Trendlyne Analysis
Indian indices closed in the red with the volatility index, India VIX, rising above 18.5%. Nifty 50 fell over 90 points and closed below the 16,000 mark. European indices traded lower despite UK’s gross domestic product or GDP rising 0.5% in May against a 0.2% decline in April. India’s consumer price index or CPI came in at 7.01% in June against 7.04% in May and continues to remain well above the central bank’s upper tolerance level of 6%. The index of industrial production growth rises 19.6% in May as against 7.1% in April led by the manufacturing and power sector.
Most Asian indices closed flat to marginally higher, tracking the US indices futures, which are trading in the green. However, US stocks closed in the red on Tuesday as investors await the crucial inflation print release later today. Brent crude oil futures traded below $100 per barrel after falling 6.8% on Tuesday.
Nifty Smallcap 100 and Nifty Midcap 100 closed marginally higher despite the benchmark index closing in the red. Nifty FMCG and Nifty Media closed higher than Tuesday’s levels. Nifty IT closed in the red, tracking the NASDAQ 100, which closed lower on Tuesday.
Markets fell in today's trading. Nifty 50 closed at 15,966.65 (-91.7, -0.6%) , BSE Sensex closed at 53,514.15 (-372.5, -0.7%) while the broader Nifty 500 closed at 13,726.95 (-52.1, -0.4%)
Market breadth is in the red. Of the 1,884 stocks traded today, 832 were in the positive territory and 992 were negative.
Brightcom Group, Krishna Institute of Medical Sciences, Go Fashion (India), and Symphonyare trading with higher volumes as compared to Tuesday.
UltraTech Cementsees a long build-up in its July 28 future series as its open interest rises 10.6% with put to call ratio of 0.56.
Chemical companies like Clean Science & Technology, SRF, Anupam Rasayan among others are rising as Morgan Stanley sees the current 8-10% correction in Indian chemical equities since June is a buying opportunity, according to reports. The brokerage believes that the chemical companies are seeing some near-term constraints like production outages, material and energy inflation, and a slower increase in capacity. The correction in the broader sector implies headwinds sustain into 2023 presenting a buying opportunity.
Mahanagar Gas is rising as it raises retail prices of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai effective today. The company increases the retail prices of CNG by Rs 4 per kg to Rs 80 per kg and domestic PNG by Rs 3 per standard cubic metre (SCM) to Rs 48.5 per SCM. The city gas distributor attributes the price hikes to rising gas sourcing costs and fall in the rupee against the US dollar.
Pharmaceutical companies like Laurus Labs, Aurobindo Pharma, and Granules India, among others, rise. The broader Nifty Pharma index is trading in the green.
Indian rupee hits a new lifetime low of Rs 79.67 against the dollar in trade today.
Shilpa Medicare is rising as its Bengaluru unit gets a good manufacturing practice certificate from the UK's Medicines and Healthcare Products Regulatory Agency. The facility will be used to manufacture and test orodispersible films and transdermal systems.
Public sector banks like Union Bank of India, Punjab & Sind Bank, Canara Bank, among others rise. The broader Nifty PSU Bank index is trading in the green.
ICICI Securities maintains its ‘Buy’ rating on Cholamandalam Investment and Finance with a target price of Rs 743, indicating an upside of 19.8%. The brokerage remains positive on the company’s prospects given its successful expansion into non-vehicle financing business, wide distribution of branches, and improvements in operational efficiencies through digital initiatives. It expects the company’s net profit to grow at a CAGR of 19.3% over FY22-24.
Zydus Wellness is trading with more than 112 times its weekly average trading volume. KEC International, Shilpa Medicare, BASF India, and Prism Johnson are trading at more than four times their weekly average trading volumes.
CARE Ratings is rising as its board of directors will consider a proposal to buy back equity shares on July 20.
Nomura cuts its 2023 India GDP growth forecast to 4.7% from its earlier project of 5.4% on persistently high inflation, high imports and slowing growth in exports.
FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Britannia Industries, Godrej Consumer Products, among others, are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.
Sterling and Wilson Renewable Energy is falling as its net loss in Q1FY23 increases by more than 4X YoY to Rs 353.9 crore. The company’s loss widens as the cost of construction materials rises 94.1% YoY to Rs 893.3 crore. However, its revenue marginally grows 1% YoY to Rs 1,206.9 crore on the back of its revenue from the engineering, procurement, and construction segment rising 2.5% YoY to Rs 1,162 crore.
