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PremiumInvestors switched to caution on Monday with most Asian markets dragging. Tokyo ended in the red but the Hong Kong market got a boost from after China announced support to push the property market. The Shanghai index ended flat.
Indian benchmark indices traded in the flat-to-negative territory on Monday as investors continued to remain concerned about central bankers' mood with regard to future rate hike plans.
Sensex shed 170 points to close at 61,624 points. Nifty kept swinging between the red and green territory to close almost flat with a loss of 20 points at 18,329.
Hindalco stock had a stellar day and gained almost 6% followed by Apollo Hospitals, Tata Motors and Grasim which gained more than 2% each. Dr Reddy's Lab shed around 4% and ITC and Coal India around 2.5% each.
Metal jumped 1.7% with IT and Realty indices also ending with decent gains. Media shed more than 2% and FMCG more than 1% in today's session.
Caution prevailed on Monday after a top Federal Reserve policymaker warned that the US central bank would not "soften" its fight against inflation.
Japan's Nikkei index closed lower from a two-month high as investors booked profits and market heavyweight SoftBank Group tumbled after its investment arm reported another big quarterly loss. The Nikkei share average ended 1.06% lower.
Chinese stocks got another boost as plans for a sweeping rescue package to bail out developers sent property stocks rallying. The Hang Seng China gauge opened 4.6% higher on Monday before ending the session up nearly 2%. Shanghai Composite Index pared its morning gains towards the end to close flat with a marginal loss of 0.13%.
European shares edged higher as miners rose on China demand hopes. The pan-European STOXX 600 index was trading up in the morning session after recording its biggest weekly gain in nearly eight months on Friday.
China gave embattled real-estate developers a boost Monday by allowing them access to more money held in pre-sale accounts, the biggest source of revenue for the cash-strapped builders.
China will give “quality" property developers access to as much as 30% of the pre-sale funds with letters of guarantee from banks, according to a statement posted on the banking and insurance regulator’s website. The funds are money that home buyers have paid to developers in advance of their property being built, and is generally held in an escrow account.
The economy has slowed drastically this year as the more than year-long housing slump and other factors such as the Covid Zero policy have weighed on business activity and private consumption. In the past week, the government has taken clear steps to try to reduce the economic burden of the Covid Zero policy and also rescue the property market, in a strong sign that the government is turning its attention toward shoring up the world’s second-largest economy. (Bloomberg)
Bharat Forge erased early gains and dropped by nearly 5% after the company disappointed streets in terms of margins for the quarter ending September 30, 2022 (Q2FY23) period. In the second quarter, Bharat Forge's profitability dipped on a year-on-year basis, however, revenue was in line with estimates. Also, the company's long-term debt increased in Q2. However, analysts are optimistic about Bharat Forge on a long-term basis due to the company's initiatives towards diversifying into other businesses.
On BSE, Bharat Forge shares are currently trading at ₹854.30 apiece down by ₹32.40 or 3.65% at the time of writing. After the Q2 announcement, the shares dipped by at least 4.96% to an intraday low of ₹842.75 apiece. In the early trading hours of Monday, the shares rose to an intraday high of ₹895.90 apiece --- which was slightly shy of the 52-week high of ₹896.40 apiece --- before correcting. (Read More)
London has lost its crown as Europe’s biggest stock market to Paris as economic growth concerns weigh on UK assets while China’s relaxation of Covid rules boosts French luxury shares.
The combined market capitalization of primary listings in Paris overtook that of the UK capital in US dollar terms, according to an index compiled by Bloomberg. Domestic-focused UK shares have slumped this year, while French luxury goods-makers like LVMH SE and Gucci owner Kering SA have recently been boosted by optimism over a potential easing of China’s Covid Zero policy.
