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PremiumAsian markets mostly gained on Monday following the Wall Street rally on Friday. Toky, Hong Kong and Shanghai all gained despite Chinese authorities denying any relaxation in Covid-19 restrictions. European markets were trading lower though.
In a day marked with volatility, benchmark indices made a late run and ended with decent gains. Investors were motivated by earnings data and scooped up shares of companies that performed better than expected while selling shares that disappointed.
Sensex ended with a gain of 235 points and closed at 61,185. Meanwhile, Nifty jumped 85 points to close just above 18,200, at 18,202.
Britannia with 8% and SBI with a 3% gain were among the chart toppers after better-than-expected quarterly results declared over the weekend. Adani Enteprises and BPCL also soared. Divi's Lab dropped 9% after a disappointing quarterly result. Asian Paints also shed more than 2%.
PSU Bank index rallied almost 4% led by the Bank of Baroda and SBI. Metal, Realty, Oil & Gas and Auto also had a decent run. Pharma and Healthcare indices dragged in today's session.
Asian market mostly had a positive day with Japanese shares ending higher tracking a strong performance on Wall Street as investors scooped up some stocks following the release of positive annual outlook. The Nikkei rose 1.21% in its biggest intraday gain in a week.
Chinese traders overlooked the reiteration of the Covid Zero strategy focusing instead on an eventual reopening and continuing to scoop up the nation’s battered shares.
Hong Kong's Hang Seng index ended 2.6% higher, while the Shanghai Composite index gained 0.2% in today's session.
European shares opened lower on Monday as mining and luxury stocks fell after hopes of an easing in China's strict COVID-19 measures were quashed over the weekend. The benchmark STOXX 600 index slid in the morning session.
L&T Realty and Singapore-listed CapitaLand India Trust Management Pte Ltd have agreed to set up a commercial platform for the development of 6 million square feet of premium office space across Mumbai, Bengaluru and Chennai.
Both the companies have entered into a non-binding term sheet for setting up of this commercial platform. The definitive agreements have not been signed.
L&T Realty is the real estate development arm of L&T, while CapitaLand India Trust Management Pte Ltd is trustee-manager of CapitaLand India Trust (CLINT).
Under this platform, L&T will build and develop office spaces, while CLINT will market the office spaces. (PTI)
Bangalore-based Ujjivan Small Finance Bank recorded strong growth in profitability during the quarter ending September 30, 2022 (Q2FY23). It garnered a PAT of ₹294.29 crore in Q2FY23, registering a growth of 45.01% as against a PAT of ₹202.94 crore in Q1FY23. The SFB witnessed a net loss of ₹273.79 crore in Q2 of the previous fiscal. Overall, Ujjivan saw strong growth across parameters in Q2FY23. On the back of impressive Q2, Ujjivan SFB shares soared to touch a new 1-year high. (Read More)
The global surge in consumer prices may be close to the high point of the current cycle but might yet prove stubborn, International Monetary Fund Managing Director Kristalina Georgieva said.
In the week that US inflation for October is likely show another outcome close to 8%, she spoke to Francine Lacqua on Bloomberg Television at the UN’s annual climate change summit in the Egyptian resort of Sharm el-Sheikh.
“I’m not going to jump ahead of data, but it is very possible that we are peaking," Georgieva said. “We now see central banks very united on fighting inflation as a top priority and rightly so. If we don’t succeed, it would de-anchor and then the foundation for growth which is price stability is dented."
The big jump in India's foreign exchange reserves in the last week of October was likely fuelled by the softer dollar and changes in the central bank's forward book, economists said on Monday.
India's forex reserves rose by $6.5 billion to $531.1 billion in the week through Oct. 28, marking their biggest weekly increase since September 2021, data released by the Reserve Bank of India on Friday showed.
"This is predominantly due to revaluation changes on the back of the decline in the dollar," Vivek Kumar, an economist at QuantEco Research, said.
