Trendlyne Analysis
Nifty 50 closed at 19,745.00 (-234.2, -1.2%), BSE Sensex closed at 66,684.26 (-887.6, -1.3%) while the broader Nifty 500 closed at 16,904.30 (-138.3, -0.8%). Of the 1,937 stocks traded today, 862 were in the positive territory and 1,014 were negative.
Indian indices extended their losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,745. The volatility index, Nifty VIX, dropped by 2.9% and closed at 11.4 points. JSW Steel’s net profit surged 2.9x YoY to Rs 2,428 crore in Q1FY24.
Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed lower, following the benchmark index. Nifty IT and Nifty FMCG closed sharply lower compared to Thursday’s closing levels. According to Trendlyne’s sector dashboard, healthcare equipment and supplies emerged as the top-performing sector of the day, with a rise of over 2.1%.
Most European indices trade in the green, except for Germany’s DAX trading lower. US indices futures trade higher, indicating a positive start. Tesla shares traded 9.7% lower post results, despite reporting earnings of $0.91 per share, beating the consensus estimates of $0.79
Money flow index (MFI) indicates that stocks like Polycab India, Mahindra Holidays & Resorts India, Sterling and Wilson Renewable Energy and Zensar Technologies are in the overbought zone.
Can Fin Homes and APL Apollo Tubes touch their 52-week highs of Rs 845.45 and Rs 1,438.80 respectively. The former has risen 11.7% over the past month, while the latter increased by 5%.
Glenmark Lifesciences falls despite its profit increasing by 23.4% YoY to Rs 135.5 crore in Q1FY24 due to falling inventory expenses. Its revenue rises by 18.1% YoY. The company appears in a screener of stocks with increasing quarterly revenue.
UltraTech Cement is falling despite its Q1FY24 net profit rising by 6.6% YoY to Rs 1,688.5 crore and revenue growing 17% YoY. However, the EBITDA margin declines 320 bps YoY to 17.2% due to rising raw material costs, power & fuel expense and freight costs. The stock shows up in a screener for companies with declining net cash flows.
HDFC Life Insurance's Q1FY24 profit rises 15.4% YoY to Rs 415.3 crore and assets under management increase by 19% YoY. Total annualized premium equivalent and value of new business also improve in line with profit. The company features in a screener for stocks with low debt.
Hindustan Zinc is falling as its net profit declines by 36.5% YoY to Rs 1,964 crore in Q1FY24. Revenue also plunges by 23% YoY due to lower lead, zinc and silver volumes. Its EBITDA margin contracts 876 bps on account of higher raw material and inventory costs. The company features in a screener of stocks with high increase in promoter pledges.
Ashok Leyland rises as its net profit increases by 699.3% YoY to Rs 543.9 crore in Q1FY24. Its revenue also grows by 34.3% YoY on the back of robust growth in the commercial vehicles and financial services segment. The company appears in a screener of stocks with strong momentum.
Capital goods stocks like Suzlon Energy, Larsen & Toubro, Sona BLW Precision Forgings andLakshmi Machine Works are rising in trade. The broader sectoral index BSE Capital Goods is also trading in the green.
ICICI Securities maintains its ‘Buy’ rating on Finolex Industries and raises the target price to Rs 230 from Rs 210. This implies an upside of 22.3%. The brokerage remains positive about the firm’s prospects, citing demand and margin tailwinds driven by lower raw material prices in the agri and non-agri segments.
PVR INOX rises over 4% in trade following the announcement of a 12-screen Superplex in Bangalore. The upcoming theatrical releases are also supporting the rise in share price.
JSW Steel rises to its all-time high of Rs 823.4 per share as its net profit surges 2.9x YoY to Rs 2428 crore in Q1FY24. Revenue grows 10.8% YoY on the back of improvement in steel sales. Its EBITDA margin expands by 538 bps YoY, owing to reduced power and fuel expenses. The company features in a screener of stocks where FIIs and FPIs are increasing their shareholdings.
Persistent Systems plunges as its net profit falls 9% QoQ to Rs 228.8 crore in Q1FY24. Revenue grows 3% QoQ owing to improvements in the banking, financial services & insurance (BFSI) and software, hi-tech and emerging industries segments. The company appears in a screener of stocks with decreasing net profit and profit margin (QoQ).
IT stocks like Infosys, Persistent Systems, Tech Mahindra, HCL Technologies and Coforge are falling in trade. The broader sectoral index, Nifty IT, is also trading in the red.
REC plans to sign MoUs worth Rs 2 lakh crore with over 20 renewable energy companies (from both public and private sectors) to support their energy transformation projects, say reports. These projects include renewable energy sources like solar, wind, green hydrogen, decarbonization, and battery storage.
Mphasis rises as its net profit increases by 2.4% QoQ to Rs 456.3 crore in Q1FY24. However, its revenue falls by 3.2% QoQ due to a decline in the banking and financial services segment. Its EBITDA margins improve by 50 bps on the back of reduced employee benefit expenses. The company appears in a screener of stocks with growing quarterly net profit.
