Trendlyne Analysis

Nifty 50 closed at 19,381.65 (-144.9, -0.7%), BSE Sensex closed at 65,240.68 (-542.1, -0.8%) while the broader Nifty 500 closed at 16,772.30 (-86.7, -0.5%). Market breadth is in the green. Of the 1936 stocks traded today, 1017 were in the positive territory and 850 were negative.

Indian indices closed in the red, with the Nifty 50 closing below the 19,400 mark. The Indian volatility index, India VIX, settled above 11 points. Varun Beverages closed 2% higher after its Q1FY24 net profit rose 26.2% YoY to Rs 993.8 crore on the back of lower raw material costs, higher realisations and operational efficiencies.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, despite the benchmark index closing in the red. Nifty Media and Nifty Pharma closed higher than Thursday’s close. According to Trendlyne's sector dashboard, Pharmaceuticals & Biotechnology was the top-performing sector of the day in a weak market.

Major European indices traded in the red, in line with the Asian indices, which closed lower. US index futures traded in the red, indicating a negative start to the trading session. Brent crude oil futures also traded lower after falling 2.7% on Thursday.

• Relative strength index (RSI) indicates that stocks like Escorts Kubota, Eris Lifesciences, BEML and Cipla are in the overbought zone.

• Sun Pharmaceutical Industries' Q1FY24 net profit falls by 1.9% to Rs 2,022.5 crore, while revenue rises by 10.7%. The decline in profit is due to the rise in input costs and employee benefit expenses. The company features in a screener for stocks with low debt.

• Jefferies maintains its ‘Underperform’ rating on Hindustan Petroleum but raises the target price to Rs 225. The brokerage says the company reported strong results in Q1FY24 but highlights that earnings have peaked. It also believes that the increase in oil prices will impact marketing.

  Brokerage Radar | Jefferies maintains 'underperform' rating for #HindustanPetroleum pic.twitter.com/bPNqWAfvRO

  — ET NOW (@ETNOWlive) August 3, 2023

• Mahindra and Mahindra (M&M) enters into a securities subscription agreement of Rs 1,200 crore with Temasek Holdings. As part of this agreement, Temasek will acquire a 1.5% to 3% stake in M&M's EV business, Mahindra Electric Automobile (MEAL), at a valuation of Rs 80,580 crore.

• Akzo Nobel India rises to an all-time high of Rs 2,930.9 as its Q1FY24 net profit increases by 42.9% YoY to Rs 109.9 crore. Its revenue grows by 7% YoY on the back of the coatings segment. The company appears in a screener of stocks with improving RoA.

• SBFC Finance's Rs 1,025 crore IPO gets bids for 1.91X the available 13.4 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.06X of the available 6.6 crore shares on offer.

• Dixon Technologies (India) rises by over 8% today as the government bans the import of laptops, personal computers, tablets, etc. for foreign companies without proper licenses. This firm operates in the electronic manufacturing services (EMS) space in India and will directly benefit from this ban. It appears in a screener of stocks with strong momentum.

• Dabur India recovers after an initial 3% fall today as its Q1FY24 net profit rises 5.4% YoY to Rs 463.9 crore, and revenue grows by 10.9% YoY, led by its consumer care and food segments. The company had declined earlier today as reports surfaced claiming the presence of carcinogenic materials (cancer-causing substances) in its honey product, Dabur Honey.

• Tech giant Apple plans to shift at least 20% of iPhone production to India from China, amid Washington- Beijing tensions and Covid-induced uncertainty.

  Inside Apple's India dream
  
  U.S.-China tensions are driving Apple out of China and into India, a country that has emerged as the next electronics manufacturing hub.
  
  Keep reading: https://t.co/37o2e824fy pic.twitter.com/ztqdpoS3JY

  — Nikkei Asia (@NikkeiAsia) August 2, 2023

• Hindustan Petroleum Corp falls despite its Q1FY24 net profit rising to Rs 6,765.5 crore, compared to a net loss of Rs 8,557.1 crore in Q1FY23. The growth is due to lower raw material expenses and inventory. Its revenue grows by 4.3% YoY, beating Trendlyne's Forecaster estimates by 9.1%. The company appears in a screener of stocks with increasing quarterly profits.

• Motilal Oswal downgrades its rating on Oberoi Realty to ‘Neutral’ from ‘Buy’ but raises the target price to Rs 1,200 from Rs 1,140. This implies an upside of 10.4%. The brokerage cites the stock's current valuation for the downgrade. However, it remains optimistic about the firm’s prospects, given its healthy launch pipeline in FY24.

• Varun Beverages is rising as its Q1FY24 net profit rises 26.2% YoY to Rs 993.8 crore on the back of lower raw material costs, higher realisations and operational efficiencies. Its revenue increases by 13.6% YoY despite a soft demand environment caused by high unseasonal rainfall in Q1. The company shows up in a screener for stocks with consistently high returns over the past five years.

• Sterlite Technologies rises as it bags an order worth Rs 250 crore from a public sector entity. The project involves designing, building, commissioning, and maintaining 2 data center facilities across India. The company appears in a screener of stocks with increasing quarterly net profit and margins.

• FSN E-Commerce Ventures (Nykaa) is declining as it responds to a Reuters report about the departure of five key executive employees from the firm. The company says that they have hired new top-level executives as part of a strategic realignment and cost rationalization, and to address the growing complexity of the business. It appears in a screener of stocks with a major fall in TTM net profit.

• Vedanta falls sharply as reports suggest that 16.5 crore shares (4.5% equity) of the company, amounting to Rs 4,270 crore, change hands in a block deal. Promoter Twin Star Holding is the likely seller in this transaction.

