Trendlyne Analysis
Nifty 50 closed at 18,147.65 (82.7, 0.5%), BSE Sensex closed at 61,354.71 (242.3, 0.4%) while the broader Nifty 500 closed at 15,300.75 (81.2, 0.5%). Of the 1,994 stocks traded today, 1,130 showed gains, and 790 showed losses.
Indian indices pared gains towards the end of the trading day and closed in the green. The Nifty 50 rose nearly 70 points and closed above the key 18,100 mark. According to the data released by the Centre for Monitoring Indian Economy (CMIE), the joblessness rate of India rose to 8.1% in April from 7.8% in March. Rural unemployment fell marginally by 13 bps MoM to 7.3%.
Nifty Midcap 100 and Nifty Smallcap 100 closed outperformed the benchmark index and closed in the green. Nifty Pharma and Nifty Realty closed lower than Friday’s closing levels. Nifty IT closed sharply higher, despite the tech-heavy Nasdaq 100 closing flat on Monday. According to Trendlyne’s sector dashboard, Hotels, Restaurants & Tourism was the top-performing sector of the day as it rose over 2%.
Most European indices traded in the red except for Switzerland’s SMI trading in the green. European stocks traded lower as the Eurozone GDP grew by 1.3%YoY in Q1CY22 against the economist’s estimate of 1.4%. US indices futures trade lower indicating a negative start.
REC sees a long buildup in its May 25 future series as its open interest rises 4.7% with a put-call ratio of 0.84.
Rail Vikas Nigam is rising as it bags an order worth Rs 2,249 crore through its joint venture with SCC, in which the company has a 51% share. The project involves the construction and design of an irrigation distribution network in Banswara, Rajasthan. The project is expected to be completed in 42 months.
Alkem Laboratories and Indian Bank touch their 52-week highs of Rs 3,544.1 and Rs 330.7, respectively. Alkem Labs has risen 8.6% in the past month, while the other increased by 17.6%.
- Coforge is falling in trade as 21.55 lakh shares (3.5% equity) of the company, amounting to Rs 891.8 crore, change hands, according to reports.
Coal India is rising as its production grows 7.7% YoY to 57.6 MT in April. The company's over burden removal (OBR) has improved by 31% YoY, which will help in stepping up coal production during monsoon.
Hitachi Energy India, Maruti Suzuki India, Bosch and Eicher Motors are trading above their third resistance or R3 level.
Tejas Networks, IndusInd Bank and Bank of Maharashtra outperform the Nifty 50 index over the month post their Q4FY23 results.
- Reports suggest that 19.4 crore shares (0.94% equity) of Rail Vikas Nigam, amounting to Rs 229.7 crore, change hands in a large trade.
According to reports, brokerage CLSA downgrades Kotak Mahindra Bank to ‘Buy’ from ‘Outperform’ as it believes that the stock’s upside is limited, given the recent run-up in share price. Macquarie maintains its ‘Neutral’ rating on the bank, stating that the firm’s profitability is strong but growth is below expectations.
Energy stocks like Adani Green Energy, Oil and Natural Gas Corp and NTPC are rising in trade. All constituents of the broader Nifty Energy index are also trading in the green.
Varun Beverages is rising as its Q1CY23 net profit surges 68.8% YoY to Rs 429.1 crore and revenue rises 37.8% YoY. This robust performance is driven by the total sales volume increasing by 24.7% YoY on account of healthy demand across India. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.
V Vaidyanathan, Managing Director and CEO of IDFC First Bank, says the bank’s deposits will grow 40-45% in FY24. He expects the bank’s credit card business to be profitable by FY25.
IndiaMART InterMESH is falling as its net profit falls 2.8% YoY to Rs 55.8 crore in Q4FY23. However, revenue grows 33.5% YoY to Rs 268.8 crore on the back of growth in web & related services and accounting software services segments. It shows up in a screener of stocks with increasing revenue for the past eight quarters.
HDFC Securities downgrades Voltas to ‘Reduce’ from ‘Accumulate’ and lowers the target price to Rs 750 from Rs 925. This implies a downside of 6.5% from the current market price. The brokerage cites Voltas' loss in market share in key business segments as the reason for the downgrade and expects revenue to grow at a CAGR of 13.2% over FY23-25.
