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PremiumShare Market Updates: Sensex and Nifty traded flat for most of the session and ended markedly lower with FMCG, IT, and Pharma dropping, while PSU Bank and Metal gained.
This week is brimming with several key events that will guide market direction, including the next set of July-September quarter of fiscal 2023-24 (Q2FY24) results, macroeconomic data, foreign fund inflow, crude oil prices.
World shares fell and oil prices edged lower as investors braced Monday for an expected invasion by Israel in the Gaza Strip.
Wholesale inflation in India based on the Wholesale Price Index continued to stay in the negative zone for the fifth straight month through August, besides hitting a fresh multi-year low.
Indian shares traded mostly flat on Monday but closed markedly lower amid declines in global markets and a rise in oil prices due to nervousness around escalating violence in the Middle East, while investors awaited the quarterly results of India's top private lender HDFC Bank.
The NSE Nifty 50 index was down 20 pts to close at 19,731, while the S&P BSE Sensex fell 115 pts to end at 66,166. Six of the 15 broad-based sectoral indices ended in the green in today's session.
Metal stocks like JSW Steel and Tata Steel led the stock charts followed by HCL Tech and Axis Bank, all of which rose by more than a per cent. Nestle India and TCS shed the most in today's session.
Metal and PSU Bank topped the sectoral indices while Pharma, Pvt Bank, IT and FMCG shed marginally in today's session. Most indices ended around the previous closing with little movement.
Japan's Nikkei share average declined over 2% on Monday, dragged by chip-related shares, with risk appetite being hurt as tensions in the Middle East escalated. The Nikkei index fell 2.03%, while the broader Topix lost 1.53% to 2,273.54.
Chinese blue-chip stocks fell amid concerns that the Middle East conflict could widen, despite some stabilising signs in economic recovery and the authorities' latest measures to shore up investor confidence.
The blue-chip CSI 300 Index lost 1% by the close, and was near levels seen nearly a year ago, while the Shanghai Composite Index closed 0.5% lower. Hong Kong's Hang Seng Index dropped 1% and the Hang Seng China Enterprises Index declined 1.1%.
European shares climbed with miners in the lead on optimism around demand from top consumer China, although trading was cautious as investors weighed prospects of an escalation in the Middle East conflict.
UK's commodity-focussed FTSE 100 opened the week higher, helped by elevated oil prices amid fears of an escalation of the conflict in the Middle East.
Gold prices are likely to hit ₹61,000 per 10 grams levels this Diwali that falls in mid-November, analysts said. This is a growth of around ₹2,000, or 3.3%, from the current market price of the yellow metal.
Silver prices are also expected to see a rise of around ₹5,000 per kg from here and trade around ₹75,000 levels in Diwali 2023.
The expectation of a rally in gold and silver prices comes on the back of a sustained positive environment for the bullion in the global as well as domestic markets, analysts said. (Read More)
Skipper Ltd has bagged fresh orders worth ₹588 crore in the domestic and international markets.
While its T&D (transmission and distribution) business has bagged contracts worth ₹468 crore in India, the company has received another ₹120-crore T&D orders in the international markets, Skipper said in a statement.
Sharan Bansal, Director, Skipper Limited, said:,"The consistent order inflows in the T&D business have led to a total order inflow of ₹1,803 crore, registering an impressive 200 per cent growth over last year till date. We expect the momentum to continue in T&D ordering in both domestic and international markets." (PTI)
Brent oil futures steadied above $90 a barrel on Monday after passing the threshold on Friday, as investors waited to see if the Israel-Hamas conflict draws in other countries.
Brent futures were down 39 cents, or 0.43%, at $90.50 a barrel at 0855 GMT. U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.3%, to $87.43 a barrel.
Both benchmarks climbed nearly 6% on Friday, taking Brent 7.5% higher on the week and WTI up 5.9%, as investors priced in the possibility of a wider Middle East conflict. (Reuters)
Minda Corporation emerges as the top pick of the week, as indicated by brokerage firm Axis Securities, following an impressive 65 percent surge in the past year and a similar rise in 2023 to date. This selection is based on the company's endeavors in fortifying technical collaborations, concentrating on margin expansion, and pursuing opportunities for inorganic growth.
