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PremiumAsian markets took hints from Wall Street rally on Monday and jumped in today's session as investors bargain hunted for stocks in the market. Nikkei gained around 3% while European markets are also trading in the green in today's session.
Indian benchmark indices soared by more than 2% on Tuesday led by strong buying support in heavyweights TCS, HDFC Bank and Reliance Industries amid strong global cues.
Sensex added a whopping 1,275 points to close above 58,000, at 58,065. Nifty reclaimed the 17,000 mark and ended at 17,280, a gain of almost 400 points.
All the indices gained on Tuesday with Bank, Finance, Metal and IT soaring the most. Pharma and Healthcare ended with a gain of less than a per cent.
Among stocks, IndusInd Bank and Adani Ports jumped more than 5%, and Bajaj Finance and Coal India more than 4%. Power Grid dragged and shed 1% in today's session.
Asian markets rose on Tuesday as investors scooped up beaten-down heavyweights and growth stocks after Wall Street closed sharply higher overnight.
Japan's Nikkei jumped 3% on Tuesday in broad-based buying, marking its biggest daily gain since March 23, and posting its highest close since September 22.
South Korean shares rose more than 2% on Tuesday with heavyweight chipmakers rallying. China and Hong Kong markets remained shut for holiday.
European shares climbed for the third-straight session on Tuesday, as technology, travel and leisure companies led the rally while also looking ahead to reading on inflation data due later in the day. The region-wide STOXX 600 index was up in the morning.
Gold prices in the national capital jumped ₹980 to ₹51,718 per 10 grams on Tuesday amid a rally in the prices of precious metal in the international market, according to HDFC Securities.
In the previous trade, the precious metal had settled at ₹50,738 per 10 grams.
Silver prices zoomed by ₹3,790 to ₹61,997 per kg from ₹58,207 per kg.
In the international market, gold was trading in green at USD 1,710 per ounce while silver was up at USD 20.99 per ounce. (PTI)
A report by KPMG has showed that 39 percent of CEOs have already implemented a hiring freeze while 46 percent are considering job cuts over the next 6 months.
The KPMG 2022 CEO Outlook asked more than 1,300 CEOs at the world’s largest businesses about their strategies and outlook.
The survey included leaders from eleven key markets like Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US. (Read More)
Drug firm Lupin on Tuesday said it has received an approval from the US health regulator to market Darunavir Tablets, used to treat Human Immunodeficiency Virus (HIV) infection, in the American market.
The Mumbai-based company said it is the exclusive first filer for 800 mg tablets and is eligible for 180-day exclusivity.
Lupin will also potentially have shared 180-day exclusivity on the 600 mg tablets, it added.
The company has received the approval from the US Food and Drug Administration (USFDA) for the medication in strengths of 600 mg and 800 mg, Lupin said.
The drug firm's product is a generic equivalent of Janssen Products' Prezista Tablets. (PTI)
Demand-supply mismatch is expected to keep prices of orthodox tea or ODX at higher levels, supporting its prices even in the Indian market, rating agency Icra said in a report on Tuesday. The production loss in Sri Lanka is likely to continue for some more time and would keep supply tight in the international market. (Read More)
As per the earlier announcement made by the cybersecurity software company buyback of shares will remain open till 18th October 2022. The cybersecurity company has announced buyback of shares at a price of ₹300 per equity share.
As per the information available on BSE website, "Trading Members and Custodian Members of the Exchange are requested to note the schedule of activities in respect of Offer to buy – Acquisition Window (BUYBACK) of shares of Quick Heal Technologies Ltd scheduled from Tuesday, October 4, 2022, to Tuesday, October 18, 2022, on the Exchange is as follows." (Read More)
European shares climbed for the third-straight session on Tuesday, as investors scooped up beaten-down shares of technology, travel and leisure companies, while also looking ahead to a reading on inflation data due later in the day.
The region-wide STOXX 600 index was up 1.8% by 0722 GMT, hitting its highest level since Sept. 23 along the way, and tracking a solid rally on Wall Street overnight.