Currency movements have also worked in Paris’s favor as the pound has tumbled 13% against the dollar this year, while the euro has lost only 9%. (Bloomberg)
Television broadcasters Sun TV Network Limited on Friday reported an increase of revenue by 2.5% for the quarter ended 30th September 2022 at Rs.796.43 crore as against Rs.777.04 crore for the corresponding quarter ended 30th September 2021. The total income was ₹882.54 crore as against Rs. 894.66 crore for the corresponding quarter. The profit before taxes quarter also was marginally higher by 1.23 % and the profit after taxes was higher marginally by 1.88 % compared to the corresponding quarter.
The Board of Directors of the broadcaster declared an interim dividend of Rs.3.75 per share (75.00 %) on a face value of Rs.5.00 per share.
Auto component suppliers are expected to log an 8-10 per cent growth in revenue this fiscal driven by healthy domestic original equipment manufacturers (OEMs) and pent-up demand from the aftermarket even as headwinds persist on the exports front, credit ratings agency ICRA said in a report.
For the first half of the current fiscal, the industry reported a year-on-year growth of 29 per cent, ICRA said on Monday, based on projections from 49 auto ancillaries with aggregate annual revenues of close to ₹3,00,000 crore.
The export orders have slowed down in the last few months, impacted by inflationary pressures, geopolitical tensions, and supply-chain issues. (PTI)
Singapore-based crypto exchange Crypto.com's chief executive Kris Marszalek said the firm will prove all naysayers wrong on the platform being in trouble, and that it has a robust balance sheet and took no risks.
CEO Marszalek took questions in a livestreaming YouTube address on Monday, and also said the platform always maintained reserves to match every coin customers held on its platform. Marszalek said that withdrawals from the platform are working and will continue to work, moving to reassure markets unnerved by the sudden collapse of rival FTX.com. (Read More)
HR tech company Darwinbox, may go for an Initial Public Offering (IPO) in the next three years, its co-founder Rohit Chennamaneni said today. Speaking during the virtual media meet, he said the firm is expected to achieve profitability by 2025 with Indian operations becoming profitable by next fiscal.
That's how we are planning our expansion at this point of time. And when you look at the IPO as well, I think broadly as a business, we want to be a global business serving enterprise across the world and competing with the likes of SAP Oracle and Workday," Co-founder Rohit Chennamaneni said. (Read More)
Apollo Hospitals Enterprise (APHS IN): Rating: BUY | CMP: Rs4,421 | TP: Rs5,400
Q2FY23 Result Update - Strong show across segments
Overall we estimate 19% EBITDA CAGR over FY22-25E an assign zero value to the 24/7 business. Recommend ‘BUY’ at SOTP based TP of Rs5,400 (Rs5,000 earlier) as we roll forward.
NOCIL (NOCIL IN): Rating: ACCUMULATE | CMP: Rs232 | TP: Rs275
Q2FY23 Result Update - Global uncertainty weakens near-term outlook
We revise our estimates lower for NOCIL given uncertain global demand environment and the looming risk of increasing competitive intensity from its Chinese rivals in the near term, but maintain ‘ACCUMULATE’ rating as we roll forward to FY25E and revise our TP to Rs275 (earlier Rs300) based on 18x FY25E EPS of Rs15.4.
Shares of Jindal Steel and Power Ltd. (JSPL) have been rising due to investor confidence following its September quarter (Q2) earnings performance which was decent despite a challenging environment . The stock has gained more than 7% in two trading sessions after the company announced its results on Thursday.
Q2FY23 had seen steel prices in the country trend lower as average prices of flat and long steel products contracted 17% and 4% sequentially, respectively, as per analysts. On the other hand, energy costs had continued to rise with higher coal prices. (Read More)
ICAR's research centre DRMR has planted the genetically modified (GM) mustard hybrid DMH-11 in six field trial plots for evaluation of yields, days before a petition was filed in the top court challenging biotech regulator GEAC's decision to allow the DMH-11 for "environment release".
The Genetic Engineering Appraisal Committee (GEAC), a regulatory body of the Union Ministry of Environment, Forest and Climate Change, had recommended the environmental release of the DMH-11 seed for trials, demonstrations and seed productions under the supervision of the Indian Council of Agricultural Research (ICAR) in a meeting on October 18.