With a positive outlook on the stock, the brokerage maintains a 'buy' recommendation and sets a target price of ₹375, suggesting a potential upside of over 10 percent from its current market price of ₹339.50. (Read More)
Kalpataru Projects International Limited (KPIL) on Monday said it has bagged new orders worth ₹2,217 crore in the domestic and international markets. While its T&D (transmission and distribution) business has bagged contracts worth ₹1,993 crore in India and overseas markets, the company's B&F (building and factories segment) has received ₹224 crore new orders in the domestic market, KPIL said in a regulatory filing. Manish Mohnot, MD & CEO, KPIL, said, "we are delighted with the significant order wins, resulting in our total order inflows reaching ₹10,616 crore in the current financial year. (PTI)
Bank of Maharashtra, a government-owned financial institution, has disclosed a standalone net profit of ₹919.8 crore in the second quarter of FY24, indicating a significant increase of 72% compared to ₹535.1 crore recorded during the corresponding quarter of the previous fiscal year.
During Q2FY24, the bank observed a noteworthy surge in Net Interest Income (NII), reaching ₹2,432 crore, marking a 28.9% rise from the previous year's figure of ₹1,887 crore. (Read More)
IFL Enterprises has officially notified the Indian stock market exchanges about its scheduled board meeting set for November 1, 2023. In this meeting, the board of directors intends to discuss and approve proposals concerning the issuance of bonus shares, the buyback of shares, and the declaration of an interim dividend for the second quarter of the current financial year.
The buyback price for IFL Enterprises has been established at ₹17 per share, reflecting an increase of approximately ₹4.70 per share over the current IFL Enterprises share price. (Read More)
Business Standard has reported that the Goods and Services Tax (GST) authorities have issued notices to several foreign companies, including Facebook, Google, Netflix, and Spotify, to ensure their adherence to the latest GST regulations.
Approximately 70 digital companies, encompassing advertising firms, edtech platforms, and online gaming companies, received these notices in accordance with the stipulations for an 18 percent Integrated GST (IGST). The implementation of this new tax commenced from October 1, irrespective of whether the services provided are for personal or business use. (Read More)
Federal Bank achieves record-breaking quarterly net profit, surging by 35.54% to reach ₹953.82 crore for the quarter ended September 2023, compared to ₹703.7 crore in the corresponding quarter last year.
Furthermore, the bank experienced a substantial 16.7% growth in net interest income (NII) during Q2FY24, amounting to ₹2,056.4 crore, up from ₹1,761.8 crore on a year-on-year basis. The Net Interest Margin stood at a robust 3.16%. (Read More)
According to a recent expert analysis conducted by Nuvama Institutional Equities on the chemical sector, growth is expected to persist for companies such as Galaxy and PI Industries, while players focused on agrochemicals may encounter pressure on demand.
Following discussions with a chemical industry expert to gain comprehensive insights, the brokerage highlighted key takeaways. Notably, the ongoing destocking of inventory is anticipated to accelerate during Q3FY24, with major global market entities focusing on year-end balance sheets. (Read More)
Mohit Ralhan, Chief Executive Officer, TIW Capital on Wholesale Price index (WPI) announcement: Wholesale prices continued to decline for the sixth straight month. Price decline was seen in paper & paper products, chemicals, textiles and basic metals. However, manufactured goods witnessed a sequential rise in prices, indicating a recovery is underway in the sector. More importantly, Food prices continued to witness a sequential decline. Vegetable prices which had shot up in the last two months saw a significant correction. This bodes well for the inflation trajectory in the economy and will allow the RBI to stay put on interest rates. Because of this sharp fall in food prices, the WPI index also witnessed a decline on a MoM basis. This was the first sequential decrease in three months. India looks quite in control of inflation and this will likely give RBI the required headroom to react to global macroeconomic events and policy actions of the Fed."
The National Stock Exchange (NSE) introduced thirteen (13) new commodity derivatives contracts, today (Monday, October 16) bringing the total number to 28 products in the commodity derivatives segment, according to a press statement from the exchange.
