Trendlyne Analysis

Nifty 50 closed at 19,672.35 (-72.7, -0.4%), BSE Sensex closed at 66,384.78 (-299.5, -0.5%) while the broader Nifty 500 closed at 16,865.15 (-39.2, -0.2%). Of the 1,986 stocks traded today, 954 were on the uptick, and 964 were down.

Indian indices dropped from the day’s high and closed in the red, with the Nifty 50 closing at 19,672. The volatility index, Nifty VIX, rose by 1.4% and closed at 11.6 points. Kotak Mahindra Bank’s net profit increased by 67% YoY to Rs 3,452 crore in Q1FY24.

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed lower, following the benchmark index. Nifty Healthcare and Nifty Pharma closed higher, compared to Friday’s closing levels. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 0.9%.

Most European indices trade flat, except for Switzerland’s Swiss Market Index trading higher. US indices futures trade higher, indicating a positive start. The data released by Hamburg Commercial Bank (HCOB) indicates that France’s composite PMI for July has dropped to 46.6, against the estimates of 47.7. The reading has further cemented the recessionary fears in Europe.

• Relative strength index (RSI) indicates that stocks like Mphasis, Union Bank of India, Tanla Platforms and Zensar Technologies are in the overbought zone.

• TVS Motor Co is falling despite its Q1FY24 net profit rising 42.2% YoY to Rs 434.3 crore and revenue increasing by 23.8% YoY, led by healthy growth in the automotive vehicles and financial services segments. The stock shows up in a screener for companies with improving cash flows and high durability scores.

• Tata Teleservices, Shyam Metalics and Energy and Sona BLW Precision Forgings' weekly average delivery volumes rise ahead of their Q1FY24 results on Thursday.

• Canara Bank rises as its net profit jumps by 74.8% YoY to Rs 3,535 crore in Q1FY24. Its net interest income increases by 27.7% YoY. The bank's asset quality improves as gross and net NPAs fall by 183 bps and 91 bps YoY respectively. The company appears in a screener of stocks with increasing quarterly profits.

• IDBI Bank is rising as its Q1FY24 net profit increases by 61.9% YoY to Rs 1,224.2 crore, while its net interest income jumps 61% YoY. The bank's net interest margin (NIM) also expands by 178 bps YoY to 5.8%. Its asset quality improves as its GNPA and NNPA decline by 14.85 percentage points and 0.82 percentage points YoY respectively.

• United Spirits and Mazagon Dock Shipbuilders touch their 52-week highs of Rs 1,050 and Rs 1,957.8 respectively. The former has risen 15.5% over the past month, while the latter increased by 58.1%.

• GMR Power and Urban Infra is rising as reports suggest that its step-down subsidiary, GMR Smart Electricity Distribution Private Limited, has received an order worth Rs 7,593 crore to install 75 lakh smart meters in Uttar Pradesh. It appears in a screener of stocks with strong momentum.

• Kotak Mahindra Bank falls despite its net profit rising by 67% YoY to Rs 3,452 crore in Q1FY24. Its net interest income also increases by 33% YoY on the back of robust growth in corporate banking, insurance, and retail banking segments. The bank's asset quality improves as gross and net NPAs decline by 52 bps and 26 bps YoY respectively. The company appears in a screener of stocks with strong momentum.

• SRF's Q1FY24 net profit falls by 41% YoY to Rs 359 crore, while its revenue decreases by 14.3% YoY to Rs 3,338 YoY. A downcycle in the packaging film business led to the profit decline. Managing Director Ashish Bharat says, "This is expected to continue for the medium term." The company features in a screener for stocks with low debt.

• Power Finance Corp touches an all-time high of Rs 244 per share as it signs 20 memorandums of understanding (MoUs) worth approximately Rs 2.4 lakh crore. The MoUs have been signed with companies like Adani, Greenco and ReNew to fund projects in the clean energy sector.

• Computer hardware, other leisure facilities and sugar industries rise by more than 3% in trade today.

• ITC falls sharply as the board of directors grants an in-principle approval for the demerger of its hotel business. The company will hold a 40% stake in the new entity.

  ITC Limited's Board of Directors has granted in-principle approval for the demerger of the Hotels Business through a scheme of arrangement.
  
  Here's more about the proposed restructuring ????https://t.co/bTDC3t6m5a#ITC @ITCCorpCom #Hotel

  — Moneycontrol (@moneycontrolcom) July 24, 2023

• Samvardhana Motherson International’s arm Samvardhana Motherson Automotive Systems signs a pact to acquire assets and shares of the Germany-based Dr. Schneider Group for an enterprise value of 118.3 million euros (Rs 1,074 crore). The German company is a manufacturer of high-end electronic polymer components. Through this acquisition, the firm aims to gain access to innovative electronic polymer components.

• Rites wins an order worth Rs 500 crore from CFM, Mozambique, for the supply of 10 locomotives and 150 wagons.

• CreditAccess Grameen surges to an all-time high of Rs 1,427 per share as its net profit jumps 151.5% YoY to Rs 348.5 crore in Q1FY24. Net interest income (NII) grows 65.4% YoY, backed by an increase in the company's gross loan portfolio. The lender's asset quality improves, with its gross and net NPAs declining by 221 bps and 88 bps YoY respectively. It shows up in a screener of stocks with increasing revenue for four consecutive quarters.

