Trendlyne Analysis

Nifty 50, BSE Sensex and the broader Nifty 500 closed at 17,893.45 (21.8, 0.1%), 60,806.22 (142.4, 0.2%) and 15,030.10 (1.8, 0.0%) respectively, while the market breadth remained horizontal. Of the 1,947 stocks traded today, 895 were gainers and 983 losers. 

The Adani group will prepay a USD 500 million loan due next month, as several banks steered clear of the refinancing option. Adani group stocks closed in deep red, following the MSCI announcement that it will be making changes to the status of the group's stocks in the index. Meanwhile, France’s Total Energies put its USD 50 billion deal with the Adani group on hold.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, following the benchmark index. The Nifty Metal closed lower as heavyweight Adani Enterprises fell on the back of the MSCI inquiry. Nifty IT closed in the green, backed by gains in Infosys shares. 

In international markets, major Asian indices closed mixed. US indices futures traded lower as investors expect more rate hikes from the Fed to achieve the desired target of 2% inflation. Tech-heavy Nasdaq 100 closed 1.83% lower on Wednesday. European markets traded in the green as German consumer prices rose to 9.2% in January from a year ago, less than the anticipated 10%. This eased pressure on the European Central Bank to keep raising rates. UK is set to release GDP numbers on Friday, and they are expected to show that the economy flatlined in the fourth quarter, narrowly avoiding recession.

• Money flow index (MFI) indicates that stocks like Symphony, Blue Star, Procter & Gamble Health and KPIT Technologies are in the overbought zone.

• French company Total Energies puts its partnership with Adani group’s hydrogen venture on hold after the allegations raised by Hindenburg Research. The partnership was announced in June 2022 and Total Energies was set to have a 25% stake in the project.

  #AdaniCrisis | “Mr [Gautam] Adani has other things to deal with now, it’s just good sense to pause things while the audit goes forward," TotalEnergies Chief Executive Patrick Pouyanne was quoted as saying.
  
  Read more: https://t.co/YCKbkjRcso pic.twitter.com/Spm9LD88Xs

  — Scroll.in (@scroll_in) February 9, 2023

• Commodity Printing/Stationary, IT Training Services, Advertising & Media industries gain over 3% in trade today.

• Escorts Kubota, Graphite India and Astral’s Q3FY23 net profits fall 6.9%, 59.8% and 26.9% YoY respectively.

• Trent, Cummins India, Schaeffler India and NHPC are trading above their second resistance or R2 level.

• HSBC maintains its ‘Buy’ rating on Bharti Airtel with a target price of Rs 970. It expects the company’s return on invested capital (RoIC) to expand on the back of a rise in average revenue per user (ARPU). It adds that the growth outlook is strong due to the 5G rollout.

  #BrokerageRadar | HSBC on Bharti Airtel: Maintain Buy; Expect ROIC to expand with a rise in ARPU#StockMarket #StocksToWatch @HSBC pic.twitter.com/BvuF41n2Ae

  — ET NOW (@ETNOWlive) February 9, 2023

• India Railway Catering & Tourism Corp (IRCTC) is rising as its Q3FY23 net profit increases 22.4% YoY to Rs 255.5 crore. Revenue surges 69.9% YoY led by multi-fold growth in the catering segment. The stock shows up in a screener for companies with book value per share improving over the past two years.

• Hindalco’s Q3FY23 net profit falls 62.9% YoY to Rs 1,362 crore as EBITDA across Novelis (a subsidiary of Hindalco) and the upstream segment dips. However, revenue increases by 5.7% YoY. The stock ranks high on the Trendlyne Checklist score.

• MRF is falling despite its Q3FY23 net profit rising 17% YoY to Rs 174.8 crore and revenue increasing by 14.7% YoY. The company’s profitability improves amid a significant surge in the cost of materials. The stock shows up in a screener for companies with revenues increasing sequentially for the past four quarters.

• Analysts expect the RBI to raise interest rates by another 25 bps in April after it expressed concern over the stickiness of core inflation. The RBI also maintained the policy stance at ‘withdrawal of accommodation’.

  The RBI raised the repo rate by a widely expected 25 basis points (bps) on Wednesday, in its sixth straight rate hike in a row that took the total to 250 bps in the current fiscal year.https://t.co/g6vDCSXd97

  — Mint (@livemint) February 9, 2023

• SFK India's net profit rises 31.4% YoY to Rs 116.7 crore in Q3FY23. Growth in revenue and declining employee benefits expenses aid the EBITDA margin to rise by 430 bps YoY. It features in a screener of stocks with improving net profit and profit margin (YoY).

• One97 Communications (Paytm), CG Power and Industrial Solutions and Mahindra CIE Automotive outperform their sectors in the past month.

• KRChoksey upgrades its rating on Alembic Pharmaceuticals to ‘Buy’ from ‘Add’ and raises the target price to Rs 704 from Rs 694. This implies an upside of 34.3%. The brokerage believes robust demand in the Indian market and new product launches will offset the price erosion concerns in the US market.

