Market closes lower, Zen Technologies rises on winning an order worth Rs 55 crore

Trendlyne Analysis

Nifty 50 closed lower with the Indian volatility index rising above 18% amid weak global cues. Asian indices closed in the red as US Federal Reserve Chairman Jerome Powell toughened his stance on inflation on Thursday. Powell said that 0.5% interest rate increase will be ‘on the table’ when the Fed meets in May. US indices, which were trading in the green on Thursday, closed lower on the fear of an aggressive rate-hike outlook. Oil is headed for a weekly loss on concern over falling energy demand in China due to Covid-19 lockdowns and weak global growth prospects. European indices trade in the red on the back of a higher likelihood of aggressive monetary policy tightening and the impact of the war in Ukraine.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Bank and Nifty Metal closed lower than Thursday’s levels. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100 futures.

Nifty 50 closed at 17,171.95 (-220.7, -1.3%), BSE Sensex closed at 57,197.15 (-714.5, -1.2%) while the broader Nifty 500 closed at 14,894.85 (-159.1, -1.1%)

Market breadth is in the red. Of the 1,899 stocks traded today, 669 were in the positive territory and 1,181 were negative.

Tata Teleservices (Maharashtra), Bajaj Electricals, Symphony, and Carborundum Universal are trading with higher volumes as compared to Thursday.
ICICI Lombard General Insurance’s Q4FY22 profit falls 10% YoY to Rs 313 crore even as revenue rises 33% YoY to Rs 4,636 crore, as other expenses rise 67% YoY to Rs 775 crore. In FY22, profit falls 13.7% YoY to Rs 1,271 crore and revenue rises 32.6% YoY to Rs 16,129.8 crore.
PSU bank stocks like State Bank of India, Indian Bank, Bank of Baroda, and Canara Bank among others are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.
Crisil’s Q4FY22 net profit increases 45.6% YoY to Rs 121.6 crore with revenue rising 20.1% YoY to Rs 594.94 crore. Research services segment’s revenue grows 26.3% YoY to Rs 394.24 crore. However, total expenses for the company rose 11.9% YoY to Rs 445.74 crore because of an increase in employee benefit costs by 18.7%. The company declared an interim dividend of Rs 7 per share with record date as May 19, 2022.
Reliance Industries, State Bank of India, Bajaj Finance, and Asian Paints, among others, are outperforming the Nifty 50 index over the past month.
Pharma stocks like Sun Pharmaceutical Industries, Divi’s Laboratories, Cipla, Dr. Reddy’s Laboratories, Gland Pharma, and Torrent Pharmaceuticals, among others are falling in trade. The broader sectoral index Nifty Pharma is also trading in red.
L&T Technology services Q4FY22 profit rises 5.3% QoQ to Rs 262 crore and revenue rises 4.26% QoQ to Rs 1,798 crore on the back of broad-based growth across its segments. Operating profit margin marginally falls by 10 bps QoQ to 21.67% as expenses rise 4% QoQ to Rs 1,439.2 crore.
Zen Technologies rises on winning an order worth Rs 55 crore for a period of five years. Its total order book (domestic and exports) now stands at Rs 477.04 crore.
Borosil Renewables surges, ahead of its board meeting to finalise fundraising options through issuance of equity shares or through preferential issue on a private placement basis. The meeting will be held on Monday.
Sterlite Technologies is trading with more than 12 times its weekly average trading volume. Elgi Equipments, Bombay Burmah Trading Corporation, Cyient and EPL are trading at more than five times their weekly average trading volumes.
HDFC Securities maintains an 'Add' rating on ICICI Securities but cuts its target price by 19.6% to Rs 740. The brokerage reduces the valuation multiple for ICICI Sec as its broking revenues fell 5% QoQ in Q4FY22 on lower cash delivery volumes. The company continued to lose market share in the derivatives segment owing to higher competition from new-age fintech brokers.
Adani Enterprises, Reliance Industries, Angel One, and IIFL Finance, among others, are in overbought zone according to technical indicator relative strength index or RSI
Cyient’s Q4FY22 revenue rises 2% QoQ to Rs 1,230.6 crore and profit rises 17% QoQ to Rs 154.2 crore on an increase in orders for digital services. Operating profit margin marginally rises 8 bps QoQ to 17.98%.
HDFC Securities maintains a ‘BUY’ rating on Mastek with a target price of Rs 3,530, indicating an upside of 19.8%. The brokerage remains positive about the company as its order book grew 24% YoY to Rs 1,469 crore on the back of a $ 65 million order from the UK government. HDFC Securities expects the company’s revenue to grow at an 18.1% CAGR over FY22-24.
Borosil Renewables and Mazagon Dock Shipbuilders touch an all-time high of Rs 774.5 and Rs 342.4 respectively. Both stocks are rising for two consecutive sessions.
Rallis India is falling as it announces a loss of Rs 14 crore in Q4FY22 against a profit of Rs 8 crore in Q4FY21. The company reports losses despite a 9% revenue growth in Q4FY22 to Rs 508 crore due to high raw material costs, pricing issues, and unseasonal rains.
Vedanta Group looks to divest 20-25% stake each in the three main business units of Sterlite Technologies, according to news reports. It seeks a valuation of $2 billion for each of the business units. According to its recent press release, Sterlite Technologies is mulling a fundraise via the equity route.
Tata Communications' Q4FY22 revenue rises 9.5% YoY to Rs 4,526.6 crore and profit rises 22% YoY to Rs 365.1 crore on higher other income. The maximum growth in revenue came in from the data services segment at 6.9% YoY to Rs 3,316 crore. In FY22, revenue falls by 1.1% YoY to Rs 17,056.8 crore and profit rises 18.5% to Rs 1,481.8 crore.
TVS Motors invests 100 million pounds in Norton Motorcycles, a UK motorcycle brand that TVS motors acquired in 2020. Part of this investment was used to open its new manufacturing facility in West Midlands to build bikes using traditional hand-crafted techniques with modern-day machinery.
Adani Ports & Special Economic Zone (APSEZ) through its subsidiary Adani Harbour Services to acquire a 100% stake in Ocean Sparkle (OSL) for a total consideration of Rs 1,530 crore in an all-cash deal. The company will directly acquire a 75.69% stake in OSL for Rs 1,135.3 crore and indirectly acquire the remaining 24.31% stake by acquiring a 100% stake in Savi Jana Sea Foods for Rs 398.87 crore. The company expects this acquisition to increase its footprint in the marine service market.
HCL Technologies’ Q4FY22 net profit rises 4.4% QoQ to Rs 3,593 crore with revenue increasing marginally by 1.2% QoQ to Rs 22,597 crore. The products and platforms segment reports a fall in revenues by 23.2% QoQ to Rs 2,316 crore dragging down total revenue growth. However, EBIT margins fall 110 bps QoQ to 17.9%. The company’s board declares an interim dividend of Rs 18 per share with record date as April 29, 2022.

