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PremiumCrypto meltdown and uncertain economic outlook played a role in dragging the Asian markets today. Tokyo, Shanghai and Hong Kong ended in the red while the European market is also trading lower on Thursday. All eyes on US inflation data scheduled to be released today.
Indian benchmark indices weren't immune to the negative global cues and struggled on Thursday shedding 0.7% in the process.
Nifty went below 18,000 intraday but managed to stay above it at the end and closed at 18,028, an overall drop of 129 points. Sensex, meanwhile, closed at 60,613, a loss of 420 points.
All the sectoral indices ended in red but Auto was among the biggest laggards despite Hero MotoCorp shining. PSU Bank and Consumer Durables indices were other prominent draggers.
As already mentioned, Hero MotoCorp shined as it ended with a gain of more than 2%. Tata Motors and M&M were among the laggards and played a role in dragging the Auto index. Axis Bank and Bajaj Finserv also featured among the biggest droppers.
Asian markets dropped on Thursday as the impact of US midterm results on inflation remained uncertain. Moreover, investors are also keenly waiting for the inflation data from the US, scheduled to be released later today.
Japanese shares fell as heavyweights Honda Motor and Sumitomo Rubber dropped on disappointing forecasts. The Nikkei lost 0.98% to close at 27,446.10, while the broader Topix fell 0.66% to 1,936.66.
Chinese stocks dropped as the nation increased Covid restrictions in some of its biggest cities, dampening hopes of a reopening that triggered a rally earlier this month.
The Hang Seng China Enterprises Index slid 2.1% Thursday taking its three-day drop to almost 4%. Hang Seng index slid by 1.7% and Shanghai Composite Index dropped 0.39%.
Europe also dropped in the morning session. London, Paris, and Frankfurt all opened on Thursday in the red continuing the slide in European markets.
Power Finance Corporation (PFC) on Thursday posted its highest-ever quarterly profit after tax of ₹5,229.33 crore for the September quarter 2022-23 mainly due to higher revenues.
The consolidated profit is 4 per cent higher as compared to the year-ago period when it logged a profit of ₹5,023.42 crore, it said in a BSE filing.
Total income rose to ₹19,344.39 crore from ₹19,282.60 crore in the same period a year ago.
The board in its meeting on Thursday also approved a second interim dividend of ₹3 per share of ₹10 each for 2022-23. (PTI)
Makers of fast moving consumer goods continue to report a decline in rural volumes, reflecting the impact that high inflation has on how rural households spend on basics such as soaps and packaged foods.
On Thursday, market researcher NielsenIQ said that rural centres recorded a 3.6% decline volumes in the September quarter. This compares to a 2.4% decline reported in June quarter volumes. Rural volumes have remained in the negative territory for the fifth straight quarter, according to historical data shared by the researcher. (Read More)
DCX Systems Ltd's shares are going to hit secondary markets soon. As per the information available on the BSE website, the equity shares of DCX Systems Limited shall be listed and admitted to dealings on the Exchange in due course. As per the tentative schedule, the DCX Systems IPO listing date is likely on Friday, 11th November 2022.
Ahead of DCX Systems share price listing, the grey market has gone highly bullish on the public issue, and stock markets also predict a strong listing premium from the public offer. They said that in the bull case DCX share price may open above ₹300 apiece whereas in the bear case, it may open at around ₹275 per share level, expecting a 35% to 45% listing premium from the public issue. (Read More)
Financial services platform KFin Technologies has received capital markets regulator Securities and Exchange Board of India's (SEBI) approval to raise ₹2,400 crore through an initial public offering (IPO), sources told news agency PTI on Thursday. The company had filed preliminary IPO papers in March this year.
The IPO will be a pure offer-for-sale (OFS) of up to ₹2,400 crore by its existing promoters General Atlantic Singapore Fund Pte Ltd, which holds a 74.94% stake in the company. The company will not receive any proceeds from the offer as all of it will go to the promoter selling shareholder. (Read More)
A panel set up by India’s capital market regulator wants exchanges, clearing houses and depositories to revamp their compliance and risk management structures to minimize governance lapses.
