Trendlyne Marketwatch    
13 Feb 2023
Market closes lower, ICICI Direct maintains 'Buy' on Mahindra & Mahindra

Trendlyne Analysis

Nifty 50 closed at 17,770.90 (-85.6, -0.5%), BSE Sensex closed at 60,431.84 (-250.9, -0.4%) while the broader Nifty 500 closed at 14,900.50 (-115.4, -0.8%). Of the 1,974 stocks traded today, 553 were gainers and 1,372 were losers.

Indian indices recovered from their day’s lows but still closed in the red. The IIP data released on Friday indicated IIP growth eased to 4.3% in Dec 2022 from 7.3% in Nov 2022. Mining output rose by 9.8% and power generation increased by 10.4% in January.
Adani Group companies closed lower while Adani Enterprises fell 7.2% in trade today after Moody’s downgrade of four group companies.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index closing lower. Nifty Media closed over 2.4% lower led by Zee Entertainment Enterprise. However, Nifty FMCG closed flat. Other major sectoral indices closed in the red. Nifty IT also closed in the red, in line with the tech-heavy Nasdaq 100 futures, which traded lower.

Major Asian indices closed in the red amid weak global cues. European indices also traded lower, tailing Asian indices, despite US indices futures trading in the green. US is set to release its CPI data on Tuesday. Investors expect the CPI to trend downwards, and any increase in CPI will spook the markets.

  • Coforge sees a short buildup in its February 23 future series as its open interest rises 32.7% with a put-call ratio of 0.35.

  • Bharat Heavy Electricals is falling despite an increase in net profit by 56.5% YoY to Rs 42.28 crore. However, revenue increases marginally by 0.4% YoY. It shows up in a screener of companies with high TTM EPS growth.

  • Rail Vikas Nigam, Engineers India and IDFC are trading below their third support or S3 level as market trades lower.

  • Borosil Renewables is falling as its Q3FY23 net profit falls 50.9% YoY to Rs 22.5 crore and revenue dips 4.2% YoY. The fall in profit is due to an increase in materials consumed, finance, and power and fuel cost. The company shows up in a screener of stocks with improving cash flow from operation for the past two years.

  • Apollo Hospitals, Siemens and Bharat Forge rise 3.4%, 3.4% and 3.1% respectively over the past week, ahead of their Q3FY23 results tomorrow.

  • According to data from the Society of Indian Automobile Manufacturers (SIAM), sales of passenger vehicles rise 17.2% YoY to 2.98 lakh units in January and two-wheeler sales increase 3.5% YoY to 11.8 lakh units.

  • ICICI Direct maintains its rating on Mahindra & Mahindra at ‘Buy’ and raises the target price to Rs 1,665 from Rs 1,590, indicating an upside of 22%. The brokerage believes that the company's renewed focus on efficient capital allocation and aggressive EV launch pipeline are structural positives. It anticipates the firm’s sales to grow at a CAGR of 24% over FY22-25.

  • Balkrishna Industries, Metropolis Healthcare, Chemplast Sanmar and RattanIndia Enterprises declare Q3FY23 results in the past week; their net profit falls QoQ and YoY for the quarter.

  • Glenmark Pharmaceuticals is rising as its net profit improves 21.1% YoY to Rs 290.7 crore in Q3FY23. An increase in sales from Latin America, Middle East and African regions has helped the revenue grow 8%. The company shows up in a screener of stocks effectively using its capital to generate profit.

  • Adani Ports & Special Economic Zone and Ambuja Cements will be excluded from NSE’s Additional Survey Measure (ASM) framework, effective today. These companies have been under the ASM framework since February 3 amid a huge sell-off as a result of the Hindenburg Research Report.

  • J K Cement, Finolex Industries and One97 Communications (Paytm) outperform the Nifty 50 index over the week post their Q3FY23 results.

  • Media stocks like TV18 Broadcast, Zee Entertainment Enterprises and Sun TV Network are declining in trade. All constituents of the broader Nifty Media index are trading in the red.

