Trendlyne Analysis

Nifty 50 closed in the red after gyrating between gains and losses on a volatile day of trade. Major Asian indices closed lower, taking cues from the US indices, which closed lower on Monday. The US indices hit a 13-month low amid rising inflation and rate hikes by the US Federal Reserve. The US dollar continues to gain amid prospect of aggressive rate hikes in the US. The Indian rupee hit a new lifetime low of 77.52 against the US dollar on Monday as foreign investors continue to pull out their investments from Indian markets. Crude oil prices fall on slowing global economic growth aggravated by the Covid-19 lockdown in Shanghai and European Union’s move to soften the proposed ban on Russian oil. European stocks trade higher, showing signs of recovery after a sharp fall on Monday amid fears over lower global economic growth rates.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Energy closed lower while Nifty FMCG closed in the green. Nifty Metal closed over 5% lower than Monday’s level. Nifty IT closed in the red, following the tech-focused NASDAQ 100, which closed lower on Monday.

Nifty 50 closed at 16,240.05 (-61.8, -0.4%) , BSE Sensex closed at 54,364.85 (-105.8, -0.2%) while the broader Nifty 500 closed at 13,855.95 (-135.8, -1.0%)

Market breadth is sharply down. Of the 1,881 stocks traded today, 338 were in the positive territory and 1,520 were negative.

• Aditya Birla Sun Life AMC, Kajaria Ceramics, Procter & Gamble Health, and Star Health and Allied Insurance Company are trading with higher volumes as compared to Monday.

• Tata Power sees a short build-up in its May 26 futures series as its open interest rises 9.9% with put to call ratio at 0.42

• MRF’s Q4FY22 net profit falls 50.2% YoY to Rs 165.2 crore due to high raw material prices, but revenue rises 10.2% YoY to Rs 5,370.8 crore on higher sales volume. Cost of materials consumed rises 13% YoY to Rs 3,293.1 crore and total expenses rise 16.2% YoY to Rs 5,142.8 crore.

• Prudent Corporate Advisory Services’ Rs 538.6-crore IPO gets bids for 36% of the available 60.1 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 72% of the available 29.5 lakh shares on offer. The issue is entirely an offer for sale of Rs 538.6 crore.

• Asian Paints' Q4FY22 net profit stays flat YoY at Rs 874 crore despite revenues rising 21% YoY to Rs 7,890 crore. Higher input costs and exceptional items of Rs 115 crore owing to devaluation of Sri Lankan currency and certain credit losses hamper its earnings growth.

• Vedant Fashions’ Q4FY22 net profit rises 86.3% YoY to Rs 88.7 crore and revenue rises 53% YoY to Rs 307.4 crore led by strong retail growth across channels. EBITDA margin rises by 230 bps YoY to 49.6% despite total expenses rising 38.9% YoY to Rs 187.8 crore.

• Metal stocks like JSW Steel, Tata Steel, Hindustan Zinc, Vedanta, and Hindalco Industries, among others are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

• HDFC Securities upgrades its rating on Tata Power from ‘Sell’ to ‘reduce’ with a target price of Rs 231. The brokerage has a neutral outlook on the company as its Mudra unit’s sales fell 67% YoY in Q4FY22. However, the brokerage expects the company’s revenue to grow at a 9.1% CAGR over FY22-FY24.

• Stocks like Mahindra & Mahindra, Shree Cements, Hero MotoCorp, and NTPC, among others, are outperforming their sector over the past month.

• Minda Industries is trading with more than six times its weekly average trading volume. Gujarat Narmada Valley Fertilizers & Chemicals, Godrej Agrovet, Gujarat Fluorochemicals, and EPL are trading at more than three times their weekly average trading volumes.

• ICICI Securities maintains a ‘Buy’ rating on PVR with a target price of Rs 1,965, indicating an upside of 15.2%. The brokerage remains positive about the company’s prospects on rising average ticket prices, rising occupancy rates, and the addition of 126 screens in FY23. The brokerage expects the company’s operating revenue to grow at a 81.7% CAGR over FY22-24.

• Ramkrishna Forgings receives a multi-year export order worth Rs 105 crore per annum from a leading manufacturer of chassis-related systems and components for trailers, trucks and buses in the USA. The company expects supplies to commence from CY23.

• Sun Pharma is falling as its Halol manufacturing facility at Gujarat receives 10 observations from the US Food & Drug Administration (USFDA). The USFDA conducted a good manufacturing practices or GMP inspection from April 26 to May 9.

