Trendlyne Marketwatch
Trendlyne Marketwatch
08 Nov 2023
Market closes higher, Arvind Fashions reports a loss of Rs 24.2 crore in Q2FY24

Trendlyne Analysis

Nifty 50 closed at 19,443.50 (36.8, 0.2%) , BSE Sensex closed at 64,977.72 (35.3, 0.1%) while the broader Nifty 500 closed at 17,259.70 (71.9, 0.4%), of the 1,994 stocks traded today, 1,079 showed gains, and 867 showed losses.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 19,443.5 points. The Indian volatility index, Nifty VIX fell 1.3% and closed at 11 points. Deepak Nitrite closed 2% higher after its Q2FY24 net profit grew 17.5% YoY to Rs 205.1 crore due to lower raw material expenses.

Nifty Smallcap 100 and Nifty Midcap 100 closed higher, outperforming the benchmark index. Nifty Pharma and Nifty Realty closed higher than their Tuesday close. According to Trendlyne's sector dashboard, Forest Materials was the top-performing sector of the day as it rose 2.6%.

Major Asian indices closed mixed after starting the trading session on a positive note. European indices traded flat or lower amid mixed global cues. US index futures traded marginally flat, indicating a cautious start to the trading session. Brent crude oil futures traded in the red after falling 4.4% on a volatile day on Tuesday.

  • Relative strength index (RSI) indicates that stocks like Trent, Indian Oil Corp, Multi Commodity Exchange of India and CreditAccess Grameen are in the overbought zone.

  • Infosys signs a three-year strategic collaboration agreement (SCA) with Amazon Web Services (AWS). The collaboration aims to deliver technology transformation and industry-specific solutions to the financial sector across Europe, the Middle East and Africa.

  • Granules India, Aurobindo Pharma, Abbott India, eClerx Services and Apollo Hospitals Enterprise rise 9.9%, 9.7%, 8%, 6.7% and 5.9% over the past week, respectively, ahead of their Q2FY24 results tomorrow.

  • According to reports, the Centre is considering lowering import taxes on certain electric vehicles from the UK, in order to secure a free-trade deal by the end of the year.

  • HDFC Securities maintains its ‘Buy’ rating on Federal Bank and raises its target price to Rs 190 from Rs 175, indicating an upside of 29.4%. The brokerage is optimistic about the bank’s prospects due to its ability to monetise its partnerships, robust loan growth and rapid growth in high-yielding products.

  • Godrej Industries is falling as its Q2FY24 net profit decreases by 44.1% YoY to Rs 87.3 crore. Its revenue declines by 2% YoY due to a slowdown in the chemicals and realty segments. The company shows up in a screener for stocks with high promoter stock pledges.

  • Dollar Industries rises more than 4% as its net profit grows by 43.9% YoY to Rs 24.9 crore in Q2FY24. Revenue increases by 21.2% YoY, aided by an increase in the number of distributors. It appears in a screener of stocks with high volume and high gain.

  • ASK Automotive's Rs 833.9 crore IPO gets bids for 0.9X the available 2.1 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 1.3X the available 1 crore shares on offer.

  • Protean eGov Technologies' Rs 490.3 crore IPO gets bids for 9.4X the available 43.8 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 7X the available 21.1 lakh shares on offer.

  • B Bhaskara Rao, CMD of Krishna Institute of Medical Sciences (KIMS), expects a 100-200 bps increase in occupancy for H2FY24, with average revenue per occupied bed (ARPOB) reaching Rs 32,000-33,000. He also highlights the company's plans to add 1,500-1,800 beds in the next 18-24 months, aiming to boost its revenue.

  • Deepak Nitrite rises as its Q2FY24 net profit grows by 17.5% YoY to Rs 205.1 crore due to lower raw material expenses. However, its revenue declines by 9% YoY on the back of falling advanced intermediaries and phenolics segment. The company appears in a screener of stocks with improving net cash flow.

  • Gujarat Pipavav Port rises sharply as its Q2FY24 net profit jumps by 28% YoY to Rs 92.3 crore due to lower operating expenses. Its revenue increases by 11.6% YoY. The company appears in a screener of stocks with growing net profit and margins.

  • Greaves Cotton falls as it reports a net loss of Rs 190.8 crore in Q2FY24, against a net profit of Rs 28.9 crore in Q2FY23, on account of provisions for FAME subsidy. However, its revenue improves by 4% YoY, aided by growth in the engines and cables & control levers segments. The company appears in a screener of stocks with declining net profit and margins.

  • Realty stocks like Swan Energy, Sobha, Prestige Estates Projects, Brigade Enterprises and Mahindra Lifespace Developers are rising in trade. All the constituents of the broader sectoral index, Nifty Realty, are trading in the green.

  • According to a report by S&P Global Commodity Insights, demand for India's oil products has risen by 1.6% MoM in October, led by increased mobility and consumption during the festive season. It raises its forecast for 2023 oil demand to around 2.6 lakh barrels per day.

  • Arvind Fashions rises despite reporting a loss of Rs 24.2 crore in Q2FY24, compared to a profit of Rs 9.4 crore in Q2FY23. Its revenue rises 11.7% YoY to Rs 201.8 crore. The loss is attributed to a one-time provision for impairment costs. The company features in a screener for stocks with improving book value per share for the past two years.

