Investors cheered the news of the Fed lowering its hawkish stances and will go easy on future interest rate hikes. All the Asian indices gained with Hang Seng surging 5% and Shanghai more than 2%. Tokyo also closed in the green and Europe was trading higher in the morning.
Indices closed at a 9-month high with Sensex zooming past 61,000 and Nifty crossing 18,100
Indian indices continued their strong run and closed at a 9-month high on Tuesday gaining more than 0.5%.
Sensex climbed 375 points to close above 61,000, at 61,121. Nifty crossed the 18,100 mark to close at 18,145, a gain of 133 points.
Adani Enterprises and Divi’s Lab jumped more than 6% in today’s session and topped the charts. NTPC surged 5% and Powergrid also made decent gains. Axis Bank shed more than 3% with UPL and Eicher Motors also losing ground in today’s session.
Among sectoral indices, Metal, Pharma, Healthcare and IT led the rally. Bank and Media indices remained under pressure and closed in the red.
Most of the Asian markets gained on Tuesday as investors rejoiced at the news of the US Federal Reserve slowing down the pace of its rate hikes next month.
Japanese shares ended higher on Tuesday as some companies projected strong outlooks despite Toyota Motor falling after posting worse-than-expected earnings. The Nikkei rose 0.33%, while the broader Topix gained 0.47%.
Hong Kong and China stocks jumped after rumours started circulating on social media that China was planning a reopening from strict COVID curbs in March, though there was no official confirmation of the same. The Hang Seng Index jumped more than 5% and the Shanghai Composite Index was up 2.6%.
European shares opened higher on Tuesday, as blowout earnings from BP boosted oil stocks. The pan-European STOXX 600 index jumped 1% in the morning session.
Tata Motors’ total sales up 15.5 pc to 78,335 units in October
Tata Motors on Tuesday reported a 15.49 per cent rise in total sales at 78,335 units in October 2022.
The company had sold a total of 67,829 units in the same month last year, Tata Motors said in a statement.
Total domestic sales were at 76,537 units as against 65,151 units in the year-ago month, a growth of 17 per cent, it added.
Passenger vehicle (PV) sales, including electric vehicles, in the domestic market were at 45,423 units as compared to 34,155 units in the same month last year, up 33 per cent.
Exports of PVs were down 10 per cent at 206 units from 230 units in October 2021. (PTI)
China, HK stocks rebound sharply on unverified social media posts over COVID easing
Hong Kong and China stocks jumped on Tuesday after rumours based on an unverified note circulating on social media that China was planning a reopening from strict COVID curbs in March triggered a sharp rebound following last month’s savage selling.
A Chinese foreign ministry spokesman later said he was unaware of the situation.
The Hang Seng Index jumped more than 5%, while the Hang Seng Tech Index gained nearly 8%.
China’s benchmark CSI300 Index rose 3.4%. The Shanghai Composite Index was up 2.6%. (Reuters)
Metal Index surges 2% in today’s session, almost all stocks in green
Oil giant Saudi Aramco has $42.4B profit in third quarter
Oil giant Saudi Aramco on Tuesday reported a $42.4 billion profit in the third quarter of this year, a 39% bump buoyed by the higher global energy prices that have filled the kingdom’s coffers but helped fuel inflation worldwide.
The oil firm’s profits will help fund the kingdom’s assertive Crown Prince Mohammed bin Salman’s plans for a futuristic city on the Red Sea coast, but also comes as the U.S. grows increasingly frustrated by higher prices at the pump chewing into American consumer’s wallets.
Those tensions yet again have chilled relations between Riyadh and Washington before the Nov. 8 midterm elections. (AP)
Festive demand drives up Indian state refiners gasoil sales in Oct
Indian state fuel retailers’ diesel sale in October surged from the previous month, preliminary sales data shows, indicate a pick up in industrial activity during the peak festive season.
Fuel demand in India- a proxy for oil demand in Asia’s third-largest economy- typically rises during the month long festival season as diesel-guzzling trucks hit the roads to deliver goods.
State-refiners’ average daily gasoil sales last month rose 6.2% from September and was 12% higher than a year ago, the data showed. Gasoil accounts for about two-fifth of India’s over all fuel demand. (Reuters)
PNB Q2: Net profit dips by 62.8% to ₹411.3 cr
Private lender Punjab National Bank on Tuesday reported a 62.8 per cent dip net profit to ₹411.3 crore for the September quarter. This is against a net profit of ₹1,105.2 crore in the year ago period, PNB said in the regulatory filing.
The bank net interest income (NII) grew by 30.2 per cent to ₹8,271 crore in the quarter under review from ₹6,352.8 crore a year ago.
