Trendlyne Marketwatch
Trendlyne Marketwatch
27 Oct 2023
Market closes higher, Cipla's Q2FY24 net profit jumps 44.9% YoY

Trendlyne Analysis

Nifty 50 closed at 19,047.25 (190, 1.0%), BSE Sensex closed at 63,782.80 (634.7, 1.0%) while the broader Nifty 500 closed at 16,765.45 (210, 1.3%). Market breadth is surging up. Of the 1,947 stocks traded today, 1,616 were on the uptrend, and 293 went down.

Indian indices extended the gains from the afternoon session and closed in the green, with the Nifty 50 closing at 19,047. The volatility index, Nifty VIX, dropped by 7% and closed at 10.9 points. Cipla’s Q2FY24 net profit jumps 44.9% YoY to Rs 1,155 crore due to a fall in inventory expenses, while its revenue increased by 14.6% YoY.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. All major sectoral indices closed lower than Monday’s closing levels. According to Trendlyne’s sector dashboard, hardware technology & equipment emerged as the top-performing sector of the day, with a rise of over 3.7%.

Most European indices trade in the green except for France’s CAC 40 trading lower. US indices futures trade higher, indicating a positive start. Intel shares rose 8% pre-market on the back of strong profit guidance for Q4 from management. The guidance included a 33% increase in net profit from previous estimates due to demand uptick in personal computers. Crude prices rose by 1% as the US launched airstrikes on Syria.

  • Relative strength index (RSI) indicates that stocks like BSE, Angel One, Prestige Estates Projects and CreditAccess Grameen are in the overbought zone.

  • Indian Hotels Co is falling despite its Q2FY24 net profit rising 37.3% YoY to Rs 166.9 crore, while its EBITDA margin expands by 180 bps YoY to 27.2%. Its revenue increases by 16.3% YoY driven by higher room rates and healthy occupancy rates.

  • Axis Direct keeps its ‘Buy’ rating on Welspun India and raises the target price to Rs 160 from Rs 125, implying an upside of 11.8%. The brokerage is positive about the firm’s prospects on the back of improving demand, moderating commodity costs and inventory pressures subsiding. It expects the company’s revenue to grow at a CAGR of 17.4% over FY23-25.

  • Cipla rises as its Q2FY24 net profit jumps 44.9% YoY to Rs 1,155.4 crore due to a fall in inventory expenses, while its revenue increased by 14.6% YoY. The stock shows up in a screener for companies that are effectively using their capital to generate profit.

  • The Reserve Bank of India (RBI) raises the threshold limit for non-callable deposits from Rs 15 lakh to Rs 1 crore. This means that any domestic term deposits accepted from individuals for Rs 1 crore or less will be eligible for early withdrawal.

  • Happiest Minds Technologies sees four analyst target price downgrades and two recommendation downgrades in the past three months. Bata India, Tanla Platforms, Tech Mahindra and ICICI Bank see two analyst target price downgrades over the same time period.

  • Maruti Suzuki India is rising as its Q2FY24 net profit surges by 78.2% YoY to Rs 3,764.3 crore driven by lower commodity costs and cost reduction initiatives. Revenue grows by 23.8% YoY led by higher sales volumes and a healthy product mix. The company shows up in a screener for stocks in the PE Buy zone a high durability score and rising momentum score.

  • Blue Jet Healthcare's Rs 840.3 crore IPO gets bids for 7.9X the available 1.7 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2.2X the available 85 lakh shares on offer.

  • CLSA maintains its 'Outperform' rating on Shriram Finance with a target price of Rs 2,050. The brokerage highlights that the company's loan growth momentum has been healthy during the quarter. It anticipates the firm to deliver healthy AUM growth in H2FY24.

  • ZF Commercial Vehicle Control Systems is rising as its net profit grows by 54% YoY to Rs 105.7 crore in Q2FY24. Revenue expands by 25.1% YoY to Rs 991.7 crore. It appears in a screener of stocks with improving return on capital employed (RoCE) over the past two years.

  • Power stocks like Adani Power, Adani Green Energy, CG Power and Industrial Solutions, Adani Energy Solutions and NHPC are rising in trade. All the constituents of the broader sectoral index, BSE Power, are trading in the green.

  • Karnataka Bank is rising after its board approves the allotment of 3.3 crore shares, on a preferential basis, amounting to Rs 800 crore. The company will allot the shares to HDFC Life Insurance Co, Bajaj Allianz General Insurance, and Quant Mutual Fund, among others.

  • Reports suggest that, 10 lakh shares (0.01% equity), of HDFC Bank, amounting to Rs 147.1 crore, change hands in a large trade.

  • Foreign institutional investors have withdrawn Rs 1,813.7 crore from the equity market in the past week, according to Trendlyne's FII dashboard. Meanwhile, there has been a significant outflow of Rs 24,117.8 crore from index options by foreign investors.

