Market closes higher, HDFC Securities upgrades its rating on Apollo Hospitals

Trendlyne Analysis

Nifty 50 closed in the green, surging 3% with Indian volatility index, India VIX falling more than 10%. Indian indices recovered most of their losses from Monday as Russia’s Defense Ministry announced the start of a pullback of some military forces across the Ukrainian border.

All sectoral indices closed in the green with Nifty Auto surging close to 4%. Nifty PSU Bank and Nifty Realty, which traded in the red earlier, recovered well in the last hour of the trading session to post gains of over 3%. Nifty IT sector traded in the green throughout the day with all its constituents closing higher than Monday’s levels.

Nifty 50 closed at 17,352.45 (509.7, 3.0%) , BSE Sensex closed at 58,142.05 (1,736.2, 3.1%) while the broader Nifty 500 closed at 14,805.55 (405.2, 2.8%)

Market breadth is surging up. Of the 1,853 stocks traded today, 1,267 showed gains, and 560 showed losses.

Crisil, Gland Pharma, Vinati Organics, and Hindustan Unilever are trading with higher volumes as compared to Monday.
ICICI Securities downgrades its rating on Powergrid to ‘Hold’ from ‘Buy’, with a target price of Rs 210, indicating an upside of 2%. The brokerage downgraded the stock as the company missed the revenue estimates of the brokerage and came in line with the profit estimates only due to lower finance costs.
HDFC Securities upgrades its rating on Apollo Hospitals to ‘BUY’ from ‘ADD’ with a target price of Rs 5,365, indicating an upside of 16.5%. The brokerage expects a strong revenue CAGR of 18% over FY20-24 with the company’s pharmacy and diagnostic segments as major key drivers of growth.
HDFC Securities maintains an 'Add' rating on Berger Paints with a target price upside of 4.5%. The brokerage is positive on the company owing to strong volume growth posted by its decorative paints segment in Q3, lower gross margin decline (540 bps) than Asian Paints (850 bps) and reasonable valuation. HDFC Sec also expects earnings CAGR to be 25.5% between FY22-24
Anupam Rasayan India’s Q3FY22 profit jumps 75% YoY to Rs 37.9 crore on a 43% YoY rise in revenues to Rs 271.1 crore. Healthy volume ramp-up and expansion of its client base helps Q3 performance.
Grasim's Q3FY22 net profit rises 25.7% YoY to Rs 1,746.14 crore and revenue rises 16% YoY to Rs 24,523.7 crore. Higher revenue in the chemicals segment backed by rise in caustic soda prices drives overall revenue growth. However, EBITDA fell 4% YoY to Rs 3,985 crore owing to weak performance of UltraTech Cement. Net profit rises mainly on account of deferred tax adjustments.
Manappuram Finance is trading with more than six times its weekly average trading volume. Rossari Biotech, Metropolis Healthcare, Cipla, and Gujarat Fluorochemicals are trading at more than five times their weekly average trading volumes.
Natco Pharma’s Q3FY22 profit rises 60.2% YoY to Rs 108.2 crore and revenues increase by 53% to Rs 591 crore. Revenue from pharmaceuticals rises 58% YoY to Rs 560.2 crore but the revenue from agrochemicals falls 57% to Rs 3 crore
Two Superstars buy stake in Somany Home Innovation. Porinju Veliyath buys 0.94% stake through bulk deal and 1.1% stake through insider trade, and Sunil Singhania buys 0.69% stake through bulk deal in the company on Monday.
Coal India’s Q3FY22 profit rises 48% YoY to Rs 4,556 crore, revenue from operations is up 20% YoY to Rs 28,433 crore on rising coal prices and sales increasing 20% YoY to Rs 25,991 crore. Overall, realisations for Coal India improved by 6.3% YoY to Rs 1,497 per tonne.
Cipla is falling as reports say Cipla’s promoters, Yusuf Khwaja Hamied and Mustafa Khwaja Hamied will sell up to 2.5% of their stake in the company to institutional investors through a block trade worth Rs 1,849 crore. The offer price per share is to be in the range of Rs 904 to Rs 916.7. Currently, Cipla’s promoters own a 36.11% stake in the company.
Reliance Industries’ arm Jio Platforms plans to invest $200 million for a 17% stake in mobile phone lock-screen platform Glance (part of InMobi Group). Glance also enters into a partnership with Reliance Retail Ventures to integrate its platform into JioPhone Next smartphones. Glance will use these funds to expand into markets like USA, Brazil, Mexico, and Russia.
Eicher Motors’ Q3FY22 net profit declines 14% YoY to Rs 533 as volumes dip due to the ongoing global chip shortage. Consolidated revenue rose marginally by 2% to Rs 2,881 crore because of recent price hikes announced by the company. Royal Enfield's wholesales fell 15.6% YoY to 1.6 lakh units. EBITDA margins fell 350 bps YoY to 20.2%.

Riding High:

Largecap and midcap gainers today include Sona BLW Precision Forgings Ltd. (652.35, 8.08%), LIC Housing Finance Ltd. (387.00, 7.92%) and Tata Motors Limited (DVR) (241.60, 7.52%).

Downers:

Largecap and midcap losers today include Cipla Ltd. (921.85, -3.46%), REC Ltd. (129.40, -3.25%) and Gland Pharma Ltd. (3,411.35, -2.74%).

Volume Rockets

13 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Spicejet Ltd. (64.00, 8.84%), Eicher Motors Ltd. (2,724.00, 5.96%) and Varroc Engineering Ltd. (395.70, 4.59%).

Top high volume losers on BSE were Manappuram Finance Ltd. (127.60, -10.71%), Rossari Biotech Ltd. (1,044.90, -7.65%) and Indoco Remedies Ltd. (346.20, -4.51%).

Metropolis Healthcare Ltd. (1,968.90, -4.02%) was trading at 4.6 times of weekly average. Natco Pharma Ltd. (895.35, -2.40%) and Crompton Greaves Consumer Electricals Ltd. (380.00, 2.76%) were trading with volumes 4.4 and 4.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit its 52-week highs, while 33 stocks were underachievers and hit their 52-week lows.

Stock touching their year highs included - RHI Magnesita India Ltd. (521.60, 5.59%).

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (591.75, 2.50%) and Bajaj Consumer Care Ltd. (173.15, 3.25%).

29 stocks climbed above their 200 day SMA including Zee Entertainment Enterprises Ltd. (267.55, 7.30%) and TCI Express Ltd. (1,783.25, 7.27%). 28 stocks slipped below their 200 SMA including Cipla Ltd. (921.85, -3.46%) and India Tourism Development Corporation Ltd. (365.00, -2.38%).