Trendlyne Analysis
Indian indices pared their early gains but closed in the green, with the volatility index, India VIX, falling significantly. The Nifty 50 rose close to 125 points and closed above the 17,650 mark. Investors look ahead to the domestic consumer price index or CPI print, to be released on Friday. European indices followed the global trend and traded higher than Wednesday’s levels. Major Asian indices closed higher, tacking the US indices, which closed sharply higher on Wednesday. US stocks rose as US July CPI rose 8.5%, 200 bps below analysts’ expectations. The tech-heavy index, NASDAQ 100, rose 2.9% while the Dow Jones closed 1.6% higher. Brent crude oil futures traded higher after closing in the green on a volatile day of trade on Wednesday.
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty Realty closed higher than Wednesday’s levels. Nifty IT closed sharply higher, taking cues from the NASDAQ 100, which closed in the green on Wednesday.
Nifty 50closed at 17,659.00 (124.3, 0.7%), BSE Sensexclosed at 59,332.60 (515.3, 0.9%) while the broader Nifty 500closed at 15,095.15 (109.4, 0.7%)
Market breadth is balanced. Of the 1,897 stocks traded today, 936 showed gains, and 901 showed losses.
CSB Bank, Ajanta Pharma, Aditya Birla Sun Life AMC, and GlaxoSmithKline Pharmaceuticals are trading with higher volumesas compared to Wednesday.
Mahanagar Gas sees a long build-up in its August 25 future series as its open interest rises 16.7% with a put-call ratio of 0.69.
Jefferies India says the consensus Nifty EPS estimates are down by 2.5% for FY23 after the Q1FY23 results season.
Stocks like Fine Organic Industries, Adani Enterprises, Tata Chemicals, IDFC First Bank, and ZF Commercial Vehicle Control Systems India are in the overbought zone, according to the technical indicator relative strength index or RSI.
IDBI Capital downgrades Indian Hotels to 'Hold' rating from 'Buy' with a target price of Rs 302, indicating an upside of 12%. The brokerage believes that the company's focus on revenue growth, cost optimization, and increasing demand in the business travel segment will help in growth. It expects Indian Hotels' revenue to rise 76% YoY in FY23.
Trent rises to touch a new 52-week high as it posts a profit of Rs 130.5 crore in Q1FY23 compared to a loss of Rs 126.6 crore in Q1FY22. Revenue rises 3.6X YoY which helps boost profit despite a significant rise in input costs. It shows up on a screener with stocks that are overbought according to the technical indicator money flow index.
JMC Projects receives new orders worth Rs 1,524 crore. The orders include engineering, procurement and construction project for integrated airport development, water projects, and buildings and factories projects in India.
Sapphire Foods is back in black as it reports a net profit of Rs 38.2 crore in Q1FY23 compared to a loss of Rs 26 crore in Q1FY22. Revenue increased because of an increase in restaurant sales by 80% YoY. The stock shows up in the screener where mutual funds increased their holding in the last quarter.
Medplus Health Services hits an all-time low of Rs 690.4, as its Q1FY23 net profit falls 92.1% YoY to Rs 3.7 crore.
ICICI Securities maintains its 'Buy' rating on Eicher Motors and increases target price to Rs 3,640, indicating an upside of 15.4%. The brokerage believes that stability in input prices and improvement in scale would help increase profitability of the two-wheeler portfolio in FY23. The increase in target price is driven by 7% rise in FY24E earnings and valuation rollover by a quarter.
Godrej Agrovet's promoter Godrej Industries acquires 54,793 shares in the company for Rs 2.7 crore through open market.
Aerospace, Integrated oil & gas and IT Training Services industries rise more than 3% in trade today.
Mazagon Dock Shipbuilders is trading with more than 16 times its weekly average trading volume. Home First Finance Company India, Uflex, Endurance Technologies, and Medplus Health Services are trading at more than four times their weekly average trading volumes.
Consumer durables stocks like Titan, Voltas, Aditya Birla Fashion and Retail, Crompton Greaves Consumer Electricals and Whirlpool of India are rising in trade. The broader sectoral index BSE Consumer Durables is also trading in the green.
Axis Securities maintains its ‘Buy’ rating on Bharti Airtel with a target price of Rs 900, indicating an upside of 28%. The brokerage remains positive on the company’s prospects given its healthy margins, robust subscriber growth, and high 4G conversions. It estimates the company’s net profit to grow at a CAGR of 103.2% over FY22-24.
