Ajit Mishra, VP - Research, Religare Broking
Markets traded dull and ended marginally lower, taking a breather after the recent surge. After the flat start, profit taking pushed the index gradually lower however marginal rebound in the final hours trimmed losses. Consequently, the Nifty index settled at 18,075; down by 0.38%.
Most sectoral indices traded in tandem with the benchmark and ended with a marginal cut. Meanwhile, movement on the stock-specific front kept participants busy till the end.
Markets will react to the outcome of the US Fed meet in early trades and then the focus would shift to the MPC’s special meet. The outcome of these events could trigger some volatility but the market tone is likely to remain positive. We thus recommend focusing more on accumulating quality stocks on dips.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty opened gap up on November 02 however couldn’t build upon the early gains. The bulls took a breather today after stretching their arms recently. On the daily chart, the index has formed a bearish outside bar along with an Engulfing bear candle. This makes today’s high of 18178 a key resistance.
The hourly chart also shows that weakness is creeping in again.
Going ahead, 18000 will be the make or break level to watch out for. The short term trajectory can remain positive as long as the Nifty sustains above 18000. On the flip side, breach of 18000 on a closing basis will drag the index in consolidation mode.
Vinod Nair, Head of Research at Geojit Financial Services.
With the FOMC's outcome around the corner, profit booking and a risk-off mood dragged the domestic market to trade with cuts.
Meanwhile, strong US employment figures dented expectations for a slowdown in rate hikes. Since the market has already priced in a 75 bps rate hike by the Fed, market movement will be determined by their comments on its next moves.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
After having rallied sharply over the past week or so, markets finally took a breather ahead of the Fed's decision on policy rate hike.
Traders preferred to book some profit in selective counters to avoid being caught off guard on worries of a sharp correction worldwide in case the rate hike is above the expectation and the Fed maintains a hawkish stance.
Technically, on daily charts the Nifty has formed a small bearish candle with double top formation on intraday charts. For the index, 18,000 and 17,950 would act as key support zones, while 18,200-18,250 would be the immediate hurdle.
Market Close
: Indian benchmark indices snapped four-day winning streak and ended lower with Nifty below 18100.
At Close, the Sensex was down 215.26 points or 0.35% at 60,906.09, and the Nifty was down 62.60 points or 0.34% at 18,082.80. About 1752 shares have advanced, 1615 shares declined, and 135 shares are unchanged.
Bharti Airtel, Apollo Hospitals, Maruti Suzuki, Eicher Motors and Britannia Industries were among the top Nifty losers, while gainers included Hindalco Industries, Sun Pharma, ITC, ONGC and Tech Mahindra.
On the sectoral front, selling was seen in the Auto, Bank, Capital Goods, Information Technology, PSU Bank, Power and Realty names. On the other hand, Metal and Pharma indices ended on positive note.
The BSE midcap index ended flat, while smallcap index was up 0.2 percent.
Rupee Close:
Indian rupee closed lower at 82.78 per dollar against previous close of 82.70.
Adani Transmission Q2 results:
Adani Transmission has posted 24 percent fall in its Q2 net profit at Rs 206.2 crore versus Rs 272.5 crore and revenue was up 32.6% at Rs 3,251.4 crore versus Rs 2,451.4 crore, YoY.
Adani Transmission was quoting at Rs 3,300.00, down Rs 37.45, or 1.12 percent.
Cabinet approves mechanism for procurement of Ethanol by public sector OMCs and also approve under ethanol blended petrol programme for Ethanol supply year 2022-23, reported CNBC-TV18.
DCX Systems IPO subscribed 62 times on final day
The public issue of defence system integration company DCX Systems has received overwhelming response across all categories of investors as increasing government focus on defence, decent financials and healthy orderbook, reasonable valuations, and positive equity environment inspired markets.
Investors bid for 89.47 crore shares against offer size of 1.45 crore, subscribing the initial public offering (IPO) 61.66 times on November 2, the final day of bidding.
Retail investors have remained at the forefront since day one, buying their quota 54.52 times.
Non-institutional investors have also remained active since first day of IPO, subscribing their portion 39.47 times while the quota for qualified institutional buyers was bought 74.23 times.
