with declining net cash flow.

  • Kotak Mahindra Bank is rising as the Reserve Bank of India (RBI) approves its acquisition of Sonata Finance, a non-banking finance co (NBFC). The bank will be acquiring a 100% stake in Sonata Finance for Rs 537 crore. Post the acquisition, Sonata Finance will become a wholly owned subsidiary of the bank.

  • Glenmark Life Sciences is rising as its net profit grows by 11.1% YoY to Rs 118.7 crore in Q2FY24. Revenue expands by 16.9% YoY, aided by improvements in the generic API segment across the US, Latin America and Europe markets. It shows up in a screener of stocks with YoY growth in quarterly net profit and profit margin.

  • Century Textilesis falling as it posts a net loss of Rs 30.4 crore in Q2FY24, compared to a net profit of Rs 71.6 crore in Q2FY23. Its EBITDA margins plummet by 11.5 percentage points YoY to 3.1% and revenue dips by 10.6% YoY as its pulp and paper segment sees a strong decline.

  • Anurag Mantri, Executive Director and CFO of Jindal Stainless, says that the company targets 20% volume growth for FY24. He highlights that the EBITDA per tonne for H1 was around Rs 20,000 and will maintain their guidance of Rs 19,000-21,000. He adds that the company intends to reduce its debt to around Rs 4,700 in FY24.

  • IRM Energy's Rs 545.4 crore IPO gets bids for 27.1X the available 76.3 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 9.3X the available 37 lakh shares on offer.

  • Grasim Industriesis falling as it receives a demand notice for Rs 141 crore from the Rajasthan Stamps Collector. The demand relates to the non-payment of stamp duty for a scheme of arrangement between the company and Indian Rayon and Industries in FY1999.

  • United Breweriesrises despite its Q2FY24 net profit decreasing by 20.1% YoY to Rs 10,717 crore, owing to higher raw material and employee costs. Its revenue grows by 14.1% YoY to Rs 1,890.1 crore. The stock appears in a screenerfor companies with no debt.

  • Foreign institutional investors take out Rs 1,410.3 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 22,591.3 crore from foreign investors. Mutual Funds invest Rs 1,275.8 crore in the equity market over the same period.

  • Tata Communicationsfalls as its net profit declines 58.6% YoY to Rs 221.3 crore, due to higher network & transmission and employee benefit expenses. However, its revenue grows by around 10%, driven by the data services, transformation services and real estate segments.

  • Consumer durables stocks like Havells India, Aditya Birla Fashion and Retail and Crompton Greaves Consumer Products are falling in trade. All constituents of the broader BSE Consumer Durables index are trading in the red.

  • SoftBank's venture capital fund SVF Growth, Singapore, plans to sell a 1.1% stake in Zomato for Rs 1,024 crore ($123.24 million), suggest reports.

  • Jindal Stainless rises as its Q2FY24 net profit jumps 120.2% YoY to Rs 764 crore on the back of lower inventory costs. Its revenue also increases by 12% YoY, driven by healthy domestic sales. The stock shows up in a screener for companies with low debt.

  • Tanla Platforms rises over 5% as its net profit grows by 5.3% QoQ to Rs 142.5 crore in Q2FY24. Revenue increases by 10.7% QoQ, aided by improvement in the digital platform and enterprise communications segments. It appears in a screener of stocks with increasing revenue for the past two quarters.

  • Indraprastha Gas (IGL) falls sharply after Jefferies downgrades its rating to ‘Hold’ from 'Buy', with a target price of Rs 465. The brokerage says that the Delhi Government’s EV policy, which aims to boost EV adoption in the city, will impact around 30% of the company’s sales volumes starting from FY25.

  • Cyient is falling despite its Q2FY24 net profit rising by 6.1% QoQ to Rs 178.3 crore and revenue increasing by 5.5% QoQ on the back of the design, engineering & technology and digital-led manufacturing segments. However, the firm’s EBIT margin declines by 0.1 percentage points QoQ to 14.6%.

  • ITC is falling despite its Q2FY24 net profit rising 6.1% YoY to Rs 4,955.9 crore and revenue growing by 3.6% YoY, led by healthy growth in the FMCG segment. The company shows up in a screener for stocks with expensive valuations, according to Trendlyne’s valuation score.

  • Metal & mining stocks like NMDC, National Aluminium Co, JSW Steel, Jindal Steel & Power and Tata Steel are falling in trade. All the constituents of the broader sectoral index, BSE Metal, are also trading in the red.