London's blue-chip FTSE 100 index rose 1.4%, building on gains from the previous session after the UK conservative government's decision to reverse parts of its controversial tax cut plans.
All of the STOXX 600's sectoral indexes gained, led by a 2.8% jump in travel and leisure stocks. Rate-sensitive tech stocks added 2.4% as bond yield slipped. (Reuters)
Nishit Master, Portfolio Manager, Axis Securities PMS: The Indian markets are up almost 2% today following global cues since the US markets were up ~2.5% yesterday, and Dow futures today are indicating a positive 1% opening again. The movement in the global markets is in anticipation of a pivot by the US Fed towards slowing down or stopping liquidity tightening due to various financial risks now apparent. The business updates shared by banks and other financial intermediaries for Q2FY23 have been encouraging, and thus, the Financial sector is leading the rally in India, leading to upbeat estimates for the overall earnings season. We expect that this move in both Bank Nifty and Nifty50 can sustain as long as the market believes that the global central banks, especially the US Fed, will now be inclined to reduce/stop liquidity tightening measures. We believe that investors should buy good quality companies available at reasonable valuations in this rally, to not get caught on the wrong side, if the market expectations of the US Fed pivot does not hold true.
The construction subsidiary of engineering behemoth Larsen & Toubro (L&T) has bagged “significant" orders for its power transmission & distribution business. The company classifies orders worth ₹1,000 crore to ₹2,500 crore as significant.
Among other orders, the company has secured an order to set up a 765kV transmission line in Gujarat. The available power transfer capacity from the inter-state transmission system will increase thanks to this network expansion. (Read More)
Manufacturing solutions company Nasdaq-listed Sanmina Corporation (Sanmina) and Reliance Strategic Business Ventures (RSBVL) in a joint statement said on Tuesday that they completed the previously announced joint venture transaction.
Sanmina and RSBVL, a wholly-owned subsidiary of Reliance Industries, had in March inked an agreement to create a joint venture through investment in Sanmina's existing Indian entity (Sanmina SCI India).
The JV, which will focus on manufacturing fourth-generation mobile system (4G) and 5G hardware, will serve both domestic and export markets. The statement said that the partnership would leverage Sanmina's 40 years of advanced manufacturing experience and Reliance's expertise and leadership in the Indian business ecosystem.
The day-to-day business will continue to be managed by Sanmina's management team in Chennai, which will be seamless from an employee and customer perspective.
The joint statement also said the joint venture would create a world-class electronic manufacturing hub in India, in line with the "Make in India" mission. (PTI)
India's large trade deficit is beginning to consolidate, but the weaker exports are prompting a more gradual adjustment than expected, Barclays Bank said in a note on Tuesday.
India's trade deficit fell to $26.7 billion in September from $28 billion in August and $30 billion in July.
In that same period, merchandise exports have moderated from $36.2 billion in July to $33.9 billion in August, to $32.6 billion in September. The import bill, meanwhile, had dropped to $59.3 billion in September from $61.9 billion in August.
"Exports are moderating despite some stabilisation in petroleum shipments, with bulk of the weakness in non-oil, non-jewellery exports," Rahul Bajoria, India economist at Barclays Bank, said. (Reuters)
Global crude oil prices rose on Tuesday ahead of the meeting of OPEC+ which is expected to consider further output cuts.
The alliance of the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producing countries including Russia is scheduled to meet on Wednesday and is likely to discuss production cut of over 1 million barrels per day. If implemented, it would be the biggest output cut since the start of the pandemic in 2020. (Read More)
Japan's Nikkei jumped 3% on Tuesday to record its best session in more than six months, as investors scooped up beaten-down heavyweights and growth stocks after Wall Street closed sharply higher overnight.
The Nikkei share average advanced 2.96% to 26,992.21 in broad-based buying, marking its biggest daily gain since March 23, and posting its highest close since Sept. 22.
