Trendlyne Marketwatch    
20 May 2022
Market closes higher, Ethos’ IPO gets bids for 104% of the total shares on offer

Trendlyne Analysis

Nifty 50 recovered all of its losses from Thursday and closed 2.9% higher with the Indian volatility index, India VIX falling by 5.9. Asian shares closed higher as China cut a key lending benchmark – five-year loan prime rate by a steeper than expected 15 basis points to 4.45% in order to support a slowing economy. Covid-19 lockdowns in China continue to impact economic growth by disrupting the global supply chain. Investors remain cautious of macroeconomic factors like high inflation rates, and the effects of impending rate hikes by the central banks. Sell-off continued in the US markets on Thursday as the indices closed in the red for the second consecutive session. European indices open higher than Thursday’s level, tracking the Asian markets amid positive cues from China. Crude oil prices remained steady this week as weaker demand due to slow economic growth concerns offset the planned European ban on Russian oil. In the last week, foreign investors have sold over Rs 6,078.1 crore worth shares of Indian companies.

Nifty Next 50 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media trade higher than Thursday’s levels. Nifty IT, which fell over 5% on Thursday closed in the green.

Nifty 50 closed at 16,266.15 (456.8, 2.9%), BSE Sensex closed at 54,326.39 (1,534.2, 2.9%) while the broader Nifty 500 closed at 13,895.05 (344.2, 2.5%)

Market breadth is surging up. Of the 1,878 stocks traded today, 1,536 were on the uptrend, and 310 went down.

  • Go Fashion (India), Carborundum Universal, J B Chemicals & Pharmaceuticals, and Kajaria Ceramics are trading with higher volumes as compared to Thursday.

  • Godrej Consumer Products sees a short build-up in its May 26 futures series after it announces Q4FY22 results. Its open interest rises 12.4% with put to call ratio at 0.44

  • Ethos’ Rs 472-crore IPO gets bids for 104% of the available 39.8 lakh shares on offer on the final day of bidding. The retail investor quota gets bids for 84% of the available 19.6 lakh shares on offer

  • Zydus Lifesciences' Q4FY22 profit rises 12.1% YoY to Rs 525 crore and revenue rises 5.3% YoY to Rs 3,863.8 crore. For FY22, the profit rises 11.7% to Rs 2,298.8 crore.

  • Auto stocks like Ashok Leyland, Tata Motors, Bosch, and Sona BLW Precision Forgings among others are rising in trade. The broader sectoral index Nifty Auto is also trading in green.

  • eMudhra’s Rs 412.8-crore IPO gets bids for 48% of the available 1.1 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 94% of the available 57.6 lakh shares on offer. The public offer comprises of a fresh issue of Rs 161 crore as well as an offer for sale of Rs 251.8 crore.

  • Reserve Bank of India’s report on scheduled banks shows that bank credit grew 10.8% YoY to Rs 120.5 lakh crore and deposits by 9.7% to Rs 166.9 lakh crore in the fortnight ended May 6, 2022. In FY22 bank credit rises 8.59% YoY and deposits rise by 8.94%.

  • Krishna Institute of Medical Sciences is trading with more than 12 times its weekly average trading volume. Welspun Corp, JK Lakshmi Cement, TeamLease Services and, Poly Medicure are trading at more than three times their weekly average trading volumes.

  • Edelweiss maintains a ‘Buy’ rating on DLF with a target price of Rs 481, indicating an upside of 46%. The brokerage is positive about the company’s prospects on the back of robust pre-sales growth, sales margin growth, new launches, and increase in occupancy levels. The brokerage expects revenue to grow at a 60% CAGR over FY22-24.

  • Axis Securities maintains a ‘Buy’ rating on Bharti Airtel with a target price of Rs 900, indicating an upside of 29%. The brokerage is positive about the company on the back of strong mobile subscriber growth in Q4FY22 and high active subscriber ratio. The brokerage expects the telecom company’s revenue to grow at a 6.5% CAGR over FY22-FY24.

  • Godrej Consumer Products is falling as its Q4FY22 net profit falls marginally by 0.7% YoY to Rs 363.2 crore due to cost of materials consumed rising 19.5% YoY to Rs 1,428.9 crore. However, the revenue rises 7% YoY to Rs 2,939.6 crore on the back of revenue growth came from the personal care segment at 18% YoY. In FY22, net profit rises 15% YoY to Rs 1,720.8 crore and revenue rises 10.7% YoY to Rs 11,095.7 crore.

  • YES Bank rises as it picks JC Flowers Asset Reconstruction Company as its joint venture partner to offload nearly Rs 51,000 crore of distressed loans. This could lead to the re-rating of this stock and attract new equity investments.

