Trendlyne Analysis

Nifty 50 closed at 19,331.80 (-165.5, -0.9%), BSE Sensex closed at 65,280.45 (-505.2, -0.8%) while the broader Nifty 500 closed at 16,564.90 (-130.2, -0.8%). Market breadth is in the red. Of the 1,969 stocks traded today, 742 were on the uptick, and 1,161 were down.

Indian indices extend the losses from the afternoon session with the Nifty 50 closing just below at 19,331 mark. The volatility index, Nifty VIX drops by 2.6% and closes at 11.5 points. Sobha’s Q1FY24 sales rise by 27.9% YoY to reach a record high of Rs 1,464.7 crore beating the consensus estimates by 61%.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Auto, Nifty PSU Bank and Nifty Media closed higher from Thursday’s closing levels. All other major sectoral indices closed lower. According to Trendlyne’s sector dashboard, media emerged as the top-performing sector of the day with a rise of over 2.1%.

Most European indices trade in the green except for England’s FTSE 100 and Switzerland’s SMI trading lower. US indices futures trade lower indicating a negative start. Twitter has threatened to sue Meta over Facebook’s new app launch ‘Threads’, which is on similar lines to Twitter.

• Apollo Tyres beats Ceat in YoY revenue growth, PE ratio, Trendlyne Valuation score and MF holdings. But it lags in YoY net profit growth, Trendlyne Durability score, one-year price change and FII holdings.

• Wipro and Federal Bank rise 3.8% and 10.8% respectively over the past week, ahead of their Q1FY24 results on July 13.

• Indian Railway Catering & Tourism Corporation's annual return on equity (RoE) stands at 40.6% in FY24, showing a rise of 23.2 percentage points over the past five years.

• Zen Technologies rises as it receives an order worth Rs 160 crore from the Government of India. The contract comes under the Government's Indigenous Design and Development (IDDM) initiative. The company appears in a screener of stocks with increasing quarterly profits.

• Aster DM Healthcare rises as it acquires an additional 2.4% stake (23,58,637 shares) in its subsidiary, Malabar Institute of Medical Sciences. The deal was executed at an average price of Rs 100 per share, resulting in a total of Rs 23.6 crore. With this deal, Aster now owns a 78.4% stake in the subsidiary.

• Talbros Automotive Components is rising as it bags multi-year contracts worth Rs 400 crore from domestic and overseas customers. The orders are expected to be executed over a period of five to seven years. The stock shows up in a screener for companies with high TTM EPS growth.

• Rakesh Jhunjhunwala’s portfolio cuts a 0.1% stake in Raghav Productivity Enhancers in Q1FY24, bringing the holding to 5.1%.

• Kalyan Jewellers rises 6.4% to reach its all-time high of Rs 166.5 per share, aiding it to appear in a screener of stocks that have gained more than 20% in the past month. It ranks high on Trendlyne's checklist with a score of 65.2%. However, the stock is in the 'Sell' zone.

• Vikas Gupta, Managing Director of PG Electroplast, expects the company to achieve the revenue guidance of Rs 2,800 crore in FY24. He adds that the firm is aiming for a revenue growth contribution of 40-50% in the room AC category.

  #OnCNBCTV18 | Should be able to achieve revenue guidance of Rs 2,800 cr, looking at revenue growth of 40-50% in the room AC segment in FY24
  
  Setting up a new facility for TV mfg with a capacity of 2 million units
  
  Vikas Gupta, PG Electroplast to CNBC-TV18: pic.twitter.com/3UURcPLM6j

  — CNBC-TV18 (@CNBCTV18Live) July 7, 2023

• Dolly Khanna buys a 0.1% stake in Mangalore Chemicals & Fertilizers in Q1FY24, bringing her holdings in the company to 1.3%.

• Power stocks like Bharat Heavy Electricals, Power Grid Corp of India, NHPC, Adani Transmission and NTPC are falling in trade. All constituents of the broader sectoral index, BSE Power, are also trading in the red.

• Olectra Greentech rises as it receives an order worth Rs 10,000 crore from the Maharashtra State Road Transport Corporation (MSRTC) for 5,150 electric buses. The project is expected to be completed within 24 months. The company appears in a screener of stocks with strong momentum.

• Foreign institutional investors invest Rs 7,261.3 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, stock options witness the highest outflow of Rs 2,404.9 crore from foreign investors. Mutual funds also invest Rs 1,768.3 crore in the Indian markets.

• Morgan Stanley maintains its ‘Overweight’ rating on Dabur with a target price of Rs 606. The brokerage highlights the improvement in demand trends in rural and urban regions and expects the company's margins to improve due to the moderation in inflation.

