Trendlyne Marketwatch
Trendlyne Marketwatch
19 Jul 2024
Market closes lower, Infosys' net profit falls by 20.1% QoQ to Rs 6,368 crore while revenue declines by 1.2% QoQ
By Trendlyne Analysis

 

Market sinks in today's trading. Nifty 50 closed at 24,530.90 (-270.0, -1.1%) , BSE Sensex closed at 80,604.65 (-738.8, -0.9%) while the broader Nifty 500 closed at 22,853.60 (-356.5, -1.5%). Market breadth is sharply down. Of the 2,151 stocks traded today, 328 showed gains, and 1,807 showed losses.

Indian indices closed lower after paring gains throughout the day. The volatility index, Nifty VIX, rose 2.1% and closed at 14.8 points. JSW Infrastructure's Q1FY25 net profit dropped by 9.2% YoY to Rs 292.4 crore, while, revenue rose 15% YoY to Rs 1,009.8 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower. Nifty Metal and Nifty Commodities closed more than 3% lower.  According to Trendlyne’s Sector dashboard, Consumer Durables emerged as the worst-performing sector of the day, with a fall of 3.6%.

European indices traded lower, while major Asian indices closed lower. US index futures traded mixed, indicating a cautious start to the trading session. Netflix reported Q2 earnings of $4.9 per share on revenue of $9.56 billion, topping estimates by 4.3% and 0.3%, respectively.

  • Relative strength index (RSI) indicates that stocks like Tata Teleservices (Maharashtra), Oil And Natural Gas Corp, Glenmark Pharmaceuticals, and Infosys are in the overbought zone.

  • GPT Infraprojects secures a Rs 103 crore enhancement to its existing contracts with the National Highways Authority of India (NHAI) and Eastern Railway Kolkata.

  • Axis Direct retains its 'Hold' rating on Bajaj Auto with an upgraded target price of Rs 9,790 per share. This indicates a potential upside of 3.8%. The brokerage believes the company's expansion of the premium electric two-wheeler and three-wheeler portfolio, leveraging new product launches and the gradual export pick-up, will help increase profitability. It expects net profit to grow at a CAGR of 6.9% over FY25-26.

  • Brent futures rises to $85.1 a barrel, while U.S. West Texas Intermediate (WTI) crude increases to $82.9, following gains from the previous session. Pranav Mer, VP - Research at JM Financial notes crude oil prices have rebounded from recent lows. This recovery was driven by a larger-than-expected decline in U.S. weekly oil stocks, signaling increased demand and bolstered by a weaker U.S. dollar.

  • Rail Vikas Nigam surges as it signs a memorandum of understanding (MoU) with United Construction, Israel. The partnership aims to collaborate on projects in railways, MRTS, tunnels, highways, bridges, building works, airports, ports, irrigation, power transmission and distribution, and solar & wind sectors.

  • JSW Infrastructure falls as its Q1FY25 net profit drops by 9.2% YoY to Rs 292.4 crore due to a 40% surge in total expenses. However, revenue rises 15% YoY to Rs 1,009.8 crore during the quarter. The company features in a screener of stocks with zero promoter pledge.

  • Sanstar's Rs 510.2 crore IPO gets bids for 2.5X the available 3.8 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 2.8X the available 1.9 crore shares on offer.

  • Ahead of the 2024 Union Budget, JP Morgan remains ‘Overweight’ on the industrials, financials, healthcare, auto, and real estate sectors. The brokerage believes the budget will likely focus on infrastructure and public investment. It adds that this budget could be a stepping stone towards ‘Viksit Bharat’ by 2047.

  • Power Mech Projects secures a Rs 209.5 crore contract from Hindustan Zinc for the operation and maintenance of three captive power plants (CPP), with a capacity of 91.5 MW each, in Chittorgarh, for four years.

  • Ircon International appoints Chairman and Managing Director (CMD) Shri Hari Mohan Gupta as the Chief Executive Officer (CEO), effective 1 July 2024.

  • Zydus Lifesciences falls after the US FDA classifies its Jarod injectables facility as official action indicated (OAI) following an inspection in April that resulted in ten observations.

  • Arnab Banerjee, MD & CEO of Ceat, expects double-digit revenue growth and improved margins in H2FY25. He highlights that natural rubber has touched a 13-year high within a short period and anticipates an impact if the trend continues. He reports that the company's EBITDA margins have declined to 12% in Q1FY25 from 13.2% in Q1FY24.

  • One97 Communications is falling as its net loss expands by 135% YoY to Rs 838.9 crore in Q1FY25 due to higher software, cloud, and data centre expenses. Revenue plunges by 33.5% YoY to Rs 1,639.1 crore during the quarter. It appears in a screener of stocks with declining net cash flow.

  • Tata Communications' Q1FY25 net profit falls 12.8% YoY to Rs 332.8 crore due to high network and transmission expenses. However, revenue rises 14.1% YoY to Rs 5,633.4 crore during the quarter. The company features in a screener of stocks where mutual funds increased shareholding over the past two months.

