Trendlyne Marketwatch
Trendlyne Marketwatch
27 Jan 2023
Market closes lower, Sterlite Technologies' Q3FY23 net profit grows 17% QoQ to Rs 77 crore

Trendlyne Analysis

Indian indices closed in the red, with the volatility index, India VIX, soaring above 17%. Nifty 50 fell over 280 points and closed just above the 17,600 mark. European stocks traded higher than Thursday’s levels. Australia’s ASX All Ordinaries and Japan’s Nikkei 225 indices closed in the green, taking cues from the US indices, which closed in the green on Thursday.

The US economy grew at an annual rate of 2.9% in the fourth quarter beating analysts’ expectations by 30 basis points. The tech-heavy Nasdaq 100 rose 2% led by heavyweight Tesla, which rose over 10% after the company released its quarterly results. S&P 500 closed 1.1% higher while the Dow Jones increased by 0.6% on Thursday. Brent crude oil futures have remained flat this week after rising over 10% in the previous two weeks before the current week as China's reopening continues to better the crude oil demand.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Energy and Nifty Metal closed over 4% lower than Wednesday’s levels. Adani group stocks plunge, extending a sell-off triggered by fraud allegations from Hindenburg Research on Wednesday. Nifty IT trade flat, taking cues from the tech-heavy Nasdaq 100 index, which rose 2% on Thursday.

Nifty 50 closed at 17,604.35 (-287.6, -1.6%) , BSE Sensex closed at 59,330.90 (-874.2, -1.5%) while the broader Nifty 500 closed at 14,874.75 (-297.2, -2.0%)

Market breadth is highly negative. Of the 1,954 stocks traded today, 265 were gainers and 1,666 were losers.

  • Adani Ports, Ambuja Cements and Adani Enterprises plunge 15.2%, 12.3% and 18.3% in trade today. Adani Enterprises' follow-on public offer (FPO) opened today.

  • Money flow index (MFI) indicates that stocks like Max Financial Services, NHPC, Sonata Software, Jindal Stainless and Persistent Systems are in the overbought zone.

  • Sterlite Technologies' net profit grows 17% QoQ to Rs 77 crore in Q3FY23 as revenue rises 12% QoQ. However, EBITDA margin falls 50 bps QoQ. Ankit Agarwal, Managing Director of the company, says, “Our performance this quarter has been strong. Sharp focus on cash and profitability, and calibrated exits from sub-scale businesses have poised us for long-term growth."

  • RBI Governor Shantikanta Das says that India's core inflation remains elevated but is seeing a gradual decline. He iterates that India's financial system continues to remain robust and stable.

  • Oil & Gas stocks like Adani Total Gas, Hindustan Petroleum Corp and Bharat Petroleum Corp fall more than 3% in trade. The broader Nifty Oil & Gas index also falls 6%.

  • Adani Power falls more than 5%, hitting a lower circuit in trade today. This comes after a foreign financial forensic firm Hindenburg raised concerns over the company’s financials and debt positions. The stock has a low momentum score and shows up in a screener for the highest increase in pledges by promoters.

  • Metal stocks like Hindalco Industries, Steel Authority of India and Vedanta fall more than 2.5% in trade. The broader Nifty Metal index falls more than 3% and is trading in the red.

  • Foreign institutional investors pull out Rs 943 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options receive the highest inflow of Rs 69,022.6 crore from foreign investors.

  • Samvardhana Motherson International’s board approves the acquisition of a 51% stake in Saddles International Automotive and Aviation Interiors for Rs 207 crore. Saddles is into manufacturing premium upholstery like seat covers for passenger vehicles, and gear knob covers, among others. It shows up in a screener of stocks with upcoming results and previous quarter net profit growth greater than 10% YoY and QoQ.

  • Vodafone Idea, Suzlon Energy and Indian Overseas Bank trade below their second support or S2 levels in a weak market.

  • HDFC Securities maintains its ‘Buy’ rating on SBI Cards and Payment Services but lowers the target price to Rs 1,020 from Rs 1,196. The revised target price implies an upside of 44.8%. The brokerage cites a lower share of revolving loans and a sharp fall in NIM for the revision. However, it remains positive on the firm given its industry-leading pace of credit card issuances, sustained traction in unit spending and market share gains.

