Trendlyne Marketwatch    
03 Aug 2022
Market closes higher, eClerx Services' board mulls a bonus issue of shares

Trendlyne Analysis

Nifty 50 recovered over 160 points from its day’s low and closed in the green on a volatile day of trade. Indian indices closed higher for a sixth straight session. India’s July Services Purchasing Managers' Index or PMI missed analysts’ forecast and fell to 55.5 from 59.2 in June. European indices traded lower than Tuesday’s levels.

Major Asian indices closed mixed as investors keep an eye on the China-US tensions as US House Speaker Nancy Pelosi landed in Taiwan on Tuesday, despite warnings from China. In reaction, China said the action was “extremely dangerous” by the US. On Tuesday, US indices closed in the red, led by the Dow Jones, which fell 1.2%. The tech-heavy index, NASDAQ 100, closed 0.3% lower while the S&P 500 fell 0.7%. Brent crude oil futures hovered around $100 levels after falling over 7% in the last three days due to demand concerns.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, despite the benchmark index closing in the green. Nifty Realty and Nifty Pharma closed lower than Tuesday’s levels. Nifty IT closed in the green, despite the tech-focused index, NASDAQ 100, closing lower on Tuesday.

Nifty 50 closed at 17,392.90 (47.5, 0.3%), BSE Sensex closed at 58,350.53 (214.2, 0.4%) while the broader Nifty 500 closed at 14,880.00 (3.4, 0.0%)

Market breadth is moving down. Of the 1,895 stocks traded today, 614 were gainers and 1,233 were losers.

  • Gland Pharma, Endurance Technologies, V-Guard Industries, and Sun Pharma Advanced Research Company are trading with higher volumes as compared to Tuesday.

  • Cipla sees a long build-up in its August 25 future series as its open interest rises 1.9% with a put-call ratio of 0.7.

  • Indian rupee appreciates to 78.7 against the US dollar in early trade today, but gives up its gains and falls for the first time in five days.

  • eClerx Services is surging in trade after announcing that its board of directors will mull a bonus issue of shares on Tuesday. The board will also approve the company's Q1FY23 results on the same day.

  • Auto stocks like Bosch, Bharat Forge, Tata Motors and Maruti Suzuki India, among others, are falling in trade. The broader sectoral index Nifty Auto is also trading in red.

  • City gas distributor Mahanagar Gas announces a second price hike within a month. It hikes prices for CNG by Rs 6 per kg and PNG by Rs 4 per unit with immediate effect.

  • Sun Pharma's Chairman Israel Makov will retire on August 29 after the completion of his tenure. He will also step down from the company's board of directors.

  • ICICI Direct maintains its ‘Buy’ rating on Ashok Leyland with a target price of Rs 180, indicating an upside of 17%. The brokerage expects the company to be the largest beneficiary of the cyclical recovery in the commercial vehicle space given its large market share and extensive product portfolio. It also believes the company’s sales volume growth and cost control measures will increase profitability in the coming quarters. The brokerage estimates the company’s net profit to grow at a CAGR of 60.8% over FY22-24.

  • SpiceJet rises as the airline’s promoter Ajay Singh looks at the option of a partial stake sale, according to reports. This could include a 24% stake sale to an investor, which could include a seat on the company's board. Ajay Singh holds a 60% stake in SpiceJet, as of June 30.

  • MOIL is trading with more than 30 times its weekly average trading volume. eClerx Services, The New India Assurance Company, General Insurance Corporation of India, and Brigade Enterprises are trading at more than ten times their weekly average trading volumes.

  • Zomato is falling in trade as reports suggest Uber sells its 7.8% stake in the company worth Rs 3,087 crore.
  • Telecommunication companies like Indus Towers, Vodafone idea, Tejas Networks, Tata Teleservices, and Sterlite Technologies are falling in trade. The broader sectoral index S&P BSE Telecom is also trading in the red.

  • Bosch is falling despite its Q1FY23 net profit rising 28.3% YoY to Rs 334.1 crore. Rise in sales of automotive products helps the revenue to increase 45% YoY to Rs 3,544.4 crore. Original equipment manufacturers’ (OEM) long waiting periods for delivery and strong order books aids in the rise in revenue of automotive products. This gives the company sustained demand in the passenger cars and utility vehicles segments.

