Trendlyne Marketwatch    
04 Oct 2022
Market closes higher, HDFC Bank's advances rise by 23.5% YoY

Trendlyne Analysis

Indian indices closed sharply higher with the volatility index, India VIX, falling below 20%. The Nifty 50 rose 387 points and closed above the 17,250 mark. European indices followed the global trend and traded higher than Monday’s close. India's exports fall 3.5% to $32.6 billion in September against $33.8 billion in the same month in 2021 with the trade deficit widening to $26.7 billion.

Major Asian indices closed in the green, in line with the US indices, which closed sharply higher on Monday. The tech-heavy NASDAQ 100 rose around 2.4% while the Dow Jones and S&P 500 also closed over 2.5% higher. Brent crude oil futures traded higher after rising close to 4% on Monday as OPEC+ considers cutting output of up to 1 million barrels per day at a meeting scheduled on Wednesday.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Bank and Nifty Auto closed higher than Tuesday’s close. Nifty IT closed sharply higher, tracking the NASDAQ 100, which closed in the green on Monday.

Nifty 50 closed at 17,277.45 (390.1, 2.3%), BSE Sensex closed at 58,065.47 (1,276.7, 2.3%) while the broader Nifty 500 closed at 14,965.35 (326.9, 2.2%)

Market breadth is overwhelmingly positive. Of the 1,950 stocks traded today, 1,542 showed gains, and 364 showed losses.

  • Stocks like Rites, Cochin Shipyard, Mazagon Dock Shipbuilders, and Zydus Lifesciences are in the overbought zone, according to the Money Flow Index or MFI.

  • HDFC Bank rises as it reports a rise in advances by 23.5% YoY to Rs 14.8 lakh crore in Q2FY23. Total deposits grow 19% YoY led by retail deposits rising 20.5% YoY. The bank’s CASA ratio falls by 168 bps YoY to 45%.

  • FMCG sales in September fell 9.6% MoM, due to a slowdown in demand from rural areas amid inflationary pressures, according to the data from Bizom.
  • HDFC, Tata Consultancy Services and Hero MotoCorp trade above their third resistance or R3 level as market trades higher.

  • Oil companies plan to not lift the 6-month freeze on the daily price hike of automobile fuel prices in order to recover past losses, according to reports.
  • IndusInd Bank rises after it reports a rise in advances by 18% YoY to Rs 2.5 lakh crore in Q2FY23. The increase in loans is led by the retail segment, according to reports. The bank’s deposits also rise 15% YoY with deposits from retail and small businesses constituting 41% of total deposits.

  • Edelweiss Securities upgrades its rating on Maruti Suzuki to ‘Buy’ from ‘Hold’. The brokerage says that Maruti Suzuki India will majorly benefit from its new launches, rising demand, and fall in commodity prices.
  • Electronics Mart’s Rs 500-crore IPO, which is entirely a fresh issue, gets bids for 1.7X of the available 6.25 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2X of the available 3.1 crore shares on offer.

  • Banks like IDFC First Bank, IndusInd Bank, Federal Bank, Bank of Baroda, and Bandhan Bank are rising in trade today. The broader sectoral index Nifty Bank is also trading in the green.

  • KRChoksey maintains its ‘Buy’ rating on Sun Pharmaceutical Industries with a target price of Rs 1,114. This implies an upside of 18%. The brokerage believes expects the company’s new product launches, a strong pipeline of generic products, market share gains, and better supply chain management to drive future revenue growth. It expects the company’s revenue to grow at a CAGR of 10.6% over FY22-24.

  • Angel One is rising as its client base increases 77.4% YoY to 1.15 crore in September. Growth in average daily turnover (ADTO) of F&Os helps the overall ADTO to increase by 116.4% YoY to Rs 13.7 lakh crore.

  • Larsen & Toubro rises as its power transmission & distribution business wins multiple orders worth Rs 1,000-2,500 crore in India and abroad. The company will work on building a 765kV transmission line in Gujarat and upgrade a distribution system in North-East India. The company won a repeat order to build 132 kV sub-stations in UAE and a 380 kV overhead line in Saudi Arabia.

