Trendlyne Analysis
Indian indices closed in the red, with the volatility index, India VIX, rising sharply. India’s Wholesale Price Index (WPI) inflation declines to a 22-month low of 4.95% in December 2022, compared to 5.85% in November. European indices traded flat to higher than Friday’s levels. Other major Asian indices closed in the green, barring Japan’s Nikkei 225 index, as investors look ahead to policy setting by the Bank of Japan on Wednesday this week.
US indices closed in the green on Friday after dipping into losses and gains on a volatile day of trade. Bank stocks led the US indices to post gains on Friday. The S&P 500 rose 0.4% while the tech-heavy Nasdaq 100 index closed 0.7% higher. US markets will be closed today in observance of Martin Luther King Jr. Day. Brent crude oil futures traded lower after rising over 8.7% last week amid cooling inflation prints globally and the reopening of China, which led to a rise in crude oil demand.
Nifty Smallcap 100 closed flat, despite the benchmark index closing in the red. Nifty Metal and Nifty Auto closed lower than Friday’s levels. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq 100 index, which closed 0.7% higher on Friday.
Nifty 50closed at 17,894.85 (-61.8, -0.3%), BSE Sensexclosed at 60,092.97 (-168.2, -0.3%) while the broader Nifty 500closed at 15,305.45 (-40.7, -0.3%)
Market breadth is in the red. Of the 1,976 stocks traded today, 764 showed gains, and 1,138 showed losses.
Relative strength index(RSI) indicates that stocks like Max Financial Services, Mahindra CIE Automotive, CG Power and Industrial Solutionsand Edelweiss Financial Servicesare in the overbought zone.
GPT Infraprojects is rising as the company bags an order worth Rs 216 crore from Maharashtra Rail Infrastructure Development Corp for the proposed extension of Ghatkopar cable-stayed road overbridge.
PNC Infratechtouches its 52-week high of Rs 335 today. The stock ranks high on Trendlyne’s checklist, scoring 56.5%. It also shows up in a screenerfor companies with improving book value per share over the past two years.
Federal Bank is rising as its Q3FY23 net profit grows 54% YoY to Rs 803.1 crore and net interest income increases 27% YoY. The bank’s asset quality improves as its gross NPA and net NPA fall 63 bps and 32 bps YoY respectively. The bank shows up in a screener of stocks with growth in quarterly net profit and increasing profit margin (YoY).
Larsen & Toubro’s arm L&T Construction secures a repeat order worth Rs 1,000-2,500 crore to construct two towers with commercial office space in Hyderabad. The company shows up in a screener for stocks with high consistent returns over the past five years.
- Reports suggest that around 47.7 lakh shares (0.23% equity) of Federal Bank, amounting to Rs 66.8 crore, change hands.
Maruti Suzuki India is falling as it hikes its prices by a weighted average of 1.1% across models. The indicative figure is calculated using ex-showroom prices of the models in Delhi. The price change will take effect from today. The company features in a screener of stocks with return on capital employed (RoCE) falling over the past two years.
Sula Vineyards is rising as its own brands sales rise 13% YoY to Rs 187.2 crore in Q3FY23 on the back of robust volume growth and higher realisations. The company’s wine tourism business also grows 13% YoY. The company shows up in a screener for stocks near their 52-week highs.
India’s Wholesale Price Index (WPI) inflation declines to a 22-month low of 4.95% in December 2022, compared to 5.85% in November. This decline is caused by a fall in prices of food articles, mineral oils, crude petroleum and natural gas, among others.
US FDA sends a warning letter to Sun Pharmaceutical Industries for manufacturing lapses like failure to follow appropriate written procedures designed to prevent microbiological contamination of drug products, according to reports.
Avenue Supermarts is falling even as its Q3FY23 revenue grows 25.5% YoY to Rs 11,569 crore. The fall is because of the company missing estimates. Rise in employee benefits and other expenses cause the EBITDA margin to fall 110 bps YoY to 8.3%. The company features in a screener of stocks with declining net cash flow.
Jefferies maintains its ‘Buy’ rating on Varun Beverages with a target price of Rs 1,540. The brokerage expects the company to lead the industry in terms of revenue growth and its RoCE to improve to 30%.
