Trendlyne Analysis

Nifty 50 closed at 18,065.00 (150.0, 0.8%), BSE Sensex closed at 61,112.44 (463.1, 0.8%) while the broader Nifty 500 closed at 15,219.55 (144.5, 1.0%). Of the 1,949 stocks traded today, 1,255 showed gains, and 626 showed losses.

Indian indices rose sharply towards the end of the trading session and closed in the green for a fifth consecutive day. The Nifty 50 rose nearly 150 points and closed above the key 18,000 mark. In the past week, the benchmark Nifty 50 index has risen nearly 2.5% as investors analysed Q4FY23 earnings from major companies.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Media and Nifty PSU Bank closed sharply higher than Thursday’s closing levels. Nifty IT closed in the green, taking cues from the tech-heavy Nasdaq 100, which closed 2.76% higher on Thursday. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment was the top-performing sector of the week as it rose over 12%.

Most European indices traded in the red, despite all major Asian indices closing in the green. European stocks traded lower as the French Consumer price index rose 5.9% YoY in April, ahead of the expected 5.7%, while Spanish CPI came in at 4.1%, higher than the previous month’s 3.3%. Brent crude oil futures traded lower and are set to post weekly losses for a second straight week.

• Money flow index (MFI) indicates that stocks like Glenmark Pharmaceuticals, Welspun India, Raymond and Varroc Engineering are in the overbought zone.

• Star Health and Allied Insurance Co is rising as its posts a net profit of Rs 101.8 crore in Q4FY23, compared to a loss of Rs 82 crore in Q4FY22. The firm’s net premium earned rises 11.1% YoY. The stock shows up in a screener for companies with book value per share increasing over the past two years.

• Gujarat State Fertilizer Chemicals rises 26.8% in the past week and outperforms the Nifty 500 index by 24.4%. The stock ranks high on Trendlyne’s checklist, scoring 73.9%. The company features in a screener of companies with strong momentum.

• Finolex Cables and Larsen & Toubro hit their all-time highs of Rs 922.4 and 2,362.7 respectively. The former has risen 13.7% over the past month, while the other increased by 9.5%.

• Mphasis rises as its Q4FY23 net profit increases 3.4% YoY to Rs 405.3 crore, with its revenue improving by 2.6% YoY. The company shows up in a screener of stocks with improving annual net profit for the past two years.

• Rail Vikas Nigam rises 5.9% in trade today. It shows up in a screener of stocks which have gained more than 20% in the past month. The company also bags an order worth Rs 121 crore on Thursday.

• Dipali Goenka, CEO of Welspun India, says the company’s sales will grow 10-12% in FY24. She adds that Welspun aims to reduce its net debt to Rs 1,000 crore by the end of FY24.

  Earnings With ET NOW | Strong Q4 for Welspun India
  
  What factors will be at play for FY24?
  
  Dipali Goenka, the CEO of the company, speaks on guidance, Bed Bath and Beyond and the rationale behind announcing buyback @TheWelspunGroup @DipaliGoenka @SrishtiSharma_ @_sherylld pic.twitter.com/B2liQcvmo8

  — ET NOW (@ETNOWlive) April 28, 2023

• Glenmark Life Sciences is rising as its Q4FY23 net profit surges 48% YoY to Rs 146.4 crore and revenue increases 20.9% YoY. The robust performance is driven by strong traction in the API and CDMO segments. CFO Tushar Mistry attributes the growth to better margins from higher CDMO contribution, improved product mix, PLI benefit, and lower input costs.

• PSU banks like UCO Bank, Central Bank of India and Punjab & Sind Bank are rising in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

• Indian Hotels and Bank of Maharashtra’s annual profit growth outperform their respective sectors by 418% and 87.4% respectively.

• PI Industries is surging as its subsidiary, PI Health Sciences, enters a share purchase agreement (SPA) with US based Therachem Research Medilab LLC (TRM US) to acquire a 100% stake in TRM India, Indian subsidiary of TRM US, for $42 million (approximately Rs 343.4 crore). It also enters an SPA with Plahoma Twelve GmbH to acquire a 100% stake in Archimia for 34.2 million euros (approximately Rs 307.8 crore).

• Indian Hotels Co’s Q4FY23 net profit jumps 4.4X YoY to Rs 328.3 crore and revenue surges by 86.4% YoY on the back of robust demand and high revenue per room. The company’s EBITDA margin expands by 14.7 percentage points to 32.9%. Puneet Chhatwal, Managing Director and CEO, targets an EBITDA margin of 33% for FY25.

  LIVE | Stellar Q4 for Indian Hotels
  
  Puneet Chhatwal, the Managing Director & Chief Executive Officer of the company, shares his views on the numbers, new hotels and more@TajHotels #IHCL #StockMarket @nikunjdalmia https://t.co/QsG4dt2APv

  — ET NOW (@ETNOWlive) April 28, 2023

• Trent is falling after posting a net profit of Rs 45 crore, which is lower than analyst estimates due to high discounting and poor product mix in Q4FY23. However, its revenue grows by 64.3% YoY to Rs 2,182.7 crore. The company shows up in a screener of stocks with good quarterly growth in Q4FY23.

• KRChoksey downgrades its rating on Bajaj Auto to ‘Accumulate’ from ‘Buy’ with a target price of Rs 4,756, implying an upside of 7.3%. The brokerage has become more cautious about the company's future due to uncertainty surrounding the timing of export recovery. It also expects margins to stagnate in the coming quarters and sees limited upside given the stock’s recent run-up.

• Fertilizers, hardware technology & equipment, realty and forest materials sectors rise more than 15% in the past month.