Dhara Mustard Hybrid (DMH-11) is a hybrid seed variety -- developed by the Centre for Genetic Manipulation of Crop Plants at the Delhi University -- that has stirred a storm between scientists, farmers and activists over its environmental release. The anti-GM group has knocked the doors of the Supreme Court. (PTI)
The wholesale price-based inflation declined to a 19-month low of 8.39 per cent in October, on easing prices of fuel and manufactured items.
This is the first time in 19 months that WPI inflation print has come in single digit. The last was in March 2021 at 7.89 per cent.
Since April 2021, WPI inflation remained in double digits for 18 months with September print at 10.79 per cent. Inflation in October 2021 was 13.83 per cent.
"Decline in the rate of inflation in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc," the commerce and industry ministry said on Monday. (PTI)
India Resurgence Fund (IndiaRF), an India-focused investment platform promoted by Piramal Enterprises Ltd and global private equity major Bain Capital, on Monday announced an investment of ₹550 crore, or $66.5 million, in ‘Social’ brand’s Impresario Entertainment and Hospitality Pvt Ltd.
Following the transaction, IndiaRF has become the majority shareholder of Impresario and L Catterton Asia has exited its five-year old investment in the firm.
“The fresh capital will help fuel the further expansion of Impresario’s business, which also received an investment from L Catterton in 2017 and has since demonstrated resilient growth over the years despite facing challenges posed by the COVID-19 pandemic," IndiaRF said in a statement. (Read More)
Paytm's chief executive Vijay Shekhar Sharma in a letter to shareholders said that the company is on the right path to profitability and free cash flows, after its recent quarterly reports which showed strong operating leverage and reduction in EBITDA losses.
The company said its loan distribution business continued to witness accelerated growth with disbursements through Paytm's platform now at an annualised run rate of ₹37,000 crore in the month of October. The value of loans disbursed grew 387% year-on-year (YoY) to ₹3,056 crore, while the number of loans disbursed grew 161% YoY to 3.4 million loans in the month of October 2022. (Read More)
The spread between Indian state governments' bond yields and central government debt is expected to widen only in the last quarter of this fiscal year when states turn to the market to help fund their planned expenses, bankers and analysts said.
The spread between India's benchmark 7.26% 2032 bond yield and 10-year state bond yield has remained subdued over the past few months, hovering in a 30-40 basis points (bps) range.
"We could see spreads rise to 50 bps in January-March ... as supply from both (states and centre) would be higher," said Vijay Sharma, senior executive vice president at PNB Gilts.
Indian states have borrowed only 3.67 trillion Indian rupees ($45.43 billion) so far in this financial year, which is just about 70% of their planned borrowing. (Reuters)
Shares of Rama Steel Tubes Ltd are one of the multibagger stocks of Indian stock market in 2022. This multibagger stock has hit fresh high today in early morning deals. Rama Steel share price today opened upside and went on to hit new life-time high of ₹171.45 apiece levels on NSE.
This multibagger stock is one of the dividend paying stocks in 2022 on Dalal Street as it traded ex-dividend in February 2022. The stock recently traded ex-split in 1:5 ratio as well. (Read More)
Hindalco leads the Metal rally, while Media and Pharma indices drag the indices
Mukul Agarwal-backed and Nippon India Small Cap Fund-owned stock, Ion Exchange (India) Ltd has climbed to lifetime high in early morning deals on Monday. Ion Exchange share price today opened with an upside gap and went on to hit its intraday high of ₹2,470, which is now its new high on NSE. On BSE too, this Mukul Agarwal portfolio stock hit record high of ₹2466.70 in the early morning session after a spurt in volume.
