Trendlyne Analysis

Nifty 50 closed flat recovering from the day’s low on a volatile day of trade. However, other major Asian indices closed in the green except for China’s Han Seng index, which closed lower. European indices traded in the green amid positive global cues. In a major surprise, Adani Enterprises called off its fully subscribed Follow on Public Offer (FPO). Adani Enterprises' FPO floor price was fixed at Rs 3,112 and Adani Enterprises stock closed on Wednesday at Rs 1,921. On Wednesday, US stocks closed higher after the Fed’s widely expected rate hike of 25 bps. S&P 500 closed 1.05% higher, while the Dow Jones closed flat on Wednesday. Brent crude oil futures traded in the green and are heading into a third straight weekly gain.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty FMCG and Nifty Media closed higher than Wednesday’s closing levels. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq 100 closing 2.2% higher on Wednesday.

Nifty 50 closed at 17,610.40 (-5.9, 0.0%), BSE Sensex closed at 59,932.24 (224.2, 0.4%) while the broader Nifty 500 closed at 14,839.40 (-8.3, -0.1%)

Market breadth is in the red. Of the 1,957 stocks traded today, 853 were in the positive territory and 1,045 were negative.

• Hindustan Unilever beats Godrej Consumer Products in YoY revenue and profit growth, one-year price change and MF holdings. But lags in QoQ revenue growth, PE ratio and broker average rating.

• Max Healthcare’s Q3FY23 net profit rises 17.2% YoY to Rs 222.4 crore and revenue grows by 16.9% YoY. This growth is driven by improving occupancy rates and average revenue per occupied bed. The stock shows up in a screener for companies with high TTM EPS growth.

• Reports suggest that InterGlobe Aviation (Indigo) is likely to post a profit in Q3FY23 as air traffic improves for both international and domestic travel. Also, the correction in oil prices and price hikes may drive an earnings boost for the airline, which announces results tomorrow. It ranks high on the Trendlyne checklist score and shows up in a screener of stocks with consistent price growth.

• Zydus Wellness is falling as its Q3FY23 net profit declines 16.1% YoY with rising cost of raw materials YoY. Revenue rises 7.1% YoY to Rs 415.6 crore. The stock shows up in a screener for companies with declining net cash flows.

• HDFC trades lower in a weak market. Its Q3FY23 net profit rises 13.2% YoY to Rs 3,690.8 crore, with net interest income up by 13%. Total assets under management grew with individual loan books rising by 18% YoY. The management says that demand for home loans remains decent with growth in both the mid-income and high-end properties segment.

• Shashank Srivastava, Senior Executive Officer (Marketing & Sales) of Maruti Suzuki, says production levels will depend on the availability of semiconductors and expects the shortage to continue. He adds that softening of commodity prices has helped improve earnings in Q3, and the trend is likely to continue in Q4.

  #Motown | Shashank Srivastava of Maruti Suzuki India says
  
  -Q3 was a good quarter for the company
  -Softening of commodity prices has aided Q3
  -Commodity prices will remain soft in Q4@Maruti_Corp @shashankdrives @_sherylld @vinnii_motiwala #StockMarket #AutoNews pic.twitter.com/9z2YB5Z3AN

  — ET NOW (@ETNOWlive) February 2, 2023

• JK Cement, Balaji Amines and Tata Steel's weekly average delivery volumes rise ahead of their Q3FY23 results on Monday.

• Metal & Mining stocks like Jindal Steel & Power, Adani Enterprises, Tata Steel, MOIL and Vedanta are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

• Kalpataru Power Transmissions secures new orders across segments worth Rs 2,456 crore. It wins orders in residential & building construction, railway and oil & gas in India. It has also bagged transmission & distribution orders in India and overseas.

• Ion Exchange (India) receives a letter of award from Indian Oil Corp worth Rs 726.13 crore for work, operation and maintenance of a water treatment plant as part of the Panipat refinery expansion project.

• ICICI Direct upgrades its rating on GAIL India to ‘Buy’ from ‘Hold’ and raises the target price to Rs 115 from Rs 95. This indicates an upside of 21.1%. The brokerage is positive about the company’s prospects as it expects an increase in gas transmission and trading volumes along with a decline in gas prices. It anticipates the firm’s revenue to grow at a CAGR of 19.9% over FY22-25.

• In a video address, Gautam Adani, Chairman of Adani Group, said that the decision to call off the Adani Enterprises’ Rs 20,000 crore FPO was due to heightened volatility in the market, and to "protect the interest of its investors". He added that they would be reviewing their capital market strategy once prices stabilize.

