Ajit Mishra, VP - Research, Religare Broking:
Markets ended marginally higher in a volatile session, taking a breather after the recent rebound. After the initial uptick, Nifty witnessed a gradual decline as participants preferred to book some profits off the table and it finally settled at 17,512.25 levels.
Most sectors traded in line with the move and ended flat to marginal in the green. The broader indices too witnessed a similar trend.
Indications are pointing towards some consolidation in Nifty and it would be healthy. Meanwhile, the performance of the global indices, especially the US, will remain on the radar. Since all sectors are contributing to the move, the focus should be more on stock selection, keeping in mind the prevailing earnings season.
Om Mehra, Technical Analyst at Choice Broking:
Dalal Street witnessed slight nervousness after three consecutive sessions, however index managed to close in green. Markets factored in rate hike and moved forward nevertheless the market remained volatile before weekly expiry.
Nifty has been trading within the range of 50 and 61.8 percent of Fibonacci retrenchment; precisely closing above 17610 would be important for the next rally and if 17400 is breached 17260 would be acting as strong support for coming days.
Open Interest (OI) Data indicates, on the call side the highest OI witnessed at 17800 strike prices while on the put side, the highest OI was at 17400 followed by 17300 strike price. On the other hand, Bank Nifty has support at 39800 levels while resistance is placed at 40800.
Significant degree of call writing has been seen in the Bank Nifty Index at 41000 level as well. Rupee slides to yet another historic low of 83.04 mark against the dollar. The India VIX, indicates no widespread concern as long as it remains below 20 levels.
Over the years, the Indian market has outperformed the global markets, supporting the idea that if foreign investors want to achieve world-beating returns, they cannot afford to ignore India.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities:
The Bank Nifty index faces some selling pressure at the higher levels and failed to close above the level of 40,500. The options data indicates the resistance at 40,500 where the highest open interests are built up on the call side.
The index once closes above 40,500 will witness a further up move towards 41,000-41,500 levels. The index remains in a buy-on-dip mode with strong support at the 40,000-39,800 zone.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
As cautious mood prevailed in global markets, indices back home ended with steady gains. While broader market was mixed, investors are mostly engaged in selective buying.
Technically, the Nifty has formed a small bearish candle on daily charts. However, the short term texture of the market is still positive.
We are of the view that 17,400 would be the sacrosanct support zone for the index. If the index trades above the same, it could move up to 17,600-17,700 in the near future. On the flip side, below 17,400 uptrend would be vulnerable.
Vinod Nair, Head of Research at Geojit Financial Services.
European markets interrupted their winning run after a 40-year high CPI in the UK. However, the strong US market due to healthy corporate result announcements is helping the domestic market to sustain the positive trend.
Declining oil prices because of increased US supply and global economic slowdown are improving the sentiment for India
S Hariharan, Head Institutional Equity Sales, Emkay Global Financial Services
Domestic institutions have been strong buyers in the market over the last week, as 2QFY23 results have come in line or stronger than expected, thus far. 5 out of 6 Nifty companies and 12 out of 20 BSE200 companies which have reported thus far have surprised positively.
With a quarter of relatively softer commodity prices, we expect the earnings season to be relatively strong going ahead as well. However, developments in global bond markets have been more challenging and the macro environment continues to remain clouded by second order impact of higher interest rates as well as continuing strong inflation prints.
While seasonality favours a strong month for global equity markets, we continue to believe that upsides for Indian markets may remain capped due to adverse valuation differential relative to EM peers and hence, muted foreign flows. We prefer Banking, Autos and Consumer discretionary sectors over cyclical.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
Monthly support for Nifty50 remains lower at 16580. Short term momentum remains positive – sentiment will further improve if broader participation is seen from the midcap space. Volatility expected to remain high as global markets continue to remain in a corrective phase.