Morgan Stanley On LIC Housing Finance
-Kept underweight call, target at Rs 375 per share
-Profit 70% lower than estimate, driven by lower NII
-Stage 2+3 ratio flat QoQ, provision cover higher
-Loan growth in-line with estimate, led by home loans, reported CNBC-TV18.
Nomura On Kansai Nerolac
-Buy call, target at Rs 650 per share
-Earnings below est but QoQ margin performance better than Asian Paints
-Q3 demand could be subdued for decorative biz due to high base, early festive season, reported CNBC-TV18.
Kansai Nerolac Paints was quoting at Rs 468.75, down Rs 15.15, or 3.13 percent.
Energy Prices Update:
Market at 3 PM
Benchmark indices were trading lower with Nifty below 18100.
The Sensex was down 267.96 points or 0.44% at 60853.39, and the Nifty was down 77.40 points or 0.43% at 18068. About 1672 shares have advanced, 1536 shares declined, and 122 shares are unchanged.
Rupee Updates:
Indian rupee is trading lower at 82.77 per dollar against previous close of 82.70.
Sources To CNBC-TV18:
Govt increased nutrient based subsidy (NBS) for rabi season
Additional nutrient based subsidy for rabi seen at over Rs 30,000 crore
Total NBS for rabi crop seen over Rs 51,000 crore versus Rs 21,000 crore outlay
Fusion Micro Finance IPO updates
The maiden public issue of Fusion Micro Finance has mopped up bids for 11.92 lakh equity shares against an IPO size of 2.13 crore shares, subscribing 6 percent on November 2, the first day of bidding.
Retail investors have bought shares 8 percent of the allotted quota and non-institutional investors put in bids 7 percent of the portion set aside for them. Qualified institutional investors have not put in a single bid yet.
DCX Systems IPO updates
The public issue of defence system integration company DCX Systems has received overwhelming response across all categories of investors as increasing government focus on defence, decent financials and healthy orderbook, reasonable valuations, and positive equity environment inspired markets.
Investors bid for 51.33 crore shares against offer size of 1.45 crore, subscribing the initial public offering (IPO) 35.37 times on November 2, the final day of bidding. Retail investors have remained at the forefront since day one, buying their quota 50.19 times. Non-institutional investors have also remained active since first day of IPO, subscribing their portion 32.71 times while the quota for qualified institutional buyers was bought 32.01 times.
European Markets Updates
Mahindra Holidays Q2
Net profit went down 30.5% at Rs 41 crore against Rs 59 crore YoY. Revenue was up 9.5% at Rs 598.4 crore against Rs 546.4 crore YoY. EBITDA slipped 1.6% at Rs 116.5 crore against Rs 118.4 crore YoY. Margin at 19.5% against 21.7% YoY. The stock was trading at Rs 277.50, down Rs 4.90, or 1.74 percent on BSE. It has touched an intraday high of Rs 288.75 and an intraday low of Rs 275.45.
Precision Wires to consider bonus issue on November 10
Market update at 2 PM: Sensex is down 288.28 points or 0.47% at 60833.07, and the Nifty shed 81.90 points or 0.45% at 18063.50.
DCX Systems IPO Updates:
BSE Realty Index fell 1 percent dragged by the Phoenix Mills, DLF, Macrotech Developers
Rupee Updates:
Indian rupee is trading marginally lower at 82.78 per dollar against previous close of 82.70.
Firstsource Solutions Q2
Firstsource Solutions has posted 52 percent jump in its Q2 net profit at Rs 129.4 crore versus Rs 85 crore revenue was up 1.5% at Rs 1,473.5 crore versus Rs 1,452.4 crore, QoQ.
Ridham Desai, Head of India-Equity Research & India Equity Strategist, Morgan Stanley on CNBC-TV18
India is helping itself probably dominate the world.
India has done a lot of heavy lifting over the past few years, especially over the last four or five years.
Desai believes that over the next 10 years, India could account for 20 percent of the growth that world will generate.
The country is becoming both the office and factory to the world and offshoring is a big positive trigger for India.
