Trendlyne Analysis

Indian indices closed in the red with the volatility index, India VIX rising by 9.5%. Asian indices closed in the red as investors continue to monitor high inflation levels, supply chain disruptions arising out of China due to stringent lockdowns, and imminent interest rate hikes by Central banks. US indices closed higher led by Dow Jones, which rose close to 2% on Monday. However, NASDAQ futures gave up all its gains and trades in the red as Snapchat plunged over 30% after trading hours as its CEO says the company will miss its earnings estimates. Crude oil prices rise marginally as weaker demand due to slow economic growth concerns offset the planned European ban on Russian oil. European indices follow the Asian markets and trade lower than Monday's levels.

Nifty Next 50 and Nifty Smallcap 100 closed in the red following the benchmark index. Nifty Metal, which lost over 8% on Monday, extended its losses and closed 1.2% lower. Nifty IT closed lower, following the NASDAQ futures, which is trading in the red.

Nifty 50 closed at 16,125.15 (-89.6, -0.6%), BSE Sensex closed at 54,052.61 (-236, -0.4%) while the broader Nifty 500 closed at 13,747.25 (-88.6, -0.6%)

Market breadth is highly negative. Of the 1,880 stocks traded today, 458 were gainers and 1,387 were losers.

• Orient Electric, Jyothy Labs, Westlife Development, and Cholamandalam Financial Holdings are trading with higher volumes as compared to Monday.

• Reliance Industries sees a long build-up in its May 26 futures series as its open interest rises 10.3% with put to call ratio at 0.44.

• Sugar stocks like Shree Renuka Sugars, Balrampur Chini Mills, Dalmia Bharat, and EID Parry (India), among others, fall as reports suggest the Centre is mulling export restrictions on sugar. According to reports, the Centre plans to cap sugar exports at 10 million tonnes to ensure adequate stock before the next sugar season starts in October.

• Bank of India is rising as Q4FY22 profit rises 142.3% YoY to Rs 606 crore and net interest income rises 35.8% YoY to Rs 3,986. Bank's NIM (global) and NIM (domestic) improves 57 bps YoY and 74 bps YoY to 2.6% and 2.9%, respectively. Asset quality improves with gross NPA declining 19.3% YoY to Rs 45,605 crore and net NPA declining 19.7% to Rs 9,852 crore.

• Rupa & Company is falling as its Chief Executive Officer Dinesh Kumar Lodha and Chief Financial Officer Ramesh Agarwal resign, effective May 31, 2022. Also, the company’s Q4FY22 net profit is down 25.2% YoY to Rs 49.3 crore due to rising raw material costs. Revenue rises marginally by 0.3% YoY to Rs 455.5 crore and EBITDA margin falls 370 bps YoY to 16.3%.

• NBCC (India) receives order worth Rs 313.8 crore to execute various infrastructure developments works under Puducherry Smart City Development as project management consultant.

• Aether Industries’ Rs 808-crore IPO gets bids for 33% of the available 93.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 42% of the available 45.4 lakh shares on offer. The public offer comprises of a fresh issue up to Rs 627 crore as well as an offer for sale of up to Rs 181 crore.

• eMudhra’s Rs 412.8-crore IPO gets bids for 2.7X of the available 1.1 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 2.6X of the available 57.6 lakh shares on offer.

• Stocks like Sun Pharma, Mahindra & Mahindra, Muthoot Finance, and Page Industries, among others, are rising over the past week, ahead of their financial results.

• Shilpa Medicare is trading with more than 41 times its weekly average trading volume. Hikal, GMR Infrastructure, Jyothi Labs, and Divi's Laboratories are trading at more than five times their weekly average trading volumes.

• HDFC Securities maintains an ‘Add’ rating on V-Guard Industries with a target price of Rs 275, indicating an upside of 22.2%. The brokerage is positive about the company as its revenue from the electrical segment rose 32.5% YoY to Rs 507.3 crore in Q4FY22. The brokerage expects the company’s revenue to grow at a CAGR of 13.1% over FY22-24.

• Graphite India falls despite its Q4FY22 net profit rising 48.4% YoY to Rs 95 crore and revenue rising 47.3 % YoY to Rs 915 crore on the back of higher realisations. The maximum revenue growth came from the graphite and carbon segment, rising 49.9% YoY to Rs 790 crore. EBITDA margin falls by 5 percentage points YoY to 19% due to higher input costs.

• All IT stocks trade in the red. Stocks like Larsen & Toubro Infotech, MindTree, and L&T Technology Services, are down by more than 2%. The broader sectoral index Nifty IT is also falling in trade

• Axis Securities maintains a ‘Buy’ rating on Ashok Leyland with a target price of Rs 160, indicating an upside of 23%. The brokerage believes the company is well-positioned to benefit from a strong recovery in demand for commercial vehicles, given its new product launches and diversified product portfolio. The brokerage expects the company’s EBITDA to grow 71.6% YoY in FY24 over FY23.

