Trendlyne Marketwatch
Trendlyne Marketwatch
12 May 2023
Market closes flat, HAL's Q4FY23 net profit declines 8.8% YoY to Rs 2,831.2 crore

Trendlyne Analysis

Nifty 50 closed at 18,314.80 (17.8, 0.1%), BSE Sensex closed at 62,027.90 (123.4, 0.2%) while the broader Nifty 500 closed at 15,477.35 (-6.7, 0.0%). Of the 1,944 stocks traded today, 825 showed gains, and 1,043 showed losses.

Indian indices recover from the days low and closed in the green, with Nifty 50 rising above the key 18,300 mark. The volatility index, India VIX dropped below 13 at close. On Thursday, MSCI cut weights of 15 Nifty 50 stocks which might result in USD 1 billion outflow.

Nifty Smallcap 100 and Nifty Midcap 100 closed sharply lower despite the benchmark index closing in the green. Nifty Auto and Nifty Bank closed higher than Thursday’s closing levels. Nifty IT closed lower, despite the tech-heavy Nasdaq 100 closing in the green on Thursday. According to Trendlyne’s sector dashboard, forest materials was the top-performing sector of the day as it rose over 1.5%.

Most European indices traded in the green tailing the US indices futures, which are trading higher than Thursday’s closing levels. On Thursday, the data released by US Labor Department indicated April CPI at 4.9% against an expectation of 5.0%. This raises hopes of the Federal Reserve’s pausing interest rate hikes.

  • Glenmark Pharmaceuticals sees a short buildup in its May 25 future series as its open interest rises 28.4% with a put-call ratio of 1.

  • Vedanta is falling as its net profit plunges 56.9% YoY to Rs 3,132 crore in Q4FY23. Revenue has also dropped by 5.4% due to reduced revenue from its zinc, oil & gas, and aluminium segments. The company features in a screener of stocks where mutual funds have decreased their holding in the past quarter.

  • Cipla is rising as its net profit improves by 45.2% YoY to Rs 525.6 crore in Q4FY23. Revenue also grows 8.5% YoY to Rs 5,665.9 crore on the back of an increase in pharmaceutical sales. The company shows up in a screener of stocks with improving net profit for the past three consecutive quarters.

  • Polycab India and Tata Motors touch their 52-week highs of Rs 3,390 and Rs 520.5 respectively. Polycab has risen 10.2% in the past month, while the other increased by 12.7%.

  • Sapphire Foods India is falling despite a 411% YoY rise in Q4FY23 profit to Rs 135.5 crore while its revenue rises 12.9% YoY. Its profit has been boosted by the reassessment of the recoverability of unrecognised deferred tax assets. The company features in a screener for highly durable stocks with EPS growth.

  • Metal stocks like Jindal Stainless, Hindalco Industries, Hindustan Copper, Vedanta and Jindal Steel & Power are falling in trade. All constituents of the broader sectoral index, Nifty Metal, are also trading in the red.

  • Hindustan Aeronautics is falling as its Q4FY23 net profit declines 8.8% YoY to Rs 2,831.2 crore due to higher input costs and impairment loss. On the other hand, the company’s revenue rises 8.1% YoY to Rs 12,494.7 crore. The stock shows up in a screener for companies with declining net cash flows.

  • Ramesh Kumar Dua, CEO of Relaxo Footwear, expects the company’s volume to grow in double digits in FY24. He adds that it will maintain a margin of 15% moving forward.

  • Marico rises 10.2% over the past week. The company ranks high on Trendlyne’s Checklist, scoring 60.9%. It features in a screener of stocks near their 52-week highs.

  • ICICI Securities downgrades its rating on Indian Hotels Co to ‘Add’ from ‘Buy’ and maintains its target price of Rs 399. This implies an upside of 12%. The brokerage attributes the rating downgrade to the recent run-up in the stock price. However, it remains optimistic about the firm’s prospects given the healthy demand trends.

  • Zee Entertainment is falling in trade following reports that the NSE and BSE may reconsider their approval regarding the Sony-Zee merger. This comes as the market regulator, SEBI, alleges Shirpur Gold Refinery of abusing insolvency law and divesting funds to its promoter entities. Shirpur Gold Refinery is owned by Essel Group, a promoter of Zee Entertainment.

  • Max Healthcare Institute, Eicher Motors and Glenmark Pharmaceuticals are trading above their third resistance or R3 level.

  • The Society of Indian Automobile Manufacturers (SIAM) reports that two-wheeler sales have risen to 13.4 lakh units in April, compared to 12.9 lakh units in March. Passenger vehicle sales stand at 3.3 lakh units.

  • Utilities stocks like Adani Transmission, Power Grid Corp of India, NTPC and Gujarat Industries Power are falling in trade. The broader sectoral index BSE Utilities is also trading in the red.

