Trendlyne Analysis

Nifty 50 closed at 19,395.30 (-48.2, -0.3%), BSE Sensex closed at 64,832.20 (-143.4, -0.2%) while the broader Nifty 500 closed at 17,218.90 (-40.8, -0.2%). Market breadth is in the red. Of the 1,984 stocks traded today, 786 were on the uptick, and 1,152 were down.

Indian indices pare the gains from the afternoon session and close in the red, with the Nifty 50 closing at 19,395. The volatility index, Nifty VIX, dropped by 0.5% and closed at 11 points. Global rating agency Moody’s retained India’s GDP growth rate at 6.7% for 2024. However, the report pointed out weak exports to be sustained by demand in the domestic market.

Nifty Midcap 100 closed in the green, while Nifty Smallcap 100 closed lower following the benchmark index. Nifty Auto and Nifty Realty closed higher than Wednesday’s closing level. According to Trendlyne’s sector dashboard, coal emerged as the top-performing sector of the day, with a rise of over 1.9%. 

Most European indices trade in the green except for the benchmark Euronext 100 index trading lower. US indices futures trade flat as investors look for a cautious start. The data released by Eurostat indicated that the Eurozone’s September retail sales contracted by 2.9% YoY against estimates of a 3.1% decline.

• Money flow index (MFI) indicates that stocks like Alkem Laboratories, BSE, Multi Commodity Exchange of India and Ratnamani Metals & Tubes are in the overbought zone.

• Samvardhana Motherson International is falling as its net profit declines by 18.2% YoY to Rs 201.5 crore in Q2FY24. However, revenue grows by 28.5%, aided by sales growth across wiring harness, modules & polymer products, vision systems and integrated assemblies. It appears in a screener of stocks with reduced mutual fund holdings over the past quarter.

• Mutual Funds' net equity inflow rises MoM to Rs 19,932 crore in October, according to data released by the Association of Mutual Funds in India (AMFI). The total AUM (assets under management) reaches Rs 46.7 lakh crore

  October Mutual Fund Data | Hybrid Fund Inflow At ?9,907 Cr Vs ?18,650 Cr Inflows (MoM)
  Here's more ????#MutualFundData #OctMutualFund #AMFIData #AMFI pic.twitter.com/8XXnUKyWV0

  — CNBC-TV18 (@CNBCTV18Live) November 9, 2023

• Adani Ports & Special Economic Zone is falling despite its net profit rising by 4.2% YoY to Rs 1,747.8 crore. This modest growth is due to the write-off of a past MAT credit on the election of a new tax regime. However, its revenue is up 27.6% YoY, led by its port and SEZ activities.

• Finolex Cables rises as its Q2FY24 net profit grows by 178.4% YoY to Rs 154.2 crore due to lower inventory expenses. Its revenue increases by 8.8% YoY, aided by rising sales of electrical cables and copper rods. The company appears in a screener of stocks with improving net cash flow.

• BoB Capital Markets upgrades its rating on Alkem Laboratories to ‘Hold’ from ‘Sell’ and raises the target price to Rs 3,850 from Rs 3,300. This implies a downside of 9.8%. The brokerage cites the recovery in the firm’s international business and expanding margins for the revision.

• Eris Lifesciences reaches a 52-week high following the signing of a definitive agreement to purchase Biocon Biologics’ India-based branded formulations business in nephrology and dermatology for Rs 366 crore. This acquisition marks Eris' entry into nephrology and will also enable it to strengthen its position in dermatology.

  #MarketsWithBS | Eris up 8% as it plans to acquire nephro, derma units of Biocon Biologics#Sensex #nifty #stockstowatchhttps://t.co/cGEITi7I0V

  — Business Standard (@bsindia) November 9, 2023

• ASK Automotive 's Rs 833.9 crore IPO gets bids for 51.1X the available 2.1 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 5.7X the available 1 crore shares on offer.

