Trendlyne Analysis

Indian indices closed in the green, with the Nifty 50 rising over 250 points from the day’s low on a volatile day of trade. However, European shares traded lower than Friday's levels. Most Asian indices closed higher except for the Hang Seng index, which closed in the red. On Friday, US stocks closed marginally higher as economic data and guidance from corporate earnings indicated softening demand and cooling inflation. The S&P 500 closed nearly 1% higher while the Dow Jones rose 0.1%. Crude oil prices traded flat following tensions in the Middle East due to a drone attack on Iran and also expected higher oil demand from China.

Nifty Smallcap 100 closed in the red, despite the benchmark index closing in the green. Nifty Energy and Nifty FMCG closed lower than Friday’s closing levels. Nifty IT closed in the green, following the Nasdaq 100, which closed higher on Friday.

Nifty 50 closed at 17,648.95 (44.6, 0.3%), BSE Sensex closed at 59,500.41 (169.5, 0.3%) while the broader Nifty 500 closed at 14,854.20 (-20.6, -0.1%)

Market breadth is in the red. Of the 1,986 stocks traded today, 748 were on the uptrend, and 1,181 went down.

• TVS Motor Co beats Bajaj Auto in YoY revenue & net profit growth, one-year price change and MF holdings, but lags in PE ratio, annual RoE, one-year dividend yield and quarter price change.

• Bajaj Finance, Ratnamani Metals & Tubes, KEI Industries and Radico Khaitan are trading above their second resistance or R2 level despite markets trading lower.

• Keki Mistry, Chief Executive Officer of HDFC, warns of another 25 bps rise in interest rates. He iterates that increasing capital rate tax gains is not a good idea. However, maximum interest, which is tax deductible, needs to be increased, he adds.

  #MarketsWithETNOW | Housing demand to stay sustainable?
  
  Keki Mistry of HDFC speaks about the impact of inflation on the housing sector, growth in corporate tax and more @HDFC_Bank @nikunjdalmia @AyeshaFaridi1 @avannedubash @NayantaraRai https://t.co/wetVAe8Xm8

  — ET NOW (@ETNOWlive) January 30, 2023

• GAIL India is falling as its Q3FY23 net profit declines 89.1% YoY to Rs 413.8 crore on the back of the purchase of stock in trade surging more than 2X YoY. However, revenue rises 37.3% YoY as the natural gas marketing segment grows 61.1% YoY. The stock shows up in a screener for companies with declining net profit sequentially for the past three quarters.

• Data Patterns surges more than 10% with high volumes as its net profit grows 271.3% YoY to Rs 33.3 crore. Revenue is up 155% to Rs 11.8 crore in Q3FY23. Srinivasagopalan Rangarajan, Chairman and Managing Director of the company, says, "With the expectation of new orders in Q4, we are focused on improving execution to promote operating leverage and maintaining a diversified order book."

• The Centre may consider a capital booster worth Rs 4,000 crore for general insurance companies United India, Oriental Insurance and National Insurance in the upcoming budget, say reports. This is to help these insurers meet their solvency needs.

  #BudgetKhabar | Govt to infuse capital in 3 GICs
  
  Capital booster likely to be announced for United India, Oriental Insurance and National Insurance in the Budget
  
  Govt likely to infuse around Rs 4,000 cr of urgent capital
  
  @anuragshah_has more details#Budget2023WithETNOW pic.twitter.com/uJkoliJcZD

  — ET NOW (@ETNOWlive) January 30, 2023

• Laurus Labs’ Q3FY23 net profit rises 32.1% YoY to Rs 203 crore and revenue increases 50.2% YoY to Rs 1,544.8 crore. This growth is driven by the robust demand in its synthesis and active pharmaceutical ingredient businesses. The stock shows up in a screener for companies with revenue increasing sequentially for the past three quarters.

• Welspun India enters into a brand licensing agreement with Disney to manufacture and distribute home textile products in the Europe, Middle-East and Africa (EMEA) region, according to reports.

• AGI Greenpac is surging as its Q3FY23 net profit grows 80.8% YoY to Rs 53.2 crore. A rise in revenue from packaging products aids growth by 43%. EBITDA margin declines marginally by 40 bps YoY owing to rise in employee benefits, fuel and other expenses. The company shows up in a screener of stocks with negative to positive growth in sales and profit with strong price momentum.

• ICICI Securities upgrades the rating on AIA Engineering to ‘Buy’ from ‘Add’ and raises the target price to Rs 3,258 from Rs 2,994, implying an upside of 22.5%. The brokerage is positive about its prospects given the scale-up in volume, capacity expansion, strong business moat and robust balance sheet. It expects the firm’s revenue to grow at a CAGR of 17.8% over FY22-25.

• ACC, Max Financial Services and PCBL's weekly average delivery volumes rise ahead of their Q3 results tomorrow.

