Trendlyne Analysis
Nifty 50 closed in the green with the Indian volatility index, India VIX falling below 20%. Most Asian indices closed higher as China pledged further economic support amid growing worries about the effect of Covid-19 lockdowns in parts of China. Japan’s central bank is expected to keep its monetary settings steady when it hands down its monetary policy later today, even as the yen weakened to a two-decade low against the US dollar. On Wednesday, US indices closed marginally higher on a volatile day of trade. The markets are expected to remain volatile as investors monitor the latest earnings, rising inflation level, and prospect of aggressive monetary policy by the US Fed. Crude oil trades at over $100 per barrel as the geopolitical crisis in Europe continues to disrupt its supply chain. European indices trade in the green as corporate results boost investor sentiments.
Nifty Smallcap 100 closed in the green, following the benchmark index. Nifty Pharma and Nifty Energy closed higher than Wednesday’s levels. Nifty IT closed in the green, taking cues from the tech-heavy NASDAQ 100 futures, which are trading higher.
Nifty 50closed at 17,245.05 (206.7, 1.2%), BSE Sensexclosed at 57,521.06 (701.7, 1.2%) while the broader Nifty 500closed at 14,913.90 (157.9, 1.1%)
Market breadth is in the red. Of the 1,875 stocks traded today, 843 showed gains, and 991 showed losses.
Bayer Cropscience, Vardhman Textiles, Fortis Healthcare, and Varun Beverages are trading with higher volumesas compared to Thursday.
Rainbow Childrens Medicare’s Rs 1,580.85-crore IPO gets bids for 55% of the available 2.05 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 82% of the available 1.01 crore shares on offer.
Laurus Labs’ Q4FY22 net profit falls 22% YoY to Rs 234.3 crore and revenues are flat at Rs 1,426.1 crore. Total expenses rise 10.8% YoY to Rs 1,124.4 crore led by changes in inventories of finished goods, work-in-progress, and stock-in-trade.
FMCG stocks like Hindustan Unilever, Tata Consumer Products, Dabur India, ITC and Varun Beverages among others are rising in trade. The broader sectoral index Nifty FMCG is also trading higher today.
Delivery volumes of stocks like Maruti Suzuki India, Alembic Pharmaceuticals, Havells India, and Deepak Nitrite, among others are rising ahead of their Q4FY22 results to be announced over the next few weeks.
Campus Activewear’s Rs 1,400-crore IPO gets bids for 51.7X of the available 3.36 crore shares on offer on the last day of bidding. The retail investor quota gets bids for 7.7X of the available 1.6 crore shares on offer.
Cyient to acquire Singapore-based firm Grit Consulting. This is an all-cash deal worth Rs 284 crore, according to reports. The acquisition will help Cyient in expanding its consulting capabilities in asset-driven industries like metals and mining.
Apcotex Industries falls despite reporting a 37% YoY rise in its Q4FY22 net profits at Rs 31 crore. Its quarterly revenues rise 48.4% YoY to Rs 279 crore backed by over 24% sales volumes growth and higher exports.
Varun Beverages’ Q4FY22 net profit rises 96.7% YoY to Rs 254.2 crore and revenues increase by 26.4% to 2,867.5 crores. Net profit increases sharply on the back of improvement in margins, reduction in finance costs, and higher profitability from international operations. Total sales volumes rise 18.7% YoY in Q4FY22 to 17.97 crore driven by strong demand across geographies.
JM Financialis trading with more than 18 times its weekly average trading volume. Vaibhav Global, TV18 Broadcast, TTK Prestige, and Rajesh Exports are trading at more than four times their weekly average trading volumes.
Trent posts a loss of Rs 20.8 crore in Q4FY22 compared to a Rs 17.4 crore profit a year ago as high input costs hurt margins. However, revenue rises 41.2% YoY to Rs 1,372.9 crore on recovery in footfalls. EBITDA margin falls by 480bps YoY to 13% as employee expenses rise 48% YoY
Mahindra Lifespace Developers rises after it announces its Q4FY22 results. Net profit for Q4FY22 is Rs 137.6 crore as against a loss of Rs 27.7 crore in Q4FY21. Total revenue surges 3X YoY to Rs 161.7 crore. Residential pre-sales grew 50% to Rs 1,028 crore while industrial leasing leaps 130% to Rs. 298 crore in FY22.
Angel One outperforms ICICI Securities by 17.7 percentage points in QoQ net profit growth. However, ICICI Securities outperforms Angel One on 11 out of 16 fundamental parameters like annual return on equity, price-to-earnings ratio, price-to-book value, among others, according to Trendlyne’s Stock Comparison tool.