  • Nomura maintains its 'Neutral' rating on Havells India with a target price of Rs 1,410. It says that the company's Q2FY24 EBITDA and EBITDA margin were below the consensus projections. According to the brokerage, this weak performance is due to the wires & cables division, followed by the electronic consumer durables (ECD) segment. The company's Q2FY24 net profit has risen by 33.3% YoY to Rs 249.1 crore, while its revenue grew 6.2% YoY.

  • Porinju Veliyath trims his stake in Ansal Properties & Infrastructure to below 1% in Q2FY24. He held a 1.1% stake in Q1FY24.

  • Dolly Khanna sells a 0.6% stake in Pondy Oxides & Chemicals in Q2FY24. She now holds 3.1% of the company. She has also sold a 0.4% stake each in Monte Carlo Fashions and Simran Farms.

  • Vijay Kedia buys a 6% stake in Atul Auto in Q2FY24. He now holds a 20.9% stake in the company.

  • Hindustan Unilever’s Q2FY24 net profit falls by 0.3% YoY to Rs 2,656 crore, while its revenue rises by 3.6% YoY, driven by the home care and personal care segments. Its profitability is impacted by a 65.4% YoY increase in advertising expenses. The stock shows up in a screener for companies with zero promoter pledges.

Riding High:

Largecap and midcap gainers today include CG Power and Industrial Solutions Ltd. (394.25, 3.64%), United Breweries Ltd. (1,610.65, 2.84%) and Bajaj Holdings & Investment Ltd. (7,055.40, 2.83%).

Downers:

Largecap and midcap losers today include Indraprastha Gas Ltd. (403.20, -11.90%), Havells India Ltd. (1,292.95, -5.12%) and MphasiS Ltd. (2,169.75, -4.02%).

Volume Rockets

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

Top high volume gainers on BSE included Bombay Burmah Trading Corporation Ltd. (1,419.20, 20.00%), Maharashtra Scooters Ltd. (8,362.10, 5.43%) and Jindal Stainless Ltd. (469.00, 4.22%).

Top high volume losers on BSE were Indraprastha Gas Ltd. (403.20, -11.90%), Mahanagar Gas Ltd. (1,030.05, -8.35%) and Tata Communications Ltd. (1,710.25, -3.75%).

Tanla Platforms Ltd. (1,065.30, 4.01%) was trading at 8.9 times of weekly average. United Breweries Ltd. (1,610.65, 2.84%) and Amber Enterprises India Ltd. (3,036.60, 2.89%) were trading with volumes 6.9 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks made 52 week highs, while 5 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (5,489.30, 0.12%), Bombay Burmah Trading Corporation Ltd. (1,419.20, 20.00%) and Colgate-Palmolive (India) Ltd. (2,110.75, 1.07%).

Stocks making new 52 weeks lows included - Gujarat Gas Ltd. (413.20, -1.58%) and Rajesh Exports Ltd. (436.95, -2.40%).

3 stocks climbed above their 200 day SMA including Sheela Foam Ltd. (1,129.25, 0.52%) and Godrej Consumer Products Ltd. (988.15, 0.43%). 15 stocks slipped below their 200 SMA including Indraprastha Gas Ltd. (403.20, -11.90%) and Hindustan Petroleum Corporation Ltd. (252.70, -3.48%).

Market closes lower, IRM Energy's IPO gets bids for 3X the available shares on offer

Trendlyne Analysis

Nifty 50closed at 19,624.70 (-46.4, -0.2%), BSE Sensexclosed at 65,629.24 (-247.8, -0.4%) while the broader Nifty 500closed at 17.310.50 (-33.5, -0.2%). Market breadth is even. Of the 1,963 stocks traded today, 970 were in the positive territory and 943 were negative.

Indian indices closed in the red, with the Nifty 50closing at 19,624.7 points. The Indian volatility index, Nifty VIX, fell 0.6% and closed at 10.9 points. Persistent Systems closed 2.3% higher after its Q2FY24 net profit increased by 15.1% QoQ to Rs 263.3 crore and EBIT margin expanded by 88 bps QoQ to 13.7%.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, despite the benchmark index closing in the red. Nifty FMCG and Nifty Auto closed higher than their Wednesday close. According to Trendlyne's sector dashboard, Telecommunications Equipment was the top-performing sector of the day as it rose 0.8% in a volatile market.

