Trendlyne Analysis
Nifty 50closed at 17,721.50 (-43.1, -0.2%), BSE Sensex closed at 60,286.04 (-220.9, -0.4%) while the broader Nifty 500 closed at 14,902.20 (-32.0, -0.2%).
Market breadth is in the red. Of the 1,949 stocks traded today, 777 were on the uptrend, and 1,118 went down. Banking stocks recouped losses after a Fitch rating report noting that Indian banks' exposure to Adani Group would not pose a risk their credit profiles. It added that the economic and sovereign implications of the Adani Group controversy remain limited.
Adani Enterprises closes 14% higher after several days of technical weakness. Adani Wilmar closes in the upper circuit. Adani Green and Adani Power close in the lower circuit. Adani group paid back USD 1.12 billion ahead of schedule to release pledged shares in Adani Ports, Adani Green, and Adani Enterprises.
Nifty Smallcap 100 and Nifty Midcap 100 close in the red, taking cues from the benchmark index. Nifty FMCG closes in the red, led by the heavyweight ITC, as the government weighs stake sale in ITC.
Major Asian indices close in the green, except for Australian ASX All Ordinaries which closed negative. European indices trade in the red as strong US jobs data stoke rate hike fears. US indices futures are also in the red as investors wait for Fed’s commentary on rate hikes.
Hindalco Industries sees a short buildup in its February 23 future series as its open interest rises 11.9% with a put-call ratio of 0.32.
Fitch Ratings says that Indian banks' exposure to Adani Group is insufficient to risk their credit profiles. It adds that the economic and sovereign implications of the Adani Group controversy are limited.
Aditya Birla Fashion and Retail is falling as its Q3FY23 net profit falls 91.7% YoY to Rs 15.8 crore due to higher other expenses, raw material costs and employee expenses. However, its revenue grows by 20.1% YoY driven by its Madura Fashion & Lifestyle segment. The stock shows up in a screener for companies with declining net cash flow.
Oil and Natural Gas Corp will explore investing in gas assets in Argentina, according to reports. The company also signs a memorandum of understanding with Argentina’s oil company YPF for hydrocarbon projects. The stock is rising in a volatile market.
Canara Bank appoints Satyanarayana Raju as Managing Director and Chief Executive Officer with effect from today.
Brent crude oil prices trade above the $80 per barrel mark amid demand recovery in China. Copper, zinc and aluminium prices are falling over demand concerns.
Adani Ports & SEZ is rising despite its Q3FY23 net profit falling 16% YoY to Rs 1,315.5 crore on account of higher operating expenses, employee costs and forex losses. Revenue rises 17.5% YoY as its cargo and container volumes increase. The stock shows up in a screener for companies with high promoter stock pledges.
FSN E-Commerce Ventures (Nykaa) is rising as Jefferies cuts its target price to Rs 200 from Rs 275 but maintains its ‘Buy’ rating, according to reports. The brokerage says there are rising concerns over urban demand due to a high base and slow hiring in the IT segment.
PVR rises after announcing the record date for the transfer of shares to eligible Inox Leisure shareholders as February 17, as part of the PVR-Inox merger. It features in a screener of turnaround companies – loss to profit QoQ.
Hindalco is falling as its arm Novalis sees a 95% drop in net profit to $12 million due to high energy and freight costs. Revenue also declines 2.9% YoY on lower sales volumes due to beverage cans destocking by customers.
National Aluminium Co, Steel Authority of India and Tata Steel are trading below their second support or S2 level.
Economists expect the Reserve Bank of India (RBI) to slow down interest rate hikes as inflation cools. However, a 25 bps hike is expected in the ongoing monetary policy committee meeting.
Advertising & Media, Cigarette-Tobacco Products and Commercial Vehicles industries rise more than 8% in the past month.
KRChoksey keeps its ‘Buy’ rating on Housing Development Finance Corp (HDFC) and raises its target price to Rs 3,240 from Rs 2,989. This indicates an upside of 21%. The brokerage expects HDFC’s margins to remain stable on the back of improving yields. They see healthy growth in assets under management led by robust housing demand.
