Trendlyne Analysis
Nifty 50 closed flat after gyrating between losses and gains throughout the day. However, European indices traded higher than Friday's levels. India’s Wholesale Price Index (WPI) inflation eased to 8.39% in October, compared to 10.7% in September, on the back of a fall in commodity prices. Asian indices closed mixed after China relaxed some of its strict anti-Covid measures, which were hurting the economy due to repeated lockdowns.
US stocks rose last week after data showed inflation slowed by more than expected last month. The tech-heavy NASDAQ 100 rose 1.8% while the S&P 500 closed 0.9% higher. However, Federal Reserve Governor Christopher Waller said Federal fund rates are going to stay elevated and keep going up until the inflation gets closer to the US Fed’s target.
Nifty Smallcap 100 closed in the green, despite the benchmark index closing flat. Nifty Metal and Nifty Realty closed higher than Friday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100 index, which closed over 1% on Friday.
Nifty 50closed at 18,329.15 (-20.6, -0.1%), BSE Sensexclosed at 61,624.15 (-170.9, -0.3%) while the broader Nifty 500closed at 15,650.20 (1.1, 0.0%)
Market breadth is in the red. Of the 1,958 stocks traded today, 831 showed gains, and 1,081 showed losses.
Relative strength index (RSI) indicates that stocks like Union Bank of India, Amara Raja Batteries, Adani Enterprises and Bank of India are in the overbought zone.
Ambuja Cementsand AIA Engineeringhit their 52-week highs of Rs 586.5 and Rs 2,821.2 respectively. Both stocks rise for two consecutive sessions.
Keystone Realtors’ Rs 635 crore IPO gets bids for 8% of the available 86 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 12% of the available 43 lakh shares on offer.
Metal stocks like Hindalco Industries, National Aluminium, Hindustan Zincand Jindal Stainlessare rising in trade. The broader sectoral index Nifty Metalis also trading in the green.
Inox Green Energy Services’ Rs 740 crore IPO gets bids for 85% of the available 6.67 crore shares on offer on the second day. The retail investor quota gets bids for 2.9X of the available 1.2 crore shares on offer.
- Aman Desai, Director of Aether Industries, says that the company's margins were affected by an increase in raw material costs but maintains margin guidance of 28-29% for H2FY23.
Hindalco is surging as London Metal Exchange (LME) aluminium prices rise in trade today, according to reports. The company’s uptrend is also boosted by loosening up of Covid restrictions in China.
Kaynes Technology's Rs 857.8 crore IPO gets bids for 34.16X of the available 1.04 crore shares on offer on the last day. The retail investor quota gets bids for 4.09X of the available 52.6 lakh shares on offer.
One97 Communications (Paytm) is rising as its loan disbursals grow 161% YoY to 34 lakhs in October, while the value of loans disbursed rises 387% YoY. Merchant payment volumes also increase 42% YoY. Offline payment volumes, subscription revenue and merchant loan distribution rise as devices deployed at merchant stores rise.
Alembic Pharmaceuticals receives final approval from the US FDA for its abbreviated new drug application (ANDA) for cyclophosphamide capsules. They are used to treat cancer in pediatric patients. According to IQVIA, the capsules have an estimated market size of $ 8 million for 12 months ending September.
Aurobindo Pharma is falling as its Q2FY23 net profit declines 41.2% YoY to Rs 409.4 crore. Fall in the US and European formulations caused the revenue to drop 3.4% YoY to Rs 5,739.4 crore. The Vice-chairman and Managing Director of the company stated that 'the drop in performance was due to macro-environment factors and higher competitive intensity for some products in the U.S.'
- India’s Wholesale Price Index (WPI) inflation eases to 8.39% in October, compared to 10.7% in September due to a fall in commodity prices. WPI food inflation falls to 6.48 %.
Computer Hardware, Zinc, andInternet & Catalogue Retail industries rise by more than 3% in trade today.