  • Christopher Wood, Global Head of Equity Strategy at Jefferies, says that India is at risk due to increased positions in China but remains the best long-term investment option in Asia.

  • Coforge, Sona BLW Precision Forgings and Bajaj Auto outperform their industry by 10.16%, 13.4% and 4.9%, respectively, in the past month.

  • Happiest Minds acquires a 100% stake in Sri Mookambika Infosolutions for a cash consideration of Rs 111 crore. Sri Mookambika Infosolutions is a Madurai-based IT services company. It believes this acquisition will strengthen its offerings in the healthcare vertical, with delivery capabilities in tier-two cities like Madurai and Coimbatore.

  • KPIT Technologies, UPL and Sun Pharmaceuticals rise 2.6%, 2.9% and 0.5% respectively over the past week, ahead of their Q3FY23 results on January 31.

  • Dr. Reddy’s Labs is rising after reporting a surge in net profit by 77% YoY to Rs 1,247 crore. Revenue rises 27%, fueled by the sale of ‘Revlimid’ drug. Meanwhile, Torrent Pharma is falling even though its Q3 net profit rises 14% YoY to Rs 283 crore, with India revenue growing 17%. The company declares an interim dividend of Rs 14 per share for FY23.

  • Morgan Stanley gives Tata Elxsi an 'Underweight' rating with a target price of Rs 5,800. This implies a potential downside of 12.1%, as its embedded product design (EPD) business declines for the fifth quarter due to layoffs and project deferments.

  • Ceat posts a net profit of Rs 34.8 crore against a loss of Rs 20 crore in Q3FY22. Its revenue increases 13% YoY in a seasonally weak quarter because of price hikes taken earlier and a reduction in raw material costs QoQ. Gross margin improves by 203 bps QoQ in Q3. However, exports take a hit because of global headwinds.

  • DLF is rising as its Q3FY23 net profit is up 36.8% YoY to Rs 519 crore. But revenue falls 3.5% on the back of increasing expenses. The residential business sees improvement with an increase in new sales bookings by 24% YoY. The company shows up in a screener of stocks with improving RoA for the past two years.

  • Tata Motors is back in the black after seven quarters of loss, with a net profit of Rs 2,957.7 crore in Q3FY23. Profitability drastically improves due to higher realisations, softening commodity prices and better pricing. Revenue rises 22.5% YoY to Rs 88,488.6 crore on the back of robust demand, higher sales volumes and an improving supply of semiconductors. The stock shows up in a screener for companies with growth in net profit and increasing profit margin YoY.

Riding High:

Largecap and midcap gainers today include Tata Motors Ltd. (445.60, 6.34%), Bajaj Auto Ltd. (3,936.75, 5.90%) and Supreme Industries Ltd. (2,538.95, 5.18%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,928.00, -20.00%), Adani Transmission Ltd. (2,014.20, -20.00%) and Adani Green Energy Ltd. (1,486.25, -20.00%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Tata Motors Ltd. (445.60, 6.34%), Bajaj Auto Ltd. (3,936.75, 5.90%) and Supreme Industries Ltd. (2,538.95, 5.18%).

Top high volume losers on BSE were Adani Transmission Ltd. (2,014.20, -20.00%), Adani Green Energy Ltd. (1,486.25, -20.00%) and Dixon Technologies (India) Ltd. (2,721.80, -19.09%).

TTK Prestige Ltd. (802.80, 2.80%) was trading at 16.7 times of weekly average. Nuvoco Vistas Corporation Ltd. (353.50, -2.31%) and SIS Ltd. (370.75, -1.84%) were trading with volumes 15.2 and 11.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

42 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - ACC Ltd. (1,879.75, -13.20%) and Adani Ports & Special Economic Zone Ltd. (596.95, -16.29%).

9 stocks climbed above their 200 day SMA including Tata Motors Ltd. (445.60, 6.34%) and Bajaj Auto Ltd. (3,936.75, 5.90%). 50 stocks slipped below their 200 SMA including Adani Total Gas Ltd. (2,928.00, -20.00%) and Adani Enterprises Ltd. (2,761.45, -18.52%).

 
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