Trendlyne Analysis

Nifty 50 closed flat, with the volatility index, India VIX, falling below 19%. Reserve Bank of India raised the repo rate by 50 bps to 5.4% during its bi-monthly monetary policy meeting to tackle inflationary pressures. Major European indices traded flat to lower while the Asian indices closed higher than Thursday’s levels. The US indices closed mixed on Thursday as the tech-heavy NASDAQ 100 rose 0.4% and the Dow Jones closed 0.3% lower. US stocks closed mixed as investors await US July jobs report on Friday for cues on the pace of interest rate hikes by the US Federal Reserve. On Thursday, The Bank of England raised the interest rates by 50 bps and warned of a recession in the UK. Crude oil extends losses and traded lower amid demand concerns.

Nifty Smallcap 100 and Nifty Next 50 closed in the green, following the benchmark index. Nifty Realty and Nifty Bank closed higher than Thursday’s levels. Nifty IT closed in the green, tracking the NASDAQ 100, which closed higher on Thursday.

Nifty 50 closed at 17,389.05 (7.1, 0.0%), BSE Sensex closed at 58,387.93 (89.1, 0.2%) while the broader Nifty 500 closed at 14,889.40 (-3.1, 0.0%)

Market breadth is in the green. Of the 1,893 stocks traded today, 979 were on the uptick, and 848 were down.

• Krishna Institute of Medical Sciences, Indian Bank, Symphony, and Motilal Oswal Financial Services are trading with higher volumes as compared to Thursday.

• NMDC sees a long build-up in its August 25 future series as its open interest rises 16.1% with a put-call ratio of 0.82.

• Alkem Laboratories is falling as its Q1FY23 net profit plunges by 72.7% YoY to Rs 127.6 crore due to a high base from Q1FY22 and price erosion in the US. Revenue falls 5.7% YoY as the sales from the India business and international business decline. EBITDA margin falls by 13.8 percentage points YoY due to high input costs.

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

• Titan is rising as its Q1FY23 net profit increases 44X to Rs 785 crore. Increase in sales of jewellery and eyecare products aids in a 23.5% YoY growth to Rs 8,975 crore in revenue. The growth in sales of jewellery is driven by buyer demand and ticket sizes.

• Eris Lifesciences falls after it reports a decline in net profit by 11.3% YoY to Rs 94.5 crore in Q1FY23. Revenue increases 14.1% YoY with Zomelis Mother brand sales improving significantly, and a revival in the cardio-metabolic business. The company maintains revenue guidance of 30% for FY23. Eris' finance costs have surged 9.3X YoY on account of its acquisition of Oaknet Healthcare. The company has declared an interim dividend of Rs 7.35 per share for FY23.

• Tata Elxsi and Navin Fluorine International hit their 52 week-highs. Tata Elxsi rises for four consecutive days and Navin Fluorine International trades higher for three sessions.

• Manappuram Finance is rising despite its Q1FY23 net profit falling by 35.4% YoY to Rs 282.1 crore. Profit declines as interest income reduces by 4% YoY, while finance and employee costs increase. However, the company’s assets under management rise 24.3% YoY to Rs 30,760 crore.

• Mahindra & Mahindra is falling despite reporting a profit of Rs 2,360.7 crore in Q1FY23, against a loss of Rs 331.7 crore in Q1FY22. The company's revenue is up 47.8% YoY to Rs 28,412.4 crore on the back of robust sales volumes for the auto segment.

• Crompton Greaves Consumer Electricals is trading with more than 16 times its weekly average trading volume. Bayer Cropscience, Blue Star, FDC, and Balkrishna Industries are trading at more than four times their weekly average trading volumes.

• Steel stocks like JSW Steel, Vedanta, APL Apollo Tubes are rising in trade. The stocks are up after reports that the government is considering reducing or eliminating the export duty on steel products.

• RBI Governor Shaktikanta Das says that the Indian rupee depreciated systematically and is in a better position than other emerging market currencies. He also adds that RBI will monitor liquidity and focus on stabilizing the rupee.

  RBI MPC Meet | "Rupee depreciation has happened in an orderly fashion. Remain watchful & focussed on maintaining stability of Indian Rupee" says @RBI Governor @DasShaktikanta #USDINR #RupeeVsDollar #Inflation #Rupee pic.twitter.com/oXzEpzRbte

  — ET NOW (@ETNOWlive) August 5, 2022

• Easy Trip Planners and SpiceJet rise as EaseMyTrip Thai, a subsidiary Easy Trip Planners inks a general sales agreement with SpiceJet to sell, promote and market tickets and services to passengers travelling to Thailand, effective September 1. With this arrangement, both companies are trying to expand their foothold in the Thailand market.