Major Asian indices closed lower, except for Taiwan’s TSEC 50 closing marginally higher. European indices traded in the red as investors looked ahead to the Fed chair Jerome Powell’s speech at the Economic Club of New York later today. US index futures also traded lower, indicating a negative start to the trading session. Brent crude oil futures traded in the red after rising 0.5% on a volatile day on Wednesday.

  • Money flow index (MFI) indicates that stocks like Prestige Estates Projects, Vijaya Diagnostic Centre, The Fertilisers and Chemicals Travancore and Oil India are in the overbought zone.

  • NBCC (India) rises over 8% in trade to touch a new 52-week high of Rs 70.6 per share. The company ranks high on Trendlyne’s Checklist scoring 54.5%. It features in a screener of companies with zero promoter pledges.

  • Ultratech Cement is rising as its net profit surges by 69.6% YoY to Rs 1,281.5 crore in Q2FY24. Revenue improves by 15.3% YoY to Rs 16,012.1 crore during the same period. It features in a screener of stocks with increasing profits for the past three consecutive quarters.

  • ICICI Securities maintains its ‘Buy’ rating on IndusInd Bank and raises its target price to Rs 1,750 from Rs 1,700. This implies an upside of 20.9%. The brokerage expects the bank to see a healthy rate of loan growth with a steady net interest margin and anticipates slippages to gradually reduce in the coming quarters.

  • PVR INOX is falling despite being back in the black in Q2FY24 with a net profit of Rs 166.3 crore. Its revenue jumps by nearly 3X YoY to Rs 2,000 crore, driven by improving box office collections and a 64% YoY rise in admissions. The stock shows up in a screener for companies with improving net cash flows from operations over the past two years.

  • Bandhan Bank is falling despite its net profit growing by 3.4X YoY to Rs 721.2 crore in Q2FY24. Interest revenue increases by 20% YoY on the back of gains in the treasury, retail banking and wholesale banking segments. The bank's asset quality declines with net NPA rising by 45 bps YoY. The company appears in a screener of stocks with rising debt.

  • SJVN offers power to the beneficiaries of Northern Region from a 1,000 MW solar PV station under development at a village in Rajasthan, as part of the CPSU government scheme. Jammu & Kashmir Power Corp and Rajasthan Urja Vidyut Nigam have both agreed to purchase 600 MW and 500 MW of power, respectively, against the station's total capacity of 1000 MW.

  • IRM Energy's Rs 545.4 crore IPO gets bids for 4.4X the available 76.3 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 4.4X the available 37 lakh shares on offer.

  • Gandharv Tongia, Executive Director and CFO of Polycab India, says the company will continue to outpace the cables and wires market. He remains positive that it will attain the Rs 20,000 crore revenue objective before 2026. He adds that the cable and wires business margins will be around 12-14% and Polycab's exports have grown by 14%.

  • Shyam Metalics and Energy is rising as its arm Shyam Sel and Power gets NCLT approval to acquire Mittal Corp for a consideration of Rs 351 crore. The company appears in a screener of stocks where foreign institutional investors have increased their shareholdings.

  • MTAR Technologies, Chambal Fertilisers & Chemicals, Sapphire Foods, and Zensar Technologieswitness a decrease in mutual fund holdings in the past month.

  • Persistent Systemsis rising as its Q2FY24 net profit increases by 15.1% QoQ to Rs 263.3 crore and EBIT margin expands by 88 bps QoQ to 13.7%. Its revenue also improves by 3.9% YoY, driven by healthy growth in the software, hi-tech and healthcare business verticals. The company also bags its highest-ever order in Q2, with a total contract value of $475 million.

  • Titagarh Rail Systemsis falling despite reporting a profit of Rs 24 crore in Q2FY24, as against a loss of Rs 11.7 crore in Q2FY23. Its revenue grows by 54% YoY. The profit uptick is due to a one-time impairment loss of investment in Q2FY23. The company features in a screener for stocks with strong annual EPS growth.

  • Jefferies initiates coverage on One 97 Communications (Paytm) with a ‘Buy’ rating and a target price of Rs 1,300. The brokerage is optimistic about the company's accelerated monetisation of its expansive ecosystem, driven by the growth of its credit business. It predicts that the company will be profitable within the next year, making it one of the few major profitable fintech companies worldwide with strong growth.

  • LTIMindtree is rising as its Q2FY24 net profit increases by 0.9% QoQ to Rs 1,161.8 crore. Its revenue improves by 2.4% QoQ, aided by better sales in the banking, financial services & insurance segment.