RBL Bank's net profit rises 37% YoY to Rs 271 crore in Q4FY23. Interest income also grows 17.1% YoY led by the retail and corporate banking segments. The bank's asset quality improves as its gross and net NPAs decline by 103 bps and 24 bps YoY respectively. It shows up in a screener of undervalued growth stocks.
According to reports, oil marketing companies (OMCs) like Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp may see a stake increase by the Centre, as they submit their capital investment plans. Instead of subsidies, the Rs 30,000 crore capital announced in the budget may be used for equity infusion in these OMCs.
NBCC India is rising as it bags an order worth Rs 749.3 crore to redevelop and modernize presses belonging to the Indian government in Mayapuri, Delhi, Nashik and Kolkata. The stock shows up in a screener for companies with no debt.
- R Subramaniakumar, Managing Director and CEO of RBL Bank, says the bank's retail segment will grow by 24-25% in FY24. He adds that NIM (net interest margin) will be above 5%, while credit cost will be around 1.5-2%.
Mahindra & Mahindra's total wholesales for April 2023 rise 36.5% YoY to 62,294 units. Its total passenger vehicle wholesales also increase 54% YoY but total exports fall 32.9% YoY.
Metal stocks like Hindalco Industries, JSW Steel, APL Apollo Tubes and Tata Steel are rising in trade. The broader sectoral index BSE Metal is also trading in the green.
Centre reduces the windfall tax on locally produced crude oil to Rs 4,100 per tonne from the earlier Rs 6,400. Meanwhile, excise duty on petrol, diesel and ATF (aviation turbine fuel) remains nil.
Bajaj Auto's total wholesales rise 6.6% YoY to 3.3 lakh units in April 2023. Its total domestic wholesales also increase 108.6% YoY but exports drop 43.3% YoY.
NCC is rising as it bags six new orders worth Rs 3,344 crore in April from state and central government agencies for its buildings, electrical, and water divisions. The stock has touched a 52-week high today.
Ultratech Cement is falling as its Q4FY23 net profit declines 32% YoY to Rs 1,665.95 crore on higher costs. Power and fuel costs rise 34% YoY and freight expenses surge 20%. However, revenue increases 18% due to rising domestic sales. It shows up in a screener of stocks where brokers have upgraded recommendations or target prices in the past three months.
Kotak Mahindra Bank’s Q4FY23 net profit rises 26% YoY to Rs 3,495.59 crore with net interest income increasing 35%. The bank’s margins also improve 97 bps YoY to 5.75%. The bank has declared a dividend of Rs 1.5 per share for FY23. The stock is trading near its 52-week high.
Riding High:
Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (33.55, 5.67%), Adani Power Ltd. (235.95, 4.94%) and IDFC First Bank Ltd. (63.85, 3.91%).
Downers:
Largecap and midcap losers today include Atul Ltd. (6591.55, -4.08%), Delhivery Ltd. (364.60, -2.62%) and Hero MotoCorp Ltd. (2,495.90, -2.45%).
Movers and Shakers
34 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Welspun India Ltd. (101.05, 15.35%), Alkyl Amines Chemicals Ltd. (2,583.85, 9.30%) and Aarti Drugs Ltd. (457.80, 8.78%).
Top high volume losers on BSE were Atul Ltd. (6,591.55, -4.08%), Timken India Ltd. (2,915.15, -2.29%) and V-Guard Industries Ltd. (250.30, -1.77%).
TCNS Clothing Co. Ltd. (502.75, 2.02%) was trading at 20.9 times of weekly average. Hatsun Agro Products Ltd. (882.00, 4.01%) and Sapphire Foods India Ltd. (1,242.90, 3.93%) were trading with volumes 15.8 and 13.5 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
37 stocks hit their 52-week highs, while 4 stocks were underachievers and hit their 52-week lows.
Stocks touching their year highs included - Akzo Nobel India Ltd. (2,411.10, 3.72%), Bajaj Auto Ltd. (4,498.00, 1.49%) and Bombay Burmah Trading Corporation Ltd. (1,040.10, 0.29%).
Stocks making new 52 weeks lows included - Atul Ltd. (6,591.55, -4.08%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,230.60, -0.91%).
29 stocks climbed above their 200 day SMA including Aarti Drugs Ltd. (457.80, 8.78%) and Hitachi Energy India Ltd. (3,448.75, 4.24%). 2 stocks slipped below their 200 SMA including Sanofi India Ltd. (5,427.10, -2.57%) and Tube Investments of India Ltd. (2,582.35, -0.26%).