• Mutual Funds' net inflow grows 2.5X MoM to Rs 11,373 crore in January from Rs 4,491 crore in December 2022, according to data released by the Association of Mutual Funds in India (AMFI).

  #BREAKING | AMFI Data:
  
  -Jan net inflow at Rs 11,373 cr vs Rs 4,491 cr MoM
  -Jan equity inflow at Rs 12,547 cr Vs Rs 7,303 cr MoM
  -Jan total AUM flat at Rs 40.8 lk cr
  -Jan equity AUM at Rs 15.2 lk cr Vs Rs 15.4 lk cr MoM#AMFI #MutualFunds pic.twitter.com/zyjCatHmpz

  — ET NOW (@ETNOWlive) February 9, 2023

• Lupin is rising as it receives US FDA approval for its abbreviated new drug application (ANDA) for glycopyrrolate injection. It is the first approval for the drug manufacturer's new injectable facility in Nagpur. According to IQVIA, the injection had an estimated annual sales of $39 million in the US during CY22.

• UNO Minda is rising as its Q3FY23 net profit surges 59.9% YoY to Rs 162 crore and revenue rises 33.7% YoY. The growth comes on the back of increasing content per vehicle, a diversified product portfolio and new launches. The stock shows up in a screener for companies with low debt.

• Trent is rising in trade after reporting a 19.5% YoY increase in net profit to Rs 167 crore. Revenue grows 53.7% on the back of improving customer traction and sales from brands like Westside and Zudio, among others. The company shows up in a screener of stocks with strong annual EPS growth.

• Indian rupee depreciates to 82.58 from the previous close of 82.49 against the US dollar in early trade today amid continued foreign fund outflows and muted trend of domestic equities.

  #Rupee Check | Rupee opens at 82.58/$ vs Wednesday's close of 82.49/$#RupeeVsDollar #USDINR #INR #USD #USDollar #Dollar pic.twitter.com/5NmmsABJA1

  — CNBC-TV18 (@CNBCTV18Live) February 9, 2023

• Oberoi Realty's Q3FY23 net profit rises 50.3% YoY to Rs 702.6 crore, while its revenue increases 95.9% YoY. The positive performance is the result of robust sales upon the launch of Tower G in project Sky City. It shows up in a screener for stocks with improving cash flow and good durability.

• Britannia Industries, Cholamandalam Investment Finance Co and ACC outperform the Nifty 50 index over the week post their Q3FY23 results.

• Cummins India is rising after reporting an increase in net profit by 66% YoY to Rs 413.8 crore for Q3FY23. Revenue is up 26% YoY, aided by growth in domestic sales and exports. It shows up in a screener for stocks with growth in quarterly net profit and margin YoY.

• Samvardhana Motherson International’s Q3FY23 net profit surges 85.2% YoY to Rs 453.9 crore as demand recovers in Europe and India. Revenue rises 25.5% YoY, aided by growth in revenue across segments like wiring harnesses, modules and polymer products, among others. It shows up in a screener of stocks with high momentum scores.

Riding High:

Largecap and midcap gainers today include Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and PB Fintech Ltd. (510.30, 5.93%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (1,925.70, -11.02%), Ambuja Cements Ltd. (357.80, -6.98%) and Adani Power Ltd. (172.80, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Trent Ltd. (1,341.90, 8.56%), Cummins India Ltd. (1,578.35, 7.06%) and Gujarat Pipavav Port Ltd. (98.45, 6.49%).

Top high volume losers on BSE were Restaurant Brands Asia Ltd. (99.50, -6.57%), Ircon International Ltd. (55.40, -4.07%) and MRF Ltd. (88,813.05, -3.75%).

Kansai Nerolac Paints Ltd. (417.90, 0.84%) was trading at 9.4 times of weekly average. Godrej Agrovet Ltd. (460.80, 2.45%) and Honeywell Automation India Ltd. (37,910.00, -2.96%) were trading with volumes 8.5 and 7.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

7 stocks took off, crossing 52-week highs, while 5 stocks hit their 52-week lows.

Stocks touching their year highs included - Cummins India Ltd. (1,578.35, 7.06%), Mahindra & Mahindra Financial Services Ltd. (270.40, 0.50%) and NCC Ltd. (92.90, -1.69%).

Stocks making new 52 weeks lows included - Page Industries Ltd. (37,960.15, -3.54%) and Thyrocare Technologies Ltd. (486.65, -0.36%).

18 stocks climbed above their 200 day SMA including Trent Ltd. (1,341.90, 8.56%) and PB Fintech Ltd. (510.30, 5.93%). 14 stocks slipped below their 200 SMA including Honeywell Automation India Ltd. (37,910.00, -2.96%) and Prince Pipes & Fittings Ltd. (595.25, -2.91%).