Trendlyne Analysis

Nifty 50 closed at 17,856.50 (-37.0, -0.2%), BSE Sensex closed at 60,682.70 (-123.5, -0.2%) while the broader Nifty 500 closed at 15,015.85 (-14.3, -0.1%). Of the 1,952 stocks traded today, 986 were on the uptick, and 901 were down.

Indian indices recovered from their day’s lows but still closed in the red. Reuter’s poll of economists indicated that Indian annual retail inflation likely rose to 5.9% in January from a 12-month low in December. Adani Total Gas and Adani Transmission closed at their lower circuits while Adani Enterprises fell 3.9% in trade today after global index provider Morgan Stanley Capital International (MCSI) said it will cut the weights of these companies in its indices. Adani Group hired US legal firm Wachtell, which represented Twitter in Elon Musk's $ 44 billion deal, to take on short-seller Hindenburg.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty closed over 1.3% higher led by DLF and Godrej Properties. However, Nifty Energy and Nifty FMCG closed lower than Thursday’s levels. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower. 

Most major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices and US indices futures. The UK’s economy stagnated in Q4CY22 as its GDP remained unchanged between the third and fourth quarters of CY22. However, the British economy narrowly avoided recession, which is technically defined as two consecutive quarters of falling output/GDP.

• MRF beats Apollo Tyres in YoY revenue growth, annual RoCE and three-year average annual RoE. But it lags in YoY and QoQ net profit growth, PE ratio, MF holdings and broker average rating.

• Mahindra & Mahindra's net profit grows 34.7% YoY to Rs 2,676.6 crore in Q3FY23. Rise in sales in the automotive and farm equipment segments aids the revenue to increase by 29.8% YoY. The company shows up in a screener of stocks with improving revenue QoQ for the past four quarters.

• KPIT Technologies and CG Power & Industrial Solutions hit their all-time highs of Rs 849.9 and Rs 327 per share respectively. KPIT Technologies has risen 16.9%, while CG Power & Industrial Solutions rose 10.3% over the past month.

• Axis Direct upgrades its rating on Ambuja Cements to ‘Buy’ from ‘Hold’ and lowers the target price to Rs 460 from Rs 555, implying an upside of 26.6%. The brokerage turns positive on the company due to its positioning in key markets, cost-saving initiatives and higher capacity utilisation.

• Chris Wood, Global Head of Equity Strategy at Jefferies, expects a recession in the second phase of 2023. In the Greed & Fear note, he mentions the changes that will be made to India's long-only portfolio–adding investment in Bajaj Finance and trimming stake in HDFC Life Insurance and ICICI Lombard General Insurance.

  The recent changes will involve adding investment in Bajaj Finance while trimming that in HDFC Life Insurance and ICICI Lombard General Insurance.https://t.co/KvK9FbtczS

  — Mint (@livemint) February 10, 2023

• Foreign institutional investors pull out Rs 3,951.6 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index futures receive the highest inflow of Rs 1,611.3 crore from foreign investors and mutual funds invest Rs 3,580.5 crore in the market.

• PSU Bank stocks like Punjab & Sind Bank, Central Bank of India, Union Bank of India and Bank of Maharashtra are rising in trade. The broader sectoral index Nifty PSU Bank is also trading in the green.

• Lupin is falling as its net profit declines 71.9% YoY to Rs 153.5 crore in Q3FY23. EBITDA margin grows 340 bps YoY on the back of a decrease in raw material and other expenses. The company features in a screener of stocks with declining net profit and profit margin (YoY).

• Amit Uplenchwar, Director (Strategy & Subsidiaries Operations) of Kalpataru Power Transmissions, says the company’s order inflow could exceed the target of Rs 21,000 crore and be in the range of Rs 24,000-25,000 crore in FY23.

  #OnCNBCTV18 | Should be closer to 9% #EBITDA level by the end of #FY23. Will bring down topline #guidance from 15% to 12-14% for FY23. FY23 order inflow could be in the range of ?24,000-25,000 cr, says Amit Uplenchwar of Kalpataru Power pic.twitter.com/X93KOGB4oB

  — CNBC-TV18 (@CNBCTV18Live) February 10, 2023

• Suzlon Energy is rising as its Q3FY23 net profit surges more than 2X YoY to Rs 78.4 crore despite its revenue declining by 9.4% YoY. This improvement is due to the cost of raw materials declining 34.1% YoY. The company shows up in a screener for stocks with improving cash flow and a high durability score.

• Hindalco Industries, Shree Cements and Page Industries’ Q3FY23 net profits fall 62.9%, 41.5% and 29.1% YoY respectively.