This Nippon India Small Cap Fund-owned stock has been hitting a record high for the last three sessions. It hit a lifetime high on Friday and Thursday sessions as well. However, the stock has a history of giving astellar return to its shareholders. It is one of the multibagger stocks of the Indian stock market. It has delivered over 425 per cent return to its shareholders in the last five years. (Read More)
Shares of Aurobindo Pharma on Monday fell nearly 7 per cent in early trade after the company reported a 41 per cent decline in its consolidated net profit for the second quarter ended September 30, 2022.
The company's shares plunged 6.52 per cent to its 52-week low of ₹457.20 on the BSE after a weak beginning.
At the NSE, it declined 6.60 per cent to its 52-week low of ₹457.
Later, it recovered most of the early lost ground and traded nearly 2 per cent lower.
Aurobindo Pharma on Saturday reported a 41 per cent decline in its consolidated net profit at ₹409 crore for the second quarter ended September 30, 2022. (PTI)
Kalrock Partners Ltd, part of Jalan-Kalrock consortium, which owns Jet Airways, said on Monday that its promoter Florian Fritsch, is assisting in certain investigations initiated by regulatory agencies in Liechtenstein, Switzerland, and Austria. Fritsch “confirmed" that neither Kalrock Capital Partners nor Jet Airways has connection with these ongoing investigations, or the charges made thereunder, the company added.
The investigation, which is ongoing, has been initiated based on anonymous complaints filed in relation to certain businesses where Kalrock Capital’s investor Florian Fritsch is one of the financial investors in his personal capacity. (Read More)
Healthcare Global Enterprise: Outpacing the Industry Growth
HCG has outpaced the industry growth and reported a revenue CAGR of 19% and new patients’ registration CAGR of 24.6% over FY16-FY19. HCG’s ARPOB reached ₹37,000 (+3.0% Q2FY23 YoY) due to high-end works and is expected to improve further with the increase in the volume of international patients. We recommend a BUY with a rating on the stock with a target price of ₹330/share.
Karnataka Bank: We should see an upside from here on with company’s overall performance further improving in coming quarters. We recommend a BUY rating on the stock with a target price of ₹148/share, implying an upside of 10% from the CMP.
Covid-19 cases in India witnessesd a decline with the country reporting a single-day rise of 547 new infections, the lowest since April 8, 2020, according to the Union Health Ministry data updated on Monday. With this, the country's cumulative caseload has gone up to 4,46,66,924.
The count of active cases has fallen below 10,000 for the first time since April 2020, while the death toll due to the disease has climbed to 5,30,532 with one fatality being reported from Maharashtra, the data updated at 8 am showed. (Read More)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a long bullish candle with a gap up opening on the daily chart and surpassed the Jan’22 high of 18350 carrying higher high-low, indicating of extended rally in days to come. Nifty since the past few days of trading session has led the Index to breach past the falling trend line which confirms that the primary trend is up and is well placed to accelerate the upward momentum hereon, aptly supported by global cues. India VIX, which gauges market volatility, has also recorded five month’s range breakdown and is trading below 16, indicating low risk perception among market participants. Formation of higher high low in benchmark Nifty is well supported by across sector participation against such, the elevated support level for the market now stands at 17950 followed by 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 presently at 68 slightly closer to overbought situation however present setup indicates that Nifty is on the path to challenge the all-time high of 18600 in coming sessions. During the day Nifty is likely to open on a flat note and lower levels of 18200-18235 need to be utilized for initiating long position for an upside target of 18600.
Sam Bankman-Fried received numerous plaudits as he rapidly achieved superstar status as the head of cryptocurrency exchange FTX: the saviour of crypto, the newest force in Democratic politics and potentially the world’s first trillionaire.
Now the comments about the 30-year-old Bankman-Fried aren’t so kind after FTX filed for bankruptcy protection Friday, leaving his investors and customers feeling duped and many others in the crypto world fearing the repercussions. Bankman-Fried himself could face civil or criminal charges.
