Trendlyne Analysis
Nifty 50 closed at 19,733.55 (-20.3, -0.1%) , BSE Sensex closed at 66,459.31 (-68.4, -0.1%) while the broader Nifty 500 closed at 17,051.15 (-7.9, -0.1%). Of the 1,950 stocks traded today, 1,146 were in the positive territory and 745 were negative.
Indian indices pare the early gains from the morning session and close flat, with the Nifty 50 closing at 19,734. The volatility index, Nifty VIX, dropped by 1.2% and closed at 10.3 points. Bosch’s Q1FY24 net profit increases by 22.5% YoY to Rs 409 crore against the consensus estimates of Rs 384 crore.
Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed flat, following the benchmark. Nifty IT and Nifty Metal closed higher, compared to Monday’s closing levels. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 4.3%.
Most European indices trade in the red. US indices futures trade lower, indicating a negative start. The data released by Hamburg Commercial Bank (HCOB) indicated that the Eurozone’s July manufacturing purchasing managers’ index (PMI) contracted to 42.7 from 43.4 in June. The Eurozone manufacturing PMI for July is at a 38-month low, with the sharpest decline reported from France, Germany, Austria and Ireland.
Escorts Kubota sees a long buildup in its August 31 future series as its open interest rises 29% with a put-call ratio of 0.72.
Escorts Kubota touches a 52-week high as its net profit jumps 106.2% to Rs 289.9 crore in Q1FY24. Its revenue rises 15.9% YoY to Rs 2,355.2 crore. The company features in a screener of stocks with strong momentum.
Yes Bank rises as it clarifies reports about the acquisition of Spandana Sphoorthy. The bank aims to enhance its business in priority sectors through organic and inorganic sources, but at present, it has not made any acquisitions. It appears in a screener of stocks with increasing profits for the past two quarters.
PVR Inox rises despite reporting a net loss of Rs 44.1 crore in Q1FY24, against a net profit of Rs 68.3 crore in Q1FY23. The loss is due to higher consumption of food & beverage and finance expenses. Its revenue grows by 32.4% YoY on the back of robust growth in the movie exhibition segment. The company appears in a screener of stocks with declining net profit and margins.
Mahindra & Mahindra is rising as its total auto wholesales in July grow by 18% YoY to 66,124 units. The increase is led by utility vehicle sales volumes increasing by 30% YoY to 36,205 units, its highest-ever SUV sales in a month. The company’s farm equipment segment also sees its total wholesales rise by 8% due to healthy domestic demand, which offsets the fall in exports.
Coal India rises as its July production grows by 13.4% YoY to 53.6 metric tons. The company appears in a screener of stocks with improving RoA.
India’s fiscal deficit widens by 21.2% YoY to $4.51 trillion in Q1FY24. This increase is due to a strong improvement in capital expenditure, a rise in tax devolution to state governments, and efforts to offset the increase in non-tax revenues.
Ambuja Cements, Carborundum Universal, Engineers India and Hindustan Petroleum’s weekly average delivery volumes rise ahead of their Q1FY24 results tomorrow.
Axis Direct downgrades its rating on IDFC First Bank to ‘Hold’ from ‘Buy’ but raises the target price to Rs 90. This implies an upside of 1.9%. The brokerage sees a limited upside for the stock, given its current valuation. However, it remains positive about the bank’s prospects due to its stable margins, strong growth in advances, and improving asset quality.
Bosch rises as its Q1FY24 net profit increases by 22.5% YoY to Rs 409.3 crore. Its revenue also grows by 20.7% YoY, driven by the automotive products segment. The company appears in a screener of stocks with high TTM EPS growth.
Bajaj Auto’s total monthly wholesales in July fall by 10% YoY to 3,19,747 units due to a 15% YoY decline in total two-wheeler wholesales. However, the company’s commercial vehicle wholesales rise by 29% YoY. The stock shows up in a screener for companies with declining cash flows.
Larsen & Toubro's arm, L&T Construction, wins multiple orders worth Rs 2,500-5,000 crore for its heavy civil infrastructure business. The orders include an underground metro project from Rail Vikas Nigam and a mandate and rehabilitation of structures for special systems from a Middle Eastern client.
Hero MotoCorp's stock falls over 4% as ED reportedly raids its chairman Pawan Munjal’s residence in connection with a case by the Directorate of Revenue Intelligence. It appears on a screener for volume shocker stocks.
Reliance Jio gains 30.4 lakh wireless subscribers in May on a net basis, while Bharti Airtel adds 13.3 lakh and Vodafone Idea loses 28.9 lakh.
Cochin Shipyard rises as it is upgraded to 'Schedule A' from 'Schedule B' of central public sector enterprise. This will enable the company to operate with the larger senior management capacity required for managing its seven units across the country. The company appears in a screener of stocks nearing a 52-week high with significant volumes.
IRB Infrastructure Developers is falling as its Q1FY24 net profit decreases by 63.2% YoY to Rs 133.8 crore due to increased roadwork and site expenses. Revenue also declines by 12.5% YoY due to poor performance in the construction & unallocated corporate segment. It appears in a screener of stocks with weak momentum.
