Trendlyne Analysis

Nifty 50 closed at 18,487.75 (-46.7, -0.3%) , BSE Sensex closed at 62,428.54 (-193.7, -0.3%) while the broader Nifty 500 closed at 15,760.35 (-6.1, 0.0%). Of the 1,977 stocks traded today, 1,189 showed gains, and 727 showed losses.

Indian indices extended their losses and closed in the red, with the Nifty 50 hovering below the key 18,500 mark. The volatility index, Nifty VIX, dropped below 12 at the close. India’s GDP grew at 6.1% in Q4FY23, surpassing the estimated growth of 5.5%. The overall GDP growth in FY23 stood at 7.2%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing lower. Nifty Realty and Nifty Healthcare closed sharply higher than Wednesday’s closing levels. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day with a rise of over 1.84%.

Most European indices trade in the green. Data released by the European Commission indicated Euro zone inflation for May at 6.1%, slightly lower than the estimated 6.3%. The inflation in April was at 7.0%. The markets rose, speculating only one 25 bps hike in FY24, instead of the initially expected two hikes.

• Money flow index (MFI) indicates that stocks like Mahindra Lifespace Developers, Shoppers Stop, Dixon Technologies, eClerx Services and Torrent Pharmaceuticals are in the overbought zone.

• Jefferies remains bearish on the IT sector as it is cautious about discretionary IT spending. The brokerage expects limited scope of margin expansion for IT companies in FY24.

  Brokerage Radar | @Jefferies on IT: Expect further earnings cuts; remain bearish on the sector#IT #StockMarket @hcltech @techmahindracsr @Infosys pic.twitter.com/eKwmojK2rD

  — ET NOW (@ETNOWlive) June 1, 2023

• Lupin is rising as its wholly-owned subsidiary, Novel Laboratories receives approval from the US FDA for its abbreviated new drug application (ANDA) for diazepam rectal. The drug is a generic equivalent of Diastat AcuDial rectal delivery system from Bausch Health US. According to IQVIA, it has an estimated annual sales of $34 million in the US in FY23.

• Containers & packaging stocks like EPL, Mold-Tek Packaging and Uflex are rising in trade. The container & packaging industry is also trading in the green.

• Amara Raja Batteries rises by over 3% in trade and ranks high on Trendlyne's checklist with a score of 69.6%. It is in the 'Strong Buy' zone and also appears in a screener for stocks with high momentum scores.

• NMDC's monthly iron ore production rises by 15.9% YoY to 3.71 mt in May. Its overall sales also increase by 36.6% YoY to 3.62 mt, driven by robust growth in sales at the Chattisgarh plant.

• NCC is rising after announcing the acquisition of orders worth Rs 2,088 crore in May. The firm’s building division has secured orders worth Rs 1,668 crore and the water division received orders amounting to Rs 420 crore. The stock shows up in a screener for companies with book value per share improving over the past two years.

• Eicher Motor's domestic sales volume increases by 15.8% YoY to 5826 units in May, driven by the heavy-duty (HD) segment. However, the export sales volume falls by 46.9% YoY to 250 units. Overall sales volume registers a growth of 11.6% YoY.

• Maruti Suzuki's wholesales rise by 10.3% YoY to around 1.8 lakh units in May, led by sales growth in utility vehicles like Brezza, Ertiga and Fronx. Exports during the month decline 2.6% to 26,477 units YoY.

  #MarutiSuzuki India reported total vehicle sales at 178,083 units in May 2023, registering a rise of 10.32% as compared to 161,413 units sold in the same month last year.https://t.co/3UeHt4aeL3

  — Mint (@livemint) June 1, 2023

• Mphasis is rising with the launch of its new business unit, Mphasis AI. The company expects this unit to boost engineering productivity and drive innovation through artificial intelligence.

• Pidilite Industries, BEML, ICICI Lombard General Insurance Company, Sonata Software and Westlife Foodworld are trading above their third resistance or R3 levels.

• Axis Direct maintains its ‘Buy’ rating on KNR Constructions and raises the target price to Rs 325 from Rs 310. This implies an upside of 29.7%. The brokerage is confident in the company's ability to capitalise on the increasing infrastructure capex by the Centre, given its focus on diversification, robust execution and healthy order inflow.

• Mahindra & Mahindra is rising with total auto wholesales up 14% YoY to 61,415 units in May. Domestic passenger vehicle wholesales drive the growth with a 22% YoY increase, fueled by strong demand for utility vehicles. However, the firm’s total commercial vehicle and farm equipment wholesales decline by 16.7% YoY and 4% YoY respectively.

• Bajaj Auto's total two-wheeler sales rise 23% YoY to 3.3 lakh units in May 2023. Its total domestic wholesales also increase 103% YoY but exports drop 23% YoY.

• Laurus Labs is rising as it signs a definitive agreement to acquire an additional 7.2% stake in Immunoadoptive Cell Therapy Pvt Ltd (lmmunoACT), an advanced cell and gene therapy company, for a cash consideration of Rs 80 crore. Post the deal, Laurus Lab's stake in ImmunoACT will increase to 33.86%.