Some option pointers:
• Monthly setup continues to remain positive
• Momentum remains positive while Sentiment lags – broader participation will help
• FII and PRO have witnessed positive bias positioning in index options segment
• For Nifty, maximum OI buildup seen at 17500 Put and 17600 Call Option. For Bank-Nifty, maximum OI buildup is seen at 40500 put and 40000 call options
• For the expiry day, Expect Nifty to trade with support of 17300-17400 levels
Market Close:
Benchmark indices ended higher for the fourth straight session on October 19 with Nifty finishing above 17,500.
At Close, the Sensex was up 146.59 points or 0.25% at 59,107.19, and the Nifty wa up 25.30 points or 0.14% at 17512.30. About 1592 shares have advanced, 1724 shares declined, and 149 shares are unchanged.
HDFC, Nestle India, ITC, Reliance Industries and Axis Bank were among the top Nifty gainers. NTPC, JSW Steel, SBI, Bajaj Finserv and Coal India were the top losers.
Among sectors, metals and power down 1 percent each, while FMCG and Realty indices ended in the green.
The BSE midcap and smallcap indices ended on flat note.
Rupee Close:
Indian rupee ended at fresh record closing low at 83.02 per dollar against previous close of 82.36.
Bharat Bond ETFs cross Rs 50,000 crore AUM mark
Bharat Bond Exchange Traded Funds, a central government initiative, have crossed the Rs 50,000 crore asset under management mark in just two-and-a-half years, Edelweiss Mutual Fund said on Wednesday.
The fund house manages Bharat Bond Exchange Traded Funds (ETFs).
The overall passive debt category has crossed Rs 1.15 lakh crore mark at the industry level this growth was kickstarted by the launch of the first tranche of the Bharat Bond ETF in December 2019, according to a statement.
Prabhudas Lilladher View on Nestle India
Although we expect Nestle to gain from lower costs of Palm oil while firm prices of food grains, coffee and milk might prevent a sharp uptick in margins in near term.
We factor in EBIDTA margin decline of 170bps in CY22 and a gradual recovery of 90bps over coming couple of years.
We estimate 11.2% PAT CAGR over CY21-24. We expect slow returns given near term margin pressure and rich valuations of 66.1x CY23 EPS.
Maintain Accumulate with a DCF based Target Price of Rs 20,111 (Rs 20,178 earlier
Motilal Oswal View on Can Fin Home
We model in a NII/PPOP/PAT CAGR of 18%/19%/18% over FY22-24 for an RoA of 1.9%/1.8% and RoE of 17.6%/16.7% over FY23/24, respectively.
Can Fin Home is a franchise with moats on the liability side and strong asset quality. Its ability to maintain stable margins is a key monitorable as CANF continues on its healthy loan growth trajectory.
The next leg of the re-rating in valuation multiple will be contingent on the appointment of the new management team and its ability to inspire investor confidence in loan growth and asset quality. We reiterate our Buy rating with a Target Price of Rs 610 (premised on 1.9x FY24E BVPS.
Rupee Updates:
Indian rupee seen a sharp fall against the dollar as domestic currency is trading lower by 51 paise at 82.87 against previous close of 82.36.
Buzzing
Mahindra CIE Automotive: has recorded a 3% year-on-year growth in consolidated profit at Rs 171.4 crore for the quarter ended September FY23 supported by topline and other income, but dented by higher tax cost. Revenue grew by 30% to Rs 2,723 crore compared to corresponding period last fiscal.
Mahindra CIE Automotive was quoting at Rs 316.95, up Rs 4.95, or 1.59 percent.
Market at 3 PM
Benchmark indices erased most of the intraday gains and trading flat amid volatility.
The Sensex was up 80.68 points or 0.14% at 59041.28, and the Nifty was up 8.30 points or 0.05% at 17495.30. About 1494 shares have advanced, 1686 shares declined, and 119 shares are unchanged.