  • KFIN Technologies is rising as it signs a contract with LIC Pension Fund to provide investment management solutions.

  • Nestle India is rising as its Q2FY24 net profit rises 37.3% YoY to Rs 908.1 crore, driven by better sales, lower raw material costs, and the write-back of provisions from earlier quarters. Its revenue increases by 9.5% YoY, led by healthy growth in domestic sales. The board has approved a stock split in a 1:10 ratio and has declared a dividend of Rs 140 per share, payable on November 16.

  • Hiranand Savlani, CFO of Astral, says that the FY24 volume growth guidance has been increased to over 20% from the earlier 15%. He adds that the bathware business is expected to breakeven in FY25, instead of Q4FY24. He is confident that the company will attain new business revenues of Rs 1,500 crore within the next five years.

  • Wisdomtree India Investment Portfolio buys a 0.5% stake in Gujarat Pipavav Port for approx Rs 34.2 crore in a bulk deal on Wednesday.

  • Metal stocks like APL Apollo Tubes, Coal India, Jindal Steel & Power and Tata Steel are falling in trade. All constituents of the broader BSE Metal index are trading in the red.

  • Bajaj Autorises to its all-time highof Rs 5,395 per share as its net profit grows by 17.5% YoY to Rs 2,020.1 crore in Q2FY24. Revenue increases by 6.2% YoY, aided by improved sales in the Indian and overseas markets. It appears in a screener of stocks where mutual funds have increased their shareholdings over the past month.

  • BofA maintains its 'Buy' rating on IndusInd Bank with an upgraded target price of Rs 1,750 citing that the company's Q2 results were positive. The brokerage says the bank has demonstrated solid loan growth momentum in various segments. It adds that NIMs have been stable, and anticipates credit costs to fall further in H2.

  • Shakti Pumpssurges more than 10% to touch its all-time highof Rs 1,066.6 per share as it bags an order worth Rs 1,603 crore from Maharashtra State Electricity Distribution. The order is for the supply of 50,000 pumps over the next two years.

  • Porinju Veliyathadds Arrow Greentechto his portfolio in Q2FY24. He buys a 1.1% stake in the company.

  • Ashish Kacholiaadds Dhabriya Polywood, NIIT Learning Systemsand Zaggle Prepaid Ocean Servicesto his portfolio in Q2FY24. He buys a 6.4%, 2.2% and 1.7% stake in the companies respectively.

  • Wipro is falling as its net profit declines by 7.8% QoQ to Rs 2,646.3 crore in Q2FY24. Revenue also decreases by 1.4% YoY due to the Americas, Europe and APMEA segments. It appears in a screener of stocks with dropping quarterly net profit and profit margin.

Riding High:

Largecap and midcap gainers today include Bajaj Auto Ltd. (5,482.60, 6.72%), LTIMindtree Ltd. (5,457.80, 5.87%) and Nestle India Ltd. (24,132.35, 3.74%).

Downers:

Largecap and midcap losers today include Astral Ltd. (1,843.85, -6.09%), Indraprastha Gas Ltd. (457.65, -4.80%) and APL Apollo Tubes Ltd. (1,698.95, -3.77%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included NBCC (India) Ltd. (70.75, 9.52%), Bajaj Auto Ltd. (5,482.60, 6.72%) and Minda Corporation Ltd. (363.65, 6.61%).

Top high volume losers on BSE were Astral Ltd. (1,843.85, -6.09%), Wipro Ltd. (395.30, -2.98%) and Shoppers Stop Ltd. (677.40, -1.94%).

Firstsource Solutions Ltd. (170.90, 2.64%) was trading at 6.4 times of weekly average. LTIMindtree Ltd. (5,457.80, 5.87%) and KSB Ltd. (3,223.90, 4.96%) were trading with volumes 6.1 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks took off, crossing 52 week highs, while 5 stocks hit their 52 week lows.

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (804.10, -1.34%), Bajaj Auto Ltd. (5,482.60, 6.72%) and Blue Star Ltd. (944.25, -0.01%).

Stocks making new 52 weeks lows included - Navin Fluorine International Ltd. (3,648.30, -0.74%) and V-Mart Retail Ltd. (1,892.50, -1.15%).

1 stock climbed above their 200 day SMA including Bharat Petroleum Corporation Ltd. (353.70, 1.00%). 16 stocks slipped below their 200 SMA including Bandhan Bank Ltd. (229.15, -3.76%) and Wipro Ltd. (395.30, -2.98%).