PNB’s total income in the September quarter increased to ₹23,001.26 crore as against ₹21,262.32 in the period a year ago, PNB said in a regulatory filing. (Read More)
European Gas Declines Again as Warm Weather Postpones Heating
Natural gas prices in Europe fell further as a spell of warm weather delayed the heating season, providing some respite to regional economies on the brink of recession.
Benchmark futures dropped as much as 5.5%. Prices have declined sharply in recent weeks as a hot October allowed more gas to be pumped into already fuller than normal storage sites. Ample inflows of liquefied natural gas and reduced consumption by industries have also helped offset Russia’s supply cuts.
The mild weather is likely to extend into this month, with forecasters Maxar Technologies LLC and Marex expecting no cold spells in November. It comes as a relief for consumers worried about the cost of heating and for governments keen to ensure healthy gas stockpiles for as long as possible. (Bloomberg)
Multibagger stock to declare bonus shares after giving 250% YTD return
Shares of BLS International Services Ltd is one of the multibagger stocks of the Indian stock market. This multibagger stock has given 250 per cent return in year-to-date (YTD) time after surging from around ₹95 to ₹330 apiece levels. This dividend paying stock that traded ex-dividend in September 2022, is soon going to declare bonus shares though the multibagger stock has declared 1:1 bonus shares in May 2022. So, this will be the second occasion when this multibagger stock will declare bonus shares for its shareholders. (Read More)
Sun Pharma Q2 net profit up 11% on higher sales
Sun Pharma on Tuesday reported an over 11% rise in its consolidated net profit for Q2 FY23 at ₹2,262 crore, on higher sales in the domestic market, as compared to ₹2,047 crore year-on-year (YoY). Shares of Sun Pharma were trading nearly 2% higher at ₹1,033 apiece on the BSE in afternoon deals.
The pharma company, known for its consumer healthcare products such as Revital vitamins and pain relief medicine Volini, witnessed a nearly 14% rise in its total revenue from operations at ₹10,952 crore from ₹9,626 crore in the year ago quarter. (Read More)
Adani Enterprises lead the rally with a gain of 5%
Global Health IPO: Check GMP as issue to be launched this week
The three-day initial public offering (IPO) of Global Health Limited, which operates and manages hospitals under the Medanta brand, will open for public subscription this week on Thursday, November 3, 2022 and the initial share sale will conclude on Monday, November 7, 2022.
As per market observers, Global Health shares are available at a premium (GMP) of ₹33 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Wednesday, November 16, 2022. (Read More)
Varun Beverages beats estimates as Q2 net profit rises by 59%
Varun Beverages reported a better-than-expected third-quarter profit on Tuesday as the Pepsi bottler benefited from price increases it had implemented to protect its margins. The company’s profit rose by 59% to ₹to 381 crore as compared to ₹240 crore in the year ago quarter.
Meanwhile, its revenue from operations increased 33% to ₹3,248 crore from ₹2,440.4 crore in the corresponding quarter of the previous fiscal. Varun Beverages makes and bottles several PepsiCo Inc-branded drinks such as Mirinda, Mountain Dew, and Tropicana. (Read More)
Nykaa Q2 net profit rises over 330%; shares surge
FSN E-Commerce Ventures Ltd, which runs Nykaa, on Tuesday reported a consolidated net profit of ₹5.2 crore during the second quarter of the current fiscal (Q2 FY23), up more than 330% as compared to ₹1 crore in the year ago quarter. The company had reported a profit of ₹5 crore in the previous quarter of June 2022.
Meanwhile, the company’s revenue from operations rose over 39% to ₹1,230 crore from ₹885 crore in the corresponding quarter of the previous fiscal, whereas it was up 7% from ₹1,148.4 crore quarter-on-quarter (QoQ). (Read More)
LivFin views on RBI’s Monetary Policy Meeting expectations and impact on NBFCs
Rahul Chander, MD & CEO of LivFin (Fintech NBFC): “The Reserve Bank of India’s Monetary Policy Committee’s unscheduled meeting this week is unlikely to spring a surprise with an off-cycle rate hike, even though it comes a day after the Federal Reserve’s policy decision and as unseasonal rains that have damaged crops intensify the inflationary pressure on the Indian economy. MPC has gone for a cumulative 190 basis points of key policy rate hike since May, taking the repo rate to pre-Covid levels. The encouraging employment numbers, showing growth at the fastest pace in three years on the back of strong factory output, is another factor which will affect any decision of the RBI in increasing rates at this time. If the MPC goes for another round of rate hike, it will add to the concerns of NBFCs as they struggle to maintain profitability in an already challenging economic environment, as frequent increases in interest rates not only dents the number of loan takers but carries a serious risk of default from existing borrowers. For an NBFC the measurement of profit is the difference between the cost of borrowing, which essentially implies that these institutions have to raise funds to lend it to consumers, and the cost of credit, which means additional charges on loans”
Japanese shares end higher on positive earnings; Toyota falls
Japanese shares ended higher on Tuesday, with investors taking cues from some companies’ strong outlooks, even as shares of Toyota Motor fell after posting a worse-than-expected earnings.