The thirteen new derivatives contracts include "Option on Futures" for Copper Futures, Zinc Futures, Gold Mini Futures, Silver Mini Futures, and Gold 1kg Futures. Gold Guinea (8 grams) Futures; Aluminium Futures; Lead Futures; Lead Mini Futures; Nickel Futures; Zinc Futures; and Zinc Mini Futures. (Read More)
The National Company Law Appellate Tribunal (NCLAT) on Monday suspended its order passed last Friday, pertaining to disclosure of the results of AGM of Finolex Cable, after it faced an enquiry by the Supreme Court in the matter.
A two-member NCLAT bench said, in view of the order of the Supreme Court, it is passing an "order for suspension" of its judgment passed on October 13, 2023.
The order was related to the annual general meeting (AGM) of Finolex Cables and Prakash Chhabria and Deepak Chhabria's legal tussle over the management control of the company.
In this matter, the Supreme Court on Friday directed the NCLAT chairperson to conduct an enquiry and submit a report by Monday, over an allegation that one of its benches delivered an order without following the top court's directions. (PTI)
On Monday, BLS International Services continued its upward trajectory, marking a second consecutive session with a remarkable 8.15% surge, reaching ₹270.50 per share. The surge was attributed to the company's recent acquisition of a Schengen global visa outsourcing contract for Slovakia.
According to an exchange filing on Monday (October 16), the company confirmed the signing of an exclusive global visa outsourcing contract for Slovakia in 18 countries, encompassing more than 54 offices. Considering the 2.64 million tourists Slovakia welcomed in 2021, the company anticipates a further increase in this number in line with evolving travel trends. (Read More)
With the recent announcement of a ceasefire in South Gaza by the United States, Egypt, and Israel, tensions in the Middle East have eased, leading to a momentary pause in the gold price rally during morning trading. Gold prices opened lower at ₹59,209 per 10 grams. Despite the weak opening, gold prices rebounded and reached an intraday low of ₹58,944. In the international market, gold prices are maintaining levels above $1,900 per ounce.
Commodity market experts suggest that gold prices are likely to remain supported at lower levels as long as the tension in the Middle East persists. (Read More)
WPI-based inflation in September 2023 is at -0.26 percent, against -0.52 percent in August, government data showed
On Monday's trading session, the share price of NBCC witnessed a notable surge of 5%, reaching a 52-week high. This spike followed the company's reception of a lucrative work order worth ₹80 crore from the Visakhapatnam port authority for the renovation and refurbishment of an office block. Today, NBCC's share price commenced at ₹64 apiece on the BSE, touching an intraday high of ₹66.20 and a low of ₹63.78.
According to an official statement released by the company in an exchange filing, the specific time frame for the execution of the order is yet to be determined. (Read More)
The rupee appreciated by 6 paise to 83.24 against the US dollar in early trade on Monday supported by positive macro economic data.
Forex traders said falling domestic inflation, rise in industrial production figures and improvement in trade deficit aided the local unit.
However, geopolitical tensions, particularly the Israel-Hamas conflict, dented investor sentiments.
At the interbank foreign exchange, the domestic unit opened at 83.25 against the dollar and then touched an early high of 83.24, registering a gain of 6 paise over its previous close.
On Friday, the rupee fell 6 paise to settle at 83.30 against the US dollar. (PTI)
On Monday, HDFC Bank experienced a decline in share price as investors anticipated the upcoming announcement of its September quarter results. As the largest private sector lender in the country, HDFC Bank is poised to unveil its earnings for the second quarter of FY24 today, on 16 October, 2023.
At the opening of the market, HDFC Bank shares were priced at ₹1,536.70 apiece on the BSE, slightly lower than the previous day's closing value of ₹1,536.75. However, the stock encountered selling pressure and was trading at a decrease of over half a percent. (Read More)
The share prices of Dalmia Bharat Ltd rose up to 3.5% in morning trades on Monday post its September quarter performance that was reported over the weekend.
