Trendlyne Analysis

Nifty 50 closed at 19,517.00 (135.4, 0.7%), BSE Sensex closed at 65,721.25 (480.6, 0.7%) while the broader Nifty 500 closed at 16,890.60 (118.3, 0.7%). Of the 1,935 stocks traded today, 1,209 showed gains, and 665 showed losses.

Indian indices pare gains from the afternoon session and close in the green, with the Nifty 50 closing at 19,517. The volatility index, Nifty VIX, dropped by 5.5% and closed at 10.6 points. State Bank of India’s Q1FY24 net profit increased by 178.2% YoY to Rs 16,884 crore against the consensus estimates of Rs 15,328 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green following the benchmark. Nifty Private Bank and Nifty IT closed higher than Thursday’s closing levels. According to Trendlyne’s sector dashboard, hardware, technology & equipment emerged as the top-performing sector of the day, with a rise of over 3.7%.

Most European indices trade in the green except for Switzerland’s SMI trading lower. US indices futures trade higher, indicating a positive start. Crude oil prices gained more than 2% since Thursday, as Saudi Arabia extended a production cut of 1 million barrels of oil per day till September.

• Mahanagar Gas sees a short buildup in its August 31 future series as its open interest rises 36.9% with a put-call ratio of 0.3.

• Axis Direct downgrades its rating on Ambuja Cements to ‘Hold’ from ‘Buy’ but raises the target price to Rs 455 from Rs 435. This implies a downside of 3.6%. The brokerage believes the stock has a limited upside given its recent uptrend, leading to the rating downgrade. However, it remains optimistic about the firm’s prospects on the back of healthy demand trends and cost reduction initiatives.

• Kalpataru Projects International falls as reports suggest that the Income Tax Department is conducting searches at the company's premises in Rajasthan and Mumbai. The company appears in a screener of stocks with high promoter pledges.

• Alkyl Amines Chemicals, Jindal Worldwide and Max Healthcare Institute’s weekly average delivery volumes rise ahead of their Q1FY24 results on Monday.

• Devyani International is falling as its net profit plunges 84.1% YoY to Rs 117.6 crore in Q1FY24. However, revenue grows by 20.1% YoY owing to growth in sales from major franchises like KFC and Pizza Hut. Its EBITDA margin declines by 320 bps due to an increase in the cost of materials consumed and employee benefit and finance expenses. The company features in a screener of stocks with declining net cash flow.

• Mahindra & Mahindra is falling despite its Q1FY24 net profit surging by 59.8% YoY to Rs 3,508.4 crore, while its revenue grows by 19.3% YoY. This healthy performance is driven by its robust growth in the automotive segment. The stock shows up in a screener for companies with revenue rising sequentially over the past four quarters.

• Jefferies believes Dixon Technologies will benefit from the Centre's decision to restrict the import of electronic devices like laptops, personal computers, and tablets, as it strengthens the Centre's focus on indigenization. The brokerage has a 'Hold' rating on the company and expects robust sales in FY23-26.

  Jefferies expects sales of #DixonTechnologies to grow over 3 times over FY23-26, on a lower base. https://t.co/hZx66DijNW

  — BQ Prime (@bqprime) August 4, 2023

• Concord Biotech's Rs 1,550 crore IPO gets bids for 0.34X the available 1.5 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 0.47X of the available 73.2 lakh shares on offer.

• SBFC Finance's Rs 1,025 crore IPO gets bids for 3.88X the available 13.4 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 3.91X of the available 6.6 crore shares on offer.

• State Bank of India falls despite its Q1FY24 net profit rising by 178.2% YoY to Rs 16,884.3 crore. Its net interest income grows by 32% YoY, aided by the treasury, corporate/wholesale banking and retail banking operations segments. The bank's asset quality improves as gross and net NPA ratios decline by 115 bps and 29 bps respectively. The company appears in a screener of stocks with high TTM EPS growth.

• Foreign institutional investors take out Rs 223.8 crore from the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index options witness the highest outflow of Rs 61,461 crore from foreign investors.

• Mahanagar Gas is falling despite its Q1FY24 net profit surging by 98.9% YoY to Rs 368.4 crore, aided by a decline in the cost of natural gas. The firm’s revenue grows by 16.2% YoY, driven by growth in sales volume of piped natural gas (PNG). However, the company’s total gas sales volume declines by 1% YoY, as compressed natural gas (CNG) sales volume falls by 2.3% YoY.

• One97 Communications (Paytm) is rising as its average monthly transacting users in July increase by 19% YoY to 9.3 crore. Its merchant payment volumes also grow by 101% YoY. The loan distribution business sees its disbursements jump up 148% YoY to Rs 5,194 crore. The stock shows up in a screener for companies with improving return on capital employed (RoCE) over the past two years.

• Krsnaa Diagnostics is rising after the High Court of Rajasthan ruled in its favour regarding an agreement for providing laboratory and diagnostic services in Rajasthan. Earlier, the Rajasthan government had cancelled the acceptance letter awarded by the National Health Mission to a consortium of the firm and Telecommunications Consultants India.

• India’s FPI flows touch an 11-month high, as FPIs purchase Indian shares worth Rs 46,618 crore ($5.63 billion) on a net basis in July, according to data from the National Securities Depository (NSDL). This has driven the Nifty 50 and S&P BSE Sensex to record highs.

  FPI inflows hit 11-month high in July, lift benchmarks to fresh highs.
  
  Read the details here#FPI #India #IndiaEconomy #Indianequitieshttps://t.co/NWczu4PHrM

  — Business Standard (@bsindia) August 4, 2023

• Twin Star Holdings, promoter of Vedanta, sells a 4.1% stake in the company in a bulk deal on Thursday. Copthall Mauritius Investment and Societe Generale are the buyers.