• Cipla launches RT-Direct COVID-19 RT PCR Test kit in partnership with Genes2Me in India. This RT Direct test protocol does not require RNA extraction process, which makes it faster and helps deliver results in 45 minutes.

• Aarti Drugs Q4FY22 net profit rises 7% YoY to Rs 55.3 crore and revenue rises 38.6% YoY to Rs 697.2 crore on higher sales volumes. EBITDA margin falls by 351 bps YoY to 12.8% as the cost of materials consumed rises 56.3% YoY to Rs 471 crore.

• Infibeam Avenues’ Q4FY22 net profit rises 15.6% QoQ to Rs 28.9 crore mainly due to a deferred tax credit of Rs 24.8 crore. Revenues fall 7% QoQ to Rs 372.1 crore due to reduced demand in its payments business. However, net profit rises 19.6% in FY22 to Rs 86.5 crore and revenues increase by 90% to Rs 1,303.9 crore.

• Dalmia Bharat’s Q4FY22 net profit declines 5.1% YoY to Rs 595 crore but revenue marginally rises by 3.4% YoY to Rs 3,433 crore on higher sales volumes. EBITDA margin falls by 420 bps YoY to Rs 20.1% on high power and fuel costs and rising freight charges.

• JSW Steel's crude steel production increases 22% YoY to 16.67 lakh tonnes in April 2022. Flat rolled products increases 25% YoY to 12 lakh tonnes and long rolled products increases 5% YoY to 3.54 lakh tonnes.

• Rainbow Children's Medicare shares list at a 6% discount to the issue price of Rs 542 on its debut on the bourses after getting bids for 12.4X of the total shares on offer.

• Prudent Corporate Advisory Services raises Rs 159.4 crore from investors by selling 25.3 lakh equity shares at Rs 630 per share to 24 anchor investors. Investors include HSBC, Societe Generale, DSP Mutual Fund, Axis Mutual Fund, UTI MF, Aditya Birla Sun Life Trustee, among others.

• KEI Industries Q4FY22 net profit rises 75.2% YoY to Rs 115.9 crore and revenue rises 44.1% YoY to Rs 1,799.5 crore led by robust growth in the cables segment. Revenue from the cables segment rises 51.9% YoY to Rs 1,621.3 crore. EBITDA margin falls by 120 bps YoY to 10% on a sharp increase in input costs.

• Gujarat Narmada Valley Fertilizers & Chemicals Q4FY22 net profit surges 1.1X YoY to Rs 643.2 crore as revenue increases 59.9% to Rs 2,771.7 crore. Revenue from the fertilizer segment rises 53.9% YoY to Rs 728.7 crore and revenue from chemicals increases 63.1% to Rs 2,019.6 crore. Power and fuel expenses for the company rise 33.3% to Rs 315.5 crore and cost of materials shoots up 1.4X YoY to Rs 1,177.7 crore.

Riding High:

Largecap and midcap gainers today include Eicher Motors Ltd. (2,415.55, 3.04%), Hindustan Unilever Ltd. (2,180.40, 3.01%) and Asian Paints Ltd. (3,086.35, 2.70%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (215.25, -8.95%), Adani Transmission Ltd. (2,482.55, -8.17%) and Adani Green Energy Ltd. (2,486.70, -8.12%).

Movers and Shakers

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

Top high volume gainers on BSE included Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (816.95, 7.76%), Minda Industries Ltd. (892.60, 5.44%) and Berger Paints (India) Ltd. (676.60, 1.85%).

Top high volume losers on BSE were Gujarat Fluorochemicals Ltd. (2,315.90, -5.00%), Indostar Capital Finance Ltd. (174.95, -5.00%) and SRF Ltd. (2,113.15, -5.00%).

Cera Sanitaryware Ltd. (3,839.15, -0.66%) was trading at 16.8 times of weekly average. Venky's (India) Ltd. (1,983.95, -4.24%) and Godrej Agrovet Ltd. (506.80, -3.66%) were trading with volumes 7.2 and 4.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks took off, crossing 52 week highs, while 44 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Power Grid Corporation of India Ltd. (243.65, -0.61%) and Esab India Ltd. (3,383.20, -0.62%).

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (513.45, -1.39%) and Zydus Lifesciences Ltd. (330.10, -1.71%).

21 stocks climbed above their 200 day SMA including Minda Industries Ltd. (892.60, 5.44%) and Brightcom Group Ltd. (68.60, 4.97%). 19 stocks slipped below their 200 SMA including Tata Steel Ltd. (1,164.90, -6.98%) and Tanla Platforms Ltd. (1,224.95, -6.42%).