Trendlyne Analysis

Nifty 50 closed at 19,680.60 (8.3, 0.0%), BSE Sensex closed at 66,355.71 (-29.1, 0.0%) while the broader Nifty 500 closed at 16,896.90 (31.8, 0.2%). Of the 1,948 stocks traded today, 943 were gainers and 941 were losers.

Indian indices switched between losses and gains throughout the day and settled flat, with the Nifty 50 closing below the 19,700 mark. The Indian volatility index, Nifty VIX, fell sharply by over 12%. Asian Paints fell over 4% despite its Q1FY24 net profit rising by 52.5% YoY to Rs 1,550.4 crore due to lower raw material and inventory expenses.

Nifty Midcap 100 closed in the green, outperforming the benchmark index. Nifty Metal and Nifty Energy closed sharply higher than Monday’s close. According to Trendlyne's sector dashboard, Utilities 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 flat. European indices traded in the green, following the US index futures, which also traded higher. Investors are waiting for corporate earnings from major companies and keeping an eye on cues from the Federal Reserve and the European Central Bank regarding interest rate hike decisions.

• Money flow index (MFI) indicates that stocks like Aarti Drugs, Rites, Gland Pharma, and Sterling and Wilson Renewable Energy are in the overbought zone.

• 5paisa Capital and Jindal Steel & Power touch their 52-week highs of Rs 472.35 and Rs 667.9 respectively. The former has risen 30.5% over the past month, while the latter increased by 16.8%.

• Aurobindo Pharma rises as its wholly owned subsidiary, Eugia Pharma Specialities, receives approval from the USFDA to manufacture and market Plerixafor Injection. Plerixafor is used in the preparation of autologous stem cells for transplantation in patients with non-Hodgkin’s lymphoma or multiple myeloma. It appears in a screener of stocks with strong momentum.

• Jubilant Foodworks rises despite its net profit falling by 74.1% YoY to Rs 28.9 crore and revenue increasing by 6.2% YoY. The decline in profit is due to the rise in input cost, employee benefits, and depreciation expenses. The company appears in a screener for stocks with low debt.

• Utility stocks like Adani Green Energy, SJVN, Reliance Infrastructure, NAVA and Inox Green Energy Services are rising in trade. The broader sectoral index, S&P BSE Utilities, is also trading in the green.

• Bajaj Auto is falling despite its Q1FY24 net profit rising by 41.3% YoY to Rs 1,644.1 crore and EBITDA margin expanding by 280 bps YoY to 19%. Its revenue increases by 28.8% YoY driven by strong volume growth and healthy domestic demand. The stock shows up in a screener for companies with book value per share increasing over the past two years.

• Asian Paints falls despite its Q1FY24 net profit rising by 52.5% YoY to Rs 1,550.4 crore due to lower raw material and inventory expenses. Its revenue grows by 6.7% YoY on the back of robust growth in the domestic decorative segment. The company appears in a screener of stocks nearing a 52-week high with significant volumes.

• KPIT Technologies rises as its Q1FY24 net profit increases by 20.1% QoQ to Rs 134 crore due to lower inventory expenses. Its revenue also surges by 7.9% QoQ on the back of robust growth in the UK and Europe segments. The company appears in a screener of stocks with improving quarterly profits.

• SpiceJet is rising as the DGCA removes it from 'enhanced surveillance' after conducting 51 spot checks of 23 aircraft. The regulator has made 95 observations, which they found were of routine nature, and highlighted that the airline took suitable maintenance action.

  #JustIn | Spicejet has been taken off the enhanced surveillance regime by DGCA.#Aviation #DGCA #spicejet #IndianAviation pic.twitter.com/8uPsupbxtm

  — Business Standard (@bsindia) July 25, 2023

• ICICI Securities downgrades its rating on Ashok Leyland to ‘Hold’ from ‘Add’ but increases the target price to Rs 185 from Rs 176, implying an upside of 1.6%. The brokerage believes that the stock’s positives are already priced in and is trading at an expensive valuation given its recent uptrend. However, it sees the company’s margins and market share expanding over the coming quarters.

• Reliance Industries is rising as it enters an agreement with Mercury Holdings SG Pte, a joint venture between Brookfield Infrastructure and Digital Realty, to acquire a 33.3% stake in each of the five Indian special purpose vehicles of Mercury Holdings. The total investment for this acquisition is Rs 378 crore.

• Larsen & Toubro's power transmission and distribution arm secures new orders worth Rs 1,000-2,500 crore. While one order is to implement IT infrastructure in central Gujarat, another is to build a transmission line in Jharkhand. The third and fourth orders involve the construction of a high-voltage direct current transmission line and a substation in West Asia and Malaysia respectively.

• RHI Magnesita India rises as Dalmia OCL acquires the remaining 98 lakh shares (49% equity) of RHI Magnesita Seven Refractories, a wholly owned subsidiary of RHI Magnesita India, for Rs 61.8 crore. It appears in a screener of stocks in the Nifty 500 with consistent high returns over five years.

• Shoppers Stop is falling as its net profit plunges 36.5% YoY to Rs 14.9 crore in Q1FY24. However, its revenue increases by 4.8% YoY, aided by improved sales in the first citizen loyalty customers, private brands, and beauty segments. It features in a screener of stocks with decreasing net profit and profit margin (YoY).

• Jyothy Labs touches a new 52-week high as its net profit increases by 101.7% YoY to Rs 96.3 crore in Q1FY24 on the back of decreased finance costs. Its revenue also grows by 15.1% YoY, driven by the dishwashing and fabric care segment. The stock has reported its fifth consecutive quarter of margin expansion.