“Sam what have you done?," tweeted Sean Ryan Evans, host of the cryptocurrency podcast Bankless, after the bankruptcy filing. (PTI)
After sacking about 50% of Twitter's workforce, Elon Musk has reportedly laid off at least 4,400 contractual workers at the social media company. “Update: company sources tell me that yesterday Twitter eliminated ~4,400 of its ~5,500 contract employees, with cuts expected to have a significant impact on content moderation and the core infrastructure services that keep the site up and running. People inside are stunned," tweeted Platformer's Casey Newton. (Read More)
Japan's Nikkei share average fell on Monday from a two-month high hit in the previous session, as investors chose to book profits and market heavyweight SoftBank Group tumbled after its Vision Fund investment arm reported another big quarterly loss.
The Nikkei index fell 0.76% to 28,047 by the midday close, while the broader Topix dropped 0.65% to 1,964.90.
"Investors sold stocks for profit-taking after the Nikkei rose sharply in the previous session," said Shigetoshi Kamada, general manager at the research department of Tachibana Securities.
SoftBank Group tanked 12.28% to become the biggest drag on the Nikkei, after the technology start-up investor posted a heavy loss at its Vision Fund investment arm for a third consecutive quarter. (Reuters)
Shares of Life Insurance Corporation of India rose as much as 9.1% on Monday, their best intra-day percentage gain since listing in May, after the country's largest insurer reported a surge in quarterly profit on Friday.
LIC's profit after tax surged to 159.52 billion Indian rupees ($1.98 billion) in the July-September quarter, from 14.34 billion rupees a year earlier, boosted mainly by the transfer of nearly $1.8 billion from policy holders' fund to shareholders' fund. (Reuters)
Cryptocurrency prices continued to fall over the weekend with the world's largest and most popular digital token Bitcoin price today was trading nearly 5% lower at $16,103. The global crypto market cap today remained below the $1 trillion mark, as it was almost down over 5% in the last 24 hours to $845 billion, as per CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, also plunged by more than 6% to $1,191. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: "The market construct favours continuation of the rally to new record level in Nifty. The momentum in the market is evident in the 4 straight weeks of gains and FIIs turning buyers in all the last 11 trading days. FIIs are likely to continue buying since the dollar index has declined sharply to 106.6 from the recent high of around 114. DIIs are unlikely to sell big when the market momentum is so strong. Moreover, SIP inflows have crossed ₹13000 crores a month- a record. The quality of the rally has improved with the participation of high-quality large-caps like HDFC twins, RIL, Infosys and TCS. Bank Nifty at record highs can provide resilience to the market. The prospects of banks continue to improve. Nifty IT has more room to go up since fears of slowdown in tech spending need not materialise."
Shares of Bikaji Foods International are soon going to hit secondary markets as Bikaji Foods IPO listing date is highly likely on 16th November 2022. One of India's India's largest FMCG brand's public offers was subscribed to 26.67 times whereas its QIB portion was subscribed to 80.63 times of the company's offer. After the allotment of shares, bidders are eagerly waiting for Bikaji Foods IPO listing date. Meanwhile, ahead of the listing date, the grey market is dropping hints about the kind of listing the FMCG brand would have. According to market observers, shares of Bikaji Foods International are trading at a premium of ₹35 to ₹40 in the grey market today. (Read More)
The Indian rupee today extended last week's gains against the US dollar by rising to 80.51. The rupee had closed at 80.79 against the greenback on Friday, after jumping 2% in the previous week, its biggest weekly gain in four years. The rupee got a boost amid a broader weakening of the dollar after lower-than-expected US inflation reading boosted expectations that US Federal Reserve will go for smaller-sized rate hikes in future. (Read More)
Inox Green Energy Services, a subsidiary of Inox Wind, launched its initial public offering (IPO) 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 company on Thursday said that it collected ₹333 crore from anchor investors ahead of its public issue.
As per market observers, Inox Green Energy shares are commanding a premium (GMP) of ₹6 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Wednesday, November 23, 2022. (Read More)
STOCK IN FOCUS
Indus Towers (CMP 192)
In view of better business prospects, likely increase in infra spend by telecom operators, bigger opportunity from 5G roll out and attractive dividend yield of ~5-6%, we have BUY on Indus Towers with a Target Price of Rs225, valuing the stock at a P/E multiple of 10x FY24E earnings.
