Trendlyne Marketwatch    
16 Aug 2022
Market closes higher, India’s WPI inflation falls to 13.93% in July

Trendlyne Analysis

Indian indices closed in the green with the volatility index, India VIX, rising close to 18%. The Nifty 50 rose for a sixth straight day and closed above the 17,800 mark. India’s Wholesale Price Index or WPI inflation fell to 13.93% in July compared to 15.18% in June. European indices followed the global trend and traded higher than Monday’s levels. Most major Asian indices closed higher as China lowered key lending rates to boost its slowing economic growth amid repeated Covid-19 lockdowns following its 'zero Covid' policy. US stocks closed in the green on Monday, led by the tech-heavy index, NASDAQ 100, which closed 0.8% higher. The Dow Jones rose 0.5% while the S&P 500 closed 0.4% higher. Brent crude oil futures traded higher after falling over 4.5% on Monday amid demand concerns.

Nifty Smallcap 100 and Nifty Next 50 closed in the green, following the benchmark index. Nifty Bank and Nifty Energy closed higher than Friday’s levels. Nifty IT closed flat after opening higher, despite the NASDAQ 100 closing in the green on Monday.

Nifty 50 closed at 17,825.25 (127.1, 0.7%), BSE Sensex closed at 59,842.21 (379.4, 0.6%) while the broader Nifty 500 closed at 15,280.50 (140.0, 0.9%)

Market breadth is in the green. Of the 1,930 stocks traded today, 1,071 were in the positive territory and 791 were negative.

  • KEC International, Cyient, Ajanta Pharma, and Aditya Birla Sun Life AMC are trading with higher volumes as compared to Friday.

  • Apollo Tyres sees a long build-up in its August 25 futures series as its open interest rises 19.3% with a put-call ratio of 0.87.

  • KR Choksey reiterates its 'Buy' rating on Zydus Lifesciences with a target price of Rs 445, indicating an upside of 15%. The brokerage is positive on the company due to a likely improvement in the company's India business sales and a keen focus on achieving EBITDA margins of around 20.0% in FY23. It estimates the company's revenue to grow at a CAGR of 7.2% over FY22-24.

  • Mahindra & Mahindra is rising after signing a term sheet with Volkswagen Group. According to the agreement, Volkswagen will supply modular electric drive matrix or MEB electric components for Mahindra & Mahindra’s new electric sports utility vehicles.
  • JK Paper and Home First Finance hit their all-time highs of Rs 447.2 and Rs 1,004.6, respectively. JK Paper rises for two sessions, while Home First Finance trades higher for five consecutive days.

  • Auto stocks like Escorts Kubota, Bosch, Maruti Suzuki India, Eicher Motors, and MRF are rising in trade. The broader sectoral index Nifty Auto is also trading in the green.

  • Syrma SGS Technology’s Rs 840-crore IPO gets bids for 92% of the available 2.9 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.5X of the available 1.4 crore shares on offer.

  • ICICI Direct maintains its ‘Buy’ rating on Info Edge with a target price of Rs 5,230, indicating an upside of 18%. The brokerage believes the company is well-placed to benefit from the improving hiring trend in the IT and healthcare sectors. Also, it expects the company’s revenue to grow on the rising demand for housing. It estimates the company revenue to grow at a CAGR of 20.2% over FY22-24.

  • Max Healthcare Institute is trading with more than 18 times its weekly average trading volume. Honeywell Automation India, UTI Asset Management Company, HDFC Asset Management Company, and Apollo Tyres are trading at more than nine times their weekly average trading volumes.

  • India’s Wholesale Price Index (WPI) inflation falls to 13.93% in July compared to 15.18% in June. This comes after the consumer price index (CPI) inflation slowed to 6.71% in July against 7.56% in June.

  • Zee Entertainment Enterprises is falling as its Q1FY23 net profit drops 50% YoY to Rs 106.1 crore. Rise in advertisement revenue aids total revenue to grow 3.9% despite a fall in subscription revenue. The stock features in the screener with high promoter stock pledges.

  • Samvardhana Motherson International rises after its board of directors approves a bonus issue of shares. The ratio of bonus issue will be, one bonus equity share against two existing equity shares, subject to the approval of the shareholders.

