Trendlyne Analysis

Indian indices closed in the red on a volatile day of trade. The Nifty 50 fell nearly 90 points and closed below the 17,800 mark. The Adani group’s stocks extended their sell-off today after rating agency Moody's warned on Friday that the group may struggle to raise capital, and S&P cut its outlook on two group companies. The Adani group is looking to prepay its debt of Rs 7,000-8,000 crore from its loans against shares (LAS) portfolio to calm the sell-off in its share prices.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. BSE Telecom index rose sharply, led by Vodafone Idea, which jumped over 20% as the Centre directed the company to convert interest due on deferred spectrum auction installments and revenue dues into equity for approximately Rs 16,113.2 crore.

Major Asian indices closed in the red - Chinese stocks were down after the US shot down what it said was a Chinese spying balloon in American skies. The sole exception was Japan’s Nikkei 225, which closed higher for a third consecutive day amid expectations that the Bank of Japan will maintain its extremely accommodative monetary policy.

European markets trade lower, taking cues from US indices’ futures. Investors assess key central bank decisions, strong US job additions and corporate earnings. Crude oil prices trade higher after falling over 7% in the previous week on fears of slowing global economic growth.

Nifty 50 closed at 17,764.60 (-89.5, -0.5%), BSE Sensex closed at 60,506.90 (-335.0, -0.6%) while the broader Nifty 500 closed at 14,934.15 (-28.2, -0.2%)

Market breadth is in the green. Of the 1,975 stocks traded today, 1,040 were on the uptrend, and 873 went down.

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

• Britannia Industries beats Tata Consumer Products in YoY and QoQ net profit growth, PE Ratio and one-year price change. But it lags in price-to-book value, three-year price change, QoQ revenue growth and broker average target upside.

• Asian Paints sees seven broker target price and one recommendation downgrades in the past month, while Bajaj Finance, Avenue Supermarts and Bandhan Bank see five broker target price downgrades.

• Credit rating agency Fitch Ratings expects Indian banks’ net interest margin (NIM) to contract slightly by around 10 bps in FY24 amid deposit rate hikes taken by the banks.

  The net interest margin for Indian lenders will come under pressure during FY24 as #banks hike deposit rates to attract funds to support sustained high loan growth, Fitch Ratings said in a report.
  
  Find out more?https://t.co/BWwSr9jwgF#India #Banking #Loans #InterestRate

  — Moneycontrol (@moneycontrolcom) February 6, 2023

• Easy Trip Planners is rising as its Q3FY23 net profit rises 4.2% YoY to Rs 41.7 crore and revenue surges by 57.3% YoY driven by robust volume growth in the flight and hotels segments. The stock shows up in a screener for companies with zero promoter pledges.

• Commercial Services & Supplies, Utilities and Transportation sectors fall more than 15% over the past month.

• Rakesh Khanna, Managing Director & CEO of Orient Electric, says e-commerce contributes 10% to the total sales of the company and expects it to improve to 20% in a year. He adds that the company focuses on products with high growth potential.

  #OnCNBCTV18 | e-commerce at 10% of sales, expect it to be 20% in a year. Lighting segment performance is weak. We are gaining traction in switches & switchgears business, says Rakesh Khanna of Orient Electric pic.twitter.com/uQoaoMKg3w

  — CNBC-TV18 (@CNBCTV18Live) February 6, 2023

• ICICI Securities upgrades its rating on Mahindra Lifespace Developers to ‘Buy’ from ‘Add’ and increases the target price to Rs 483 from Rs 461. This implies an upside of 21.5%. The brokerage anticipates the company’s sales growth momentum to accelerate on the back of new project launches and a robust business development pipeline.

• Indian Oil Corp decides to ink a memorandum of understanding with LanzaJet to produce sustainable aviation fuel at its Panipat refinery, according to reports.

• One97 Communications (Paytm) is rising as its Q3FY23 net loss narrows on a YoY basis to Rs 392 crore from Rs 778.4 crore. Revenue rises 41.6% YoY on the back of growth in merchant subscriptions, loan distribution and payment services. The stock shows up in a screener for companies with revenues increasing sequentially over the past four quarters

• Varun Beverages' Q3FY23 net profit rises 353.28% YoY to Rs 74.8 crore in a seasonally weak quarter, while its revenue increases 27.9% YoY. Realisation per unit improves with price hikes, rationalised discounts & incentives and improved product mix. The stock shows up in a screener for companies with consistent high returns over five years.

• Timken India, Relaxo Footwears and VIP Industries are trading below their third support or S3 level as the market trades lower.

