Trendlyne Analysis

Nifty 50 closed at 19,230.60 (97.4, 0.5%), BSE Sensex closed at 64,363.78 (282.9, 0.4%) while the broader Nifty 500 closed at 17,000.95 (110.2, 0.7%). Market breadth is in the green. Of the 1,995 stocks traded today, 1,265 were on the uptrend, and 674 went down.

Indian indices maintained the gains from the morning session and closed in the green, with the Nifty 50 closing at 19,231. The volatility index, Nifty VIX, dropped by 1.8% and closed at 10.9 points. Zomato’s Q2FY24 net profit stood at Rs 36 crore, compared to a net loss of Rs 251 crore in Q2FY23. Its revenue grew by 71.5% YoY, aided by robust growth in the food ordering & delivery and quick commerce segments.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Realty and Nifty Media closed sharply higher than Thursday’s closing level. According to Trendlyne’s sector dashboard, forest materials emerged as the top-performing sector of the day, with a rise of over 2.2%.

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. According to data released by S&P, the UK’s composite PMI for October increased to 48.7 against estimates of 48.6. UK’s composite PMI for October stood at 48.6.

• Relative strength index (RSI) indicates that stocks like Angel One, Swan Energy, Multi Commodity Exchange of India and CreditAccess Grameen are in the overbought zone.

• Zomato rises sharply as its Q2FY24 net profit stands at Rs 36 crore, compared to a net loss of Rs 251 crore in Q2FY23. Its revenue grows by 71.5% YoY, aided by robust growth in the India food ordering & delivery, hyperpure supplies and quick commerce segments. The company appears in a screener of stocks with increasing revenue over the past four quarters.

• Lupin rises as it enters into a licensing and supply agreement with Zydus Lifesciences to co-market Saroglitazar, a drug used to treat chronic liver diseases in India. It appears in a screener for stocks with strong momentum.

• Titan is rising as its net profit grows by 10.1% YoY to Rs 915 crore in Q2FY24. Revenue improves by 25% YoY on the back of growth in the watches & wearables, jewellery and eyecare segments. However, its EBITDA margin contracts by 234 bps YoY due to increased raw material, finance, employee benefits and advertising expenses. The company appears in a screener of stocks bought by superstar investors.

• Bayer Cropscience rises as its Q2FY24 net profit grows by 36.1% YoY to Rs 222.9 crore, aided by lower inventory, employee benefit and finance expenses. Its revenue increases by 11.4% YoY due to growth in the corn seeds and crop protection segments. The company appears in a screener of stocks with high TTM EPS growth.

• Motilal Oswal says that Q2FY24 earnings of Nifty 50 companies have mostly been in line with its estimates, driven by cyclical sectors like BFSI and auto. The brokerage highlights that companies like ICICI Bank, HDFC Bank, Bajaj Auto and Hero MotoCorp beat its expectations in terms of profit, while UPL, Wipro and SBI Life missed estimates.

  #Q2Earnings | The Q2FY24 earnings of #Nifty50 companies have been in line with expectations, with domestic cyclicals fueling growth, according to Motilal Oswal Financial Services.
  
  (@Nishantopines reports)https://t.co/UtqJgLGlvI

  — Mint (@livemint) November 3, 2023

• MRF is falling despite its net profit jumping by 4.5X YoY to Rs 586.7 crore and EBITDA margin sharply expanding by 10.4 percentage points YoY to 18.6%. Its profitability surges on the back of declining raw material costs. On the other hand, its revenue increases by 6.7% YoY. The stock shows up in a screener for companies with declining net cash flows.

• Arvind Fashion rises sharply as it enters into a share purchase agreement with Reliance Beauty & Personal Care to sell its entire stake in its subsidiary, Arvind Beauty Brands, for Rs 99 crore. The company appears in a screener of stocks with strong momentum.

• Adani Ports & Special Economic Zone reports a record-breaking 48% YoY increase in cargo volumes for October, reaching 37 million metric tonnes. In the first seven months of FY24, the company has managed a total of 240 million metric tonnes of cargo, reflecting an 18% YoY growth.

• Whirpool of India is falling as its Q2FY24 net profit decreases by 23.6% YoY to Rs 36.6 crore due to increasing employee benefit expenses and finance costs. Its revenue also drops by 5.6% YoY to Rs 1,521.6 crore. It features in a screener of companies with a YoY decline in quarterly net profit and profit margin.