  • Rakesh Jhunjhunwala-owned stocks like Aptech, Tata Communications, Federal Bank, National Aluminium Co, and Metro Brands are falling in trade today. The big bull was a promoter in Aptech.

  • Life Insurance Corp of India is rising as its net profit jumps more than 24X YoY to Rs 602.8 crore. Profit growth is driven by the non-participating segment. The company’s market share of policies rises 412 bps YoY. The company has a high Trendlyne Checklist score of 58.3%.

  • Muthoot Finance is falling as its Q1FY23 net profit declines 16.8% YoY to Rs 819.2 crore. A fall of 6.9% YoY in interest income caused a decline in net profit. ICICI Direct downgrades Muthoot Finance to a 'Hold' rating from 'Buy'.

  • Adani Ports is rising as its arm Adani Logistics acquires Navkar Corporation’s inland container depot situated in Tumb, at Vapi in Gujarat for a lumpsum consideration of Rs 835 crore.

  • American equity firm KKR is to sell its entire 26% stake in Max Healthcare for Rs 9,416 crore today, according to reports.

  • Promoter Shakuntala Agarwal sells 50 lakh shares worth Rs 314.3 crore in AU Small Finance Bank in an insider trade on Friday. She now holds a 2.8% stake in the bank post the transaction. In another insider trade, promoter group firm MYS Holdings sells 25 lakh shares worth Rs 156.3 crore in the bank.

  • Oil and Natural Gas Corp is falling despite its profit surging 99.4% YoY to Rs 11,936.6 crore and revenue growing 69.1% YoY. Profit jumps on the back of elevated oil and gas prices. The company shows up on a screener with companies in which mutual funds increased their holdings in the past month.

  • KEC International secures new orders worth Rs 1,313 crore across its various business segments like railway, civil, cables, and oil and gas pipeline. The order also includes a transmission and distribution project secured in India, the Middle East and the US.

  • Hero MotoCorp’s Q1FY23 net profit rises 2.3X YoY to Rs 590 crore on account of higher volumes. Its revenue is up 53.5% YoY. Despite the supply chain disruptions and ongoing geo-political issues, the company’s EBITDA margin grew 180 bps YoY.

Riding High:

Largecap and midcap gainers today include HDFC Asset Management Company Ltd. (2,181.35, 11.49%), Max Healthcare Institute Ltd. (396.85, 9.66%) and Hindustan Zinc Ltd. (293.20, 7.12%).

Downers:

Largecap and midcap losers today include Muthoot Finance Ltd. (1,040.10, -12.41%), Grasim Industries Ltd. (1,591.55, -1.91%) and Hindalco Industries Ltd. (428.90, -1.68%).

Movers and Shakers

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

Top high volume gainers on BSE included Indiabulls Real Estate Ltd. (78.40, 15.89%), UTI Asset Management Company Ltd. (862.85, 15.08%) and HDFC Asset Management Company Ltd. (2,181.35, 11.49%).

Top high volume losers on BSE were Muthoot Finance Ltd. (1,040.10, -12.41%), IFB Industries Ltd. (1,012.35, -2.22%) and Zee Entertainment Enterprises Ltd. (237.80, -1.65%).

Max Healthcare Institute Ltd. (396.85, 9.66%) was trading at 25.0 times of weekly average. Honeywell Automation India Ltd. (42,503.35, 6.55%) and Apollo Tyres Ltd. (250.15, 5.95%) were trading with volumes 21.6 and 11.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

32 stocks hit their 52-week highs,

Stocks touching their year highs included - Adani Power Ltd. (362.35, 4.98%), Adani Transmission Ltd. (3,581.60, 1.30%) and Apollo Tyres Ltd. (250.15, 5.95%).

22 stocks climbed above their 200 day SMA including UTI Asset Management Company Ltd. (862.85, 15.08%) and HDFC Asset Management Company Ltd. (2,181.35, 11.49%). 6 stocks slipped below their 200 SMA including Grasim Industries Ltd. (1,591.55, -1.91%) and Alkyl Amines Chemicals Ltd. (3,045.40, -1.09%).

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