Trendlyne Analysis

Nifty 50 closed at 19,753.80 (107.8, 0.6%), BSE Sensex closed at 66,527.67 (367.5, 0.6%) while the broader Nifty 500 closed at 17,059.00 (110.7, 0.7%). Of the 1,978 stocks traded today, 1,257 were on the uptick, and 670 were down.

Indian indices closed in the green, with the Nifty 50 rising above the 19,750 mark. The Indian volatility index, Nifty VIX, rose sharply by 2.7%. NTPC closed over 3.6% higher as its Q1FY24 net profit increased by 23.8% YoY to Rs 4,873.2 crore, led by a decline in fuel costs.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green and outperformed the benchmark index. Nifty Energy and Nifty Realty closed higher than Friday’s close. According to Trendlyne's sector dashboard, General Industrials was the top-performing sector of the day.

Major Asian indices closed in the green, except for Taiwan’s TSEC 50 index, which closed lower. European indices recovered from their day lows and traded flat or higher, in line with the US index futures. Investors awaited key eurozone growth and inflation data, scheduled to be released later today. Brent crude oil futures traded higher and are set to post their biggest monthly gains since January 2022.

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

• UPL is falling as its Q1FY24 net profit plunges by 81.1% YoY to Rs 166 crore, and revenue decreases by 17.2% YoY due to a 21.2% YoY drop in its crop protection business. The company has also slashed its FY24 revenue guidance to 1-5% from 6-10% earlier. Mike Frank, the CEO of UPL, says, "The global agrochemical industry has been going through a challenging phase over the past two quarters as distributors prioritized destocking and focused on tactical purchases amid high channel inventories."

• NHPC touches a 52-week high as reports suggest that 2.3 crore shares (0.2% equity), amounting to Rs 116.1 crore, have changed hands in a block deal.

  NHPC Large Trade | 2.3 Cr shares (0.2% equity) worth ?116.1 cr changes hands via block at ?51/Sh pic.twitter.com/ZeNhUtxtdg

  — CNBC-TV18 (@CNBCTV18Live) July 31, 2023

• Piramal Enterprises plunges more than 5% as its net profit declines 95% YoY to Rs 577 crore in Q1FY24. This fall is due to a one-time exceptional profit the company earned in Q1FY23. Its revenue improves by 126.3% YoY, aided by growth in assets under management. The company appears in a screener of stocks with a decline in net profit and profit margin (YoY).

• IDFC First Bank rises to a new 52-week high of Rs 88.3 as its Q1FY24 net profit increases by 61.3% YoY to Rs 765.2 crore. Its net interest income also grows by 39.5% YoY, driven by the treasury and retail banking segments. The bank's asset quality improves as its gross and net NPA ratios fall by 119 bps and 60 bps YoY respectively. It appears in a screener of stocks with increasing quarterly net profit and margins.

• Welspun India surges by more than 10% as its Q1FY24 net profit jumps 621.4% YoY to Rs 162.7 crore, and its EBITDA margin expands by 6.5 percentage points YoY to 14.2%. Its revenue rises 11.6% YoY, led by healthy growth in the home textiles and flooring segments. BK Goenka, the Chairman of Welspun Group, says, "The domestic consumer business further strengthened its market leadership, with Brand Welspun being the most widely distributed Home Textile brand in India, increasing its reach with a presence at more than 13,000 outlets pan India."

• Bharti Airtel prepays a loan of Rs 8,024 crore to the Department of Telecommunications. The loan is part of its deferred liabilities for the spectrum acquired in the 2015 auction. The company appears in a screener of stocks with strong momentum.

• Mangalore Refinery And Petrochemicals is falling as its Q1FY24 net profit declines by 62.6% YoY to Rs 1014.8 crore. Revenue also decreases by 23% YoY. It appears in a screener of stocks with falling profit margins YoY.

• Rajneesh Karnatak, MD & CEO of Bank of India, says it targets a deposit growth of 10-11% and loan growth of Rs 11-12% in FY24. He adds that the bank will maintain its net interest margins at 3-3.05%.

