Trendlyne Analysis
Nifty 50 closed at 19,413.75 (29.5, 0.2%), BSE Sensex closed at 65,558.89 (165.0, 0.3%) while the broader Nifty 500 closed at 16,623.90 (-17.2, -0.1%). Of the 1,968 stocks traded today, 605 were on the uptrend, and 1,311 went down.
Indian indices fell from their day highs but managed to close marginally higher, with the Nifty 50 settling above the 19,400 mark. The Indian volatility index Nifty VIX, stayed flat and below 11%. Hindalco Industries rose over 2.5% and closed in the green, after the company sold its land in Kalwa, Maharashtra, to Century Textiles and Industries, a wholly owned subsidiary of Birla Estates, for Rs 595 crore.
Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, underperforming the benchmark index. Nifty Metal and Nifty IT closed higher than Wednesday’s close. According to Trendlyne's sector dashboard, Software & Services was the top-performing sector of the day.
European indices traded in the green, in line with the Asian indices, which closed higher amid positive global cues. US index futures also traded in the green, extending their gains from Wednesday. Brent crude oil futures traded marginally higher after rising 3% in the past two trading sessions.
Relative strength index (RSI) indicates that stocks like Olectra Greentech, Mazagon Dock Shipbuilders, Exide Industries and Kalyan Jewellers India are in the overbought zone.
Bhansali Engineering Polymers is falling as its Q1FY24 revenue declines 12.7% YoY to Rs 294.5 crore. However, its net profit grows 5.8% YoY to Rs 50.5 crore, owing to a reduction in expenses and tax. The company shows up in a screener of stocks with reducing RoCE over the past two years.
5Paisa Capital rises to a new 52-week high of Rs 444.3 as its net profit jumps by 96.8% YoY to Rs 14.5 crore in Q1FY24 on the back of lower finance costs. Its revenue also increases marginally by 0.6% YoY. The company appears in a screener of stocks with increasing quarterly profits.
Hindalco Industries rises as it sells its land in Kalwa, Maharashtra, to Century Textiles and Industries, a wholly owned subsidiary of Birla Estates, for Rs 595 crore. It appears in a screener of stocks with strong momentum.
Federal Bank's Q1FY24 net profit rises 42.1% YoY to Rs 853.7 crore, while net interest income increases 19.6% YoY. The rise in income is driven by the retail banking segment. The bank features in a screener for stocks with improving net profit over the past four quarters.
Citi India expects CPI to increase to 6.4% in July and 6.1% in August if tomato prices remain unchanged. The brokerage raises its headline CPI forecast to 5.3% from the previous 4.9% and lowers the average core CPI estimate to 4.6% from 4.8% earlier.
Sterling and Wilson Renewable Energy’s Q1FY24 net loss narrows by 73% YoY to Rs 95.5 crore. However, its revenue declines 57.3% YoY due to a 59.8% YoY fall in its EPC (Engineering, Procurement and Construction) segment.
Lupin falls as US FDA issues form 483 with two observations to its Nagpur oral solid dosage facility. The inspections were conducted between July 3 to 11. The company appears in a screener of stocks with decreasing promoter shareholding.
Patanjali Foods falls as its promoter, Patanjali Ayurved, proposes an offer for sale for a 7% equity stake (2.5 crore shares). The shares will be offered at Rs 1,000 per share, and the oversubscription option will represent up to 9% equity shares (32,579,537 shares) of the company. The offer is scheduled to take place on July 13 & 14.
Utkarsh Small Finance Bank's Rs 500 crore IPO gets bids for 16.2X the available 12.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 36.7X of the available 2.2 crore shares on offer.
India's Index of Industrial Production (IIP) grows by 5.2% in May, up from 4.5% in April, driven by robust growth in the manufacturing and mining sectors.
G R Infraprojects is rising as it receives a letter of award for the construction of a four-lane highway worth Rs 737.2 crore in Uttar Pradesh. The stock shows up in a screener for companies with improving cash flows and high durability scores.
IT stocks like Tata Consultancy Services, Infosys, Coforge, LTIMindtree and Mphasis are rising in trade. The broader sectoral index, Nifty IT, is also trading in the green.
HDFC Securities downgrades its rating on Alkyl Amines Chemicals to ‘Sell’ from ‘Reduce’ and lowers the target price to Rs 2,100 from Rs 2,294. This implies a downside of 15.6%. The brokerage believes the company’s margins and realisations will decline due to increased dumping of products by China amid a correction in raw material prices.
DreamFolks is rising as it announces a strategic collaboration with Plaza Premium Group to expand its global lounge network. The collaboration will see the inclusion of more than 340 Plaza Premium lounges in over 70 international airports into DreamFolks’ global lounge network starting from July 24.