BSE Power index fell 1 percent dragged by the NHPC, Adani Power, Adani Transmission
Vedanta arm BALCO declared as successful bidder for Barra Coal Block
BALCO has been declared as the successful bidder for Barra Coal Block, located in Raigarh district, Chhattisgarh under Tranche IV of the commercial coal block auction conducted by Ministry of Coal.
The block has estimated reserves of 900 million tonnes. Once operational, it will provide fuel security, improve power availability, and further strengthen BALCO’s operations and performance.
Vedanta was quoting at Rs 280.00, up Rs 0.30, or 0.11 percent on the BSE.
KRChoksey View on Sonata Software
Sonata Software is currently trading at a valuation with a P/E multiple of ~17.0x/~14.5x on FY23E/FY24E earnings. We expect strong deal momentum across geographies, higher focus on ISV and Retail (Essential/Non-Essential), and tailwind in Managed Cloud Services will aid growth over the medium to long term in future and hence we are assigning a P/E multiple of 17x to the FY24 estimated EPS of Rs 36.6 to arrive at an adjusted target price of Rs 587 per share (Earlier Price INR 791, pre-adjustments), an upside of ~17.2% over the CMP. Accordingly, we maintain our rating to a “BUY” to the stock.
Motilal Oswal Gold & Silver ETFs FoFs opens for public subscription
Motilal Oswal Gold and Silver ETFs FoFs will open for subscription from tomorrow, 19th October 2022, with the aim of generating returns by investing in units of Gold ETF and Silver ETF. The NFO was closed on 07 Oct 2022.
Syngene International Q2 Earnings:
Syngene International has reported 53% jump in its Q2FY23 net profit at Rs 102 crore versus Rs 66.7 crore and revenue was up 25.9% at Rs 768.1 crore versus Rs 610.2 crore, YoY.
HDFC AMC Q2FY23
-Net Profit up 5.7 percentat Rs 364.1 crore vs Rs 344.4 crore YoY
-Revenue up 0.4 percentat Rs 544.7 crore vs Rs 542.3 crore YoY
CG Power Q2FY23 (YoY)
-Net Profit down 11.1 percent at Rs 179.3 crore vs Rs 201.7 crore
-Revenue up 16.7 percent at Rs 1,696.3 crore vs Rs 1,453.8 crore
-EBITDA up 51.7 percentat Rs 259.7 crore vs Rs 171.1 crore
-EBITDA margin at 15.3 percent vs 11.8 percent
European markets trade flat after UK inflation data
The U.K. reported a rise in the consumer price index to 10.1 percent on Wednesday, matching the 40-year high posted by the Office for National Statistics in July.
Tracxn Technologies to list on October 20 | Will it make a decent debut?
Private market intelligence platform Tracxn Technologies is going to be 22nd company getting listed on the bourses in current calendar year, on October 20.
Given the muted response to the IPO, high valuations (not only FY22 basis but also on Q1FY23 basis), IPO being an entirely offer for sale, and rising fears of global recession, the listing may be either at par or discount to the issue price of Rs 80 per share, experts said. Read more
Ultratech Cement analyst consensus
Buys: 41
Holds: 4
Sells: 2
12-Month Target Price: Rs 7519.12
Data: Bloomberg
Markets at 2 PM
Sensex is up 133.78 points or 0.23 percentat 59,094. Nifty is up 28.40 points or 0.16 percentat 17,515. About 1583 shares have advanced, 1569 shares declined, and 122 shares are unchanged.
Ultratech Cement Q2FY23 (YoY)
-Net profit down 42.1 percent at Rs759 crore vs Rs 1,310 crore
-Revenue up 16.6 percentat Rs13,893 crorevs Rs 12,016 crore
-EBITDA down 31.2 percentat Rs1,867 crore vs Rs 2,714 crore
-EBITDA margin at 13.4 percent vs 22.6 percent
Ultratech Cement Q2FY23 (YoY)
-Net profit down 42.1 percent at Rs759 crore vs Rs 1,310 crore
-Revenue up 16.6 percentat Rs13,893 crorevs Rs 12,016 crore
-EBITDA down 31.2 percentat Rs1,867 crore vs Rs 2,714 crore
-EBITDA margin at 13.4 percent vs 22.6 percent
Accelya Kale Solutions Q2 results
Accelya Kale Solutions has reported net profit at Rs 33.1 crore against Rs 14.2 crore and revenue was up 35.2% at Rs 115.3 crore against Rs 85.3 crore, YoY.
