Trendlyne Marketwatch
Trendlyne Marketwatch
18 Oct 2023
Market closes lower, Zensar Technologies' Q2FY24 net profit up 11.3% QoQ

Trendlyne Analysis

Nifty 50 closed at 19,671.10 (-140.4, -0.7%) , BSE Sensex closed at 65,877.02 (-551.1, -0.8%) while the broader Nifty 500 closed at 17,344.00 (-123.7, -0.7%), of the 1,981 stocks traded today, 647 were gainers and 1,292 were losers.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,671. The volatility index, Nifty VIX, rose by 2.5% and closed at 11 points. Tata Elxsi’s Q2FY24 net profit rose 5.9% QoQ to Rs 200 crore and revenue increased by 3.7%.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. Nifty Pharma and Nifty Healthcare closed higher than Tuesday’s closing levels. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day, with a rise of over 0.4%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. The data released by Eurostat indicated that the Eurozone’s core CPI for September declined to 4.5% from 5.3% in August. Brent crude prices increase by 2% as the conflict between Israel and Hamas escalates.

  • Relative strength index (RSI) indicates that stocks like ITI, The Fertilisers and Chemicals Travancore, Coal India and MMTC are in the overbought zone.

  • Polycab India is falling despite its net profit rising by 59% YoY to Rs 429.8 crore in Q2FY24. Revenue grows by 27% YoY, aided by better sales in the wires & cables and FMEG segments. It appears in a screener of stocks showing growth in quarterly net profit and profit margin.

  • NHPC is falling as the company estimates the losses caused by the Sikkim flash floods at nearly Rs 233.6 crore. However, the management states that all the assets are insured under the construction all-risk policy. It expects a delay of six months and a cost overturn for the project.

  • Syngene International plunges after it lowers its growth guidance for FY24, citing a slowdown in the US biotech segment. The company expects revenue growth in the mid-teens on a constant currency basis, compared to its earlier guidance of high-teen growth. Its Q2FY24 revenue grows by 18.5% to Rs 910.1 crore, while net profit rises by 14.2% to Rs 116.5 crore.

  • Power stocks like ABB India, Seimens, Bharat Heavy Electricals and JSW Energy are falling in trade. All constituents of the broader BSE Power index are trading in the red.

  • Happiest Minds Technologies falls as its Q2FY24 net profit drops by 5.1% QoQ to Rs 54.5 crore. However, its revenue rises by 5.7% QoQ, aided by its database system and professional engineering services segments. The company appears in a screener of stocks with declining net profit and margins.

  • IRM Energy's Rs 545.4 crore IPO gets bids for 1.7X the available 76.3 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 1.8X the available 37 lakh shares on offer.

  • KRChoksey downgrades its rating on Tata Consultancy Services (TCS) to ‘Add’ from ‘Buy’ but keeps the target price unchanged at Rs 3,888. This implies an upside of 11.2%. Despite the macroeconomic uncertainties, the brokerage says the company is poised for healthy growth in the medium term due to its robust order book and deal wins. It expects the firm’s net profit to grow at a CAGR of 12.4% over FY23-25.

  • Housing and Urban Development Corporation falls more than 9% in trade as it's promoter, the President of India acting through the Ministry of Housing and Urban Affairs, proposes to sell 7 crore shares (3.5% equity) through the stock exchange. It appears in a screener for stocks with low Piotroski score.

  • Tejas Networks rises to its all-time high of Rs 940 per share as it partners with FibreConnect, an Italian telecom infrastructure developer. As per the contract, Tejas Networks will aid the company in deploying an end-to-end optical network in Italy.

  • Sugar export restrictions will be extended again until October 31 next year, to enhance the availability of the product in the domestic market during the festive period. These restrictions, however, will not apply to sugar exported to the EU and the US under CXL and TRQ duty concession quotas.

  • IIFL Securities rises to a new 52-week high of Rs 104.3 as its Q2FY24 net profit surges by 151.5% YoY to Rs 141.2 crore. Its revenue grows by 64.3% YoY, aided by growth in fees & commission and interest incomes. The company appears in a screener of stocks with growing net profit and margins.

  • ITI touches a 52-week high as its Electromagnetic Compatibility Laboratory (EMC Lab) receives a Certificate of Accreditation from NABL. The lab has various industrial, medical and scientific applications. It appears in a screener for stocks with strong momentum.

  • Zensar Technologies rises as its Q2FY24 net profit increases by 11.3% QoQ to Rs 173.9 crore. Its revenue also improves by 1.7% QoQ, aided by growth in digital and application services. EBITDA margins improve by 40 basis points QoQ. The company appears in a screener of stocks nearing their 52-week highs with significant volumes.

  • Shailesh Chandra, MD of Tata Motors, says there is persistent demand for SUVs but at the expense of hatchbacks and sedans. He notes that the company's SUV sales share has jumped to 51%, indicating a growing consumer preference for SUVs. Tata Motors has also released facelift versions of its SUVs, Harrier and Safari. He adds that the company's rural demand has been consistent.