Dalmia Bharat reported a healthy volume growth of 6.6% year-on-year to 6.3 million tonne (mt) amidst strong cement demand. With improving cement prices in the country, the Dalmia Bharat’s per tonne profitability at ₹950 per tonne improved over ₹875 seen in the previous quarter and ₹653 in the year-ago quarter, as per analyst’s calculations. The decline in costs, like that of freight and decline in other expenses, also helped leading to profitability improvement for Dalmia Bharat. (Read More)
Veer Mishra, Co-Founder of Plus Outlook for gold and silver prices in India: Gold and silver prices in India are expected to remain volatile in the coming months, as they will be influenced by a number of factors, including global economic conditions, US Federal Reserve interest rates, and the rupee-dollar exchange rate.
However, in the long term, gold and silver are generally considered to be good investments, as they are seen as safe-haven assets. This is because gold and silver prices tend to rise during times of economic uncertainty.
Overall, the price of gold and silver in India is likely to remain elevated in the coming months, but there is also potential for volatility. Investors should carefully consider their investment goals and risk tolerance before investing in gold or silver.
Akshay Jain of JM Financial Institution views on HDFC Life Insurance 2Q24 Result Update: In-line quarter: Result Update BUY INR 750
In 2QFY24, HDFC Life reported APE of INR 30.5bn registering growth of +1% YoY/+31% QoQ with its market share at 9.7% (+70bps YoY). On expected lines, non-par savings growth continue to lag (-35% YoY) on account of new tax rules, though strong growth in ULIPs and par segment balanced out the negative impact of degrowth in non-par. Banca continues to remain the dominant distribution channel (contributing 65% of 1HFY24 indvl APE; up 8pps YoY); management indicated that its wallet share in HDFC Bank has inched up to 62% in 2QFY24 vs 55.5% in 1QFY24 and expect the improvement to sustain. HDFC Life reported VNB margins of 26.3% (+10bps QoQ) despite a reduction in share of high margin non-par savings and healthy growth seen in low margin ULIP segment. Management indicated that incrementally, VNB growth will be driven by APE growth rather than margin improvement. The insurer reported an EV of INR429bn as of Sep’23 with operating RoEVs improving to 16.4%. Management remains confident of maintaining the incremental growth in the range of 15-16% (on adjusted base of FY23 for high non par sale in Mar’23) going ahead. We believe HDFC Life remains well placed for valuation rerating owing to a) successful leveraging of HDFC Bank banca channel post merger, b) revival in premium growth, and c) steady NBMs, driven by strong impetus on protection. We value HDFC Life at 2.9x FY25E EV to arrive at our TP of INR 750. Maintain BUY.
Gold slid on Monday, pressured by technical selling, following a fierce 3% rally in the previous session as raging Israel-Hamas war sent investors scuttling to the safe-haven bullion and pushed prices above the key $1,900 ceiling.
Spot gold fell 0.7% to $1,919.21 per ounce by 0423 GMT and U.S. gold futures dropped 0.5% to $1,932.70.
Gold, which investors view as a safe place to park money during times of economic and geopolitical stress, hit its highest since Sept. 20 at $1,934.82 earlier in the session, after surging 3.4% on Friday in its biggest one-day rise in seven months. (Reuters)
Oil traded in a narrow range, with Israel yet to launch its expected ground offensive of the Gaza Strip and the US stepping up efforts to prevent the crisis from becoming a regional conflagration.
Brent traded above $91 a barrel, after surging almost 6% on Friday to cap a sizable weekly gain. Over the weekend, US officials rushed to speak with Middle Eastern nations — including back-channel talks with Iran — to contain the conflict. Secretary of State Antony Blinken returns to Israel on Monday, and President Joe Biden is also considering a trip there in the coming days.
The global crude market has been transfixed by the confrontation following Hamas’ initial offensive against Israel amid concern that other states, especially Iran, may be drawn in. Any instability or escalation of fighting across the Middle East could jeopardize flows of crude from the region that accounts for about a third of worldwide supply, further tightening the market. (Bloomberg)
DMart's shares took a hit of over 4% during early trade on Monday following the release of the company's quarterly earnings report for September 2023. The share price of Avenue Supermarts, also known as DMart, saw a significant decline of 4.09% to ₹3,771.70 per share on the BSE.