  • Goldman Sachs sells stakes worth Rs 161.6 core in Cholamandalam Investment & Finance, Jubilant Foodworks, Titan, Varun Beverages, Affle (India) and Devyani International through various block deals on Thursday. The shares have been picked up by Sector Investment Funds through other block deals.

  • Adani Total Gas and Adani Transmission are falling as Morgan Stanley Capital International (MSCI) has removed them from the MSCI India Standard Index in its May 2023 rejig. Due to the removal, an outflow of $201 million for Adani Transmission and $186 million for Adani Total Gas is expected.

  • Ittira Davis, Managing Director of Ujjivan Small Finance Bank, says that the net interest margin (NIM) of the bank is expected to be around 9.1% in H1FY24 and is likely to improve in H2. He expects loan disbursals of around Rs 4,800 crore in Q1FY24.

  • Reports suggest that Maruti Suzuki plans to invest $5.5 billion to double its production capacity to 40 lakh vehicles by 2030. The stock ranks high on Trendlyne checklist score and is trading near its 52-week high. It shows up in a screener of stocks where brokers have upgraded their recommendations in the past three months.

  • South Indian Bank surges as its Q4FY23 profit rises by 22.6% YoY to Rs 333.5 crore, while revenue grows by 26% YoY, mainly driven by the corporate banking and retail banking segments. The company shows up in the screener for stocks with strong annual EPS growth.

  • Goldman Sachs maintains its ‘Neutral’ rating on Dr. Lal Pathlabs with a target price of Rs 1,950. The brokerage says that the company’s EBITDA margin is below its estimates by 29 bps, and adds that the non-Covid revenue has fallen marginally QoQ in Q4FY23.

  • Zensar Technologies is rising despite its Q4FY23 net profit declining by 8.2% YoY to Rs 119.2 crore due to higher employee costs and other expenses. The company’s revenue increases 5.1% YoY, led by the digital and application services segment. The company shows up in a screener for stocks near their 52-week highs and that have significant volumes.

  • NBCC rises as it announces the receipt of orders worth Rs 1,264.8 crore in April. The stock is trading near its 52-week high.

  • Deepak Nitrite falls as its Q4FY23 net profit decreases 12.5% YoY to Rs 233.8 crore on rising expenses of power, fuel and input costs. However, revenue has increased by 4.8%, led by improving revenue across the advanced intermediates and phenolics segment in Q4. The board has declared a final dividend of Rs 7.5 per share for FY23.

  • Siemens touches a 52-week high as its Q4FY23 net profit rises 38.6% YoY to Rs 471.4 crore, despite a 26% YoY increase in expenses. Its revenue grows 28% led by growth across all segments like energy, smart infrastructure, mobility and digital industries. The company has also bagged new orders worth Rs 31,151 crore in Q4.

  • Eicher Motors’ Q4FY23 net profit rises 48.4% YoY to Rs 905.6 crore and revenue grows 19.1% YoY, driven by robust growth across all its business segments. The company’s board of directors has declared a final dividend of Rs 37 per share for FY23 and approved a cash outlay of more than Rs 1,000 crore towards capex for FY24.

Riding High:

Largecap and midcap gainers today include Dr. Lal Pathlabs Ltd. (2,040.90, 7.06%), Eicher Motors Ltd. (3,626.35, 6.49%) and Polycab India Ltd. (3,388.95, 4.75%).

Downers:

Largecap and midcap losers today include Adani Total Gas Ltd. (818.35, -4.29%), Hindalco Industries Ltd. (404.75, -3.83%) and ICICI Prudential Life Insurance Company Ltd. (433.30, -3.71%).

Volume Shockers

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

Top high volume gainers on BSE included Intellect Design Arena Ltd. (531.35, 13.93%), Zensar Technologies Ltd. (339.50, 9.43%) and Dr. Lal Pathlabs Ltd. (2,040.90, 7.06%).

Top high volume losers on BSE were Jindal Stainless Ltd. (277.95, -6.13%), Balrampur Chini Mills Ltd. (386.60, -5.38%) and Adani Total Gas Ltd. (818.35, -4.29%).

Eureka Forbes Ltd. (373.00, -0.75%) was trading at 10.6 times of weekly average. Eicher Motors Ltd. (3,626.35, 6.49%) and Max Healthcare Institute Ltd. (499.85, 3.26%) were trading with volumes 9.2 and 7.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

24 stocks took off, crossing 52-week highs, while 1 stock hit their 52-week lows.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,470.45, 0.05%), Bajaj Auto Ltd. (4,538.90, -0.20%) and Cera Sanitaryware Ltd. (7,201.10, 5.62%).

Stock making new 52 weeks lows included - Orient Electric Ltd. (218.75, -1.44%).

20 stocks climbed above their 200 day SMA including Intellect Design Arena Ltd. (531.35, 13.93%) and Grindwell Norton Ltd. (2,000.00, 5.25%). 13 stocks slipped below their 200 SMA including Manappuram Finance Ltd. (109.95, -4.81%) and Hindalco Industries Ltd. (404.75, -3.83%).

 
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