Trendlyne Analysis
Nifty 50 closed at 18,286.50 (-112.4, -0.6%) , BSE Sensex closed at 61,932.47 (-413.2, -0.7%) while the broader Nifty 500 closed at 15,492.40 (-57.3, -0.4%). Of the 1,954 stocks traded today, 934 were on the uptick, and 959 were down.
Indian indices pare gains and closed in the red, with the Nifty 50 falling below the key 18,300 mark. The volatility index, Nifty VIX rises above 13 at the close. Shapoorji Pallonji group looks to raise USD 1.6 billion by pledging Tata Sons shares.
Nifty Smallcap 100 closed flat, while Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty PSU Bank closed higher than Monday’s closing levels. Nifty IT closed higher, tailing the tech-heavy Nasdaq 100 closing in the green on Monday. According to Trendlyne’s sector dashboard, coal was the top-performing sector of the day as it rose over 1.25%.
Most European indices traded flat except for Switzerland’s Swiss Market Index, which traded in the red. On Monday US indices closed marginally higher as investors remain wary of the ongoing US debt ceiling negotiations. Only a fortnight remains before the US government could default.
LIC Housing Finance sees a long buildup in its May 25 future series as its open interest rises 19.5% with a put-call ratio of 0.8.
According to reports, Nomura upgrades its rating to ‘Buy’ from ‘Reduce’ and raises the target price on Indian oil marketing companies such as Hindustan Petroleum Corp, Bharat Petroleum Corp and Indian Oil Corp. The brokerage attributes lower crude prices, improving margins and rising global oil demand for its optimistic outlook.
Granules India is falling despite its net profit rising 7.8% YoY to Rs 119.6 crore in Q4FY23. Revenue improves by 16.1% YoY to Rs 1,195.5 crore. The company shows up in a screener of stocks in the PE buy zone.
Max Healthcare Institute is falling despite its net profit jumping 102.8% YoY to Rs 250.9 crore and revenue rising 29.6% YoY. Its EBITDA margin expands by 340 bps YoY to 28.2% YoY. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.
Keshav Bhajanka, Executive Director at Century Plyboards (India), says the company targets double-digit revenue growth for the plywood business in FY24. He adds that the margin guidance for the plywood business is 13-15%.
Indian Oil Corp touches its 52-week high of Rs 87.7 per share as net profit rises 54.8% YoY to Rs 10,289.8 crore in Q4FY23. Revenue rises 10.4% YoY supported by growth in petroleum products and other business activities. It features in a screener of top Indian exporters among listed companies.
Bank of Baroda is rising as its net profit improves by 168.5% YoY to Rs 4,775.3 crore in Q4FY23. Revenue grows by 42.3% YoY on the back of increased interest earned in the treasury, retail and wholesale banking segments. The bank's asset quality improves as gross and net NPAs decline by 282 bps YoY and 83 bps YoY respectively.
Axis Direct upgrades its rating on Relaxo Footwear to ‘Buy’ from ‘Hold’ and increases the target price to Rs 980 from Rs 850. This implies an upside of 11.5%. The brokerage turns positive about the company’s prospects on the back of improving demand environment, stable raw material prices, market share gains and increasing production capacity.
Britannia Industries' annual return on equity (RoE) stands at 65.7% in FY23, rises 36.2 percentage points over the past five years.
B Ramesh Babu, Managing Director and CEO of Karur Vysya Bank, expects a loan growth of over 14% in FY24. He says the bank plans to maintain its corporate book at around 21%.
Housing Development Finance Corp is trading below its third support or S3 level.
Procter & Gamble Health is rising as its net profit grows by 15.7% YoY to Rs 59.2 crore in Q4FY23. Revenue rises 19.8% YoY on the back of healthy growth in sales. However, EBITDA margin declines by 86 bps YoY due to the rise in employee benefits and other expenses. It shows up in a screener of stocks with increasing revenue every quarter for the past four quarters.
Thermax, SKF India and Honeywell Automation are rising ahead of their Q4FY23 results tomorrow.
Astral is rising as its Q4FY23 net profit increases 45.5% YoY to Rs 205.7 crore, aided by a 7.1% YoY fall in raw material costs. Its revenue grows by 8.3% YoY, driven by healthy growth in its plumbing and paints segments.
Centre removes the windfall tax on locally produced crude oil from the earlier Rs 4,100 per tonne, while it remains nil on petrol, diesel and aviation turbine fuel (ATF).