  • Lemon Tree Hotels is falling despite turning profitable in Q1FY23, after posting a loss for nine consecutive quarters. The company posts a net profit of Rs 13.9 crore in Q1FY23 as compared to a loss of Rs 40.1 crore in Q1FY22. Revenue grows 4.5X YoY mainly due to a significant rise in corporate travel. The company’s occupancy rate rises 35.5 percentage points YoY to 65.1% as demand from the corporate travel and leisure travel segment improves.

  • India’s July Services Purchasing Managers' Index (PMI) falls to 55.5 compared to 59.2 in June due to inflationary pressures.

  • Nomura Singapore buys 11.5 lakh shares (0.5% stake) in Easy Trip Planners at an average price of Rs 399 per share in a bulk deal on Tuesday.

  • Rakesh Jhunjhunwala buys 0.9% stake in Leading Leasing Finance and Investment worth Rs 73.5 lakh in a bulk deal on Monday.

  • The Centre cut export taxes on diesel to Rs 5 per litre from Rs 11 per litre on Tuesday. This comes after India’s trade deficit hit a record high in July. The Centre also raises export tax on domestically produced crude oil to Rs 17,750 per tonne from Rs 17,000 per tonne.

  • Mahindra & Mahindra Financial Services’ disbursements in July grows 63% YoY to Rs 3,912 crore on the back of an improving macro environment. The company’s asset quality improves as its collection efficiency rises 200 bps YoY to 97%. The management expects the asset quality to improve further in Q2FY23.

  • Subex – a Telecom Analytics Solutions company ties up with Jio Platforms to provide artificial intelligence (AI) for Jio’s 5G product line. With this, Jio Platforms will give its Cloud Native 5G core to telecom companies globally, combining it with Subex’s AI for network automation, better performance and customer experience.

  • Siemens’ Q1FY23 net profit surges 2.2X YoY to Rs 300.7 crore in Q1FY23 as revenue jumps 50.5% YoY. Revenue rises across segments, with energy increasing 52.3% and smart infrastructure rising 40.5% YoY. Revenue from mobility and digital industries also grew by 171% and 45.7%, respectively. The management attributes revenue growth to a robust order book. However, it is also concerned about the global demand scenario and may slowdown capex in case of a slowdown.

Riding High:

Largecap and midcap gainers today include IDBI Bank Ltd. (41.25, 13.32%), The New India Assurance Company Ltd. (89.50, 6.67%) and One97 Communications Ltd. (804.55, 6.46%).

Downers:

Largecap and midcap losers today include Indus Towers Ltd. (206.45, -5.88%), Siemens Ltd. (2,614.65, -4.46%) and YES Bank Ltd. (16.45, -4.08%).

Volume Shockers

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

Top high volume gainers on BSE included IDBI Bank Ltd. (41.25, 13.32%), Spicejet Ltd. (50.10, 12.97%) and The New India Assurance Company Ltd. (89.50, 6.67%).

Top high volume losers on BSE were Indus Towers Ltd. (206.45, -5.88%), Siemens Ltd. (2,614.65, -4.46%) and Thermax Ltd. (2,010.40, -3.90%).

Johnson Controls-Hitachi Air Conditioning India Ltd. (1,534.80, -2.19%) was trading at 42.5 times of weekly average. MOIL Ltd. (166.50, 4.91%) and eClerx Services Ltd. (2290.50, 4.29%) were trading with volumes 37.6 and 25.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks overperformed with 52-week highs, while 1 stock tanked below its 52-week lows.

Stocks touching their year highs included - Adani Power Ltd. (339.60, 3.36%), Adani Transmission Ltd. (3,505.35, 2.45%) and AIA Engineering Ltd. (2,489.75, -0.22%).

Stock making new 52 weeks lows included - GlaxoSmithKline Pharmaceuticals Ltd. (1,382.60, -2.31%).

15 stocks climbed above their 200 day SMA including Star Cement Ltd. (93.70, 5.52%) and MOIL Ltd. (166.50, 4.91%). 21 stocks slipped below their 200 SMA including Balrampur Chini Mills Ltd. (379.90, -5.21%) and Alkyl Amines Chemicals Ltd. (3,036.40, -3.27%).

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