The Nikkei rose 0.33% to 27,678.92, while the broader Topix gained 0.47% to 1,938.50.
“Domestic companies so far have reported mixed results – some were strong and some were weak. So there were a mixture of selloffs and buyings,” said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities.
Toyota fell 1.94% and weighed on the Nikkei after reporting a 25% drop in September quarter profit and cut its annual output target, as the automaker battles surging material costs and a persistent semiconductor shortage. (Reuters)
GST collections in October cross ₹1.5 lakh crore, second highest ever
The gross GST revenue collected in the month of October 2022 was at ₹1,51,718 crore, the second-highest monthly collection ever, the ministry of finance said today. The revenue for October 2022 is the second highest monthly collection, next only to the collection in April 2022 and it is for the second time the gross GST collection has crossed Rs. 1.50 lakh crore mark.
Giving a break-up of the October GST collections, the government said CGST figure was at ₹26,039 crore, SGST at ₹33,396 crore, IGST at ₹81,778 crore (including ₹37,297 crore collected on import of goods) and cess at ₹10,505 crore (including ₹ 825 crore collected on import of goods). (Read More)
Multibagger stock announced buyback at 60% premium after 400% rally in 2 years
Shares of SP Apparels are one of the multibagger stocks on Dalal Street. This small-cap multibagger stock is one of those stocks that have given whopping return in post Covid rally since 2020. In this period of near two years, this multibagger stock has risen from around ₹70 to ₹360 apiece levels, delivering more than 400 per cent return to its long term positional shareholders. (Read More)
Cryptoverse: Bitcoin wants to break its bond with stocks
After months of tears and tantrums, bitcoin wants to split up with stock markets.
The cryptocurrency, which has been closely correlated with tech stocks for much of its torrid 2022, is staging one of its strongest efforts yet to break away.
Its 30-day correlation with the Nasdaq slid to 0.26 last week, its level lowest since early January, where a measure of 1 indicates the two assets are moving in lock step.
The correlation, which shows the degree to which the two move in sync with each other over a 30-day period, has hovered above 0.75 for much of the year and at times has approached perfect unison – at 0.96 and 0.93 in May and September. (Reuters)
India Probing MG Motor as Scrutiny on Chinese Firms Widens
India has begun an inquiry into MG Motor India Private Ltd. over alleged financial irregularities, according to people with knowledge of the matter, deepening a scrutiny of Chinese firms operating in the country.
The probe against the local unit of the Chinese carmaker SAIC Motor Corp Ltd. has been initiated by India’s Ministry of Corporate Affairs. The scrutiny started after a detailed analysis of the company’s financial statements indicated suspicious related-party transactions, alleged tax evasion, under and over-invoicing of bills and other irregularities, the people said, asking not to be identified as the matter is not public.
The company’s top management, including directors, managing director and auditors have been summoned next month by the ministry seeking more clarification, the people said. (Bloomberg)
MG Motor India on Tuesday said it is impossible for any automobile company to be profitable in the very first year of its operations, in response to a notice from the Ministry of Corporate Affairs regarding why they have operational losses in the first year of operations 2019-2020.
In a statement the company said it has received a “notice seeking clarifications primarily on why we have operational losses basis our annual report for the first year of operations 2019-2020”. (PTI)
Noon Update: Indices continue their green run with Sensex soaring 440 points and Nifty around 140 points
Divi’s Lab and NTPC lead the stock rally, while Axis Bank and Tata Steel lag.
Bharat Electronics’ Q2 was decent; path to growth has many levers
Bharat Electronics Ltd’s commentary in the September quarter (Q2FY23) earnings call, which was held on Monday, reaffirmed the bright outlook for the company. BEL (Bharat Electronics Ltd.) has maintained revenue growth guidance of 15% in FY23 but raised the lower end of Ebitda guidance to 22-23% from 21-23% earlier. Ebitda is earnings before interest, tax, depreciation and amortization. In Q2, this measure stood at nearly 22%.
In the past 12-24 months, over 300 items have been added to the defence import embargo list through 2032. As such, BEL is a key beneficiary of indigenization. Apart from the defence sector, the company is also focusing on expanding the non-defence segment of its business. (Read More)
Oil & Gas index struggling in today’s session, Castrol India dragging the index
Castrol India on Monday reported a net profit of ₹187 crore in Q3 as against a net profit of ₹186 crore in the Q3 of the previous year.