"Another thing that could have led to this is the changes in RBI's forward reserves."
He estimates revaluation changes can "at best" account for $3 billion of the total change in reserves. (Reuters)
Apple Inc. is warning customers they'll have to wait longer to get its latest iPhone models after anti-virus restrictions were imposed on a contractor's factory in central China.
The company announcement Sunday gave no details but said the factory operated by Foxconn in the central city of Zhengzhou is “operating at significantly reduced capacity."
“We now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated," the company said.
“Customers will experience longer wait times to receive their new products."
Foxconn Technology Group said earlier it imposed anti-virus measures on the factory in Zhengzhou following virus outbreaks. (AP)
To complete the 500-gigawatt renewable energy capacity target by 2030, India will need additional investment of around $300 billion, the Arthur D Little (ADL) report said on 7 November
The report, titled 'Powering India's Energy Vision 2030', added that the country is on the right trajectory to meet its goal of having 50 per cent of energy needs through the renewable portfolio as 165 gigawatts (GW) generation capacity already in place. (Read More)
State Bank of India (SBIN IN) – Gaurav Jani – Research Analyst: Rating: BUY | CMP: Rs594 | TP: Rs700
Q2FY23 Result Update - Earnings growth momentum continues
Marico (MRCO IN) – Amnish Aggarwal – Head of Research: Rating: HOLD | CMP: Rs539 | TP: Rs543
Q2FY23 Result Update - Expect volumes to inch up in 2H23
Ramco Cement:- Rating: BUY | CMP: 740 | TP: ₹740
The RSI is on the rise from the oversold zone and is on the rise to show strength signaling a buy in this stock.
Crompton Greaves:- Rating: BUY | CMP: 366 | TP: ₹422
The RSI also has indicated a trend reversal from the highly oversold zone and is on the rise to show strength signaling a buy in this stock .
Safari Industries (India) (SII IN) – Jinesh Joshi – Research Analyst: Rating: BUY | CMP: Rs1,811 | TP: Rs2,457
Q2FY23 Result Update - Growth cylinder on fire!
Bank of Baroda (BOB IN) – Gaurav Jani – Research Analyst: Rating: BUY | CMP: Rs145 | TP: Rs190
Q2FY23 Result Update - Better earnings quality warrants a re-rating
Divi's Labs' net profit for the second quarter fell about 18% to ₹493.6 crore as compared to ₹606.5 crore in the year-ago quarter. Meanwhile, its revenue from operations also declined to ₹1,854 crore, down over 7% from ₹1,987 crore year-on-year (YoY).
Meanwhile, Tarsons Products shares were also trading more than 7% lower to ₹719 apiece on the BSE after reporting a weak set of results for the quarter ended September 2022.
The revenue from operations of the supplier of plastic labware products fell 6% on a year-on-year basis to ₹71 crore while its net profit during the quarter under review slipped 14% to ₹21.5 crore. (Read More)
India’s fledgling technology sector faces a key test this month as lock-up periods on $14 billion worth of shares sold in initial public offerings expire, allowing billionaire backers including Warren Buffett and Masayoshi Son to sell.
Lock-ups end in November for four consumer-focused tech stocks, which have all slumped in the past month. Included are One 97 Communications Ltd., operator of payments service Paytm, and FSN E-Commerce Ventures Ltd., owner of beauty e-retailer Nykaa. (Read More)
Oil fell after China signaled no relaxation of its Covid Zero stance as cases hit a six-month high, setting back the outlook for demand in the world’s biggest importer.
West Texas Intermediate sank toward $91 a barrel, after surging more than 5% last week as speculation about a potential pivot in China’s health strategy and a weaker dollar supported gains. Those hopes were dashed at the weekend, when officials at the National Health Commission’s disease prevention and control bureau said China will “unswervingly" adhere to current virus controls. (Bloomberg)
India Cements Ltd on Monday reported a consolidated net loss of ₹113.26 crore for the second quarter ended September 2022.