The broader Topix jumped 3.21% to 1,906.89 in its sharpest daily gain since March 10. (Reuters)
The advertising billboards are going up once again in a full swing, and the prospects of the outdoor advertising industry are looking up after being grounded by the covid19 pandemic. The economic fallout of the crisis has been a lot harder on this segment with billings drying up by a sizable amount. The recovery since then has been substantial, at least on a consistent basis. Revenues on August 22 and September 22 have now recovered to as much as 150 per cent of last year because of festive spending and the growth in business seen in the market, advertising industry executives said.
As the curbs were lifted, businesses within the cities, as well as inter-state travel, increased. "This boosted the festival season business and customers coming back to the markets. It is just the right time to reach the consumers, potential buyers through Outdoor Advertising (OOH) media," said Shubham Jain, Marketing Head, Shubindia Ad Works, an integrated outdoor media agency. (ANI)
Bank, IT and Metal lead the rally and indices are trading in green.
Shares of Perfectpac Limited are one of the multibagger stocks that Indian stock market has delivered in 2022. In YTD time, this small-cap stock has surged from around ₹184 to ₹511 apiece levels, logging near 180 per cent rise this year. However, the stock is still in uptrend. After announcement of stock split record date on 22nd September 2022, this multibagger stock has been hitting upper circuit for last eight days in a row. While ascending to its intraday high today, the small-cap stock went on to climb to its new life-time high of ₹511.20 apiece on BSE. The BSE listed company has fixed 21st October 2022 as record date for stock subdivision. The company has already announced stock split in 5:1 ratio. (Read More)
The government has approved ₹26,000 crore for installation of 25,000 mobile towers in 500 days, an official statement said on Tuesday.
According to a telecom ministry spokesperson, financial support for the project will be provided by Universal Services Obligation Fund and it will be implemented by Bharat Broadband Network.
The project was announced by Telecom Minister Ashwini Vaishnaw at three-day long 'Digital India Conference of State IT Ministers' that concluded on October 3.
"In his concluding remarks, Ashwini Vaishnaw stated that connectivity is vital for Digital India and its reach to every corner of the country. He announced that ₹26,000 crore has been approved to install 25,000 new towers in next 500 days," the statement said. (PTI)
Gaurav Jani – Research Analyst - Prabhudas Lilladher Pvt Ltd on SBI IN:
Management Meet Update - Drivers in place to support core earnings growth
Quick Pointers:
§ Fresh corporate proposals are of Rs1.5trn, of which 70% are from pvt. sector.
§ Opex growth to be controlled and reasonable in-line with inflation.
We recently interacted with the management to understand 1) credit outlook, 2) changes in credit appraisal 3) asset quality view and 4) opex trajectory. The bank is optimistic on loan growth, as improving economic activity and tight liquidity may support its credit offtake. New proposals and unavailed limits within corporate total to Rs6trn, while retail momentum might continue. With cash flows normalizing for SMEs, the ECLGS/OTR pools are also performing well. Underwriting has strengthened with induction of non-sales personnel in credit appraisal and robust credit research across 36 sectors. Asset quality may remain under control and target is to keep credit costs below 1%. While we slightly tweak our estimates, we expect a core PAT CAGR of 20% over FY22-25E. Retaining the multiple at 1.4x, we roll forward to core Sep’24 ABV, raising SOTP based TP from Rs620 to Rs650. Maintain ‘BUY’.
Kia India on Tuesday said it is recalling 44,174 units of its latest model 'Carens' to inspect and fix any potential error in air bag control module software. As a responsible corporate, the company has decided to voluntarily recall the vehicles for inspection and if required, a software update will be provided free of cost, the automaker said in a statement. The voluntary recall campaign is being undertaken to inspect any potential error in air bag control module software in the Carens, it added. (PTI)
Meta Platforms Inc. is planning to close one of its offices in New York after scaling down its expansion plans in the city, according to people familiar with the matter.
The company is exercising its option to terminate its lease at 225 Park Ave. South in Manhattan, said the people, who asked not to be identified because the information was private.
Meta has been consolidating its New York workforce, building out offices in Hudson Yards and moving ahead with plans for the Farley Building near Pennsylvania Station. The company has been dialing back some of its growth plans in the city, though, Bloomberg News has reported. (Read More)
The rupee strengthened by 31 paise to 81.51 against the US dollar in early trade on Tuesday, tracking weakness in the greenback in overseas markets and a rally in domestic equities.