Bharti Airtel shares slip after Q2 miss. Should you buy, sell or hold?
Shares of Bharti Airtel Ltd slipped nearly a per cent to ₹823 apiece on the BSE in Tuesday’s early trading session after the telecom operator posted an 89% year-on-year (YoY) rise in consolidated net profit for September quarter to ₹2,145 crore, but still missed analysts’ estimates, prompting the company to call for another round of industry-wide tariff increases.
“With two months left in 3QFY23 and upcoming state elections, tariff hikes are more likely to take place in 4Q. Also, network costs as well as SG&A costs are likely to rise faster amidst 5G rollout and launch. We cut our India mobile estimates by 1-8% to factor this. While Bharti’s growth outlook remains strong (17%/20% India revenue/EBITDA CAGR over FY23-25), its 10x EV/Ebitda valuation for India business prices this in. Higher/earlier than expected tariff hikes can drive positive surprises,” said global brokerage Jefferies. The brokerage house has downgraded its recommendation on Bharti Airtel shares’ rating to Hold with target price of ₹855 apiece. (Read More)
Prabhudas Lilladher recommendations on Sumitomo Chemical and Bharat Electronics
Sumitomo Chemical India (SUMICHEM IN) – Himanshu Binani – Research Analyst: Rating: BUY | CMP: Rs493 | TP: Rs610
We expect Sumitomo to post revenue/ EBITDA/PAT CAGR of 18%/21%/22% over FY22-25E (FY18-22 CAGR of 13%/29%/31%), respectively. We introduce and roll forward our valuations to FY25E. Maintain ‘BUY’ with revised TP of Rs610 (Rs510 earlier) based on 40xFY25E EPS.
Bharat Electronics (BHE IN) – Amit Anwani – Research Analyst: Rating: BUY | CMP: Rs107 | TP: Rs125
We remain positive on long term growth story of BEL given 1) its strong order backlog & order pipeline 2) recent MoU in hydrogen fuel cell, 3) diversification in newer business verticals like, medical equipment’s, hydrogen fuel cell, EV batteries etc., 4) focus on export markets and 5) government focus on product indigenization etc. We expect BEL to report revenue and PAT CAGR of 16.6%/19.1% from FY22 to FY25E. The stock is currently trading at PE of 27.3x/22.8x/19.7x FY23/24/25E. We maintain ‘BUY’ rating on stock with TP of Rs125 (same as earlier) valuing it at 23x FY25E EPS.
Divi’s Lab shines in today’s trading, gain 4%
Bajaj Auto’s total sales fall 10 pc to 3,95,238 units in October
Bajaj Auto Ltd on Tuesday reported a 10 per cent decline in total sales at 3,95,238 units in October.
The company had sold a total of 4,39,615 units in the same month last year, Bajaj Auto Ltd (BAL) said in a statement.
Total domestic sales were up 11 per cent at 2,42,917 units last month as against 2,18,565 units in October 2021, it added.
However, exports were down 31 per cent at 1,52,321 units as against 2,21,050 units in the year-ago month.
Domestic two-wheeler sales grew 4 per cent at 2,06,131 units as compared to 1,98,738 units in the same month a year ago, BAL said. (PTI)
India’s factory activity picks up speed, hiring at 33-month high
India’s factory activity expanded at a stronger pace in October as demand and output remained solid, encouraging firms to hire workers at the fastest pace in nearly three years, according to a private survey released on Tuesday.
Unlike some other economies, India has shown better resiliency to persistently-high inflation and a sinking currency against the U.S. dollar since the start of this year. (Read More)
Why this FMCG stock is Axis Securities’ top pick of the week
FMCG companies have been battling with a rural slowdown for the last few quarters, impacting their overall volume growth. However, demand is likely to recover in coming quarters as the inflation comes down due to the RBI intervention, good monsoon, increase farm income – MSP, higher crop realization, increase in remittances, and strong festive and wedding season, highlighted domestic brokerage and research firm Axis Securities.