  • Easy Trip Planners is rising as its board of directors will meet on Monday to consider a proposal for increasing the authorised share capital, bonus issue of shares, and a stock split.

  • Metal stocks like Hindalco Industries, APL Apollo Tubes, JSW Steel, among others are rising in trade. All constituents of the broader Nifty Metal index are trading in the green.

  • Vedanta is rising as its total aluminium production rises 2% YoY to 5.8 lakh tonnes in Q2FY23. Mined metal production rises 3% to 2.5 lakh tonnes. The company features in the screener with companies effectively using its capital to generate profit.

  • India’s September merchandise exports decline 3.5% to $32.6 billion amid a fall in demand for Indian goods due to global recession fears. India’s imports stand at $59.3 billion and the trade deficit in September is $22.7 billion.
  • Dilip Buildcon rises as its joint venture, RBL-DBL, receives a letter of acceptance from the Gujarat Metro Rail Corp. It pertains to the construction of a 10.6 km elevated viaduct and 11 metro stations worth Rs 1,061 crore for the Surat metro rail project.

  • Electronics Mart raises Rs 150 crore from anchor investors ahead of its IPO, which opens for subscription today. The company has allotted 2.5 crore equity shares at a price of Rs 59 per share to the anchor investors. The investors include Nippon Life India, Pinebridge Global Funds, Motilal Oswal Mutual Fund, Tata Mutual Fund, Whiteoak Capital, Abakkus Emerging Opportunities Fund, and Societe Generale.

  • Avenue Supermarts’ (Dmart) standalone revenue rises 35.8% YoY to Rs 10,384.6 crore in Q2FY23 on improved demand. Q2FY23 standalone revenue is 5.9% higher than the revenue of Q1FY23. The company shows up on a screener which lists stocks with quarterly growth in net profit and profit margin.

  • KEC International wins new orders worth Rs 1,407 crore across business verticals like transmission and distribution, railways, civil construction, and cables. The project pertains to the setting up of transmission lines in Kuwait and Saudi Arabia. The company shows up on a screener which lists stocks with an improving book value per share over the past two years.

Riding High:

Largecap and midcap gainers today include Mahindra & Mahindra Financial Services Ltd. (200.40, 11.49%), NHPC Ltd. (38.40, 8.17%) and IDFC First Bank Ltd. (53.20, 7.80%).

Downers:

Largecap and midcap losers today include Kansai Nerolac Paints Ltd. (484.15, -1.90%), Power Grid Corporation of India Ltd. (208.45, -1.11%) and Supreme Industries Ltd. (2,069.35, -1.08%).

Volume Rockets

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

Top high volume gainers on BSE included Angel One Ltd. (1,532.15, 12.35%), Mahindra & Mahindra Financial Services Ltd. (200.40, 11.49%) and IDFC First Bank Ltd. (53.20, 7.80%).

Top high volume losers on BSE were Gujarat State Petronet Ltd. (223.30, -1.76%) and Procter & Gamble Hygiene & Healthcare Ltd. (13,939.75, -0.44%).

Bank of Maharashtra (18.00, 2.56%) was trading at 9.3 times of weekly average. Godfrey Phillips India Ltd. (1,197.35, 5.47%) and Easy Trip Planners Ltd. (409.30, 6.89%) were trading with volumes 5.8 and 5.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks took off, crossing 52-week highs,

Stocks touching their year highs included - Bharti Airtel Ltd. (808.70, 0.67%), Blue Dart Express Ltd. (9,369.45, 4.07%) and Cipla Ltd. (1,144.65, 1.23%).

43 stocks climbed above their 200 day SMA including Angel One Ltd. (1,532.15, 12.35%) and L&T Finance Holdings Ltd. (77.00, 6.43%). 2 stocks slipped below their 200 SMA including PVR Ltd. (1,739.60, -0.94%) and Shriram City Union Finance Ltd. (1,747.50, 3.37%).

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