• Deepak Nitrite rises despite its Q1FY24 net profit falling by 36.1% YoY to Rs 149.9 crore. Its revenue also decreases by 12.9% YoY due to a decline in the advanced intermediaries and phenolics segment. The company appears in a screener of stocks with improving book value per share.

• Zomato surges as it reports a net profit of Rs 2 crore in Q1FY24, compared to a loss in Q1FY23. Its revenue rises by 64.2% YoY. Deepinder Goyal says, "We expect our business to remain profitable going forward and will continue to deliver 40%+ YoY top line (adjusted revenue) growth for at least the next couple of years."

• Vir Advani, Vice-Chairman of Blue Star, says, the company anticipates double-digit sales growth for FY24. He adds that a portion of the funds raised will be used to reduce the net debt, which is now at Rs 283 crore. Blue Star's net profit rises by 12.3% YoY to 83.4 crore and revenue up by 12.9% in Q1FY24.

  #1QWithCNBCTV18 | Expect double-digit revenue growth for FY24. Net debt is at ?283 cr, some of the raised funds will go towards debt reduction: Vir Advani, Blue Star to CNBC-TV18 pic.twitter.com/ElxbvwzbQk

  — CNBC-TV18 (@CNBCTV18Live) August 4, 2023

• IT stocks like Wipro, Coforge, LTIMindtree, HCL Technologies and Tech Mahindra are rising in trade. All the constituents of the broader sectoral index, Nifty IT, are also trading in the green

• JM Financial is falling as its net profit contracts by 11% YoY to Rs 176.6 crore in Q1FY24. However, its revenue grows by 34.6%, aided by improvements in interest, brokerage, and fees & commission income. The lender's asset quality depreciates as its gross NPA increases by 60 bps YoY. It features in a screener of stocks with a decline in quarterly net profit and profit margin (YoY).

• Cipla touches 52-week high today as reports suggest that Blackrock is expected to acquire over 33% promoter stake in the firm. The exit of the previous promoters, the Hamied family, from the company is expected to be formally initiated. It appears on a screener for stocks with strong momentum.

• Concord Biotech raises Rs 464.95 crore from anchor investors ahead of its IPO by allotting 62.7 lakh shares at Rs 741 each. Investors include HSBC Mutual Fund, Government Pension Fund Global, Abu Dhabi Investment Authority, Amundi Funds, Polar Capital Funds and Pinebridge Global Funds.

• JP Morgan maintains its ‘Underperform’ rating on Gujarat Gas with a target price of Rs 350, citing disappointing Q1 results due to margin compression. The brokerage expects margin and volume volatility to continue for the firm.

  Brokerage Radar | #JPMorgan on #GujaratGas maintains 'underperform' as firm's Q1 PAT misses estimates. pic.twitter.com/yQ6ZQzYufo

  — ET NOW (@ETNOWlive) August 4, 2023

• Eicher Motors rises as its Q1FY24 net profit increases by 50.4% YoY to Rs 918.3 crore. Its revenue grows by 22.7% YoY and EBITDA margin improves by 470 bps YoY. The company appears in a screener of stocks with increasing quarterly revenue.

• Lupin rises as its Q1FY24 net profit increases to Rs 452.3 crore, compared to a net loss of Rs 89.1 crore in Q1FY23. Its revenue grows by 28.6% YoY on the back of robust growth in North America, India, Europe, Middle East and Africa. The company appears in a screener of stocks with strong annual EPS growth.

• Bharti Airtel’s Q1FY24 net profit marginally rises by 0.4% YoY to Rs 1,612.5 crore, despite its revenue growing by 14.3%. The profit decline is mainly due to a one-time loss of Rs 3,416.3 crore caused by the devaluation of the Nigerian currency. Its average revenue per user grows by 9.8% YoY to Rs 200. The stock shows up in a screener for companies with revenues rising sequentially for the past eight quarters.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (95.40, 10.23%), PB Fintech Ltd. (781.00, 8.25%) and LIC Housing Finance Ltd. (426.65, 8.19%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (209.80, -5.05%), Cummins India Ltd. (1,796.10, -4.52%) and Max Healthcare Institute Ltd. (538.30, -3.13%).

Volume Rockets

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

Top high volume gainers on BSE included Zomato Ltd. (95.40, 10.23%), LIC Housing Finance Ltd. (426.65, 8.19%) and Info Edge (India) Ltd. (4,886.70, 7.69%).

Top high volume losers on BSE were Mahanagar Gas Ltd. (1,056.25, -5.75%), Cummins India Ltd. (1,796.10, -4.52%) and Kalpataru Projects International Ltd. (606.20, -3.88%).

Amber Enterprises India Ltd. (2,504.25, 3.91%) was trading at 5.7 times of weekly average. Dixon Technologies (India) Ltd. (4,616.25, 3.89%) and Welspun Corp Ltd. (321.20, -2.80%) were trading with volumes 5.1 and 4.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

37 stocks took off, crossing 52-week highs, while 1 stock was an underachiever and hit its 52-week low.

Stocks touching their year highs included - Akzo Nobel India Ltd. (2,822.80, -2.66%), Alembic Pharmaceuticals Ltd. (780.40, -0.08%) and Apollo Tyres Ltd. (437.30, 1.33%).

Stock making new 52 weeks lows included - Vedanta Ltd. (247.05, -2.76%).

12 stocks climbed above their 200 day SMA including Jubilant Foodworks Ltd. (517.15, 5.27%) and FSN E-Commerce Ventures Ltd. (147.55, 2.86%). 6 stocks slipped below their 200 SMA including Metropolis Healthcare Ltd. (1,359.25, -3.44%) and Bajaj Finserv Ltd. (1,486.30, -0.49%).