Trendlyne Analysis

Nifty 50 closed at 19,122.15 (-159.6, -0.8%), BSE Sensex closed at 64,049.06 (-522.8, -0.8%) while the broader Nifty 500 closed at 16,760.80 (-127.9, -0.8%). Market breadth is moving down. Of the 1,972 stocks traded today, 590 were gainers and 1,349 were losers.

Indian indices extended the losses from the afternoon session and closed in the red, with the Nifty 50 closing at 19,122. The volatility index, Nifty VIX, rose by 3.7% and closed at 11.3 points. Torrent Pharma’s Q2FY24 net profit increased by 23.7% YoY to Rs 386 crore and revenue rose 16.1% YoY to Rs 2,660 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. All major sectoral indices closed lower than Monday’s closing levels. According to Trendlyne’s sector dashboard, healthcare equipment & supplies emerged as the top-performing sector of the day, with a rise of over 1.6%.

Most European indices trade in the red except for England’s FTSE 100 trading higher. US indices futures trade lower, indicating a negative start. Crude prices fell by 2% on Tuesday as weak economic data from the Eurozone suggested that the important oil-consuming region is heading towards recession, leading to lower crude oil consumption.

• Money flow index (MFI) indicates that stocks like Prestige Estates Projects, BSE, Bombay Burmah Trading Corp and CreditAccess Grameen are in the overbought zone.

• Delta Corp is rising as the Goa bench of the Bombay High Court directs the Directorate General of GST Intelligence, Hyderabad, to refrain from issuing orders related to the alleged tax notice of Rs 16,194 crore against the company without prior permission from the court.

• Jubilant Pharmova plunges more than 7% in trade, causing it to fall 31.7% below its 52-week high. It has a 'Hold' consensus by brokers tracking the stock. The company also has a broker average target price upside of 23.5%. It appears in a screener of stocks with declining return on equity (RoE) over the past two years.

• CLSA maintains its 'Buy' rating on Amber Enterprises India with a target price of Rs 3,650. Despite modest margins in Q2, the brokerage is optimistic about the company's future prospects. It adds that the company's medium-term growth guidance for non-RAC segments remains robust. According to the brokerage, the company's capacity to scale up fresh segments will be essential for re-rating.

  Brokerage Radar | CLSA on Amber maintains buy with target price of Rs.3,650.@CLSAInsights pic.twitter.com/NzxcXSAnyU

  — ET NOW (@ETNOWlive) October 25, 2023

• HDFC Securities upgrades its rating on Kajaria Ceramics to ‘Buy’ from ‘Add’ and raises the target price to Rs 1,470 from Rs 1,310. This implies an upside of 21.6%. The brokerage expects the company’s volumes to improve from H2FY24 onwards and sees profitability rising on the back of its cost-saving initiatives.

• Dreamfolks Services rises as it's Q2FY24 net profit increases by 19.2% YoY to Rs 17.7 crore due to a fall in finance costs. Its revenue also surges by 65% YoY. The stock shows up in a screener for companies with low debt.

• Welspun India reports a net profit of Rs 196.7 crore, up over 22X YoY in Q2FY24. Meanwhile, its revenue grew 18.7% YoY to Rs 2,509.1 crore, aided by its home textiles and flooring segments. It features in a screener of companies with increasing profits every quarter for the past three quarters.

• According to reports, 97.3 lakh shares (1.03% equity) of Aditya Birla Fashion and Retail, amounting to around Rs 206.8 crore, change hands in a large trade.

  #AdityaBirlaFashion and Retail has 1.03% equity change hands in a large trade. #BQStocks
  
  Read latest #stockmarket updates: https://t.co/jMs6iA8QH6 pic.twitter.com/bxegDD2lcY

  — BQ Prime (@bqprime) October 25, 2023

• Torrent Pharma is rising as its Q2FY24 net profit increases by 23.7% YoY to Rs 386 crore and revenue rises 16.1% YoY to Rs 2,660 crore. This comes on the back of robust growth in the chronic therapies segment, revival in gastro demand and healthy demand in the consumer division. The stock shows up in a screener for companies with zero promoter pledges.

• Blue Jet Healthcare's Rs 840.3 crore IPO gets bids for 0.7X the available 1.7 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.8X the available 85 lakh shares on offer.

• Network18 Media & Investment is falling as its net loss expands by 67.1% YoY to Rs 61 crore in Q2FY24 due to higher expenses for raw material, marketing, employee benefits, and finance. However, revenue grows by 20.4% YoY, aided by better performance from Viacom18, JioCinema and TV18 News. It appears in a screener of stocks with declining cash flow from operations over the past two years.

• Power Mech Projects is falling despite its board of directors approving the issue and allotment of 9 lakh shares through a qualified institutional placement. The company plans to set an issue price of Rs 3,881.2 per share, aggregating to a total of Rs 350 crore.

• Ashok Kajaria, the CMD of Kajaria Ceramics, says the company’s volumes are expected to grow by 13-15% in H2FY24, driven by healthy demand. He also anticipates an improvement in its margins in H2. He adds that Kajaria’s bathware segment’s revenue will be around Rs 400-415 crore in FY24.

  KAJARIA CERAMICS
  
  H2 Volume growth seen 13-15%, Sep Volumes grew 10.5%
  
  Will see better margins in H2
  
  Allied Biz FY24 Target:
  Bathware: 400-415 Cr
  Plywood: 100 Cr
  Adhesives: 60 Cr
  
  FY24 Ad Spends target at 130-140 Cr vs 108 Cr in FY23@KajariaCeramichttps://t.co/GXyOEKScpU

  — Mangalam Maloo (@blitzkreigm) October 25, 2023

• Mahindra Logistics declines as its Q2FY24 net loss increases by 230.6% YoY to Rs 15.9 crore due to a rise in operating and employee benefit expenses. Despite a 3.1% YoY rise in revenue, the stock shows up in a screener for companies with declining profits every quarter for the past four quarters.