A committee headed by G. Mahalingam, a former central banker and a ex- whole time member at the Securities and Exchange Board of India, recommended market infrastructure institutions (MII) should separate functions into three broad categories; critical operations; regulatory, compliance and risk management; and other functions such as business development. (Read More)
While announcing its second quarter earnings for the current fiscal or Q2 FY23, Balrampur Chini said that its board also approved the buyback of equity shares of the company worth ₹145.4 crore at ₹360 per share, which is at a premium over the current market price, through the open market route. Shares of Balrampur Chini were trading about 0.4% lower at ₹327 apiece on the BSE in Thursday's afternoon deals.
The maximum buyback size represents 5.44 % and 5.42 % of the ag·gregate of the total paid-up equity capital and free reserves of the Company based on the audited standalone and consolidated financial statements of the Company, respectively, for last financial year ended on 31st March, 2022, it added. (Read More)
Global steel giant ArcelorMittal on Thursday posted over a 78 per cent fall in its net income to USD 993 million for the September quarter, mainly due to low demand and higher energy costs.
The company follows January-December fiscal year.
"ArcelorMittal recorded a net income for 3Q 2022 of USD 993 million as compared to a net income for 2Q 2022 of USD 3,923 million, and a net income of USD 4,621 million for 3Q 2021.
"Sales in July-September also fell 6 per cent to USD 19 billion, USD 20.2 billion in the year-ago period, impacted primarily due to lower steel shipments," the company said. (PTI)
Small-cap stock is one of the multibagger penny stocks that Indian stock market has produced in last few years. However, the stock has remained under profit-booking spree in one and half months, nosediving from around ₹104.85 apiece levels (52-week high of record high) to ₹53 apiece levels, losing near 50 per cent in this time. But, despite this base building mode, this SME company's share price has surged from around ₹10 to ₹53 apiece levels, delivering more than 400 per cent return to its shareholders in last two years. (Read More)
State-owned Indian Medicines Pharmaceutical Corporation has paid a dividend of ₹10.13 crore to its stakeholders-- Ministry of Ayush and the Uttarakhand government, the company said.
A dividend of ₹9.93 crore was handed over to Ayush minister Sarbananda Sonowal.
The company manufactures 656 classical ayurvedic, 332 unani and 71 proprietary ayurvedic medicines for various diseases. It supplies ayurveda and unani medicines to all states under National Ayush Mission (NAM) and 6,000 centres of Jan Aushadhi Kendras. (Read More)
Engineering solutions provider AXISCADES Technologies has posted a multifold jump in its consolidated net profit at ₹21.08 crore during the quarter ended September 30, helped by increase in revenues.
It had clocked ₹2.77 crore net profit in the July-September period of preceding 2021-22 fiscal, the company said in a statement on Thursday.
The company's total income also rose to around ₹200 crore, from ₹138.84 crore in the year-ago quarter.
"We are happy to consistently raise the bar with our performance in FY23. Our focus remains on generating growth while also driving profitability," said David Bradley, Chairman of AXISCADES. (PTI)
Stocks of Indian lenders have rallied this year to touch a record high on Wednesday and analysts believe the party is likely to continue as banks issued robust earnings reports for the latest quarter.
The Nifty public sector bank index has jumped about 50% so far this year and the bank index has risen roughly 17%, handily outperforming the benchmark Nifty 50 index's approximately 4% gain.
This comes at a time when credit growth is at a multi-year high and bad loans across lenders have reduced significantly. (Read More)
Aurobindo Pharma said the company has learnt about arrest of P Sarath Chandra Reddy. As per BSE, P Sarath Chandra Reddy is the Executive Director of Aurobindo Pharma. “The Company learnt that P. Sarath Chandra Reddy, Whole Time Director / Promoter Group of the Company has been arrested by Enforcement Directorate. The Company is in the process of ascertaining further details and will do further disclosures as appropriate," Aurobindo Pharma said in a regulatory filing.