• IRB Infrastructure is rising as it bags a contract worth Rs 7,380 crore to build Hyderabad Outer Ring Road (158 km long). The stock has gained 54.28% from its 52-week low.

• LTIMindtree is rising as its net profit rises 0.5% YoY to Rs 1,113.7 crore in Q4FY23. Revenue also increases 21.9% YoY on the back of a strong order book of $1.4 billion (approximately Rs 1.1 lakh crore) during the quarter. The company shows up in a screener of stocks with increasing revenue for the past 4 quarters.

• Umesh Revankar of Shriram Finance expects the company’s GNPA to fall below 6% in the coming year. He adds that credit cost will improve in the upcoming quarters. The company's consolidated net interest income for Q4FY23 amounts to Rs 4,533.6 crore.

  #4QWithCNBCTV18 | Expect performance to be much better in FY24. GNPA will likely be below 6% in the next one year. Will be able to maintain NIM at current levels: says Umesh Revankar of Shriram Finance pic.twitter.com/bwToHLjygl

  — CNBC-TV18 (@CNBCTV18Live) April 28, 2023

• Telecom stocks like Indus Towers, Tejas Networks, HFCL, Tata Teleservices (Maharashtra) and Tata Communications are rising in trade. The broader sectoral index S&P BSE Telecom is also trading in the green.

• Godrej Consumer Products will acquire Raymond Consumer Care’s FMCG business for Rs 2,825 crore. The stock has hit its 52-week high in the past week.

• Tech Mahindra’s Q4FY23 net profit declines by 25.8% YoY to Rs 1,117.7 crore despite its revenue rising by 13.2% YoY. The firm’s profitability has been impacted by the contraction in its financial business vertical and higher employee costs. Its total contract value drops by 44% YoY to $592 million in Q4.

• Satyanarayana Chava, Founder and CEO of Laurus Labs, expects an improvement in the company’s API (active pharmaceutical ingredient) sales and margins to reach 25% in FY24. He adds that Laurus’ margin has been the lowest in three years due to factors like the continued fall in the price of ARVs (antiretroviral drugs).

  #4QWithCNBCTV18 | Expect to reach a margin of 25% in FY24. Expect debt to remain at similar levels around ?2,000 cr. Expect FY24 to be a year of consolidation, Satyanarayana Chava of Laurus Labs to CNBC-TV18 pic.twitter.com/EepbZ3heM8

  — CNBC-TV18 (@CNBCTV18Live) April 28, 2023

• ACC reports a 41% YoY decline in Q4FY23 net profit to Rs 235.6 crore, with power and fuel costs and freight costs dropping by 9.4% and 1.8%, respectively. The cement segment drives an 8.2% YoY revenue increase. The stock has fallen 38% from its 52-week high.

• Embassy Office Parks REIT's Chief Executive Officer Vikaash Khdloya resigns to pursue other interests, with effect from June 30, 2023. The board appoints Aravind Maiya as the Chief Executive Officer, effective from July 1, 2023.

• Axis Bank is falling after reporting a net loss of Rs 5,361.8 crore in Q4FY23 against a net profit of Rs 4,417.7 crore in Q4FY22 because of the Citibank acquisition deal. Amitabh Chaudhary, MD & CEO, says that this is a one-time cost and if the acquisition cost is excluded, the bank’s profit would have grown by 61% YoY. Its net interest income has grown 33% YoY, while advances saw a 20% increase.

• Wipro’s Q4FY23 net profit marginally falls by 0.4% YoY to Rs 3,074.5 crore on the back of higher employee costs and other expenses. Its revenue rises by 11.2% YoY, while its total bookings grow by 29% YoY. The firm’s last twelve-month attrition rate dips by 4.6 percentage points to 19.2%. The stock shows up in a screener for companies with declining net cash flow.

Riding High:

Largecap and midcap gainers today include PI Industries Ltd. (3,384.50, 10.40%), Indus Towers Ltd. (155.00, 7.01%) and Zomato Ltd. (64.90, 6.92%).

Downers:

Largecap and midcap losers today include Shriram Finance Ltd. (1,332.60, -5.19%), Godrej Consumer Products Ltd. (907.50, -4.83%) and Axis Bank Ltd. (860.00, -2.43%).

Volume Rockets

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

Top high volume gainers on BSE included Edelweiss Financial Services Ltd. (65.80, 15.74%), Lloyds Metals & Energy Ltd. (326.00, 15.56%) and Ceat Ltd. (1,557.20, 10.97%).

Top high volume losers on BSE were Godrej Consumer Products Ltd. (907.50, -4.83%), CSB Bank Ltd. (279.50, -4.67%) and CESC Ltd. (68.50, -2.91%).

EIH Ltd. (188.75, 10.06%) was trading at 17.9 times of weekly average. Polyplex Corporation Ltd. (1,358.55, 7.39%) and Tejas Networks Ltd. (658.70, 4.58%) were trading with volumes 10.0 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks hit their 52-week highs, while 4 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Apollo Tyres Ltd. (346.90, 1.60%), Bajaj Auto Ltd. (4,431.95, 0.54%) and CCL Products India Ltd. (599.10, -0.13%).

Stocks making new 52 weeks lows included - MMTC Ltd. (28.25, -11.30%) and Laurus Labs Ltd. (307.60, 5.32%).

24 stocks climbed above their 200 day SMA including Edelweiss Financial Services Ltd. (65.80, 15.74%) and Ceat Ltd. (1,557.20, 10.97%). 3 stocks slipped below their 200 SMA including Sanofi India Ltd. (5,570.10, -6.62%) and Trent Ltd. (1,367.75, -1.05%).