Trendlyne Marketwatch
Trendlyne Marketwatch
23 Oct 2023
Market closes lower, ICICI Securities downgrades Tata Communications to 'Hold' rating

Trendlyne Analysis

Nifty 50 closed at 192,81.75 (-260.9, -1.3%) , BSE Sensex closed at 64,571.88 (-825.7, -1.3%) while the broader Nifty 500 closed at 16,888.70 (-320.1, -1.9%), of the 2,011 stocks traded today, 134 were on the uptick, and 1,854 were down.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,282. The volatility index, Nifty VIX, rose by 0.8% and closed at 10.9 points. Kotak Mahindra Bank’s Q2FY24 net profit increased by 23.6% YoY to Rs 4,461 crore, while its revenue expanded by 23.1% YoY on the back of strong performance in the retail banking segment.

Nifty Midcap 100 and Nifty Smallcap 100 closed lower, following the benchmark index. All major sectoral indices closed lower than Friday’s closing levels. According to Trendlyne’s sector dashboard, telecommunications equipment emerged as the worst-performing sector of the day, with a drop of over 7.6%.

Most European indices trade in the red. US indices futures trade lower, indicating a negative start. The rising tensions in the Middle East, along with surging US bond yields on higher rate expectations, have led to the decline in global indices.

  • Relative strength index (RSI) indicates that stocks like BSE, Angel One, Bajaj Auto and Multi Commodity Exchange of India are in the overbought zone.

  • Supriya Lifescience declines despite signing an agreement with Kalinga Institute of Technology to develop Quickblue, a novel oral cancer detection kit. The stock shows up in a screener for companies with inefficient use of shareholder funds.

  • Mahindra Holidays & Resorts India is falling as its Q2FY24 net profit declines by 47.8% YoY to Rs 21.3 crore due to higher employee expenses and finance costs. Its revenue rises 9.5% YoY to Rs 655.3 crore. The stock shows up in a screener for companies with declining net cash flows.

  • Hindustan Foods acquires a 100% stake in KNS Shoetech for a consideration of Rs 3.1 crore. This acquisition is part of the company's plans to invest Rs 100 crore to set up, acquire and invest in sports shoe manufacturing.

  • Aurobindo Pharma is rising as its subsidiary, Eugia Pharma Specialities, receives final approval from the US FDA to manufacture and market testosterone cypionate injection. The drug is equivalent to the reference listed drug (RLD), depo-testosterone injection, with estimated annual sales of $226.8 million, according to IQVIA.

  • PSU banks like Central Bank of India, Indian Overseas Bank, Bank of India, Bank of Maharashtra and UCO Bank are falling in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the red.

  • Laurus Labs falls as its Q2FY24 net profit plummets 84.1% YoY to Rs 37 crore and revenue drops 22.2% YoY. According to Trendlyne Forecaster, the company missed its profit and revenue estimates by 65% and 10.2%, respectively. It appears in a screener for stocks with declining annual net profit for the past two years.

  • Kotak Mahindra Bank falls even after RBI approves Ashok Vaswani as the new CEO & MD. Its Q2FY24 net profit surges 23.6% YoY to Rs 4,461 crore, and revenue rises 23.1% YoY, driven by a strong retail banking sector. The stock appears in a screener for companies with increasing revenue for the past eight consecutive quarters.

  • Telecom stocks like MTNL, OnMobile Global, ITI and RailTel Corp of India fall more than 7% in trade. All constituents of the broader S&P BSE Telecom index are also trading in the red.

  • The shipping industry faces scrutiny from GST authorities over the nonpayment of integrated GST on ocean freight. Foreign shipping companies operating through branches in India are under investigation for evading taxes on costs allocated to head offices. The sector's estimated total tax burden ranges between Rs 2-2.5 lakh crore, according to experts.

  • ICICI Securities downgrades its rating on Tata Communications to ‘Hold’ from ‘Buy’ and lowers the target price to Rs 1,740 from Rs 1,850. This implies an upside of 6.3%. The brokerage cites the rise in core connectivity costs, near-term macroeconomic challenges and high valuations for lowering its rating on the stock. It expects the company’s revenue to grow at a CAGR of 10.6% over FY23-25.

  • Power Grid Corp of India's board of directors approves an investment of Rs 119.9 crore for its eastern region expansion scheme. The expansion is expected to be completed in Q1FY26.

  • Genus Power Infrastructures is rising as it bags an order worth Rs 3,121.4 crore for the supply, installation and commissioning of 36.3 lakh smart meters. Jitendra Kumar Agarwal, Joint MD of the firm, says, “The recent influx of orders serves to fortify our position as the leading provider of intelligent metering solutions in the Indian market, reaffirming our industry dominance.”

  • Arun Misra, CEO of Hindustan Zinc, says that zinc prices will range between $2,400 and $2,600 per tonne. He adds that by 2025, they aim to operate at a capacity of 1.2mt, up from 1mt. The company expects their offer for sale (OFS) to be completed in FY24 and the cost of production (COP) to be lower in H2FY24, compared to H1FY24.