Godrej Properties touches a new 52-week high of Rs 1,638.5 after emerging as the highest bidder in an e-auction held by the Haryana Shehri Vikas Pradhikaran. The company has signed a letter of intent for the development of two group housing plots on Golf Course Road, Gurugram. The projects are estimated to have a revenue potential of Rs 3,100 crore.
India’s CPI inflation rises to 4.8% in June after touching a 25-month low of 4.3% in May, due to a surge in food prices. Food inflation rises to 4.5% in June compared to 3% in May.
UltraTech Cement rises as it commissions a brownfield cement capacity of 1.3 mtpa at Sonar Bangla, West Bengal, taking the unit’s capacity to 3.3 mtpa. The company’s total grey cement manufacturing capacity in India now stands at 131.25 mtpa. It appears in a screener for stocks with strong momentum.
Adani Green Energy rises as its sale of energy increases by 69.6% YoY to 602.3 crore units in Q1FY24. The operational capacity of the company also surges by 43% YoY to 8,316 MW. It appears in a screener of stocks with improving RoA.
SpiceJet is rising as its promoter, Ajay Singh, proposes to invest around Rs 500 crore in the airline to strengthen its financial position. This infusion will give the airline additional credit facilities of Rs 206 crore under the emergency credit line guarantee scheme.
Apis Growth sells a 0.91% stake in Star Health and Allied Insurance for approx Rs 323.4 crore in a bulk deal on Wednesday.
Aurobindo Pharma's subsidiary APL Healthcare receives final approval from US FDA to manufacture and sell Sevelamer Hydrochloride tablets. The drug is used to treat chronic kidney diseases. The company appears in a screener of stocks with strong momentum.
Ashish Kacholia buys a 0.1% stake in Agarwal Industrial Corp in Q1FY24. He now holds a 3.9% stake in the company.
- Morgan Stanley maintains its 'Overweight' rating on IndusInd Bank with a target price of Rs 1,725. The brokerage expects the bank's margins to outperform as the rate cycle is peaking. It also anticipates strong Q1 earnings on the back of moderation in credit cost and healthy top-line growth.
Porinju Veliyath buys a 1.4% stake in Aurum Proptech in Q1FY24. He now holds a 3.4% stake in the company.
HCL Technologies falls as its net profit declines by 11.3% QoQ to Rs 3,534 crore in Q1FY24. Its revenue also dips by 1.2% QoQ to Rs 26,296 crore on the back of muted growth in HCL software and IT & business services segments. Moreover, its EBITDA margins contract by 190 bps due to an increase in employee benefit expenses. The company appears in a screener of stocks with declining quarterly revenue.
Tata Consultancy Services is rising despite its net profit falling by 2.8% QoQ to Rs 11,074 crore in Q1FY24. EBITDA margin contracts by 110 bps QoQ owing to an increase in employee benefit expenses. The company appears in a screener of stocks with declining quarterly net profit and profit margin (QoQ).
Riding High:
Largecap and midcap gainers today include Zomato Ltd. (82.20, 6.06%), Supreme Industries Ltd. (3,375.90, 4.28%) and PB Fintech Ltd. (762.85, 3.87%).
Downers:
Largecap and midcap losers today include Federal Bank Ltd. (126.75, -5.59%), Patanjali Foods Ltd. (1,165.10, -5.00%) and JSW Energy Ltd. (298.90, -4.49%).
Volume Rockets
25 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Tejas Networks Ltd. (820.15, 11.24%), Phoenix Mills Ltd. (1,677.90, 6.56%) and Zomato Ltd. (82.20, 6.06%).
Top high volume losers on BSE were Federal Bank Ltd. (126.75, -5.59%), Patanjali Foods Ltd. (1,165.10, -5.00%) and Prestige Estates Projects Ltd. (567.55, -3.01%).
Tanla Platforms Ltd. (1,074.10, 4.59%) was trading at 19.3 times of weekly average. Symphony Ltd. (878.00, -0.40%) and KIOCL Ltd. (194.95, 4.47%) were trading with volumes 13.8 and 13.1 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
54 stocks hit their 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - 3M India Ltd. (28,842.95, 1.36%), Akzo Nobel India Ltd. (2,737.75, 0.56%) and Bajaj Auto Ltd. (4,866.45, -0.25%).
Stocks making new 52 weeks lows included - UPL Ltd. (631.00, -2.00%) and Aarti Industries Ltd. (448.30, -1.58%).
8 stocks climbed above their 200 day SMA including KIOCL Ltd. (194.95, 4.47%) and Tata Consultancy Services Ltd. (3,340.55, 2.47%). 12 stocks slipped below their 200 SMA including Federal Bank Ltd. (126.75, -5.59%) and Delta Corp Ltd. (179.55, -5.25%).