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%).