Market closes lower, Axis Securities maintains a ‘Buy’ on PSP Projects

Trendlyne Analysis

Indian indices closed in the red amid weak global cues. Most Asian indices closed lower as investors continue to monitor high inflation, tighter monetary policy, and the Covid-19 lockdowns in China. US shares extended their losses on Monday with the ten-year US Treasury yield rising to a three-year high ahead of the US inflation print release later today. Crude oil prices fall as ongoing Covid-19 lockdowns in China impact fuel demand. The pan-European index, STOXX 600 trades in the red, following the global trend, with bank stocks among the worst hit.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Metal closed sharply lower than Monday’s level. Nifty Energy, which opened higher, ended the trading session in the red. Nifty IT also closed in the red, taking cues from the tech-heavy NASDAQ 100, which fell 2.35% on Monday.

Nifty 50 closed at 17,530.30 (-144.7, -0.8%), BSE Sensex closed at 58,576.37 (-388.2, -0.7%) while the broader Nifty 500 closed at 15,164.70 (-160.8, -1.1%)

Market breadth is highly negative. Of the 1,897 stocks traded today, 438 were on the uptick, and 1,436 were down.

Saregama India, Blue Star, Gland Pharma, and CCL Products India are trading with higher volumes as compared to Monday.
Coal India’s capex rises 12% YoY to Rs 14,834 crore in FY22, which is 101% of the set target and the highest spend so far. The FY22 capex boost was to increase production to meet the rise in coal demand. The entire capex was met through internal accruals.
ICICI Securities expects chemical sector companies like SRF, Aarti Industries, Tata Chemicals, and PI Industries to report positive Q4FY22 results. As chemical companies are carrying inventories for at least a quarter ahead, which may have minimal impact on margins from high crude oil prices. The brokerage expects a healthier demand environment across end-user industries to drive strong revenue growth in Q1FY23.
CreditAccess Grameen’s gross loan portfolio (GLP) in March 2022 grows by 22% YoY to Rs 16,601 crore and disbursements grow 25% YoY to Rs 2,257 crore. The branch network grows 15% YoY to 1,638 branches in March 2022, the new branches primarily opening across newer markets.
Aditya Birla Capital's overall NBFC and Housing finance business lending book grows 10% YoY to Rs 66,900 crore in Q4FY22. The company's NBFC business' loan book grows 13% YoY to Rs 54,900 crore. In insurance business, individual first year Premium grows 13% YoY Rs 2,200 crore and gross written premium grows 33% YoY to Rs 1740 crore in FY22. The overall active customer base increases 46% YoY to 35 million customers.
Telecom stocks such as Bharti Airtel and Vodafone Idea are trading lower despite TRAI (Telecom Regulatory Authority of India) recommending slashing base prices in 5G spectrum auctions by nearly 40%. The new base price Rs 317 crore per MHz is still higher compared to price for 5G spectrum globally, according to reports.
Axis Securities maintains a ‘Buy’ rating on PSP Projects with a target price of Rs 620, indicating an upside of 11%. The brokerage remains bullish on the company due to its robust and diversified order book, track record of successful project executions and healthy financials to support future growth.
Rites is trading with more than eight times its weekly average trading volume. Indigo Paints, Cochin Shipyard, TCNS Clothing Co., and Mazagon Dock Shipbuilders are trading at more than three times their weekly average trading volumes.
Sunteck Realty’s pre-sales bookings surge 36% YoY to Rs 503 crore in Q4FY22. Collections rise 35% YoY to Rs 1,053 crore. Management expects growth in pre-sales and collections to continue with new project launches lined up for FY23.
Metal stocks like Hindalco Industries, Vedanta, National Aluminium Company, and Tata Steel, among others, are falling in trade. The broader sectoral index Nifty Metal is also trading in red.
Delta Corp’s Q4FY22 revenue grows 3.3% YoY to Rs 218.32 crore, but profit falls by 16.7% YoY to Rs 48.11 crore. In FY22, revenue grows 47% YoY to Rs 616.13 crore led by the casino gaming division and records a profit of Rs 66.99 crore as opposed to a loss of Rs 24.1 crore in FY21.
JSW Steel's arm JSW Utkal Steel gets environmental clearance to set up its greenfield integrated steel plant with a capacity of 13.2 million tonnes per annum (MTPA) of crude steel. The total capital expenditure on this project will be around Rs 65,000 crore.
Tata Consultancy Services’ Q4FY22 net profit rises 1.6% QoQ to Rs 9,926 crore with total revenue increasing 3.5% QoQ to Rs 50,591 crore. However, total expense rises 3.5% QoQ to Rs 38,308 crore as employee expenses increase 4.4% to Rs 28,353 crore.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (2,792.40, 4.77%), Bandhan Bank Ltd. (333.45, 3.28%) and Varun Beverages Ltd. (983.90, 3.24%).

Downers:

Largecap and midcap losers today include Bajaj Holdings & Investment Ltd. (5,698.80, -7.34%), Sanofi India Ltd. (7,314.55, -7.17%) and Adani Total Gas Ltd. (2,502.05, -6.11%).

Movers and Shakers

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

Top high volume gainers on BSE included Just Dial Ltd. (883.95, 10.00%), Mazagon Dock Shipbuilders Ltd. (328.80, 8.87%) and Cochin Shipyard Ltd. (351.05, 5.39%).

Top high volume losers on BSE were Birlasoft Ltd. (460.50, -7.24%) and TeamLease Services Ltd. (3,891.55, -0.73%).

Rites Ltd. (277.65, 4.13%) was trading at 11.0 times of weekly average. Indigo Paints Ltd. (1,640.95, 0.97%) and TCNS Clothing Co. Ltd. (849.90, 3.94%) were trading with volumes 7.2 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

11 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Adani Transmission Ltd. (2,680.55, -2.76%), Chambal Fertilisers & Chemicals Ltd. (458.35, -3.75%) and Crisil Ltd. (3,430.50, -0.71%).

11 stocks climbed above their 200 day SMA including Just Dial Ltd. (883.95, 10.00%) and Cochin Shipyard Ltd. (351.05, 5.39%). 21 stocks slipped below their 200 SMA including Birlasoft Ltd. (460.50, -7.24%) and Sanofi India Ltd. (7,314.55, -7.17%).