• Nazara Technologies  is rising as its net profit grows by 1.6% QoQ to Rs 19.8 crore in Q2FY24. Revenue increases by 16.8% QoQ, driven by the e-sports segment. It shows up in a screener of stocks with expanding return on capital employed (RoCE) over the past two years.

• Power Finance Corp rises to an all-time high of Rs 280.5 as its Q2FY24 net profit grows by 28.3% YoY to Rs 3,847.4 crore due to lower impairment expenses on financial instruments. Its revenue increases by 17% YoY, aided by higher interest and dividend income. The company appears in a screener of stocks with increasing net profit and margins.

• Gunjan Shah, MD and CEO of Bata India, highlights that the past few quarters have been challenging for the company due to muted discretionary demand. He adds that the company aims for double-digit profit growth. Shah outlines plans to open 40-50 new stores each quarter, with 80% being franchise-based expansions.

  BATA
  
  Aspire to grow double digits, profitably
  
  5000 Cr revenue by FY25 not out of reach
  
  Will continue to add 40-50 stores/Qtr
  
  80% of new store additions will be franchise route
  
  Looking for more tie-ups with 3rd party brands#FMCGisLife @BATA_India https://t.co/njhBdUN1UH

  — Mangalam Maloo (@blitzkreigm) November 9, 2023

• Brigade Enterprises rises to an all-time high of Rs 750.2 as its Q2FY24 net profit jumps 72.1% YoY to Rs 133.5 crore due to lower sub-contractor and license & plan approval expenses. Its revenue increases by 54.3% YoY, aided by growth in the real estate, hospitality and leasing segments. The company appears in a screener of stocks with strong annual EPS growth.

• MTAR Technologies plunges more than 9% as its net profit declines by 17.1% YoY to Rs 20.4 crore in Q2FY24. However, its revenue grows by 32.2% YoY, aided by new clean energy contracts. Parvat Srinivas Reddy, the MD of the company, says, “We have revised our annual revenue guidance for FY24 to Rs 670-700 crore from the earlier forecast of Rs 830-860 crore."

• Lupin is rising as its Q2FY24 net profit jumps 277.3% YoY to Rs 489.5 crore and revenue grows 21.5% YoY led by robust sales growth in the US. Its EBITDA margin expands by 800 bps YoY to 19.4%. The stock shows up in a screener for companies with improving cash flows and high durability scores.

• Somany Ceramics rises with a 99.5% YoY surge in Q2FY24 net profit to Rs 29.3 crore due to lower raw material and power & fuel expenses. Its revenue increases by 6% YoY, aided by improved tiles and bathware sales. The company appears in a screener of stocks with improving book value per share.

• According to a poll of economists, India's CPI inflation is expected to moderate to 4.8% in October from 5% in September, driven by a reduction in food inflation. However, there is caution regarding a potential increase in vegetable prices.

  India’s #retailinflation likely cooled to 4.8% in Oct from 5% in Sept as food inflation continued to ease, according to a Mint poll of 17 economists.
  
  (@ManjulPaul reports)https://t.co/OIguh4TdH6

  — Mint (@livemint) November 9, 2023

• Gujarat Narmada Valley Fertilizers & Chemicals falls as its Q2FY24 net profit drops by 23.5% YoY to Rs 182 crore. Its revenue decreases by 16.5% YoY due to weaker fertilizer and chemical sales. The company also announces a buyback of 5.5% equity (84.8 lakh shares) at Rs 770 per share, amounting to Rs 652.8 crore, with a record date of November 24.

• IRB Infrastructure is rising as its monthly toll collection rises 30% YoY to Rs 447.7 crore in October. The stock shows up in a screener for companies with improving RoCE over the past two years.

• Welspun Corp surges to its all-time high of Rs 495.9 per share as it posts a net profit of Rs 384.7 crore in Q2FY24 compared to a net loss of Rs 56.6 crore in Q2FY23. Revenue rises by 106.7% YoY, aided by improved pipe and building material sales. It features in a screener for high-return, technically strong stocks.

