Trendlyne Analysis
Indian indices settled in the red after gyrating between losses and gains on a volatile day of trade. European indices traded lower than Tuesday's levels. Most major Asian indices closed lower, despite the US indices closing higher on Tuesday. US stocks rose as investors’ focus shifted toward the mid-term elections that will determine control of the US Congress. Investors also look ahead to the US inflation print, scheduled to be released tomorrow. The tech-heavy NASDAQ 100 rose nearly 0.8% while the Dow Jones closed 1% higher on Tuesday. Brent crude oil futures extended its losses and traded lower after falling almost 3% on Tuesday on speculations over new lockdowns in China as Covid-19 cases rebound.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Bank closed higher than Monday’s close. Nifty IT closed in the red, despite the NASDAQ 100 closing higher on Tuesday.
Nifty 50closed at 18,157.00 (-45.8, -0.3%), BSE Sensexclosed at 61,033.55 (-151.6, -0.3%) while the broader Nifty 500closed at 15,567.25 (-47.9, -0.3%)
Market breadth is in the red. Of the 1,933 stocks traded today, 864 were on the uptrend, and 1,024 went down.
Relative strength index (RSI) indicates that stocks like Indian Railway Finance Corp, Mazagon Dock Shipbuilders, Bank of India, and Rail Vikas Nigam are in the overbought zone.
Barbeque-Nation Hospitality's Q2FY23 net profit rises 142.6% YoY to Rs 7.1 crore. Rise in revenue helps EBITDA margin rise 10 bps YoY to 18.8%. The company features in a screenerof stocks bought by superstar investors.
National Aluminium Co is falling as its Q2FY23 net profit drops 83.2% YoY to Rs 125.4 crore on the back of high raw material prices and power & fuel costs. Revenue drops 2.9% YoY due to a decline in revenue from the aluminium segment. The stock shows up on the screener for companies with declining net profit and profit margin on a YoY basis.
Post their results, stocks like Union Bank of India, Vedanta, and Varun Beverages outperform Nifty 50 by 17.8%, 10.4%, and 8.1% respectively over the week.
TVS Motor is rising as it signs a memorandum of understanding (MoU) with Amazon India to strengthen electric mobility, electric infrastructure and connected services. Amazon will use a fleet of electric two-wheelers and three-wheelers from TVS Motor for their last-mile deliveries. The two companies will also work together with Amazon business groups for its network and logistical requirements.
Archean Chemical Industries’ Rs 1,462.3 crore IPO gets bids for 30% of the available 1.99 crore shares on offer on the first day of bidding, The retail investor quota gets bids for 95% of the available 37 lakh shares on offer. The IPO consists of a fresh issue of Rs 805 crore and an offer for sale of Rs 657.3 crore.
Godrej Properties Q2FY23 net profit rises 53.8% YoY to Rs 54.9 crore despite input costs surging 2.8X YoY. The company also reports a 27.7% increase in revenue YoY as pre-sale bookings increase to Rs 2,409 crore. Godrej Properties also acquired a 12-acre land parcel in Mundhwa, Pune, for a premium housing project with a revenue potential of Rs 2,000 crore.
Five Star Business Finance’s Rs 1,960 crore IPO gets bids for 2% of the available 3.04 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 3% of the available 1.5 crore shares on offer. The IPO consists entirely of an offer for sale of Rs 1,960 crore.
- Divi's Laboratories is falling as 5.11 lakh shares (0.2% equity) amounting to Rs 167.8 crore change hands, according to reports.
Avanti Feeds surges after the US Food & Drug Administration lifts alert on shrimp exports to the US made by the company’s arm, Avanti Frozen Foods. This lift on import alert will enable Avanti Frozen Foods to accelerate the export of value-added shrimp products to the USA.
- Indigo Paints falls to an all-time low of Rs 1,331 after about 4% equity change hands in block deals today. Reports suggest that Sequoia Capital India is looking at offloading up to a 3.3% stake in Indigo Paints.
Coal,Hardware Technology & Equipment, and Cement and Construction industries rise more than 7% in the past month.
ICICI Securities downgrades its rating on Dr Lal Pathlabs to ‘Add’ from ‘Buy’ and lowers its target price to Rs 2,911 from Rs 2,919. This indicates an upside of 10.9%. The brokerage cites lower volume growth and expensive valuations for downgrading its rating on the stock. However, it remains optimistic about the firm’s prospects given its strong brand value and focus on geographic expansion. The brokerage expects the company’s net profit to grow at a CAGR of 11.8% over FY22-24.
