Trendlyne Analysis

Nifty 50 closed at 19,398.50 (9.5, 0.1%) , BSE Sensex closed at 65,446.04 (-33.0, -0.1%) while the broader Nifty 500 closed at 16597.20 (41.2, 0.3%). Of the 1,971 stocks traded today, 1,157 were in the positive territory and 756 were negative.

Indian indices rise from the day’s low and close flat, with the Nifty 50 closing just below the 19,400 mark. The volatility index, Nifty VIX rises by 1.5% and closes at 11.9 points. FIIs invested $5.4 billion in Indian equities in June 2023, the highest inflow since August 2022.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Auto and Nifty FMCG closed higher from Friday’s closing levels. According to Trendlyne’s sector dashboard, food beverages & tobacco emerged as the top-performing sector of the day with a rise of over 1.8%.

Most European indices trade in the red. US indices futures trade lower indicating a negative start. According to Hamburg Commercial Bank, Eurozone Purchasing Managers Index dropped to 49.9 in June against estimates of 50.3. The May PMI stood at 52.8

• Relative strength index (RSI) indicates that stocks like JBM Auto, Angel One, Blue Dart Express and Bajaj Finserv are in the overbought zone.

• RBL Bank and LTIMindtree touch their 52-week highs of Rs 194.2 and Rs 5,430 respectively. The former has risen by 12.1% in the past month, while the latter increased by 4.9%.

• G R Infraprojects is rising as it announces that its subsidiary has executed a concession agreement with NHAI for the construction of a six-lane highway. The project cost stands at Rs 1,248.4 crore. The stock shows up in a screener for companies with zero promoter pledges.

• Macrotech Developers falls despite its pre-sales revenue rising by 17% YoY to Rs 3,350 crore in Q1FY24. Although its collection has fallen by 8% YoY to Rs 2400 crore, the net debt currently stands at Rs 7,260 crore. The company appears in a screener of stocks with no promoter pledge.

• Senco Gold’s Rs 405 crore IPO gets bids for 2.68X the available 94.2 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 3.67X of the available 47.1 lakh shares on offer.

• Minda Corporation rises as Societe Generale buys a 0.7% equity stake (17,28,713 shares) in the company. The deal has been executed at an average price of Rs 281 per share, totalling to Rs 48.6 crore. The company also appears in a screener of stocks with increasing FII/FPI shareholding.

• Larsen & Toubro's construction business secures an EPC order worth Rs 1,000-2,000 crore for an office space development in Mumbai. It will be constructed using composite steel construction technology. The project is estimated to be completed in 2026.

• AU Small Finance Bank falls as its Q1FY24 gross advances improve by 29% YoY and total deposits increase by 27% YoY. However, its CASA ratio declines by 3.8% YoY. It appears in a screener for stocks with improving cash flow from operations.

• The Association of Mutual Funds in India (AMFI) downgrades FSN E-Commerce (Nykaa) to the midcap category from the largecap after a 42% fall in its stock price from its 52-week high. Similarly, JSW Energy, Tata Elxsi, Macrotech Developers, and other companies have also been downgraded to the midcap category.

  Following a 42% drop in its share price from its 52-week high, #Nykaa has been downgraded from largecap to midcap category by AMFI https://t.co/L2xRiz3Wya

  — ETMarkets (@ETMarkets) July 5, 2023

• Axis Direct maintains 'Buy' rating on Federal Bank with Rs 155 target price, implying 15.8% upside. Despite margin pressure in H1FY24, the brokerage expects margins to recover in H2 with higher-yielding products and stable cost of funds. It estimates the bank’s net profit to grow at a CAGR of 18.4% over FY23-25.

• Hindustan Oil Exploration is rising after HDFC Bank buys a 6.39% stake (84.4 lakh shares) in the company today.

• Aurobindo Pharma rises as its subsidiary, CuraTeQ Biologics, announces positive results for phase three clinical trials of its Trastuzumab biosimilar. This drug, used in the treatment of breast cancer, has been found to be equivalent to its European counterpart, Herceptin. The company appears in a screener of stocks with increasing FII/FPI shareholding.

• Bandhan Bank is falling despite its loans and advances increasing 6.7% YoY to Rs 1 lakh crore in Q1FY24. The bank's CASA deposits decline 2.8% YoY, causing its CASA ratio to contract by 7.2 percentage points to 36%. It appears in a screener of stocks with prices below their short, medium, and long-term averages.

• PKH Ventures withdraws its IPO due to muted response from investors, particularly qualified institutional buyers (QIB). The IPO, which was open for subscription from June 30 to July 4, received bids for 65% of the available 2.6 crore shares on offer.

  #PKHVentures decided to withdraw its IPO after a poor response from investors even on the last day of bidding on Tuesday@akashpodishetti https://t.co/8XA0YQyObe

  — ETMarkets (@ETMarkets) July 5, 2023

• Yes Bank's net advances grow by 10% YoY in Q1FY24, deposits increase by 13.5% YoY and CASA ratio rises by 8.4 percentage points YoY. The bank appears in a screener of stocks with increasing quarterly revenue.