• TV18 Broadcast is falling as it posts a net loss of Rs 28.9 crore in Q2FY24, as opposed to a net profit of Rs 5.7 crore in Q2FY23. This comes despite its revenue rising 21.8% YoY. Profitability is impacted by operational costs surging by 57.7% YoY. The stock shows up in a screener for companies with weak financials and low Piotroski scores.

• HSBC downgrades its rating on Hindustan Unilever to 'Hold' and reduces the target price to Rs 2,700. The brokerage says that the company has been a 'market laggard' for five years now due to the unwinding of a big prior re-rating phase. It adds that the company's muted Q2 performance has further contributed to the weakness in its portfolio. It sees only a small upside potential for the company if markets become extremely risk-averse.

  #MarketsWithMC | #HSBC downgraded its rating on Hindustan Unilever Limited to 'Hold' and reduced the target price from Rs 2,950 to Rs 2,700 per share.
  
  Details ??https://t.co/mpFH2KpJ8U#HUL #Stocks

  — Moneycontrol (@moneycontrolcom) October 25, 2023

• Gensol Engineering surges more than 8% as it bags an order worth Rs 301.5 crore from Maharashtra State Power Generation. The order is for the engineering, installation, testing and commissioning of a 62 MW AC crystalline solar PV power plant in Aloka, Maharashtra.

• Metal & mining stocks like JSW Steel, Tata Steel, Hindalco Industries, Vedanta, Jindal Steel & Power, and NMDC are rising in trade. Barring APL Apollo Tubes, all the other constituents of the broader sectoral index, BSE Metal, are trading in the green.

• Blue Jet Healthcare raises Rs 252 crore from anchor investors ahead of its IPO by allotting around 72.9 lakh shares at Rs 346 each. Investors include ICICI Prudential Mutual Fund, Bandhan Mutual Fund, HSBC Global, Societe Generale and BNP Paribas Arbitrage.

• Baldev Prakash, CEO & MD of Jammu & Kashmir Bank, expects the bank's credit growth to be in the 15-18% range. He also anticipates the bank to keep a capital adequacy ratio of 16%. Prakash adds that J&K Bank's net NPA is 1%, a figure he expects to decrease in FY24. For Q2FY24, the bank reported a 60.1% YoY increase in net profit to Rs 383.8 crore, alongside a 20.9% YoY rise in revenue, primarily due to a strong performance in the corporate banking segment.

  J&K Bank believes growth story of the company is on track. It expects Gross NPA to come down to 4.5% by the end of FY24 pic.twitter.com/RBglsKXGg5

  — CNBC-TV18 (@CNBCTV18Live) October 25, 2023

• John Cockerill India is rising as it bags an order worth Rs 280 crore from The Tinplate Company of India to install a continuous annealing line at the client's plant in Jamshedpur.

• Trident rises as it appoints Vinod Kumar Goyal as the Chief Executive Officer for its yarn business, effective from October 23, 2023.

• Franklin Templeton Mutual Fund sells a 0.6% stake in Amber Enterprises India for approx Rs 56.4 crore in a bulk deal on Monday.

• Lupin receives US FDA approval for its abbreviated new drug application (ANDA) for fluconazole tablets. The drug is a generic equivalent to the reference listed drug (RLD), Diflucan, originally produced by Pfizer. According to IQVIA, the RLD has an estimated annual sales figure of $43 million.

• PNB Housing Finance falls even as its Q2FY24 net profit surges 46.2% YoY to Rs 384.4 crore. Revenue rises by 5.6% YoY, aided by growth in AUM, loan book, and deposits. Asset quality also improves, with gross and net NPAs declining by 428 bps and 240 bps YoY, respectively. The stock appears in a screener for undervalued growth stocks.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (38.90, 4.71%), General Insurance Corporation of India (222.20, 2.99%) and Tata Elxsi Ltd. (7,545.25, 2.85%).

Downers:

Largecap and midcap losers today include Varun Beverages Ltd. (884.20, -4.18%), Adani Total Gas Ltd. (550.45, -3.96%) and Bajaj Holdings & Investment Ltd. (6,856.00, -3.42%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Welspun India Ltd. (142.20, 11.22%), Aster DM Healthcare Ltd. (356.90, 7.97%) and Amber Enterprises India Ltd. (2,975.25, 6.49%).

Top high volume losers on BSE were Jubilant Pharmova Ltd. (330.90, -7.70%), TeamLease Services Ltd. (2,429.40, -6.12%) and HEG Ltd. (1,537.90, -5.83%).

Indigo Paints Ltd. (1,393.00, -2.68%) was trading at 9.7 times of weekly average. Torrent Pharmaceuticals Ltd. (1,922.25, 2.39%) and Swan Energy Ltd. (310.25, 2.29%) were trading with volumes 6.3 and 6.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks overperformed with 52 week highs, while 13 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Balkrishna Industries Ltd. (2,592.85, 1.01%), Prestige Estates Projects Ltd. (757.85, 1.53%) and Welspun India Ltd. (142.20, 11.22%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (293.55, -3.33%) and Atul Ltd. (6,337.60, -0.84%).

18 stocks climbed above their 200 day SMA including Elgi Equipments Ltd. (484.70, 1.61%) and FSN E-Commerce Ventures Ltd. (140.45, 1.01%). 40 stocks slipped below their 200 SMA including Jubilant Pharmova Ltd. (330.90, -7.70%) and Triveni Turbine Ltd. (329.10, -4.93%).