President of India, promoter of ITI, acquires a 1.2% stake in the company on Thursday, now holds 90.3%.
Goldman Sachs sells its stakes in Devyani International, Affle (India) and Varun Beverages through block deals on Monday. The transactions amount to Rs 73.7 crore.
Jefferies maintains its ‘Buy’ rating on Polycab India with a target price of Rs 4,290. The brokerage says there has been strong B2B demand on the back of private capex and government measures.
Cipla inks an agreement to sell its entire stake of 51% in Saba Investment to Shibam Group Holding for $6.5 million.
Aether Mauritius, True North Fund and Orange Clove Investments collectively sell a 5.3% stake in Home First Finance, amounting to Rs 330.16 crore. Societe Generale and Norges Bank of Account have acquired the shares.
Samir Dhir, Managing Director and CEO of Sonata Software, says that the company's revenue growth has been 4.5% in Q4FY23 and is expected to improve in FY24. He adds that the company targets to achieve a margin of around 20% by FY26.
PSU banks like Punjab & Sind Bank, UCO Bank, Indian Bank, Union Bank of India and Central Bank of India are rising in trade. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the green.
Coromandel International is rising despite its Q4FY23 net profit declining 15% YoY to Rs 246.6 crore on the back of rising cost of raw materials. However, its revenue grows by 29.6% YoY to Rs 5,475.8 crore. The stock shows up in a screener for stocks with no debt.
Berger Paints is trading flat as its net profit falls 15.5% YoY to Rs 186 crore in Q4FY23 due to a 13.7% increase in expenses. Operating margin declines 221 bps YoY to 11.14%. However, input costs marginally decrease by 1% in Q4, while revenue grows 12%. It shows up in a screener of stocks with declining profits in the past three quarters.
Pfizer is rising as it reports a 3% YoY increase in net profit to Rs 129.6 crore and a 4% growth in revenue. The board has recommended a final dividend of Rs 35 per share and a special dividend of Rs 5 per share due to business expansion at the Thane plant. The stock is trading above its first resistance or R1 level.
PVR INOX’s net loss widens to Rs 333.4 crore in Q4FY23 as compared to Rs 105.5 crore in Q4FY22 due to a sharp increase in movie exhibition costs, employee costs and other expenses. On the other hand, revenue jumps by 112.8% YoY as the movie exhibition segment surges by more than 2X YoY. The stock shows up in a screener for companies with high-interest payments compared to earnings.
Riding High:
Largecap and midcap gainers today include Astral Ltd. (1,686.50, 5.69%), PB Fintech Ltd. (627.50, 4.70%) and Aurobindo Pharma Ltd. (641.45, 4.53%).
Downers:
Largecap and midcap losers today include Adani Total Gas Ltd. (738.60, -5.00%), Adani Transmission Ltd. (812.10, -3.39%) and Berger Paints (India) Ltd. (612.10, -2.72%).
Volume Shockers
35 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Mishra Dhatu Nigam Ltd. (225.60, 9.33%), Sonata Software Ltd. (954.25, 7.81%) and Mazagon Dock Shipbuilders Ltd. (809.45, 7.42%).
Top high volume losers on BSE were Jubilant Ingrevia Ltd. (396.40, -5.88%), J B Chemicals & Pharmaceuticals Ltd. (1,999.80, -2.32%) and PVR INOX Ltd. (1,435.15, -2.04%).
Garware Technical Fibres Ltd. (2,976.75, 0.39%) was trading at 22.5 times of weekly average. Astral Ltd. (1,686.50, 5.69%) and Trident Ltd. (35.20, 7.32%) were trading with volumes 12.2 and 11.1 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
28 stocks overperformed with 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.
Stocks touching their year highs included - Akzo Nobel India Ltd. (2,464.50, -0.59%), Aurobindo Pharma Ltd. (641.45, 4.53%) and Cera Sanitaryware Ltd. (7,438.95, 3.98%).
Stocks making new 52 weeks lows included - PVR INOX Ltd. (1,435.15, -2.04%) and Sumitomo Chemical India Ltd. (388.75, -0.47%).
26 stocks climbed above their 200 day SMA including Mishra Dhatu Nigam Ltd. (225.60, 9.33%) and Trident Ltd. (35.20, 7.32%). 9 stocks slipped below their 200 SMA including Jubilant Pharmova Ltd. (336.30, -3.68%) and Reliance Industries Ltd. (2,453.80, -1.42%).