Trendlyne Analysis

Nifty 50 closed at 19,632.55 (61.7, 0.3%), BSE Sensex closed at 65,995.81 (149.3, 0.2%) while the broader Nifty 500 closed at 17,003.85 (54.6, 0.3%). Of the 1,939 stocks traded today, 1,065 were gainers and 824 were losers.

Indian indices rebounded from their day lows and closed in the green on a volatile day of trade. The benchmark Nifty 50 index closed above the 19,600 mark. Bajaj Consumer Care closed 2.9% higher and touched a new 52-week high after its net profit rose 36.3% YoY to Rs 46.2 crore in Q1FY24. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, following the benchmark index. Nifty Metal and Nifty Media closed over 2% higher than their Tuesday’s close. According to Trendlyne's sector dashboard, Coal was the top-performing sector of the day. 

European indices traded in the green, despite the Asian indices closing mixed. US index futures traded higher, hinting at a positive start to the trading session after losses on Tuesday that were sparked by a downgrade of several regional banks by Moody's.

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

• Trent is rising as its Q1FY24 net profit rises 32.9% YoY to Rs 173.5 crore, while its revenue grows by 45.7% YoY to Rs 2,628.4 crore. However, its EBITDA margins contract by 219 bps YoY to 14% due to higher rent expenses, input costs and employee expenses. The stock shows up in a screener for companies with strong annual EPS growth.

• Dr. Reddy's Laboratories and Dixon Technologies (India) touch their 52-week highs of Rs 5,880 and Rs 4,967.7 respectively. The former has risen 12.8% over the past month, while the latter increased by 15.8%.

• Kalyan Jewellers India rises to an all-time high of Rs 189 as its Q1FY24 net profit increases by 33.2% YoY to Rs 143.5 crore. Its revenue also grows by 31.3% YoY, aided by the jewellery business. The company appears in a screener of stocks with improving book value per share.

• Bajaj Consumer Care touches a new 52-week high of Rs 237.7 per share as its net profit grows by 36.3% YoY to Rs 46.2 crore in Q1FY24. Its revenue also improves by 8.3% YoY, aided by growth in the ADHO segment and increased sales in the international market. Its EBITDA margin expands by 311 bps YoY. The company appears in a screener of stocks with FIIs increasing their holding.

• Bharat Forge is rising as its Q1FY24 net profit jumps by 150% YoY to Rs 297.6 crore and revenue grows by 40% YoY. Its EBITDA margin improves by 35 bps YoY to 15.35%. The company will also invest Rs 150 crore into its wholly owned subsidiary, Kalyani Powertrain. The stock shows up in a screener for companies with revenues increasing sequentially over the past three quarters.

• Mutual Funds' net inflow surges MoM to Rs 82,046 crore in July, according to data released by the Association of Mutual Funds in India (AMFI). Equity inflow stands at Rs 7,626 crore during the same period.

  AMFI July data???? pic.twitter.com/0Q9bpRg4WA

  — ET NOW (@ETNOWlive) August 9, 2023

• Brigade Enterprises falls as its Q1FY24 net profit decreases by 56.1% YoY to Rs 38.5 crore. Its revenue drops by 25.5% YoY due to decline in the real estate segment. The company appears in a screener of stocks with declining net cash flow.

• Healthcare equipment & supplies, telecommunications equipment and pharmaceuticals & biotechnology sectors rise more than 3% in the past week.

• Banking stocks like ICICI Bank, HDFC Bank, Federal Bank and Bandhan Bank are falling in trade. All constituents of the broader BSE Bankex index are also trading in the red.

• Sudarshan Chemicals rises to a new 52-week high of Rs 566.9 as its Q1FY24 net profit increases by 37.7X YoY to Rs 267 crore. This growth is to the sale of a freehold land in Pune for Rs 356 crore. Its revenue improves by 10.3% YoY, aided by the pigments industries. The company appears in a screener of stocks with strong momentum.

• ICICI Securities upgrades its rating on GE T&D India to ‘Buy’ from ‘Hold’ and raises the target price to Rs 315 from Rs 200, implying an upside of 10.4%. The brokerage turns positive about the company’s prospects on the back of improving order intake and expanding margins. It expects the firm’s revenue to grow at a CAGR of 23.4% over FY23-25.

• EIH rises as its Q1FY24 net profit increases by 65.2% YoY to Rs 103.8 crore. Its revenue grows by 26.7% YoY and its EBITDA margins improve by 7.5 percentage points YoY due to lower finance expenses. The company appears in a screener of stocks with improving RoA.

• Dish TV India surges as Q1FY24 net profit rises by 15.1% to Rs 20.5 crore, despite an 18% fall in revenue. This profit growth is due to reduced finance costs and depreciation & amortisation expenses. The company appoints Manoj Dobhal as Chief Executive Officer, with effect from August 23, 2023.

• According to a poll of economists, India's retail inflation is expected to have surged to 6.4% in July, surpassing RBI’s tolerance band of 2-6% for the first time in five months, due to rising food costs. Food prices, which constitute nearly half of the inflation basket, jumped due to erratic monsoons across the country.

  India's retail #inflation likely accelerated to 6.40% in July on surging food prices, breaching the upper end of the #RBI's 2%-6% tolerance band for the first time in five months, a Reuters poll of economists found.https://t.co/2aDcJhuL3W

  — Mint (@livemint) August 9, 2023

• ideaForge Technology is falling as its Q1FY24 net profit drops by 54.2% YoY to Rs 18.6 crore due to a sharp increase in inventory costs and employee expenses. Its revenue also declines by 2.2% YoY to Rs 97.1 crore. The stock shows up in a screener for companies with declining net cash flows.

