Trendlyne Analysis
Indian indices gave up most of their gains and closed flat on a volatile day of trade. The Nifty 50 closed flat today after falling 2.3% on Wednesday as the Reserve Bank of India (RBI) increased the repo rate by 40 bps to 4.4%. The Indian 10-year government bond yields rose in a reaction to the surprise announcement. On a global front, major Asian indices closed higher, tracking the US indices, which closed sharply higher on Wednesday. The US indices rose after the US Federal Reserve delivered an expected 50 bps hike in interest rates. The S&P 500 climbed close to 3%, recording its biggest one-day percentage gain in two years. Crude oil edges higher after European Union proposed new sanctions against Russia that included a ban on Russian crude oil in six months.
Nifty Smallcap 100, which opened in the green, closed lower while Nifty Midcap 100 closed flat, following the benchmark index. Nifty Metal and Nifty Auto closed higher than Wednesday’s levels. Nifty IT also closed in the green, tracking the tech-heavy NASDAQ 100, which gained 3.4% on Wednesday.
Nifty 50closed at 16,682.65 (5.1, 0.0%), BSE Sensexclosed at 55,702.23 (33.2, 0.1%) while the broader Nifty 500closed at 14,395.50 (2.2, 0.0%)
Market breadth is in the red. Of the 1,871 stocks traded today, 754 were on the uptrend, and 1,076 went down.
IFB Industries, AIA Engineering, Adani Total Gas, Natco Pharmaand are trading with higher volumesas compared to Wednesday.
Adani Power’s Q4FY22 net profit surges to Rs 4,650.6 crore from Rs 13.13 crore a year ago. Revenue from operations rise 66.2% YoY to Rs 10,597.8 crore on revenue from the power generation and related activities segment rising 68.2% YoY to Rs 10,179 crore. EBITDA surges 270.6% YoY to Rs 7,942 crore on the back of high growth in revenue.
Hem Securities maintains a ‘Buy’ rating on Sonata Software with a target price of Rs 839, indicating an upside of 18%. The brokerage remains positive about the company as its deal pipeline continues to be healthy through multiple new digital wins from existing and new customers.
Hero MotoCorp rises after the company hints at a healthy demand scenario in an analyst call on Wednesday. The company’s wholesales for April saw a healthy growth of 12.4% YoY to 4.2 lakh units because of an increase in motorcycle wholesales. The company believes that growth will accelerate once the chip shortages ease out.
Life Insurance Corporation of India’s Rs 21,008.4-crore IPO gets bids for 103% of the available 16.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 93% of the available 6.9 crore shares on offer.
Metal stocks like Tata Steel, Vedanta, JSW Steel, Jindal Steel and Power, and NMDC, among others, are rising in trade. The broader sectoral index Nifty Metal is also trading in green.
IT stocks like Infosys, Coforge, Tech Mahindra, and L&T Technology Services among others are rising in trade. The broader sectoral index Nifty IT is also trading in green.
Sona BLW Precision Forgings (Sona Comstar) rises as it announces a partnership with C-Motive Technologies. The companies plan to develop the world’s first commercially viable electrostatic motor for electric vehicle applications. The production is likely to begin by 2026.
ABB India is trading with more than 22 times its weekly average trading volume. Westlife Development, Pfizer, Sonata Software, and Rain Industries are trading at more than two times their weekly average trading volumes.
Axis Securities maintains a ‘Buy’ rating on Can Fin Homes with a target price of Rs 790, indicating an upside of 23%. The brokerage remains positive for the company due to its favourable loan mix, comfortable liquidity position, and robust capital adequacy ratio (CAR) of 23.3%. The brokerage expects net profit to grow at a 17.6% CAGR over FY22-24.
Stocks like Schaeffler India, Crisil, United Breweries, and Trent, among others, are outperforming the Nifty 50 index over the week, post results
Larsen & Toubro is rising as it receives an order worth up to Rs 5,000 crore from the National High-Speed Rail Corp. The project will entail constructing 116 Km of High-Speed Ballastless tracks for the Mumbai-Ahmedabad high-speed rail project.
Rain Industries is rising as its Q4FY22 net profit rises 34.4% YoY to Rs 277.4 crore. Total Revenue increases by 46.4% to Rs 3,050 crore mainly due to a combination of higher volumes and an increase in price realizations. Revenue from cement businesses rises 15.3% YoY in Q4FY22 to Rs 320 crore.