• RailTel Corp is rising on a work order win from the State Bank of India for providing 4G connectivity for offsite ATMs, over five years. The cost of the project is Rs 253.35 crore. The company shows up in a screener of broker upgrades in the past three months.

• FMCG stocks like ITC, Britannia Industries, Radico Khaitan and Hindustan Unilever are rising in trade. The broader sectoral index Nifty FMCG is also trading in the green.

• B Thiagarajan, Managing Director of Blue Star, says the Budget announcements favour the industry. He says the company will focus on expanding its margin in FY24.

  #OnCNBCTV18 | #Budget announcements were very strong for our industry. Focus will be on #margin expansion in #FY24. Expect 20% #growth in FY24, says B Thiagarajan of Blue Star pic.twitter.com/Lt5eQlbVUV

  — CNBC-TV18 (@CNBCTV18Live) February 2, 2023

• Ashok Leyland is rising as its Q3FY23 net profit jumps by 362.5% YoY to Rs 319 crore and revenue surges 56.2% YoY. This growth comes on the back of a strong jump in sales volume. Medium and heavy commercial vehicle sales volume increases 69% YoY and light commercial vehicles sales volume by 15% YoY. The stock shows up in a screener for companies with decreasing promoter pledges.

• Mahesh Nandurkar, Head of Research and MD at Jefferies India, says the Union Budget is well-balanced. He adds that the 33% rise in Capex spending beat expectations.

  #Budget2023WithETNOW | The Union Budget verdict! Mahesh Nandurkar of Jefferies joins in decode #Budget2023. Watch! @mahnandurkar @Jefferies @nikunjdalmia @AyeshaFaridi1 @avannedubash pic.twitter.com/95KgqPNnZX

  — ET NOW (@ETNOWlive) February 2, 2023

• Promoter Biocon sells a 10% stake (4 crore shares) in Syngene International for Rs 2,240 crore in a bulk deal yesterday.

• Ashish Kacholia sells stake in SG Finserve to below 1% in Q3FY23 as against 1.1% held in Q2FY23.

• Tata Chemicals Q3FY23 net profit rises 25.7% YoY to Rs 391 crore as revenue increases 32% YoY. Revenue from basic chemistry products increased however specialty products reported a marginal fall. Input costs are still high with power and fuel costs surging 56% in Q3. It shows up in a screener of companies with low debt.

• Britannia’s Q3FY23 net profit surges 2.5X YoY to Rs 932.4 crore because of an exceptional gain of Rs 359 crore with regard to the joint venture with Bel SA for its cheese business. As inflation moderated, the company’s operating margin improved by 330 bps YoY to 18.4%. The stock is trading near its 52-week high and shows up in a screener of increasing revenue for the past two quarters.

Riding High:

Largecap and midcap gainers today include Ambuja Cements Ltd. (352.55, 5.52%), IDFC First Bank Ltd. (59.60, 5.49%) and ITC Ltd. (378.60, 4.76%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,565.25, -26.70%), Adani Transmission Ltd. (1,551.15, -10.00%) and Adani Total Gas Ltd. (1,707.70, -10.00%).

Volume Rockets

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

Top high volume gainers on BSE included Welspun India Ltd. (70.00, 8.78%), Clean Science & Technology Ltd. (1,481.90, 7.66%) and Bombay Burmah Trading Corporation Ltd. (942.75, 7.48%).

Top high volume losers on BSE were TCI Express Ltd. (1,447.20, -9.34%), Birlasoft Ltd. (272.00, -8.11%) and EPL Ltd. (147.80, -5.44%).

Galaxy Surfactants Ltd. (2,414.20, 0.54%) was trading at 9.0 times of weekly average. Sapphire Foods India Ltd. (1,176.10, -5.22%) and ICICI Securities Ltd. (489.50, 1.27%) were trading with volumes 8.8 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks took off, crossing 52-week highs, while 23 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,329.85, 4.96%), Britannia Industries Ltd. (4,573.05, 4.62%) and ITC Ltd. (378.60, 4.76%).

Stocks making new 52 weeks lows included - Adani Ports & Special Economic Zone Ltd. (462.45, -6.60%) and Adani Transmission Ltd. (1,551.15, -10.00%).

16 stocks climbed above their 200 day SMA including Bombay Burmah Trading Corporation Ltd. (942.75, 7.48%) and KNR Constructions Ltd. (257.00, 6.62%). 28 stocks slipped below their 200 SMA including UPL Ltd. (696.40, -6.16%) and Sapphire Foods India Ltd. (1,176.10, -5.22%).