Trendlyne Analysis

Nifty 50 closed in the green with the Indian volatility index, India VIX rising by more than 1.5%. Nifty IT and Nifty Energy indices ended higher while Nifty Auto lagged the other indices. SBI Research projects the Indian economy to grow at 7.5% in FY23, which is an upward revision of 20 bps. This comes after the Centre says the Indian economy grew at 8.7% in FY22. Aether Industries is all set to list on the bourses tomorrow at a premium, as suggested by its grey market premium of Rs 25-30. The pan-European STOXX 600 index rose 0.4% led by healthcare and technology stocks.

Nifty 50 closed at 16,628.00 (105.3, 0.6%), BSE Sensex closed at 55,818.11 (436.9, 0.8%) while the broader Nifty 500 closed at 14,167.95 (85.1, 0.6%)

Market breadth is in the green. Of the 1,877 stocks traded today, 1,101 were on the uptick, and 728 were down.

• Zydus Wellness, Kansai Nerolac Paints, Cera Sanitaryware, and Solar Industries India are trading with higher volumes as compared to Wednesday.

• Berger Paints sees a long build-up in its Jun 30 futures series as its open interest rises 10.7% with put to call ratio at 0.68.

• Fine Organic Industries gains more than 34% in last four trading sessions and hits a 52-week high of Rs 6,139.9 today, after robust Q4FY22 results. Its standalone net profit rises 281% YoY to Rs 110 crore and revenue increases 87% to Rs 601 crore.

• Stocks like RHI Magnesita India, Apollo Hospitals Enterprise, and Brightcom Group fall by more than 5% in trade today.

• The 3-year average ROCE of ICICI Securities is 29.1% and Finolex Industries' is 25.6%. These companies have the highest 3-year average ROCE among the low PE profit-making Nifty 500 firms.

• ICICI Direct maintains a ‘Buy’ rating on Bharat Electronics with a target price of Rs 290, indicating an upside of 24%. The brokerage believes the company’s order inflow growth, sustained margins and robust order book will drive profit growth in the coming quarters. The brokerage expects the company’s profit to grow at a 12.3% CAGR over FY22-24.

• Energy stocks like Reliance Industries, Adani Green Energy, Adani Transmission, Oil and Natural Gas Corp, NTPC, and Bharat Petroleum Corp, among others are rising in trade. The broader sectoral index Nifty Energy is also trading in the green.

• Edelweiss maintains a ‘Buy’ rating on KNR Construction with a target price of Rs 354, indicating an upside of 37%. The brokerage remains positive on the company’s prospects given its debt-free balance sheet, strong order book visibility, and robust bid pipeline. The brokerage expects the company’s net profit to grow at a 17.8% CAGR over FY22-24.

• Stocks like Hikal, Aditya Birla Sun Life AMC, Lupin, Equitas Small Finance Bank, and Jindal Steel & Power, among others, are in the oversold zone according to the technical indicator relative strength index or RSI.

• Blue Dart Express and KEI Industries touch 52-week high of Rs 7,814.6 and Rs 1,377.4 respectively. While Blue Dart Express is rising for six consecutive sessions, KEI Industries is trading higher for three sessions.

• Capri Global Capital is trading with more than three times its weekly average trading volume. Balaji Amines, Fine Organic Industries, Coromandel International, and Gland Pharma are trading at more than two times their weekly average trading volumes.

• Delhivery gains as Credit Suisse initiates coverage on the stock with an ‘outperform’ rating with a target price of Rs 675, indicating an upside of 26%. The brokerage prefers the stock as the company does not incur customer acquisition costs. It also sees steady growth in profit by nearly 5.5% by FY25 and revenue to grow at a 29% CAGR over FY22-25. IIFL Securities differs in its opinion and rates the stock as ‘Sell’ with a target price of Rs 442, indicating a downside of 17%. It believes the company needs to improve its operating efficiency and EBITDA margins.

• Motilal Oswal maintains a ‘Buy’ rating on Restaurant Brands Asia with a target price of Rs 150, indicating an upside of 54%. The brokerage believes the company is well-placed to benefit from the recovery in the dine-in industry. The addition of Burger King Café outlets and cost-saving initiatives will drive EBITDA margin expansion, the brokerage said. Furthermore, the brokerage expects the company’s revenue to grow at a 38.8% CAGR over FY22-24.

