Trendlyne Analysis

Nifty 50 closed in the red with the Indian volatility index, India VIX rising above 20%. Asian indices closed lower as investors remain anxious about the effect of Covid-19 lockdowns in parts of China. However, China’s central bank said it would support its economy as worries grew about Beijing’s insistence on continuing with a “Zero-Covid” policy that would harm domestic and global growth. All US indices closed sharply lower on Tuesday led by the tech-heavy NASDAQ 100, which closed over 3.8% lower. Stock markets remain jittery amid mixed earnings, rising inflation, and prospect of aggressive monetary policy by the US Fed. Oil prices rose after Russia said it would cut natural gas supply to Eastern Europe. The pan-European index, STOXX 600 trades lower, extending its losses for a fourth straight day as investors monitor earnings and natural gas supply chain disruption in Europe.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, following the benchmark index. Nifty Bank and Nifty Auto closed lower than Tuesday’s levels. Nifty IT also closed in the red, tracking the tech-focused NASDAQ 100, which closed sharply lower on Tuesday.

Nifty 50 closed at 17,038.40 (-162.4, -0.9%), BSE Sensex closed at 56,819.39 (-537.2, -0.9%) while the broader Nifty 500 closed at 14,756.00 (-142.4, -1.0%)

Market breadth is overwhelmingly negative. Of the 1,864 stocks traded today, 507 were gainers and 1,329 were losers.

• Endurance Technologies, V Mart Retail, Procter & Gamble Hygiene & Healthcare, and Krishna Institute of Medical Sciences are trading with higher volumes as compared to Tuesday.

• Stocks like Adani Enterprises, Havells India, Ambuja Cements, NLC India, and Mahindra & Mahindra, are in the overbought zone according to the technical indicator relative strength index or RSI.

• Syngene International's Q4FY22 profit rises 7% YoY to Rs 148 crore and revenue rises 14% YoY to Rs 773 crore. The growth is result of the company catching up on projects delayed by supply chain issues and other Covid-related disruptions. In FY22, the company's profit rises 10% YoY to Rs 421 crore.

• HDFC Securities initiates a 'BUY' on Mahindra & Mahindra with a target price upside of 17.8%. The brokerage is positive on the auto major as it is witnessing a strong traction in its utility vehicle segment especially for new launches like XUV 700. HDFC Sec also expects the sales volumes for M&M's tractor segment to revive in FY23.

• Rainbow Childrens Medicare’s Rs 1,580.85-crore IPO gets bids for 29% of the available 2.05 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 48% of the available 1.01 crore shares on offer. The public issue comprises of a fresh issue of equity shares of Rs 280 crore and an offer for sale of up to Rs 1,300.85 crore.

• Campus Activewear’s Rs 1,400-crore IPO gets bids for 3.21X of the available 3.36 crore shares on offer on second day of bidding. The retail investor quota gets bids for 3.94X of the available 1.6 crore shares on offer.

• Public sector bank stocks like State Bank of India, 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.

• KPIT Technologies Q4FY22 net profit rises 14.6% QoQ to Rs 80.5 crore and revenue rises 5.3% QoQ to Rs 664.8 crore. The growth in revenues is primarily due to the Americas region with a 10.1% QoQ rise in revenues to Rs 250.6 crore. However, employee benefits expense rises 57.1% QoQ.

• Mahindra Logistics is trading with more than 32 times its weekly average trading volume. KPIT Technologies, Vardhman Textiles, UTI Asset Management Company, and Dilip Buildcon are trading at more than four times their weekly average trading volumes.

• CARE Ratings slumps in trade after Managing Director and CEO Ajay Mahajan resigns citing personal reasons. His resignation is effective from the closure of business hours on May 31. Executive Director Mehul Pandya will be the interim CEO from June 1 onwards.

• NTPC signs a memorandum of understanding (MoU) with Energy Vault Holdings for the deployment of gravity-based energy storage technology. The objective of the MoU is to form a long-term partnership with Energy Vault for the deployment of Energy Vault’s EVx, a gravity-based energy storage technology and software solutions, based on the outcome of a joint feasibility study.

• Axis Securities maintains a ‘Buy’ rating on Cyient with a target price of Rs 1,000, indicating an upside of 11%. The brokerage believes the company’s recent acquisition of Citec will provide profitable growth in the coming quarters. The brokerage remains positive on the company’s order pipeline, which has multiple long-term contracts in the field of ER&D (Engineering Research & Development).

• Tata Consultancy Services, HDFC Bank, ACC, and Hathway Cable & Datacom, among others, are outperforming the Nifty 50 index over the past week, post Q4FY22 results.