However, rising crude price in the international market restricted the rupee, forex traders said.
At the interbank foreign exchange, the local currency opened sharply up at 81.66 against the dollar, then gained further ground to 81.51, showing a gain of 31 paise over its previous close.
The rupee settled 42 paise lower at 81.82 against the dollar on Monday. (PTI)
Easy Trip Planners Ltd on Tuesday informed that its board will meet next week on Monday, October 10, 2022 to consider the proposal for the issue of bonus equity shares of the company and/or sub division or stock split of share along with an increase in authorised share capital. Shares of Easy Trip Planners were trading more than 8% higher on the BSE in early deals. (Read More)
Oil prices edged up on Tuesday as expectations that OPEC+ may agree to a large cut in crude output when it meets on Wednesday outweighed concerns about the global economy.
Brent crude futures rose 47 cents, or 0.5%, to $89.33 per barrel by 0352 GMT after gaining more than 4% in the previous session.
U.S. crude futures rose by 31 cents, or 0.4%, to $83.94 a barrel. The benchmark gained more than 5% in the previous session, its largest daily gain since May.
Oil prices rallied on Monday on renewed concerns about supply tightness. Investors expect the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, will cut output by more than 1 million barrels per day (bpd) at their first in-person meeting since 2020 on Wednesday. (Reuters)
India sees a huge drop in infections with 1,968 Covid-19 cases reported in the last 24 hours, the lowest in 133 days, according to the Union Health Ministry data updated on Tuesday. This drop in cases comes after the country reported 3,011 yesterday.
As per the ministry, active cases in the country has now declined to 34,598 from the earlier 36,126. A decline of around 2,000 has been recorded in the active COVID-19 caseload in a span of 24 hours. (Full Story)
Tirthankar Das, technical & derivative Analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a long bearish candle following a rather larger Engulfing candle indicating of indecisiveness in the market and it seems that Index is likely to trade rangebound amidst the broader range of 16600-17300. Key to note that Index is presently flirting around the crucial 200dma sustaining above or below which would dictate the direction of the Index. However, for the Index to end its prolonged correction, it needs to close above 17350 in order to buck the trend else corrective bias might continue though Index presently trading in neutral to oversold price conditions hence pullback seems inevitable. Presently a trader needs to show patience and need to avoid trading aggressively in the market as the risk of a bare minimum correction of 38.2% of the entire rally from 15,183 to 18,096 comes around 16990 followed by 50% correction at 16650 remains. During the day index is likely to open on a positive note, tracking positive morning global cues. Formation of lower high- lower low signifies corrective bias. Hence, until and unless Index provides a decisive close above 17350, it would be a sell-on-rise market.
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: The global developments over the weekend continues to remain depressing and hence, SGX Nifty was indicating a gap down opening with a fair margin. Surprisingly, our markets started the week with marginal gains by completely shrugging off unfavorable global cues. However, we failed to capitalize on this promising start, because things had to come to an equilibrium and hence, withing few minutes, Nifty normalized to below 16950 levels to match with SGX Nifty. Around the mid-session, we did attempt for a recovery but sell off in some of the index constituents weighed down heavily in the latter half. Eventually, Nifty concluded the session tad below 16900 by shedding over a percent.
After Friday’s spectacular session, market participants certainly did not expect for this weakness; but globally there is no end to these mishaps. As an optimist, we must accept the fact that we are still outperforming most of the developed global markets and we remain hopeful of seeing some brighter days in the near term. As far as levels are concerned, 16800 – 16750 are to be considered as immediate supports and if there is no aberration globally, we may see our markets defending this sacrosanct zone.
On the flipside, 17000 – 17100 – 17200 is to be seen as cluster of hurdles. We advise traders to remain light till the time Nifty continues to oscillate in this broad range. The pragmatic approach would be to focus on stock specific moves but one needs to be less aggressive and extremely selective.