  Brokerage Radar | @MorganStanley on Dabur: Maintain Overweight; Easing inflation to expand margins after nine quarter of decline@DaburIndia #Inflation #StockMarket pic.twitter.com/7OlPnPD16J

  — ET NOW (@ETNOWlive) July 7, 2023

• HDFC Securities downgrades Eicher Motors to 'Reduce' from 'Add' and lowers the target price to Rs 3,086 from Rs 3,715. This indicates a downside of 3.6% from the current market price. The brokerage is concerned about the impact of new launches by Hero MotoCorp and Bajaj Auto in the premium segment, which could put pressure on Eicher Motors' margins.                                                                                                                                                                         

• PSU banks like Central Bank of India, Bank of India, Punjab & Sind Bank, Bank of Maharashtra and Punjab National Bank are falling in trade. All constituents of the broader sectoral index, Nifty PSU Bank, are also trading in the red.         

• Praj Industries surges more than 5% as it signs a memorandum of understanding (MoU) with Indian Oil to increase the production capacity of biofuels in India. The companies had previously formed a 50:50 joint venture in October 2021 for the same. Under the MoU, the companies will produce biofuels like sustainable aviation fuel (SAF), compressed bio-gas (CBG) and biodiesel, among others.                                                                                                                                    

• Indian rupee depreciates 17 paise to 82.68 from the previous close of 82.51 against the US dollar in early trade today. This is due to robust US private hiring statistics, which has raised concerns about further policy tightening by the Federal Reserve.

  #Rupee Check | Rupee opens at 82.68/$ vs Thursday’s close of 82.51/$#RupeeVsDollar #USDINR pic.twitter.com/pEiID1qFP1

  — CNBC-TV18 (@CNBCTV18Live) July 7, 2023

• Shares of ideaForge Technology debut on the bourses at a 93.5% premium to the issue price of Rs 672. The Rs 567 crore IPO has received bids for 106 times the total shares on offer.

• Intellect Design Arena is falling as it reportedly loses a contract to develop the Government e-Marketplace (GeM) portal, which constituted 10% of the firm's FY23 revenue. It appears in a screener of stocks with high volume and that are top losers.

• Jefferies maintains its 'Buy' rating on Allcargo Logistics but lowers its target price to Rs 370, citing the demerger. The brokerage highlights the company's focus on international trade and domestic markets.

  Brokerage Radar | @Jefferies on Allcargo: Maintain Buy; Standalone Health Insurers, private multi-line insurers and public insurers saw rises of 24%, 17% and 9% #StockMarket pic.twitter.com/vaU5VNaNq4

  — ET NOW (@ETNOWlive) July 7, 2023

• Tata Steel India’s Q1FY24 crude steel production rises by 1.8% YoY to 5 million tonnes, led by a ramp-up at Neelachal Ispat Nigam. Its deliveries grow by 18% YoY, driven by healthy growth in domestic demand. However, Tata Steel Europe’s crude steel production falls 25.8% YoY to 1.8 million tonnes.

• Titan rises as its jewelry sales surge by 21% YoY, watches & wearables sales by 13%, and eyecare segment by 10% YoY in Q1FY24. The strong demand and popularity of premium brands contribute to the growth. Additionally, the company has added 57 new stores during the same period. Titan appears in a screener of stocks with improving annual net profits.

• The National Company Law Tribunal approves the demerger of Reliance Industries’ financial unit into Reliance Strategic Investments, which will be renamed Jio Financial Services. The company announced that it will take the necessary steps to fix the record date for allotment and the listing of Reliance Strategic Investments’ equity shares. The stock shows up in a screener for companies with improving cash flows and high durability scores.

Riding High:

Largecap and midcap gainers today include Sona BLW Precision Forgings Ltd. (536.90, 2.47%), Titan Company Ltd. (3,163.85, 1.85%) and Hindustan Zinc Ltd. (341.25, 1.58%).

Downers:

Largecap and midcap losers today include Macrotech Developers Ltd. (699.00, -4.00%), Mahindra & Mahindra Financial Services Ltd. (330.30, -3.12%) and Ambuja Cements Ltd. (418.90, -2.92%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Sunteck Realty Ltd. (335.60, 12.43%), Praj Industries Ltd. (398.75, 7.60%) and Kalyan Jewellers India Ltd. (163.35, 6.17%).

Top high volume loser on BSE was Intellect Design Arena Ltd. (588.75, -5.58%).

Sobha Ltd. (578.40, 4.14%) was trading at 6.9 times of weekly average. Granules India Ltd. (308.60, 2.56%) and PVR INOX Ltd. (1,440.00, 4.72%) were trading with volumes 4.4 and 3.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

33 stocks overperformed with 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Bank of Baroda (205.30, -0.07%), Bharat Petroleum Corporation Ltd. (390.80, -0.64%) and Bosch Ltd. (19,749.95, 1.20%).

Stock making new 52 weeks lows included - Aarti Industries Ltd. (474.40, -2.39%).

12 stocks climbed above their 200 day SMA including Praj Industries Ltd. (398.75, 7.60%) and Sobha Ltd. (578.40, 4.14%). 10 stocks slipped below their 200 SMA including Container Corporation of India Ltd. (673.90, -2.33%) and Aegis Logistics Ltd. (337.50, -2.29%).