Shares of Aurobindo Pharma tumbled over 6 per cent to a low of ₹508.50 on the BSE in Thursday's intra-day trade following reports of arrest of its director Sarath Reddy. (Read More)
Apollo Tubes: Destocking Dents EBITDA/t, Growth Levers Still Intact; Maintain BUY; TP ₹1200
Aptus Value Housing: Robust Growth Momentum Continues, Asset Quality Stress To Ease! BUY; TP ₹370
Welspun: Exports struggle, Green shoots in Domestic Business; Maintain SELL; TP ₹66
Westlife Development: Resilient Performance amidst Challenging Environment; BUY; TP ₹930
Keystone Realtors, which sells properties under the brand 'Rustomjee', has fixed a price band of ₹514-541 a share for its ₹635-crore initial public offering (IPO). The Mumbai-based real estate developer, Keystone Realty will be launching its issue next week on Monday, November 14, 2022 and investors will be allowed to subscribe till Wednesday, November 16. The company will offer equity shares to anchor investors on Friday, November 11.
According to the Red Herring Prospectus (RHP), the Mumbai-based company now plans to raise ₹635 crore. The size of the IPO has been reduced from ₹850 crore earlier. Keystone Realtors IPO consists of a fresh issue of equity shares aggregating up to ₹560 crore and an Offer-For-Sale (OFS) worth ₹75 crore by promoters. Promoters Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta will be participating in the offer for sale. (Read More)
Shares of FSN E-Commerce Ventures Ltd, which runs online fashion marketplace Nykaa, started trading ex-bonus on Thursday, a day ahead of its record date for the bonus issue of equity shares in the ratio of 1:5. Nykaa shares were trading nearly 3% lower at ₹175 apiece on the BSE in early deals. The stock was also under pressure due to the 10 November expiry of the one-year lock-in period for its pre-IPO shareholders.
Last month, Nykaa announced that its board approved the issuance of bonus equity shares of the company in the ratio of 1:5 i.e., the company will issue a bonus of 5 shares for every 1 share held as of the record date. The board of directors of the company later revised the record date for its bonus issue to Friday, November 11, 2022, from November 03 which was fixed earlier. (Read More)
The Godrej & Boyce Manufacturing Co Ltd on Thursday submitted to the Bombay High Court that the proceedings of acquisition of its land in Mumbai initiated by the Maharashtra government for the Ahmedabad-Mumbai bullet train project were "illegal and bad in law". The company also refuted allegations levelled against it by the state government and the National High Speed Rail Corporation Ltd (NHSRCL) that it was causing unnecessary hurdles and impediment in the land acquisition process and was hence delaying the project. It said the final compensation amount of ₹264 crore was a fraction of the initial ₹572 crore offered to the company for the acquisition of the land. (PTI)
Foreign investors are unlikely to enter the Indian government debt market, despite attractive valuations, deterred by near-term headwinds, including a depreciating rupee and high hedging costs.
India's 10-year benchmark bond has largely traded between 7.40%-7.50% for more than a month now, comparable to the highest-yielding debt in the Asian emerging markets of Indonesia and the Philippines.
"The yield is attractive, but we don't have high conviction in the currency levels," said Jim Veneau, head of fixed income, Asia at AXA Investment Managers.
"If we feel that the rupee is stable, or would be volatile within a band, then we could say it's worth it for us to buy Indian bonds and leave them unhedged. But right now, it's not." (Reuters)
Allcargo Logistics has reported a 13 per cent fall in consolidated Profit After Tax (PAT) at ₹230 crore for the quarter ended September 30, 2022.
The company's consolidated PAT in the year-ago period was ₹263 crore, as per a regulatory filing.
The income from operations rose 6.5 per cent to ₹5,300 crore in the reporting quarter as against ₹4,978 crore in the second quarter of FY22, as per the filing.
Earnings before income, taxes, depreciation and amortisation (EBITDA) during the quarter stood at ₹450 crore.
"We have posted the highest-ever Q2 revenue and EBITDA and also the highest margin ever for any quarter, this time," said Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide and Gati Ltd. (PTI)
The Indian rupee declined against the U.S. currency on Thursday, after a three-day rally, in the wake of a broad fall in Asian currencies and position adjustments ahead of the U.S. inflation data.
The rupee was trading at 81.5650 per U.S. dollar by 0504 GMT, compared with 81.4350 in the previous session.
Asian currencies and shares were mostly lower ahead of the data that will have a significant influence on what the U.S. Federal Reserve is likely to do at its next policy meeting in December.