“In Q2FY23, HUL highlighted that it expects gross margins to inch up marginally on a sequential basis as most of the key raw material prices are down. On a cautionary note, however, sharp rupee depreciation will have some impact, said while expecting margins to improve after a prolonged period. In Q2FY23, the premium portfolio (product above ₹120) grew 2x of the category growth with larger growth being seen in the detergent segment where HUL continues to drive the premiumisation agenda,” the note stated. (Read More)
Pharma index shines in today’s session, leads the sectoral indices chart
This Tata group stock has announced dividend 4 times this year and a buyback too
A long-term stock market investor did not just earn from share price appreciation. It earns from various rewards that a company announces from its reserves from time to time. These rewards can be in the form of dividend payments, bonus share issuance, rights issues, buyback of shares, etc. While some listed companies take time in announcing this long-term reward for its shareholders, some companies have made a habit of announcing this other avenue for revenue to its long-term shareholders. Tata Consultancy Services or TCS shares are one such stock on Dalal Street. In the year 2022, TCS has announced dividends on four occasions and it has announced a buyback of shares as well. (Read More)
Axis Bank stock sheds in today’s session. Bain Capital will sell a 1.24% stake in private lender Axis Bank Ltd through a block trade today
Bain Capital holds a 4.24% stake in Axis Bank as of 30 September through three entities – BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.
ICICI Direct Results Update: Key triggers for future price performance for Dwarikesh Sugar, Bharat Electronics
Dwarikesh Sugar – Key triggers for future price performance:
· Distillery revenue to grow at 44.6% CAGR in FY22-24E with 2x increase in ethanol volumes and 6% increase in distillery realisation led by higher proportion of B-heavy & sugarcane juice ethanol
· With increasing profitability & reduction in sugar inventory, the company would be able to generate cumulative | 373 crore free cash flows in the next two years. It would completely de-leverage the balance sheet
· With the continuous increase in sugar production, the ethanol blending programme can be extended beyond 20% blending with the introduction of flex fuel vehicles. This would result in sustainable growth in ethanol volumes beyond 2025-26
Bharat Electronics – Key triggers for future price performance:
· Strategy to diversify into non-defence areas, focus on increasing exports and services share would aid long-term growth and help de-risk its business
· Strong order pipeline in FY23-24E
· We expect revenue, EBITDA to grow at a CAGR of 18.5%, 20.1%, respectively, in FY22-FY24E aided by sustained margins at ~22%
· Strong balance sheet, double-digit returns ratios
PSU Bank index leads the rally, gains 3% in early trading
China’s yuan hits 15-year low after official guidance breaches key level
China’s yuan hit a near 15-year low against the dollar on Tuesday, after the central bank fixed the official guidance rate at its lowest level since the global financial crisis of 2008.
Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate at 7.2081 per dollar, the lowest since Jan. 24, 2008. That was 313 pips or 0.43% weaker than the previous fix of 7.1768.
Currency traders took the official guidance’s breach of the key 7.2 per dollar level to mean that authorities would allow further yuan weakness.
The onshore yuan opened at 7.3201 per dollar and quickly touched 7.3280, the lowest level since Dec. 26, 2007. It last traded at 7.3075 as of 0246 GMT, 25 pips weaker than the previous late session close. (Reuters)
Fusion Microfinance IPO: Latest GMP ahead of subscription opening tomorrow
The initial public offering (IPO) of microlender Fusion Microfinance, backed by global private equity major Warburg Pincus, will open for public subscription tomorrow i.e., November 2, 2022 and will conclude on Friday, November 4, 2022.
Fusion Microfinance IPO comprises fresh issuance of equity shares worth ₹600 crore and an offer of sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders. (Read More)
Tata Steel sheds at open following their quarterly report; drop 2%
Sensex crosses 61,000 at open and gain 300 points, while Nifty goes above 18,100
Birlasoft stock in focus as IT share trades ex-dividend today. Do you own?
Birlasoft shares are one of the dividend paying stocks in November 2022. The board of directors of the IT company has fixed 2nd November 2022 as record date for payment of dividend payment on ex-date basis. This means, the IT stock will trade ex-dividend today i.e. on 1st November 2022. The board of directors of the company has already declared interim dividend of ₹1.50 per equity share for the financial year 2022-23.
Birlasoft Ltd said, “We wish to inform you that the Board of Directors of the Company, at its meeting concluded today, inter alia, has approved Interim Dividend of Rs. 1.50/- per equity share (i.e. 75%) of face value of Rs. 2/- each, for the financial year 2022-23, to be paid to the members of the Company within 30 days from the declaration by the Board, as per the provisions of Companies Act, 2013, and the Rules made thereunder.” (Read More)
DCX Systems IPO: GMP, subscription status on day 2 of the issue
The Initial Public Offering (IPO) of DCX Systems, manufacturer of cables and wire harness assemblies, received 2.11 times subscription on the first day of the offer on Monday. The three-day initial public offering (IPO) of DCX Systems opened for public subscription on Monday, October 31, 2022, and will conclude on Wednesday, November 2, 2022.