JSW Group plans to invest Rs 1 lakh crore across businesses in Karnataka over next 5 years: Sajjan Jindal
Fusion Micro Finance IPO subscribed 4% on debut
The maiden public issue of Fusion Micro Finance has mopped up bids for 8.41 lakh equity shares against an IPO size of 2.13 crore shares, subscribing 4 percent on November 2, the first day of bidding.
The offer size has been reduced to 2.13 crore shares, from nearly 3 crore equity shares after the microfinance lender mobilised Rs 331 crore from anchor investors on November 1, a day before the issue opening.
Retail investors have bought shares 6 percent of the allotted quota and non-institutional investors put in bids 4 percent of the portion set aside for them.
Qualified institutional investors have not put in a single bid yet.
DCX Systems IPO subscribed 15.44 times on final day
The public issue of defence system integration company DCX Systems has received overwhelming response across all categories of investors as increasing government focus on defence, decent financials and healthy orderbook, reasonable valuations, and positive equity environment inspired markets.
Investors bid for 22.39 crore shares against offer size of 1.45 crore, subscribing the initial public offering (IPO) 15.44 times on November 2, the final day of bidding.
Retail investors have remained at the forefront since day one, buying their quota 43 times.
Non-institutional investors have also remained active since first day of IPO, subscribing their portion 24.3 times while the quota for qualified institutional buyers was bought 2.82 times.
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Here are the stocks that are witnessing a huge surge in volumes traded today as compared to their 5-day average traded volume;
Govt said to be planning to infuse Rs 2,000 crore in IFCI, merge unit with company
Market at 1 PM
Benchmark indices extended the losses and trading at day's low.
The Sensex was down 297.76 points or 0.49% at 60823.59, and the Nifty was down 85.40 points or 0.47% at 18060. About 1650 shares have advanced, 1501 shares declined, and 121 shares are unchanged.
Nomura View on Adani Ports
-Kept buy call with a target at Rs 1,025 per share
-Strong results; volume guidance retained
-Improvement in RoCE in logistics & SEZ land sales are catalysts
-EXIM trade weakening a concern
-Exiting Myanmar project by end of FY23 can be key relief, reported CNBC-TV18.
Adani Ports and Special Economic Zone was quoting at Rs 832.80, down Rs 8.95, or 1.06 percent on the BSE.
JSW Group to invest additional Rs 1 lakh crore over next 5 years in Karnataka, reported CNBC-TV18.
Bharti Airtel surpasses 1 million customers on it 5G network
Randeep Sekhon, CTO, Bharti Airtel, said “These are early days but the response from customers have been very encouraging. Our network is being built every day even as all 5G devices are now capable of working on the Airtel 5G Plus network barring a few exceptions which should also be done in the coming weeks. We will continue to advance our network with a vision to connect the entire country.”
Maruti Suzuki's production increases 15.8% YoY at 1.56 lakh vehicles for October
Maruti Suzuki India announced production of 1.56 lakh vehicles in October 2022, increasing 15.8% compared to 1.34 lakh units produced in same month last year. Production volume in October 2021 was adversely impacted due to a sizeable shortage of electronic components.
BSE Power index shed 0.5 percent dragged by the NHPC, JSW Energy, Adani Power
Grasim Industries gets board nod for fund raising via NCDs
Grasim Industries' Finance Committee of the Board of Directors has approved issue of non-convertible debentures (NCDs) on private placement basis, for up to Rs 1,000 crore, in one or more tranches.
Grasim Industries was quoting at Rs 1,759.00, down Rs 3.55, or 0.20 percent on the BSE.
Veranda Learning Solutions cancels acquisition of T.I.M.E
.
Veranda Learning Solutions has terminated acquisition of T.I.M.E.. It had entered into a share purchase agreement (SPA) for the acquisition of 100% shareholding of Hyderabad-based firm T.I.M.E (Advanced Educational Activities Pvt Ltd) in April 2022. The transactions could not be consummated by the long stop date. Accordingly, the SPA has now been terminated by the parties.
Veranda Learning Solutions was quoting at Rs 318.00, down Rs 4.05, or 1.26 percent on the BSE.