Indian Railway Catering & Tourism Corp is falling even though its Q1FY23 net profit surges nearly 3X YoY and revenue jumps 3.5X YoY on a low base in Q1FY22. This significant rise in revenue is mostly driven by the catering, internet ticketing, and tourism segments. However, the operating margin falls by 8.2 percentage points YoY as the catering services and tourism expenses increase manifold.
Oil India is rising as its Q1FY23 net profit jumps 2.6X YoY to Rs 2,805.2 crore despite an increase in raw material cost by 2.9X and an increase in excise duties. However, high oil prices result in an increase in revenue by 85% YoY. Revenue from all segments, like, crude oil, natural gas, refinery products, and LPG see a substantial increase in Q1.
Tata Consumer Products is falling despite its net profit rising 38% YoY to Rs 255.5 crore. Profit rises on the back of rising revenue from the India business. Revenue growth is driven by the salt and tea segments. The salt business gains market share amid high input costs, as its premium salt products portfolio improves penetration. Falling raw material costs in the tea business offset inflationary pressure in the salt business and high advertisement costs, aiding margin expansion. EBITDA margin rises 40 bps YoY to 13.8%.
Steel Authority of India (SAIL) falls as its Q1FY23 net profit drops 79.3% YoY to Rs 804.5 crore. Rise in cost of raw materials and employee benefits expenses results in EBITDA margin taking a large fall of 22.2 percentage points to 9.6%. Rise in revenue from the Bhilai and Rourkela steel plants aids total revenue growth.
Airline stocks like InterGlobe Aviation (IndiGo) and Spicejet are rising after the Centre’s Ministry of Civil Aviation removes restrictions on ticket prices that were imposed two years ago amid the coronavirus pandemic.
Eicher Motors’ touches a 52-week high of Rs 3,256 as its Q1FY23 net profit surges 2.5X YoY to Rs 611 crore. This is despite a rise in expenses because of input cost inflation and semi-conductor shortage. Current tax expenses also shot up 104%. Managing Director Siddharth Lal says international revenues increased due to rise in demand for Royal Enfield bikes. Royal Enfield's wholesales in Q1 rose 52% YoY.
Coal India’s Q1FY23 net profit surges 2.7X YoY to Rs 8,832 crore. This is because of a 91.6% YoY jump in sales from the e-auction segment. Total sales are up as demand for power is high across India. Coal production also increased 28.9% YoY.
Riding High:
Largecap and midcap gainers today include Indraprastha Gas Ltd. (408.10, 7.45%), Cummins India Ltd. (1,237.60, 6.03%) and Aditya Birla Fashion and Retail Ltd. (291.30, 5.09%).
Downers:
Largecap and midcap losers today include Abbott India Ltd. (18,917.55, -3.50%), Tube Investments of India Ltd. (2,241.65, -3.32%) and Tata Consumer Products Ltd. (773.45, -2.16%).
Volume Shockers
27 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included BEML Ltd. (1,783.20, 16.14%), Affle (India) Ltd. (1,185.55, 7.64%) and Asahi India Glass Ltd. (564.45, 7.58%).
Top high volume losers on BSE were Capri Global Capital Ltd. (687.95, -3.77%), Metropolis Healthcare Ltd. (1,493.45, -1.72%) and Endurance Technologies Ltd. (1,415.40, -1.25%).
Mazagon Dock Shipbuilders Ltd. (297.45, 5.03%) was trading at 24.2 times of weekly average. Greaves Cotton Ltd. (165.25, 1.63%) and Uflex Ltd. (670.40, 7.04%) were trading with volumes 9.0 and 8.8 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
21 stocks hit their 52-week highs, while 2 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - AIA Engineering Ltd. (2,640.65, 2.27%), Bank of Baroda (123.20, 3.83%) and Bharat Electronics Ltd. (287.45, 0.02%).
Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (650.05, -0.43%) and Medplus Health Services Ltd. (723.30, 0.72%).
27 stocks climbed above their 200 day SMA including BEML Ltd. (1,783.20, 16.14%) and Affle (India) Ltd. (1,185.55, 7.64%). 15 stocks slipped below their 200 SMA including Cholamandalam Financial Holdings Ltd. (651.30, -2.36%) and Apollo Hospitals Enterprise Ltd. (4,429.65, -1.94%).