Trendlyne Analysis

Nifty 50 closed higher with the volatility index, India VIX, below 17%. Indian indices closed higher for a sixth straight session. Reserve Bank of India’s Governor Shaktikanta Das said that the central bank "will continue to engage with the foreign exchange market to ensure the rupee finds its level." Meanwhile, Asian Development Bank or ADB slashed India’s GDP growth forecast to 7.2% from 7.5% for FY23. European markets traded flat to higher as investors assessed the European Central Bank’s larger-than-expected 50 bps interest rate hike.

Most Asian indices closed in the green, tracking the US indices which closed higher on Thursday. The tech-heavy index, NASDAQ 100 rose 1.4% while the Dow Jones closed 0.5% higher. The euro is set for its best week against the US dollar since May after the European Central Bank raised interest rates by 50 basis points to 0%. Brent crude oil futures rose after falling about 2.5% on Thursday due to weakened crude oil demand in the US.

Nifty Midcap 100 closed flat, despite the benchmark index closing in the green. Nifty Bank and Nifty Auto closed higher than Thursday’s levels. Nifty IT, which opened in the green, closed 0.6% lower.

Nifty 50 closed at 16,714.30 (109.1, 0.7%), BSE Sensex closed at 56,072.23 (390.3, 0.7%) while the broader Nifty 500 closed at 14,327.05 (55.3, 0.4%)

Market breadth is holding steady. Of the 1,897 stocks traded today, 937 showed gains, and 899 showed losses.

• Ajanta Pharma, Kansai Nerolac Paints, Supreme Industries, and CESC are trading with higher volumes as compared to Thursday.

• Atul sees a long build-up in its July 28 future series as its open interest rises 9.2% with a put-call ratio of 0.51.

• UltraTech Cement is rising despite its net profit falling 7% YoY to Rs 1,584.1 crore while revenue jumps 28.2% YoY to Rs 15,164 crore. Revenue grows on the back of price hikes and rising sales volumes. Profit falls due to power and fuel costs rising 65.3% YoY to Rs 4,013.1 crore and freight expenses increasing 24.2% YoY to Rs 3,290.6 crore.

• TVS Motor hits an all-time high of Rs 898.7 during trade today. The stock is rising for two consecutive days after the company's management announced that it is lining up fresh investments for Rs 1,000 crore in its electric vehicle business to double its capacity to 25,000 units per month by the end of 2022, and 50,000 units in 2023.

• India plans to import 76 million tonnes of coal in FY23 to meet the shortage of coal as Coal India's production will slow down in August and September due to the monsoons. This move may cause an increase in electricity tariff rates because of expensive coal imports.

  India has firmed up a plan to import around 76 million tonnes (mt) of coal to help plug a fossil fuel shortfall at its power plants in the current financial year.
  
  (By Rituraj Baruah & @UtpalBhaskar)https://t.co/mc8y0wEPNf

  — Mint (@livemint) July 22, 2022

• Crompton Greaves Consumer Electricals’ Q1FY23 net profit rises 32.9% YoY to Rs 125.9 crore. However, net profit falls 22.7% QoQ due to a 17.7% QoQ rise in raw material cost to Rs 1,278 crore and employee expense rising 71.7% to Rs 143.4 crore. Revenue increases 77.3% YoY to Rs 1,862.9 crore with revenue from electric consumer durables rising 52.3% YoY to Rs 1,347.2 crore. Butterfly products also add to revenue growth, contributing Rs 253 crore.

• HDFC AMC is falling after its Chief Investment Officer Prashan Jain resigns from his post after 19 years

  #HDFCAMC confirms newsbreak, Prashant Jain resigns as CIO#HDFCMF #HDFCMutualFund pic.twitter.com/J0rzVvsNTp

  — CNBC-TV18 (@CNBCTV18Live) July 22, 2022

• HDFC Securities maintains its ‘Add’ rating on Wipro and cuts the target price to Rs 475 from Rs 490, indicating an upside of 15.3%. It cut its target price as the company’s Q1FY23 net profit falls 17% QoQ. However, the brokerage remains positive on the company’s prospects due to it booking 18 large deals in Q1FY23 with a total contract value of $1.1 billion. It also sees the company’s stronger growth in headcount and lower attrition rates relative to its peers as a key positive. The brokerage estimates the company’s revenue to grow at a CAGR of 12.9% over FY22-24.

• Asian Development Bank cuts India’s growth forecast to 7.2% for FY23 from 7.5% on higher inflation and monetary tightening.

  The Asian Development Bank has slashed its growth forecast for #India to 7.2% for FY23 from 7.5% estimated earlier citing higher than anticipated inflation. @Armilu #ADB #Inflation #IndianEconomy #Economy https://t.co/6WI0cFI2pT

  — Business Standard (@bsindia) July 21, 2022

• RBL Bank reports a net profit of Rs 201.2 crore in Q1FY23 against a loss of Rs 459.5 crore in Q1FY22 as provisions fall 81.7% YoY to Rs 253 crore. Interest earned rises 3.1% YoY to Rs 2,089.3 crore, however, it falls 1.9% QoQ. The bank's asset quality improves as gross NPAs fall by 91 bps YoY to 4.1% and net NPAs fall by 85 bps YoY to 1.2%.