• Alembic Pharmaceuticals is rising as it receives United States Food & Drug Administration (USFDA) approval for its Pirfenidone tablets in the strengths of 267 mg and 801 mg. This drug, which is used to treat lung diseases, is therapeutically equivalent to Esbriet tablets of Genentech. Pirfenidone tablet has a market size of $ 548 million.

• Zomato is rising despite its Q4FY22 loss widening by 2.7X YoY to Rs 359.7 crore due to employee costs and delivery charges rising by 2.1X to 2.6X, respectively. However, revenue rises 75% YoY to Rs 1,211.8 crore on the back of the company expanding into newer markets.

• Natco Pharma is falling as FMC Corp files a suit against the company for infringement of a patent in the Delhi High Court. This patent, which expires on December 6, 2025, covers a process to prepare Chlorantraniliprole or CTPR.

• Venus Pipes’ shares list at 3.5% premium to the issue price of Rs 326 on its debut on the bourses. The Rs 165.4-crore IPO was subscribed for 16.3X of the total shares on offer.

• Delhivery shares list at a 2% premium to the issue price of Rs 487 on its debut on the bourses. The Rs 5,235-crore IPO was subscribed for 1.6X of the total shares on offer.

• Ramco Cements is falling as its Q4FY22 net profit falls 45.2% YoY to Rs 118.6 crore despite a revenue increase of 4.9% YoY to Rs 1,722.7 crore. Net profit declines as fuel and power expenses rise 88.4% YoY to Rs 466.8 crore. Operating profit margin falls 10.3 percentage points YoY to 17.2% in Q4FY22.

• Specialty Chemicals company Aether Industries raises Rs 240.3 crore from investors by selling 37.4 lakh equity shares at Rs 642 per share to anchor investors. Investors include Goldman Sachs, Nomura, SBI Mutual Fund, Aditya Birla Sun Life, Kotak MF, Axis MF, IDFC MF, and Tata MF.

• Steel Authority of India’s Q4FY22 net profit falls 29% YoY to Rs 2,478.8 crore as the cost of materials shoots up 123% YoY to Rs 14,564.3 crore. Revenue rises 32% YoY to Rs 30,758 crore with maximum revenue coming in from Bhilai and Bokaro Steel Plant. Bhilai Steel Plant's revenue grows 29% YoY to Rs 8,521.6 crore while Bokaro Steel Plant’s revenue is up 26% YoY to Rs 8,243 crore. The board recommends a final dividend of Rs 2.25 per equity share for FY22.

Riding High:

Largecap and midcap gainers today include Coromandel International Ltd. (973.05, 4.46%), Ashok Leyland Ltd. (141.20, 3.98%) and Varun Beverages Ltd. (1,109.05, 2.78%).

Downers:

Largecap and midcap losers today include Divi's Laboratories Ltd. (3,661.70, -6.06%), JSW Energy Ltd. (294.10, -5.25%) and Ruchi Soya Industries Ltd. (1,099.05, -5.00%).

Volume Rockets

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

Top high volume gainers on BSE included Zomato Ltd. (64.95, 13.85%), Shilpa Medicare Ltd. (452.95, 10.49%) and Hikal Ltd. (392.00, 6.93%).

Top high volume losers on BSE were Divi's Laboratories Ltd. (3,661.70, -6.06%), Balrampur Chini Mills Ltd. (389.15, -5.75%) and Piramal Enterprises Ltd. (1,808.55, -4.10%).

Ipca Laboratories Ltd. (955.50, -2.31%) was trading at 9.1 times of weekly average. Jyothy Labs Ltd. (150.70, -0.89%) and SIS Ltd. (475.05, -0.64%) were trading with volumes 8.5 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks overperformed with 52-week highs, while 29 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (311.50, -4.99%), Coromandel International Ltd. (973.05, 4.46%) and KSB Ltd. (1,474.15, 0.38%).

Stocks making new 52 weeks lows included - Amara Raja Batteries Ltd. (489.80, -1.69%) and Berger Paints (India) Ltd. (610.15, -2.55%).

13 stocks climbed above their 200 day SMA including APL Apollo Tubes Ltd. (907.50, 2.68%) and Asahi India Glass Ltd. (456.70, 2.59%). 18 stocks slipped below their 200 SMA including Balrampur Chini Mills Ltd. (389.15, -5.75%) and IIFL Wealth Management Ltd. (1,502.50, -5.18%).