Trendlyne Analysis

Nifty 50 closed in the red with the Indian volatility index, India VIX rising by over 15%. All major Asian indices closed lower, following the global trend, on fears of high inflation levels and prospect of aggressive monetary policy by the US Fed. US indices closed sharply lower on Friday after the US Fed Chairman, Jerome Powell said on Thursday that a 0.5 percentage point hike is on the table for the US Fed’s next meeting to be held in May. The Euro trades lower after opening in the green following French President Emmanuel Macron's win against Marine Le Pen, which was largely expected by markets and political analysts. Shanghai SE Composite Index closed over 5% lower as the Covid-19 outbreak spread to Beijing with some areas in the capital under lockdown.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Bank, which opened in the red, closed marginally higher than Friday’s level. Nifty IT closed in the red, tracking the tech-heavy NASDAQ 100, which fell 2.6% on Friday.

NIfty 50 closed at 16,953.95 (-218, -1.3%), BSE Sensex closed at 56,579.89 (-617.3, -1.1%) while the broader Nifty 500 closed at 14,673.00 (-221.9, -1.5%)

Market breadth is moving down. Of the 1,924 stocks traded today, 355 were on the uptrend, and 1,540 went down.

• Supreme Industries, EPL, Solar Industries India, and Hindustan Unilever are trading with higher volumes as compared to Friday.

• Realty stocks like DLF, Macrotech Developers, Godrej Properties, Oberoi Realty and Prestige Estates projects, among others, are falling in trade. The broader sectoral index Nifty Realty is also trading in the red.

• Century Textiles rises as it reports a net profit of Rs 84.4 crore in Q4FY22 against a loss of Rs 10 crore, a year ago. Total sales jump 44.8% YoY to Rs 1,188 crore. The company recommends a dividend of Rs 4 per share for the year FY22.

• Dalmia Bharat and Birlasoft touch an all-time high of Rs 1,180 and Rs 314.5, respectively. Dalmia Bharat is rising for three consecutive sessions while Birlasoft rises for two consecutive sessions.

• India Ratings and Research expects growth momemtum for residential real estate sector to be robust in FY23 and sees a 12% YoY rise in housing sales for FY23.

• RailTel Corporation of India receives order worth Rs 122.08 crore from Electronics & Information Technology Department, Government of Odisha for provisioning of secondary bandwidth for Odisha State Wide Network project. RailTel’s project is to be completed over a period of five years.

• Edelweiss maintains a ‘Buy’ rating on ICICI Bank with a target price of Rs 945, indicating an upside of 26%. The brokerage remains bullish on the company’s overall improvement in asset quality, strong digital push, focus on risk management and good provision coverage. The brokerage expects revenue to grow at a 16.8% CAGR over FY22-24.

• Godrej Agrovet is trading with more than 15 times its weekly average trading volume. Mahindra CIE Automotive, Rossari Biotech, Quess Corp, and Hikal are trading at more than four times their weekly average trading volumes.

• Godrej Agrovet rises after Indonesia announces ban on palm oil exports. Godrej Agrovet is a major local producer of palm oil and specializes in palm oil plantations, crop protection, among others.

• Metal stocks like Tata Steel, Hindalco Industries, Vedanta, Hindustan Zinc, NMDC and Coal India, among others, are falling in trade. The broader sectoral index BSE Metal is also trading in red amid concerns of poor metal demand in China.

• Stocks like Maruti Suzuki India, Motilal Oswal Financial Services, Ambuja Cements, and Biocon, among others, are rising over the past week, ahead of their financial results.

• Glenmark Pharma launches Teneligliptin + Pioglitazone fixed dose combination (FDC) drug for Type 2 Diabetes in India. This FDC drug, under the brand name Zita Plus Pio, helps improve glycemic control among adult patients with insulin resistance. Glenmark Pharma is the first company to launch this FDC in India.

• Cyient to acquire a 100% stake in Citec, an international plant and product engineering services company for Euro 94 million or Rs 775.7 crore in an all-cash deal. The company expects the acquisition to strengthen its presence in the European markets and add new engineering capabilities to its portfolio.

• Tejas Networks falls after it reports a net loss of Rs 49.6 crore in Q4FY22 against a profit of Rs 33.5 crore in Q4FY21. Its revenues fell 37.24% YoY to Rs 141 crore as semiconductor shortages hit telecom gear production.