• Housing Development Finance Corp, Titan and Berger Paints outperform the Nifty 50 index over the week post their Q3FY23 results.

• Elara India Opportunities Fund and Cresta Fund from Hindenburg's report sell 0.26% and 0.32% stakes respectively in Adani Transmission in Q3FY23.

• Sanjay Purohit, Group CEO of Sapphire Foods, says the company’s growth has normalised after 4-6 quarters. He expects revenue and EBITDA to grow 23-25% and 30-33% respectively for the next three years.

  #OnCNBCTV18 | Expect 23-25% #revenue & 30-33% #EBITDA growth for 3 years. Target 20% #margin in KFC & mid-teens margin in Pizza Hut. Consumer sentiment in Sri Lanka likely to remain weak for 2-3 quarters, says Sanjay Purohit of Sapphire Foods pic.twitter.com/s11P4Nsc5u

  — CNBC-TV18 (@CNBCTV18Live) February 10, 2023

• General Industrials, Banking & Finance and Media sectors trade above 3% over the past week.

• Pfizer appoints Meenakshi Nevatia as the Managing Director and Additional Director of the company for a period of five years with effect from April 3, 2023, subject to the approval of shareholders.

• One97 Communications (Paytm) is falling as 2.1 crore shares (3.4% equity) change hands in a block deal.

  #Paytm Large Trade | 2.1 cr shares (3.4% equity) change hands via block deal#BlockDeal pic.twitter.com/5iAIgOxmB8

  — CNBC-TV18 (@CNBCTV18Live) February 10, 2023

• Zomato’s net loss widens to Rs 346.6 crore in Q3FY23 against a loss of Rs 63 crore in Q3FY22. Its finance and depreciation costs soar more than 4X YoY. However, Hyperpure and quick commerce revenues increase but revenue from the food delivery business falls in Q3. The stock ranks medium on the Trendlyne Checklist score.

• Mahindra & Mahindra inks an MoU with the Telangana government for its expansion plans at its manufacturing facility in Zaheerabad, Medak. The project would entail setting up a facility to develop and produce three- and four-wheeler electric vehicles.

• Voltas is falling as it posts a net loss of Rs 110.4 crore, compared to a net profit of Rs 96 crore in Q3FY22. This is on account of the rising cost of materials and a one-time provision of Rs 137.4 crore due to the cancellation of a contract. However, revenue grows 11.8% YoY led by the unitary cooling products segment.

• Life Insurance Corp of India’s Q3FY23 net profit rises nearly 27X YoY to Rs 6,334.2 crore and net premium income increases 14.5% YoY. This growth is driven by healthy expansion in market share and first-year premium income. The stock shows up in a screener for companies with RoA improving over the past two years.

Riding High:

Largecap and midcap gainers today include Aurobindo Pharma Ltd. (468.85, 6.33%), Indus Towers Ltd. (168.00, 5.40%) and CG Power and Industrial Solutions Ltd. (327.85, 5.27%).

Downers:

Largecap and midcap losers today include One97 Communications Ltd. (650.55, -7.85%), Adani Transmission Ltd. (1,186.65, -5.00%) and Adani Total Gas Ltd. (1,255.40, -5.00%).

Volume Shockers

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

Top high volume gainers on BSE included Campus Activewear Ltd. (420.15, 6.46%), Aurobindo Pharma Ltd. (468.85, 6.33%) and Punjab & Sind Bank (29.25, 4.84%).

Top high volume losers on BSE were Fine Organic Industries Ltd. (4,764.05, -5.53%), Garware Technical Fibres Ltd. (2,953.20, -5.43%) and Lupin Ltd. (737.15, -4.80%).

Alkem Laboratories Ltd. (3,292.70, 1.93%) was trading at 9.2 times of weekly average. Akzo Nobel India Ltd. (2,315.30, 4.20%) and United Breweries Ltd. (1,480.75, -4.45%) were trading with volumes 8.8 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks made 52-week highs, while 7 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Britannia Industries Ltd. (4,622.70, -0.32%), Carborundum Universal Ltd. (1,011.80, 4.51%) and Mahindra & Mahindra Financial Services Ltd. (265.05, -1.98%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,186.65, -5.00%) and Page Industries Ltd. (38,786.20, 2.18%).

16 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,258.50, 3.20%) and Glenmark Pharmaceuticals Ltd. (400.40, 1.55%). 10 stocks slipped below their 200 SMA including Astral Ltd. (1,941.65, -4.36%) and Havells India Ltd. (1,200.95, -2.74%).