Trendlyne Marketwatch    
08 Aug 2022
Market closes higher, Zensar Technologies' Q1 net profit falls 42% QoQ to Rs 75 crore

Trendlyne Analysis

Indian indices closed in the green, with the Indian volatility index, India VIX, rising over 19%. The Nifty 50 rose over 125 points and closed above the 17,500 mark. European shares bounced back from their fall on Friday and traded higher. Asian indices closed mixed, tracking the US indices, which closed mixed on Friday. US stocks closed mixed as stronger than expected US jobs report raised concerns about the US Federal Reserve maintaining its aggressive monetary policy to tackle inflation. The tech-heavy index, NASDAQ 100 fell 0.8% while the Dow Jones closed 0.2% higher. Brent crude oil futures traded flat after falling about 9% last week amid demand concerns.

Nifty Smallcap 100 and Nifty Midcap 1000 closed in the green, following the benchmark index. Nifty Metal and Nifty Auto closed higher than Friday’s levels. Nifty IT closed flat, despite the NASDAQ 100 closing in the red on Friday.

Nifty 50 closed at 17,525.10 (127.6, 0.7%) , BSE Sensex closed at 58,853.07 (465.1, 0.8%) while the broader Nifty 500 closed at 14,993.35 (93.0, 0.6%)

Market breadth is in the green. Of the 1,917 stocks traded today, 1,017 were in the positive territory and 851 were negative.

  • Crisil, Thermax, SIS, and Carborundum Universal are trading with higher volumes as compared to Friday.

  • Hindustan Aeronautics sees a long build-up in its August 25 future series as its open interest rises 10.6% with a put-call ratio of 0.72.

  • Spicejet falls in trade after IDFC, YES Bank, Indian Bank categorize the loans in the airlines' name under the high-risk category, according to reports.

  • Stocks like Asian Paints, Pidilite Industries, Bajaj Finance, MRF, and Adani Total Gas are in the overbought zone, according to the technical indicator relative strength index or RSI.

  • Marico is rising as its Q1FY23 net profit grows 4.2% YoY to Rs 371 crore. Headwinds in sales of Saffola Oils results in a muted rise in revenues of 1.3% YoY to Rs 2,558 crore. Drop in cost of raw materials aids the EBITDA margin to grow 300 bps YoY to 31.2%.

  • Zensar Technologies touches a 52-week low of Rs 226.2 as its Q1FY23 net profit falls 42% QoQ to Rs 75 crore. However, revenue rises 4% QoQ with revenue from digital and application services increasing 4.9%. Revenue from the US and Europe regions grow more than 2% QoQ in constant currency in Q1.

  • Aditya Saraogi, Chief Financial Officer at Birla Corp, says that Q2FY23 would be a seasonally weaker quarter for the cement industry. He expects the company's EBITDA per tonne for FY23 to be around Rs 750 per tonne and volumes to grow at 15%.

  • Capital goods stocks like Hindustan Aeronautics, Siemens, Suzlon Energy, Grindwell Norton, and KNR Constructions are rising in trade. The broader sectoral index BSE Cap Goods is also trading in the green.

  • Promoter & Director Vishad D Mafatlal sells 1.5 lakh shares (0.3% stake) worth Rs 64.3 crore in Navin Flourine International in an insider trade on Friday. Mafatlal says this trade was done for charity and personal reasons.

  • Affle (India) trades flat despite its Q1FY23 net profit rising 52.6% YoY to Rs 54.4 crore. Revenue from cost per converted user (CPCU) services rises 144% YoY across India and international markets. This helped total revenue to rise 127.9% YoY to Rs 347.5 crore.

  • Sudarshan Chemical Industries is trading with more than six times its weekly average trading volume. Mahanagar Gas, ZF Commercial Vehicle Control Systems India, Hitachi Energy India, and BASF India are trading at more than three times their weekly average trading volumes.

  • Edelweiss maintains its ‘Buy’ rating on Aditya Birla Fashion & Retail with a target price of Rs 398. This indicates an upside of 43%. The brokerage remains positive on the company’s prospects as its margins expanded during Q1FY23 despite inflationary pressure. It believes the company’s growth momentum will continue in the coming quarters due to price hikes, an improving product mix, and a recovery in the Pantaloons segment. The brokerage expects the company’s revenue to grow at a CAGR of 25.8% over FY22-24.

  • Metal stocks like JSW Steel, Tata Steel, Vedanta, Hindalco Industries, Jindal Steel & Power and NMDC are rising in trade. The broader sectoral index BSE Metal is also trading in the green.