The company had posted a net profit of ₹29.75 crore during the July-September quarter of the previous fiscal, India Cements said in a regulatory filing.
Its revenue from operations was up 7.46 per cent to ₹1,327.06 crore in the second quarter of this fiscal. The same stood at ₹1,234.85 crore a year ago.
The company's total expenses were at ₹1,528.01 crore, up 27.16 per cent in the September quarter of FY23, as against ₹1,201.61 crore a year ago. (PTI)
Kaynes Technology India Limited (KTIL), an IoT solutions-enabled integrated electronics manufacturing company, will kick off its initial public offering (IPO) for public subscription this week on Thursday, November 10, 2022. The will conclude on November 14 and the bidding for anchor investors will open on November 9. The company has fixed a price band of ₹559 to ₹587 per share.
The company has cut the fresh issue size to ₹530 crore from ₹650 crore planned earlier. Besides, there would be an Offer For Sale (OFS) of up to 55.85 lakh equity shares by a promoter and an existing shareholder. The OFS comprises sale of 20.84 lakh equity shares by promoter Ramesh Kunhikannan and 35 lakh equity shares by existing shareholder Freny Firoze Irani. (Read More)
The growth momentum picked up by the manufacturing sector in the last few months is likely to be sustained for the next six-to-nine months, Quarterly Survey on Manufacturing conducted by industry body FICCI revealed.
The latest Survey reveals that after experiencing a revival of the Indian economy in the FY 2021-22, the momentum of growth continued in subsequent quarters of Q1 (April-June 2022-23) and Q2 July-Sept (2022-23) with over 61 per cent of respondents reported higher production levels in Q2 (July-September 2022-23).
This is significantly more than the percentage of respondents experiencing higher growth in Q2 of the last few years including pre-Covid years too. This assessment is also reflected in order books as 54 per cent of the respondents in Q2 (July-September 2022-23) that had a higher number of orders. (ANI)
Adani Group continues to seek strategic equity partners aligned with its long-term investment strategy, debt research firm CreditSights said in a report, flagging concern over the Group's elevated leverage.
The Group which is led by Asia's richest person Gautam Adani, is looking to expand its presence in power generation and infrastructure and ventured into cement-making operations earlier this year. (Read More)
The public issue worth ₹2,205.57 crore opened for subscription on 3rd November 2022 and it will remain open for bidders till 7th November 2022. This means today is the last date for applying to the initial public offering (IPO). On third day of subscription by 11:52 AM, the public issue has been subscribed to 1.10 times whereas its retail portion has been subscribed 0.42 times. The QIB portion of the public issue has been subscribed 1.64 times while the NII portion has been subscribed 1.94 times. As the subscription of the issue is going to close today, the grey market is also signaling about the IPO. According to market observers, shears of Global Health is available at a premium of ₹16, which is ₹3 higher than yesterday's grey market premium (GMP) of ₹13. (Read More)
After job cuts at Twitter, Facebook’s parent company Meta is planning to begin “large-scale layoffs" this week in what could be the largest reduction to date at a "major technology corporation in a year that has seen a tech-industry retrenchment," a media report said.
The Wall Street Journal reported that the layoffs at Meta, which has more than 87,000 employees, are expected to affect "many thousands of employees" and could come as soon as Wednesday.
The WSJ report said that company officials have told employees to cancel nonessential travel beginning this week.
“The planned layoffs would be the first broad head-count reductions to occur in the company’s 18-year history. While smaller on a percentage basis than the cuts at Twitter Inc. this past week, which hit about half of that company’s staff, the number of Meta employees expected to lose their jobs could be the largest to date at a major technology corporation in a year that has seen a tech-industry retrenchment," it said. (PTI)
Britannia Industries jumps 10% and Adani Enterprises around 4% in the first half of trading on Monday
Total vehicle retail sales were 28 per cent higher year-on-year during this year's over the month-long festival season.