• Cyient is falling as its Q1FY23 net profit declines 24.7% QoQ to Rs 116.1 crore but revenue rises 5.8% QoQ to Rs 1,250.1 crore. EBIT margin falls 298 bps QoQ to 11.5%. Profit falls as employee benefits expense rises 10.5% QoQ to Rs 638 crore. Attrition rate rises 170 bps QoQ to 27.9%.

• Gujarat State Fertilizer & Chemicals is trading with more than 19 times its weekly average trading volume. MOIL, Sheela Foam, Balaji Amines, and Can Fin Homes are trading at more than six times their weekly average trading volumes.

• IndiaMART InterMESH is falling as the company's Q1FY23 profit falls 46.9% to Rs 46.7 crore despite marginal rise in revenue of 6.9% to Rs 225.6 crore. The profit falls as employee benefit expenses rises 68% to Rs 92.5 crore and and other expense rises 79% to Rs 67.8 crore.

• IT stocks like Mphasis, Tech Mahindra, Infosys among others, are falling in trade. The broader Nifty IT index also trades in the red.

• Mphasis falls despite its net profit rising 2.5% QoQ to Rs 401.8 crore in Q1FY23. Revenue increases by 4.1% QoQ to Rs 3,411.2 crore with logistics and transportation segment growing 6% QoQ to Rs 441 crore. However, revenue from insurance segment fell 3.1% QoQ to Rs 300.2 crore. The company guides for an EBIT margin of 15.25-17% in FY23.

• Reserve Bank of India’s (RBI) Governor is positive on the growth prospects of the Indian economy while remaining watchful on the movement of the rupee. He believes any spillover impact on the Indian economy due to global headwinds will be modest.

  LIVE | Watch @RBI Governor @DasShaktikanta address at BoB conclave#StateOfTheEconomy #USDINR #RupeeVsDollar https://t.co/14orilXhz2

  — ET NOW (@ETNOWlive) July 22, 2022

• Crisil is falling despite its Q1FY23 net profit rising 35.8% YoY to Rs 136.9 crore and revenue rising 26.5% YoY to Rs 668.5 crore. Revenue growth is led by the research services segment rising 32.1% YoY to Rs 469.5 crore. However, the EBITDA margin falls 110 bps YoY to 25.3%.

• Gujarat State Fertilizers & Chemicals is rising as the company's Q1FY23 net profit increases 154% YoY to Rs 345 crore. Revenue from operations rises 63.1% YoY to Rs 3,018.2 crore helped by revenue of fertilizer products rising 82.9% YoY to Rs 2,279.3 crore.

• Persistent Systems is rising as its Q1FY23 net profit rises 5.3% QoQ to Rs 211.6 crore and revenue rises 14.7% YoY to Rs 1,878.1 crore. Revenue grows on the back of the banking, financial services and insurance segment rising by 19.2% QoQ to Rs 634.4 crore and the software segment rising 13.4% QoQ to Rs 871.6 crore. Profit is hit due to employee benefits expenses rising 10.2% QoQ to Rs 1,110.6 crore and the cost of professionals rising 21.7% QoQ to Rs 260.3 crore.

• Dolly Khanna buys a 1.2% stake in Suryoday Small Finance Bank for Rs 10 crore during Q1FY23. She also bought a 0.3% stake in Prakash Pipes, which took here stake in the company to 2.7% at the end of the quarter.

• NLC India is rising as its board approves investment of Rs 14,945 crore to set up a mining and power plant in Neyveli, Tamil Nadu. It plans to invest Rs 3,755.7 crore in setting up a mining plant and Rs 11,189.2 crore for the second expansion of thermal power station.

• JSW Energy’s Q1FY23 net profit rises 2.6X YoY to Rs 554 crore as revenue increases 75.2% YoY to Rs 3,026.3 crore. Sale of power in the short term market at 874 million units (up nearly 6X YoY) and an increase in capacity at Vijayanagar plant led to higher revenues in Q1FY22. Still, EBITDA margin is down 9 percentage points to 36% in Q1FY23 as fuel expenses rise 92% YoY to Rs 1,559.3 crore.

Riding High:

Largecap and midcap gainers today include Atul Ltd. (8,659.65, 5.51%), UltraTech Cement Ltd. (6,458.70, 5.35%) and Grasim Industries Ltd. (1,521.35, 3.87%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (572.65, -4.38%), ABB India Ltd. (2,696.40, -2.75%) and Deepak Nitrite Ltd. (1,815.90, -2.69%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Gujarat State Fertilizer & Chemicals Ltd. (163.75, 14.71%), MOIL Ltd. (161.00, 8.42%) and Cera Sanitaryware Ltd. (4,563.20, 6.22%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (4,074.45, -4.27%), SRF Ltd. (2,290.55, -2.26%) and Crompton Greaves Consumer Electricals Ltd. (377.05, -1.69%).

Atul Ltd. (8,659.65, 5.51%) was trading at 19.2 times of weekly average. Sheela Foam Ltd. (2,845.70, 5.55%) and Balaji Amines Ltd. (3,319.60, 6.13%) were trading with volumes 16.4 and 9.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,054.50, -0.06%), Bharat Electronics Ltd. (266.80, -0.71%) and Blue Dart Express Ltd. (8,372.05, 0.59%).

23 stocks climbed above their 200 day SMA including Balaji Amines Ltd. (3,319.60, 6.13%) and Aegis Logistics Ltd. (258.50, 5.66%). 14 stocks slipped below their 200 SMA including Syngene International Ltd. (572.65, -4.38%) and KPR Mill Ltd. (573.60, -4.18%).