Kirloskar Pneumatic Company Q2 Earnings:
Kirloskar Pneumatic Company has posted net profit at Rs 27 crore versus Rs 11.4 crore for the quarter ended September 2022 and revenue was up 30.3% at Rs 295.2 crore versus Rs 226.6 crore, YoY
Kirloskar Pneumatic Company was quoting at Rs 576.00, up Rs 11.15, or 1.97 percent.
Motilal Oswal View on Mahindra CIE Automotive
Mahindra CIE Automotive's growth story is on track, driven by its organic initiatives (new products and customers in the India business). This, coupled with cost cutting measures in both India and the EU, will drive margin expansion going forward.
Any significant order wins or growth in the EV portfolio can drive a rerating. The stock trades at 16.9x/13.5x CY22E/CY23E consolidated EPS. We maintain our Buy rating with a Target Price of Rs 360 (~13x Dec’24E consolidated EPS).
Asian Paints Q2 preview:
Asian Paints is expected to clock anywhere between 80-90 percent year-on-year growth in consolidated post-tax profit and 16-32 percent YoY growth in consolidated revenue for the quarter ended September 2022, aided by continued market share gains and price hikes.
The company will report its Q2FY23 results on October 20.
According to an average of estimates of brokerages polled by Moneycontrol, revenue will rise by 23 percent year-on-year to Rs 8,724 crore. Net profit is expected to grow 80 percent from corresponding quarter of last fiscal to Rs 1,068 crore. Sequentially, net profit will likely grow 2.5 percent.
Asian Paints was quoting at Rs 3,204.85, down Rs 20.75, or 0.64 percent on the BSE.
DIPAM to start roadshow for Concor divestment from today
We would like to inform that CONCOR is in receipt of a communication from the Transaction Advisor of Department of Investment & Public Asset Management (DIP AM), M/ s. Deloitte Touche Tohmatsu India LLP, that roadshow(s) are being organized by DIP AM with potential investors as part of disinvestment process of CONCOR.
The roadshow(s) will be held during 19.10.2022 to 21.10.2022 in virtual mode, which will have representatives from DIP AM, Ministry of Railways and CONCOR.
Rupee Updates:
Indian rupee is trading flat at 82.37 per dollar against previous close of 82.36.
Suven Life Sciences to open its rights issue on October 31
Suven Life Sciences has decided to open its rights issue on October 31 and the closing date will be November 10.
The company is planning to raise Rs 399.80 crore via rights issue and the issue price has been fixed at Rs 55 per share.
Suven Life Sciences was quoting at Rs 64.65, down Rs 1.55, or 2.34 percent on the BSE.
ICICI Lombard Q2 profit rises 32% YoY to Rs 590.5 crore
ICICI Lombard General Insurance Company reported a 32% year-on-year growth in profit after tax at Rs 590.5 crore for Q2FY23. Net premium earned jumped 18% to Rs 3,836.55 crore compared to corresponding period last fiscal.
The company has declared an interim dividend of Rs 4.50 per share for the financial year ended March 2023.
ICICI Lombard General Insurance Company was quoting at Rs 1,136.55, down Rs 13.15, or 1.14 percent on the BSE.
Hitachi Energy gets a contract from NTPC Renewable Energy
Hitachi Energy India has been awarded a contract by NTPC Renewable Energy Limited (NTPC REL) to supply power transformers for their upcoming 4.75 GW renewable energy park in Gujarat, which is part of India’s largest solar park.
Hitachi Energy India was quoting at Rs 3,355.20, up Rs 26.15, or 0.79 percent.
