Trendlyne Marketwatch
Trendlyne Marketwatch
18 Jul 2023
Market closes higher, Polycab India's Q1FY24 net profit grows 81% YoY to Rs 402.8 crore

Trendlyne Analysis

Nifty 50 closed at 19,749.25 (37.8, 0.2%) , BSE Sensex closed at 66,795.14 (205.2, 0.3%) while the broader Nifty 500 closed at 16,872.00 (-0.1, 0%). Of the 1,959 stocks traded today, 691 were on the uptick, and 1,208 were down.

Indian indices closed in the green, with the Nifty 50 closing at an all-time high for a third consecutive trading session. The volatility index, Nifty VIX, rose over 2.9% but closed below the 12% level. Polycab India surged to its all-time high of Rs 4,148.7 per share as its net profit grew 81% YoY to Rs 402.8 crore in Q1FY24.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, underperforming the benchmark index. Nifty Energy and Nifty IT closed higher than Monday’s close. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day.

Major Asian indices closed in the red, except for India’s BSE Sensex and Japan’s Nikkei 225, which closed higher. European indices traded flat as investors looked ahead to Q1FY24 earnings announcements from major companies. Brent crude oil futures traded in the green after falling over 3.5% in the past two trading sessions.

  • Relative strength index (RSI) indicates that stocks like 360 One Wam, Sunteck Realty, RBL Bank and C.E. Info Systems are in the overbought zone.

  • Adani Enterprises rises as Gautam Adani addresses shareholders, dismissing Hindenburg’s report as a "malicious attempt to damage the group's reputation". He adds, “Even during this crisis, the company raised several billions from international investors. No credit agency in India or abroad cut any ratings." He reassures shareholders that the group remains resilient and focused on its long-term goals.

  • ICICI Prudential Life Insurance Company falls despite a 31.7% YoY increase in net profit to Rs 206.2 crore in Q1FY24. Its revenue surges by 52% YoY, but the value of new business drops by 7% YoY. The company appears in a screener of stocks with rising quarterly profits.

  • Polycab India surges to its all-time high of Rs 4,128.6 per share as its net profit grows 81% YoY to Rs 402.8 crore in Q1FY24. Revenue also improves by 42% YoY on the back of an increase in revenue from the wires & cables and international businesses. It shows up in a screener of stocks with prices above short, medium and long-term moving averages.

  • Chetan Ahya, Chief Asia Economist at Morgan Stanley, maintains his forecast of 6.5% average growth for India in FY24. He expects inflation to be around 5% in Q1CY24, and RBI to begin interest rate cuts in February 2024.

  • Ganesh Housing Corp surges as its net profit jumps 12.3x to Rs 161.3 crore in Q1FY24. Revenue also grows 6.4x to Rs 270.4 crore, backed by increased pre-sales and a strong pipeline of projects. It appears in a screener of stocks that have seen improvements in quarterly revenue, net profit, and operating profit margin.

  • Satin Creditcare Network falls as Nordic Microfinance Initiative Fund III sells a 2.2% equity stake (20.4 lakh shares) worth Rs 35.8 crore in the company. The transaction was at Rs 175.5 per share for 15.6 lakh shares and Rs 176.2 per share for the remaining 4.4 lakh shares. The company appears in a screener of stocks with declining quarterly MF shareholdings.

  • Netweb Technologies India's Rs 631 crore IPO gets bids for 6.71X the available 88.6 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 6.84X of the available 44.9 lakh shares on offer.

  • HDFC Securities downgrades its rating on Angel One to ‘Add’ from ‘Buy’ but increases the target price to Rs 1,815 from Rs 1,800. This implies an upside of 20.7%. The brokerage cites moderation in the number of orders, slower customer acquisition, and increased employee costs for the downgrade. It also believes that the stock is trading at expensive levels after its uptrend over the past six months.

  • One 97 Communications (Paytm) is falling as SoftBank reportedly sells an additional 2% stake worth $250-300 million in the company. This will reduce the investment bank's ownership in the company to below 10% for the first time.

  • Ashish Kacholia adds Ugro Capital to his portfolio in Q1FY24, buying a 1.6% stake in the company. He also increases his stake in Aditya Vision to 2% by purchasing an additional 0.9% stake during the quarter.

  • Happiest Minds Technologies completes its fundraising round of Rs 500 crore through qualified institutional placements. The board has approved the allotment of 54,11,255 shares at an average price of Rs 924 per share. The company appears in a screener of stocks with increasing FII/FPI shareholdings.

  • Rama Steel Tubes is surging as it signs a memorandum of understanding (MoU) with JSW Steel to procure 1 lakh tonnes of hot rolled coils (HRC) used in the manufacturing of steel tubes and pipes. The MoU also establishes Rama Steel Tubes as the official distributor of HRC for JSW Steel in the western region.

