Trendlyne Marketwatch
Trendlyne Marketwatch
02 Aug 2023
Market closes lower, Ipca Labs acquires 33.4% stake in Unichem Lab for Rs 1,034.1 crore

Trendlyne Analysis

Nifty 50 closed at 19,526.55 (-207, -1.1%), BSE Sensex closed at 65,782.78 (-676.5, -1.0%) while the broader Nifty 500 closed at 16,858.95 (-192.2, -1.1%). Of the 1,947 stocks traded today, 519 showed gains, and 1,388 showed losses.

Indian indices extend the losses from the morning session and close in the red, with the Nifty 50 closing at 19,527. The volatility index, Nifty VIX, rose by 9.7% and closed at 11.3 points. Godrej Properties’ Q1FY24 net profit jumps 174.3% YoY to Rs 125 crore against the consensus estimates of Rs 131 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red following the benchmark. All major sectoral indices closed lower than Tuesday’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 2.4%. 

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. Global rating agency Fitch lowers US credit rating to AA+ from AAA. The rating agency flagged concerns over the rising debt burden and the government’s inefficiency in resolving pressing fiscal issues. The rating agency predicted the US government’s fiscal deficit to reach 6.3% of GDP in 2023 against 3.7% in 2022.

  • Money flow index (MFI) indicates that stocks like BEML, Kansai Nerolac Paints, Ajanta Pharma and Eris Lifesciences are in the overbought zone.

  • SpiceJet reportedly seeks shareholder approval to issue 5.9% equity to Carlyle Aviation Partner. The lessor plans to convert its debt of $28 million to equity and values the airline's share at Rs 48 per share.

  • Godrej Properties’ Q1FY24 net profit jumps by 174.3% YoY to Rs 124.9 crore, and revenue surges by 282.6% YoY on the back of strong traction in deliveries, business development and cash collections. However, its sales bookings fall by 11% YoY due to a delay in launches. The stock shows up in a screener for companies with net profits rising sequentially over the past three quarters.

  • Strides Pharma Science plunges more than 6% as its revenue declines 1.1% YoY to Rs 9,299.9 crore in Q1FY24. However, its net loss contracts by 32.1% YoY owing to a decrease in raw material, employee benefits and finance costs. The company appears in a screener of stocks with high promoter pledge.

  • Campus Activewear falls as 91 lakh shares (3% equity) of the company, amounting to Rs 265.2 crore, change hands through block deals.

  • Ipca Laboratories acquires 33.4% controlling stake in Unichem Laboratories for Rs 1,034.1 crore. The deal received approval from the Competition Commission of India on July 27. Ipca plans to make a 26% open offer to public shareholders following SEBI regulations. The company appears in a screener of stocks with low debt.

  • Ambuja Cements falls as Sanghi Industries rises on reports of a possible majority stake acquisition by the Gautam Adani-led company. Ambuja Cements is expected to buy out the owners of Sanghi Industries, giving the small-cap cement company an enterprise value of Rs 5,000 crore.

  • Thyrocare Technologies is falling as its Q1FY24 net profit drops by 20.4% YoY to Rs17.3 crore. However, revenue rises by 5.5% YoY due to an improvement in diagnostic testing services. It appears in a screener of stocks with high momentum scores.

  • India’s GST collections rise 11% YoY to Rs 1.6 lakh crore in July, according to the data released by the finance ministry.

  • Adani Ports & Special Economic Zone records a 7% YoY rise in cargo volumes to 34 million metric tonnes in July 2023. Container volume increases by 23% YoY, while liquids and gas volume improves by 27%.

  • KRChoksey downgrades its rating on Sonata Software to ‘Add’ from ‘Buy’ but raises the target price to Rs 1,148 from Rs 1,122. This implies an upside of 9.3%. The brokerage cites the stock’s expensive valuations for the recommendation downgrade. However, it is positive about the firm’s medium-to-long-term prospects given its strong deal momentum, focus on enterprise clients and tailwinds in the managed cloud services.

  • Redington falls as its Q1FY24 net profit decreases by 21.2% YoY to Rs 248.8 crore due to higher inventory, employee benefits, and finance expenses. However, its revenue grows by 26.3% YoY, aided by robust growth in Singapore, India & South Asia, and the rest of the world regions. The company appears in a screener of stocks with declining quarterly profits.

  • Metal & mining stocks like Jindal Steel & Power, National Aluminium Co, Coal India, Tata Steel and NMDC are falling in trade. All the constituents of the broader sectoral index, BSE Metal, are also trading in the red.

  • Zee Entertainment Enterprises is falling as IDBI Bank moves the National Company Law Appellate Tribunal (NCLAT) to challenge the National Company Law Tribunal's decision to set aside its plea to initiate insolvency proceedings against the media company. The petition is listed to be heard by the NCLAT bench today.

  • Rating agency Fitch Ratings downgrades the US's long-term foreign-currency issuer default rating (IDR) to ‘AA+’ from ‘AAA’ with a "stable" outlook. The downgrade is due to factors including fiscal deterioration and increasing government debt.

