Trendlyne Marketwatch    
16 May 2022
Market closes higher, Eicher Motors' Q4 profit rises 16% YoY to Rs 610.1 crore

Trendlyne Analysis

Nifty 50 closed higher with the Indian volatility index, India VIX rising above 24.5%. Asian indices closed higher, tracking the US indices which also closed sharply higher on Friday but still posted weekly losses. The tech-heavy NASDAQ 100 closed 3.7% higher on Friday but lost over 2.4% last week. Market volatility is expected to continue this week as investors continue to monitor high inflation levels, slowing economic growth, and the effect of hawkish monetary policies from central banks. Nifty 50 fell 3.8% last week on the back of interest rate hikes, a weakening Indian rupee, and foreign investors pulling out over Rs 14,180.9 crore from the Indian market. European stock markets trade lower, as investors remain cautious over the outlook for global economic growth amid prevailing geopolitical tensions.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Energy and Nifty Metal close higher than Tuesday’s levels. Nifty IT closed in the red, despite the tech-focused NASDAQ 100 closing 3.7% higher on Friday.

Nifty 50 closed at 15,842.30 (60.2, 0.4%), BSE Sensex closed at 52,973.84 (180.2, 0.3%) while the broader Nifty 500 closed at 13,571.20 (99.7, 0.7%)

Market breadth is in the green. Of the 1,887 stocks traded today, 1,229 were gainers and 621 were losers.

  • Procter & Gamble Health, Saregama India, SIS, and AIA Engineering are trading with higher volumes as compared to Friday.

  • Eicher Motors sees a long build-up in its May 26 futures series after it announces Q4FY22 results. Its open interest rises 13.5% with put to call ratio at 0.83.

  • Affle India's Q4FY22 net profit rises 10.3% QoQ to Rs 68.5 crore but revenues fall 2.7% to Rs 344.4 crore. The company’s revenues from India fall 2.5% QoQ to Rs 108.4 crore. Net profit rises 58.6% YoY in FY22 to Rs 213.9 crore and revenue jumps 2.1 times to Rs 1,153.3 crore.

  • Stocks like Oberoi Realty, Nazara Technologies, Trent, Tanla Platforms, and Emami, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

  • PSU Banks stocks like SBI, Canara Bank, Bank of Baroda, Indian Bank and Indian Overseas Bank are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in green.

  • Eicher Motors' Q4FY22 profit rises 16% YoY to Rs 610.1 crore and revenue rises 8.4% YoY to Rs 3,311.3 crore. In FY22, the company's profit rises 24.5% to Rs 1,676.6 crore.

  • Auto stocks like Maruti Suzuki India, Mahindra & Mahindra, Bajaj Auto, Eicher Motors, and Hero MotoCorp, among others are rising in trade. The broader sectoral index Nifty Auto is also trading in the green.

  • Paytm’s associate company, Paytm lnsuretech, terminates the share purchase agreement to acquire 100% of Raheja QBE General Insurance Company. Paytm Insuretech terminates the deal as the share purchase agreement was not consummated within the time period set by the parties.

  • Nazara Technologies' Q4FY22 profit falls 74.1% QoQ to Rs 2.2 crore due to increase in content, event, web server, and other expenses. Revenue falls 2.7% QoQ to Rs 184.7 crore. In FY22, the company's profit rises 208.7% to Rs 28.4 crore.

  • ICICI Direct maintains a ‘Buy’ rating on Brigade Enterprises with a target price of Rs 550, indicating an upside of 35%. The brokerage expects robust residential sales volume growth led by strong end-user demand and a recovery in demand for commercial real estate to drive profitability for the company. The brokerage expects net profit to grow at a 68.2% CAGR over FY22-24.

  • Oracle Financial Services Software and Honeywell Automation India touch 52-week low of Rs 3,101 and Rs 32,303 respectively. Both stocks are falling for 2 consecutive sessions.

  • Shipping Corporation of India's Q4FY22 profit rises 77.43% YoY to Rs 152.2 crore and revenue rises 51.5% YoY to Rs 1,364.6 crore. In FY22, the profit rises 24.3% to Rs 865.2 crore.

  • Amber Enterprises India is trading with more than 12 times its weekly average trading volume. ACC, Ambuja Cements, Elgi Equipments, and Dr. Lal Pathlabs are trading at more than four times their weekly average trading volumes.

  • Maruti Suzuki India to invest Rs 11,000 crore to set up a manufacturing site of 800 acres in Haryana. The first plant with a manufacturing capacity of 2.5 lakh vehicles per annum is expected to be commissioned within the year 2025.