  • Dolly Khanna buys a 0.5% stake in Deepak Spinners in Q1FY24. She now holds a 1.7% stake in the company.

  • Endurance Technologies rises as it acquires an additional 5% equity stake (6,850 shares) in Maxwell Energy Systems. The deal was executed at an average price of Rs 10,136 per share, totalling Rs 6.9 crore. Post this deal, Endurance will have a 56% equity stake in Maxwell.

  • Rallis India rises more than 3% in trade after Tata Chemicals acquires 97 lakh shares (4.9% equity) in the company, amounting to Rs 208.6 crore, through a block deal. This will increase Tata Chemicals' shareholding to 55.04%.

  • Patanjali Ayurved, promoter of Patanjali Foods, sells a 7% stake (2.5 lakh equity shares) in the company on Thursday and Friday.

  • Texmaco Rail & Engineering is falling despite its board's approval to raise funds up to Rs 500 crore through various financial instruments like preferential issue, rights issue, qualified institutional placement, follow-on public offer, or a combination of these. It appears in a screener of stocks which are in the 'Sell' zone.

  • Tata Elxsi falls as its net profit drops by 6.3% QoQ to Rs 188.9 crore in Q1FY24. Its revenue rises marginally by 1.5% QoQ on the back of muted growth in the software development & services and system integration & support services segments. The company appears in a screener of stocks with declining quarterly net profit.

  • Amara Raja Batteries falls more than 4% in trade as reports suggest that 2.72 crore shares (15.9% equity), amounting to Rs 1,788.3 crore, have changed hands in a large trade. Clarios ARBL Holding LP is the likely seller in this transaction.

  • Hindware Home Innovation appoints Salil Kappoor as the Chief Executive Officer of the company, with effect from today.

  • IDFC reappoints Mahendra N Shah as Managing Director, effective from October 1, 2023, for a period of one year. The board also appoints Bipin Gemani as the Whole Time Director and Chief Financial Officer, effective from July 17, 2023.

  • Macquarie maintains its ‘Outperform’ rating on HDFC Bank with a target price of Rs 2,110. The brokerage highlights that the bank witnessed low deposit growth due to seasonality in Q1, but loan growth improved on CRB (commercial and rural banking), and personal & home loans.

  • Infosys is rising as it enters into a framework agreement with one of its existing clients to provide AI and automation-led services. The deal is worth $2 billion (Rs 16,411 crore) over the next five years.

  • Sheela Foam rises as it acquires a controlling stake of 94.7% in Kurl-On Enterprises for Rs 2,035 crore. The company has also bought a 35% equity stake in HoK-Furlenco for Rs 300 crore. These deals allow Sheela Foam to expand its customer base and enter the branded furniture and rental furniture segment.

  • LTIMindtree’s Q1FY24 net profit rises 3.4% QoQ to Rs 1,151.5 crore, led by growth in the hi-tech, media and entertainment vertical and a fall in sub-contractor costs. Its revenue marginally increases by 0.1% QoQ due to weakness in the banking, financial services, and insurance segments. The stock shows up in a screener for companies with high momentum scores.

Riding High:

Largecap and midcap gainers today include Polycab India Ltd. (4,128.15, 5.45%), Supreme Industries Ltd. (3,479.00, 3.68%) and Infosys Ltd. (1,475.20, 3.67%).

Downers:

Largecap and midcap losers today include Indian Overseas Bank (25.70, -3.20%), LTIMindtree Ltd. (5,001.15, -2.60%) and One97 Communications Ltd. (840.40, -2.57%).

Volume Rockets

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

Top high volume gainers on BSE included Godrej Agrovet Ltd. (499.15, 5.62%), Polycab India Ltd. (4,128.15, 5.45%) and Saregama India Ltd. (447.75, 5.35%).

Top high volume losers on BSE were CCL Products India Ltd. (620.55, -8.59%), Amara Raja Batteries Ltd. (642.80, -6.16%) and Happiest Minds Technologies Ltd. (935.70, -6.00%).

Sheela Foam Ltd. (1,236.90, 4.20%) was trading at 13.6 times of weekly average. Vaibhav Global Ltd. (346.15, 4.89%) and Rallis India Ltd. (220.90, 2.72%) were trading with volumes 11.9 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

40 stocks hit their 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - AIA Engineering Ltd. (3,509.00, 4.46%), Apollo Hospitals Enterprise Ltd. (5,162.60, -1.09%) and Bajaj Auto Ltd. (4,860.60, 0.57%).

Stock making new 52 weeks lows included - Rajesh Exports Ltd. (509.45, -2.06%).

15 stocks climbed above their 200 day SMA including Vaibhav Global Ltd. (346.15, 4.89%) and Sheela Foam Ltd. (1,236.90, 4.20%). 10 stocks slipped below their 200 SMA including Aptus Value Housing Finance India Ltd. (265.80, -3.68%) and India Cements Ltd. (210.10, -2.03%).

 
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