The price band has been fixed at ₹197 to ₹207 per share. The has raised ₹225 crore from anchor investors days ahead of its initial share sale. DCX Systems IPO consists of a fresh issue aggregating up to ₹400 crore and an offer for sale of up to ₹100 crore. (Read More)
Sensex is flat at preopen session with Bharti Airtel, L&T, Tata Steel being in focus in today’s session
Reserve Bank to roll out first pilot of digital rupee today
The Reserve Bank of India will roll out the digital rupee for the wholesale segment on 1 November as part of its first pilot test programme to review and improve the currency’s functionality. The central bank will launch a similar test for the retail segment in closed user-groups of customers and merchants within a month, RBI said on Monday. (Read More)
Geojit Financial Services on today’s market: DIIs are likely to sell at higher levels and many retail investors might be tempted to book some profits.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “An interesting trend in the market is that FIIs and DIIs have reversed their roles: FIIs have turned buyers and DIIs have turned sellers in recent days. Yesterday’s FII buy figure of ₹4178 crore is their largest buy figure in recent months. The implication of this role reversal by FIIs is that this has triggered short covering in stocks like the HDFC twins where FIIs are major holders. This trend can take the market up further. Recent good Q2 results of large-caps like Maruti, L&T and Bharti Airtel can give fundamental support to the rally. Since Nifty is only 3% away from its all-time high, a charge to record highs cannot be ruled out. But DIIs are likely to sell at higher levels and many retail investors might be tempted to book some profits.
Globally markets are looking forward to the Fed commentary after its meeting on November 1st and 2nd. A 75 bp hike in rates is already discounted by the market. If the Fed indicates moderation in rate hikes, going forward, markets would positively respond to that.”
Reliance Securities Stock in Focus today: Ultratech Cement
STOCK IN FOCUS
UltraTech Cement (CMP 6,715)
We have our BUY rating, with a 12-month Target Price of Rs7,220.
VOLTAS (PREVIOUS CLOSE: 876) BUY
For today’s trade, long position can be initiated in the range of Rs871- 867 for the target of Rs910 with a strict stop loss of Rs854.
BAJAJFINSV (PREVIOUS CLOSE: 1,688) BUY
For today’s trade, long position can be initiated in the range of Rs1,676- 1,668 for the target of Rs1,730 with a strict stop loss of Rs1,650.
PIDILITIND (PREVIOUS CLOSE: 2,584) BUY
For today’s trade, long position can be initiated in the range of Rs2,572- 2,560 for the target of Rs2,645 with a strict stop loss of Rs2,540.
Bikaji Foods IPO: What GMP signals ahead of subscription opening date
The public issue worth ₹881.22 crore is going to hit primary markets on 3rd November and it will remain open for subscription till 7th November 2022. The promoters of the company has fixed Bikaji Foods IPO price band at ₹285 to ₹300 per equity share and one lot of the IP will comprise 50 company shares. Ahead of subscription opening, shares of Bikaji Foods International Limited are available for trade in grey market. According to market observers, shares of Bikaji Foods are available at a premium of ₹81 per share.
As per the market observers, Bikaji Foods IPO GMP (grey market premium) today is ₹81, which is praiseworthy as there are still two full days left for opening of the public issue. They said that such a high premium in grey market can be attributed to the bullish sentiments on Dalal Street as the secondary market has been closing higher for last three successive days. However, they maintained that Dalal Street sentiments are interlinked with the grey market and primary market. (Read More)
INDIA BONDS-Bond yields seen inching down tracking oil; focus on cenbank meets
Indian government bond yields are expected to trend marginally lower in early trading on Tuesday, tracking a further pullback in oil prices that could ease inflationary pressures.
Major focus, however, will remain on central bank meetings scheduled later this week.
The benchmark Indian 10-year government bond yield is likely to be in a 7.42%-7.47% band, a trader with a private bank said. The yield had ended at 7.4454% on Monday.
“We may see some recovery in yields tracking oil prices,” the trader said, adding that major moves are unlikely until the U.S. and Indian central bank meetings are through. (Reuters)
Musk floats paid Twitter verification, fires board
Billionaire Elon Musk is already floating major changes for Twitter — and faces major hurdles as he begins his first week as owner of the social-media platform.
Twitter’s new owner fired the company’s board of directors and made himself the board’s sole member, according to a company filing Monday with the Securities and Exchange Commission. Musk later said on Twitter that the new board setup is “temporary,” but he didn’t provide any details.
He’s also testing the waters on asking users to pay for verification. A venture capitalist working with Musk tweeted a poll asking how much users would be willing to pay for the blue check mark that Twitter has historically used to verify higher-profile accounts so other users know it’s really them.
Musk, whose account is verified, replied, “Interesting.” (AP)
Rupee likely to open flat; focus on yuan, Fed meeting
The Indian rupee is tipped to open little changed to the dollar on Tuesday amid more losses in the Chinese yuan and as traders await the outcome of the U.S. Federal Reserve’s policy meeting.