  • CIE Automotive India's net profit surges by 119.1% YoY to Rs 375.4 crore in Q2FY24. Its revenue increase is marginal at 2.2% YoY due to a dip in the European market. The firm's EBITDA margin expands by 220 bps YoY on the back of reduced raw material expenses. The company appears in a screener of stocks with high analyst rating and at least 20% target price upside.

  • The Supreme Court rules against Telecom giants like Bharti Airtel and Vodafone Idea in a tax case. It orders these companies to classify license fees paid to the Department of Telecommunications as capital expenditure instead of revenue expenditure. This has significant tax implications as it may potentially lead to increased tax liabilities for telecom companies.

  • IRM Energy raises Rs 160.4 crore from anchor investors ahead of its IPO by allotting around 31.8 lakh shares at Rs 505 each. Investors include DSP Mutual Fund, Quant Mutual Fund, PNB Metlife India Insurance Co, ITI Mutual Fund and HDFC Life Insurance Co.

  • Centre lowers the windfall tax on locally produced crude oil to Rs 9,050 per tonne from Rs 12,100 earlier. Export taxes on diesel are also cut to Rs 4 per litre, and to Rs 1 per litre for aviation turbine fuel (ATF). The windfall tax on petrol remains Nil.

  • L&T Technology Services falls despite its Q2FY24 net profit rising 1.4% QoQ to Rs 315.4 crore. Its revenue grows by 3.3% YoY, aided by growth in the transportation and telecom & hitech segments. The company appears in a screener of stocks with increasing quarterly net profits.

  • Dolly Khanna adds Rajshree Sugars & Chemicals to her portfolio in Q2FY24. She buys a 1.1% stake in the company.

  • Porinju Veliyath sells a 1.4% stake in Ansal Buildwell in Q2FY24. He now holds a 2% stake in the company.

  • Morgan Stanley maintains its 'Buy' rating on Can Fin Homes with a target price of Rs 1,000. The brokerage says that the company's reported PAT beat its estimates by 7%, driven by a higher NIM and a reduced effective tax rate. The NIM increased by 29 bps QoQ to 3.9%.

  • Sunil Singhania sells a 0.3% stake in Dreamfolks Services in Q2FY24. He now holds a 1.5% stake in the company.

  • Mazagon Dock Shipbuilders is rising as it bags a contract worth Rs 310 from the Ministry of Defence for the construction of a training ship for the Indian Coast Guard. The stock shows up in a screener for companies with book value per share improving over the past two years.

  • Tata Elxsi is rising as its Q2FY24 net profit rises 5.9% QoQ to Rs 200 crore, and revenue increases by 3.7% QoQ, driven by growth in the software development & services segment. The stock shows up in a screener for companies with improving cash flow from operations over the past two years.

  • Bajaj Finance’s Q2FY24 standalone net profit rises 25.6% YoY to Rs 3,105.8 crore and net interest income grows by 26% YoY, driven by strong demand for loans. The company’s assets under management also increase by 35% YoY, led by growth in the vehicle and consumer finance segments. The stock shows up in a screener for companies with high TTM EPS growth.

Riding High:

Largecap and midcap gainers today include Cipla Ltd. (1210.60, 3.16%), Endurance Technologies Ltd. (1,613.00, 2.49%) and Dr. Reddy's Laboratories Ltd. (5,677.45, 2.41%).

Downers:

Largecap and midcap losers today include Syngene International Ltd. (727.30, -6.68%), Biocon Ltd. (238.65, -6.38%) and L&T Technology Services Ltd. (4,353.60, -5.63%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included IRB Infrastructure Developers Ltd. (34.70, 6.61%), Ratnamani Metals & Tubes Ltd. (2,743.45, 5.75%) and Aarti Drugs Ltd. (554.00, 5.55%).

Top high volume losers on BSE were Housing and Urban Development Corporation Ltd. (80.25, -10.78%), Syngene International Ltd. (727.30, -6.68%) and Biocon Ltd. (238.65, -6.38%).

Sun Pharma Advanced Research Company Ltd. (240.35, 5.35%) was trading at 33.2 times of weekly average. Prince Pipes & Fittings Ltd. (702.25, 2.31%) and Tejas Networks Ltd. (878.55, 0.25%) were trading with volumes 11.1 and 10.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

28 stocks made 52 week highs, while 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (944.35, 3.63%), Coal India Ltd. (316.95, -0.14%) and GAIL (India) Ltd. (131.00, -0.30%).

Stocks making new 52 weeks lows included - Rajesh Exports Ltd. (448.35, -1.83%) and Navin Fluorine International Ltd. (3,675.40, -0.58%).

3 stocks climbed above their 200 day SMA including Elgi Equipments Ltd. (496.00, 1.64%) and Sterlite Technologies Ltd. (162.05, 1.15%). 8 stocks slipped below their 200 SMA including Biocon Ltd. (238.65, -6.38%) and EID Parry (India) Ltd. (497.95, -2.67%).

 
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