Trendlyne Analysis

Nifty 50 closed in the green, with the volatility index, India VIX, rising significantly. Indian indices closed higher for a fourth straight session. GST collection rises 28% YoY in July to Rs 1.49 lakh crore. Centre GST revenue stands at Rs 25,751 crore, State GST is at Rs 32,807 crore and Integrated GST is at Rs 79,518 crore. India's manufacturing purchasing managers' Index (PMI) rises to an eight-month high of 56.4 in July compared to 53.9 in June.

European indices traded higher than Friday’s levels. Asian indices trade mixed as China’s PMI fell to 49 in July from 50.2 in June. US indices closed higher on Friday led by the tech-heavy index, NASDAQ 100, which rose 1.8%. The Dow Jones closed 1% higher while the S&P 500 rose 1.4%. Crude oil futures traded lower on the back of weak Chinese PMI data ahead of a crucial OPEC+ meeting scheduled on Wednesday.

Nifty Smallcap 100 and Nifty Next 50 closed higher, following the benchmark index. Nifty Auto and Nifty Energy closed sharply higher than Friday’s levels. Nifty IT closed in the green, taking cues from the NASDAQ 100, which closed sharply higher on Friday.

Nifty 50 closed at 17,332.30 (174.1, 1.0%) , BSE Sensex closed at 58,115.50 (545.3, 1.0%) while the broader Nifty 500 closed at 14,842.15 (176.5, 1.2%)

Market breadth is surging up. Of the 1,926 stocks traded today, 1,346 were in the positive territory and 520 were negative.

• IIFL Wealth Management, EPL, Sanofi India, and CESC are trading with higher volumes as compared to Friday.

• Tata Steel sees a long build-up in its August 25 future series as its open interest rises 8% with put to call ratio of 0.46.

• Maruti Suzuki is rising as its domestic passenger vehicle wholesales increase by 6.8% YoY to 1.4 lakh units. Increase in wholesales of mini, compact and mid-sized passenger cars by 16.9% YoY aids the rise in domestic wholesales of passenger vehicles.

• Mahindra & Mahindra is rising as its July monthly overall auto wholesales rise 30.6% YoY to 56,148 units. The growth in auto wholesales is driven by a rise in domestic wholesales of utility vehicles and commercial vehicles by 34% YoY and 18.6% YoY, respectively. However, farm equipment wholesales fall 14% YoY to 21,684 units as domestic farm equipment wholesales decline 16% YoY. Domestic farm equipment wholesales fall as July marks the beginning of the sowing season.

• Media stocks like Zee Entertainment Enterprises, PVR, Saregama India, Inox Leisure, Network 18 Media & Investments, among others, are rising in trade. The broader sectoral index Nifty Media is also trading in the green.

• Ashok Leyland rises to a three-year high of Rs 158.2 as its commercial vehicle wholesales increase 58% YoY to 13,625 units. The rise in commercial vehicle wholesales is due to a 113% rise in wholesales of medium and heavy commercial vehicles.

• Edelweiss maintains its ‘Buy’ rating on Zydus Wellness with a target price of Rs 2,271. This indicates an upside of 41%. The brokerage expects the company’s growing product portfolio to drive profitability in FY23. It remains positive on the company’s prospects on the back of new product launches, expansion in distribution reach, high advertising & promotion expenditure, and price hikes. The brokerage estimates the company’s net profit to grow at a 23.2% CAGR over FY22-24.

• Bajaj Auto is rising despite its July two-wheeler wholesales falling 5% YoY to 3.2 lakh units. The drop in two-wheeler wholesales comes due to a 14% YoY fall in exports. However, the company's commercial vehicle wholesales rise 3% YoY.

• Godfrey Phillips India is trading with more than 10 times its weekly average trading volume. Nazara Technologies, Metro Brands, Mastek, and IDFC First Bank are trading at more than seven times their weekly average trading volumes.

• India's digital payments platform-Unified Payments Interface (UPI) processes transactions worth Rs 10.6 lakh crore, a record high since its launch in 2016. Value of transactions rise 75% YoY.

  UPI records 6 billion transactions in July, highest ever since 2016. #UPI #fintech pic.twitter.com/OJd5oemlPq

  — Business Standard (@bsindia) August 1, 2022

• Tata Motors’ total domestic wholesales rise 52% YoY with commercial vehicle wholesales increasing 43% YoY. As the economy picks up pace, passenger carrier vehicles’ wholesales rise 319% YoY. Despite semi-conductor shortages, domestic passenger vehicle wholesales are up 57% in July.

• Escorts Kubota is falling as its monthly tractor wholesales in July are down by 18.3% YoY to 5,360 units. The decline in tractor wholesales is due to a 22.3% YoY fall in domestic tractor wholesales. The company's construction equipment monthly wholesales declines by 17.7% YoY.

• Bank of Baroda is rising as its net profit rises 79.4% YoY to Rs 2,168 crore due to a 39% YoY fall in provision for bad loans. Net interest income rises 12% YoY on the back of its overall gross advances growing to Rs 8.4 lakh crore. Credit growth is led by the expansion of the bank's retail loan portfolio, driven by personal loans, auto loans and educational loans. The bank’s asset quality improves significantly as its net NPA ratio falls 145 bps YoY to 1.6%.