• Tata Metaliks is falling as its Q4FY22 net profit falls 30% YoY to Rs 52.36 crore despite a 22.5% increase in revenues to Rs 807.9 crore. Net profit falls as cost of materials rises 44% YoY to Rs 542.7 crore in Q4FY22 due to increase in prices of major raw materials like coal, coke, and iron ore.

• Welspun Corp receives an export order from South East Asia of 55,000 million tonnes for the manufacture and supply of pipes for an important offshore project. The order will be executed from the facilities existing in India.

• Hindustan Zinc’s Q4FY22 net profit rises 18% YoY to Rs 2,928 crore and revenue rises 25% YoY to Rs 9,074 crore on the back of higher volumes and a rise in metal prices. EBITDA rises 29% YoY to Rs 5,007 crore. In FY22, net profit rises 20.6% YoY to Rs 9,629 crore and revenue rises 25.4% YoY to Rs 30,656 crore.

• FMCG stocks like Hindustan Unilever, Nestle India, Britannia Industries, ITC, and Godrej Consumer Products, among others are falling in trade after Indonesia announces a ban on palm oil exports. The broader sectoral index Nifty FMCG is also trading in the red.

• ICICI Bank’s Q4FY22 net profit jumps 59% YoY to Rs 7,019 crore with net interest income rising 21% YoY to Rs 12,605 crore. Provisions fall 63% YoY to Rs 1,069 crore. The bank’s asset quality improves as NPAs fall by 136 bps YoY to 3.6% and 38 bps to 0.76%, for gross and net NPAs respectively. Fee income grew 14% YoY to Rs 4,366 crore with retail, rural, business, and SME banking contributing 77% to total fee growth.

• Sun Pharmaceuticals and Aurobindo Pharma are recalling different products in the US market for various reasons, as per the enforcement report by the US Food and Drug Administration (USFDA), according to reports. Aurobindo Pharma is recalling Cyanocobalamin Injection, which is used to treat and prevent vitamin B12 deficiency. Sun Pharma is recalling Cequa, a drug used to increase production of natural tears in the eyes.

• Reliance Industries cancels its Rs 24,713-crore deal with Future Group to take over its retail assets. Future Group's secured creditors voted against the scheme of transfer of its retail and logistics business to the Reliance Industries' subsidiaries, despite unsecured creditors and shareholders approving the deal.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (1,094.80, 5.28%), Adani Power Ltd. (272.05, 5.00%) and Aditya Birla Capital Ltd. (115.75, 2.93%).

Downers:

Largecap and midcap losers today include Tata Communications Ltd. (1,119.50, -9.29%), Coal India Ltd. (188.45, -6.78%) and Hindustan Zinc Ltd. (322.85, -6.52%).

Volume Rockets

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

Top high volume gainers on BSE included Mahindra CIE Automotive Ltd. (198.90, 6.34%), IOL Chemicals and Pharmaceuticals Ltd. (481.90, 5.62%) and Tube Investments of India Ltd. (1,822.30, 4.13%).

Top high volume losers on BSE were Tata Communications Ltd. (1,119.50, -9.29%), Hikal Ltd. (393.70, -5.73%) and Nippon Life India Asset Management Ltd. (317.35, -3.00%).

Godrej Agrovet Ltd. (505.70, 2.18%) was trading at 22.9 times of weekly average. Century Textiles & Industries Ltd. (886.40, 0.85%) and Quess Corp Ltd. (672.60, 1.61%) were trading with volumes 8.0 and 7.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (272.05, 5.00%), Swan Energy Ltd. (320.40, 4.35%) and Vinati Organics Ltd. (2,158.60, -2.03%).

Stocks making new 52 weeks lows included - Pfizer Ltd. (4,315.25, -0.76%) and HDFC Asset Management Company Ltd. (2,005.00, -2.03%).

9 stocks climbed above their 200 day SMA including Aditya Birla Capital Ltd. (115.75, 2.93%) and KRBL Ltd. (253.10, 1.77%). 25 stocks slipped below their 200 SMA including Hindustan Zinc Ltd. (322.85, -6.52%) and Just Dial Ltd. (851.30, -4.54%).