• HDFC Securities maintains its ‘Buy’ rating on Gujarat Gas but reduces its target price to Rs 575 from Rs 625. This indicates an upside of 24.2%. The brokerage cut its target price due to the company’s sales volume growth being lower than expected. However, the brokerage remains positive on Gujarat Gas' prospects given its rising margins, extensive geographical presence, and higher return ratios compared to its peers. It estimates that its revenue will grow at a CAGR of 22.3% over FY22-24.

• LIC Housing Finance is rising as its net profit surges 6X YoY to Rs 926.8 crore on the back of robust credit growth and significantly lower provisions. Total disbursements rise by 76% YoY to Rs 15,201 crore. The company’s net interest income has jumped 26% YoY as its net interest margin improves.

• Welspun Corp is falling as its Q1FY23 net profit drops 95.6% YoY to Rs 4.1 crore. The company's revenue sinks 10.2% YoY amid a rise in raw material and finance costs.

• Canadian Pension Fund’s arm Ivanhoe Op India Inc sells 70.2 lakh shares (1.46% stake) in Macrotech Developers worth Rs 736 crore in a bulk deal

• Balkrishna Industries is falling as its net profit declines by 7.1% YoY to Rs 307 crore. Profit falls as raw material costs and logistics costs remain high - freight and forwarding expenses jump by 3X YoY. The management expects a fall in input costs to start from Q4FY23. Revenue rises 45.3% YoY as sales volumes improve on the back of healthy demand. However, the rise in sales volume is offset by elevated input costs leading to the operating margin falling by 11.4 percentage points YoY.

• Reserve Bank of India raises repo rate by 50 bps to 5.4% during its bi-monthly monetary policy meeting, amid inflationary pressures.

  #RBIPolicy | RBI raises benchmark Repo rate by 50 bps to 5.4% from 4.9%. https://t.co/ITWQAMBnRN #RBIMPC #RBIPolicy #MPCMeet #Inflation #InterestRate #ShaktikantaDas

  — Economic Times (@EconomicTimes) August 5, 2022

• Adani Enterprises touches a 52-week high as its Q1FY23 net profit rises 73% YoY to Rs 469.4 crore and revenues surge 3.2X YoY. Maximum revenue came in from integrated resource management, mining and airport segments with revenue from airports zooming 18X YoY. However, a surge in foreign exchange expenses because of a volatile rupee along with an increase in employee benefit expense, finance costs and operating expenses dent the operating margin by 6.1 percentage points to 2.7%.

• Britannia’s Q1FY23 net profit falls 13% YoY to Rs 337.4 crore despite an increase in revenue by 9%. The company’s sales volumes are also down but may increase from Q2FY23. Despite the company increasing prices across a range of its products, the operating margin of the company fell 269 bps YoY because of an increase in input costs due to inflation. The management expects a fall in commodity prices and additional price hikes to improve profitability in the coming quarters.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (197.80, 5.24%), Tata Communications Ltd. (1,101.35, 4.79%) and InterGlobe Aviation Ltd. (2,080.90, 4.77%).

Downers:

Largecap and midcap losers today include Balkrishna Industries Ltd. (2,162.80, -6.77%), Adani Transmission Ltd. (3,313.55, -6.14%) and Zomato Ltd. (54.60, -5.62%).

Volume Rockets

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

Top high volume gainers on BSE included Manappuram Finance Ltd. (108.15, 6.39%), Lemon Tree Hotels Ltd. (72.85, 6.27%) and FDC Ltd. (272.55, 5.80%).

Top high volume losers on BSE were Balkrishna Industries Ltd. (2,162.80, -6.77%), GAIL (India) Ltd. (132.90, -5.14%) and Amber Enterprises India Ltd. (2,268.00, -4.81%).

Crompton Greaves Consumer Electricals Ltd. (373.85, -3.86%) was trading at 17.6 times of weekly average. Bayer Cropscience Ltd. (5,482.05, 3.69%) and NMDC Ltd. (110.90, 3.26%) were trading with volumes 17.0 and 12.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

14 stocks took off, crossing 52-week highs, while 1 stock was an underachiever and hit its 52-week lows.

Stocks touching their year highs included - Adani Transmission Ltd. (3,313.55, -6.14%), Cholamandalam Investment & Finance Company Ltd. (771.20, 1.07%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (809.80, -3.55%).

Stock making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (672.65, -4.31%).

20 stocks climbed above their 200 day SMA including Redington (India) Ltd. (144.80, 3.76%) and Restaurant Brands Asia Ltd. (125.10, 3.69%). 16 stocks slipped below their 200 SMA including Balkrishna Industries Ltd. (2,162.80, -6.77%) and Garware Technical Fibres Ltd. (3,020.25, -6.49%).