• Indian Oil Corp falls as it posts a loss of Rs 279.4 crore at the consolidated level in Q1FY23, the first time in eight quarters. Revenue rises 63.2% YoY to Rs 2.5 lakh crore. The company’s net profit falls despite gross refining margin (GRM) rising 383.4% YoY to $ 31.8 per barrel.

• Metropolis Healthcare’s Chief Executive Officer Vijender Singh resigns on Friday due to personal reasons. The resignation is effective from November 30.

• India’s Manufacturing Purchasing Managers' Index (PMI) rises to 56.4 in July compared to 53.9 in June.

  India's manufacturing PMI at eight-month high in July.
  
  For the latest news & updates visit: https://t.co/gXeGqKQ77P pic.twitter.com/6XKVmkQcZF

  — BQ Prime (@bqprime) August 1, 2022

• DLF is falling despite its net profit rising 39.3% YoY to Rs 469.6 crore. Profit grows on robust demand in the super luxury category of residential homes. Revenue rises by 26.5% YoY on the back of new product launches. New sales booking in the residential business jumps 2X YoY to Rs 2,040 crore. The company generates surplus cash of Rs 421 crore, which aided in reducing its net debt to Rs 2,259 crore. However, the company’s operating margin falls by 6 percentage points YoY as the cost of land, plots, and constructed properties rises 26.7% YoY.

• Airline stocks like InterGlobe Aviation (Indigo) and Spicejet are rising in trade after jet fuel prices go down by 12% amid a fall in international crude oil prices.

  Jet fuel (ATF) prices were reduced by 12%, reflecting a fall in international oil prices.
  
  Aviation turbine fuel (ATF) prices were cut by 12per cent, to ?1,21,915.57 which was ?138,147.93 per kl on 16 July in Delhi. https://t.co/gbhAKv7wrG

  — Mint (@livemint) August 1, 2022

• Metro Brands rises and hits an all-time high as it reports a net profit of Rs 105.7 crore in Q1FY23 against a net loss of Rs 12 crore in Q1FY22. Revenue shoots up 3.8X YoY as sales increase across product categories and regions with digital sales growing 106% YoY. Gross margin improves by 40 bps to 59.7% because of better sales mix and minimal contribution of discounted sales. The company also adds 20 more stores in Q1FY23.

• NTPC is falling despite its Q1FY23 net profit rising 16.9% YoY to Rs 3,676.4 crore. Its revenue surges 47% YoY with revenue from power generation growing 47.7%. However, its expenses shoot up with fuel costs rising 76.5% YoY because of rise in crude oil prices. This affected operating margin as it fell 5.6 percentage points to 17.5%

• Cipla’s Q1FY23 net profit falls 4% YoY to Rs 686 crore as revenue dips 2.8% YoY. The management says margins are within its guidance (21.3%) because of a steady increase in prices which offset the rise in costs. Revenue from pharma segment is down 3% YoY. The company’s India revenue also falls 8.4% YoY to Rs 2,483 crore because of normalization in share of Covid-19 drugs.

Riding High:

Largecap and midcap gainers today include IDFC First Bank Ltd. (41.95, 11.72%), Kansai Nerolac Paints Ltd. (431.55, 7.89%) and PB Fintech Ltd. (504.20, 7.68%).

Downers:

Largecap and midcap losers today include Star Health and Allied Insurance Company Ltd. (709.75, -5.01%), Tube Investments of India Ltd. (2,023.00, -2.83%) and Sun Pharmaceutical Industries Ltd. (918.70, -2.60%).

Volume Shockers

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

Top high volume gainers on BSE included Metro Brands Ltd. (737.20, 15.23%), V Mart Retail Ltd. (3,123.55, 12.69%) and IDFC First Bank Ltd. (41.95, 11.72%).

Top high volume losers on BSE were Multi Commodity Exchange of India Ltd. (1,322.60, -5.32%), Blue Star Ltd. (960.75, -2.49%) and Emami Ltd. (444.75, -1.13%).

Punjab & Sind Bank (14.90, -0.33%) was trading at 16.2 times of weekly average. Godfrey Phillips India Ltd. (1,185.60, 3.91%) and Mastek Ltd. (2,185.30, 4.01%) were trading with volumes 13.0 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks hit their 52 week highs,

Stocks touching their year highs included - Adani Transmission Ltd. (3,261.75, 4.89%), AIA Engineering Ltd. (2,474.65, 3.17%) and Ashok Leyland Ltd. (154.25, 3.52%).

40 stocks climbed above their 200 day SMA including Alkyl Amines Chemicals Ltd. (3,188.05, 8.82%) and Grindwell Norton Ltd. (1,890.35, 7.60%). 2 stocks slipped below their 200 SMA including India Cements Ltd. (193.80, -1.55%) and Granules India Ltd. (304.30, 1.55%).