Trendlyne Analysis

Nifty 50 closed in the red with the volatility index, India VIX, rising above 17.5%. Indian market fell after rising for six consecutive sessions as Reliance Industries and Infosys' weak earnings weighed on the benchmark indices. European stocks traded lower than Friday’s levels. Major Asian indices closed in the red, tracking the US indices, which closed lower on Friday. The tech-heavy index, NASDAQ 100 closed 1.8% lower, led by social media company, Snap, which fell over 39% post its earnings release on Friday. Investors look ahead to the US Federal Reserve meeting and US Q2 gross domestic product or GDP data release later this week. Brent crude oil futures recovered from its day’s low and traded higher than Friday’s levels.

Nifty Smallcap 100 closed in the red, following the benchmark index. Nifty FMCG and Nifty Media closed lower than Friday’s levels. Nifty IT closed higher, despite the NASDAQ 100 closing in the red on Friday.

Nifty 50 closed at 16,631.00 (-88.5, -0.5%), BSE Sensex closed at 55,766.22 (-306.0, -0.6%) while the broader Nifty 500 closed at 14,279.50 (-57.1, -0.4%).

Market breadth is in the red. Of the 1,922 stocks traded today, 735 were in the positive territory and 1,137 were negative.

• Macrotech Developers, Procter & Gamble Hygiene & Healthcare, Gujarat Pipavav Port, and Bayer Cropscience are trading with higher volumes as compared to Friday.

• Navin Fluorine International sees a long build-up in its July 28 future series as its open interest rises 35.1% with a put-call ratio of 0.85.

• Stocks like Yes Bank, CG Power and Industrial Solutions, City Union Bank, and Aegis Logistics are in the overbought zone, according to the technical indicator relative strength index or RSI.

• Sharda Cropchem is falling as its Q1FY23 net profit declines 40.5% YoY to Rs 22.6 crore as the raw material costs more than doubled to Rs 300.1 crore. EBITDA margin declines by 330 bps to 11.7%. While revenue grows 32.4% YoY to Rs 824.5 crore given better price realisation and product mix. Revenue from the agrochemicals segment rises 15.1% YoY to Rs 534.3 crore and the non-agrochemicals segment surges nearly 2.4X YoY to Rs 209.7 crore.

• Internet software and service companies Zomato and PB Fintech touch an all-time low of Rs 46 and Rs 499.5, respectively.

• Canara Bank’s Q1FY23 net profit rises 71.7% YoY to Rs 2,022 crore with net interest income increasing 10% to Rs 6,785 crore. Provisions fall 6.5% YoY to Rs 4,584 crore. The bank’s asset quality improves significantly with gross NPAs falling 152 bps YoY to 6.98% and net NPAs are down 98 bps to 2.48%.

• Auto stocks like Mahindra & Mahindra, Maruti Suzuki India, Eicher Motors, Bosch, and Tata Motors are falling in trade. The broader sectoral index Nifty Auto is also trading in the red.

• Jyothy Labs is rising as its Q1FY23 net profit increases 18.2% YoY to Rs 48.4 crore and revenue grows 13.7% YoY to Rs 597.2 crore. The fabric care segment's revenues rise 38.6% to Rs 251 crore while the dishwashing segment's rose 9.6% YoY to Rs 209 crore. EBITDA margins are down 200 bps YoY to 10% as the cost of materials rose nearly 30% YoY to Rs 343.6 crore

• Larsen & Toubro to sell eight operational road assets and a power transmission project to Edelweiss Infrastructure Yield Plus, a fund managed by Edelweiss Alternative Asset Advisors, for Rs 7,000 crore, according to reports. The deal awaits approval from National Highway Authority of India and Securities and Exchange Board of India.

  #ETReports | L&T to sell 8 roads, transmission project to Edelweiss fund for Rs 7000 crore, as per sources. @arijitbarman76 has more details #Divestment #StocksToWatch #StockMarket pic.twitter.com/SpuScyQhWH

  — ET NOW (@ETNOWlive) July 25, 2022

• Specialty chemical stocks like SRF, Gujarat Flurochemicals, Aarti Industries, Vinati Organics, Alkyl Amines Chemicals, Balaji Amines, among others, rise a falling rupee benefits these export-oriented companies.

• Navin Fluorine International is trading with more than nine times its weekly average trading volume. Mahindra CIE Automotive, Zomato, Praj Industries, and Anupam Rasayan India are trading at more than two times their weekly average trading volumes.

• PB Fintech is falling and touches a 52-week low of Rs 499.5 as it reports an IT breach the company faced on July 19. The company is identifying the reasons for the breach and is auditing the discrepancies with the information security team. The company, however, says there was no customer data leakage because of this incident.

• ICICI Securities downgrades its rating on Coforge to ‘Add’ from ‘Buy’ and reduces its target price to Rs 4,018 from Rs 4,160. This indicates an upside of 7.6%. The brokerage downgrades its rating as the company’s Q1FY23 revenue misses its estimates. However, the brokerage remains positive on the company’s prospects given that it has the lowest attrition rate in the industry. It also sees the company’s large deal wins and its ability to leverage cross-sell synergies through acquisitions as key positives. The brokerage estimates the company’s net profit to grow at a CAGR of 21.1% over FY22-24.