Intraday Picks
CIPLA (PREVIOUS CLOSE: 1121) SELL
For today’s trade, short position can be initiated in the range of ₹1135- 1145 for the target of Rs.1115 with a strict stop loss of ₹1152.
LT (PREVIOUS CLOSE: 2011) BUY
For today’s trade, long position can be initiated in the range of ₹1980- 1995 for the target of Rs.2015 with a strict stop loss of ₹1968.
PEL (PREVIOUS CLOSE: 820) BUY
For today’s trade, long position can be initiated in the range of ₹810- 815 for the target of Rs.835 with a strict stop loss of ₹800.
After the closure of the subscription, bidders are eagerly waiting for Global Health IPO or Medanta IPO listing date, which is most likely on 16th November 2022. The public issue worth ₹2,205.57 crore was subscribed 9.58 times in three days of bidding from 3rd to 7th November 2022. Meanwhile, the grey market is also dropping signals in regard to listing premium one can expect from the public issue. As per the market observers, shares of Global Health Ltd which operates the multi-speciality Medanta Hospital chain in India, are available at a premium of ₹23 in the grey market today. (Read More)
Tensions between China and the United States are pushing some manufacturer companies to talk about moving some of their supply chain away from Taiwan as well, although it’s “incremental," the head of Taiwan’s most important smartphone chip design firm told Reuters over the weekend. (Read More)
Kaynes Technology India Limited's (KTIL) initial public offering (IPO) opened for public subscription on Thursday, November 10, 2022 and will conclude today i.e., Monday, November 14. The price band for the issue is ₹559-587 per share. The company collected ₹257 crore from anchor investors ahead of its initial share sale. The IPO got subscribed 1.10 times on the second day of subscription on Friday.
As per market observers, Kaynes Tech shares are available at a premium (GMP) of ₹115 in the grey market today, higher from ₹75 in the previous session. The company's shares are expected to list on November 22, 2022. (Read More)
Collapsed cryptocurrency trading firm FTX confirmed there was "unauthorized access" to its accounts, hours after the company filed for Chapter 11 bankruptcy protection Friday.
The embattled company's new CEO John Ray III said Saturday that FTX is switching off the ability to trade or withdraw funds and taking steps to secure customers' assets, according to a tweet by FTX's general counsel Ryne Miller. FTX is also coordinating with law enforcement and regulators, the company said.
Exactly how much money is involved is unclear, but analytics firm Elliptic estimated Saturday that USD 477 million was missing from the exchange. Another $186 million was moved out of FTX's accounts, but that may have been FTX moving assets to storage, said Elliptic's co-founder and chief scientist Tom Robinson.
A debate formed on social media about whether the exchange was hacked or a company insider had stolen funds, a possibility that cryptocurrency analysts couldn't rule out.
Until recently, FTX was one of the world's largest cryptocurrency exchanges. It was already short billions of dollars when it sought bankruptcy protection Friday and its former CEO and founder, Sam Bankman-Fried, resigned. (PTI)
Bharat Forge, Godrej Industries, Abbott India, Apollo Tyres, Biocon, GMR, IRCTC, and SpiceJet will be among the stocks in focus as they declare their September quarter earnings today. (Read More)
Foreign investors have infused close to ₹19,000 crore in Indian equities so far this month, primarily due to moderating trend in the US inflation and softening of the dollar.
This came following a net outflow of just ₹8 crore last month and ₹7,624 crore in September, data with the depositories showed.
Prior to these outflows, Foreign Portfolio Investors (FPIs) were net buyers in August to the tune of ₹51,200 crore and nearly ₹5,000 crore in July. Before that, foreign investors were net sellers in Indian equities for nine months in a row which started in October last year.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that FPIs are likely to buy more in the coming days as inflation in the US is showing a moderating trend, and dollar and US bond yields are declining. (PTI)