• Gensol Engineering rises in today's trade as it bags an order from Odisha Renewable Energy Development Agency (OREDA) for a 5-year operational lease worth Rs 115 crore for providing 300 electric cars. It appears in a screener for stocks with strong momentum.

• ICICI Lombard General Insurance is falling as it receives a show cause notice (SCN) with a tax demand of Rs 273.4 crore from the Directorate General of GST Intelligence. The SCN relates to an industry-wide issue on the applicability of GST on salvage-adjusted and ineligible input tax credits for settled motor claims. In protest, the company has deposited Rs 104.1 crore without accepting any liabilities and plans to file a response.

• Lupin touches 52-week high as it receives approval from the US FDA for its new drug application for Fluocinolone Acetonide Oil. It will be manufactured at Lupin’s Somerset facility in the US. The company appears in a screener for stocks with strong momentum.

• Adani Wilmar falls sharply as reports suggest that Adani Enterprises may consider selling a 44% stake in the company. Following the sale, Gautam Adani and his family will likely keep a minority stake in their personal capacity.

  Adani Wilmar shares tank 5% amid report Adani Enterprises may sell stake in Wilmar venture@amit_mudgill https://t.co/XX8Sh1OXGJ

  — Business Today (@business_today) August 9, 2023

• Zydus Family Trust, promoter of Zydus Wellness, buys a 1% stake in the company on Tuesday. It now holds a 10.5% stake.

• Oil India falls as its Q1FY24 net profit decreases by 50.9% YoY to Rs 1,426.6 crore. Its revenue drops by 56.5% YoY due to decline in crude oil, refinery products and liquified petroleum gas (LPG) segments. The company appears in a screener of stocks with declining quarterly net profit and margins.

• Phoenix Mills is rising despite its net profit dropping by 66.5% YoY to Rs 240.5 crore. The sharp fall in profitability is due to a high base in Q1FY23 on the back of a one-time gain of Rs 556.8 crore. The firm’s revenue rises by 41.1% YoY, driven by healthy retail consumption. Its EBITDA margins also expand by 4.5 percentage points YoY to 60.7%.

• Satish Pai, Managing Director of Hindalco, believes that costs will decline by 3% in Q2, with LME realisations around $2,100-2,300 per tonne. He also anticipates aluminium EBITDA per tonne to be around $700, and Novelis EBITDA to touch $525 per tonne by Q4 or earlier.

  #OnCNBCTV18 | Expect costs to further cool off by 3% in Q2, LME realisations will hover between $2,100-2,300/t. Debt rose as working cap requirement got blocked in Q1 owing to copper imports, says Satish Pai of @Hindalco_World pic.twitter.com/tjUgZDwjuA

  — CNBC-TV18 (@CNBCTV18Live) August 9, 2023

• Siemens falls despite its Q1FY24 net profit rising 51.5% YoY to Rs 455.5 crore. Its revenue improves by 15.4% YoY, aided by the smart infrastructure, mobility and digital industries. The company appears in a screener of stocks with high TTM EPS growth.

• SBI Life Insurance Co is rising after announcing the appointment of Amit Jhingran as Managing Director and CEO of the company. The firm shows up in a screener for stocks with strong momentum.

• Coal India’s Q1FY24 net profit declines by 9.8% YoY to Rs 7,971 crore due to higher employee costs and contractual expenses. However, its revenue rises by 2.5% YoY on the back of increased sales volumes. The company shows up in a screener for stocks in the PE buy zone, with high durability scores and rising momentum scores.

Riding High:

Largecap and midcap gainers today include JSW Energy Ltd. (314.25, 8.05%), Aditya Birla Fashion and Retail Ltd. (216.10, 7.03%) and Bharat Forge Ltd. (963.10, 6.33%).

Downers:

Largecap and midcap losers today include Adani Wilmar Ltd. (378.15, -3.77%), Bata India Ltd. (1,700.30, -3.17%) and Divi's Laboratories Ltd. (3,737.70, -2.83%).

Movers and Shakers

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

Top high volume gainers on BSE included V-Guard Industries Ltd. (315.35, 10.30%), JSW Energy Ltd. (314.25, 8.05%) and Shyam Metalics and Energy Ltd. (450.90, 7.08%).

Top high volume losers on BSE were Brigade Enterprises Ltd. (565.95, -3.82%), Adani Wilmar Ltd. (378.15, -3.77%) and Medplus Health Services Ltd. (895.70, -1.48%).

Shoppers Stop Ltd. (805.25, -0.04%) was trading at 16.2 times of weekly average. Latent View Analytics Ltd. (401.25, 5.61%) and Data Patterns (India) Ltd. (2,112.30, 3.99%) were trading with volumes 11.0 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

43 stocks hit their 52-week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (3598.00, 1.04%), Ashok Leyland Ltd. (187.55, 2.10%) and Aurobindo Pharma Ltd. (879.25, 1.32%).

13 stocks climbed above their 200 day SMA including Mas Financial Services Ltd. (811.85, 6.37%) and Voltas Ltd. (849.45, 4.09%). 7 stocks slipped below their 200 SMA including Indiabulls Real Estate Ltd. (67.15, -1.61%) and HLE Glasscoat Ltd. (590.00, -1.53%).