Trendlyne Analysis
Nifty 50 closed at 19,079.60 (-61.3, -0.3%) , BSE Sensex closed at 63,874.93 (-237.7, -0.4%) while the broader Nifty 500 closed at 16,801.10 (-25, -0.2%), of the 1,982 stocks traded today, 989 were on the uptick, and 944 were down.
Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,080. The volatility index, Nifty VIX, rose by 3% and closed at 11.8 points. GAIL’s (India) Q2FY24 net profit increased by 85.8% YoY to Rs 2,444 crore due to lower raw material and inventory expenses. Its revenue dropped by 14.7% YoY on the back of a downturn in its natural gas marketing and LPG & liquid hydrocarbons segments.
Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed flat, with the benchmark index closing lower. Nifty Realty and Nifty Media closed higher than Monday’s closing level. According to Trendlyne’s sector dashboard, fertilizer emerged as the top-performing sector of the day, with a rise of over 4.3%.
Most European indices are trading in the green. US indices futures trade higher, indicating a positive start. According to data released by Eurostat, the Eurozone’s GDP for Q3 increased by 0.1% YoY, against estimates of 0.2% growth.
Relative strength index (RSI) indicates that stocks like Angel One, Swan Energy and CreditAccess Grameen are in the overbought zone.
GE T&D India is rising as it bags orders worth approximately Rs 500 crore from Power Grid Corp of India (PGCIL). The contract involves the supply of power transformers and shunt reactors for PGCIL’s transmission system projects in India. The company shows up in a screener for stocks with the highest recoveries from their 52-week lows.
Indian Oil Corporation rises as it reports a Q2FY24 net profit of Rs 13,114.3 crore, compared to a net loss of Rs 991.6 crore in Q2FY23, aided by lower raw material and inventory expenses. However, its revenue falls by 11.9% YoY due to lower realisation in the petroleum products segment. The company appears in a screener of stocks with increasing quarterly profits for the past three quarters.
DCX Systems surges more than 8% as its net profit grows by 159.3% YoY to Rs 20.4 crore in Q2FY24. Revenue improves by 77.8% YoY, owing to an increased order book from the cables and wire harness segment. Its EBITDA margin expands by 16 bps YoY, aided by reduced finance and other expenses. The company appears in a screener of stocks with the highest recovery from their 52-week lows.
Shalabh Saxena, CEO & MD of Spandana Sphoorty Financial, says the company's AUM could reach Rs 12,000 crore by the end of FY24. He also mentions that they have been producing 5.5-5.8% RoA (Return on Assets), against a forecasted 4.5%. He adds that the company targets an AUM of Rs 15,000 crore by FY25, as stated in their Vision 2025 plan.
GAIL (India) rises as its Q2FY24 net profit increases 85.8% YoY to Rs 2,444 crore due to lower raw material and inventory expenses. However, its revenue drops by 14.7% YoY on the back of a downturn in its natural gas marketing and LPG & liquid hydrocarbons segments. The company appears in a screener of stocks with growing net profit and margins.
Honasa Consumer's Rs 1,701.4 crore IPO gets bids for 0.1X the available 2.9 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.3X the available 52.5 lakh shares on offer.
Cello World's Rs 1,900 crore IPO gets bids for 1.4X the available 2.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1X the available 1.1 crore shares on offer.
V Vaidyanathan, the MD and CEO of IDFC First Bank, says the bank targets a 24-25% credit growth and over 40% deposit growth in the remaining two quarters of FY24. He also highlights that the bank is set to prioritise deposit over advance growth to repay legacy infrastructure bonds. He also affirms that the IDFC First Bank-IDFC merger is on track.
HDFC Securities upgrades its rating on Ujjivan Small Finance Bank to ‘Buy’ from ‘Add’ and raises the target price to Rs 75 from Rs 50. This implies an upside of 43.3%. The brokerage is positive about the bank’s growth prospects due to its rising disbursements, healthy collections and lower credit costs.
Castrol Indiadeclines despite its Q3CY23(July-September) net profit rising by 3.9% YoY to Rs 194.4 crore due to a fall in raw material costs. Revenue also increases by 5.6% YoY. The stock shows up in a screenerfor companies with a decline in net profit.
GMR Airports Infrastructure is rising despite reporting a net loss of Rs 91 crore in Q2FY24, compared to a net profit of Rs 207.8 crore in Q2FY23. This is due to higher depreciation and interest charges. However, its EBITDA margin has improved to 53% (up 400 bps YoY). The company's revenue has risen 30% YoY, led by strong growth in passenger traffic.
Filatex Indiais falling despite its board of directors approving an expansion of the manufacturing capacity of recycling chips from polyester and textile waste to 20,000 MTPA. The company estimates a capex of Rs 150 crore for the expansion.
Pidilite Industries surges as Goldman Sachs upgrades its rating to 'Buy' from 'Sell' and raises the target price to Rs 2,725. According to the brokerage, the earnings downgrade cycle is now concluded, and the company is witnessing the emergence of new growth opportunities. However, it cautions that a slowdown in housing construction and rising input costs could impact margins.
PSP Projects is rising as it bags multiple construction orders worth Rs 200.3 crore in Gujarat. This takes the total order inflow in FY24 to Rs 958.6 crore. The stock shows up in a screener for companies with improving cash flows and high durability scores.