The rupee is expected at open around 82.76-82.82, compared with 82.7800 in the previous session. The local unit witnesses a late selloff on Monday, when it dropped from above 82.50 to near 82.80 in the last hour.
After a relatively quiet few sessions, the USD/INR pair is once again “looking to reassert” its upside momentum, a trader at a Mumbai-based bank said.
The rupee will open flat, but we reckon it will likely weaken later in the session, another trader said. They mentioned the potential for dollar outflows, most likely in the afternoon session.
The Chinese yuan’s weakest fixing since 2008 seems to have soured sentiment for most Asian currencies. The offshore Chinese yuan added to its previous day’s near 1% decline. (Reuters)
Stocks to Watch: Airtel, Axis Bank, Tata Steel, L&T, Supreme Ind, Adani Power, Capri Global, TCI Express, Shriram Properties, Glenmark Pharma
Adani Ports, Tech Mahindra, UPL, Cholamandalam Investment, LIC Housing Finance, JK Tyre, and Sun Pharma will be in focus as they declare their September quarter earnings today. (Read More)
Google pauses Play Store billing in India after CCI ruling
Android maker Google has paused its plans to enforce the Google Play billing system on Indian developers from October 31. The company announced the plan through an update to its help page today. The move comes less than a week after the Competition Commission of India (CCI) imposed two back-to-back fines on the company for flouting competition norms in the country.
On October 25, the CCI ended a more than a year-long investigation into Google, concluding that its decision to impose the Play Billing system on developers is anti-competitive. The competition regulator asked Google to allow third-party payments on its platform, and fined the company ₹936 crore for abusing its dominance in the market. (Read More)
Multibagger stock to consider stock split, bonus share after 900% YTD return
Alstone Textiles (India) shares are one of the multibagger stocks that the Indian stock market has produced in 2022. The small-cap textile stock is in news these days for hitting the upper circuit on a regular basis. The board of directors of the company has announced to consider a stock split in a 10:1 ratio. The small-cap company board has also announced to consider the issuance of bonus shares. The final decision in regard to the stock split and bonus share issue will be taken in the upcoming board meeting scheduled on 10th November 2022. (Read More)
Cryptocurrency prices today: Bitcoin, ether gain, dogecoin rallies over 9%, Shiba Inu up 6%
In cryptocurrencies, the world’s largest and most popular digital token Bitcoin’s price today was trading almost flat at $20,478. After surging to an all-time high of almost $69,000 in November last year, Bitcoin’s price has been trading in a narrow range of around $20,000 since June this year.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also surged by nearly a per cent to $1,580. Meanwhile, dogecoin price today was trading more than 9% higher at $0.12 whereas Shiba Inu was also about 6% up to $0.000012. Dogecoin has gained 100% this past week, far exceeding the advances of the world’s two largest tokens, Bitcoin and Ethereum. (Read More)
China’s Oct factory activity shrinks as COVID curbs hit output, demand – Caixin PMI
China’s factory activity weakened in October as protracted COVID-19 restrictions disrupted production and subdued demand, a private-sector survey showed on Tuesday, suggesting a weaker economic recovery in the fourth quarter.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) stood at 49.2 in October, up from 48.1 in September and slightly above analysts’ expectations for 49.0. But the figure was still below the 50-point mark that separates growth from contraction on a monthly basis.
In line with China’s official PMI, which unexpectedly fell into contraction last month, waning factory activity weighed on the fragile recovery of the world’s second-biggest economy amid a deepening property crisis and weakening demand. (Reuters)
Credit Suisse Is Not For Sale, Chairman Says
Any bargain hunters hoping to snap up Credit Suisse Group AG now that the lender’s revamp has pushed its stock down yet again may find themselves getting short shrift in Zurich.
“We are going to thrive again, so we don’t have any takeover discussions,” Credit Suisse Chairman Axel Lehmann said in an interview with Bloomberg Television in Hong Kong on Monday. “We want to stay independent.”
With its share price slumping by more than half this year, the 166-year-old institution has been vulnerable to rumors of takeover bids and concerns over its stability. Lehmann said the 4 billion Swiss franc ($4 billion) capital increase would make the lender “rock solid,” helping it to carry out a vital restructuring that radically downsizes the loss-making investment bank and shrinks its trading operations. (Bloomberg)
Airlines brace for impact as supply chain issues emerge as carriers may face shortage of parts, engines, aircraft
The winter schedule for airlines in India started on 30 October, with companies bracing for the impact of supply chain issues due to a a shortage of parts, engines and planes.