  • Sula Vineyards falls as it receives an excise demand notice of Rs 115.9 crore issued by the Minister of State Excise Revenue, Government of Maharashtra. The company appears in a screener of stocks with a negative breakdown at third support.

  • Kushal Pal Singh, promoter of DLF, sells his entire 0.6% stake for approx Rs 727.1 crore in the company on Tuesday. Promoter group Mallika Housing LLP also sells a 0.2% stake in the company.

  • Syrma SGS Technology is falling despite its Q1FY24 net profit rising by 83% YoY to Rs 28.5 crore. Its revenue improves by 59.1% YoY, driven by a robust performance in the consumer segment. It appears in a screener of companies with low debt.

  • Ambuja Cements falls despite a 20.4% YoY rise in its net profit to Rs 905.6 crore in Q1FY24. Revenue grows by 8.5% YoY, aided by an improvement in sales. Its EBITDA margin expands by 288 bps YoY on the back of reduced employee benefits and power & fuel expenses. The company features in a screener of stocks with increasing revenue for the past two quarters.

  • Syrma SGS Technology acquires a 51% stake (17.7 lakh shares) in Johari Digital Healthcare for Rs 229.5 crore. This marks the firm's entry into the lucrative electronic medical devices market.

  • Thermax rises despite its Q1FY24 net profit falling 0.1% YoY to Rs 58.9 crore. However, its revenue grows by 18.6% YoY on the back of robust growth in the industrial products and green solutions segment. The company appears in a screener of stocks with strong momentum.

  • TVS Motor Co is rising as its total wholesales in July increase by 3.6% YoY to 3,25,977 units, led by healthy growth in domestic two-wheeler sales. Its total two-wheeler wholesales improve by 4.2% YoY, driven by a 17% YoY growth in domestic two-wheeler wholesales. However, its exports decline by 20.4% YoY.

  • Power Grid Corporation of India rises as its board of directors approves an investment in an 85 MW solar power project at Nagda, Madhya Pradesh. The project will cost Rs 554.9 crore and will be implemented in 10 months. The company appears in a screener of stocks with improving RoCE.

  • Morgan Stanley maintains its ‘Overweight’ rating on Navin Fluorine International but lowers the target price to Rs 4,951. The brokerage is bullish on the company’s balanced business mix, strong agrochemical portfolio, and new orders. Despite a 17.4% decline in net profit to Rs 61.5 crore, the company's revenue has increased by 23.5% to Rs 491.2 crore in Q1FY24.

  • GE Power India is rising as it bags a contract worth Rs 444 crore from Gujarat State Electricity Corp for the manufacturing and installation of a flue gas desulfurization system. The stock shows up in a screener for companies with zero promoter pledge.

  • Bikaji Foods International rises to an all-time high of Rs 504 as its Q1FY24 net profit increases by 156.5% YoY to Rs 41.7 crore. The growth was due to lower inventory and finance expenses. Its revenue grows by 15.1% YoY on the back of growth in the ethnic and western snacks segment. The company appears in a screener of stocks with strong annual EPS growth.

  • Metro Brands’ Q1FY24 net profit declines by 11.4% YoY to Rs 92.8 crore on the back of higher input costs and employee expenses. However, its revenue rises by 14.7% YoY as it expands its presence across markets. The company added 27 new stores and entered eight new cities in Q1. It shows up in a screener for companies with cash flows from operations declining over the past two years.

Riding High:

Largecap and midcap gainers today include Laurus Labs Ltd. (364.60, 1.76%), Bayer Cropscience Ltd. (4,584.25, 1.71%) and Divi's Laboratories Ltd. (3,690.60, 1.40%).

Downers:

Largecap and midcap losers today include NHPC Ltd. (49.20, -5.29%), Zee Entertainment Enterprises Ltd. (226.75, -4.35%) and Max Financial Services Ltd. (775.65, -4.27%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Star Cement Ltd. (158.70, 10.36%), JM Financial Ltd. (82.55, 5.63%) and Prism Johnson Ltd. (129.35, 4.06%).

Top high volume losers on BSE were Redington Ltd. (164.20, -10.37%), Campus Activewear Ltd. (290.00, -4.29%) and Bosch Ltd. (18,262.25, -3.86%).

KEC International Ltd. (633.85, 1.36%) was trading at 19.7 times of weekly average. Metro Brands Ltd. (1,059.70, 1.77%) and Triveni Turbine Ltd. (398.40, 1.31%) were trading with volumes 10.4 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

22 stocks overperformed with 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Berger Paints (India) Ltd. (711.65, 1.32%), Caplin Point Laboratories Ltd. (910.00, 0.28%) and Carborundum Universal Ltd. (1,240.55, -3.58%).

Stock making new 52 weeks lows included - Campus Activewear Ltd. (290.00, -4.29%).

6 stocks climbed above their 200 day SMA including PVR INOX Ltd. (1,609.15, 2.79%) and Laurus Labs Ltd. (364.60, 1.76%). 23 stocks slipped below their 200 SMA including Redington Ltd. (164.20, -10.37%) and Rain Industries Ltd. (163.25, -3.97%).

 
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