Trendlyne Analysis

Nifty 50 closed at 18,297.00 (-18.1, -0.1%), BSE Sensex closed at 61,904.52 (-35.7, -0.1%) while the broader Nifty 500 closed at 15,484.05 (18, 0.1%). Of the 1,947 stocks traded today, 1,143 showed gains, and 716 showed losses.

Indian indices closed flat after switching between losses and gains on a volatile day of trade. The benchmark Nifty 50 settled just below the 18,300 mark. Asian Paints closed over 3.3% higher after its Q4 net profit rose 44% YoY to Rs 1,258.41 crore and its revenue increased by 11.5% YoY.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty FMCG and Nifty Bank closed higher than Wednesday’s close. According to Trendlyne’s sector dashboard, commercial services & supplies was the top-performing sector of the day.

European stocks traded in the green, following US indices futures, which also traded higher. However, major Asian indices closed flat or lower amid mixed global cues. Brent crude oil futures traded lower but crude oil prices are up over 5% in the last five trading sessions.

• Money flow index (MFI) indicates that stocks like Samvardhana Motherson International, Chemplast Sanmar, Lux Industries and Adani Power are in the overbought zone.

• Dr. Lal Pathlabs is falling as its net profit declines by 8.2% YoY to Rs 57 crore in Q4FY23. Although its revenue has risen marginally by 1.1% YoY, revenue from the covid segment has plunged by 83.4% YoY. The company shows up in a screener of stocks with a low Piotroski score.

• NBCC is rising as it bags an order worth Rs 264.1 crore to carry out construction and development projects on the Mahanadi campus of Ravenshaw University, Cuttack, Odisha.

• Education, forest products and airlines industries rise over 17% over the past month.

• Varun Beverages, Ambuja Cements and SBI Cards & Payments outperform the Nifty 50 index over the week post their Q4FY23 results.

• Alkyl Amines Chemicals is falling despite its Q4FY23 net profit rising 4.8% YoY to Rs 48.6 crore. Its EBITDA margin also grows by 170 bps YoY to 18.7%. However, its revenue has declined 3.2% YoY. The stock shows up in a screener for companies with declining net cash flows.

• Bharat Madan, CFO of Escorts Kubota, says the company targets a 25% growth in exports in FY24. He adds that the top-line growth will be around high single-digit to double-digit, and that margins are expected to improve in the near term.

  #4QWithCNBCTV18 | Seeing the full impact of the price increase taken in the last quarter. There has been some impact on unseasonal rains, Expect Q1 to be flat. Don’t see a significant demand impact on agri due to El Nino
  
  Bharat Madan, Escorts Kubota to CNBC-TV18 pic.twitter.com/rmA8zrasn8

  — CNBC-TV18 (@CNBCTV18Live) May 11, 2023

• Sanofi India surges more than 5% in trade as its board of directors approve the demerger of its consumer healthcare business into its wholly owned subsidiary named Sanofi Consumer Healthcare India. It shows up in a screener of stocks with high volume and high gain.

• Asian Paints' Q4FY23 profit rises by 44% YoY to Rs 1,258.41 crore, while its revenue increases by 11.5% YoY. The rise in profit is due to volume and value growth in decorative and non-automotive industrial businesses. The company shows up in a screener for stocks with an improving book value per share for the past two years.

• SoftBank's SVF India Holdings (Cayman) sells a 2.1% stake in One97 Communications (Paytm) in multiple open market transactions since February 2023 to comply with market regulator SEBI's takeover regulations.

• The Bank of England is expected to raise interest rates by 25 bps to 4.5%, the highest level since 2008, in order to combat high inflation in the UK.

  The Bank of England is poised to raise borrowing costs for the 12th meeting in a row on Thursday, as it tries to tackle stubbornly high inflation that stands at double the level of the United States and much higher than in the euro zone too https://t.co/C7CsA4C6yd

  — Reuters (@Reuters) May 11, 2023

• HDFC Securities downgrades its rating on Aditya Birla Fashion & Retail (ABFRL) to ‘Add’ from ‘Buy’ and lowers the target price to Rs 215 from Rs 270. This implies an upside of 7%. The downgrade is on the back of concerns that ABFRL’s acquisition of TCNS Clothing Co will increasingly weaken its balance sheet.

• Adani Enterprises is rising as its board of directors considers raising funds through the sale of equity shares. The company has not yet disclosed the amount of capital it aims to raise through this plan. The board meeting to discuss the approval of this fundraising strategy is scheduled for May 13.

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

• R Chandramogan, Chairman of Hatsun Agro Products, says the company’s Q4 margins have been affected by dairy inflation, but expects it to improve as commodity prices cool down. He also expects double-digit revenue growth for the company in FY24.