  Vedanta #BlockDeal: 16.5 cr shares (4.5% eq) worth Rs 4,270 cr change hands
  Alert: Promoter Twin Star Holdings likely a seller in Vedanta block deal pic.twitter.com/0rrHcVpYAy

  — CNBC-TV18 (@CNBCTV18Live) August 3, 2023

• Zydus Lifesciences is rising as it receives final approval from the US FDA to manufacture and market indomethacin suppositories. The drug is a generic version of the reference listed drug (RLD) indocin suppositories, used to treat arthritis patients. According to IQVIA, the drug has an estimated annual sales of $95 million in the USA for the year ended April 2023.

• Hero MotoCorp is falling after the Enforcement Directorate (ED) reportedly seized cash and jewellery worth Rs 25 crore during raids on the executive chairperson Pawan Kant Munjal and other top officials of the company. The ED also claims to have discovered "incriminating" documents in the residences and offices of Pawan Kant Munjal and others.

• ICICI Prudential Life Insurance and Societe Generale buy a 0.8% and 0.5% stake in Campus Activewear respectively in bulk deals on Wednesday.

• Lupin, Aurobindo Pharma, Zydus Lifesciences, Laurus Labs and Ipca Laboratories are rising in trade. Barring Pfizer, all other constituents of the broader sectoral index, Nifty Pharma, are also trading in the green.

• India’s Services PMI jumps to a 13-year high of 62.3 in July from 58.5 in June amid strong demand and an increase in new orders.

  #NewsAlert ???? India’s July services PMI jumps to 62.3 from 58.5 in June; highest since June 2010#PMI #India pic.twitter.com/Kqqrrpr0yl

  — Moneycontrol (@moneycontrolcom) August 3, 2023

• Mankind Pharma rises as its Q1FY24 net profit increases by 66.4% YoY to Rs 486.9 crore due to lower inventory and finance expenses. Its revenue also grows by 20.1% YoY on the back of expansion in the domestic consumer healthcare and exports segments. The company appears in a screener of stocks nearing their 52-week high with significant volumes.

• Gujarat Gas is falling as its net profit plunges by 43.4% YoY to Rs 215.9 crore in Q1FY24 owing to an increase in employee benefit and excise duty expenses. Its revenue also declines by 26% YoY due to reduced natural gas prices. The company features in a screener of stocks with declining profits for the past three consecutive quarters.

• Morgan Stanley raises its rating on India to ‘Overweight’, citing favourable valuations and sound growth outlook. The brokerage believes the country is poised for significant and sustained economic growth.

  Morgan Stanley upgrades India shares to 'over weight', downgrades China to equal weight@amit_mudgill https://t.co/kK0xhH7Tc3

  — Business Today (@business_today) August 3, 2023

• Ambuja Cements acquires a 56.7% stake in Sanghi Industries at an enterprise value of Rs 5,000 crore. The acquisition will be fully funded through internal accruals.

• InterGlobe Aviation falls despite its Q1FY24 net profit rising to Rs 3,090.6 crore, compared to a net loss of Rs 1064.3 crore in Q1FY23. The growth is due to lower aircraft fuel expenses. Its revenue also grows by 31.8% YoY, beating Trendlyne's Forecaster estimates by 4.4%. The company appears in a screener of stocks with increasing quarterly profits and margins.

• Titan is falling as its net profit declines by 4% YoY to Rs 756 crore in Q1FY24 due to an increase in expenses for raw materials, employee benefits and advertising. However, its revenue grows by 21% YoY, aided by improved sales from the jewellery, watches & wearables and eyecare segments. It appears in a screener of stocks where mutual funds have decreased their shareholding in the past quarter.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (44.70, 12.59%), Dixon Technologies (India) Ltd. (4,443.35, 7.66%) and IDBI Bank Ltd. (64.40, 6.45%).

Downers:

Largecap and midcap losers today include Vedanta Ltd. (254.05, -6.65%), Godrej Properties Ltd. (1,573.00, -5.23%) and Kansai Nerolac Paints Ltd. (320.50, -4.90%).

Movers and Shakers

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

Top high volume gainers on BSE included KSB Ltd. (2,717.65, 18.06%), FDC Ltd. (372.95, 8.73%) and Dixon Technologies (India) Ltd. (4,443.35, 7.66%).

Top high volume losers on BSE were Vedanta Ltd. (254.05, -6.65%), Kansai Nerolac Paints Ltd. (320.50, -4.90%) and InterGlobe Aviation Ltd. (2,447.75, -4.58%).

VIP Industries Ltd. (597.95, 1.27%) was trading at 15.4 times of weekly average. MRF Ltd. (1,06,973.35, 4.27%) and Gujarat Gas Ltd. (455.05, -3.60%) were trading with volumes 7.4 and 6.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

26 stocks hit their 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (24,555.80, 1.96%), Ajanta Pharma Ltd. (1,721.55, 2.23%) and Akzo Nobel India Ltd. (2,900.50, 4.30%).

Stocks making new 52 weeks lows included - UPL Ltd. (600.45, -3.02%) and VIP Industries Ltd. (597.95, 1.27%).

7 stocks climbed above their 200 day SMA including Laurus Labs Ltd. (384.35, 5.42%) and Indian Railway Catering & Tourism Corporation Ltd. (660.20, 3.52%). 16 stocks slipped below their 200 SMA including Mas Financial Services Ltd. (758.75, -4.05%) and Sheela Foam Ltd. (1142.00, -2.86%).