Trendlyne Marketwatch
Trendlyne Marketwatch
08 Feb 2023
Market closes higher, RBI increases its FY23 GDP growth estimate to 7%

Trendlyne Analysis

Nifty 50 closed at 17,871.70 (150.2, 0.9%), BSE Sensex closed at 60,663.79 (377.8, 0.6%) while the broader Nifty 500 closed at 15,028.30 (126.1, 0.9%). Market breadth is in the green. Of the 1,951 stocks traded today, 1,169 were on the uptrend, and 717 went down. The Reserve Bank of India (RBI) raised the key repo rate by an expected 25 bps to 6.5% during the Monetary Policy Committee (MPC) meeting. It also increased its FY23 gross domestic product (GDP) growth estimate from 6.8% to 7%.

Adani Enterprises extended its gains from Tuesday and rose over 20%. However, Adani Total Gas and Adani Green Energy continued their fall and closed at their lower circuits. Adani Wilmar hit its upper circuit post its Q3 results announcement. Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal rose over 3.8% and closed in the green while Nifty FMCG and Nifty Realty closed flat.

In international markets, major Asian indices closed mixed. US indices futures traded marginally lower as investors assess the US Fed Chairman Jerome Powell's speech. European stocks traded higher amid mixed global cues. Crude oil futures recovered from their day’s lows and traded higher due to an mproving economic outlook amid falling inflation.

  • Relative strength index (RSI) indicates that stocks like Procter & Gamble Health, ZF Commercial Vehicle Control Systems India, Persistent Systems and Mahindra & Mahindra Financial Services are in the overbought zone.

  • PB Fintech (Policybazaar) is one of the high-volume top gainer stocks rising more than 6% in trade. It ranks medium on the Trendlyne Checklist score. The consensus recommendation from 10 analysts for the stock is ‘Buy’.

  • One97 Communications (Paytm) is rising as Macquarie upgrades its rating to ‘Outperform’ and raises the target price by 80% to Rs 800. The brokerage says the quality of the company’s loans (post-paid and personal loans) is improving. It adds that the firm has controlled its overall expenses and charges.

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

  • Astral's board recommends a bonus issue of equity shares in the ratio of 1:3 and fixes March 14 as the record date, subject to approval from members of the company.

  • Shree Cements is falling as its Q3FY23 net profit declines 41.5% YoY to Rs 282.1 crore due to higher expenses. However, revenue grows 19.4% YoY as volume sees healthy growth on a YoY basis. The stock shows up in a screener for companies with declining net cash flow.

  • Godrej Consumer Products, Blue Star and Bajaj Finserv outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Talking about the banking sector’s exposure to Adani Group companies, RBI Governor Shaktikanta Das says that Indian banks are strong and resilient and won't be affected by a case like this. Deputy Governor MK Jain adds that domestic banks' exposure to Adani Group is “insignificant”.

  • ICICI Direct upgrades the rating on Elgi Equipments to ‘Buy’ from ‘Hold’ with a target price of Rs 500, implying an upside of 18.1%. The brokerage is positive about the firm’s prospects given an increase in high-margin orders, customer additions and a robust balance sheet. It expects the company’s net profit to grow at a CAGR of 26.1% over FY23-25.

  • Bajaj Finance, LTIMindtree and AstraZeneca Pharma trade above their second resistance or R2 level.

  • Ambuja Cements is rising as its Q3FY23 net profit surges 49.5% YoY to Rs 434.4 crore. Revenue also increases 3.7% YoY with growth in sales volumes and realizations. Raw material and power & fuel costs fall on a QoQ basis. The stock shows up in a screener with improving RoCE for the past two years.

  • RBI’s Monetary Policy Committee projects India’s GDP to grow 5.8% during Jan-March and 6.4% in FY24.

  • Coal and Telecom Services sectors are falling in trade. Meanwhile, Commercial Services & Supplies, Transportation and Hardware Technology & Equipment sectors rise more than 3% today.