Riding High:

Largecap and midcap gainers today include Tata Elxsi Ltd. (8,358.00, 5.75%), Adani Power Ltd. (259.10, 4.98%) and United Breweries Ltd. (1,545.60, 4.18%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (2,520.10, -8.16%), ICICI Lombard General Insurance Company Ltd. (1,318.00, -5.92%) and Hindalco Industries Ltd. (514.15, -4.83%).

Volume Rockets

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

Top high volume gainers on BSE included Sterlite Technologies Ltd. (235.05, 13.83%), Cyient Ltd. (917.20, 10.31%) and Elgi Equipments Ltd. (337.50, 8.84%).

Top high volume losers on BSE were Rallis India Ltd. (253.65, -9.88%), Polycab India Ltd. (2,520.10, -8.16%) and ICICI Lombard General Insurance Company Ltd. (1,318.00, -5.92%).

Bombay Burmah Trading Corporation Ltd. (967.45, 6.75%) was trading at 18.8 times of weekly average. Esab India Ltd. (3,358.35, 1.96%) and EPL Ltd. (169.05, -3.12%) were trading with volumes 8.8 and 6.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

12 stocks overperformed with 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (259.10, 4.98%), Coal India Ltd. (202.15, -2.30%) and EID Parry (India) Ltd. (519.05, 3.03%).

20 stocks climbed above their 200 day SMA including United Breweries Ltd. (1,545.60, 4.18%) and J B Chemicals & Pharmaceuticals Ltd. (1,703.00, 3.42%). 16 stocks slipped below their 200 SMA including Rallis India Ltd. (253.65, -9.88%) and Aegis Logistics Ltd. (228.20, -4.86%).