Trendlyne Marketwatch    
01 Jul 2022
Market closes lower, Maruti Suzuki's total wholesales in June rises 5.8% YoY

Trendlyne Analysis

Indian indices recovered sharply from the day’s low and closed marginally lower on a volatile day of trade. Nifty 50 bounced back from its 250 points fall and closed above the 15,750 level. European stocks, which opened in the red, traded higher than Thursday’s levels. Most Asian indices closed in the red as investors continue to assess the global economic growth concerns due to high inflation levels. US stocks closed in the red on a volatile day of trade on Thursday. The tech-heavy NASDAQ 100 fell 1.3% while the S&P 500 closed 0.9% lower. The S&P 500 posted its biggest first-half slide this year since 1970. Crude oil fell over 3% on Thursday after OPEC+ confirmed it would only increase the output in August as announced previously despite tight global supplies.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green despite the benchmark index closing lower. Nifty Infra and Nifty Energy closed lower than Thursday’s levels. Nifty FMCG and Nifty Realty, which opened in the red, closed higher. Nifty IT closed in the green despite the NASDAQ 100 closing lower on Thursday.

Nifty 50 closed at 15,752.05 (-28.2, -0.2%), BSE Sensex closed at 52,907.93 (-111.0, -0.2%) while the broader Nifty 500 closed at 13,394.45 (6.9, 0.1%)

Market breadth is horizontal. Of the 1,873 stocks traded today, 914 were on the uptrend, and 901 went down.

  • Dhani Services, Hatsun Agro Products, TCNS Clothing Co., and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Thursday.

  • Escorts Kubota India is rising despite its total wholesales in June falling 19.8% YoY to 10,051 units. Domestic tractor wholesales fall by 22.5% YoY to 9,265 units while exports rise 36.2% YoY to 786 units.

  • ICICI Securities initiates coverage on Delhivery with a ‘Hold rating and a target price of Rs 484. The brokerage believes the company is well placed to benefit from the growing e-commerce market in India, as it has a 90% market share in the third-party logistics distribution market. It expects the company’s revenue to grow at a 37.3% CAGR over FY22-25.

  • India’s manufacturing PMI falls to 53.9 in June compared to 54.6 in May, due to the rise in input costs and inflation concerns.

  • Maruti Suzuki India is falling despite a 5.8% YoY rise in total wholesales to 1.55 lakh units with total passenger vehicle wholesales up 7.8% YoY to 93,695 units. Mini and compact car segment’s wholesales rise 6.8% to 92,188 units and mid-size car wholesales rise 150.3% YoY to 1,507 units. Total exports rise 40% YoY to 23,833 units.

  • Ashok Leyland is falling in trade despite its total wholesales in June rising 2.2X YoY to 14,531 units. The growth is driven by total domestic wholesales rising 2.3X YoY to 13,469 units. The M&HCV (medium & heavy commercial vehicles) Truck segment’s wholesales rise by 3.4X YoY to 8,211 units and LCV (light commercial vehicle) wholesales rise 41% YoY to 5,177 units.

  • FMCG stocks like Hindustan Unilever, ITC, Nestle India, Dabur India, Britannia Industries, among others, are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

  • Sanofi India and Deepak Nitrite hit their 52-week lows of Rs 6,333 and Rs 1,681.2, respectively. While Sanofi India falls for two sessions, Deepak Nitrite trades lower for three sessions.

  • IIFL Wealth Management is trading with more than five times its weekly average trading volume. Mahindra Holidays & Resorts India, REC, Reliance Industries, and Metro Brands are trading at more than two times their weekly average trading volumes.

  • Eicher Motors' joint venture VE Commercial Vehicles’ June 2022 total wholesales rise 158.7% YoY to 6,307 units. Domestic wholesales rise 217.3% YoY to 5,584 units but exports fall 1.5% YoY to 601 units.

  • Hindustan Unilever (HUL) approves the appointment of CEO Sanjiv Mehta on the board of PT Unilever Indonesia TBK as President Commissioner. He will continue to hold the position of CEO & MD of HUL and President of Unilever South Asia.

  • Bajaj Auto is falling as its total wholesales for the month of June marginally rise by 0.2% YoY to 3,47,004 units. Total two-wheeler wholesales grew 2% YoY to 3,15,948 units, as domestic wholesales fall 20% YoY to 1,25,083 units. Exports rise 23% YoY to 1,90,865 units.

  • Freight charges for containers fall as inflationary pressures ease. The composite rate has fallen in January 2022 compared to July 2021.

