Trendlyne Marketwatch
Trendlyne Marketwatch
03 Feb 2023, 03:45PM
Market closes higher, ASM move limits losses for Adani stocks

Trendlyne Analysis

Nifty 50 gained momentum in the last leg of the trading session and closed 1.3% higher than Thursday’s closing levels. NSE has put Adani Enterprises, Adani Ports and Ambuja cements in ASM limiting further downside.

India’s services purchasing managers index or PMI data released today indicated the Indian services sector expanded in January but at a slower pace compared to December. PMI stood at 58.5 in December, and 57.2 in January (PMI over 50 signifies expansion). Nifty Smallcap 100 and Nifty Midcap 100 close in the red, despite the benchmark index closing in the green. Nifty Auto and Nifty Bank close higher than Thursday’s levels. Nifty IT closes flat, despite the tech-heavy Nasdaq 100 index closing 3.56% higher on Thursday.

In international markets, S&P 500 and Dow Jones futures trade lower, dragged by Apple, Google and Amazon. US markets are anticipating the labor department’s job report later today. Brent crude oil futures are heading into the first session of weekly loss after gaining in the last two weeks. European indices trade higher.

Nifty 50 closed at 17,854.05 (243.7, 1.4%), BSE Sensex closed at 60,841.88 (909.6, 1.5%) while the broader Nifty 500 closed at 14,962.35 (123.0, 0.8%)

Market breadth is in the red. Of the 1,958 stocks traded today, 649 were on the uptrend, and 1,260 went down.

  • Relative strength index (RSI) indicates that stocks like ITC, Ratnamani Metals & Tubes, Persistent Systems and Jindal Stainless are in the overbought zone.

  • Jubilant Pharmova is falling as it posts a net loss of Rs 15.7 crore in Q3FY23 despite revenue rising by 18.1% YoY. Hari S Bhartia, Managing Director said that the profitability was lower in Q3 due to the generator supply outage, lower API production and low volumes in drug discovery services.

  • PSU Banks like Bank of Baroda, Canara Bank, State Bank of India, Bank of India and Punjab & Sind Bank are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

  • Divi’s Laboratories falls over 14% in trade as its Q3FY23 net profit declines 66% YoY to Rs 306.8 crore and revenue falls by 31.5% YoY due to a sharp decline in covid revenue. On the other hand, Zydus Lifesciences' Q3 net profit rises 24.5% YoY to Rs 622.9 crore led by robust growth in revenue from the pharmaceuticals segment.

  • Bank of Baroda is up more than 3% in trade today. Its Q3FY23 net profit surges 75.4% YoY to Rs 3,852.7 crore as net interest income rises 26.5%. Asset quality for the bank improves as gross NPA and net NPA ratios fall. The stock ranks high on the Trendlyne Checklist score.

  • Abhijit Roy, Managing Director and CEO of Berger Paints, says demand will pick up and the growth rate will be back to double digits in Q4FY23. The company’s profit declined 20.5% YoY to Rs 207.1 crore in Q3.

  • TeamLease Services' board approves buyback of up to 3.28 lakh fully paid equity shares at Rs 3,050 per share aggregating to Rs 100 crore, subject to shareholder approval.

  • Shree Cements, Samvardhana Motherson International and Cummins rise 10.7%, 4.8% and 2.7% respectively over the past week, ahead of their Q3FY23 results on February 8.

  • Credit rating agency Fitch Ratings says that there will be no immediate impact on rated Adani Group companies as a consequence of the report published by Hindenburg Research. It expects no change in the cash flow forecast.

  • Foreign institutional investors pull out Rs 9,286.5 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options receive the highest inflow of Rs 12,542.7 crore from foreign investors. Mutual funds invest a total of Rs 3,386.5 crore in the market.

  • Titan is rising as its Q3FY23 net profit grows by 8.8% QoQ to Rs 904 crore, but falls by 10% YoY. Rise in employee benefit expenses, finance costs and other expenses caused the EBITDA margin to decline by 200 bps QoQ. CK Venkataraman, Managing Director of the company said, "The quarter witnessed strong festive consumer demand and we delivered healthy double-digit growth over a strong base of Q3FY22."

  • Citigroup maintains its ‘Buy’ rating on PB Fintech with a target price of Rs 760. The brokerage says that the company has a low contribution (around 20-25%) of ULIP in its product mix. It adds that the EoM guidelines will reduce the overhang of insurance commission.