IDBI Capital upgrades its rating on Infosys to ‘Buy’ from ‘Hold’ with a target price of Rs 1,715. This implies an upside of 20%. The brokerage believes cost efficiencies and large deal wins will drive growth and improvement in margins. It expects the company’s revenue to grow at a CAGR of 13.9% over FY22-25.
PSU Bank stocks like UCO Bank, Indian Overseas Bank, Punjab & Sind Bank and Central Bank of Indiaare rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.
Lupin is falling as the US FDA issues form-483 with two observations after inspecting the company's manufacturing facility in New Jersey, USA, from January 2 to 13.
Whirlpool of India's Managing Director Vishal Bhola resigns to pursue other interests, effective from April 3. The board appoints Narasimhan Eswar as Additional Director and Managing Director with effect from April 4 for a period of five years, subject to necessary approvals.
- Indian rupee rises to 81.24 against the US dollar in early trade today from Friday's close of 81.33.
Dolly Khanna buys a 0.1% stake in National Oxygen in Q3FY23, now holds a 1.2% stake in the company.
Porinju Veliyath's wife, Litty Thomas, buys a 0.72% stake in Kovilpatti Lakshmi Roller Flour Mills in a bulk deal on Friday.
HG Infra Engineering is rising as it receives a letter of acceptance from Delhi Metro Rail Corp for the construction of elevated viaducts and stations. The cost of the project is Rs 398.6 crore.
Wipro’s Q3FY23 net profit grows 14.8% QoQ to Rs 3,052.9 crore, with revenue rising 3.1% QoQ. Attrition falls to 24.3% from 27% in Q2FY23. The company declares an interim dividend of Re 1 per equity share with January 25 as the record date. It shows up in a screener of stocks with increasing revenue for the past four quarters.
HDFC Bank’s net profit increases 18.5% YoY to Rs 12,259.4 crore, with net interest income rising 24.6% YoY in Q3FY23. The bank's asset quality also improves as GNPA and NNPA ratios fall to 1.23% and 0.33% respectively. Provisions fall 6.3% YoY in Q3. The bank shows up in a screener of stocks nearing 52-week high.
Riding High:
Largecap and midcap gainers today include Adani Green Energy Ltd. (2,089.80, 9.09%), Indian Overseas Bank (32.20, 7.15%) and Varun Beverages Ltd. (1,207.35, 6.30%).
Downers:
Largecap and midcap losers today include FSN E-Commerce Ventures Ltd. (140.25, -4.98%), Avenue Supermarts Ltd. (3,678.35, -4.80%) and Astral Ltd. (1,975.75, -3.50%).
Movers and Shakers
19 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Just Dial Ltd. (644.30, 10.00%), Adani Green Energy Ltd. (2,089.80, 9.09%) and Easy Trip Planners Ltd. (56.05, 8.83%).
Top high volume losers on BSE were Avenue Supermarts Ltd. (3,678.35, -4.80%), HDFC Asset Management Company Ltd. (2,111.95, -1.89%) and Sobha Ltd. (587.65, -1.07%).
HEG Ltd. (1,098.50, 4.57%) was trading at 10.9 times of weekly average. Cholamandalam Financial Holdings Ltd. (590.00, -0.80%) and Aptus Value Housing Finance India Ltd. (300.95, 1.14%) were trading with volumes 8.1 and 6.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
9 stocks hit their 52-week highs, while 4 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Edelweiss Financial Services Ltd. (73.65, 0.82%), Federal Bank Ltd. (140.30, 1.34%) and IDFC Ltd. (87.95, 3.05%).
Stocks making new 52 weeks lows included - Vodafone Idea Ltd. (7.20, -1.37%) and Laurus Labs Ltd. (354.55, -0.74%).
7 stocks climbed above their 200 day SMA including Just Dial Ltd. (644.30, 10.00%) and HEG Ltd. (1,098.50, 4.57%). 16 stocks slipped below their 200 SMA including Inox Leisure Ltd. (495.10, -4.12%) and Astral Ltd. (1,975.75, -3.50%).