  • Bank of Baroda posts a net profit of Rs 2,073 crore in Q4FY22 as opposed to a loss of Rs 740.8 crore in Q4FY21, due to lower provision for tax, at Rs 121.9 crore as compared to Rs 3,724.3 crore a year ago. Revenue falls 5.4% YoY to Rs 22,470.5 crore due to a fall in other income and the net interest margin rises by 36 bps YoY to 3.1%.

  • Alkem Laboratories’ Q4FY22 net profit falls 55% YoY to Rs 107.6 crore despite its revenues increasing by 11.9% to Rs 2,504.4 crore. Net profit falls as cost of raw materials rises 36% YoY to Rs 901.2 crore. Net profit rises 3.8% YoY in FY22 to Rs 1,645.6 crore and revenues increase by 18.7% to 10,796.9 crore.

  • Realty stocks like Godrej Properties, Macrotech Developers, Sobha and Brigade Enterprises, among others are rising in trade. The broader sectoral index Nifty Realty is also trading in green.

  • JK Paper’s Q4FY22 net profit rises 25.2% YoY to Rs 170 crore and revenues increase by 45.6% to Rs 1,361.8 crore. Net profit rises on the back of higher volume and realization despite an increase in input costs. Net profit jumps 2.3 times YoY in FY22 to Rs 542.6 crore and revenue rises 41.5% to Rs 4,244.3 crore.

  • Adani Enterprises' subsidiary i.e., AMG Media Networks is set to buy 49% stake in a leading digital news company Quintillion Business Media for an undisclosed amount. Quintillion Business Media operates the digital news platform BloombergQuint. With this acquisition, Adani Group is set to foray into the Indian media business.

  • Avenue Supermarts’ Q4FY22 net profit rises 3.1% YoY to Rs 426.8 crore and revenue rises 18.2% YoY to Rs 8,819 crore. EBITDA margin rises by 10bps YoY to 8.4% despite the omicron wave of Covid-19 slowing down recovery. In FY22, net profit rises 35.7% YoY to Rs 1,492.5 crore and revenue rises 27.7% YoY to Rs 31,093.8 crore.

  • Nifty 50 sees a long build-up in its May 26 futures series as its open interest rises 0.5% with put to call ratio at 0.8.

  • Tech Mahindra’s Q4FY22 net profit rises 10.1% to Rs 1,505 crore and revenues increase by 6.5% YoY to Rs 12,436 crore. The company’s total contract value rises 44% QoQ to $ 1.01 billion, indicating a healthy deal pipeline. Net profit rises 25.7% YoY in FY22 and revenues increase by 18.4% to Rs 45,758.3 crore.

  • Adani Group to buy Holcim's stake in Ambuja Cements and ACC for $10.5 billion, making it the second-largest cement maker in India with a capacity of about 70 million tonnes per annum. Holcim, through its subsidiaries, holds 63.2% in Ambuja Cements and 54.53% in ACC.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (9.40, 12.57%), Avenue Supermarts Ltd. (3,561.10, 10.23%) and Balkrishna Industries Ltd. (2,050.45, 8.60%).

Downers:

Largecap and midcap losers today include Honeywell Automation India Ltd. (32,377.05, -5.69%), Aditya Birla Capital Ltd. (95.05, -5.00%) and Nippon Life India Asset Management Ltd. (265.05, -3.71%).

Volume Shockers

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

Top high volume gainers on BSE included Elgi Equipments Ltd. (299.00, 16.12%), Crisil Ltd. (3,673.30, 12.36%) and Vinati Organics Ltd. (1,996.35, 11.11%).

Top high volume losers on BSE were Amber Enterprises India Ltd. (2,703.60, -20.00%), Affle (India) Ltd. (966.90, -6.52%) and Aditya Birla Capital Ltd. (95.05, -5.00%).

ACC Ltd. (2,196.20, 3.92%) was trading at 8.2 times of weekly average. Ambuja Cements Ltd. (368.00, 2.48%) and Dr. Lal Pathlabs Ltd. (2,206.35, -3.45%) were trading with volumes 7.5 and 5.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

30 stocks were underachievers and hit their 52-week lows.

Stocks making new 52 weeks lows included - Aurobindo Pharma Ltd. (551.10, -2.04%) and Axis Bank Ltd. (638.95, 0.47%).

26 stocks climbed above their 200 day SMA including Elgi Equipments Ltd. (299.00, 16.12%) and Vinati Organics Ltd. (1,996.35, 11.11%). 9 stocks slipped below their 200 SMA including Amber Enterprises India Ltd. (2,703.60, -20.00%) and DCM Shriram Ltd. (917.20, -7.55%).

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