BSE Metal index fell 0.5 percent dragged by the JSW Steel, APL Apollo, Coal India
CLSA View On ICICI Lombard General Insurance Company
Broking house CLSA has kept buy call on ICICI Lombard General Insurance Company and raised the target priced to Rs 1,550 per share.
Due to strong profitability in Q2, raise FY23-25 EPS estimates by 1-3 percent, said CLSA.
Group health momentum is strong & ‘capped loss’ crop insurance plan, reported CNBC-TV18.
Here are the stocks that are locked on the upper circuit or have only buyers: Click to View More
Market at 1 PM
Benchmark indices erased some of the intraday gains but still trading higher.
The Sensex was up 151.79 points or 0.26% at 59112.39, and the Nifty was up 36 points or 0.21% at 17523. About 1591 shares have advanced, 1524 shares declined, and 124 shares are unchanged.
KP Energy bags order
KP Energy has received order for providing Erection and Installation services for 5 Nos of Suzlon make wind operated electricity generator (commonly also referred as wind mill or WTG) of model 5120 having a rated capacity of 2100 kW (two-thousand-one-hundred kilo-Watt) (with hub height of one hundred and forty (140) meters) at Vinjalpar site in Gujarat from ABREL Century Energy
Limited.
K.P. Energy was quoting at Rs 411.05, down Rs 5.10, or 1.23 percent on the BSE.
DB Corp Q2
DB Corp has reported 9.3 percent fall in Q2FY23 net profit at Rs 48.7 crore against Rs 53.7 crore and revenue was up 20.5% at Rs 538.3 crore versus Rs 446.7 crore, YoY.
Rane Brake Linings Q2 Earnings:
Rane Brake Linings has posted 20 percent jump in its September quarter net profit at Rs 6.5 crore versus Rs 5.4 crore and revenue was up 15.2% at Rs 141.1 crore versus Rs 122.5 crore, YoY.
SpiceJet hikes salaries for captains to Rs 7 lakh per month from November
SpiceJet, on October 19, announced an increase in the salary for its captains with effect from November. The revised salary, higher as compared to the pre-COVID salary, will amount to Rs 7 lakh per month for 80 hours of flying.
The low-cost carrier said that it has been revising pilot salaries on a monthly basis and salary for October was hiked by 22 percent for captains. As compared to August, the September salary saw an increase of up to 10 percent for trainers and 8 percent for captains and First Officers.
It said that the salaries of trainers and Senior First Officers have also been increased commensurately.
JSWIspatSpecial Products Q2 earnings:
JSW Ispat Special Products' consolidated loss for September FY23 quarter widened to Rs 209.1 crore, from loss of Rs 36.88 crore in corresponding period last year, impacted by lower topline growth. Revenue from operations fell by 47% YoY to Rs 757.4 crore in Q2FY23.
JSW Ispat Special Products was quoting at Rs 27.20, down Rs 0.25, or 0.91 percent.
Motilal Oswal View on ICICI Lombard
We expect strong premium growth for ICICI Lombard, led by strength in new Auto sales, investments in the Health distribution channel, and expected results from past investments in technology.
Earnings growth will accrue from synergies from its merger with BAXA and improvement in the loss ratios for the Health segment.
We raise our FY23/FY24 earnings estimate by 11%/4%, led by higher investment income, offset by a higher underwriting loss. During FY22-25, we see the company delivering a premium/PAT CAGR of 18%/26% and a RoE of 19% in FY24. We maintain our Buy rating with a one-year Target Price of Rs 1,450 (35x FY24E P/E)
Buzzing
Anant Raj more than doubled its consolidated profit to Rs 33.74 crore for quarter ended September FY23, against Rs 14.14 crore in same period last year which was impacted by second covid wave.
Revenue from operations jumped 191% to Rs 251.62 crore compared to year-ago period.
Anant Raj was quoting at Rs 100.60, down Rs 4.80, or 4.55 percent.