  JYOTHY LAB
  - Stellar set once again
  - At a time when HUL cites competitive intensity
  - Jyothy Labs reports incredible growth & margin expansion
  - 5th straight quarter of margin expansion
  
  Jyothy Lab Q1FY24
  Revenue +15% at 687 Cr
  EBITDA +96% at 117.4 Cr
  PAT +102% at 96.3 Cr…

  — Mangalam Maloo (@blitzkreigm) July 25, 2023

• Aarti Drugs rises to a new 52-week high of Rs 267.5 as its net profit increases by 37.5% YoY to Rs 47.9 crore in Q1FY24 due to lower raw material and inventory expenses. Its revenue grows by 6.3% YoY, driven by the domestic segment. Additionally, its board has approved a share buyback of 0.7% equity (6.7 lakh shares) at Rs 900 per share. The company appears in a screener of stocks with strong momentum.

• CreditAccess Grameen splits the roles of Managing Director (MD) and Chief Executive Officer (CEO), with effect from August 1. It promotes Ganesh Narayan as the CEO from his previous role of Deputy CEO, while Udaya Kumar Hebbar (current MD and CEO) will continue to lead as the MD.

• Metal & mining stocks like APL Apollo Tubes, JSW Steel, National Aluminium Co, Tata Steel and Jindal Steel & Power are rising in trade. All constituents of the broader sectoral index, BSE Metal, are also trading in the green.

• K Satyanarayana Raju, MD & CEO of Canara Bank, says the bank has witnessed healthy loan growth in Q1FY24. He also highlights that there is stress on NIMs due to the high cost of funds. He expects credit cost to be in the range of 1.1-1.2% in FY24.

  #1QWithCNBCTV18 | Loan growth has been healthy, Q1 growth is in-line with the guidance of retail & corporate share
  
  There is stress on NIMs due to the high cost of funds. Expect credit cost to be between 1.1-1.2% in FY24
  
  K Satyanarayana Raju, Canara Bank to CNBC-TV18 pic.twitter.com/jfQNRgWfEK

  — CNBC-TV18 (@CNBCTV18Live) July 25, 2023

• Porinju Veliyath sells a 0.6% stake in Cupid for approx Rs 2.5 crore in a bulk deal on Monday.

• JK Paper rises as its net profit increases by 17.8% YoY to Rs 308.7 crore in Q1FY24 due to lower raw material, inventory, and finance expenses. Its revenue also grows by 11.9% YoY on the back of robust performance in the paper and packaging segment. The company appears in a screener of stocks with improving quarterly net profits.

• SJVN surges to a new all-time high of Rs 62.7 per share as it bags orders for five hydropower projects, totalling 5097 MW, from the Arunachal Pradesh government. All the projects are located in the Dibang Basin, with an estimated outlay of Rs 50,000 crore.

• CLSA downgrades its rating on DLF to 'Outperform' with a target price of Rs 547. The brokerage believes that housing demand momentum will continue, and highlights that the company has a sound new launch pipeline for H2FY24.

  Brokerage Radar | CLSA on DLF: Downgrade to Outperform; While demand for non-SEZ office is strong, SEZ remains a concern@CLSAInsights #DLF pic.twitter.com/NbmnuTHXCc

  — ET NOW (@ETNOWlive) July 25, 2023

• DCM Shriram is falling as its Q1FY24 net profit decreases 77.7% YoY to Rs 56.6 crore due to a 37.6% YoY rise in input costs. Its revenue also drops by 2.5% YoY, led by a decline in the chloro-vinyl and sugar segments. The stock shows up in a screener for companies with declining net cash flows.

• Relaxo Footwear rises as its Q1FY24 net profit increases by 45.6% YoY to Rs 56.3 crore. Its revenue also grows by 11.1% YoY. The company appears in a screener of stocks with high momentum scores.

• Tata Steel’s Q1FY24 net profit falls 91.8% YoY to Rs 634 crore due to higher inventory and finance costs. Its revenue also declines by 6.2% YoY on the back of lower volumes and weakness in its European operations. The stock shows up in a screener for companies with low Piotroski scores.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (1,088.05, 10.00%), Adani Power Ltd. (260.15, 9.31%) and Adani Transmission Ltd. (834.85, 7.97%).

Downers:

Largecap and midcap losers today include Asian Paints Ltd. (3,400.40, -4.04%), PB Fintech Ltd. (718.50, -3.54%) and Vedant Fashions Ltd. (1,242.00, -3.50%).

Movers and Shakers

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

Top high volume gainers on BSE included Jyothy Labs Ltd. (290.90, 19.98%), Adani Green Energy Ltd. (1,088.05, 10.00%) and Adani Power Ltd. (260.15, 9.31%).

Top high volume losers on BSE were DCM Shriram Ltd. (848.50, -6.14%), Asian Paints Ltd. (3,400.40, -4.04%) and Campus Activewear Ltd. (299.55, -3.01%).

Thermax Ltd. (2623.95, 7.22%) was trading at 20.4 times of weekly average. JK Paper Ltd. (326.00, 4.05%) and Ajanta Pharma Ltd. (1511.75, 6.09%) were trading with volumes 13.6 and 13.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

63 stocks overperformed with 52-week highs, while 3 stocks tanked below their 52-week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,511.75, 6.09%), Bharat Heavy Electricals Ltd. (97.75, -0.31%) and Zydus Lifesciences Ltd. (621.75, 1.30%).

Stocks making new 52 weeks lows included - SRF Ltd. (2,164.10, 0.92%) and UPL Ltd. (626.00, -0.97%).

10 stocks climbed above their 200 day SMA including Adani Power Ltd. (260.15, 9.31%) and Sobha Ltd. (579.10, 4.22%). 12 stocks slipped below their 200 SMA including DCM Shriram Ltd. (848.50, -6.14%) and Vedant Fashions Ltd. (1,242.00, -3.50%).