• Metal stocks like Adani Enterprises, Jindal Steel & Power, Hindustan Zinc and JSW Steel are falling in trade. The broader sectoral index Nifty Metal is also trading in the red.

• InterGlobe Aviation's Q3FY23 net profit rises close to 11x to Rs 1,422.6 crore and revenue grows 62.6%. The strong performance is a result of robust demand for air travel, says Pieter Elbers, Chief Executive Officer. The stock shows up in a screener for companies with FII/FPI or Institutions increasing their shareholding.

• Retail sales of the automotive industry rise 13.6% YoY to 18.3 lakh units in January, shows data from the Federation of Automotive Dealers' Association. Two-wheeler and car retail sales are up 10.1% and 21.9% YoY respectively.

  #FADA releases January 2023 vehicle retail data, total sales rise 13.6% on a YoY basis
  
  Alert: Sales rise in all vehicle segments in January 2023 pic.twitter.com/s1TYmLF40U

  — CNBC-TV18 (@CNBCTV18Live) February 6, 2023

• Telecom stocks like Vodafone Idea, Indus Towers, GTL Infrastructure, Reliance Communications and Tata Communications are rising in trade. The broader sectoral index S&P BSE Telecom is also trading in the green.

• Vodafone Idea surges as the government converts adjusted gross revenue dues of the company into equities for approx Rs 16,113.2 crore.

• Indian rupee depreciates to 82.41 from the previous close of 81.83 against the US dollar in early trade today.

  #Rupee Check | Rupee opens nearly 60 paise weaker from Friday’s close of 81.83 against US Dollar#RupeeVsDollar #USDINR #INR #USD #Dollar #USDollar pic.twitter.com/brNeZ3vdZv

  — CNBC-TV18 (@CNBCTV18Live) February 6, 2023

• ITC's Q3FY23 net profit rises 23.4% YoY to Rs 5,006.6 despite its revenue falling 2.6% YoY. The increase is due to a 60.5% fall in purchases of stock-in-trade expense. The stock shows up in a screener for companies with increasing net profits sequentially for the past four quarters.

• State Bank of India’s Q3FY23 net profit rises 68.5% YoY to Rs 14,205.3 crore on the back of healthy credit expansion and robust net interest income (NII) growth. Revenue increases by 24.3% YoY led by strong growth in retail and corporate banking operations. The stock shows up in a screener for companies with quarterly net profit growth and increasing net profit margin YoY.

• Tata Power’s Q3FY23 net profit jumps 121.9% YoY to Rs 945 crore and revenue rises 29.5% YoY. This growth is driven by improved realisation, higher power generation and increased distribution sales. The stock shows up in a screener for companies with net profits rising sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (8.25, 20.44%), Indus Towers Ltd. (162.05, 12.81%) and Adani Ports & Special Economic Zone Ltd. (545.45, 9.34%).

Downers:

Largecap and midcap losers today include Adani Transmission Ltd. (1,256.45, -10.00%), Adani Power Ltd. (182.35, -5.00%) and Adani Wilmar Ltd. (379.95, -5.00%).

Movers and Shakers

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

Top high volume gainers on BSE included Vodafone Idea Ltd. (8.25, 20.44%), Procter & Gamble Health Ltd. (4,702.70, 14.63%) and Elgi Equipments Ltd. (412.35, 8.31%).

Top high volume losers on BSE were Privi Speciality Chemicals Ltd. (908.45, -7.07%), Multi Commodity Exchange of India Ltd. (1,425.15, -5.56%) and Mahindra Logistics Ltd. (430.15, -3.45%).

Zydus Lifesciences Ltd. (470.15, 8.17%) was trading at 8.5 times of weekly average. Anupam Rasayan India Ltd. (602.90, 4.48%) and Mahindra & Mahindra Financial Services Ltd. (261.85, 7.49%) were trading with volumes 6.2 and 5.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks hit their 52-week highs, while 14 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (470.15, 8.17%), Carborundum Universal Ltd. (999.05, 0.77%) and IDFC Ltd. (91.55, 3.39%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,256.45, -10.00%) and BASF India Ltd. (2,315.85, -1.31%).

22 stocks climbed above their 200 day SMA including Procter & Gamble Health Ltd. (4702.70, 14.63%) and Cholamandalam Financial Holdings Ltd. (629.95, 4.89%). 14 stocks slipped below their 200 SMA including Poly Medicure Ltd. (827.50, -4.11%) and LIC Housing Finance Ltd. (388.20, -2.88%).