Trendlyne Analysis

Nifty 50 closed at 19,659.90 (-118.4, -0.6%) , BSE Sensex closed at 66,266.82 (-440.4, -0.7%) while the broader Nifty 500 closed at 16,919.20 (-55.8, -0.3%). Of the 1,936 stocks traded today, 931 were in the positive territory and 950 were negative.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,660. The volatility index, Nifty VIX, rose by 0.5% and closed at 10.5 points. Tata Consumer’s Q1FY24 net profit increased by 23.9% YoY to Rs 317 crore against the consensus estimates of Rs 336 crore.

Nifty Midcap 100 closed in the green, but Nifty Smallcap 100 closed flat, with the benchmark index closing lower. Nifty Healthcare and Nifty Realty closed higher compared to Wednesday’s closing levels. According to Trendlyne’s sector dashboard, healthcare equipment & supplies emerged as the top-performing sector of the day, with a rise of over 3.4%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. Meta share surged by 8% after market hours as its second-quarter earnings indicated a 12% rise in advertisement revenue driven by artificial intelligence. The firm guided a 15-24% growth rate by the end of 2023. Its competitor Google saw its advertisement revenue grow by 3% in the same period.

• Money flow index (MFI) indicates that stocks like Rites, Sterling and Wilson Renewable Energy, Engineers India and Jyothy Labs are in the overbought zone.

• Indian Energy Exchange (IEX) is falling despite its Q1FY24 net profit rising 9.7% YoY to Rs 75.8 crore and revenue growing by 5.8% YoY. The stock shows up in a screener for companies with sequentially rising net profits over the past three quarters.

• Escorts Kubota and Castrol India touch their 52-week highs of Rs 2,475.9 and Rs 148.5 respectively. The former has risen 10.5% over the past month, while the latter increased by 21.5%.

• Shriram Finance is falling despite its Q1FY24 net profit rising 25.1% YoY to Rs 1,675.4 crore and net interest income growing by 11.3% YoY. Its total assets under management also increases by 18.6% YoY. The stock shows up in a screener for companies with book value per share improving over the past two years.

• CG Power and Industrial Solutions falls despite its Q1FY24 net profit rising by 56.9% YoY to Rs 203.7 crore. Its revenue grows by 14.1% YoY on the back of robust growth in the power and industrial systems segments. Its EBITDA margins also improve by 340 bps YoY due to lower inventory expenses. The company appears in a screener of stocks with increasing quarterly profits.

• Birlasoft rises to its 52-week high of Rs 411.8 per share as its net profit grows by 22.6% YoY to Rs 137.5 crore in Q1FY24. Revenue increases by 3% YoY, aided by improvement in revenue from the BFSI, manufacturing and energy & utilities segments. It features in a screener of stocks near their 52-week highs with significant volumes.

• Tata Consumer falls despite its Q1FY24 net profit rising by 23.9% YoY to Rs 316.6 crore. Its revenue grows by 13% YoY on the back of growth in the domestic and international business segments. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

• Yatharth Hospital & Trauma Care Services' Rs 686.5 crore IPO gets bids for 2.13X the available 1.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.52X of the available 83.1 lakh shares on offer.

• Marico is rising as it signs a definitive agreement to acquire a 58% stake in Satiya Nutraceuticals, which owns the brand The Plant Fix-Plix, for a consideration of Rs 369 crore.

  #Marico will acquire a majority stake in Satiya Nutraceuticals, which owns plant-based nutrition brand Plix, for a consideration of Rs 369.01 crore.https://t.co/Grwu6e3UCM

  — ETMarkets (@ETMarkets) July 27, 2023

• BoB Capital Markets downgrades its rating on Dixon Technologies to ‘Hold’ from ‘Buy’ but raises the target price to Rs 4,300 from Rs 4,100. This implies an upside of 1.6%. The brokerage believes the company is trading at an expensive valuation, given its recent run-up. However, it remains positive about the company’s growth prospects, as it believes the firm is better positioned in the electronic manufacturing space compared to its peers.

• Jindal Stainless rises to an all-time high of Rs 386.9 as its Q1FY24 net profit grows by 132.1% YoY to Rs 745.8 crore due to lower power & fuel expenses. Its revenue increases by 86.3% YoY on the back of growth in sales in the domestic and export segments. The company appears in a screener of stocks with increasing quarterly revenue.

• Zydus Lifesciences rises as it receives final approval from the US FDA for plerixafor injection, which is used to prepare patients with certain types of cancer for stem cell transplant. It has an annual sales of $210 million in the United States.

• Nestle India is falling despite its Q2CY23 net profit rising 36.9% YoY to Rs 698.3 crore and revenue increasing by 15.1% YoY, driven by healthy growth in domestic sales and exports. Suresh Narayanan, Chairman & MD of the firm, says, “This marks the fifth consecutive quarter of double-digit growth across all product groups. Domestic sales growth is broad-based and grew by 14.6%."

• Sunil D’Souza, Managing Director of Tata Consumer Products, says the FMCG industry is under pressure globally as the Canadian market is contracting. He adds that the company is implementing structural cost corrections in the UK and it will continue to deliver double-digit growth.

  #OnCNBCTV18 | #Industry is under #pressure globally, #Canada market is on a decline. #UK market share is on a strong footing. Will continue to drive double-digit #growth for the #business, says Sunil D’Souza of Tata Consumer Products#1QWithCNBCTV18 pic.twitter.com/XtSquRn4yk

  — CNBC-TV18 (@CNBCTV18Live) July 27, 2023

• Pharmaceutical stocks like Cipla, Gland Pharma and Aurobindo Pharma rise more than 5% in trade. The broader Nifty Pharma index is trading 3.6% higher.