Announcing its Q2 FY23 business update, Yes Bank on Tuesday said that the bank's Loans & Advances came at ₹192,809 crore for the quarter ended September 2022 (provisional), up 11.6% year-on-year (YoY) and up 3.5% quarter-on-quarter (QoQ). The bank's loans & advances for June 2022 were at ₹186,367 crore and for September 2021 at ₹172,839 crore.
Shares of Yes Bank rose nearly 2% to ₹15 apiece on the BSE in Tuesday's opening deals. (Read More)
The stock rallies of Gautam Adani’s companies, which expanded his fortune at a pace that outran all other billionaires globally, is set for a reversal, according to a technical indicator that predicted previous slumps for more than a decade.
TD Sequential, a widely followed DeMark technical indicator that forecast drops in Adani Enterprises Ltd. three times since 2009, suggests that last week’s near 6% slump in the shares of the company may extend, with the stock continuing to pare its more than 100% gains for the year. It also hints at losses in the offing for the shares of Adani Total Gas Ltd. and Adani Ports & Special Economic Zone Ltd. (Bloomberg)
Japan's Nikkei jumped on Tuesday to its highest in nearly two weeks, after Wall Street closed sharply higher overnight and as investors scooped up beaten-down heavyweights and growth stocks.
By 0120 GMT, the Nikkei share average had risen 2.6% to 26,908.75 in a broad rally, hitting its highest since Sept. 22, and on track for its biggest daily gain since Aug. 12. The broader Topix was up 2.66% at 1,897.05.
Wall Street's three major indexes rallied more than 2% on Monday, as Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks.
"Investors scooped up shares that were beaten down, especially heavyweights and growth stocks," said Maki Sawada, a strategist at Nomura Securities. "The market was also underpinned by the strong finish of Wall Street." (Reuters)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "In the last eight out of ten years Sensex has given positive returns in October. Also, markets have a record of troughing out in October. This may happen this October too.
The ‘risk-off, risk-on’ texture of the market is in response to fast changing economic and market signals. For the near-term the market sentiments have turned positive with declining trend in dollar and US bond yields. If this trend continues FIIs will again turn big buyers in India and they will not get stocks cheap. Financials and autos are again set to lead the uptrend since their fundamentals and prospects are strong. Capital goods are likely to join the rally and telecom is on strong wicket."
Cash payouts form 20% of the total return for IT firms since March 2017, with around 50% of this through buybacks. Changes in taxation have left only TCS, Infosys, and Wipro as buyback-friendly firms, said global brokerage Jefferies.
Of these, the brokerage expects Infosys to announce a buyback worth ₹87-95 bn, while Wipro's buyback seems unlikely given its focus on inorganic growth and Infosys's buyback should support the share price amidst uncertain macro. (Read More)
President Droupadi Murmu will launch a start-up platform for women entrepreneurs created by Gujarat University here on Tuesday. On the second day of her two-day visit to Gujarat, the president will also inaugurate or lay foundation stones of various projects related to education and tribal development at a function at Gujarat University. `Her Start' is an initiative of the varsity for women entrepreneurs. Murmu is on her first visit to Gujarat after becoming president. (PTI)
STOCK IN FOCUS
Finolex Industries (CMP Rs.138
Considering the leading position in the Agri-pipe segment and backward integration for the PVC Resin business, sustained cash flow and high dividend pay-out of 35% (average over FY16-FY22), we have BUY rating on the stock, with a Target Price of Rs165.
Intraday Picks
BRITANNIA (PREVIOUS CLOSE: 3769) SELL
For today’s trade, short position can be initiated in the range of ₹4000-4030 for the target of Rs.3900 with a strict stop loss of ₹4080.
GRASIM (PREVIOUS CLOSE: 1636) BUY
For today’s trade, long position can be initiated in the range of ₹1620-1636 for the target of Rs. 1674 with a strict stop loss of ₹1608.
TATAMOTORS (PREVIOUS CLOSE: 398) BUY
For today’s trade, long position can be initiated in the range of ₹394- 398 for the target of Rs. 412 with a strict stop loss of ₹390.