Macrotech Developers announces the merging of its subsidiaries Bellissimo Constructions and Developers, Homescapes Constructions, Primebuild Developers and Farms, Palava Institute of Advanced Skill Training and Center for Urban Innovation with itself. There will be no change in the shareholding pattern in Macrotech Developers after the merger. The merger is subject to approval from the National Company Law Tribunal.
Media stocks like Zee Entertainment Enterprises, Sun TV Network, PVR, Saregama India and Network 18 Media & Investments are falling in trade. All constituents of the broader Nifty Media are trading in the red.
- JP Morgan maintains ‘Overweight’ rating on Mahindra & Mahindra with a target price of Rs 1,575. The brokerage says that the company’s Q2FY23 results were in line with estimates. It increases the EPS estimate by 1-2% for FY23-25.
ABB India's Q2FY23 net profit rises 64.7% to Rs 197.6 crore. Motion, electrification and process automation segments aid revenue rise of 19.2% to Rs 2,119.7 crore. The company features in a screener of stocks with increasing revenue every quarter for the past two years.
Tiger Global Eight Holdings and Internet Funds sell 1.6 crore shares (3.57% stake) in PB Fintech worth Rs 605.8 crore in a bulk deal on Friday.
TPG Growth sells 1.08 crore shares (0.38% stake) in FSN E-Commerce Ventures (Nykaa) worth Rs 202.1 crore in a bulk deal on Friday. Meanwhile, Morgan Stanley (Asia) and Societe Generale pick up a 0.38% stake in Nykaa.
Indian rupee rises to 80.52 from Friday’s close of 80.80 against the US dollar in early trade today.
Keystone Realtors raises Rs 190.5 crore from anchor investors ahead of its IPO opening up for subscription today. The company allotted 35.2 lakh equity shares at Rs 541 each to investors, including Morgan Stanely, Abu Dhabi Investment Authority and SBI Life Insurance.
Life Insurance Corp of India’s Q2FY23 net profit jumps nearly 11X YoY to Rs 15,952.5 crore. The company transferred Rs 14,271.8 crore to the shareholder’s account from the non-participatory account. Net premium income grows 27% YoY and single premium income rises 62% YoY. The stock shows up on a screener for companies with an improving RoA over the past two years.
Riding High:
Largecap and midcap gainers today include Info Edge (India) Ltd. (4,360.85, 6.36%), Hindalco Industries Ltd. (455.55, 5.98%) and Life Insurance Corporation of India (664.65, 5.89%).
Downers:
Largecap and midcap losers today include Sun TV Network Ltd. (502.35, -8.85%), The New India Assurance Company Ltd. (95.30, -5.88%) and Zomato Ltd. (69.60, -4.40%).
Movers and Shakers
37 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Krishna Institute of Medical Sciences Ltd. (1,576.35, 8.88%), Strides Pharma Science Ltd. (345.00, 8.13%) and Fortis Healthcare Ltd. (303.85, 7.65%).
Top high volume losers on BSE were Sun TV Network Ltd. (502.35, -8.85%), DCM Shriram Ltd. (933.45, -8.46%) and Restaurant Brands Asia Ltd. (117.05, -7.10%).
Jyothy Labs Ltd. (193.15, 1.82%) was trading at 14.7 times of weekly average. Medplus Health Services Ltd. (618.00, 6.15%) and AIA Engineering Ltd. (2,731.75, 5.33%) were trading with volumes 13.5 and 12.7 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
16 stocks hit their 52-week highs, while 8 stocks hit their 52-week lows.
Stocks touching their year highs included - AIA Engineering Ltd. (2,731.75, 5.33%), Akzo Nobel India Ltd. (2,342.50, 3.14%) and Allcargo Logistics Ltd. (473.90, 4.48%).
Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (487.45, -0.38%) and Divi's Laboratories Ltd. (3,275.70, 0.13%).
24 stocks climbed above their 200 day SMA including Strides Pharma Science Ltd. (345.00, 8.13%) and Info Edge (India) Ltd. (4,360.85, 6.36%). 15 stocks slipped below their 200 SMA including DCM Shriram Ltd. (933.45, -8.46%) and Astral Ltd. (1,982.30, -3.86%).