Indian Energy Exchange is falling despite its Q4FY22 profit rising 43.62% YoY to Rs 88.4 crore. The company's revenue rises 28% YoY to Rs 128.4 crore. In FY22, the profit rises 50.2% YoY to Rs 308.6 crore.
Media stocks like Zee Entertainment, Sun TV Network, TV18 Broadcast, Network 18 Media & Investments and Saregama India are falling. The broader sectoral index i.e. Nifty Media is also trading in red today.
ICICI Securities downgrades its rating on Sanofi to ‘Hold’ from ‘Buy’ with a target price of Rs 7,740, indicating an upside of 11%. The brokerage downgrades its rating as the company’s Q4FY22 revenue fell 2% YoY to Rs 731.4 crore but retains a positive outlook as Sanofi has a strong brand recall in anti-diabetic therapies in India.
Persistent Systems’ Q4FY22 net profit rises 14% QoQ to Rs 201 crore and revenue by 10.3% QoQ to Rs 1,679.9 crore, driven by a 14.6% QoQ rise in services revenue. Operating profit margin rises by 34 bps QoQ to 17.17% and attrition falls by 30 bps to 26.6%.
Bajaj Auto's Q4FY22 profit rises 10.28% YoY to Rs 1,469 crore despite a 6.9% YoY fall in revenue to Rs 8263.7 crore. The increase in profit factors in the reduced expenses on raw materials among others. In FY22, the company's profit rises 10% YoY to Rs 5,019 crore.
Network 18 and TV18 Broadcast slump after Reliance Industries announces a strategic partnership with Bodhi Tree Systems to form the largest TV and digital streaming platform in India. Bodhi Tree Systems will invest Rs 13,500 crore while Reliance Industries’ subsidiary will invest an additional Rs 1,645 crore in Viacom 18. Network 18 is TV18 Broadcast's holding company and TV18 Broadcast is the controlling partner in Viacom 18.
HDFC AMC's Q4FY22 net profit rises 8.7% YoY to Rs 343.5 crore and revenues increase by 6.5% to Rs 580.93 crore. Systematic investment plan (SIP) flows rise 33.7% YoY to Rs 12,300 crore in Q4FY22. The company’s FY22 net profit rises 5.1% YoY to Rs 1,393.1 crore and revenues increases by 10.5% to Rs 2,433.2 crore.
Indian Hotels' posts a profit of Rs 71.5 crore in Q4FY22 compared to a Rs 97.7 crore loss a year ago. Revenue rises 52.4% YoY to Rs 954.8 crore helped by a recovery in leisure and business travel after easing of restrictions on travel and movement.
Hindustan Unilever’s Q4FY22 net profit rises 5.3% YoY to Rs 2,307 crore with total revenue rising 10.2% YoY to Rs 13,846 crore. Home care segment revenue grew 23.6% to Rs 4,743 crore. Total expenses for the company surge 11.5% YoY as the cost of materials consumed rises 18% to Rs 4,501 crore. As a result, gross margins fell 300 bps to 49.5%.
Riding High:
Largecap and midcap gainers today include Coromandel International Ltd. (899.15, 6.08%), Indian Hotels Company Ltd. (247.00, 4.77%) and Hindustan Unilever Ltd. (2,241.85, 4.51%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (284.25, -5.00%), Dr. Lal Pathlabs Ltd. (2,681.20, -3.78%) and JSW Energy Ltd. (330.40, -3.48%).
Crowd Puller Stocks
21 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Godrej Agrovet Ltd. (570.15, 11.05%), JM Financial Ltd. (75.65, 10.92%) and TTK Prestige Ltd. (853.20, 9.73%).
Top high volume losers on BSE were TV18 Broadcast Ltd. (61.80, -17.76%), La Opala RG Ltd. (315.05, -4.28%) and Bajaj Auto Ltd. (3,834.40, -1.82%).
KIOCL Ltd. (230.05, 7.02%) was trading at 13.7 times of weekly average. Vaibhav Global Ltd. (475.00, 5.52%) and Coromandel International Ltd. (899.15, 6.08%) were trading with volumes 11.1 and 10.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
8 stocks hit their 52-week highs, while 1 stock tanked below its 52-week lows.
Stocks touching their year highs included - Adani Power Ltd. (284.25, -5.00%), Crisil Ltd. (3,588.70, 7.32%) and DCM Shriram Ltd. (1,191.90, 4.38%).
Stock making new 52 weeks lows included - Zomato Ltd. (73.85, -2.64%).
21 stocks climbed above their 200 day SMA including Godrej Agrovet Ltd. (570.15, 11.05%) and United Breweries Ltd. (1,570.10, 4.23%). 15 stocks slipped below their 200 SMA including Bombay Burmah Trading Corporation Ltd. (1,001.30, -8.67%) and La Opala RG Ltd. (315.05, -4.28%).