Vinati Saraf Mutreja, Managing Director & CEO of Vinati Organics, expects the company’s EBITDA margin to be around 30% in FY23. She says it aims for revenue growth of 20% in FY24.
Metal stocks like Tata Steel, Hindalco Industries, Vedanta, Steel Authority of India and National Aluminium Co are falling in trade. The broader sectoral index BSE Metal is also trading in the red.
Muthoot Finance is falling as its Q3FY23 net profit declines 10.8% YoY to Rs 927.7 crore and revenue dips by 4.6% YoY. However, its consolidated loan assets under management rise on a YoY basis. The stock shows up in a screener for companies with declining RoE over the past two years.
- Indian rupee appreciates to 82.65 from the previous close of 82.73 against the US dollar in early trade today, due to a weaker greenback in the global markets.
LIC Housing Finance rises even as its Q3FY23 net profit falls 37.4% YoY to Rs 480.3 crore on higher finance costs. Interest income is up by 17% YoY. It shows up in a screener of stocks with high momentum scores and undervalued growth stocks.
Samvardhana Motherson, Shree Cements and Cummins India rise 8.1%, 7.6% and 4.3% respectively over the past week, ahead of their Q3FY23 results tomorrow.
SJVN’s Q3FY23 net profit rises 22% YoY to Rs 287.4 crore as its total revenue increases 16.5% YoY. Revenue from operations improves marginally but revenue from other income goes up 2.5X. The company also reports a surge in finance costs in Q3. It shows up in a screener of mutual funds decreasing shareholdings over the past quarter.
Tata Steel posts a net loss of Rs 2,223.8 crore in Q3FY23 compared to a net profit of Rs 9,572.7 crore in Q3FY22 on rising raw material costs and non-cash deferred tax expenses. Revenue declines 6.1% YoY on the back of a slowdown in demand and fall in global steel prices. The stock shows up in a screener for companies with high promoter pledges.
Riding High:
Largecap and midcap gainers today include Adani Enterprises Ltd. (1,802.95, 14.64%), Gland Pharma Ltd. (1,306.85, 11.44%) and Varun Beverages Ltd. (1,304.10, 6.73%).
Downers:
Largecap and midcap losers today include Tata Steel Ltd. (111.45, -5.11%), Adani Green Energy Ltd. (844.65, -5.00%) and Adani Total Gas Ltd. (1,464.20, -5.00%).
Crowd Puller Stocks
20 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Gland Pharma Ltd. (1,306.85, 11.44%), Garware Technical Fibres Ltd. (3,109.80, 5.85%) and Triveni Turbine Ltd. (278.70, 5.61%).
Top high volume losers on BSE were Balaji Amines Ltd. (2,172.40, -5.57%), Adani Green Energy Ltd. (844.65, -5.00%) and Adani Total Gas Ltd. (1,464.20, -5.00%).
Eureka Forbes Ltd. (475.00, 0.81%) was trading at 38.3 times of weekly average. Adani Power Ltd. (173.25, -4.99%) and Hitachi Energy India Ltd. (3,002.35, -3.41%) were trading with volumes 32.7 and 13.5 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
5 stocks took off, crossing 52-week highs, while 15 stocks tanked below their 52-week lows.
Stocks touching their year highs included - Blue Star Ltd. (1,371.50, 0.40%), Britannia Industries Ltd. (4,606.85, -0.41%) and Zydus Lifesciences Ltd. (479.45, 1.98%).
Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,252.20, -0.34%) and Alembic Pharmaceuticals Ltd. (522.90, -1.02%).
21 stocks climbed above their 200 day SMA including Zensar Technologies Ltd. (245.30, 5.44%) and One97 Communications Ltd. (588.60, 5.43%). 9 stocks slipped below their 200 SMA including LIC Housing Finance Ltd. (376.10, -3.12%) and KIOCL Ltd. (196.80, -2.55%).