Public Sector Banks like Union Bank of India, Punjab & Sind Bank, Bank of Maharashtra, Punjab National Bank, and Central Bank of India are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.
Ittira Davis, Managing Director and CEO of Ujjivan Small Finance, said the bank’s disbursals were more than Rs 4,000 crore in the past four consecutive quarters. This comes after the bank’s disbursements rose 56% YoY to Rs 4,866 crore in Q2FY23.
Coal India is rising as its Q2FY23 net profit jumps 105.8% YoY to Rs 6,043.6 crore, aided by higher other income and deferred tax credit. Revenue rises 28.1% YoY on the back of higher realisations and healthy growth in dispatches. The stock shows up on a screener for companies in the PE Buy zone with a high durability score.
Bharat Forge’s wholly-owned subsidiary Kalyani Strategic Systems wins an export order worth $155.5 million for a 155 mm artillery gun platform. The order is expected to be executed over three years.
PI Industries rises and touches a 52-week high as it reports a 46% YoY rise in net profit to Rs 334.8 crore in Q2FY23. Revenue increases 31% YoY led by domestic volume growth, favourable pricing and rising exports. The company shows up on a screener of stocks with improving book value for the past two years.
Metropolis Healthcare falls after reporting a fall in net profit by 30.8% YoY to Rs 40.3 crore in Q2FY23. Revenue fell 0.8% YoY, however, rose 7.3% QoQ. Ameera Shah, Promoter and Managing Director said, “Our revenue contribution from the wellness segment increased to 12% in Q2FY23 & witnessed a healthy growth of 40% on a YoY basis”. The company shows up on a screener of stocks with improving cash flow over the last two years.
Ashish Kacholia buys a 1% stake in Ador Welding during Q2FY23, now holds 4.2% in the company.
Indian rupee rises to 81.39 from Monday’s close of 81.91 against the US dollar in early trade today.
Birla Corp's Managing Director and Chief Executive Officer Arvind Pathak resigns due to personal reasons. His resignation will be effective from December 31, 2022.
Bosch’s Q2FY23 net profit rises marginally by 0.3% YoY to Rs 373.6 crore with revenue increasing 25.5% YoY. Expenses remain high on high raw material costs with a 35.8% YoY increase. Soumitra Bhattacharya, Managing Director of the company, says, “Although supplies in semiconductor eased out, the supply chain ecosystem remains fragile. Despite these uncertainties, including rising input costs, we expect to build on the strong performance of this quarter.”
Riding High:
Largecap and midcap gainers today include PI Industries Ltd. (3,623.70, 9.90%), Union Bank of India (64.05, 9.39%) and Bank of India (76.95, 8.92%).
Downers:
Largecap and midcap losers today include Dr. Lal Pathlabs Ltd. (2,405.80, -8.36%), MRF Ltd. (87,017.45, -8.31%) and Jubilant Foodworks Ltd. (566.45, -7.55%).
Movers and Shakers
44 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included PI Industries Ltd. (3,623.70, 9.90%), Union Bank of India (64.05, 9.39%) and Punjab National Bank (44.95, 7.41%).
Top high volume losers on BSE were Privi Speciality Chemicals Ltd. (1,199.30, -8.45%), Dr. Lal Pathlabs Ltd. (2,405.80, -8.36%) and MRF Ltd. (87,017.45, -8.31%).
3M India Ltd. (23,483.95, 4.84%) was trading at 12.8 times of weekly average. Cera Sanitaryware Ltd. (5,256.00, -4.13%) and Ceat Ltd. (1,706.05, 5.53%) were trading with volumes 12.5 and 11.0 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
35 stocks overperformed with 52-week highs, while 3 stocks tanked below their 52-week lows.
Stocks touching their year highs included - Bank of Baroda (166.30, 5.02%), Bank of India (76.95, 8.92%) and Bank of Maharashtra (24.20, 3.86%).
Stocks making new 52 weeks lows included - Divi's Laboratories Ltd. (3,298.75, -3.39%) and Indigo Paints Ltd. (1,430.95, -4.13%).
22 stocks climbed above their 200 day SMA including Vinati Organics Ltd. (2,077.85, 4.87%) and Au Small Finance Bank Ltd. (642.55, 4.25%). 19 stocks slipped below their 200 SMA including Dr. Lal Pathlabs Ltd. (2,405.80, -8.36%) and Jubilant Foodworks Ltd. (566.45, -7.55%).