  • Caplin Point Laboratories gets US FDA approval for its ephedrine sulfate injection used to treat clinically important hypotension occurring in the setting of anesthesia. Ephedrine sulfate injection has annual sales of approx $36 million in the US.

  • Ahead of its Q1FY25 results announcement on July 23, 2024, Hindustan Unilever (HUL) is anticipated to benefit from increased rural demand and heightened summer conditions, which likely boosted demand in seasonal product categories. Analysts also expect HUL to capitalise on a projected 'normal' monsoon and reduced impact from past price adjustments, foreseeing a positive trajectory in revenue momentum.

  • Tata Technologies is falling as its Q1FY25 net profit misses Forecaster estimates by 10.9% despite growing by 3% QoQ to Rs 162 crore. However, revenue declines by 2.5% QoQ to Rs 1,292 crore due to a reduction in the services and technology solutions segments. It features in a screener of stocks with medium to low Trendlyne momentum score.

  • Persistent Systems falls sharply as its net profit declines by 2.8% QoQ to Rs 306.4 crore in Q1FY25 due to high employee benefits and finance costs. However, revenue grows by 5.6% QoQ to Rs 2,767.8 crore, helped by improvements in the banking, financial services & insurance (BFSI) and healthcare & life sciences segments. It shows up in a screener of stocks with PE higher than industry PE.

  • Infosys rises to its 52-week high of Rs 1,844 per share as its Q1FY25 net profit beats Forecaster estimates by 1.3% despite falling by 20.1% QoQ to Rs 6,368 crore. Revenue declines by 1.2% QoQ to Rs 40,153 crore due to a reduction in the retail and hi-tech segments. It features in a screener of stocks which gained more than 20% in the past month.

  • Jefferies maintains its ‘Hold’ rating on Havells India with a higher target price of Rs 1,880. The brokerage highlights that Q1 earnings were in line with estimates, with the Llyod segment outpacing the core segments. It cuts its EPS estimates by 1-2% for FY25-27 due to higher capex in FY26-27.

  • Dolly Khanna sells a 0.7% stake in Deepak Spinners in Q1FY25. She now holds a 1% stake in the company.

  • Radhakishan Damani adds Bhagiradha Chemicals & Industries to his portfolio in Q1FY25. He buys a 3.5% stake in the company.

  • Ashish Kacholia cuts his stake in Barbeque-Nation Hospitality to below 1% in Q1FY25. He held a 1.4% stake in the company in Q4FY24.

  • Dalmia Bharat's Q1FY25 net profit rises 8.5% YoY to Rs 141 crore despite a marginal fall in revenue to Rs 3,671 crore. Profit grows due to lower power & fuel and depreciation & amortization expenses. The company appears in a screener for stocks with low debt.

  • Nifty 50 was trading at 24,742.05 (-58.8, -0.2%), BSE Sensex was trading at 81,367.13 (23.7, 0.0%) while the broader Nifty 500 was trading at 23,108.40 (-101.7, -0.4%).

  • Market breadth is sharply down. Of the 1,903 stocks traded today, 452 were on the uptrend, and 1,424 went down.

Riding High:

Largecap and midcap gainers today include Rail Vikas Nigam Ltd. (613.75, 4.7%), One97 Communications Ltd. (458.75, 3.0%) and Infosys Ltd. (1,792.95, 2.0%).

Downers:

Largecap and midcap losers today include Persistent Systems Ltd. (4,583.45, -6.4%), Jindal Stainless Ltd. (745.30, -6.3%) and Cummins India Ltd. (3,559.45, -6.3%).

Volume Rockets

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

Top high volume gainers on BSE included Tata Teleservices (Maharashtra) Ltd. (102.14, 5.0%), Jubilant Pharmova Ltd. (749.55, 3.1%) and One97 Communications Ltd. (458.75, 3.0%).

Top high volume losers on BSE were Dalmia Bharat Ltd. (1,818.70, -5.1%), Tata Communications Ltd. (1,788.40, -4.4%) and ZF Commercial Vehicle Control Systems India Ltd. (15,171.50, -3.9%).

AIA Engineering Ltd. (4,271, 1.1%) was trading at 17.8 times of weekly average. Sheela Foam Ltd. (1,002.50, -1.6%) and Krishna Institute of Medical Sciences Ltd. (2,120.30, -0.7%) were trading with volumes 6.9 and 5.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks made 52 week highs,

Stocks touching their year highs included - AIA Engineering Ltd. (4,271, 1.1%), Indus Towers Ltd. (409.50, -2.3%) and Britannia Industries Ltd. (5,875, 0.1%).

2 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (102.14, 5.0%) and Bajaj Finserv Ltd. (1,640.25, -0.7%). 23 stocks slipped below their 200 SMA including Prism Johnson Ltd. (156.10, -5.6%) and Sonata Software Ltd. (662, -4.7%).

 
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