Trendlyne Marketwatch    
26 May 2022
Market closes higher, Whirlpool touches 52-week low as its Q4 profit falls 35% YoY

Trendlyne Analysis

Nifty 50 snapped its three-day losing streak and closed in the green on a volatile day of trade. The Nifty 50 recovered its losses and closed 0.9% higher. However, most Asian indices closed lower amid mixed global cues. Ratings agency Moody's Investors Service lowered its growth forecast for India by 30 basis points from 9.1 to 8.8 percent for 2022.

US equities rose on Wednesday after a majority of Federal Open Market Committee members judged that further half a point percentage point hikes would ‘likely be appropriate’, in line with analysts’ expectations. Policymakers unanimously feel that the US economy is very strong as they try to curb high inflation levels. Crude oil edges higher and trades at elevated levels as European Union’s proposed ban on Russian oil could disrupt its supply. The pan-European STOXX 600 opens marginally higher as investors continue to monitor major central banks’ monetary policies to curb high inflation levels.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal, which lost over 10% in the last three trading sessions, closed sharply higher. Nifty IT closed in the green, following the NASDAQ 100, which closed 1.5% higher on Wednesday.

Nifty 50 closed at 16,170.15 (144.4, 0.9%), BSE Sensex closed at 54,252.53 (503.3, 0.9%) while the broader Nifty 500 closed at 13,722.55 (134.8, 1.0%)

Market breadth is in the green. Of the 1,880 stocks traded today, 1,020 were gainers and 821 were losers.

  • Mangalore Refinery And Petrochemicals, Alok Industries, Prism Johnson, and Grindwell Norton are trading with higher volumes as compared to Wednesday.

  • Stocks like Zydus Lifesciences, Hindustan Aeronautics, MRF, Siemens, and Tata Elxsi, among others, are outperforming their sectors over the past month.

  • Power utility stocks like Adani Transmission, Adani Green Energy, JSW Energy, Tata Power Co, among others fall in trade as the Centre will unveil a plan to help state-run electricity distribution companies (discoms) to pay outstanding dues. The scheme will entail payment of dues in monthly installments over four years. The broader sectoral index BSE Utilities is trading flat.

  • ICICI Direct maintains a ‘Buy’ rating on Birlasoft with a target price of Rs 440, indicating an upside of 18%. The brokerage expects the company’s revenue to grow on the back of multi-year deals, higher client acquisitions, and expansion into European and Asia-Pacific markets. The brokerage expects profit to grow at a 10.9% CAGR over FY22-24.

  • Aether Industries’ Rs 808-crore IPO gets bids for 6.3X of the available 93.5 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 114% of the available 45.4 lakh shares on offer.

  • Moody’s Investor Services lowers India's growth forecast for 2022 by 30 bps to 8.8%. The agency expects rising crude oil, food, and fertilizer prices, to affect household finances and spending in the coming months.

  • Consumer durables company Whirlpool of India touches a 52-week low of Rs 1,365.1 as its Q4FY22 net profit declines 35% YoY to Rs 84.5 crore. The fall in profit is because of weak industry demand and a rise in commodity costs. Its revenue from operations also fell 4.1% YoY to Rs 1,706.9 crore. The board recommends a final dividend of Rs 5 per equity share for FY22.

  • Metal stocks like JSW Steel, Tata Steel, Jindal Steel & Power, Steel Authority of India, NMDC, among others are rising in trade. The broader sectoral index BSE Metal also trades in the green.

  • IT Stocks like MphasiS, Birlasoft, Nazara Technologies, Wipro, and Cyient, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

  • ITI is trading with more than 46 times its weekly average trading volume. Thyrocare Technologies, Torrent Pharmaceuticals, Asahi India Glass, and General Insurance Corporation of India are trading at more than five times their weekly average trading volumes.

  • Colgate-Palmolive (India) Q4FY22 profit rises 2.8% YoY to Rs 323.6 crore and revenue rises 1.4% YoY to Rs 1,293.4 crore. The company delivers marginally improved EBITDA margins of 32.2%, up by 11 bps YoY, on the back of calibrated pricing and focus on cost optimization initiatives and efficiencies.

  • Aurobindo Pharma is rising as its arm Eugia Pharma Specialties receives United States Food & Drug Administration (USFDA) approval for its pemetrexed injections. This drug, which has an estimated market size of $ 1.3 billion, is therapeutically equivalent to Alimta injection of Eli Lilly. Pemetrexed injections are used to treat certain types of cancer.