Sales of vehicles in all categories were in the green with 2 Wheelers, 3 Wheelers, Passenger Cars, Tractors, and Commercial Vehicles growing by 26 per cent, 66 per cent, 28 per cent, 33 per cent and 28 per cent, respectively, the Federation of Automobile Dealers Associations (FADA) data released on Monday showed.
On a year-on-year basis, total vehicle retail for the month of October 2022 saw a growth of 48 per cent. All the categories closed in green with 2W, 3W, passenger vehicles, tractor, and commercial vehicles recording 51 per cent, 66 per cent, 41 per cent, 17 per cent and 25 per cent upside, respectively. (ANI)
The initial public offering (IPO) of Phantom Digital Effects Limited was launched in October 2022. the public issue was proposed for listing on NSE SME exchange and the issue listed on the SME platform on 21st October 2022. The public issue was offered at a price band of ₹91 to ₹95 per equity share.
The SME stock had a dream debut on Dalal Street as the stock listed at ₹300 per share but soon profit booking triggered but finally the stock closed at 312.70 apiece after making its intraday high of ₹315 per share. Hence, the SME IPO turned out as one of the multibagger IPOs of the year as it gave more than 200 per cent return to its bidders on its listing day. (Read More)
Public sector lender Bank of Baroda surprised the Street with a slew of positives in its September quarter earnings performance. Improvement in asset quality and net interest income aided the bank's profit, which exceeded analysts' expectations. Also, its loan growth increased by 20.6% year-on-year in Q2FY23. In reaction, shares of the bank jumped 10% on the NSE in Monday's opening trade. (Read More)
Gold prices in India rose to near one-month high in India when futures on MCX rose 0.2% about ₹51,000 per 10 gram. Silver futures however edged lower by 0.3% to ₹60350 per kg. In global markets, gold had surged nearly 3% on Friday after a sharp pullback in dollar index. However, bullion was down 0.4% at $1,672.99 per ounce in global markets today as the dollar index rose again. Spot silver was today down 1.3% at $20.56, platinum fell 1% to $951.46 and palladium lost 0.5% to $1,871.00.
"Fridays fall in US Dollar after mixed mix payrolls report that indicated slowing pace in job additions supported the yellow metal that rose to three weeks high of $1686.4/oz," said Ravindra V.Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd. (Read More)
Hero Motocorp: Weak Numbers with EBITDA Miss; Downgrade to HOLD with TP at ₹2700
Minda Corporation: Strong Operational Performance; Growth Momentum to Continue - BUY with TP at 255
TVS Motors: Decent Q2; Market Share Gain and Margin Improvement to Continue - BUY with TP at 1230
DCB Bank: On Track to Deliver RoA of 1%, Maintain BUY with TP of ₹145
The Indian rupee rose against the U.S. currency on Monday, on the back of an upbeat risk tone in Asia and the dollar's struggles.
The rupee was trading at 82.14 by 0454 GMT, compared with 82.44 in the previous session. The local unit has traded in an about 82.11 to 82.25 range.
Asian shares were higher, while currencies, except for the Chinese yuan, rose.
The U.S. jobs report supported demand for Asian assets in that the unemployment rate ticked higher. But negative for Asian currencies was the headline job additions which trumped estimates and the higher-than-expected increase in wages. (Reuters)
The initial public offering (IPO) of specialty chemical manufacturer Archean Chemical Industries Ltd will open for public subscription this week on Wednesday, November 9, 2022 and the three-day issue will conclude on Friday, November 11, 2022.