• Raymond is rising as it acquires a 59.2% stake in Maini Precision Products for Rs 682 crore. This acquisition will help the company enter the aerospace, defence and electric vehicles segments.

• Sanjay Purohit, the CEO and MD of Sapphire Foods, says the quick service restaurant (QSR) space is experiencing demand headwinds, and the pizza category's downturn is temporary. He adds that the company's internal target is 5-7% of same-store-sales growth (SSSG) and the company would double its retail footprint in four years.

  #2QWithCNBCTV18 | There are demand headwinds in the QSR market, pizza category slowdown is a temporary phase
  
  Internal target is 5-7% Same-Store-Sales growth, will double store footprint in 4 years instead of 3 years now
  
  Sanjay Purohit, Sapphire Foods to CNBC-TV18 pic.twitter.com/DY3sMsPEOz

  — CNBC-TV18 (@CNBCTV18Live) November 3, 2023

• HDFC Securities upgrades its rating on Ambuja Cements to ‘Buy’ from ‘Add’ and maintains its target price at Rs 480, implying an upside of 14.5%. The brokerage is optimistic about the company’s growth outlook and sees the firm’s plans to double production capacity as a key positive. It expects the firm’s net profit to grow at a CAGR of 17.1% over FY23-25.

• ESAF Small Finance Bank's Rs 463 crore IPO gets bids for 0.8X the available 5.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 1.2X the available 2.8 crore shares on offer.

• HDFC Mutual Fund acquires a 0.4% stake in Karur Vysya Bank through open markets on Wednesday.

• Suzlon Energy rises to an all-time high of Rs 34.2 as its Q2FY24 net profit grows by 78.1% YoY to Rs 102.3 crore, aided by falling inventory and finance expenses. However, its revenue declines by 1% YoY due to lower sales in the wind turbine generator segment. The company appears in a screener of stocks with improving book value per share.

• Kirloskar Oil Engines plunges more than 5% as its net profit declines by 6.9% YoY to Rs 78 crore in Q2FY24. However, its revenue grows by 6.2% YoY, aided by gains in B2B and B2C segments. Its EBITDA margin contracts by 110 bps YoY due to rising costs for raw materials, finance and employee benefits. The company appears in a screener of stocks where mutual funds have decreased their shareholdings over the past quarter.

• Abhijit Roy, the CEO and MD of Berger paints, reports a 10.9% increase in company volume for Q2, with expectations for continued growth. The company's market share has risen to 20.1% in H1FY24 from 19.3% in FY23. Roy adds that Berger Paints is well-prepared for new industry competition from Grasim. He also highlights ongoing efforts in network expansion and the roll-out of key digital initiatives.

  Berger Paints says
  ?????Volume growth was 10.9%, will hover around same levels
  ?????????Market share at 20.1% in H1FY24 vs 19.3% in FY23
  On Grasim entry???? Well prepared for competition entry#StockMarket #Niftyhttps://t.co/BxjJOMcX5G

  — Nigel D'Souza (@Nigel__DSouza) November 3, 2023

• Kalpataru Projects International falls despite its Q2FY24 net profit rising 3.5% YoY to Rs 89 crore. Its revenue grows 19% YoY, aided by growth in the engineering, procurement and construction segment. The company appears in a screener of stocks with high momentum scores.

• Dabur India is rising as its Q2FY24 net profit rises 5.1% YoY to Rs 515 crore and gross margin expands by 295 bps YoY. Its revenue grows by 7.3% YoY, driven by the consumer care segment. The stock shows up in a screener for companies with zero promoter pledges.

• Auto stocks like Tata Motors, Tube Investments of India, Hero MotoCorp and Eicher Motors are rising in trade. All constituents of the broader Nifty Auto index are also trading in the green.

• India’s Services PMI drops to 58.4 in October from 61 in September due to a moderation in demand and competitive pressures.

  The S&P Global India Services Purchasing Managers' Index (#PMI) fell to 58.4 last month from September's 61.0, which was lower than what the Reuters poll had expected -- 60.5.@basuhita1506 https://t.co/VG2gnhHIxY

  — Business Today (@business_today) November 3, 2023

• Mahindra & Mahindra Financial Services rises as its October disbursements hit around Rs 5,250 crore, mirroring the previous year's figure. The year-to-date disbursements total up to about Rs 30,700 crore, marking a 16% YoY increase. The company also shows a 3% YoY improvement in collection efficiency.

• Sheela Foam appoints Tushaar Gautam as its Managing Director (MD), effective immediately. It also names Rahul Gautam, former MD, as the Whole-Time Director and Chairman.