Blue Star surges to its all-time high of Rs 955 per share as its net profit grows by 66.1% YoY to Rs 70.7 crore in Q2FY24. Revenue expands by 19.5% YoY on the back of the electro-mechanical projects, air conditioning systems and unitary products segments. It features in a screener of stocks with YoY growth in quarterly net profit and profit margin.
Larsen & Toubro's hydrocarbon business bags a contract worth more than Rs 15,000 crore from a Middle Eastern client to set up a gas compression plant.
Sivaramakrishnan Ganapathi, Vice-Chairman & MD of Gokaldas Exports, anticipates a robust H2FY24 after a challenging H1, aided by a large order book. He says the company has added manpower to improve operations. He highlights the acquisition of Atraco Group (a Middle Eastern apparel company) and expects it to contribute to incremental revenue in Q4. Gokaldas Exports' Q2FY24 net profit fell by 48.2% YoY to Rs 23.7 crore, while revenue was down 11.7% YoY.
Honasa Consumer raises Rs 765.2 crore from anchor investors ahead of its IPO by allotting around 2.4 crore shares at Rs 324 each. Investors include Abu Dhabi Investment Authority, Government Pension Fund Global, Goldman Sachs, Smallcap World Inc, Carmignac Portfolio, Franklin Templeton, Invesco, Whiteoak Capital MF, and Nippon Life India.
PSU banks like Union Bank of India, Bank of India, UCO Bank, Indian Bank and Punjab & Sind Bank are rising in trade. Barring Bank of Baroda, all the other constituents of the broader sectoral index, Nifty PSU Bank, are also trading in the green.
DLF rises as its Q2FY24 net profit increases by 30.6% YoY to Rs 622.8 crore due to decreased employee expenses and finance costs. Its revenue also grows by 8.5% YoY. The stock shows up in a screener for companies with strong momentum.
Jefferies maintains its 'Buy' rating on UPL but cuts the target price to Rs 675. The brokerage cites the company's Q2 sales shortfall, attributing it to global channel destocking and increased pricing pressures. It reduces the FY24-26 EPS estimates by 9-10% but sees an improvement in H2.
APL Apollo Tubes falls despite its net profit growing by 35.1% YoY to Rs 202.9 crore in Q2FY24. Revenue improves by 16.7% YoY, aided by increased sales volumes of Apollo Structural, Apollo Z and Apollo Galv. It appears in a screener of stocks with high FII holdings.
Marico is falling despite its Q2FY24 net profit rising 17.3% YoY to Rs 353 crore, led by lower raw material costs. Its revenue falls by 0.8% YoY on the back of price cuts and a sluggish pace of recovery in rural demand. The stock shows up in a screener for companies with high promoter stock pledges.
Tata Motors rises as it wins an arbitration case to recover Rs 766 crore from West Bengal Industrial Development Corp for their Sinur Nano Project. The company appears in a screener of stocks with strong annual EPS growth.
TVS Motor Co’s Q2FY24 net profit remains flat YoY at Rs 386.3 crore due to higher cost of materials and employee expenses. Its revenue rises 16% YoY to Rs 9,932.8 crore, led by a 5% YoY growth in overall sales volume. The stock shows up in a screener for companies with declining cash flows from operations over the past two years.
Riding High:
Largecap and midcap gainers today include Pidilite Industries Ltd. (2,458.00, 6.31%), Procter & Gamble Hygiene & Healthcare Ltd. (17,500.00, 4.90%) and Patanjali Foods Ltd. (1,367.90, 4.52%).
Downers:
Largecap and midcap losers today include Supreme Industries Ltd. (4,329.25, -4.26%), Siemens Ltd. (3,330.95, -2.90%) and Mahindra & Mahindra Ltd. (1,458.60, -2.62%).
Volume Shockers
21 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Piramal Pharma Ltd. (104.50, 9.48%), Pidilite Industries Ltd. (2,458.00, 6.31%) and Nippon Life India Asset Management Ltd. (391.45, 5.54%).
Top high volume losers on BSE were DCM Shriram Ltd. (926.50, -4.88%), CCL Products India Ltd. (590.15, -4.53%) and Fine Organic Industries Ltd. (4,419.70, -3.67%).
Blue Star Ltd. (884.65, 1.43%) was trading at 21.1 times of weekly average. Galaxy Surfactants Ltd. (2729.75, 4.74%) and V-Guard Industries Ltd. (297.55, -1.81%) were trading with volumes 13.7 and 5.8 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
9 stocks took off, crossing 52 week highs, while 3 stocks tanked below their 52 week lows.
Stocks touching their year highs included - Blue Star Ltd. (884.65, 1.43%), Canara Bank (384.35, 0.46%) and Motilal Oswal Financial Services Ltd. (1,038.05, 2.28%).
Stocks making new 52 weeks lows included - Petronet LNG Ltd. (199.60, -1.04%) and UPL Ltd. (540.50, 0.34%).
14 stocks climbed above their 200 day SMA including Triveni Turbine Ltd. (359.20, 6.05%) and City Union Bank Ltd. (138.10, 3.33%). 15 stocks slipped below their 200 SMA including CCL Products India Ltd. (590.15, -4.53%) and TeamLease Services Ltd. (2,346.20, -3.71%).