The operator of the DMart retail chain, Avenue Supermarts, disclosed a consolidated net profit of ₹623.35 crore for the second quarter of FY24 on October 14. This figure reflects a decrease of 9.09% compared to the net profit of ₹685.71 crore during the same period in the previous year. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Concerns regarding the spread of the Israel-Hamas conflict have triggered the sharp spike in Brent crude to above $90 and safe-haven buying has pushed gold to above $1900. The anxiety of the market is reflected in the CBOE VIX spiking above 19. From the geopolitical perspective, we are in uncharted territory and, therefore, prudence demands that investors remain cautious.
Holding cash would be a good strategy in this uncertain time. The cash component in the portfolio may be increased as a measure of caution. Also, this will enable investors to buy when there is a big dip in the market, and it is important to note that big dips can happen since valuations are high.
Paints, tyres and aviation stocks will be under pressure from the rising crude. HDFC Bank results today will be keenly watched by the market.
Mandar Bhojane, Equity Research Analyst, Choice Broking: Today, the Sensex and Nifty indices are poised to open flat, in line with GIFT Nifty trends, which suggest a potential loss of 10 points. On October 13, the stock market experienced a bearish trend as IT industry leaders faced demand-related uncertainties, and the banking sector saw a downturn, leading to a decrease in overall investor sentiment.
Federal Reserve officials are expected to maintain the current interest rates for the second consecutive month during the October 31-November 1 meeting. However, they have not ruled out the possibility of future rate hikes, given the strong performance of the labor market and inflation data, indicating a robust economy.
In the daily chart, the Nifty index continues to exhibit a bullish trend, forming higher highs and higher lows. This positive trend is likely to continue as long as the index remains above the 19,845 level. There is potential for the index to extend its gains towards the 20,000 mark, but if it falls below 19,550, a period of consolidation may be observed.
On October 13, foreign institutional investors (FII) purchased shares worth ₹317.01 crore, while domestic institutional investors (DII) sold stocks worth ₹102.88 crore, as per provisional data from the National Stock Exchange (NSE).
Given the absence of clear trends in both the Nifty and Bank Nifty, it is advisable for market participants to exercise caution and adopt a more selective, stock-specific approach to their investments. This approach can lead to well-informed and strategic investment decisions in a potentially volatile market.
ICICI Securities Ltd board of directors will consider declaring interim dividend along with unaudited financial statements for the quarter and half year that concluded on September 30, 2023, today (Monday, October 16).
ICICI Securities has fixed Friday, October 27 as the record date for the said dividend payment, if declared today. (Read More)
Sony Pictures Entertainment (SPE), the global entertainment unit of Japan’s Sony Group Corp., has initiated talks with Walt Disney Co. about a potential acquisition of its India business, said two people with direct knowledge of the matter.
The preliminary discussions with Disney are part of Sony’s contingency plan in case its ongoing merger agreement with Zee Entertainment Enterprises Ltd faces inordinate delay or collapses, the people said, requesting anonymity. (Read More)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends:
1] Gujarat Alkalies: Buy at ₹766.25, target ₹520, stop loss ₹752;
2] Aptech: Buy at ₹289, target ₹308, stop loss ₹285; and
3] Rites: Buy at ₹498, target ₹530, stop loss ₹492. (Read More)
Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, on Saturday reported a 9.09 per cent fall in consolidated net profit at ₹623.35 crore for the second quarter ended September 30, as gross margins were impacted due to lesser contribution from general merchandise and apparel business.
The company had posted a net profit of ₹685.71 crore in the July-September quarter a year ago, said Avenue Supermarts in a regulatory filing.
However, its revenue from operations was up 18.66 per cent to ₹12,624.37 crore during the quarter under review, as against ₹10,638.33 crore in the corresponding quarter last fiscal.
Avenue Supermarts' total expenses in Q2/FY24 were at ₹11,809.35 crore, up 18.97 per cent.
The total income of Avenue Supermarts in the September quarter was at ₹12,661.29 crore, up 18.61 per cent. (PTI)
On October 14, Delta Corp, a casino chain operator, disclosed receiving new GST payment shortfall notices totaling ₹6,384 crore. This development follows an earlier notice of ₹16,822 crore received nearly three weeks prior. The subsidiary, Deltatech Gaming Ltd, received these latest notices from the Directorate General of GST Intelligence in Kolkata on October 13, as stated by the company. (Read More)
TCS: Probing a job-related scandal, implemented hiring reforms, and ousted the head of the resource management group.