• Vodafone Idea appoints Akshaya Moondra as Chief Executive Officer for a period of three years effective from with effect from August 19. The new appointment comes in as Ravinder Takkar ceases to be the Managing Director and Chief Executive Officer as he completes his term of three years on August 18.

• Group of Ministers of GST Council remain indecisive on increasing the GST rate to 28% for online gaming and casinos. The group will hold another meeting before submitting their final report to the Council on August 10.

  #ETNOWExclusive | GoM meeting on new #GST structure for online #gaming and #casinos remains inconclusive
  
  No final decision arrived on the valuation mechanism of the casino bet, sources tell @priyadarshi108 @GST_Council @FinMinIndia @nsitharaman pic.twitter.com/87wEgal7fz

  — ET NOW (@ETNOWlive) July 25, 2022

• Navin Fluorine International is rising as its Q1FY23 net profit rises 33.1% YoY to Rs 74.4 crore and revenue rises 21.7% YoY to Rs 397.5 crore. Revenue rises on the back of the speciality chemicals segment rising 32% YoY to 176 crore and the high-performance products segment rising 33% to Rs 152 crore. EBITDA margin rises 110 bps YoY to Rs 24.9%

• Tata Motors receives an order for suppling, operating and maintaining 1,500 electric buses for 12 years from Delhi Transport Corporation (DTC) as part of a tender by Convergence Energy Services, according to reports.

• Kotak Mahindra is falling despite its net profit surging 26.1% YoY to Rs 2,071.1 crore. Profit rises on the back of the net interest income rising 19.1% YoY to Rs 4,697 crore and provisions reducing 12.3% YoY to Rs 6,532 crore. Net interest margin rises 32 bps YoY to 4.9%. The bank’s asset quality improves as the net non-performing assets fall 66 bps YoY to 0.6%.

• ICICI Bank is rising as its Q1FY23 net profit rises 49.6% YoY to Rs 6,904.9 crore as provisions fall 60% YoY to Rs 1,144 crore. Net interest income increases 21% YoY to Rs 13,210 crore with net interest margin rising 12 bps to 4.01%. Retail banking segment revenue grew 18.7% YoY to Rs 23,388 crore while wholesale banking segment’s revenue rises 14.8% to Rs 10,869 crore. The bank’s asset quality improves as gross NPAs fall 174 bps YoY to 3.4% and net NPAs are down by 46 bps to 0.7% in Q1FY23.

• Infosys is falling as its net profit declines 5.7% QoQ to Rs 5,360 crore while revenue rises 6.8% QoQ to Rs 34,470 crore. Profit falls due to employee benefit expenses rising 10.1% QoQ to Rs 18,337 crore and sub-contractors’ costs surging 8.9% QoQ to Rs 3,909 crore. Operating margin declines by 150 bps QoQ to 20%. Attrition rate rises by 70 bps QoQ to 28.4%. The management raises its FY23 revenue growth guidance to 14-16% from 13-15%.

• Reliance Industries’ Q1FY23 net profit is up 46.3% YoY to Rs 17,955 crore with revenue increasing 53% to Rs 2.4 lakh crore. Oil to chemicals segment contributes most to revenue growth, rising 56.7% YoY to Rs 1.6 lakh crore. Retail segment revenue is up 51.9% YoY to Rs 58,569 crore as consumer spending increases while digital services revenue rises 21.8% to Rs 28,511 crore. Inflationary pressures cause an increase in expenses by 50.9% YoY to Rs 1.9 lakh crore as raw material costs surge 75.5% to Rs 1.3 lakh crore.

Riding High:

Largecap and midcap gainers today include SRF Ltd. (2,383.45, 4.06%), GAIL (India) Ltd. (147.00, 3.81%) and Balkrishna Industries Ltd. (2,349.10, 3.42%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (47.60, -11.28%), Oil India Ltd. (186.50, -4.63%) and Bandhan Bank Ltd. (273.80, -4.27%).

Movers and Shakers

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

Top high volume gainers on BSE included Navin Fluorine International Ltd. (4,208.20, 11.10%), Praj Industries Ltd. (398.95, 4.06%) and Mahindra CIE Automotive Ltd. (258.30, 3.82%).

Top high volume losers on BSE were Zomato Ltd. (47.60, -11.28%), Finolex Industries Ltd. (131.90, -5.82%) and Poly Medicure Ltd. (736.55, -5.55%).

Akzo Nobel India Ltd. (1,943.95, 1.00%) was trading at 6.4 times of weekly average. Lakshmi Machine Works Ltd. (10,233.55, 2.09%) and Suven Pharmaceuticals Ltd. (475.75, 2.05%) were trading with volumes 6.1 and 5.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks hit their 52-week highs, while 2 stocks hit their 52-week lows.

Stocks touching their year highs included - Bharat Electronics Ltd. (270.05, 1.22%), Blue Dart Express Ltd. (8,374.45, 0.03%) and EID Parry (India) Ltd. (563.55, 1.15%).

Stocks making new 52 weeks lows included - Zomato Ltd. (47.60, -11.28%) and PB Fintech Ltd. (499.70, -3.92%).

15 stocks climbed above their 200 day SMA including Navin Fluorine International Ltd. (4,208.20, 11.10%) and SRF Ltd. (2,383.45, 4.06%). 16 stocks slipped below their 200 SMA including EPL Ltd. (180.05, -2.75%) and Nesco Ltd. (569.85, -2.56%).