The Fed is widely expected to raise rates once again, but there is uncertainty on whether it will opt for a 50 or a 75 basis points rate hike. Fed fund futures are leaning to a 50 bps hike by a very small margin. (Reuters)
Share price of engineering company Elecon Engineering hit a new high of ₹434 yesterday as shares surged over 3%.
In the past one year, the engineering company has delivered multibagger returns. If you’re wondering why the stock continues to rally, we have the answer.
One reason the stock has gained in recent days is because seasoned investor Vijay Kedia has increased his stake in the company in the most recent September 2022 quarter.
According to the latest shareholding pattern, Kedia holds 2,175,000 shares or 1.94% stake in Elecon Engineering. In the previous quarter, he held 2,075,000 or 1.85% stake, implying an addition of 100,000 shares or 0.09% stake. (Read More)
Centrum Broking says, “DLPL reported Q2FY23 results in-line with our expectation, with overall sales grew by 7% YoY and 6% QoQ to Rs5.4bn (Ex Covid sales grew by 14.8% YoY). Gross margins for the quarter stood stable at 78.2%. Lower employee cost and better test mix resulted impressive margin expansion by 357bps YoY at 26.9% (down 145bps QoQ). PAT adj. for the notional depreciation and exceptional expenses of Rs140mn came at Rs856 down by 10% YoY and up 49% QoQ. Although, near term challenges persists for DLPL as the core business recovery remains slower, but despite slowdown in Suburban sales margins are impressive. DLPL’s focus on going deeper into markets and better realization from Suburban should prove to be worthwhile in the long run. We maintain recommend SELL rating on the stock, with a revised target price of Rs2,150. Our target price is DCF derived with a terminal growth of ~5%."
The Specified Undertaking of the Unit Trust of India (SUUTI), under the Central Government, will sell up to 1.55% stake or 4.65 crore shares in Axis Bank via an offer for sale (OFS). Around 4.65 crore shares of Axis Bank will go on the block on 10 and 11 November, at a floor price of ₹830.63 per share.
Tata Power subsidiary Tata Power Renewable Energy has received the 'Letter of Award' (LoA) from Maharashtra State Electricity Distribution Corporation Limited (MSEDCL) to set up a 150 MW solar project in Solapur.
Tata Power said in a statement on Wednesday the project will be commissioned within 18 months from the agreement execution date.
Ashish Khanna, the CEO, of Tata Power Renewable Energy Limited, said: "We feel honoured to receive the LoA from MSEDCL for the 150MW solar project. The award is in line with our commitment to creating a sustainable ecosystem for transitioning towards a greener future and affirms our potential to deliver world-class solar projects."
With this, the total renewables capacity of Tata Power's arm reaches 5,786 MW with an installed capacity of 3,877 MW (Solar - 2,949 MW and Wind - 928 MW) and 1,909 MW under various stages of implementation. (ANI)
India logged 1,016 new coronavirus infections taking the total tally of Covid-19 cases to 4,46,63,968, while the active cases dipped to 13,187, according to the Union Health Ministry data updated on Thursday.
The death toll climbed to 5,30,514 with three new fatalities -- two in Maharashtra and one in Rajasthan --being reported in a span of 24 hours, the data updated at 8 am stated.
The active cases comprise 0.03 per cent of the total infections, while the national Covid-19 recovery rate increased to 98.78 per cent, according to the ministry website. (Read More)
Japanese shares fell, tracking a weak finish on Wall Street overnight, led by rubber makers, with Honda Motor and other companies dropping after disappointing outlook.
The Nikkei lost 1.17% to 27,391.00 by the midday break, while the broader Topix fell 0.86% to 1,932.74.
"Wall Street's decline overnight affected the Japanese market to a certain extent but investors sold shares as they were disappointed by companies which reported worse-than-expected outlook," said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities.
Honda Motor slipped 5.16%, as the automaker raised its full-year operating profit outlook but the new forecast missed an average forecast by 24 analysts, even as the automaker raised outlook. (Reuters)
The initial public offering (IPO) of Bikaji Foods International closed on Monday, November 7, 2022 and now all eyes are on the finalization of basis of share allotment of Bikaji Foods IPO is expected to take place this week on Friday, November 11, 2022. The issue, with a price band of ₹285-300 a share, was open for public subscription on November 3, 2022.
