Trendlyne Analysis

Nifty 50 closed at 19,597.30 (80.3, 0.4%), BSE Sensex closed at 65,953.48 (232.2, 0.4%) while the broader Nifty 500 closed at 16,956.35 (65.8, 0.4%). Market breadth is in the green. Of the 1,965 stocks traded today, 1,056 were on the uptick, and 870 were down.

Indian indices closed in the green, with the Nifty 50 settling just below the 19,600 mark. The Indian volatility index, Nifty VIX, rose sharply by over 5%. Emami closed 2.2% higher after its Q1FY24 net profit rose by 86.5% YoY to Rs 137.7 crore, while its gross margins expanded by 240 bps YoY to 64.5%, led by an easing of raw material prices.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Realty closed higher than Friday’s levels.  According to Trendlyne's sector dashboard, Healthcare Equipment & Supplies was the top-performing sector of the day. 

Major European indices traded in the red, amid mixed global cues. Asian stocks closed mixed, while the US index futures traded in the green, indicating a positive start to the session. Brent crude oil futures traded lower after gaining around 3.2% in the last two trading sessions.

• Relative strength index (RSI) indicates that stocks like Lupin, Indian Railway Finance Corp, Cipla and BSE are in the overbought zone.

• Balmer Lawrie & Company and Alkem Laboratories touch their 52-week highs of Rs 157.8 and Rs 4,168.7 respectively. The former has risen 13.8% over the past month, while the latter increased by 17.8%.

• Whirlpool of India is falling as its net profit declines by 10.6% YoY to Rs 74.9 crore in Q1FY24. Revenue falls by 2% YoY to Rs 2,038.6 crore. Its EBITDA margin also drops by 28 bps YoY due to increased employee benefits and finance costs. The company appears in a screener of stocks with declining revenue and net profit YoY.

• Gujarat Narmada Valley Fertilizers & Chemicals is falling as its Q1FY24 net profit declines by 84.6% YoY to Rs 88 crore, while its EBITDA margin contracts by 21.9 percentage points YoY to 6.4%. Revenue also falls by 38.7% YoY led by a strong decline across its business segments. The stock shows up in a screener for companies with declining net cash flows.

• According to a poll of economists, RBI’s monetary policy committee (MPC) is expected to keep interest rates and policy stance unchanged at its meeting this week. They anticipate India's CPI inflation to rise to 6% in July.

  #RBI's monetary policy committee (MPC) is likely to leave interest rates and policy stance unchanged at its meeting this week, according to a Mint survey of 10 economists. #RBIMPC #RBIPolicy
  
  (@GopikaGopa reports) https://t.co/pcXDuV2ruM.

  — Mint (@livemint) August 7, 2023

• Emami is rising as its Q1FY24 net profit surges by 86.5% YoY to Rs 137.7 crore, while its gross margins expand by 240 bps YoY to 64.5%, led by an easing of raw material prices. Its revenue rises by 6.8% YoY, driven by healthy growth in both domestic and international businesses. The company shows up in a screener for stocks in the PE buy zone with high durability scores and rising momentum scores.

• SBFC Finance's Rs 1,025 crore IPO gets bids for 70.16X the available 13.4 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 10.99X of the available 6.6 crore shares on offer.

• Concord Biotech's Rs 1,550 crore IPO gets bids for 2.26X the available 1.5 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 2.72X of the available 73.2 lakh shares on offer.

• Eris Lifesciences is rising despite its net profit staying flat at Rs 94.8 crore in Q1FY24. Revenue grows by 17.1% YoY, helped by improved sales in branded formulations, anti-diabetic and cardiovascular franchises. It appears in a screener of stocks with increasing cash flow from operations over the past two years.

• ICICI Securities downgrades Alembic Pharmaceuticals from 'Hold' to 'Reduce' but raises the target price to Rs 705 from Rs 590, implying a 10.9% downside. Despite high valuation concerns, the brokerage foresees improved overall profitability due to lower depreciation expenses and increased research & development spending. It estimates a 32.6% CAGR in net profit for FY23-25.

• Fortis Healthcare falls as its Q1FY24 net profit declines by 8.6% YoY to Rs 111.8 crore due to a rise in medical consumable and drug expenses. However, revenue increases by 10.4% YoY. It appears in a screener of stocks with high volume and are top losers.

• India Cements is falling as it posts a net loss of Rs 87.4 crore in Q1FY24, compared to a net profit of Rs 80 crore in Q1FY23, on the back of rising raw material costs. Its revenue declines by 5.1% YoY to Rs 1,436.7 crore. It shows up in a screener of stocks with the highest increase in promoter pledges.

• Coromandel International is rising as its arm, Dhaksha Unmanned Systems, bags an order worth Rs 165 crore for the supply of 200 drones to the Indian Army. The stock shows up in a screener for companies with book value per share improving over the past two years.

• Chander Agarwal, MD of TCI Express, says Q1 tends to be a soft quarter for the company. He adds that it has taken a price hike during the quarter and anticipates revenue growth of 13–14% and EBITDA growth of 20% in FY24.

  #OnCNBCTV18 | #Q1 is generally a soft quarter, will maintain the #guidance. 14% #revenue growth will ensure over 20% EBITDA growth. #FY24 revenue #growth seen at 13-14% & EBITDA growth at 20%, says Chander Agarwal of TCI Express pic.twitter.com/X1vtx9uEVB

  — CNBC-TV18 (@CNBCTV18Live) August 7, 2023

• Telecom stocks like HFCL, ITI and Tejas Networks are seeing an increase of more than 4% in trade. The broader S&P BSE Telecom index is also trading more than 2% higher.