  Hatsun Agro says
  
  ????Expect double digit growth in FY24 with margin improvement
  ????Peak revenue potential is ?10000 cr vs ?7250cr reported in FY23#StockMarket #nifty
  
  pic.twitter.com/ugEJbw7mji

  — Nigel D'Souza (@Nigel__DSouza) May 11, 2023

• BSE Capital Goods is falling despite most stocks trading in the green. The sectoral index's decline can be attributed to the drop in the price of its constituent, Larsen & Toubro.

• Procter & Gamble Hygiene & Healthcare is rising after reporting a 60.4% YoY increase in net profit to Rs 165 crore in Q4FY23, aided by one-time tax returns of Rs 57.5 crore. However, the company's revenue declines by 9.3% YoY due to a reduction in sales. It appears in a screener of stocks with declining quarterly revenue.

• Gujarat Gas is rising despite its Q4FY23 net profit declining 16.3% YoY to Rs 370.5 crore and revenue falling by 14.7% YoY. The company’s total gas volumes have risen 22% QoQ due to the sharp correction in spot LNG prices, which it passed on to its industrial customers. The stock shows up in a screener for companies with low debt.

• Jefferies maintains its ‘Buy’ rating on Nazara Technologies with a target price of Rs 700, citing an attractive valuation despite a poor margin outlook. However, the brokerage, lowers revenue estimates by 2-3% and margin estimates by 50-80 bps for FY24/25.

  Brokerage Radar | @Jefferies on @nazaradotcom: Maintain Buy; Worsening margin outlook but offers value#Jefferies #NazaraTech #StockMarket pic.twitter.com/QaUCMmgxv2

  — ET NOW (@ETNOWlive) May 11, 2023

• Reports suggest that the Income Tax Department is conducting searches at Mankind Pharma’s offices in New Delhi, causing the stock to fall by 4.5%. The stock was listed on the bourses on May 9.

• Dr. Reddy's Laboratories is falling despite reporting a nearly 10x YoY rise in profit to Rs 960.1 crore in Q4FY23, while revenue increases 15.3%. The profit rise is due to the high impairment cost of non-current assets in Q4FY22. The board recommends a final dividend of Rs 40 per share for FY23. The company features in the screener for stocks with a current PE ratio of less than three, five and ten years PE.

• A consortium of Rail Vikas Nigam and Siemens bags an order worth Rs 300 crore for building and installing substations for the Mumbai metro line. Rail Vikas Nigam has touched its 52-week high in the past week, while Siemens reached its 52-week high in today's trading session.

• Godrej Consumer Products is rising as its Q4FY23 net profit increases by 24.5% YoY to Rs 452 crore. The company's raw material costs have declined by 3.4% and sales revenue improved by 9.6% YoY during the same period. Sales have grown across India, Indonesia, Africa, the USA and the Middle East, but fell in Latin America markets.

• Larsen & Toubro’s Q4FY23 net profit rises 10% YoY to Rs 3,986.7 crore despite a 20% increase in input costs. Its revenue also increases across all segments, with hi-tech manufacturing, IT & Technology growing by more than 20% YoY. The company’s order book at the end of FY23 stands at Rs 4 lakh crore.

Riding High:

Largecap and midcap gainers today include Vodafone Idea Ltd. (7.15, 5.93%), Gujarat Gas Ltd. (488.25, 5.49%) and SBI Cards and Payment Services Ltd. (865.65, 5.02%).

Downers:

Largecap and midcap losers today include Dr. Reddy's Laboratories Ltd. (4,532.00, -6.89%), Larsen & Toubro Ltd. (2,242.15, -5.17%) and Aditya Birla Capital Ltd. (163.95, -4.07%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included TeamLease Services Ltd. (2,273.55, 9.59%), Sanofi India Ltd. (6,205.50, 8.86%) and Ratnamani Metals & Tubes Ltd. (2,389.30, 6.68%).

Top high volume losers on BSE were Dr. Reddy's Laboratories Ltd. (4,532.00, -6.89%), Larsen & Toubro Ltd. (2,242.15, -5.17%) and Hindalco Industries Ltd. (420.85, -3.57%).

Quess Corp Ltd. (389.05, 5.55%) was trading at 31.5 times of weekly average. Procter & Gamble Hygiene & Healthcare Ltd. (13,775.00, 0.44%) and Gujarat Gas Ltd. (488.25, 5.49%) were trading with volumes 15.7 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

22 stocks hit their 52-week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,540.40, -0.34%), Bharat Petroleum Corporation Ltd. (372.55, 0.11%) and Cera Sanitaryware Ltd. (6,831.00, 1.53%).

22 stocks climbed above their 200 day SMA including Sanofi India Ltd. (6,205.50, 8.86%) and Gujarat Gas Ltd. (488.25, 5.49%). 8 stocks slipped below their 200 SMA including Hindalco Industries Ltd. (420.85, -3.57%) and Divi's Laboratories Ltd. (3,329.20, -2.80%).