• Hinduja Global Solutions is rising as its board of directors approves the buyback of 60 lakh shares for Rs 1,700 each. The company has fixed March 6 as the record date to determine the shareholders eligible for the buyback.

• Gautam Saraogi, CEO of Go Fashion (India), says the company’s gross margin is at 62% in Q3FY23. He expects volume growth of 5% for store sales.

  #OnCNBCTV18 | Expect gross margin around 60% on an annualised basis and volume growth of 4-5% in same store sales growth going forward. Target to increase online sales to 5% & take it up to 8-9% in 2-3 years, says Gautam Saraogi of Go Fashion pic.twitter.com/bXAnXRqGQe

  — CNBC-TV18 (@CNBCTV18Live) January 30, 2023

• HFCL is rising as it bags orders worth Rs 206.7 crore from Reliance Projects & Property and Reliance Retail to supply optical fibre cables. The company shows up in a screener for stocks with consistently high returns over the past 5 years.

• Bajaj Finance, Ratnamani Metals & Tubes and Sun Pharma are trading above their second resistance of R2 level in a volatile market today.

• Genus Power Infrastructures wins order worth Rs 2,855.96 crore for appointment of advanced metering infrastructure service provider, including design of AMI system with supply, installation and commissioning of smart prepaid meters, DT metering, and HT & feeder metering level energy accounting.

• Morgan Stanley prefers the Indian cement sector over steel. The brokerage maintains its ‘Overweight’ stance on Ultratech Cement and Shree Cements, and ‘Underweight’ on ACC, Jindal Steel & Power and JSW Steel.

  #BrokerageRadar | @MorganStanley on India Materials: Expect domestic demand to remain strong in 2023; Favour Cement over steel#StockMarket #StocksToWatch pic.twitter.com/Nk7btZCYqs

  — ET NOW (@ETNOWlive) January 30, 2023

• Power stocks like Adani Transmission, Adani Green Energy, Adani Power and Power Grid Corp of India are falling in trade. The broader sectoral index BSE Power is also trading in the red.

• Bharat Electronics’ Q3FY23 net profit goes up 2.8% YoY to Rs 613 crore, with revenue rising 11%. However, the cost of materials consumed inches up 10.8% YoY, affecting EBITDA margins which fell 160 bps YoY. It shows up in a screener of stocks with improving RoE for the past two years.

• Vedanta’s Q3FY23 net profit falls 41% YoY to Rs 2,464 crore, with revenue rising marginally. This is because of weak commodity prices due to drop in zinc and aluminium prices in Q3. However, the company has announced an interim dividend of Rs 12.5 per share for FY23.

• Bajaj Finance’s Q3FY23 net profit rises 40% YoY to Rs 2,973 crore on the back of increasing net interest income by 24% YoY and a fall in provisions and contingencies. However, asset under management (AUM) is up only 27% YoY due to the slow growth of the mortgage portfolio and B2B loan disbursements. The NBFC shows up in a screener with quarterly growth in net profit and margins.

Riding High:

Largecap and midcap gainers today include Indus Towers Ltd. (146.95, 7.26%), FSN E-Commerce Ventures Ltd. (133.85, 6.31%) and Vodafone Idea Ltd. (6.80, 6.25%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (2,342.40, -20.00%), Adani Green Energy Ltd. (1,189.00, -20.00%) and Adani Transmission Ltd. (1,708.20, -15.19%).

Movers and Shakers

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

Top high volume gainers on BSE included Aegis Logistics Ltd. (373.60, 11.92%), Adani Enterprises Ltd. (2,892.85, 4.76%) and Ratnamani Metals & Tubes Ltd. (2,092.30, 4.63%).

Top high volume losers on BSE were Adani Green Energy Ltd. (1,189.00, -20.00%), Adani Transmission Ltd. (1,708.20, -15.19%) and EID Parry (India) Ltd. (484.70, -8.62%).

Vedant Fashions Ltd. (1,116.75, -3.63%) was trading at 7.9 times of weekly average. Thermax Ltd. (1,900.85, -0.24%) and Bharat Electronics Ltd. (88.95, -5.67%) were trading with volumes 4.8 and 4.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52-week highs, while 21 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (373.60, 11.92%), Carborundum Universal Ltd. (965.55, 2.92%) and Sun Pharmaceutical Industries Ltd. (1,051.70, 0.80%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,708.20, -15.19%) and Biocon Ltd. (233.45, -0.87%).

14 stocks climbed above their 200 day SMA including Easy Trip Planners Ltd. (52.05, 5.90%) and NLC India Ltd. (78.15, 4.62%). 31 stocks slipped below their 200 SMA including Adani Total Gas Ltd. (2,342.40, -20.00%) and GAIL (India) Ltd. (94.95, -4.24%).