In cryptocurrencies, Bitcoin price today, which is the world's largest and most popular cryptocurrency, was trading about 2% higher at $19,548. The global crypto market cap today remained below the $1 trillion mark, even as it was up over a per cent in the last 24 hours at $979 billion, as per CoinGecko. (Read More)
Indices lost more than a per cent on Tuesday as investors remain vigilant and looked for signs of economic recession. India's exports shrink by 3.52% to $32.62 billion in September as against $33.81 billion in the same month in 2021. The trade deficit also widened to $26.72 billion. (Read More)
The Nifty could open with a gap Tuesday, early morning data from Singapore Exchange (SGX) indicates. Short covering by FPIs, who hold 87% bearish index futures positions, could aid the possible bounce back. Covering a short position involves buying it back, which raises the security's price. (Read More)
The Indian rupee is tipped to open higher against the dollar on Tuesday after Treasury yields plunged following data that showed a further slowdown in U.S. manufacturing activity.
The rupee is expected at around 81.55-81.60 per U.S. dollar in early trading, up from 81.8725 in the previous session.
The local unit on Monday yet again had threatened to slip below the 82 level, likely prompting the Reserve Bank of India to step in. It was the third instance in the last four sessions that rupee has dropped to near 82. The record low on rupee is 81.95, reached last Wednesday. (Reuters)
Small-cap stock with a market cap of ₹637 crore has been hitting the upper circuit for the last three successive days in a row. The chemical and healthcare stock first hit the 5 per cent upper circuit on 29th September 2022. It further hit the upper circuit on 30th September 2022 and 3rd October 2022. Vikas Lifecare shares are in news for attracting the interest of foreign institutional investors (FIIs). During April to June 2022 period, a good number of FPIs ((Foreign Portfolio Investors) made investments in this small-cap company. Those FPIs include Forbes EMF, Nomura Singapore, BNP Paribas Arbitrage and AG Dynamics Funds. (Read More)
The three day initial public offering (IPO) of Electronics Mart India (EMIL) will open for public subscription on Tuesday and will conclude on October 7, 2022, with the price band at ₹56-59 per share. The initial share sale consists of a fresh issue of equity shares aggregating to ₹500 crore, with no offer for sale (OFS) component.
As per market observers, Electronics Mart India shares are commanding a premium or grey market premium (GMP) of ₹31 in the grey market today. The company's shares are expected to list on stock exchanges on Monday, October 17, 2022. (Full Story)
The credit quality of India Inc continued to strengthen in the first half of the current financial year, carrying on with the momentum set in motion since the beginning of the financial year 2021-22, rating agency ICRA said on Monday.
In the first half of the financial year 2022-23 as also in the financial year 2021-22, instances of rating upgrades by ICRA were over three times that of downgrades.
With ICRA upgrading the ratings of 18 per cent of its portfolio entities in H1 FY2023 on an annualised basis (and prior to that an equally high 19% in FY2022), the upgrade rate reflected a significant mark-up over the past 5-year and the past 10-year average of 11%. (ANI)
Adani Renewable Energy Holding Four Limited has incorporated three new subsidiary companies for renewable energy business.
In a statement on Monday, Adani Green Energy Ltd (AGEL) said Adani Renewable Energy Holding Four Limited is its own subsidiary and the newly incorporated entities are its step-down subsidiaries.
"Adani Renewable Energy Holding Four Limited has incorporated 3 new subsidiaries. The main objective of the new subsidiaries is to generate, develop, transform, distribute, transmit, sale, supply any kind of power or electrical energy using wind energy, solar energy or other renewable sources of energy," it said. (PTI)
The rupee fell by 42 paise to close at 81.82 against the US dollar on Monday, snapping its two-session gaining streak as heavy selling in domestic equities and a spike in crude oil prices weighed on the local unit.
Besides, a stronger greenback against key rivals and weak macro data put pressure on the domestic currency, forex dealers said.
At the interbank foreign exchange market, the local currency opened weak at 81.65, fell further to 81.98 against the American currency.
It finally ended at 81.82, down 42 paise over its previous close. In the previous session, the rupee settled at 81.40 against the greenback. (PTI)