  • Axis Direct upgrades its rating on KEC International to ‘Buy’ from ‘Hold’ and increases the target price to Rs 515 from Rs 405. This indicates an upside of 9.2%. The brokerage turns optimistic about the company’s prospects on the back of robust order inflows, proven execution prowess and a well-diversified order book. It expects the firm’s revenue to grow at a CAGR of 12.7% over FY23-25.

  • Commodity trading & distribution, marine port & services and utilities (non-electrical) industries fall more than 31% in the past week.

  • TVS Motor Co’s arm TVS Motor (Singapore) is set to acquire 31.4 lakh series AA shares in the electric mobility company Ion Mobility for $9.5 million (Rs 77.9 crore). The company believes this investment will increase its presence in the electric vehicle market in South-East Asia.

  • India’s January Services PMI falls to 57.2 compared to 58.5 in December 2022 but remains above the 50 mark for the 18th consecutive month.

  • NSE places Adani Enterprises, Adani Ports and Ambuja Cements under short-term additional surveillance measures (ASM). Under the ASM list stocks are surveyed on concerns of price, volume variation or volatility. Reports suggest that Adani Enterprises was removed from the Dow Jones Sustainability Index.

  • Tata Consumer Products’ Q3FY23 net profit is up 32.7% YoY to Rs 351.8 crore, led by healthy growth in its India business segment. Revenue increases 8.3% YoY on the back of strong growth in the food segment from both pricing and volume growth. Sunil D’Souza, Managing Director and CEO of Tata Consumer Products said “We delivered strong earnings growth this quarter...in an extremely challenging macroeconomic environment.”

  • SBI Life Insurance's management says that its share of the business of non-linked policies with a premium above Rs 5 lakh is less than 2% of APE for 9MFY23 and the new policies of the Union Budget are unlikely to cause a significant impact. However, HDFC Life has an exposure of 10-12% of its total APE for non-linked products. According to the Union Budget, non-linked products with a premium above Rs 5 lakh will now be taxable.

  • Dabur is falling as its Q3FY23 net profit is down by 5.4% YoY to Rs 475.94 crore. CEO Mohit Malhotra says that cost and inflationary environment, especially in rural areas have dented the earnings. Raw material cost for the company rose 6.2% YoY in Q3. Revenue is up as all segments like consumer care, food and retail report growth.

  • Apollo Tyres’ Q3FY23 net profit rises 30.7% YoY to Rs 292.1 crore and revenue grows by 12.5% YoY to Rs 6,422.8 crore on the back of robust sales in the domestic market. The stock shows up in a screener for companies with net profits increasing sequentially over the past two quarters.

Riding High:

Largecap and midcap gainers today include Adani Ports & Special Economic Zone Ltd. (498.85, 7.87%), Titan Company Ltd. (2,463.10, 6.72%) and Bank of Baroda (163.60, 6.20%).

Downers:

Largecap and midcap losers today include Divi's Laboratories Ltd. (2,884.35, -11.71%), Adani Transmission Ltd. (1,396.05, -10.00%) and Adani Green Energy Ltd. (935.90, -10.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Mahindra Lifespace Developers Ltd. (380.05, 8.80%), Aavas Financiers Ltd. (1,998.65, 7.37%) and EPL Ltd. (152.75, 3.35%).

Top high volume losers on BSE were Divi's Laboratories Ltd. (2,884.35, -11.71%), Crompton Greaves Consumer Electricals Ltd. (305.15, -8.18%) and Welspun Corp Ltd. (192.15, -7.91%).

Jamna Auto Industries Ltd. (108.15, 3.15%) was trading at 6.5 times of weekly average. eClerx Services Ltd. (1,495.90, 2.97%) and Jubilant Pharmova Ltd. (343.65, -1.28%) were trading with volumes 4.4 and 4.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks made 52-week highs, while 28 stocks hit their 52-week lows.

Stocks touching their year highs included - Aegis Logistics Ltd. (367.20, 2.38%), Apollo Tyres Ltd. (330.20, -0.38%) and Blue Star Ltd. (1,358.25, 2.14%).

Stocks making new 52 weeks lows included - ACC Ltd. (1,926.75, 4.64%) and Adani Ports & Special Economic Zone Ltd. (498.85, 7.87%).

15 stocks climbed above their 200 day SMA including Titan Company Ltd. (2,463.10, 6.72%) and Orient Electric Ltd. (283.10, 4.00%). 22 stocks slipped below their 200 SMA including Hindustan Copper Ltd. (107.50, -7.80%) and Hikal Ltd. (330.40, -6.07%).

 
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