  BANK OF INDIA
  
  Targets for FY24:
  - Deposit Growth 10-11%
  - Loan Growth of 11-12%
  - ?Will maintain NIMs around 3-3.05%
  - Target GNPA <6% and NNPA of 1%
  - Credit cost target around 60-65 bps
  - Strategy is to keep Rural Agri & MSME at 55%, Corporate loans at 45%?@BankofIndia_IN…

  — Mangalam Maloo (@blitzkreigm) July 31, 2023

• HDFC Securities downgrades its rating on JK Lakshmi Cement to ‘Add’ from ‘Buy’ and lowers the target price to Rs 700 from Rs 815. This implies an upside of 13.4%. The brokerage believes the company’s plans of capacity expansion and acquisitions by raising debt will impact its balance sheet and return ratios. It also adds that the firm’s net profit in Q1FY24 missed its estimates.

• NTPC is rising as its Q1FY24 net profit increases by 23.8% YoY to Rs 4,873.2 crore, led by a decline in fuel costs. However, its revenue marginally falls by 0.2% YoY due to a 1.3% YoY decrease in its generation segment. The management also announces the separation of its coal mining business into a 100% subsidiary, NTPC Mining.

• UCO Bank falls despite its Q1FY24 net profit rising by 80.8% YoY to Rs 223.5 crore. Its net interest income grows by 35.6% YoY on the back of robust growth in the treasury, corporate banking and retail banking operations segment. The bank's asset quality improves as its gross and net NPA ratios fall by 294 bps and 131 bps YoY respectively. The company appears in a screener of stocks with increasing quarterly revenue.

• GAIL is rising as UBS double-upgrades its rating to ‘Buy’ from ‘Sell’ and raises the target price to Rs 150. The brokerage believes that the markets are yet to fully factor in the benefits of realized tariffs (from tariff integration), the scope of India's growing gas consumption, and the expansion of GAIL's pipeline.

  #MarketsWithBS | UBS has ‘double upgraded’ Gail (India) to ‘buy’ from its earlier ‘sell’ recommendation; sees 25% upside in the stock, reports @Pun_ditry #stockstowatch #StockMarket #StocksToTrade https://t.co/VfMHU8nsM6

  — Business Standard (@bsindia) July 31, 2023

• SBI Cards and Payment Services falls as its net profit decreases by 0.5% YoY to Rs 593.3 crore. However, its revenue rises by 4% YoY on the back of growth in interest and fees & commission income. The NBFC's asset quality declines as its gross and net NPA ratios increase by 17 bps and 9 bps YoY respectively. The company appears in a screener of stocks with declining net profit and margins.

• Glenmark Life Sciences is rising as reports suggest that Nirma Group is the frontrunner to acquire the company for an estimated consideration of Rs 6,664 to 7,000 crore from Glenmark Pharmaceuticals.

• The Delhi High Court rejects SpiceJet’s former promoter Kalanithi Maran’s plea seeking Rs 1,323 crore damage claim from the company, according to reports. The high court also refuses to interfere with the 2018 arbitral award that has asked SpiceJet to refund Rs 579 crore along with interest to Maran.

• Nazara Technologies rises as its net profit increases 7.6X QoQ to Rs 19.5 crore due to lower content, event and web server expenses. However, its revenue falls by 12% QoQ on the back of a decline in the gaming and eSports segments. The company appears in a screener of stocks with increasing quarterly net profit and margins.

• Metal stocks like APL Apollo Tubes, NMDC, Hindalco Industries, Tata Steel and Steel Authority of India are rising in trade. All the constituents of the broader sectoral index, BSE Metal, are also trading in the green.

• Bandhan Bank rises more than 2% in trade as reports suggest that 1.8 crore shares (1.1% equity), amounting to Rs 385.4 crore, have changed hands in a block deal.

