Trendlyne Marketwatch
Trendlyne Marketwatch
27 Oct 2022
Market closes higher, Rakesh Jhunjhunwala's portfolio cuts stake in Indiabulls Housing Finance

Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 closing above the 17,700 mark. The benchmark index remained volatile today on the back of futures and options October 27 contract expiry day. European stocks traded lower than Wednesday’s close as Credit Suisse posted a huge quarterly loss ahead of European Central Banks’ key policy-setting meeting. Major Asian indices closed in the green, despite the US indices closing in the red on Wednesday.

US stocks closed lower on the back of lower-than-expected earnings from major tech companies Google and Microsoft. Meta’s share price also plunged nearly 20% in after-hours trading after it missed quarterly revenue estimates. As a result, the tech-heavy NASDAQ 100 index fell 2.3% while the S&P 500 closed over 0.7% lower. Brent crude oil futures traded lower after rising 3.1% on Wednesday as record-high U.S. crude exports indicated strong global oil demand despite slowing global economic growth.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Bank closed higher than Tuesday’s close. Nifty IT closed in the red, tracking the NASDAQ 100, which fell over 2% on Wednesday.

Nifty 50 closed at 17,758.90 (102.6, 0.6%), BSE Sensex closed at 59,756.84 (212.9, 0.4%) while the broader Nifty 500 closed at 15,262.25 (104.2, 0.7%)

Market breadth is holding steady. Of the 1,936 stocks traded today, 973 were on the uptrend, and 911 went down.

  • Stocks like Godfrey Phillips India, Canara Bank, Axis Bank, and Bank of Maharashtra are in the overbought zone, according to the relative strength index or RSI.

  • Manish Raj Singhania, President of the Federation of Automotive Dealers' Association says that the automobile industry benefited from the festive season and expects sales to increase in the private vehicle and passenger vehicle segments.

  • REC’s Q2FY23 net profit rises 1% YoY to Rs 2,732 crore even as its revenue marginally falls by 0.9% YoY. The company’s board announces an interim dividend of Rs 5 per share for FY23, which will be paid on November 24. The stock shows up on a screener which lists companies with improving RoA over the last two years.

  • Tamilnad Mercantile Bank hits a 52-week high as its Q2FY23 net profit rises 37.5% YoY to Rs 262 crore with net interest income rising 15.8%. The asset quality of the bank improved significantly with gross NPA falling 1.6 percentage points YoY to 1.7% in Q2. The bank shows up on a screener of stocks with improving annual profits for the last two years.

  • Axis Bank and Bharti Airtel hit their all-time highs of Rs 919.9 and Rs 822.2, respectively. Axis Bank rises for last two sessions, while Bharti Airtel trades higher for six sessions.

  • Rakesh Jhunjhunwala's portfolio sees sale of stake in Indiabulls Housing Finance during Q2, now holds below 1% against 1.2% in Q1FY23

  • Sunil Singhania's Abakkus Fund adds Jubilant Pharmova to the portfolio in Q2FY23, buys 1.2% stake in the company

  • Kaveri Seed rises as the board approves buyback of fully-paid equity shares up to Rs 125.6 crore at price not exceeding Rs 700 per share.

  • Tushar Kawedia, Group CFO of IRB Infrastructure Developers says that toll collections are improving and expects a growth of 20% in toll revenue in FY23. He says that the construction business in Q2FY23 was affected by monsoons, but expects revenue from construction to improve in H2FY23.

  • Warehousing and Logistics, Aluminium and Aluminium Products, and Iron & Steel/Intermediate Products industries rise by more than 3% in trade today.

  • Bharat Electronics is rising despite its Q2FY23 net profit declining marginally by 0.1% YoY to Rs 623.7 crore, while its revenue grows 7.7% YoY. The company’s profit takes a hit due to a 30.9% YoY increase in the cost of raw materials. The stock shows up on a screener for companies with consistent high stock returns over the last five years.

  • The Centre mulls a second PLI Scheme for the pharmaceutical sector, according to reports. The PLI scheme could offer incentives of up to Rs 5,000 to Rs 6,000 crore towards raw materials for vaccines.