• Ratnamani Metals & Tubes is rising as its Q2FY24 net profit surges 65.9% YoY to Rs 163.9 crore and EBITDA margins expand by 80 bps YoY. Its revenue rises by 25.7% YoY, led by healthy growth in the steel tubes & pipes segment. The stock shows up in a screener for companies with low debt.

• Citi downgrades its rating on Tata Steel to 'Sell' and lowers the target price to Rs 100. The downgrade reflects concerns over domestic steel prices and potential risks if Chinese steel prices do not pick up . According to the brokerage, there is also concern about the company's restructuring plans and future profitability.

  Brokerage Radar | #Citi downgrades #TataSteel to sell from buy, cuts target price to Rs.100 from Rs.140.@Citi @TataSteelLtd pic.twitter.com/OCGAr0HqMc

  — ET NOW (@ETNOWlive) November 3, 2023

• Kotak Mahindra Life Insurance buys a 0.6% stake in Minda Corp for approx Rs 45.6 crore in a bulk deal on Thursday.

• ESAF Small Finance Bank raises Rs 135.2 crore from anchor investors ahead of its IPO by allotting around 2.3 crore shares at Rs 60 each. Investors include Founders Collective Fund, Alchemie Ventures Fund, Copthall Maritius Investment, BNP Artitrage, Kotak Mahindra Life Insurance Co and Edelweiss Tokio Life Insurance Co.

• JK Lakshmi Cements surges more than 5% as its net profit grows by 51.8% YoY to Rs 92.7 crore in Q2FY24. Revenue increases by 14.6% YoY, aided by higher sales. The company also plans to set up an additional cement grinding unit with a capacity of 13.5 lakh tonnes per annum. The expansion has a capex of Rs 225 crore and is expected to be completed in the next two years.

• Indian Energy Exchange rises as its Q2FY24 net profit grows by 21.4% YoY to Rs 86.5 crore. Its revenue also increases by 16.9% YoY, aided by higher trading volumes in the conventional power and green power segments. The company appears in a screener of stocks with growing net profit and margins.

• Tata Motors is rising as it posts a net profit of Rs 3,764 crore in Q2FY24, compared to a loss of Rs 944.6 crore in Q2FY23. Its revenue increases by 32% YoY on the back of improved sales from commercial vehicles and Jaguar Land Rover. It appears in a screener of stocks showing a shift from negative to positive in sales and profit, along with strong price momentum.

Riding High:

Largecap and midcap gainers today include Zomato Ltd. (116.50, 8.32%), Bayer Cropscience Ltd. (5,226.05, 6.54%) and Apollo Hospitals Enterprise Ltd. (5,153.20, 5.45%).

Downers:

Largecap and midcap losers today include Cholamandalam Investment & Finance Company Ltd. (1,134.30, -3.66%), Supreme Industries Ltd. (4,379.45, -2.98%) and MRF Ltd. (1,07,723.25, -2.51%).

Movers and Shakers

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

Top high volume gainers on BSE included JK Lakshmi Cement Ltd. (744.85, 10.48%), Zomato Ltd. (116.50, 8.32%) and JM Financial Ltd. (88.70, 7.13%).

Top high volume losers on BSE were Godfrey Phillips India Ltd. (2,149.00, -8.50%), Cholamandalam Investment & Finance Company Ltd. (1,134.30, -3.66%) and 360 One Wam Ltd. (532.95, -3.37%).

Bayer Cropscience Ltd. (5,226.05, 6.54%) was trading at 41.5 times of weekly average. Orient Electric Ltd. (221.20, 1.96%) and Ratnamani Metals & Tubes Ltd. (2,900.15, 2.64%) were trading with volumes 15.5 and 10.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

26 stocks made 52 week highs, while 2 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (971.70, 4.81%), Canara Bank (387.50, -0.17%) and DLF Ltd. (595.85, 3.11%).

Stocks making new 52 weeks lows included - Aegis Logistics Ltd. (283.25, -2.16%) and Sumitomo Chemical India Ltd. (372.20, -0.27%).

22 stocks climbed above their 200 day SMA including JK Lakshmi Cement Ltd. (744.85, 10.48%) and Computer Age Management Services Ltd. (2,390.65, 5.62%). 2 stocks slipped below their 200 SMA including Sapphire Foods India Ltd. (1,306.05, -0.96%) and Poonawalla Fincorp Ltd. (347.70, -0.56%).