The bidding for anchor investors will open on Monday, November 7. The company has fixed a price band of ₹386 to ₹407 per share for its initial share sale. (Read More)
Apar Industries - SELL with TP at ₹1172
Gail India - BUY with TP at ₹140
State Bank of India - BUY with TP at ₹760
Sterlite Technologies - BUY with TP at 210
Bank of Baroda - BUY with TP at 180
SRF Ltd- BUY with TP at 3195
TTK Prestige - BUY with TP at ₹1096
Indian Bank - BUY with TP at ₹300
Ajanta Pharma - BUY with TP at ₹1575
India's Covid-19 case tally rose by 937 in a day to reach 4,46,61,516, while active cases declined to 14,515, according to Union Health Ministry data updated on Monday. The death toll has climbed to 5,30,509 with nine more fatalities, including seven deaths reconciled by Kerala, the data updated at 8 am stated. (Read More)
Shares of State Bank of India (SBI) surged nearly 4% to record high of ₹622 apiece on the BSE in Monday's opening deals after the lender reported a strong earnings by witnessing the highest-ever quarterly profit at ₹13,265 crore, up 74 % year-on-year (YoY), for the September quarter of FY23, buoyed by robust loan sales, higher interest income and lower provisions.
The country's biggest bank has revised its credit growth outlook to 14-16% for the current financial year driven by strong revival in capex cycle and corporates replacing overseas credit with rupee loans, chairman Dinesh Khara said, as it is seeing demand from infrastructure, renewable power, oil and marketing companies, and services sectors.. The bank had earlier projected FY23 credit growth at 11-12%.
Shares of REC Ltd started trading ex-dividend on Monday, ahead of the record date for its interim dividend of ₹5 per share for the financial year 2022-23 that it had announced last month along with its second-quarter results of the current fiscal or Q2 FY23. REC shares rose more than a per cent to ₹100 apiece on the BSE in opening deals.
China's exports fell 0.3% year-on-year in October, customs authorities said on Monday, the first such decline since mid-2020 and a steep drop from September's 5.7% increase.
Year-on-year imports were down 0.7% in October, negative for the first time since March this year, as a domestic slowdown and the threat of global recession hit international trade. (AFP)
Foreign Portfolio Investor (FPI) Indus India Fund (Mauritius) Limited has offloaded its shareholding in chemical stock GMM Pfaudler in recently ended September 2022 quarter. During July to September 2022 quarter, the Mauritius-based FPI cut down its shareholding in this Saurabh Mukherjea's little champ stock from 2.33% to 2.18%.
According to GMM Pfaudler shareholding pattern for July to September 2022 quarter, Indus India Fund (Mauritius) Limited holds 2.18% stake in this chemical company. However, in the shareholding pattern of the company for the April to June 2022 quarter, Indus India Fund (Mauritius) Limited was holding a 2.33% stake in this chemical company. (Read More)
STOCK IN FOCUS
GPIL (CMP 275)
We have BUY rating on GPIL, with a 12-month SOTP-based Target Price of Rs440.
Intraday Picks
DRREDDY (PREVIOUS CLOSE: 4,525) BUY
For today’s trade, short position can be initiated in the range of Rs4,570- 4,595 for the target of Rs4,410 with a strict stop loss of Rs4,645.
PVR (PREVIOUS CLOSE: 1,830) BUY
For today’s trade, long position can be initiated in the range of Rs1,829- 1,816 for the target of Rs1,885 with a strict stop loss of Rs1,794.
SBICARDS (PREVIOUS CLOSE: 811) BUY
For today’s trade, short position can be initiated in the range of Rs822- 827 for the target of Rs792 with a strict stop loss of Rs842.
Inox Green Energy Services, a subsidiary of Inox Wind, will launch its initial public offering (IPO) this week on Friday, November 11, 2022 and the three-day long issue will conclude on Tuesday, November 15, 2022. The company has fixed a price band of ₹61 to ₹65 per share for its initial share sale.
