Trendlyne Analysis
Nifty 50closed at 19,731.75 (-19.3, -0.1%), BSE Sensex closed at 66,166.93 (-115.8, -0.2%) while the broader Nifty 500closed at 17,393.00 (2.7, 0.0%). Market breadth is in the green. Of the 2,022 stocks traded today, 1,044 were in the positive territory and 919 were negative.
Indian indices closed flat, with the Nifty 50falling 19.3 points and closing at 19,731.8. The Indian volatility index, Nifty VIX, rose 4.2% and closed at 11.1 points. India’s WPI inflation contracted to -0.3% in September and continued its negative trend for the sixth consecutive month. This is due to a fall in prices of basic metals, mineral oil, chemical & chemical products, and textiles.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Auto and Nifty Metal closed higher than their Friday close. According to Trendlyne’s sector dashboard, Fertilizers was the top-performing sector of the day as it rose 8.3%.
Major European indices fell from their day highs and traded flat or lower, except for England’s FTSE 100 index trading in the green. However, Asian indices closed flat or lower on a volatile day of trade. US index futures traded flat, indicating a cautious start to the trading session. The index for emerging markets in Europe, the Middle East and Africa steadied as a US diplomatic push to contain the war in the Middle East helped ease investors’ concerns. Brent crude oil futures traded lower after rising 5.4% on Friday.
Money flow index (MFI) indicates that stocks like Prestige Estates Projects, MMTC, Vijaya Diagnostic Centre and Solar Industries India are in the overbought zone.
Karur Vysya Bank is rising as its Q2FY24 net profit grows by 51.2% YoY to Rs 378.4 crore. Its net interest income (NII) increases by 26.4% YoY, aided by improvement in revenue from the treasury, corporate banking and retail banking segments. Its asset quality also improves as its gross and net NPAs decline by 229 bps and 91 bps YoY, respectively. The company appears in a screener of stocks with increasing revenue for the past eight quarters.
Niranjan Gupta, CEO of Hero MotoCorp, says the company has experienced a 30% rise in bookings and a 20% increase in inquiries this festive season. He anticipates a double-digit growth during this period. He also adds that the company has 6-7 new product launches in the pipeline.
Oriental Hotels falls as its Q2FY24 net profit plunges by 45.7% YoY to Rs 43.7 crore due to increasing costs in employee benefits and raw materials. However, its revenue rises by 2.5% YoY, aided by an increase in the average room rate. The company appears in a screener of stocks with falling net profits and margins.
Cochin Shipyard is rising as it bags an order worth Rs 313.4 crore from the Ministry of Defence to upgrade and repower INS Beas. The project will be completed in 2026.
Bank of Maharashtra is rising as its Q2FY24 net profit surges by 71.9% YoY to Rs 919.8 crore and net interest income rises by 29% YoY. The stock shows up in a screener for companies with net profits rising sequentially for the past four quarters.
According to Nuvama Institutional Equities, agrochem-focused players are expected to face demand pressures. The brokerage highlights that inventory de-stocking is still in progress and might pick up pace in Q3FY24 as major global players are focusing on healthier year-end balance sheets.
Federal Bank's Q2FY24 net profit rises 35.5% YoY to Rs 953.8 crore, while its total income increases 33.6% YoY. The bank's total deposits during the quarter also improve by 23.1% YoY and net advances grow 19.6% YoY. The bank features in a screener for stocks with increasing revenue for the past eight quarters.
Mphasis, Coforge, Tanla Platformsand PVR INOX's weekly average delivery volumes rise ahead of their Q2FY24 results on Thursday.
Zydus Lifesciencesappoints Punit Patel as its President and Chief Executive Officer to lead its business operations in the Americas. He will oversee the company's generics, injectables, and specialty businesses. He will also manage the rare and orphan disease portfolio, and lead future forays into novel therapeutics.
Texmaco Rail & Engineeringsurges more than 5% as its net profit grows by 59.7% YoY to Rs 24.6 crore in Q2FY24. Revenue increases by 66.2% YoY on the back of improvement in revenue from the heavy engineering and steel foundry segments. It features in a screenerof stocks with negative to positive growth in sales and net profit with strong price momentum.
According to reports, 1.03 crore shares (0.15% equity) of Power Grid Corp of India, amounting to around Rs 206.9 crore, change hands in two large trades.
HDFC Securities maintains its ‘Buy’ rating on State Bank of India and raises the target price to Rs 790 from Rs 750. This implies an upside of 36.8%. The brokerage remains positive about the bank’s prospects due to its robust lean distribution model, healthy profitability, stable NIMs and improving efficiencies. It expects the company’s net profit to grow at a CAGR of 12.4% over FY23-25.
Delta Corp plunges over 8% to touch its 52-week low of Rs 122.6 as its subsidiary, Deltatech Gaming, receives an intimation from the Directorate General of GST Intelligence. The intimation relates to the payment of Rs 6,384.3 crore in shortfall tax.