  • Power Finance Corp is falling despite its Q4FY22 net profit rising 9.7% YoY to Rs 3,205.9 crore and revenue rising 3.9% YoY to Rs 18,873.5 crore. The growth in revenue is driven by a rise in interest income, and fees and commission income. The board recommends a final dividend of Rs 1.25 per share for FY22.

  • Jubilant Foodworks rises after Jefferies upgrades its rating to ‘Buy’ from ‘Hold’. The brokerage expects the economic slowdown to not have a major impact on the earnings. The company will declare its Q4FY22 results on May 30.

  • National Aluminium Company (NALCO) is falling despite its Q4FY22 net profit rising 9.6% YoY to Rs 1,025.5 crore and revenue rising 53.8% YoY to Rs 4,340.8 crore. The maximum revenue growth came from the aluminium segment, rising 68.2% YoY to Rs 3,269.2 crore.

  • Apollo Hospitals Enterprise is falling as its Q4FY22 net profit falls 46.3% YoY to Rs 90 crore despite a 23.6% YoY rise in revenue to Rs 3,546.4 crore. Net profit declines mainly due to a deferred tax charge of Rs 104 crores. Revenue rises on the back of strong growth in its healthcare services and pharmacy distribution segment.

  • InterGlobe Aviation (Indigo) rises despite its net loss widening by 47% YoY to Rs 1,681 crore. The widening of loss is because of a surge in fuel expenses by 68% YoY to Rs 3,220.5 crore. However, revenue increases 28.9% to Rs 8,020.7 crore but EBITDA margin falls 8.3 percentage points to 2.1%. The airline plans to increase capacity by 60% in FY23 as it sees an improvement in demand.

  • Bharat Petroleum Corporation (BPCL) is falling as its Q4FY22 net profit falls 72.7% YoY to Rs 2,802.7 crore as fuel prices did not increase during the quarter despite a rise in the price of crude oil. The cost of materials consumed rises 78.2% YoY to Rs 55,384.7 crore. However, revenue rises 23.5% YoY to Rs 1,23,217.1 crore on higher oil prices.

  • Torrent Pharmaceuticals is rising despite posting losses of Rs 118 crore in Q4FY22 against a profit of Rs 321 crore in the same quarter previous year. The company posted losses mainly on account of impairment charges worth Rs 439 crore as it discontinued liquid manufacturing business in the US. However, revenues rise 10% YoY in Q4FY22 to Rs 2,131 crore on the back of strong growth in the India business.

  • Coal India’s Q4FY22 net profit surges 46.3% YoY to Rs 6,715 crore with net sales increasing 22.6% to Rs 30,046.2 crore. Total revenue from operations rises 22.5% to Rs 32,706.7 crore because of an increase in volumes and better realizations. Its raw coal production for Q4FY22 rises 2.8% YoY to 209 million tonnes with raw coal offtake increasing 9.3% to 180.25 million tonnes. The mining company’s current tax expenses also see a rise of 19% YoY to Rs 2,253.2 crore.

Riding High:

Largecap and midcap gainers today include Torrent Pharmaceuticals Ltd. (2,919.75, 10.81%), InterGlobe Aviation Ltd. (1,816.20, 10.36%) and Adani Total Gas Ltd. (2,438.60, 10.00%).

Downers:

Largecap and midcap losers today include Havells India Ltd. (1,172.75, -4.61%), 3M India Ltd. (17,463.95, -2.58%) and ITC Ltd. (266.70, -2.20%).

Volume Rockets

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

Top high volume gainers on BSE included ITI Ltd. (97.40, 15.95%), Torrent Pharmaceuticals Ltd. (2,919.75, 10.81%) and InterGlobe Aviation Ltd. (1,816.20, 10.36%).

Top high volume losers on BSE were Suzlon Energy Ltd. (7.85, -9.77%), Vardhman Textiles Ltd. (285.80, -3.36%) and 3M India Ltd. (17,463.95, -2.58%).

Thyrocare Technologies Ltd. (690.30, 8.67%) was trading at 16.2 times of weekly average. AIA Engineering Ltd. (2,056.10, 9.63%) and General Insurance Corporation of India (113.75, 3.22%) were trading with volumes 8.4 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

77 stocks hit their 52-week lows.

Stocks making new 52 weeks lows included - 3M India Ltd. (17,463.95, -2.58%) and Akzo Nobel India Ltd. (1,722.00, -0.40%).

16 stocks climbed above their 200 day SMA including Mahindra & Mahindra Financial Services Ltd. (173.35, 6.38%) and Poonawalla Fincorp Ltd. (234.40, 6.38%). 24 stocks slipped below their 200 SMA including Suzlon Energy Ltd. (7.85, -9.77%) and GMM Pfaudler Ltd. (4,330.00, -4.12%).

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