  • Federal Bank rises as its board approves raising up to Rs 4,000 crore through issuance of equity shares. The shareholders will take up this proposal at the annual general meeting to be held on July 27,2022.

  • Oil and Gas stocks like Reliance Industries, Oil and Natural Gas Corp, Indian Oil Corp, among others, are falling in trade after the Centre raises taxes on the export of petrol and diesel. The broader sectoral index BSE Oil & Gas is also trading in the red.

  • Indian rupee depreciates 5 paise to 79.11 to a new all-time low, against the American Dollar in early trade today, amid foreign capital outflows.

  • Jewellery company stocks like Titan Co, Asian Star Co, and Kalyan Jewellers, among others, are falling in trade, as the Centre raises its basic import duty on gold to 12.5% from the existing 7.5%. This is likely to raise the cost of gold, and could impact revenues of these companies.

  • Reco Zinnia (RZPL), a subsidiary of GIC (Realty) invests the second tranche of Rs 400 crore in Phoenix Mills’ subsidiaries (Offbeat Developers, Graceworks Realty, and Leisure). The first investment was completed on June 30, 2021, when RZPL invested Rs 111.1 crore. With the recent investment, RZPL will hold a 32.9% stake in each of Phoenix Mills subsidiaries.

  • Lupin is rising as the US FDA approves the company's abbreviated new drug application, or ANDA, for paliperidone extended-release tablets on Thursday. It also got approvals to market a generic equivalent of Invega extended-release tablets of Jansen Research and Development. The product will be manufactured in Lupin's Goa facility and has an estimated annual sales of $ 152 million in the US.

  • Jubilant HollisterStier, a wholly-owned subsidiary of Jubilant Pharmova, announces a 100 million canadian dollars (Rs 612.8 crore) expansion of its CMO (contract manufacturing organisation) manufacturing facility in Montreal, Canada. The Government of Quebec will be funding CAD 25 million (Rs 153.2 crore) through a loan, which includes a forgivable portion of CAD 6.3 million (Rs 38.6 crore). The company aims to modernize and augment its drug production capacity by over 100% through this investment.

  • Bharti Airtel opts to defer its adjusted gross revenue or AGR dues for FY19 for up to four years, while retaining the right to repay installment amounts. According to reports, total dues add up to Rs 3,000 crore. It opted for this offer under the Department of Telecommunication's scheme, instead of opting for conversion of the dues into equity like Vodafone Idea. Also, the Competition of Commission of India approved Google's $700 million investment in the company for 1.28% stake in the company.

Riding High:

Largecap and midcap gainers today include Muthoot Finance Ltd. (1,042.65, 6.80%), Jubilant Foodworks Ltd. (541.45, 5.70%) and Hindustan Petroleum Corporation Ltd. (228.45, 5.18%).

Downers:

Largecap and midcap losers today include Oil India Ltd. (213.85, -14.97%), Oil And Natural Gas Corporation Ltd. (131.05, -13.53%) and Reliance Industries Ltd. (2,408.70, -7.20%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Responsive Industries Ltd. (139.60, 18.25%), Mahindra Holidays & Resorts India Ltd. (227.30, 6.02%) and IIFL Wealth Management Ltd. (1,545.20, 4.33%).

Top high volume losers on BSE were Reliance Industries Ltd. (2,408.70, -7.20%) and Symphony Ltd. (863.65, -1.49%).

REC Ltd. (125.70, 1.58%) was trading at 5.0 times of weekly average. HLE Glasscoat Ltd. (3,389.85, 2.87%) and Metro Brands Ltd. (621.10, 3.73%) were trading with volumes 4.5 and 3.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks took off, crossing 52-week highs, while 19 stocks tanked below their 52-week lows.

Stocks touching their year highs included - ITC Ltd. (284.35, 3.97%), TVS Motor Company Ltd. (860.45, 2.20%) and Jamna Auto Industries Ltd. (124.90, 2.25%).

Stocks making new 52 weeks lows included - Bajaj Finserv Ltd. (11,322.55, 3.57%) and Biocon Ltd. (311.55, 1.02%).

15 stocks climbed above their 200 day SMA including Mahindra Holidays & Resorts India Ltd. (227.30, 6.02%) and Federal Bank Ltd. (93.65, 3.82%). 10 stocks slipped below their 200 SMA including Oil India Ltd. (213.85, -14.97%) and Reliance Industries Ltd. (2,408.70, -7.20%).

 

 

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