Tanla Platforms is rising as its net profit grows by 12.6% QoQ to Rs 135.4 crore in Q1FY24. Revenue improves by 9.3% QoQ aided by growth in the digital platforms and enterprise communications segments. It features in a screener of stocks with increasing net profit for the past four quarters.
Larsen & Toubro touches a new 52-week high today as it wins an order worth more than Rs 7,000 crore from the National High-Speed Corp for the construction of a 135.45 km stretch of Mumbai-Ahmedabad high-speed rail project. It appears in a screener of stocks with strong momentum.
A Manimekhalai, MD and CEO of Union Bank of India, says the bank targets to maintain its credit costs at 1% or lower, and net interest margins at 3%. She highlights that it has delivered a strong performance in Q1FY24, with advances and deposits surpassing the guidance.
Dolly Khanna buys a 0.3% stake in Monte Carlo Fashions in Q1FY24. She now holds a 2.4% stake in the company.
Shares of Utkarsh Small Finance Bank debut on the bourses at a 60% premium to the issue price of Rs 25. The Rs 500 crore IPO has received bids for 101.9 times the total shares on offer.
Sunil Singhania cuts stake in Tracxn Technologies to below 1% in Q1FY24, as compared to 1.3% held in Q4FY23.
Nomura maintains its 'Buy' rating on Coforge with a target price of Rs 5,300. The brokerage says that the company has reported healthy Q1FY24 earnings with robust revenue growth due to strong order booking. It expects AI to drive revenue in the medium term. Meanwhile, Motilal Oswal reiterates its 'Neutral' stance, stating that the strong earnings are already factored into the stock price.
Mohnish Pabrai buys a 0.6% stake in Edelweiss Financial Services in Q1FY24. He now holds a 7.6% stake in the company.
Jindal Stainless is rising as it acquires a 74% stake in Jindal United Steel (JUSL) for Rs 958 crore. Earlier, Jindal Stainless held a 26% stake in JUSL, making it now a 100% owned subsidiary. Abhyuday Jindal, MD of Jindal Stainless, says, “This acquisition would result in improved synergies between both the companies and a preferred governance structure, thereby enhancing value for all stakeholders.”
Hindustan Unilever’s Q1FY24 net profit rises by 7.3% YoY to Rs 2,554 crore, as raw material costs and inventory expenses fall. Its revenue grows by 6% YoY, driven by robust growth in the home care segment. The stock shows up in a screener for companies with improving cash flows over the past two years.
Infosys’ Q1FY24 net profit falls 3% QoQ to Rs 5,945 crore due to rising employee expenses and sub-contractor costs. The firm’s revenue grows 10% QoQ, led by the manufacturing and hi-tech business verticals. The management says the impact is on the back of slow decision-making and low client spending, and revises its FY24 revenue guidance to 1-3.5% from 4-7% in constant currency.
Riding High:
Largecap and midcap gainers today include United Spirits Ltd. (1,039.05, 6.56%), Atul Ltd. (7,014.15, 6.56%) and MphasiS Ltd. (2,330.85, 5.28%).
Downers:
Largecap and midcap losers today include Infosys Ltd. (1,331.60, -8.13%), Persistent Systems Ltd. (4,749.60, -5.83%) and Dalmia Bharat Ltd. (1,920.00, -5.00%).
Volume Rockets
26 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Tanla Platforms Ltd. (1,266.10, 13.32%), IndiaMART InterMESH Ltd. (3,151.00, 8.64%) and Rites Ltd. (454.70, 7.19%).
Top high volume losers on BSE were Infosys Ltd. (1,331.60, -8.13%), Dalmia Bharat Ltd. (1,920.00, -5.00%) and Hindustan Unilever Ltd. (2,604.00, -3.67%).
Atul Ltd. (7,014.15, 6.56%) was trading at 19.8 times of weekly average. General Insurance Corporation of India (194.15, 3.66%) and Indian Railway Finance Corporation Ltd. (34.95, 5.11%) were trading with volumes 10.6 and 7.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
40 stocks overperformed with 52-week highs, while 1 stock tanked below their 52-week lows.
Stocks touching their year highs included - Ashok Leyland Ltd. (181.85, 3.50%), Aurobindo Pharma Ltd. (779.55, 0.90%) and Bharat Heavy Electricals Ltd. (94.50, -1.31%).
Stock making new 52 weeks lows included - Atul Ltd. (7,014.15, 6.56%).
4 stocks climbed above their 200 day SMA including MMTC Ltd. (34.15, 3.02%) and Trident Ltd. (33.25, 1.37%). 5 stocks slipped below their 200 SMA including Infosys Ltd. (1,331.60, -8.13%) and TTK Prestige Ltd. (784.35, -1.82%).