• Gensol Engineering rises as it receives an order worth Rs 277 crore for supplying trackers and developing solar power projects in Andhra Pradesh, Chhattisgarh and Kerala, among others.

• Bharat Heavy Electricals is rising as it signs an agreement with General Electric Technology GmbH, Switzerland, to provide gas turbines that can utilise fuel mixtures such as hydrogen, methanol, syngas, and operate in hybrid configurations. This development adds to India's energy revolution. It appears in a screener of stocks with strong momentum.

• Tata Consultancy Services and HCL Technologies rise 3.9% and 2.6% respectively over the past week, ahead of their Q1FY24 results on July 12.

• India’s Services PMI declines to 58.5 in June from 61.2 in May. However, the PMI reading has remained above the 50 mark for 23 consecutive months.

  #NewsAlert ???? India June services PMI at 58.5 against 61.2 in May#Economy #IndianEconomy #PMI pic.twitter.com/3QJkWCGQ7Y

  — Moneycontrol (@moneycontrolcom) July 5, 2023

• One97 Communications (Paytm) is rising as its average monthly transacting users in Q1FY24 rises 23% YoY to 9.2 crore, while its merchant payment volumes grow 37% YoY. The loan distribution business sees its disbursements jump 167% YoY to Rs 14,845 crore. The stock shows up in a screener for companies with improving cash flows from operations over the past two years.

• Strides Pharma Science falls as its subsidiary, Stelis Biopharma, signs a binding term sheet with Syngene International to divest its manufacturing facility in Bengaluru. The acquisition will be done at Rs 702 crore. Syngene will further invest Rs 100 crore to repurpose the facility.

• CLSA maintains its 'Sell' rating on Hero MotoCorp with a target price of Rs 2,708. The brokerage believes that the company is losing market share in its core segments and says there is rising competition in the 2-wheeler segment. However, it expects that the launch of X440 will help the firm gain market share in the 250cc segment.

  #CNBCTV18Market | CLSA continues to have a Sell rating on Hero MotoCorp. It says, Attractive Price Point for Harley’s x440 could help co gain share in the 250cc+ segment, but it is losing share in its core segments pic.twitter.com/gkioRsKRZk

  — CNBC-TV18 (@CNBCTV18Live) July 5, 2023

• Elevation Capital VI FII Holdings sells a 2.1% stake in TCNS Clothing for approx Rs 53 crore in a bulk deal on Tuesday.

• Samvardhana Motherson International rises as its subsidiary, SMRP B.V, enters into an agreement to acquire an 81% stake in Yachiyo 4W. The cost of acquisition is at an equity value of JPY 22.9 billion (Rs 1,301 crore). The target company is engaged in the production of sunroofs, fuel tanks, and other resin products.

• IndusInd Bank’s net advances in Q1FY24 rise by 21% YoY to Rs 3 lakh crore, while its deposits grow by 15% YoY. However, the bank’s CASA ratio falls by 3.3 percentage points. The bank shows up in a screener for stocks with high Piotroski scores, along with high RoE and EPS growth.

Riding High:

Largecap and midcap gainers today include Samvardhana Motherson International Ltd. (90.30, 6.05%), Bajaj Auto Ltd. (4,890.05, 5.72%) and Divi's Laboratories Ltd. (3,747.95, 5.57%).

Downers:

Largecap and midcap losers today include Dixon Technologies (India) Ltd. (4,206.10, -3.49%), HDFC Bank Ltd. (1,673.30, -3.18%) and Housing Development Finance Corporation Ltd. (2,796.15, -3.07%).

Movers and Shakers

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

Top high volume gainers on BSE included Mangalore Refinery And Petrochemicals Ltd. (88.80, 12.05%), Bombay Burmah Trading Corporation Ltd. (1,102.05, 8.82%) and Aegis Logistics Ltd. (353.05, 7.56%).

Top high volume losers on BSE were KIOCL Ltd. (185.90, -2.08%), FSN E-Commerce Ventures Ltd. (143.35, -1.48%) and KNR Constructions Ltd. (245.00, -0.91%).

MMTC Ltd. (33.40, 4.70%) was trading at 13.4 times of weekly average. Sun Pharma Advanced Research Company Ltd. (218.65, 6.27%) and Jindal Worldwide Ltd. (321.40, 4.49%) were trading with volumes 6.8 and 6.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

44 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Bajaj Auto Ltd. (4,890.05, 5.72%), Bajaj Finance Ltd. (7,838.75, -0.28%) and Bank of Baroda (205.20, 1.41%).

10 stocks climbed above their 200 day SMA including Aegis Logistics Ltd. (353.05, 7.56%) and Sun Pharma Advanced Research Company Ltd. (218.65, 6.27%). 4 stocks slipped below their 200 SMA including Eicher Motors Ltd. (3,309.75, -2.71%) and KNR Constructions Ltd. (245.00, -0.91%).