As per market observers, Bikaji Foods shares are commanding a premium (GMP) of ₹38 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on Wednesday, November 16, 2022. (Read More)
Yes Securities says BUY for all these stocks:
Gulf Oil Lubricants India: Target Price ₹630
Weaker INR & higher base oil impacts margins
J Kumar Infraprojects: Target Price ₹388
Strong execution with stellar margins
NCC Ltd: Target Price ₹100
Strong growth momentum to continue
The Ramco Cements: Target Price ₹956
Mixed bag performance; Cost dragged margins
Tata Motors: Target Price Rs 534
No major supply issues foreseen in JLR ahead
Aptus Value Housing Finance: Target Price ₹390
Sturdy performance
US Secretary of Commerce Gina Raimondo and Commerce and Industry Minister Piyush Goyal have officially launched the US-India CEO Forum to bring together top-level business executives and discuss ways to strengthen economic and commercial ties between the two countries.
They were joined by Forum’s Private Sector Co-Chairs James Taiclet (Chairman, President, and CEO, Lockheed Martin Corporation) and Natarajan Chandrasekaran (Chairman, Tata Sons), as well as other members of the US and Indian CEO sections, the US Department of Commerce said in a statement on Wednesday.
During the meeting, Raimondo and Goyal shared their priorities for the bilateral relationship with the members. (PTI)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a bearish candle on the daily chart following and indecisive Doji candle on Monday, indicating of selling pressure emerging at higher level and signifying a rise in of a topping out situation, however further confirmation in the form of decisive close below the recent swing low and the rising trendline support for the past one month at 17950 is required. However, on the medium-term perspective the primary trend has resumed an upward momentum at the breakout from 12 months falling trend line hence a couple of days of breather might not distort the present setup as Nifty is on the path to challenge the all-time high of 18600 in coming months. Elevated support base for the market is at 17500 as it happens to be the 50 days EMA and the breakout point from the 12 months falling trend line. The momentum indicator RSI (relative strength index) is still above the 60-level mark though dipped a bit which raises a concern. During the day Nifty is likely to open on a negative note due to negative global cues hence one should show patience in the market and wait for Index to hold the crucial support level of 17950.
Cryptocurrency prices today remained under pressure after crypto exchange Binance said it was pulling out of a deal to purchase failing rival FTX Trading. Binance confirmed earlier rumors and news reports that it was ready to back out of the FTX deal, struck between the CEOs of the two exchanges on Tuesday. The deal was pending Binance's due diligence on FTX's balance sheet.
The world's largest and most popular digital token Bitcoin's price today was trading more than 10% lower at $16,287, after plunging to $15,800 level, its lowest level since November 2020. On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, also tumbled by more than 10% to $1,166. (Read More)
Automobile major Tata Motors on Wednesday reported a consolidated net loss of ₹944.61 crore for the second quarter ending September (Q2FY23). The company had posted a net loss of ₹4,441.57 crore in the year-ago period (Q2FY22) and ₹5,006.60 crore in the previous June quarter (Q1FY23), respectively. The homegrown auto major's consolidated revenue jumped 29.7% to ₹79,611.37 crore as against ₹61,378.82 crore from the year-ago period.
The Indian rupee is expected to decline against the dollar on Thursday ahead of the crucial U.S. inflation data that will help traders assess the size of the Federal Reserve's next rate hike.
The rupee is likely to open at 81.55-81.60, compared with 81.4350 in the previous session.
The local unit reached an about six-week high of 81.21 on Wednesday, before slipping in the last hour of trade on likely dollar buying by a public sector company, according to traders.
"The late rally on the dollar yesterday has slightly deflated the rupee's upside momentum," a dealer at a Mumbai-based bank said. (Reuters)
The initial public offer (IPO) opened for subscription on 9th November 2022 and the public issue worth ₹1,960.01 crore received tepid response from investors. As per the Five Star Business Finance IPO subscription status, after day one of bidding, the public offer has been subscribed 0.02 times whereas its retail portion has been subscribed 0.03 times.