• Bharat Heavy Electricals falls as it reports a net loss of Rs 238.1 crore in Q2FY24, against a net profit of Rs 12.1 crore in Q2FY23, due to higher raw material expenses. Its revenue decreases by 2.1% YoY on the back of a downturn in the segment. The company appears in a screener of stocks with significant drops in TTM net profit.

• RBI Governor Shaktikanta Das says the global economy is facing various macro and geopolitical shocks. He adds that global growth is muted due to higher inflation. Das highlights that although inflation is declining in India, it is exposed to food price shocks. He also states that India's growth is on track.

  Global economy facing multiple macro, geopolitical shocks, #RBI Governor #ShaktikantaDas said.@RBI @DasShaktikanta pic.twitter.com/i9j2S8xnFf

  — ET NOW (@ETNOWlive) November 9, 2023

• Tata Power falls despite its Q2FY24 net profit rising 6.9% YoY to Rs 875.5 crore due to lower fuel expenses. Its revenue grows by 13% YoY, aided by growth in the generation, renewables and transmission & distribution segment. The company appears in a screener of stocks with rising net profit and margins.

• Biocon is trading flat as its subsidiary, Biocon Biologics, enters into an agreement with Eris Lifesciences to sell its dermatology and nephrology branded formulations business units for Rs 366 crore.

• Ashish Kacholia sells a 0.5% stake in SJS Enterprises for approx Rs 10.5 crore in a bulk deal on Wednesday.

• Mazagon Dock Shipbuilders is rising as its Q2FY24 net profit surges by 55.6% YoY to Rs 332.9 crore. Revenue grows by 7.4% YoY, aided by increased order book. Its EBITDA margin expands by 279 bps YoY, owing to lower costs for raw materials and finance. The company appears in a screener of stocks with improving cash flow and good durability.

Riding High:

Largecap and midcap gainers today include Power Finance Corporation Ltd. (277.30, 5.22%), UNO Minda Ltd. (631.35, 4.88%) and Mahindra & Mahindra Ltd. (1,552.05, 4.35%).

Downers:

Largecap and midcap losers today include Endurance Technologies Ltd. (1,623.90, -5.84%), Supreme Industries Ltd. (4,225.50, -3.67%) and Tube Investments of India Ltd. (3,152.05, -3.08%).

Movers and Shakers

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

Top high volume gainers on BSE included Sun Pharma Advanced Research Company Ltd. (256.80, 8.08%), Aegis Logistics Ltd. (315.85, 7.41%) and BASF India Ltd. (2,846.00, 6.86%).

Top high volume losers on BSE were KRBL Ltd. (353.90, -8.96%), Mishra Dhatu Nigam Ltd. (359.85, -7.48%) and SKF India Ltd. (4,650.60, -6.68%).

Eris Lifesciences Ltd. (912.25, 1.61%) was trading at 17.2 times of weekly average. FDC Ltd. (386.05, 5.51%) and Esab India Ltd. (6,399.95, -0.91%) were trading with volumes 13.3 and 10.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

40 stocks hit their 52 week highs, while 2 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Aurobindo Pharma Ltd. (950.75, 1.52%), BASF India Ltd. (2,846.00, 6.86%) and Coal India Ltd. (323.55, 1.94%).

Stocks making new 52 weeks lows included - Adani Wilmar Ltd. (300.55, -1.83%) and Campus Activewear Ltd. (264.00, -0.99%).

5 stocks climbed above their 200 day SMA including Au Small Finance Bank Ltd. (690.55, 2.25%) and Bata India Ltd. (1,572.15, 0.98%). 11 stocks slipped below their 200 SMA including KRBL Ltd. (353.90, -8.96%) and SKF India Ltd. (4,650.60, -6.68%).