• Life Insurance Corporation of India (LIC) IPO's price band is set at Rs 902-949 per share. The Centre will now sell only up to 3.5% stake in the IPO instead of the earlier 5%. The Centre expects to receive up to Rs 21,000 crore from the share issue. The IPO opens on May 4 and closes on May 9.

• Omaxe surges after securing funding of Rs 440 crore from Varde Partners, a global alternative investment firm. The company will deploy the funds for the acceleration of construction and expansion and delivery of its projects.

• United Breweries’ Q4FY22 profit rises 61% YoY to Rs 163.4 crore and revenues increase by 1.3% to Rs 3,664.7 crore. Net profit rises despite a marginal increase in revenue as the company reported an exceptional item loss of Rs 62.2 crore in Q4FY21.

• Schaeffler India rises as its Q4FY22 net profit rises 48.4% YoY to Rs 207.1 crore and revenue rises 18.6% YoY to Rs 1,587.6 crore driven by growth in the mobility components segment.

• AU Small Finance Bank’s Q4FY22 net profit rises 105% YoY to Rs 346 crore and revenue rises 26% YoY to Rs 1,978.4 crore on higher interest margins. Net interest income rises 42.8% YoY to Rs 937 crore and net interest margin rises by 60 bps YoY to 6.3%. The lender’s net NPAs (non-performing assets) decline by 170 bps YoY to 0.5%.

• Bajaj Finance’s Q4FY22 net profit rises 79.6% YoY to Rs 2,420 crore and revenue rises 25.9% YoY to Rs 8,630.3 crore. Net interest income grows 30% YoY to Rs 6,068 crore and fee income rises 51% YoY to Rs 1,164 crore. Total AUM (assets under management) for the NBFC rises 29% YoY to Rs 1.97 lakh crore.

• Tata Coffee’s net profit rises 12% YoY to Rs 64.28 crore in Q4FY22 and revenues increase by 8% to Rs 663.4 crore. Net profit rises despite a 31.2% increase in cost of raw materials to Rs 256.4 crores due to changes in inventories of finished goods, work in progress, and stock-in-trade.

• Rainbow Childrens Medicare raises Rs 470 crore from anchor investors by selling 86.63 lakh equity shares at Rs 542 per share. Investors include Government of Singapore, Monetary Authority of Singapore, IIFL Special Opportunities Fund, Bajaj Allianz Life Insurance, HDFC Life Insurance, SBI Mutual Fund (MF), HSBC, Nippon India, among others.

• Wipro to acquire Rizing Intermediate Holdings, a global SAP consulting firm to help expand its SAP consulting operations. According to reports, the value of the deal is $540 million. The deal is expected to help Wipro expand its services in oil and gas, utilities, manufacturing, and consumer industries. The acquisition is subject to regulatory approvals and the transaction will close before June 30.

Riding High:

Largecap and midcap gainers today include Endurance Technologies Ltd. (1,239.05, 6.54%), Ruchi Soya Industries Ltd. (1,103.45, 6.53%) and Adani Power Ltd. (299.20, 4.74%).

Downers:

Largecap and midcap losers today include Bajaj Finance Ltd. (6,714.10, -7.27%), MindTree Ltd. (3,538.35, -4.35%) and Trent Ltd. (1,225.00, -4.29%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Alok Industries Ltd. (27.75, 16.35%), KPIT Technologies Ltd. (586.55, 12.50%) and IIFL Finance Ltd. (388.25, 9.83%).

Top high volume losers on BSE were UTI Asset Management Company Ltd. (860.05, -7.51%), Bajaj Finance Ltd. (6714.10, -7.27%) and Krishna Institute of Medical Sciences Ltd. (1,295.70, -3.13%).

Mahindra Logistics Ltd. (517.15, 8.74%) was trading at 40.9 times of weekly average. TTK Prestige Ltd. (777.55, -0.87%) and Schaeffler India Ltd. (2,234.90, 6.48%) were trading with volumes 11.4 and 6.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

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

Stocks touching their year highs included - Adani Ports & Special Economic Zone Ltd. (887.30, -2.44%), Adani Power Ltd. (299.20, 4.74%) and EID Parry (India) Ltd. (522.45, -3.81%).

Stocks making new 52 weeks lows included - Infibeam Avenues Ltd. (17.50, -3.31%) and Zomato Ltd. (75.85, -4.71%).

14 stocks climbed above their 200 day SMA including Alok Industries Ltd. (27.75, 16.35%) and Just Dial Ltd. (914.50, 6.83%). 19 stocks slipped below their 200 SMA including Bajaj Finance Ltd. (6,714.10, -7.27%) and Hindustan Petroleum Corporation Ltd. (281.85, -3.64%).