• HDFC Securities keeps its ‘Buy’ rating on Persistent Systems and raises its target price to Rs 6,430 from Rs 6,410. This implies an upside of 34%. The brokerage expects the company to outperform its peers due to robust client mining and an increase in its large client count. The brokerage believes that the firm is well-positioned to double its revenue over the next four years.

• Bain Capital is set to acquire a 90% share in Adani Capital and Adani Housing. The deal will result in a total purchase of the Adani family's private stake in the business. It will infuse $120 million  in primary capital and $50 million in liquidity line to facilitate the NBFC's growth.

  #AdaniEnterprises’ shares went up today as the group made a move to exit the NBFC space. Bain Capital has agreed to acquire a substantial 90 per cent stake in Adani Capital and Adani Housing. https://t.co/s73I5roSol

  — businessline (@businessline) July 24, 2023

• Biocon falls more than 4% as the USFDA conducts inspections at its manufacturing facility in Malaysia. The agency has issued Form 483 with eight observations relating to enhancing the operational procedures and strengthening training programmes. It appears in a screener of companies with declining net cash flows.

• Vedanta falls as its net profit decreases by 40.3% YoY to Rs 2,640 crore in Q1FY24. Its revenue also drops by 12.9% YoY due to reduced performance in the domestic zinc & lead, aluminum, and international zinc segments. Its EBITDA margin declines by 7.9 percentage points on the back of increased raw material and finance expenses. The company appears in a screener of stocks with declining net cash flow.

• Vijay Kedia sells a 0.3% stake in Repro India in Q1FY24. He now holds a 6.8% stake in the company.

• Jayant Acharya, MD & CEO of JSW Steel, says the company’s realisations were aided by an improvement in export booking and value-added products in Q1. He adds that coking coal price will drop by $45-50 per tonne in Q2FY24. He also expects an improvement in the company's debt situation in the future.

  #OnCNBCTV18 | Coking coal cost will decrease by $45-50/tonne in Q2FY24. We are interested in Canada's Teck coal but too early to commit, interested in NMDC Steel biz but yet to know the status of bids: Jayant Acharya of JSW Steel to CNBC-TV18 pic.twitter.com/uXKDJUHIAC

  — CNBC-TV18 (@CNBCTV18Live) July 24, 2023

• Ashish Kacholia cuts stake in Creative Newtech to below 1% in Q1FY24, as against a 2.7% stake held in Q4FY23.

• Sunil Singhania sells a 1.3% stake in Rajshree Polypack in Q1FY24. He now holds a 6.2% stake in the company.

• CLSA maintains its ‘Underperform’ rating on HDFC Life Insurance Co with a target price of Rs 680. The brokerage says the company has witnessed sound growth in APE (annual premium equivalent) across various products and channels in Q1FY24. However, it highlights a limited upside for HDFC Life in the near term.

  Brokerage Radar | CLSA on @HDFCLIFE: Maintain Underperform; Limited near-term upside @CLSAInsights #StockMarket pic.twitter.com/MOx2PJiGLb

  — ET NOW (@ETNOWlive) July 24, 2023

• One97 Communications rises as its net loss contracts by 45% YoY to Rs 358 crore in Q1FY24. Its revenue grows by 39% YoY on the back of robust growth in payment & financial and cloud services. The company appears in a screener of stocks with increasing quarterly revenue.

• Tejas Networks falls as its net loss drops by 295.9% YoY to Rs 26.3 crore due to increased raw material and employee benefit expenses. However, its revenue rises by 43.6% YoY. The company appears in a screener of stocks with declining quarterly net profit.

• Reliance Industries is falling as its net profit decreases 5.9% YoY to Rs 18,258 crore in Q1FY24. Revenue also drops 4.7% YoY due to a plunge in the order-to-cash (O2C) business caused by dipping crude oil prices. It features in a screener of stocks with declining revenue for two consecutive quarters.

Riding High:

Largecap and midcap gainers today include REC Ltd. (172.95, 6.86%), NHPC Ltd. (49.90, 6.17%) and Power Finance Corporation Ltd. (239.75, 5.62%).

Downers:

Largecap and midcap losers today include United Spirits Ltd. (977.65, -5.91%), Biocon Ltd. (249.50, -5.47%) and One97 Communications Ltd. (802.00, -5.01%).

Movers and Shakers

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

Top high volume gainers on BSE included Aarti Drugs Ltd. (605.50, 18.60%), SJVN Ltd. (57.10, 13.86%) and REC Ltd. (172.95, 6.86%).

Top high volume losers on BSE were Hikal Ltd. (280.40, -7.28%), One97 Communications Ltd. (802.00, -5.01%) and Indraprastha Gas Ltd. (470.55, -4.80%).

IFB Industries Ltd. (845.00, 1.15%) was trading at 12.2 times of weekly average. CreditAccess Grameen Ltd. (1,373.00, 4.53%) and BASF India Ltd. (2,660.00, 1.88%) were trading with volumes 9.3 and 8.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

54 stocks overperformed with 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3,548.80, 1.03%), Ashok Leyland Ltd. (182.45, 0.33%) and Aurobindo Pharma Ltd. (785.30, 0.74%).

11 stocks climbed above their 200 day SMA including Aditya Birla Sun Life AMC Ltd. (401.80, 3.30%) and KRBL Ltd. (379.90, 2.68%). 6 stocks slipped below their 200 SMA including Rallis India Ltd. (213.15, -2.20%) and Trident Ltd. (33.05, -0.60%).