According to market observers, Five Star Business Finance IPO grey market premium (GMP) today is ₹13, which is ₹3 higher from its Wednesday close of ₹10 per equity share. (Read More)
STOCK IN FOCUS
Hero MotoCorp (CMP 2,652)
In view of likely rural revival, focus on premium segment, HMCL’s market leadership position to capitalize on the demand recovery and attractive valuation, we have BUY on HMCL with a 1-Year Target Price of Rs3,125.
Intraday Picks
APOLLOTYRE (PREVIOUS CLOSE: 296) SELL
For today’s trade, short position can be initiated in the range of ₹300- 302 for the target of Rs.290 with a strict stop loss of ₹305.
BPCL (PREVIOUS CLOSE: 307) BUY
For today’s trade, long position can be initiated in the range of ₹302- 305 for the target of Rs.315 with a strict stop loss of ₹299.
CIPLA (PREVIOUS CLOSE: 1129) SELL
For today’s trade, short position can be initiated in the range of ₹1135-1145 for the target of Rs.1110 with a strict stop loss of ₹1155.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "The market is delicately poised awaiting the crucial US inflation data expected today. A lower than expected CPI number will be a trigger for a rally in markets globally. Conversely, if the inflation print is higher than expectations that can trigger a renewed risk-off in markets. So investors should watch out for this crucial data.
An important event unfolding in the market now is the ending of the lock-in period of some new-age tech companies. Some of the initial investors in these famous start-ups, who invested early at low prices, may choose to exit. The consequent high volatility can provide opportunities for long-term investors. Even though it is difficult to value many of these stocks, they have a long runway of growth and the successful ones will turn out to be big wealth creators. Watch out for this opportunity."
Life Insurance Corporation of India (LIC) on Wednesday said its shareholding in Divis Laboratories has crossed 5 per cent as it has purchased additional shares for ₹35.82 crore.
LIC said its shareholding in Divis Laboratories has increased from 4.992 per cent to 5.032 per cent as the number of shares held by it in the company rose from 1,32,54,663 to 1,33,60,663.
Holding in the company crossed the 5 per cent mark on November 7, 2022. The acquisition of shares was done at an average price of ₹3,379.01, LIC said in a regulatory filing.
As a regulatory disclosure norm, listed companies are required to inform the stock exchanges upon change in shareholding to the tune of 5 per cent and above. (PTI)
The overall retail sales of electric vehicles (EVs), including passenger vehicles, in the country surged nearly 185 per cent year-on-year to 1,11,971 units in October, automobile dealers' body FADA said on Wednesday.
EV sales stood at 39,329 units in October 2021.
The total passenger EV sales rose 178 per cent to 3,745 units in October 2022 as against 1,346 PEVs retailed in the same month a year ago.
Electric commercial vehicle sales grew 125.64 per cent to 274 units, as per the data released by the Federation of Automobile Dealers Association of India. (PTI)
Adani Green, Reliance Power, Zomato Jindal Steel and Power, Apollo Hospitals, Bata India, Eicher Motors, Indian Hotels Company, and Sail will be among the stocks in focus as they declare their September quarter earnings today. (Read More)
After finalisation of share allocation, bidders are eagerly waiting for the share listing date, which is most likely on 11th November 2022. After whopping 69.79 times subscription, market observers are highly bullish on the public issue worth ₹500 crore. In fact grey market is also signaling strong listing of DCX Systems shares. According to market observers, shares of DCX Systems Ltd is available at a premium of ₹90 per equity share in grey market today. (Read More)
The rupee appreciated by 45 paise to close at 81.47 against the US dollar on Wednesday amid fall in crude oil prices, dollar weakness and sustained foreign fund inflows.
At the interbank foreign exchange market, the local unit opened at 81.43, and witnessed an intra-day high of ₹81.23 and low of ₹81.62 during the session.
The local unit finally settled at 81.47 against the American currency, registering a rise of 45 paise over its previous close.
On Monday, the rupee had settled at 81.92 against the US dollar. The forex market was closed on Tuesday on account of 'Gurunanak Jayanti'. (PTI)
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