  • ACC reports a net profit of Rs 387.8 crore in Q2FY24 compared to a loss of Rs 87.3 crore in Q2FY23. Revenue grows by 11.2% YoY on the back of improvement in clinker and cement sales. It features in a screener of stocks with declining net cash flow.

  • Axis Bank appoints Munish Sharda as Whole-time Director, designated as Executive Director of the Bank, effective from November 1, 2023.

  • JPMorgan upgrades its rating on India equities to "Overweight" from "Neutral." According to the broker, India has the best emerging market (EM) nominal GDP compounding, driven by demographic trends and infrastructure investment needs. Additionally, India offers competitive risk-adjusted returns compared to developed market (DM) equities. Sun Pharmaceuticals Industries, Bank of Baroda, and Hindustan Unilever have been added to its EM model portfolio.

  • Colgate-Palmolive (India) is falling despite its Q2FY24 net profit rising by 22.3% YoY to Rs 340.1 crore led by cost efficiencies and lower raw material costs. Its revenue grows 6% YoY to Rs 1,471.1 crore driven by price hikes. However, the firm’s sales volume remains flat in Q2. The stock shows up in a screener for companies with zero promoter pledges.

  • Suzlon Energy rises more than 3% as it bags an order from Juniper Green Energy to set up a wind power project with a capacity of 50.4 MW. The order is to install 16 wind turbines with generators with a capacity of 3.1 MW and is expected to be completed in 2025.

  • Westlife Foodworld is falling as its Q2FY24 net profit falls 31.6% YoY to Rs 21.9 crore despite revenue rising 7.4% YoY. Profit falls due to increase in occupancy and operating expenses. The company features on a screener for stocks with low debt.

  • Sanjay Sethi, CEO & MD of Chalet Hotels, notes that in Q2, the company witnessed a significant increase in margins and revenue, with revenue per available room (RevPAR) rising by 24% YoY. He anticipates that their Q3 results will outperform those of the previous quarter, and he expects annual recurring revenue (ARR) in larger cities to increase by double digits.

  • Media stocks like Zee Entertainment Enterprises, Saregama India, Dish TV India, TV18 Broadcast and PVR INOX are rising in trade. The broader sectoral index, Nifty Media, is also trading in the green.

  • PSU bank stocks like Bank of India, Canara Bank, Union Bank of India and Punjab National Bank rise more than 3% in trade. All constituents of the broader Nifty PSU Bank index are also trading in the green.

  • Vodafone Idea rises despite its net loss expanding by 15% YoY to Rs 8,737.9 crore in Q2FY24. Revenue increases by 1% YoY aided by an improvement in average revenue per unit (ARPU) and growth in 4G subscriber base. It shows up in a screener of stocks with high interest payments compared to earnings.

  • Dixon Technologies is rising as its net profit surges by 38.9% YoY to Rs 107.3 crore in Q2FY24. Revenue jumps by 27.8% YoY while its EBITDA margin expands by 27 bps YoY to 4%. It features in a screener of stocks with improving cash flow from operations in the last two years.

Riding High:

Largecap and midcap gainers today include Adani Power Ltd. (354.15, 8.19%), Shriram Finance Ltd. (1,935.20, 7.65%) and Bank of India (96.80, 7.26%).

Downers:

Largecap and midcap losers today include Indraprastha Gas Ltd. (382.20, -1.20%), ACC Ltd. (1,878.00, -1.15%) and Crompton Greaves Consumer Electricals Ltd. (284.80, -0.99%).

Volume Rockets

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

Top high volume gainers on BSE included Jubilant Pharmova Ltd. (397.25, 16.94%), Swan Energy Ltd. (369.20, 12.20%) and Shriram Finance Ltd. (1,935.20, 7.65%).

Top high volume losers on BSE were Sterlite Technologies Ltd. (135.90, -9.25%), Westlife Foodworld Ltd. (820.25, -7.09%) and Carborundum Universal Ltd. (1,085.95, -1.99%).

Blue Dart Express Ltd. (6,376.40, -1.14%) was trading at 5.8 times of weekly average. Torrent Power Ltd. (719.00, -0.79%) and Jubilant Ingrevia Ltd. (434.40, 1.34%) were trading with volumes 4.7 and 4.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks made 52 week highs, while 5 stocks hit their 52 week lows.

Stocks touching their year highs included - Canara Bank (380.80, 5.97%), Maruti Suzuki India Ltd. (10,560.70, 1.31%) and Persistent Systems Ltd. (6,083.75, 3.70%).

Stocks making new 52 weeks lows included - Atul Ltd. (6,249.10, 0.15%) and Indraprastha Gas Ltd. (382.20, -1.20%).

33 stocks climbed above their 200 day SMA including Jubilant Pharmova Ltd. (397.25, 16.94%) and Kajaria Ceramics Ltd. (1,290.00, 5.70%). 9 stocks slipped below their 200 SMA including Sapphire Foods India Ltd. (1,291.40, -4.26%) and Carborundum Universal Ltd. (1,085.95, -1.99%).

 
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