• India's GDP growth rises to 6.1% in Q4FY23, led by robust growth in the services, agriculture, and construction sectors. The GDP for FY23 stands at 7.2%, surpassing the earlier estimate of 7%.

• India’s economic growth shot up by 6.1% in Q4FY23, beating analysts’ expectations, as the expansion in manufacturing & construction surprised on the upside.@Armilu #GDP #IndianEconomy #manufacturing #Construction https://t.co/LaJpaIlN2d

  — Business Standard (@bsindia) June 1, 2023

• Hotels, restaurants & tourism, cement & construction and diversified consumer services sectors rise over 11% in the past month

• Escorts Kubota is rising as its total monthly tractor wholesales in May increase by 8.9% YoY to 9,167 units, driven by a 13.5% YoY growth in domestic wholesales. However, its exports decline by 38.6% YoY. The stock shows up in a screener for companies with no debt.

• Sona BLW Precision Forging falling as one of its promoters, Aureus Investment Pvt Ltd, sells a 3.2% stake worth Rs 957 crore through an open market transaction.

• India’s manufacturing PMI touches a 31-month high of 58.7 in May, compared to 57.2 in April, on the back of strong demand and output.

  #NewsAlert ???? India's #manufacturing sector activity continued to expand in May, with the S&P Global Purchasing Managers' Index (PMI) coming in at a 31-month high of 58.7, up from 57.2 in April.
  
  Here's what the latest data shows??https://t.co/bxIPoJLPJH#India #PMI #PMIData pic.twitter.com/mLq9ZGiBfP

  — Moneycontrol (@moneycontrolcom) June 1, 2023

• RBL Bank rises by over 5% in trade and ranks high on Trendlyne's checklist with a score of 66.7%. The stock is in the 'Strong Buy' zone based on the number of days spent in the current P/E range. It appears in a screener for stocks with a positive breakout at the third resistance level.

• Coal India is falling as the Centre initiates a stake sale of up to 3% (18.5 crore equity shares) in the company through the offer for sale (OFS) route. The floor price is set at Rs 225, which is a 7% discount from the closing price yesterday. The government aims to gain Rs 4,162 crore from this stake sale.

• Indian rupee appreciates 25 paise to 82.47 from the previous close of 82.72 against the US dollar in early trade today.

  #Rupee Check | Rupee opens 25 Paise stronger against Wednesday’s close of 82.72/$#RupeeVsDollar #USDINR #USD #INR pic.twitter.com/2GSlfvi7UK

  — CNBC-TV18 (@CNBCTV18Live) June 1, 2023

• RHI Magnesita, PNB Housing Finance, Crompton Greaves Consumer Electricals and Dixon Technologies witness a significant surge in mutual fund holdings in the past month.

• Mankind Pharma rises as its net profit increases by 50.1% YoY to Rs 285.4 crore in Q4FY23 on the back of lower raw material and finance expenses. Its revenue rises by 19.4% YoY, driven by robust growth in the chronic and consumer healthcare segments. Its EBITDA margin also improves by 400 bps. It appears in a screener of stocks with low debt.

• HFCL is rising as its board decides to expand the current capacity of optical fiber manufacturing from 10 million fkm per year to 33.9 million fkm per year at its manufacturing facility in Telangana. The expansion will be completed by December 2024, with an estimated capex of Rs 470 crore.

Riding High:

Largecap and midcap gainers today include Adani Transmission Ltd. (815.50, 5.00%), Adani Total Gas Ltd. (694.35, 4.55%) and Apollo Hospitals Enterprise Ltd. (4,814.25, 4.16%).

Downers:

Largecap and midcap losers today include Coal India Ltd. (230.35, -4.52%), ABB India Ltd. (3,944.65, -4.39%) and Kotak Mahindra Bank Ltd. (1,930.05, -4.18%).

Volume Rockets

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

Top high volume gainers on BSE included EPL Ltd. (199.80, 10.17%), Westlife Foodworld Ltd. (828.50, 7.45%) and Sobha Ltd. (558.25, 7.22%).

Top high volume losers on BSE were Coal India Ltd. (230.35, -4.52%), Vedant Fashions Ltd. (1,265.05, -1.74%) and Ratnamani Metals & Tubes Ltd. (2,300.00, -0.56%).

Aether Industries Ltd. (905.00, 0.44%) was trading at 21.0 times of weekly average. Aarti Drugs Ltd. (454.65, 4.09%) and Tata Teleservices (Maharashtra) Ltd. (63.75, 3.74%) were trading with volumes 10.5 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

31 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - 3M India Ltd. (26,115.70, 3.83%), Bajaj Auto Ltd. (4,643.60, 1.67%) and Birla Corporation Ltd. (1,146.60, 2.27%).

22 stocks climbed above their 200 day SMA including Network 18 Media & Investments Ltd. (65.15, 6.28%) and TV18 Broadcast Ltd. (36.75, 4.70%). 8 stocks slipped below their 200 SMA including Kansai Nerolac Paints Ltd. (430.70, -2.30%) and SBI Life Insurance Company Ltd. (1,207.75, -2.21%).