ABB India’s Q4FY22 net profit rises 164% YoY to Rs 373.1 crore and revenue rises 21.2% YoY to Rs 2,005.6 crore on higher volumes, rise in orders and growth in the service business. Orders grow 25% YoY to Rs 2,291 crore and operating margin rises by 142 bps YoY to 9.5%.
CarTrade Tech is falling as it posts a loss of Rs 25.7 crore in Q4FY22 against a profit of Rs 12 crore in the same quarter previous year. Revenues increase by 15.2% YoY in Q4FY22 to Rs 105.9 crore but the company posts losses as employee benefit expenses jump 2.2 times YoY to Rs 85 crore.
Adani Total Gas's Q4FY22 profit falls 43.6% YoY to Rs 81.1 crore due to the rise in gas price and local constraints on the supply of regasified liquefied natural gas. Revenue rises 69.3% YoY to Rs 1,022.2 crore during the quarter. In FY22, the company's profit rises 7% YoY to Rs 505 crore.
Sunil Singhania's Abakkus Growth Fund buys stake in J Kumar Infraprojects worth Rs 45.13 crore in a bulk deal on Wednesday.
Havells India’s Q4FY22 net profit rises 16% YoY to Rs 352.5 crore and revenue rises 32.4% YoY to Rs 4,470.4 crore. The maximum revenue growth came in from the cables segment and Lloyd at 45% YoY and 62% YoY, respectively. Operating margin falls by 347 bps to 11.7% on high input costs.
Tata Consumer Products’ Q4FY22 net profit rises 4X YoY to Rs 217.5 crore and revenue rises 4.6% YoY to Rs 3,222.8 crore led by robust demand in the Indian market. The India business segment revenue rises 6% YoY to Rs 1,954 crore and EBITDA margin rises by 400 bps YoY to 14.4%.
Deepak Nitrite’s Q4FY22 net profit falls 7.8% YoY to Rs 267.2 crore however, revenue increases 27.9% to Rs 1,872.3 crore. Phenolics segment contributes maximum to the revenue with a growth of 20% YoY to Rs 1,122.1 crore. Cost of materials for the company surges 48.8% YoY to Rs 1,186.5 crore with total expenses rising 40.2% to Rs 1,513.7 crore.
Riding High:
Largecap and midcap gainers today include ABB India Ltd. (2,221.10, 10.26%), Ruchi Soya Industries Ltd. (1,095.60, 9.07%) and Adani Green Energy Ltd. (2,845.90, 6.53%).
Downers:
Largecap and midcap losers today include Godrej Properties Ltd. (1,460.25, -5.60%), Deepak Nitrite Ltd. (2,160.55, -5.57%) and IndusInd Bank Ltd. (936.80, -4.24%).
Movers and Shakers
16 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Hikal Ltd. (421.65, 12.26%), ABB India Ltd. (2,221.10, 10.26%) and Esab India Ltd. (3,678.70, 10.19%).
Top high volume losers on BSE were Intellect Design Arena Ltd. (712.25, -6.72%), Sonata Software Ltd. (676.20, -5.16%) and Aavas Financiers Ltd. (2,201.90, -3.75%).
SIS Ltd. (499.90, -0.06%) was trading at 6.4 times of weekly average. Westlife Development Ltd. (451.95, -1.91%) and Firstsource Solutions Ltd. (114.80, -2.42%) were trading with volumes 5.6 and 5.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
2 stocks hit their 52-week highs, while 10 stocks hit their 52-week lows.
Stocks touching their year highs included - Power Grid Corporation of India Ltd. (233.75, -1.62%) and Esab India Ltd. (3,678.70, 10.19%).
Stocks making new 52 weeks lows included - 3M India Ltd. (18,545.90, -3.16%) and Firstsource Solutions Ltd. (114.80, -2.42%).
16 stocks climbed above their 200 day SMA including ABB India Ltd. (2,221.10, 10.26%) and Grindwell Norton Ltd. (1,699.90, 4.94%). 34 stocks slipped below their 200 SMA including Laxmi Organic Industries Ltd. (395.85, -6.76%) and Intellect Design Arena Ltd. (712.25, -6.72%).