  • Mahindra & Mahindra rises as it enters into a share purchase agreement to sell its entire stake in its subsidiary, Mahindra Aerospace Australia (MAAPL), to George Morgan, a director on MAAPL's board. The company appears in a screener of stocks with improving RoCE.

  • Shree Cements is falling despite its net profit rising by 143.6% YoY to Rs 446.6 crore in Q2FY24. Revenue increases by 18.9% YoY, aided by higher sales and capacity utilisation. It features in a screener of stocks where foreign investors have increased their holdings in the past quarter.

  • ICICI Securities downgrades its rating on Varroc Engineering to ‘Add’ from ‘Buy’ but raises the target price to Rs 529 from Rs 406, implying an upside of 14.1%. The brokerage believes the company is currently trading at an expensive valuation but increases the target price, expecting improved profitability due to declining energy and raw material costs, and better cash flows.

  • N Venu, MD and CEO of Hitachi Energy India, reports a 36% sequential growth in orders with a healthy order pipeline across transmission and renewables segments. He highlights that there are supply chain issues but foresees an improvement. He adds that the company targets a 10% EBITDA margin for FY25.

  • Prince Pipes and Fittings rises sharply as it posts a net profit of Rs 70.6 crore in Q2FY24, against a net loss of Rs 24.1 crore in Q2FY23, due to lower raw material expenses. Its revenue grows by 3.3% YoY. The company appears in a screener of stocks with strong momentum.

  • Power Grid Corp of India falls despite its net profit rising by 3.6% YoY to Rs 3,781.4 crore in Q2FY24. Revenue grows by 1% YoY on the back of increased revenue from the transmission, consultation and telecom segments. Its EBITDA margin expands by 340 bps YoY, aided by lower employee benefits and other expenses. The company appears in a screener of stocks with zero promoter pledge.

  • Indian Railways Catering & Tourism Corp falls despite its Q2FY24 net profit rising 30.3% YoY to Rs 294.7 crore. Its revenue grows by 23.2% YoY, aided by the catering, internet ticketing and tourism segment. The company appears in a screener of stocks with improving cash flow from operations.

  • Macquarie maintains its 'Underperform' rating on Zydus Lifesciences with a target price of Rs 490. The brokerage says the company's Q2 earnings were a mixed bag, with revenue and EBITDA missing its estimates by 8% each. Meanwhile, PAT beats estimates by 15%, driven by an increase in other income.

  • Genus Power Infrastructures' arm wins an order worth Rs 2,259.9 crore for the appointment of Advanced Metering Infrastructure Service Providers. This includes designing an advance metering infrastructure system with supply, installation and commissioning of 27.33 lakh smart prepaid meters. Numerous State Electricity Boards have commenced the bidding process to procure the smart meters.

  • Prestige Estates Projects is rising as its Q2FY24 net profit surges 6X YoY to Rs 850.9 crore and revenue increases by 56.6% YoY to Rs 2,236.4 crore, driven by robust demand for housing. The stock shows up in a screener for companies with improving book value over the past two years.

  • Apollo Tyres’ Q2FY24 net profit jumps 2.6X YoY to Rs 474.3 crore, thanks to a sharp decline in raw material costs. Its revenue rises 5.4% YoY, with growth across Asia, Africa and Europe. The stock shows up in a screener for companies with sequentially rising net profits over the past four quarters.

Riding High:

Largecap and midcap gainers today include Hindustan Petroleum Corporation Ltd. (299.50, 7.48%), YES Bank Ltd. (17.95, 6.85%) and Alkem Laboratories Ltd. (4,232.70, 5.10%).

Downers:

Largecap and midcap losers today include Bharat Forge Ltd. (1,034.00, -1.97%), Gland Pharma Ltd. (1,625.20, -1.69%) and Shree Cements Ltd. (26,270.50, -1.56%).

Volume Shockers

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

Top high volume gainers on BSE included Prince Pipes & Fittings Ltd. (720.60, 15.26%), NLC India Ltd. (151.80, 7.51%) and Hindustan Petroleum Corporation Ltd. (299.50, 7.48%).

Top high volume losers on BSE were Mishra Dhatu Nigam Ltd. (388.95, -5.13%), Rain Industries Ltd. (148.30, -4.14%) and Restaurant Brands Asia Ltd. (114.10, -3.43%).

Shoppers Stop Ltd. (657.70, 3.04%) was trading at 12.6 times of weekly average. Gujarat Pipavav Port Ltd. (133.30, 6.51%) and Apollo Tyres Ltd. (410.30, 6.82%) were trading with volumes 9.9 and 9.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

40 stocks made 52 week highs,

Stocks touching their year highs included - Aurobindo Pharma Ltd. (936.55, 3.77%), Colgate-Palmolive (India) Ltd. (2,137.65, 0.98%) and DLF Ltd. (595.90, 0.58%).

10 stocks climbed above their 200 day SMA including Prince Pipes & Fittings Ltd. (720.60, 15.26%) and Asian Paints Ltd. (3,095.25, 2.04%). 5 stocks slipped below their 200 SMA including Infosys Ltd. (1,391.00, -0.95%) and Anupam Rasayan India Ltd. (916.55, -0.66%).

 
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