  • IT stocks like Coforge, Mphasis, Infosys, LTIMindtree and Tata Consultancy Services are rising in trade. All constituents of the broader sectoral index Nifty IT are also trading in the green.

  • The Reserve Bank of India (RBI) forecasts India’s CPI inflation or retail inflation to be at 6.5% and 5.3% for FY23 and FY24 respectively.

  • Tata Consultancy Services is rising as it bags a contract worth 600 million pounds (Rs 53,227 crore) from the UK-based Phoenix Group. The contract pertains to digitally transforming the life insurance business of ReAssure, a subsidiary of the group.

  • NHPC's Q3FY23 net profit falls 14.2% YoY to Rs 692.7 crore as deferred tax expense rises. Revenue also improves 19.8% YoY. The stock shows up in a screener for companies with increasing profits every quarter for the past two years.

  • Fine Organic Industries, Life Insurance Corp and Alkyl Amines Chemicals weekly average delivery volumes rise ahead of their Q3FY23 results tomorrow.

  • The Reserve Bank of India (RBI) raises repo rate by 25 bps to 6.5% during the Monetary Policy Committee (MPC) meeting.

  • Deepak Nitrite is falling as its Q3FY23 net profit declines 13.8% YoY to Rs 209.1 crore due to higher raw material costs, employee expenses and power & fuel expenses. Revenue rises by 15.6% YoY led by healthy growth in its advanced intermediates segment. The stock shows up in a screener for companies with declining net profits for the past two quarters.

  • Hero MotoCorp is falling despite reporting a net profit rise of 3.2% YoY to Rs 726 crore in Q3FY23. Net profit rises despite a weak demand scenario, especially from rural areas. CFO Niranjan Gupta says that the company’s cost-cutting programmes should improve profitability. The stock ranks medium on the Trendlyne Checklist score.

  • Bharti Airtel’s Q3FY23 net profit falls 26% QoQ to Rs 1,588.2 crore, due to higher operating expenses and license fee-related provisions. However, revenue grows by 19.9% QoQ on ARPU growth. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.

Riding High:

Largecap and midcap gainers today include Adani Enterprises Ltd. (2,164.25, 20.04%), One97 Communications Ltd. (675.95, 14.84%) and Zomato Ltd. (54.30, 10.03%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (1,391.00, -5.00%), Adani Green Energy Ltd. (802.45, -5.00%) and Power Grid Corporation of India Ltd. (212.00, -2.24%).

Movers and Shakers

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

Top high volume gainers on BSE included One97 Communications Ltd. (675.95, 14.84%), Zomato Ltd. (54.30, 10.03%) and Symphony Ltd. (1,047.85, 8.56%).

Top high volume losers on BSE were Navin Fluorine International Ltd. (4,185.05, -2.25%) and Privi Speciality Chemicals Ltd. (875.95, -1.00%).

Thermax Ltd. (2,090.50, 4.55%) was trading at 23.8 times of weekly average. 3M India Ltd. (2,2950.00, 0.22%) and GlaxoSmithKline Pharmaceuticals Ltd. (1,279.00, 3.13%) were trading with volumes 11.3 and 7.4 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 10 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Zydus Lifesciences Ltd. (474.00, -1.14%), Mahindra & Mahindra Financial Services Ltd. (269.05, 0.60%) and Jindal Stainless (Hisar) Ltd. (483.05, 0.68%).

Stocks making new 52 weeks lows included - IFB Industries Ltd. (835.00, 3.78%) and Sanofi India Ltd. (5,270.00, -1.11%).

23 stocks climbed above their 200 day SMA including One97 Communications Ltd. (675.95, 14.84%) and CreditAccess Grameen Ltd. (956.60, 6.13%). 6 stocks slipped below their 200 SMA including Bharat Dynamics Ltd. (850.45, -4.33%) and Tejas Networks Ltd. (544.80, -1.74%).

 
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