  • Gland Pharma hits a 52-week low as its Q2FY23 net profit falls 20% YoY to Rs 241 crore. Revenue is down by 3% YoY, however, revenue from the US, Europe, Canada and Australian markets rise 3%. Total sales to the US market rose 5% in Q2. The company shows up on the screener listing stocks with medium to low Trendlyne momentum scores.

  • NHPC, Container Corporation of India, Gujarat Gas rises more than 8% over the past week, ahead of their Q2FY23 results.

  • ICICI Direct downgrades its rating on Bajaj Finserv to ‘Hold’ from ‘Buy’ and keeps its target price unchanged at Rs 1,850. This implies an upside of 11%. The brokerage remains positive on the company’s prospects as it expects growth in the insurance segment and loan disbursements. However, it believes the firm is trading at an expensive valuation, hence the downgrade in rating. The brokerage expects the conglomerate’s net profit to grow at a CAGR of 41% over FY22-24.

  • Realty stocks like Phoenix Mills, DLF, Prestige Estates Projects, Indiabulls Real Estate, and Godrej Properties are rising in trade. The broader sectoral index BSE Realty is also trading in the green.

  • Century Textiles is rising as its Q2FY23 net profit surges 60.1% YoY to Rs 71.6 crore. Revenue rises 21.6% YoY driven by its pulp and paper segment's revenue growing 37.3% YoY. The pulp and paper segment contributed more than 75% to the company’s total revenue in Q2. The stock makes it to a screener for companies with improving cash flow and high durability.

  • Indian rupee rises to 82.15 against the US dollar in early trade today.

  • JSW Steel USA, a subsidiary of JSW Steel ties up with two Italian banks Intesa Sanpaolo and Banco BPM to finance its plate mill project in Texas. Total financing availed is $182 million with $112 million will be a term loan. JSW Steel shows up on a screener of stocks with improving RoCE for the past two years.

  • Metal stocks like JSW Steel, Vedanta, Jindal Steel & Power, and Steel Authority of India are rising in trade. The broader sectoral index BSE Metal is also trading in green.

  • Dabur’s Q2FY23 net profit falls 2.7% YoY to Rs 490.8 crore as inflation continues to affect demand from rural markets. However, its revenue increases by 6% YoY in Q2 with retail and food businesses contributing maximum to revenue growth. The company also bought a 51% stake in Badshah Masala for Rs 587.5 crore and will buy the remaining 49% stake over a period of five years.

Riding High:

Largecap and midcap gainers today include Tata Motors Limited (DVR) (236.05, 5.97%), JSW Steel Ltd. (679.60, 5.47%) and Indraprastha Gas Ltd. (425.55, 4.39%).

Downers:

Largecap and midcap losers today include Gland Pharma Ltd. (1,901.40, -14.56%), FSN E-Commerce Ventures Ltd. (1,049.40, -5.57%) and Tube Investments of India Ltd. (2,737.40, -3.27%).

Volume Rockets

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

Top high volume gainers on BSE included SJVN Ltd. (36.25, 10.18%), RBL Bank Ltd. (136.35, 10.14%) and IIFL Finance Ltd. (400.90, 10.09%).

Top high volume losers on BSE were Gland Pharma Ltd. (1,901.40, -14.56%), PCBL Ltd. (128.90, -8.19%) and FSN E-Commerce Ventures Ltd. (1,049.40, -5.57%).

Balaji Amines Ltd. (2,978.05, -3.96%) was trading at 8.7 times of weekly average. Century Textiles & Industries Ltd. (877.35, 7.78%) and AstraZeneca Pharma India Ltd. (3,303.60, 5.84%) were trading with volumes 8.3 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

23 stocks hit their 52-week highs, while 11 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Axis Bank Ltd. (915.15, 1.36%), Bharti Airtel Ltd. (817.10, 1.84%) and Blue Star Ltd. (1,223.95, 1.12%).

Stocks making new 52 weeks lows included - Johnson Controls-Hitachi Air Conditioning India Ltd. (1,173.00, -4.51%) and MphasiS Ltd. (1,969.95, -3.17%).

24 stocks climbed above their 200 day SMA including Century Textiles & Industries Ltd. (877.35, 7.78%) and Tata Motors Limited (DVR) (236.05, 5.97%). 8 stocks slipped below their 200 SMA including Rallis India Ltd. (227.00, -2.43%) and KEC International Ltd. (418.45, -2.20%).

 
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