“For any industry, capacity deployment is a key parameter for its fixed cost absorption. Supply chain issues for aircraft, leading to their non-availability for flying, will lead to under absorption of capacity, impacting the earnings, given we are in the midst of the winter/festive travel season,” said Suprio Banerjee, vice president and sector head at ICRA.
There are visible challenges that Indian airlines are facing due to supply chain issues. For IndiGo, the largest airline in the country with a 58% market share, over 35 aircraft, or more than 12% of its fleet, have been grounded for at least seven days, a data analysis by Mint from Flightradar24 showed. The problem is not limited to IndiGo and is more severe for airlines such as GoFirst, which has around 8% market share and have a fleet size of 59 aircraft. (Read More)
India’s gold demand dips as inflation hits rural buyers
India’s gold consumption in the months of October to December could fall by around a quarter from a year ago as inflation depresses rural demand, the World Gold Council (WGC) said on Tuesday.
The lower purchases in the world’s second-biggest gold consumer could weigh on prices, which are trading near their lowest level in more than two years.
Falling demand for gold imports could also help to narrow India’s trade deficit and support the rupee.
Higher inflation is likely to curb rural demand, which was starting to recover from disruption caused by last year’s COVID-19-led lockdowns, Somasundaram PR, regional chief executive officer of WGC’s Indian operations, told Reuters. (Reuters)
Rupee slumps 34 paise to 82.81 against US dollar
The rupee pared its initial gains and settled 34 paise lower at 82.81 against the US dollar on Monday, tracking the strength of the American currency in the overseas market.
At the interbank foreign exchange market, the local unit opened at 82.35 and witnessed a high of 82.32 and a low of 82.82.
It finally settled at 82.81 against the American currency, registering a fall of 34 paise over its last close of 82.47.
The Indian rupee depreciated on Monday amid strength in the US dollar. However, positive domestic equities and weak crude oil prices cushioned the downside, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas (PTI)
Tata Steel Q2 results: Consolidated PAT dips 87% to ₹1,514 cr, misses estimate
Homegrown steel major Tata Steel on Monday reported a consolidated profit after tax (PAT) of ₹1,514 crore for the quarter ended September 2022 on the back of higher costs and weak operational performance amid a global economic slowdown. The PAT was lower by 87% compared to a profit of ₹11,918 crore recorded during the same quarter last year.
On a sequential basis, the PAT witnessed a decline of 80% from ₹7,764.96 crore achieved during the April – June quarter. (Read More)
Airtel net profit surges 86%, Arpu at industry high of ₹190
Bharti Airtel Ltd’s fiscal second-quarter profit rose 86% from a year earlier on subscriber additions and higher revenue per user. But the company’s earnings still missed analysts’ estimates, prompting the company to call for another round of industry-wide tariff increases.
Net profit rose to ₹2,145 crore for the September quarter from ₹1,134 crore in the year-ago period. Profit rose 33% sequentially from ₹1,607 crore in the June quarter.
Revenue, however, beat analysts’ estimates, rising over 22% to ₹34,526 crore, boosted by 4G customer additions. Sequentially, revenue rose 5.2% from ₹32,804 crore. (Read More)
Sebi bans Mehul Choksi from capital market for 10 yrs; slaps ₹5 cr fine
Sebi on Monday barred fugitive businessman Mehul Choksi from the securities markets for 10 years and imposed a fine of ₹5 crore on him for indulging in fraudulent trading in the shares of Gitanjali Gems Ltd.
He has been directed to pay the penalty within 45 days, as per the Securities and Exchange Board of India (Sebi) order.
Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than ₹14,000 crore. (Read More)
Bain Capital to sell $410 million Axis Bank stake
Bain Capital will sell a 1.24% stake in private lender Axis Bank Ltd through a block trade on Tuesday, which is expected to fetch the private equity investor $410 million, according to the deal terms seen by Mint.
Bain Capital holds a 4.24% stake in Axis Bank as of 30 September through three entities – BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.
As per the deal terms, BC Asia Investments VII will sell a 1.24% stake at a floor price of ₹888 per share, a 2% discount to the closing price of ₹906 per share on Monday on NSE. (Read More)
Wall Street ends strong month on weaker note; focus on Fed meeting
U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve’s policy meeting this week.
The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
The Dow Jones Industrial Average fell 128.85 points, or 0.39%, to 32,732.95, the S&P 500 lost 29.08 points, or 0.75%, to 3,871.98 and the Nasdaq Composite dropped 114.31 points, or 1.03%, to 10,988.15.
For the month, the Dow jumped 13.95%, the S&P climbed 7.99% and the Nasdaq advanced 3.9%.
Apple Inc lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Megacap growth names such as Amazon.com and Google-owner Alphabet which have been under pressure in the rising rate environment, were also lower, down 0.94% and 1.85%, respectively. (Reuters)
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