Gati rises over 9% as it records an 8% YoY increase in total volumes to 109kt (kilo tonnes) in September, including surface and air express. Its Q2FY24 volume improves by 18% YoY to 333kt, driven by strong pre-festive orders. The company's Bengaluru transhipment hub is now fully online. It appears in ascreener for stocks with strong momentum.
Metal & mining stocks like NMDC, Coal India, APL Apollo Tubes, JSW Steel and Tata Steel are rising in trade. Barring Hindalco Industries, all the other constituents of the broader sectoral index, BSE Metal, are trading in the green.
India’s WPI inflation contracts to around -0.3% in September, continuing its negative trend for the sixth consecutive month. This is due to a fall in prices of basic metals, mineral oil, chemical & chemical products, and textiles.
Porinju Veliyath sells a 1.1% stake in Ashok Alco-Chem in Q2FY24. He now holds a 3% stake in the company.
Sunil Singhania sells 0.5% and 0.3% stakes in Hindware Home Innovation and AGI Greenpac, respectively, in Q2FY24. He now holds 4.4% and 1.4% stakes in the companies.
Ashish Kacholia sells a 1.1% stake in SJS Enterprises during Q2FY24, reducing his holding to 3.2%. He has also bought a 0.2% stake in Faze Three during the same quarter.
Bajaj Electricals is rising as it bags an order worth Rs 564.2 crore from Power Grid Corp of India for two 400 kV transmission lines in Andhra Pradesh. The project is expected to be completed in the next 21 months.
Goldman Sachs maintains its 'Buy' rating on One97 Communications (Paytm) with an upgraded target price of Rs 1,250. It says the company's operating metrics have been better than expected. According to the brokerage, Paytm turning net income positive in FY25 will boost the stock. Goldman Sachs raises its EBITDA estimates for the firm by 2-5%, for FY24-26E.
Rakesh Jhunjhunwala's portfolio sells a 0.4% stake in Federal Bankin Q2FY24. It now holds a 3.1% stake in the company.
Kalpataru Projects Internationalrises as it bags orders worth Rs 2,217 crore. These include a power transmission and distribution order for Rs 1,993 crore in India and abroad and a building and factories order for Rs 224 crore in India. The company appears in a screenerof stocks with strong momentum.
Avenue Supermartsis falling as its net profit declines by 9.1% YoY to Rs 623.6 crore in Q2FY24. However, its revenue grows by 18.7% YoY, aided by improvements in the food and non-food segments. The firm's EBITDA margin drops by 42 bps YoY due to increased raw material and employee benefit expenses. It appears in a screenerof stocks where superstar shareholders have sold their stakes.
Nifty 50was trading at 19,704.60 (-46.5, -0.2%), BSE Sensexwas trading at 66,238.15 (-44.6, -0.1%) while the broader Nifty 500was trading at 17,367.60 (-22.8, -0.1%).
Market breadth is in the green. Of the 1,834 stocks traded today, 1,128 were on the uptrend, and 630 went down.
Riding High:
Largecap and midcap gainers today include Supreme Industries Ltd. (4,335.00, 4.17%), NMDC Ltd. (165.25, 3.35%) and Samvardhana Motherson International Ltd. (97.35, 3.18%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (329.65, -3.58%), Gland Pharma Ltd. (1,573.80, -2.98%) and Gujarat Fluorochemicals Ltd. (2,789.70, -2.50%).
Volume Shockers
20 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KIOCL Ltd. (397.00, 19.99%), Gujarat State Fertilizer & Chemicals Ltd. (204.95, 9.69%) and Star Cement Ltd. (174.25, 6.90%).
Top high volume losers on BSE were Delta Corp Ltd. (128.00, -8.57%), Avenue Supermarts Ltd. (3,856.80, -2.01%) and Atul Ltd. (6,877.65, -0.89%).
Deepak Fertilisers & Petrochemicals Corporation Ltd. (680.95, 5.21%) was trading at 13.5 times of weekly average. IIFL Finance Ltd. (672.30, 6.49%) and Kalpataru Projects International Ltd. (699.75, 6.20%) were trading with volumes 13.2 and 7.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
41 stocks made 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.
Stocks touching their year highs included - Bharti Airtel Ltd. (946.55, -0.80%), Coal India Ltd. (312.00, 1.32%) and Federal Bank Ltd. (148.55, -0.57%).
Stocks making new 52 weeks lows included - Delta Corp Ltd. (128.00, -8.57%) and V-Mart Retail Ltd. (1,932.00, -0.54%).
4 stocks climbed above their 200 day SMA including Aditya Birla Fashion and Retail Ltd. (227.15, 2.09%) and Sheela Foam Ltd. (1141.00, 1.87%). 6 stocks slipped below their 200 SMA including Jindal Worldwide Ltd. (349.10, -2.16%) and Aavas Financiers Ltd. (1,632.00, -1.46%).