• Religare Enterprises is rising as its arm Religare Finvest's lead lender gets an offer of a one--time settlement of its dues to lenders. The subsidiary is ready to consider this offer.

• Eicher Motors’ arm Royal Enfield’s May wholesales rise 133% YoY to 63,643 units. Models with engine capacity up to 350cc drive growth by rising 137% YoY to 53,835 units. Models with engine capacity exceeding 350cc rise 115% YoY to 9,808 units and exports rise 40% YoY to 10,118 units.

• The FMCG sector saw its volumes fall in Q4FY22. This is visible in many FMCG companies' Q4FY22 results, which saw their net profit fall YoY. These include Nestle India, Dabur India, Godrej Consumer Products, etc. Companies like ITC, Hindustan Unilever and Colgate-Palmolive's net profit growth slowed considerably.

  #FMCG sector's volume stood at -4.1% compared to last year due to a decline in consumption across all zones and town classes.
  
  Read on to know more.@sharleendsouza reports#FMCGsector #IndianEconomy #RuralEconomyhttps://t.co/S8MmvXX0dj

  — Business Standard (@bsindia) June 2, 2022

• IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Larsen & Toubro Infotech and MindTree among others are rising in trade. The broader sectoral index Nifty IT is also trading in the green.

• Reliance Industries' arm Reliance Brands and Plastic Legno SPA inks a joint venture arrangement through which Reliance Brands will acquire a 40% stake in the toy manufacturer. This investment will bring in vertical integration for its toy business and help diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.

• Greaves Cotton is rising as Abdul Lateef Jameel International DMCC is set to buy a 35.6% stake worth Rs 1,160 crore in its electric vehicle arm, Greaves Electric Mobility (GEM). The company expects this investment to aid it in developing new products and technologies. GEM also has the option to require the investor to make further investments of Rs 543.2 crore within the next 12 months.

• Indian rupee depreciates 0.11% to Rs 77.61 against the US dollar in early trade today.

• Hero MotoCorp’s total wholesales jump 165.9% YoY to 4.8 lakh units because of improving customer sentiment. Motorcycle wholesales rise 153% YoY to 4.5 lakh units while scooter wholesales increase 694% to 34,458 units. Total exports for the company however fall 13.8% to 20,238 units. The company also postpones the launch of its electric vehicle till the festive season because of supply constraints and a shortage of auto components.

Riding High:

Largecap and midcap gainers today include Adani Total Gas Ltd. (2,445.85, 5.16%), Ruchi Soya Industries Ltd. (1,111.10, 4.20%) and Adani Green Energy Ltd. (1,925.80, 4.19%).

Downers:

Largecap and midcap losers today include Apollo Hospitals Enterprise Ltd. (3,645.25, -5.05%), Info Edge (India) Ltd. (3,923.05, -3.85%) and Adani Power Ltd. (295.35, -3.83%).

Movers and Shakers

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

Top high volume gainers on BSE included Finolex Cables Ltd. (400.55, 10.28%), Century Textiles & Industries Ltd. (875.70, 8.69%) and IFB Industries Ltd. (926.25, 7.54%).

Top high volume loser on BSE was Coromandel International Ltd. (954.15, -0.83%).

Greaves Cotton Ltd. (164.90, 1.95%) was trading at 8.8 times of weekly average. Abbott India Ltd. (18,376.15, 3.38%) and Fine Organic Industries Ltd. (5,482.90, 6.96%) were trading with volumes 5.4 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks took off, crossing 52-week highs, while 5 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Dart Express Ltd. (7,695.15, 0.37%), Coromandel International Ltd. (954.15, -0.83%) and Mahindra & Mahindra Ltd. (1,044.55, -0.27%).

Stocks making new 52 weeks lows included - Ipca Laboratories Ltd. (879.80, -1.06%) and Thyrocare Technologies Ltd. (632.15, -0.98%).

15 stocks climbed above their 200 day SMA including Century Textiles & Industries Ltd. (875.70, 8.69%) and Sundaram Clayton Ltd. (3,876.35, 5.99%). 10 stocks slipped below their 200 SMA including Krishna Institute of Medical Sciences Ltd. (1,256.05, -3.02%) and Mahindra Holidays & Resorts India Ltd. (218.05, -2.79%).