  • BSE rises more than 7% as it announces a hike in transaction costs for equity derivatives. The new rates start at Rs 500 per crore for premium values less than Rs 3 crore, and go up to Rs 2,000 per crore for premium values exceeding Rs 2,000 crore.

  • Ashish Kacholia trims his stakes in Bharat Bijlee and Venus Pipes & Tubes to below 1% in Q2FY24. He held 1.5% and 2% in them respectively in Q1.

  • Sunil Singhania sells a 2% stake in Rajshree Polypack in Q2FY24. He now holds a 4.3% stake in the company.

  • The government plans to spend Rs 30,000 crore in expanding the Pradhan Mantri Fasal Bima Yojana (PMFBY) portal into a complete platform which will include assets other than crops, such as ponds, tractors, animals, and palm trees. The AIDE app will lead the programme to assure door-to-door enrollment, making crop insurance more accessible and convenient for farmers.

  • Rakesh Jhunjhunwala's portfolio buys a 0.6% stake in D B Realty in Q2FY24. It now holds a 2% stake in the company.

  • KFIN Technologies is rising as its net profit grows by 28.1% YoY to Rs 61.4 crore in Q2FY24. Revenue improves by 16% YoY on the back of an increase in assets under management (AUM) and transaction volume. It shows up in a screener of stocks transitioning from negative to positive growth in sales and net profit, along with strong price momentum.

  • JSW Energy rises as its Q2FY24 net profit rises by 82.6% YoY to Rs 850.2 crore due to a decline in fuel cost. Its revenue also increases by 30.5% YoY. The stock shows up in a screener for companies with increasing revenue for the past three quarters.

  • CLSA maintains a "Buy" rating on One97 Communications (Paytm) and raises the target price to Rs 1,200. The brokerage notes strong growth in the company's gross merchandise value (GMV), leading it to revise EBITDA predictions to 12-13%. The company is also innovating with new sound box variations. Additionally, the brokerage highlights that Paytm has a new partner and that the take rate remains steady.

  • CreditAccess Grameen is rising as its Q2FY24 net profit jumps 120% YoY to Rs 349.2 crore, while its revenue surges by 85.7% YoY. The company’s net interest income grows 49.6% YoY, driven by robust loan growth. The company shows up in a screener for stocks with consistently high returns over the past five years.

  • Media stocks like Network18 Media & Investments, Hathway Cable & Datacom, DB Corp, TV18 Broadcast and Nazara Technologies are falling in trade. All the constituents of the broader sectoral index, Nifty Media, are also trading in the red.

  • One97 Communications rises to its 52-week high of Rs 998.3 per share as its net loss contracts by 49.1% YoY to Rs 290.5 crore in Q2FY24. Revenue grows by 31.6% YoY, aided by an increase in the payment & financial and cloud services segments. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • ICICI Bank’s Q2FY24 net profit rises by 35.8% YoY to Rs 10,261 crore, while its net interest margin expands by 22 bps YoY to 4.5%. The bank’s net interest income grows 23.8% YoY, led by strong demand in the retail and business banking loan sectors. The stock shows up in a screener for companies with net profits increasing sequentially for the past four quarters.

Riding High:

Largecap and midcap gainers today include Ipca Laboratories Ltd. (998.80, 6.72%), United Breweries Ltd. (1,629.05, 1.14%) and Balkrishna Industries Ltd. (2,566.90, 1.03%).

Downers:

Largecap and midcap losers today include Laurus Labs Ltd. (362.40, -9.61%), Bank of India (90.80, -8.84%) and Supreme Industries Ltd. (4,322.05, -8.31%).

Volume Rockets

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

Top high volume gainers on BSE included CreditAccess Grameen Ltd. (1,507.40, 8.46%), Ipca Laboratories Ltd. (998.80, 6.72%) and Rainbow Childrens Medicare Ltd. (1,111.35, 3.23%).

Top high volume losers on BSE were Jubilant Pharmova Ltd. (358.50, -10.40%), Laurus Labs Ltd. (362.40, -9.61%) and Mahindra Holidays & Resorts India Ltd. (408.60, -8.85%).

Amber Enterprises India Ltd. (2,793.90, -7.99%) was trading at 10.7 times of weekly average. Medplus Health Services Ltd. (801.25, 2.08%) and Balkrishna Industries Ltd. (2,566.90, 1.03%) were trading with volumes 6.4 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks hit their 52 week highs, while 10 stocks hit their 52 week lows.

Stocks touching their year highs included - Bombay Burmah Trading Corporation Ltd. (1,427.50, 0.58%), Ipca Laboratories Ltd. (998.80, 6.72%) and Multi Commodity Exchange of India Ltd. (2,212.70, -4.62%).

Stocks making new 52 weeks lows included - Atul Ltd. (6,391.30, -4.27%) and Gujarat Gas Ltd. (406.80, -1.55%).

4 stocks climbed above their 200 day SMA including Voltas Ltd. (821.30, 0.33%) and Nuvoco Vistas Corporation Ltd. (351.40, -0.10%). 43 stocks slipped below their 200 SMA including Jubilant Pharmova Ltd. (358.50, -10.40%) and India Cements Ltd. (209.70, -7.05%).

 
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