The 740-crore IPO of Inox Green Energy will comprise a fresh issuance of equity shares worth ₹370 crore and an offer-for-sale (OFS) of equity stocks aggregating to ₹370 crore by promoter Inox Wind. (Read More)
Dr Reddy's Laboratories has earmarked a capex of around ₹1,500 crore for FY23 with major part of it slated to go into building capacities for its biosimilar and injectable businesses, according to CFO Parag Agarwal.
The Hyderabad-based drug major also plans to utilise the capital for adding capacities to existing plants, firm up R&D activities and further invest in digitisation projects.
"The capex for the full year is likely to be around ₹1,500 crore in that range, and a lot of this capex is towards building capacity for our biosimilar business and for our injectable business," the chief financial officer said in an analyst call.
He was replying to a query about the company's capex plans for ongoing financial year. (PTI)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "The stellar Q2 numbers from the PSU banking majors SBI and BoB reinforce the ongoing bullish story in banking. Rising credit growth, improving asset quality and margins bode well for the banking sector and this has the potential to take the Bank Nifty and Nifty to new highs, driven by the bulls, who are in command now. FIIs turning buyers for the seventh consecutive day is another strong positive. In the context of problems in China, money is likely to move away from China to strong emerging markets like Taiwan and India. Concerns of high valuations have been temporarily eclipsed by positive factors. In this pricey market there is value in PSU banking stocks. Q2 results indicate that a 12% earnings growth is achievable in FY23."
BankBazaar.com, which eyes to become the most profitable co-branded credit card platform, expects to turn profitable this fiscal and plans to file for an IPO by the end of next year, founder and CEO Adhil Shetty said.
The company which started off as a loan comparing platform in 2008 is now majorly into co-branded credit card space, issuing two such cards in association with Yes Bank and RBL Bank.
In the second quarter of FY23, the company registered 85 per cent year-on-year growth in its top line, clocking a revenue of ₹170 crore. Company's credit card sales were up by 115 per cent in Q2.
"We are happy that we are growing profitably and we have delivered 85 per cent year-on-year top line growth in Q2FY23. We had annualised revenue of ₹170 crore (up by 85 per cent from a year ago) in Q2 and in August and September, both the months, we were EBITDA positive. (PTI)
Axis Securities says, “International Business Struggles; Strong Market Penetration to Provide Growth"
SIS reported strong growth in Q2FY23 with revenue at ₹2,767 Cr, registering a growth of 3.3% QoQ. Consolidated EBITDA for the quarter de-grew by 9.1% QoQ to ₹110 Cr, owing to the tepid international business. The company reported a net income of ₹66 Cr, declining 18% QoQ. Security Services in India exhibited a robust growth of 8.7% QoQ, driven by the rising demand for security guards and mandatory checkups. The company’s International Security Services declined by 3.6% QoQ and stood at ₹1,161 Cr, primarily owing to the decline from Covid-related contracts which were temporary in nature, and were only partially offset by the increase in revenues from existing customers and segments that had been hit by the pandemic. On a brighter note, the Facility Management business grew by 10.7% QoQ and stood at ₹471 Cr. Cash conversion remained high during Q2FY23 with OCF/EBITDA at 4.8%. We recommend a BUY rating on the stock and assign an 18x P/E multiple to its FY24E earnings of ₹28.4/share which gives a TP of ₹475/share, implying an upside of 15% from the CMP.
As per the shareholding pattern on BSE, Rekha Jhunjhunwala has bought 42,50,000 equity shares or 7.91% in Singer India as of September 30, 2022. This would be a new addition to Jhunjhunwalas' portfolio.
On BSE, Singer India shares are around ₹69.80 apiece, down by 0.36% on Friday last week. The company's market cap is around ₹374.94 crore.
Established in 1851, Singer India has two major businesses namely sewing products and home appliances. The products are marketed under the brand name 'Singer' and 'Merritt' with a network across PAN India. (Read More)
Coal India, BPCL, India Cements, Paytm, PB Fintech, and Aditya Birla Capital will be among the stocks in focus as they declare their September quarter earnings today. (Read More)