  • Abbott India's net profit grows 24% YoY to Rs 246.8 crore in Q3FY23, while revenue rises 8.3% YoY. EBITDA margin increases by 190 bps YoY. The company shows up in a screener of stocks with improving net profit and profit margin (YoY).

  • Reports suggest that 34.36 lakh shares of DLF, amounting to Rs 124.2 crore, change hands via a block deal.

  • Oil India rises as its Q3FY23 net profit grows 76% YoY to 2,284.4 crore and revenue increases 31.2% YoY to Rs 10,712.1 crore. Its Board declares a second interim dividend of Rs 10 per share. It shows up in a screener for stocks in the PE buy zone, with reasonable durability and rising momentum score.

  • Thermax is rising as it wins an order worth Rs 251.7 crore for the renovation and modernization of a thermal power station in Bankura, West Bengal. It shows up in a screener of companies with low debt.

  • Indian rupee depreciates to 82.68 from the previous close of 82.50 against the US dollar in early trade due to a strong dollar and muted trend of domestic equities.

  • PB Fintech is rising after its net loss narrowed to Rs 87 crore in Q3FY23, against Rs 298 crore in Q3FY22. The company says that it will achieve positive EBITDA by Q4FY23. It shows up in a screener for stocks with increasing revenue for the past two quarters.

  • IT stocks like Coforge, Persistent Systems, LTIMindtree and Infosys are falling in trade. The broader sectoral index Nifty IT is also trading in the red.

  • PSU Bank stocks like State Bank of India, Punjab & Sind Bank, Canara Bank and Indian Overseas Bank are falling in trade. The broader sectoral index Nifty PSU Bank is also trading in the red.

  • BEML wins an order worth Rs 377.98 crore for the supply of track-width mine ploughs for Arjun MBT, an army tank. The order is likely to be completed by January 2026. The stock shows up in a screener of stocks with improving RoCE for the past two years.

  • Kotak Mahindra Bank enters into an agreement to acquire a 100% stake in Sonata Finance, a microfinance institution, for Rs 537 crore. The bank will use Sonata’s distribution network to provide better banking services to its customers. The bank ranks high on the Trendlyne Checklist score.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (241.00, 7.81%), Gland Pharma Ltd. (1,365.00, 3.86%) and Titan Company Ltd. (2,519.05, 2.05%).

Downers:

Largecap and midcap losers today include Balkrishna Industries Ltd. (2,052.25, -11.09%), Info Edge (India) Ltd. (3,463.85, -9.18%) and Lupin Ltd. (675.15, -8.41%).

Movers and Shakers

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (220.75, 17.11%), Oil India Ltd. (241.00, 7.81%) and Glenmark Pharmaceuticals Ltd. (422.60, 5.54%).

Top high volume losers on BSE were City Union Bank Ltd. (134.90, -15.71%), Balkrishna Industries Ltd. (2,052.25, -11.09%) and Info Edge (India) Ltd. (3,463.85, -9.18%).

Galaxy Surfactants Ltd. (2,430.00, 4.93%) was trading at 26.0 times of weekly average. Coforge Ltd. (4,032.25, -6.97%) and Godrej Industries Ltd. (428.55, 0.34%) were trading with volumes 25.5 and 20.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks hit their 52-week highs, while 11 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Blue Star Ltd. (1,365.25, -0.83%), Cera Sanitaryware Ltd. (6,080.00, 0.74%) and Sonata Software Ltd. (658.30, 0.05%).

Stocks making new 52 weeks lows included - Adani Transmission Ltd. (1,127.35, -5.00%) and Alembic Pharmaceuticals Ltd. (514.90, -1.86%).

7 stocks climbed above their 200 day SMA including Vedant Fashions Ltd. (1,274.00, 1.23%) and Ajanta Pharma Ltd. (1,219.90, 0.98%). 19 stocks slipped below their 200 SMA including Balkrishna Industries Ltd. (2,052.25, -11.09%) and Lupin Ltd. (675.15, -8.41%).

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