  • Bank stocks like IDFC First Bank, Bank of Baroda, State Bank of India, and IndusInd Bank among others are rising in trade. The broader sectoral index Nifty Bank is also trading in green.

  • Prince Pipes & Fittings' Q4FY22 profit falls 9.2% YoY to Rs 88.2 crore despite a 17.7% rise in revenue to Rs 901.3 crore due to an increase in the cost of raw materials. In FY22, the company's profit rises 12.4% YoY to Rs 249.4 crore.

  • Ashok Leyland is rising despite its Q4FY22 net profit falling 60.2% YoY to Rs 140.2 crore due to an impairment in the value of net assets of subsidiaries and loss on fair valuation of investment. However, net profit on a standalone basis rises 3.7X times to Rs 901.4 crore. Revenue rises 21.7% YoY to Rs 9,958 crore on the back robust demand for commercial vehicles from end user industries.

  • Nifty 50 sees a short covering in its May 26 futures series as its open interest falls 7.2% with put to call ratio at 0.89.

  • Glenmark Pharma is rising as it receives United States Food & Drug Administration (U.S. FDA) approval for its Abiraterone Acetate tablets in the strength of 500 mg. This drug, which is used to treat prostate cancer, is a generic version of Zytiga 1 tablets of Janssen Biotech. Abiraterone Acetate has a market size of $ 260.2 million.

  • Prudent Corporate Advisory Services' shares list at a 3.2% premium to the issue price of Rs 630 on its debut on the bourses after getting bids for 1.2X of the total shares on offer.

  • Biocon is rising as the Competition Commission of India (CCI) approves the merger by absorption of Covidshield Technologies into Biocon, according to reports. This is in consideration for approximately 15 per cent equity shareholding of Biocon Biologics by Serum Institute Life Sciences.

  • One97 Communications (Paytm) rises more than 2% to Rs 568 ahead of its Q4FY22 earnings scheduled for today

  • Gland Pharma is falling despite its Q4FY22 net profit rising by 7.8% YoY to Rs 285.9 crore. Total revenue rises 25% YoY to Rs 1,168.2 crore. However, EBITDA margin falls 5.0 percentage points to 35% on the back of high raw material costs and employee benefit expenses. Net profit rises 21.5% YoY in FY22 to Rs 1,211.6 crore and revenues increase by 28.5% to Rs 4,624.6 crore.

  • Hindustan Petroleum Corporation’s Q4FY22 net profit falls 34% YoY to Rs 2,018.4 crore on account of higher costs. Cost of materials surges 71.7% to Rs 26,312.2 crore. However, the sale of products for the company rises 23.5% YoY to Rs 1.1 lakh crore with revenue from downstream petroleum increasing 23.5% YoY to Rs 1.05 lakh crore. Domestic sales for the company is up 4% YoY to 10.26 million tonnes. The company recommends a dividend of Rs 14 per share for FY22.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (293.35, 9.87%), Macrotech Developers Ltd. (988.90, 9.68%) and Sun TV Network Ltd. (438.35, 8.40%).

Downers:

Largecap and midcap losers today include Container Corporation of India Ltd. (573.40, -5.49%), Godrej Consumer Products Ltd. (758.40, -4.68%) and Adani Green Energy Ltd. (2,273.65, -1.89%).

Movers and Shakers

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

Top high volume gainers on BSE included Welspun Corp Ltd. (244.90, 17.23%), JK Lakshmi Cement Ltd. (493.75, 17.13%) and Welspun India Ltd. (73.45, 13.61%).

Top high volume losers on BSE were Container Corporation of India Ltd. (573.40, -5.49%), Advanced Enzyme Technologies Ltd. (277.85, -2.65%) and Supreme Industries Ltd. (1,802.50, -1.34%).

Krishna Institute of Medical Sciences Ltd. (1,261.70, 0.52%) was trading at 14.0 times of weekly average. KIOCL Ltd. (217.75, 7.74%) and Indigo Paints Ltd. (1,620.05, 3.51%) were trading with volumes 11.2 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks hit their 52-week highs, while 5 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (312.25, 4.99%), ITC Ltd. (280.00, 1.58%) and Welspun Corp Ltd. (244.90, 17.23%).

Stocks making new 52 weeks lows included - Container Corporation of India Ltd. (573.40, -5.49%) and Firstsource Solutions Ltd. (108.85, 0.51%).

21 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (225.75, 12.68%) and IRB Infrastructure Developers Ltd. (234.25, 9.92%). 6 stocks slipped below their 200 SMA including Equitas Small Finance Bank Ltd. (52.55, -11.61%) and Caplin Point Laboratories Ltd. (776.65, -2.98%).

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