Tata Motors: Sold a stake in Tata Technologies as part of a debt reduction plan.
IDBI Bank: Government revealed significant tax assets and properties in major cities during asset valuation.
SpiceJet: Experienced stock surge due to rumors about stake acquisition, later denied by the concerned parties.
Adani Enterprises: Under investigation for Mumbai airport accounts by the corporate affairs ministry.
Ashok Leyland: Secured a major order for supplying new buses from Tamil Nadu State Undertakings.
IOCL/NTPC: Investing in a joint venture for renewable power plant setup.
Delta Corp: Received fresh GST payment shortfall notices following earlier ones.
Avenue Supermart: Reported an 18.5% revenue growth in Q2 FY 2024.
Finolex Cables: Directed by NCLAT to disclose shareholder voting outcome; current CEO allowed to continue. (Read More)
On Friday, Adani Enterprises notified the stock exchanges of an ongoing investigation by the corporate affairs ministry into the accounts of the group's two airports in Mumbai.
The company disclosed that the Office of the Regional Director, Southeast Region, Hyderabad, Ministry of Corporate Affairs, has requested information and documents regarding the financial years 2017-18 to 2021-22 for the airports - Mumbai International Airport Ltd and Navi Mumbai International Airport Ltd. (Read More)
Tata Motors Ltd sold a 9.9% stake in Tata Technologies Ltd for ₹1,613.7 crore to the Ratan Tata Endowment Foundation and TPG Rise Climate SF Pte. Ltd, a climate investment fund of TPG Global.
The transaction, which values the IPO-bound Tata Technologies at around $2 billion, is in line with Tata Motors’ deleveraging strategy, according to a company release.
Tata Motors sold 9% to TPG Rise Climate for ₹1,467 crore and 0.9% to the Ratan Tata Endowment Foundation for ₹146.7 crore. (Read More)
Following a subdued commencement to the second quarter earnings season marked by lacklustre FY24 projections and revenue expansion from prominent IT firms, investors are placing their expectations on the imminent quarterly earnings release this week. Key corporations including HDFC Bank, ICICI Bank, IndusInd Bank, Bandhan Bank, L&T Technology Services Ltd, Bajaj Auto, Wipro, Coforge Ltd, Cyient, and others are set to unveil their earnings between October 16 and 21. (Read More)
A nearly six-month-long probe into the bribes-for-jobs scandal at Tata Consultancy Services Ltd has resulted in crucial suggestions for hiring reforms, along with the sacking of the former head of its resource management group (RMG).
E.S. Chakravarthy, the former head of TCS’s resource management group, who was accused of misconduct in hiring contract workers by two separate whistleblower complaints in February and March and sent on leave on 18 April, has now been sacked by the company, according to an executive privy to the development.
On Sunday night, TCS disclosed to the exchanges that it had sacked 16 employees and blacklisted six staffing firms. (Read More)
U.S. stocks mostly fell Friday after fears about war in the Middle East collided in financial markets with hopes for stronger profits at big U.S. companies.
Oil prices leapt, and Treasury yields fell after Israel's military ordered the evacuation of northern Gaza ahead of a possible ground invasion, according to the United Nations, which warned of potentially “devastating humanitarian consequences." But several U.S. banking giants at the same time said their profits during the summer were better than feared, which offered hope on Wall Street for an earning reporting season that may deliver the first growth for big companies in a year.
All the push and pull sent the S&P 500 down by 21.83 points, or 0.5%, to 4,327.78. The Dow Jones Industrial Average edged up by 39.15, or 0.1%, to 33,670.29, and the Nasdaq composite dropped 166.98, or 1.2%, to 13,407.23.
Some of the strongest action was in the oil market, where a barrel of benchmark U.S. crude jumped $4.78 to settle at $87.69. Brent crude, the international standard, climbed $4.89 to $90.89 per barrel. (AP)