Reliance Industries is falling despite signing an MoU with Brookfield Asset Management to explore opportunities to manufacture renewable energy and decarbonization equipment in Australia. Brookfield has outlined a plan to invest $20-30 billion over the next 10 years to accelerate its energy transition.
Petronet LNG is rising as its Q1FY24 net profit increases by 13% YoY to Rs 819.3 crore, aided by a 20.2% YoY fall in the cost of raw materials. However, its revenue declines by 18.3% YoY to Rs 11,656.4 crore. The stock shows up in a screener for companies with net profit growth and profit margin growth.
Transport Corporation of India is rising as its Q1FY24 net profit increases by 5.9% YoY to Rs 82.3 crore. However, its revenue falls by 4.6% YoY due to poor performance in the seaways division. It appears in a screener of companies with zero promoter pledge.
- India’s manufacturing PMI falls marginally to 57.7 in July from 57.8 in June. The PMI reading, however, stays above the 50-mark for the 25th consecutive month, indicating an expansion in manufacturing activity.
Rail Vikas Nigam rises as it bags two projects worth Rs 331.6 crore from Madhya Pradesh Poorv Kshetra Vidyut Vitran Co. The order involves the supply, installation, testing and commissioning of new transmission lines in two packages of Jabalpur Company Area. The company appears in a screener of stocks with improving cash flow from operations.
Sterling and Wilson Renewable Energy is falling as promoter Shapoorji Pallonji and Co sells a 0.4% stake in the company. It now holds an 18.1% stake.
DLF is falling as reports suggest that a promoter sells a 0.9% stake worth Rs 1,185 crore in the company in a block deal.
Jefferies downgrades its rating on GAIL to 'Underperform' with a target price of Rs 105. The brokerage says the company's Q1FY24 results took a hit due to the transmission and petrochemical segments. It also expects high gas prices to restrain EBITDA growth in transmission.
Engineers India is falling despite bagging an order worth Rs 837.3 crore from Oil and Natural Gas Corp for the renovation of the Hazira plant in Gujarat. The project is estimated to be completed in 45 months. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.
KEI Industries falls despite its Q1FY24 net profit rising by 17% YoY to Rs 121.4 crore due to lower inventory expenses. However, its revenue grows by 14.1% YoY on the back of the cables & wires and engineering, procurement & construction projects segments. The company appears in a screener of stocks with improving book value per share.
- Centre raises windfall tax on locally produced crude oil to Rs 4,250 per tonne from Rs 1,600 earlier. It also increases the export tax on diesel to Rs 1 per litre from 'Nil', while keeping it unchanged on petrol and aviation turbine fuel (ATF).
Adani Energy Solutions (formerly Adani Transmission) rises despite its Q1FY24 net profit decreasing by 5.9% YoY to Rs 175.1 crore. However, its revenue grows by 16.1% YoY on the back of robust growth in the generation, transmission & distribution and trading segments. The company appears in a screener of stocks with declining quarterly profits.
Maruti Suzuki India’s Q1FY24 net profit jumps 143.7% YoY to Rs 2,525.2 crore, aided by better realisations and a 14.3% YoY decline in raw materials prices. The revenue rises by 22% YoY, driven by a 6.4% YoY growth in total sales volume in Q1. The stock shows up in a screener for companies with high TTM EPS growth.
Riding High:
Largecap and midcap gainers today include IDBI Bank Ltd. (62.95, 8.63%), Atul Ltd. (7210.30, 6.09%) and Indian Railway Finance Corporation Ltd. (40.50, 6.02%).
Downers:
Largecap and midcap losers today include Power Grid Corporation of India Ltd. (251.80, -5.36%), Polycab India Ltd. (4,630.20, -3.87%) and Max Healthcare Institute Ltd. (572.30, -3.80%).
Crowd Puller Stocks
38 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KIOCL Ltd. (237.95, 15.09%), Jindal Worldwide Ltd. (339.50, 9.68%) and IDBI Bank Ltd. (62.95, 8.63%).
Top high volume losers on BSE were KEI Industries Ltd. (2,270.35, -6.55%), Aptus Value Housing Finance India Ltd. (267.90, -5.34%) and Hero MotoCorp Ltd. (3,102.10, -3.17%).
Affle (India) Ltd. (1,138.85, 6.06%) was trading at 9.8 times of weekly average. Polyplex Corporation Ltd. (1,282.70, 4.79%) and Grindwell Norton Ltd. (2,439.50, 5.24%) were trading with volumes 8.3 and 8.1 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
70 stocks took off, crossing 52 week highs, while 1 stock tanked below their 52 week lows.
Stocks touching their year highs included - Akzo Nobel India Ltd. (2,820.00, 1.61%), Apollo Tyres Ltd. (427.25, -1.28%) and Astral Ltd. (2,000.60, 1.59%).
Stock making new 52 weeks lows included - UPL Ltd. (625.70, 0.16%).
18 stocks climbed above their 200 day SMA including KIOCL Ltd. (237.95, 15.09%) and Jindal Worldwide Ltd. (339.50, 9.68%). 4 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (267.90, -5.34%) and Blue Dart Express Ltd. (6,611.30, -1.74%).