  • Mahanagar Gas is rising despite its Q1FY23 net profit falling 9.2% YoY to Rs 185.2 crore. Profit falls as the cost of natural gas jumps more than 5X YoY. Its revenue grows 2.4X YoY on total gas sales rising 44% YoY driven by soaring compressed natural gas sales. However, the rise in sales is offset by elevated prices of natural gas, leading to its operating margin dropping by 27.7 percentage points YoY.

  • Tata Motors' arm Tata Passenger Electric Mobility inks an agreement to acquire Ford India's manufacturing plant situated at Sanand, Gujarat for Rs 725.7 crore

  • Bharat Petroleum Corp is falling as it incurs a loss of Rs 6,147.9 crore in Q1FY23 compared to a profit of Rs 2,872.8 crore in Q1FY22. The loss is due to the company not raising fuel prices despite a significant increase in input costs. However, its revenue rises 70.7% YoY to Rs 1.21 lakh crore on a 22.1% YoY increase in market sales and higher turnout at its fuel stations. The company's gross refining margin surges more than 6X YoY as the refining business benefits from the elevated prices of petroleum products.

  • FSN E-commerce Ventures (Nykaa) is rising as its Q1FY23 net profit grows 33.2% YoY to Rs 4.5 crore. Rise in gross merchandising value of the fashion and beauty and personal care segments aids the revenue to increase by 40.5% to Rs 1,148.4 crore.

  • Blue Star is rising in trade after it bags three rural water supply project orders worth Rs 375 crore from the Department of Rural Water Supply and Sanitation (RWSS), Government of Odisha.

  • Crompton Greaves Consumer Electricals' promoter Temasek Holdings' arm MacRitchie Investments sells 2.02 crore shares (3.2% stake) in the company through a bulk deal on Friday. Temasek now holds a 2.74% stake in the company.

  • One97 Communications (Paytm) is rising despite its net loss widening to Rs 645 crore in Q1FY23 compared to Rs 382 crore loss in Q1FY22. Employee benefits expense and marketing costs surge 160% and 131% YoY respectively. However, revenue also increases 88.5% YoY. Gross merchandise value increases 101% YoY as average monthly transacting users rise 49% YoY to 7.4 crore users. The value of loans disbursed from its platform rises more than 7X YoY across segments like postpaid loans, personal loans and merchant loans.

  • State Bank of India’s Q1FY23 net profit falls 6.7% YoY to Rs 6,068 crore because of a mark-to market (MTM) loss on the investment book, as bond yields fall. Non-interest income also falls 80% YoY. Net interest income rises 12.8% YoY with net interest margins rising marginally by 8 bps to 3.2%. The asset quality of the bank improves as gross NPA rises 141 bps to 3.9% in Q1.

Riding High:

Largecap and midcap gainers today include Hindustan Aeronautics Ltd. (2,146.40, 7.47%), JSW Energy Ltd. (306.25, 7.16%) and One97 Communications Ltd. (829.60, 5.78%).

Downers:

Largecap and midcap losers today include Alkem Laboratories Ltd. (2,970.95, -4.56%), Hindustan Petroleum Corporation Ltd. (239.75, -4.37%) and Bharat Petroleum Corporation Ltd. (324.65, -3.49%).

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (311.65, 9.04%), Hindustan Aeronautics Ltd. (2,154.00, 7.85%) and One97 Communications Ltd. (834.95, 6.46%).

Downers:

Largecap and midcap losers today include Hindustan Petroleum Corporation Ltd. (239.05, -4.65%), YES Bank Ltd. (16.00, -3.90%) and Alkem Laboratories Ltd. (2,995.00, -3.78%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included HFCL Ltd. (74.50, 9.48%), Aegis Logistics Ltd. (288.05, 8.68%) and Mahindra Holidays & Resorts India Ltd. (255.05, 8.00%).

Top high volume losers on BSE were Sudarshan Chemical Industries Ltd. (456.00, -6.31%), Hindustan Petroleum Corporation Ltd. (239.05, -4.65%) and KEC International Ltd. (404.60, -4.58%).

Heidelberg Cement India Ltd. (192.80, 2.83%) was trading at 7.5 times of weekly average. Mahanagar Gas Ltd. (818.00, 4.18%) and AstraZeneca Pharma India Ltd. (3,155.50, 2.48%) were trading with volumes 6.0 and 5.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

16 stocks overperformed with 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (288.05, 8.68%), Great Eastern Shipping Company Ltd. (519.80, 2.49%) and Grindwell Norton Ltd. (1,987.30, 1.25%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (663.75, -1.32%) and Zensar Technologies Ltd. (229.90, -7.09%).

22 stocks climbed above their 200 day SMA including HFCL Ltd. (74.50, 9.48%) and JSW Energy Ltd. (311.65, 9.04%). 15 stocks slipped below their 200 SMA including KEC International Ltd. (404.60, -4.58%) and SJVN Ltd. (28.15, -2.26%).

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