  Bandhan Bank | 1.8 cr shares (1.1% Equity) worth rs 385.4 cr change hands via block at Rs 219/sh pic.twitter.com/YZLqYGwFS4

  — CNBC-TV18 (@CNBCTV18Live) July 31, 2023

• Chalet Hotels rises as its Q1FY24 net profit increases by 210.6% YoY to Rs 88.7 crore, while revenue improves by 21% YoY. The profit rise is on the back of high deferred tax credit. The company features in a screener for stocks with strong annual EPS growth.

• Bank of India rises as its Q1FY24 net profit increases 2.8X YoY to Rs 1,551.1 crore. Its net interest income also grows by 44% YoY on the back of robust growth in the treasury, wholesale banking and retail banking operations segment. Its asset quality improves as the gross and net NPAs decline by 263 bps and 56 bps YoY respectively. The company appears in a screener of stocks with increasing quarterly profits.

• Power Grid Corp of India rises as it wins transmission system projects for the evacuation of power from a renewable energy zone in Rajasthan and for a solar energy zone in Ananthpuram and Kurnool, Andhra Pradesh.

• Macquarie remains cautious on the hospitals space in the medium term as it believes that soft demand and capacity expansion may impact the companies’ profitability. It initiates an ‘Underperform’ rating on Apollo Hospitals and Max Healthcare.

  Brokerage Radar | @Macquarie on Hospitals: Peak performance is being rewarded with historically high valuations#StockMarket #ApolloHosp #Max pic.twitter.com/byj16cHukI

  — ET NOW (@ETNOWlive) July 31, 2023

• Power Mech Projects surges to a new all-time high of Rs 5,069.5 per share as it bags an order worth Rs 30,438 crore from SAIL in a consortium with PC Patel Infra. The order is for a mine development & operation (MDO) project of the Tasra open cast project (OCP) in Dhanbad, which will also include setting up a 3.5 MTPA coal washery and supplying steel grade coking coal to SAIL.

• United Breweries falls as its Q1FY24 net profit decreases by 16% YoY to Rs 136.2 crore due to higher excise duty expenses. However, its revenue rises by 0.9% YoY on the back of marginal growth in the beer segment. The company appears in a screener of stocks with a major fall in TTM net profit.

• Marico remains flat despite a 15.6% YoY rise in its net profit to Rs 427 crore in Q1FY24. However, its revenue declines by 3.2% YoY on the back of a fall in the prices of products. Its EBITDA margin improves by 494 bps YoY, aided by a reduction in the cost of raw materials. The company appears in a screener of stocks with high promoter pledges.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (38.20, 8.99%), Adani Power Ltd. (273.30, 5.70%) and Supreme Industries Ltd. (3,550.00, 5.66%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (796.10, -3.49%), Apollo Hospitals Enterprise Ltd. (5,173.45, -3.24%) and Zomato Ltd. (84.10, -3.11%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Hindustan Copper Ltd. (141.10, 10.36%), Welspun India Ltd. (109.65, 9.32%) and Indian Railway Finance Corporation Ltd. (38.20, 8.99%).

Top high volume losers on BSE were Rossari Biotech Ltd. (840.00, -3.97%), Narayana Hrudayalaya Ltd. (1,010.50, -3.50%) and NLC India Ltd. (117.00, -1.60%).

KIOCL Ltd. (206.75, 7.99%) was trading at 15.0 times of weekly average. Eris Lifesciences Ltd. (791.70, 2.12%) and NOCIL Ltd. (220.80, 2.96%) were trading with volumes 11.4 and 10.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

81 stocks took off, crossing 52-week highs, while 1 stock hit their 52-week lows.

Stocks touching their year highs included - Abbott India Ltd. (23,999.35, -0.25%), Balkrishna Industries Ltd. (2,542.35, 3.16%) and Bharat Forge Ltd. (931.45, 3.17%).

Stock making new 52 weeks lows included - UPL Ltd. (624.70, -0.07%).

17 stocks climbed above their 200 day SMA including KIOCL Ltd. (206.75, 7.99%) and Adani Power Ltd. (273.30, 5.70%). 6 stocks slipped below their 200 SMA including Blue Dart Express Ltd. (6,728.15, -2.87%) and United Breweries Ltd. (1,540.25, -1.92%).