• Navin Fluorine International falls more than 3%, following a directive from the Gujarat Pollution Control Board to halt operations at their industrial plant of NFASL in GIDC Dahej. The board has also asked the firm to pay Environment Damage Compensation of Rs 1 crore. The company appears in a screener of stocks with weak momentum.

• Aditya Birla Fashion & Retail is falling as it posts a net loss of Rs 141.4 crore in Q1FY24, compared to a net profit of Rs 97.5 crore in Q1FY23. Its revenue grows by 11.2% YoY but EBITDA margin contracts by 6.4 percentage points YoY to 11% due to weak demand, high-cotton prices and higher investments into its subsidiaries.

• Bharat Heavy Electricals is falling as its net loss expands by 83.3% YoY to Rs 351.7 crore in Q1FY24 due to an increase in employee benefits and raw materials expenses. However, revenue grows by 7.1% YoY, aided by the power and industry segments. The company appears in a screener of stocks in the sell zone.

• C.E. Info Systems rises and hits a 52-week high as its Q1FY24 net profit increases by 15% QoQ to Rs 32.2 crore, while revenue improves by 17.8% QoQ. EBITDA also grows 25.2% YoY to Rs 37.4 crore. The company features in screener for stocks with low debt.

• Retail sales for the automotive industry rise 10% YoY to 17.7 lakh units in July, shows data from the Federation of Automotive Dealers' Association. Two-wheeler retail sales are up 8.2% YoY, while cars increase by 4% YoY.

  Domestic automobile retail sales rose 10% in July driven by sales growth across various segments, including passenger vehicles and two-wheelers.
  
  Here’s what a recent report shows????https://t.co/qSdXV6vRDZ#AutoSales #Business #EVs #Cars #India

  — Moneycontrol (@moneycontrolcom) August 7, 2023

• Yatharth Hospital & Trauma Care Services' shares debut on the bourses at a 2% premium to the issue price of Rs 300. The Rs 685.5 crore IPO has received bids for 36.2 times the total shares on offer.

• Zen Technologies surges and hits an all-time high of Rs 674.85 as its Q1FY24 profit rises by 531.5% YoY to Rs 47.1 crore, while revenue increases by Rs 244.4 crore. Ashok Atluri, Chairman and MD of the company, says, "This strong performance in the quarter was driven by the successful execution of a significant part of the simulation export and domestic anti-drone orders."

• Morgan Stanley downgrades its rating on Delhivery to ‘Equal-weight’ but raises the target price to Rs 460. The brokerage anticipates incremental margins to normalize eventually and revenue CAGR to be sustained at 18-20% in the future.

  Brokerage Radar | Morgan Stanley on Delhivery; Downgrade to Equal-weight from Overweight; Hike target price to Rs 460 from Rs 415 pic.twitter.com/dprJFWZ5E4

  — ET NOW (@ETNOWlive) August 7, 2023

• One97 Communications (Paytm) surges as Managing Director and Chief Executive Officer Vijay Shekhar Sharma buys a 10.3% stake in the company from Antfin (Netherlands) Holdings BV. He now holds 19.4%, making him the largest stakeholder in the company.

• Porinju Veliyath buys a 1% stake in P G Foils for approx Rs 2.9 crore in a bulk deal on Friday.

• Britannia Industries' Q1FY24 net profit grows by 32.4% YoY to Rs 457.1 crore. Revenue improves by 8.4% YoY, aided by a strong distribution network and sales growth. Its EBITDA margin expands by 370 bps YoY, owing to a drop in inflation. The company features in a screener of stocks where FIIs are increasing their holdings QoQ.

Riding High:

Largecap and midcap gainers today include Indian Railway Finance Corporation Ltd. (49.75, 10.43%), Max Healthcare Institute Ltd. (583.35, 8.37%) and One97 Communications Ltd. (850.70, 6.79%).

Downers:

Largecap and midcap losers today include Aditya Birla Fashion and Retail Ltd. (199.45, -4.93%), Adani Green Energy Ltd. (965.90, -4.61%) and Balkrishna Industries Ltd. (2,370.35, -4.52%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Poly Medicure Ltd. (1,455.35, 14.47%), HFCL Ltd. (73.15, 11.76%) and ITI Ltd. (119.90, 8.80%).

Top high volume losers on BSE were Gujarat Ambuja Exports Ltd. (238.65, -6.80%), Aditya Birla Fashion and Retail Ltd. (199.45, -4.93%) and Adani Green Energy Ltd. (965.90, -4.61%).

Sanofi India Ltd. (7,339.85, 5.15%) was trading at 10.0 times of weekly average. Zydus Wellness Ltd. (1,464.45, 2.36%) and Sterlite Technologies Ltd. (158.30, 4.35%) were trading with volumes 6.6 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

38 stocks took off, crossing 52 week highs, while 2 stocks hit their 52 week lows.

Stocks touching their year highs included - Alembic Pharmaceuticals Ltd. (793.30, 1.65%), Aurobindo Pharma Ltd. (868.25, 3.17%) and Zydus Lifesciences Ltd. (655.20, 0.84%).

Stocks making new 52 weeks lows included - Rajesh Exports Ltd. (516.75, 1.52%) and Vedanta Ltd. (237.95, -3.68%).

8 stocks climbed above their 200 day SMA including HFCL Ltd. (73.15, 11.76%) and Swan Energy Ltd. (254.50, 4.28%). 5 stocks slipped below their 200 SMA including Gujarat Ambuja Exports Ltd. (238.65, -6.80%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (559.70, -4.45%).