Paint stocks like Asian Paints, Berger Paints (India), Kansai Nerolac Paints, Indigo Paints, Shalimar Paints, among others, are rising in trade amid sharp fall in global crude oil prices. Crude prices dropped below $100/ barrel earlier today.
Anand Rathi Wealth is rising as its Q1FY23 profit rises 33.6% YoY to Rs 39.7 crore and revenue rises 35% YoY to Rs 131.6 crore. The growth in profit and revenue is driven by the number of active client families rising 17.4% YoY to 7,477 and net flows increasing 395.5% YoY to Rs 1,355 crore. The company’s assets under management grows 15.4% YoY to 32,961 crore.
Adani Green Energy’s total operational capacity increases 65% YoY to 5,800 MW. Sale of energy is up 73% YoY to 35,500 lakh units because of capacity addition and performance in solar, wind and hybrid energy portfolios. Wind energy portfolio grew 47% YoY, an 850 bps improvement with 96% plant availability.
India’s Consumer Price Index (CPI) is at 7.01% in June 2022 against 7.04% in May 2022. Food and fuel inflation stay elevated at 7.75% and 10.4% respectively, in June 2022. However, food inflation moderated because of a fall in edible oil prices and reduction in supply issues.
Delta Corp posts a profit of Rs 57.1 crore in Q1FY23 compared to a loss of Rs 28.9 crore in Q1FY22. Its revenue rises more than 3X YoY to Rs 250.3 crore led by the casino gaming segment, as the gross revenue from the segment rises 6X YoY to Rs 250.7 crore.
Gujarat pollution Control Board revokes its closure order on Deepak Nitrite’s Nandesari plant for three months which is shut after a fire incident in June 2022. The permission is to restart operations at the Nandesari plant, except for the areas affected by the fire.
HCL Technologies’ Q1FY23 net profit falls 8.6% QoQ to Rs 3,283 crore with EBIT margins down 1.9 percentage points to 17% because of increase in employee expenses by 3% QoQ to Rs 12,978 crore. However, the company’s revenue rose 3.8% QoQ to Rs 23,464 crore. Its order book stands at $2,054 million, 9.1% down QoQ. Employee attrition rate rises to 23.8% in Q1FY23 from 21.9% in Q4FY22.
Riding High:
Largecap and midcap gainers today include IDBI Bank Ltd. (33.85, 4.64%), Aurobindo Pharma Ltd. (559.45, 4.52%) and Crompton Greaves Consumer Electricals Ltd. (383.85, 4.28%).
Downers:
Largecap and midcap losers today include Adani Green Energy Ltd. (2,104.75, -8.28%), Adani Total Gas Ltd. (2,672.10, -4.48%) and Endurance Technologies Ltd. (1,450.70, -3.92%).
Volume Shockers
20 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included KEC International Ltd. (448.10, 9.56%), Anupam Rasayan India Ltd. (705.55, 7.37%) and Privi Speciality Chemicals Ltd. (1,117.95, 7.21%).
Top high volume losers on BSE were Sterling and Wilson Renewable Energy Ltd. (288.90, -6.54%), Supreme Industries Ltd. (1,836.00, -3.57%) and IndusInd Bank Ltd. (819.05, -3.31%).
Zydus Wellness Ltd. (1,563.05, -0.43%) was trading at 115.2 times of weekly average. Rites Ltd. (235.00, 1.34%) and Shilpa Medicare Ltd. (416.95, 5.21%) were trading with volumes 39.0 and 20.5 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
3 stocks hit their 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.
Stocks touching their year highs included - Varun Beverages Ltd. (874.70, 2.49%), Adani Total Gas Ltd. (2,672.10, -4.48%) and Gujarat Fluorochemicals Ltd. (3,109.35, 0.87%).
Stocks making new 52 weeks lows included - HCL Technologies Ltd. (917.75, -1.08%) and Gland Pharma Ltd. (2,445.65, -1.63%).
15 stocks climbed above their 200 day SMA including KEC International Ltd. (448.10, 9.56%) and Syngene International Ltd. (592.40, 3.78%). 10 stocks slipped below their 200 SMA including VST Industries Ltd. (3,168.10, -4.07%) and Endurance Technologies Ltd. (1,450.70, -3.92%).