• Colgate Palmolive rises to an all-time high of Rs 2,009.9 as its Q1FY24 net profit increases by 30.5% YoY to Rs 273.7 crore. Its revenue also grows by 10.8% YoY on the back of robust growth in the domestic segment. The company appears in a screener of stocks with a positive breakout at third resistance.

• SIS falls despite its Q1FY24 net profit rising by 8.4% YoY to Rs 89.5 crore on the back of lower inventory expenses. Its revenue grows by 11.2% YoY aided by robust growth in domestic security services and facilities management. The company appears in a screener of stocks with strong momentum.

• Cipla surges more than 5% as its net profit rises 45.1% YoY to Rs 995.7 crore in Q1FY24. Its revenue also grows by 17.7% YoY, aided by India, the US and South Africa, and EBITDA margin expands 233 bps YoY on the back of reduced raw material expenses. The company appears in a screener of stocks with a shift from negative to positive growth in sales and net profit, with strong price movement.

• Rail Vikas Nigam declines by more than 4% as its two-day offer for sale (OFS) begins. Through the OFS, the Centre plans to offload around 5.36% stake in the company, amounting to Rs 1,330 crore, and has set a floor price of Rs 119.

  RVNL shares tank 7% as two-day OFS begins, floor price set at Rs 119@amit_mudgill https://t.co/O1JG42FgLk

  — Business Today (@business_today) July 27, 2023

• Kalpataru Projects International touches a new 52-week high today as it bags new orders worth Rs 2,261 crore. Out of this, Rs 2,036 crore is for orders in the transmission and distribution (T&D) business in overseas markets, and Rs 225 crore is for the oil & gas pipeline project in India. It appears in a screener of stocks with strong momentum.

• Tech Mahindra is falling as its Q1FY24 net profit drops by 38% QoQ to Rs 692.5 crore, and revenue decreases by 4.1% QoQ. This decline is due to continued weakness in the communications, media and entertainment (CME) vertical. Its total contract value (TCV) of deal wins has reduced for the second consecutive quarter, falling by 39% QoQ to $359 million. The stock shows up in a screener for companies with declining net profit sequentially over the past two quarters.

• Netweb Technologies India's shares debut on the bourses at an 89.4% premium to the issue price of Rs 500. The Rs 631 crore IPO has received bids for 90.4 times the total shares on offer.

• JP Morgan maintains its ‘Overweight’ rating on Axis Bank with a target price of Rs 1,000. The brokerage says the bank’s PAT was 2% higher than estimates led by lower provisions, while core PPoP (pre-provision operating profit) missed estimates. It highlights that loan growth was moderate at 2% QoQ.

  #CNBCTV18Market | JPMorgan gives an overweight rating on Axis Bank, says PAT was 2% ahead of est driven by lower provisions, core PPoP was a miss pic.twitter.com/8z8W7El2Hj

  — CNBC-TV18 (@CNBCTV18Live) July 27, 2023

• BofA Securities Europe SA buys a 0.59% stake in Delta Corp for approx Rs 31 crore in a bulk deal on Wednesday.

• Mahindra & Mahindra is falling after it acquires a 3.5% stake in RBL Bank for Rs 417 crore. It may also consider increasing its stake in the bank to 9.9%.

• Schaeffler India rises as its Q2CY23 net profit increases by 5.1% YoY to Rs 237.3 crore due to lower inventory expenses. Its revenue grows by 5.4% YoY, driven by the automotive technologies and automotive aftermarket segments. The company appears in a screener of stocks with improving quarterly net profit and margins.

• Reliance Industries is rising as Jio Financial Services enters a 50:50 joint venture (JV) with BlackRock. Both companies are targeting an initial investment of $150 million each towards this Indian asset management venture called Jio BlackRock.

Riding High:

Largecap and midcap gainers today include Cipla Ltd. (1,171.45, 9.64%), REC Ltd. (188.20, 8.44%) and Colgate-Palmolive (India) Ltd. (2,001.90, 6.28%).

Downers:

Largecap and midcap losers today include Mahindra & Mahindra Ltd. (1,447.40, -6.31%), Tech Mahindra Ltd. (1,099.90, -3.79%) and Hindustan Petroleum Corporation Ltd. (290.70, -3.65%).

Volume Rockets

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

Top high volume gainers on BSE included Godfrey Phillips India Ltd. (1,908.15, 10.71%), Cipla Ltd. (1,171.45, 9.64%) and REC Ltd. (188.20, 8.44%).

Top high volume losers on BSE were Mahindra & Mahindra Ltd. (1447.40, -6.31%), Fine Organic Industries Ltd. (4462.00, -5.40%) and Tech Mahindra Ltd. (1,099.90, -3.79%).

Mas Financial Services Ltd. (789.55, 2.77%) was trading at 30.7 times of weekly average. MMTC Ltd. (35.85, 6.70%) and Nesco Ltd. (661.95, 5.12%) were trading with volumes 14.6 and 11.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

56 stocks overperformed with 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Ajanta Pharma Ltd. (1,552.55, 3.10%), Alembic Pharmaceuticals Ltd. (732.50, 3.43%) and Aurobindo Pharma Ltd. (835.55, 5.84%).

Stocks making new 52 weeks lows included - Rajesh Exports Ltd. (506.60, -1.07%) and Campus Activewear Ltd. (298.55, -1.06%).

9 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (1,908.15, 10.71%) and Granules India Ltd. (321.65, 4.40%). 6 stocks slipped below their 200 SMA including Shree Cements Ltd. (23,900.00, -1.54%) and Deepak Nitrite Ltd. (1,977.60, -1.41%).