Buzzing
Cholamandalam Investment and Finance Company has reported a 7% year-on-year decline in standalone profit at Rs 563.41 crore for the quarter ended September FY23, impacted by significant increase in impairment of financial instruments. Revenue from operations grew by 21% YoY to Rs 2,988 crore for the quarter.
Fusion Micro Finance IPO Updates:
The maiden public issue of Fusion Micro Finance has mopped up bids for 5.55 lakh equity shares against an IPO size of 2.13 crore shares, subscribing 2 percent on November 2, the first day of bidding.
The offer size has been reduced to 2.13 crore shares, from nearly 3 crore equity shares after the microfinance lender mobilised Rs 331 crore from anchor investors on November 1, a day before the issue opening.
Retail investors have bought shares 4 percent of the allotted quota and non-institutional investors put in bids 2 percent of the portion set aside for them.
Qualified institutional investors have not put in a single bid yet.
Market at 12 PM
Benchmark indices were trading at day's low amid volatility.
The Sensex was down 165.03 points or 0.27% at 60956.32, and the Nifty was down 51.20 points or 0.28% at 18094.20. About 1764 shares have advanced, 1340 shares declined, and 127 shares are unchanged.
Nifty PSU Bank index shed 0.5 percent dragged by the Bank of India, Indian Bank, Punjab National Bank
Motilal Oswal View on Varun Beverages
We expect Varun Beverages to maintain its earnings momentum, underpinned by: a) increased penetration in newly acquired territories of South and West India, b) higher acceptance of newly launched products, and c) growing refrigeration in rural and semi-rural areas.
Further, company is raising its capacities by 20%, which are likely to be operational before the next summer (except for dairy beverages facility that will be operational by Jul’23). The capex for capacity expansion is likely to be ~INR12b.
Factoring in a better-than-expected volume and realization growth in 3QCY22, we raise our CY22E/CY23E/CY24E earnings by 6%/7%/8%, respectively.
We expect a revenue/EBITDA/PAT CAGR of 23%/28%/45% over CY21-24, respectively. We value the stock at 41x CY24E EPS to arrive at our Target Price of Rs 1,330. Maintain Buy.
Brokerages cheer Sun Pharma's Q2FY23 numbers
Global brokerage Bernstein has an Outperform call on the stock with target raised to Rs 1,099 per share. Specialty business, India market share and a turnaround in US generics is providing support to the company and the stock, it said.
Morgan Stanley has an Overweight rating on the stock with target raised to Rs 1,150. “Well-diversified business is helping company manage business volatility. Free cash flow generation continues andbalancesheetis strengthening,” they noted.
Citi, too, is bullish on the stock with a Buy call and target raised to Rs 1,320 from Rs 1,150 per share. “Management commentary was upbeat, specially across specialty products. We raise earnings estimate by 10-13 percent,”Citi’sanalysts said.
Is the Auto sector already losing momentum?
CJ's Take:
- October sales number show chip shortage continues to plague sector
- Segment leaders Maruti Suzuki, Hero MotoCorp sales failed to beat estimates
- Export sector looks weak given currency headwinds, growth slowdown
- Entry-level sales in passenger vehicles, 2-wheelers still remains weak, may hit margins
Santo’s Take:
- Passenger vehicle sales to make new high this year, beating 2018-19 high: MarutiChairman
- Chip shortage already showing signs of easing
- Margin pressures easing due to softening of commodity prices
- Seeing strong growth in commercial vehicle sales as well
Watch the full video to know more
Markets at 11 AM
Sensex is down 131.59 points or 0.22 percent at 60,989.76. Nifty is down 36.30 points or 0.20 percent at 18,109.10. About 1768 shares have advanced, 1262 shares declined, and 115 shares are unchanged.
Y Viswanatha Gowd of LIC Housing Finance on Q2FY23 results
Speaking to CNBC-TV18, he said:
-Net interest margin will see improvement in coming quarters
-Cost of borrowing hasgone up across the industry
-Gross NPA will improve in coming quarters
-Confident of achieving 15 percentgrowthin loan book for FY23
-Q3 will be the best quarter for company in the entire year
TVS Motor Company sales in October grows 2% to 3.55 lakh units
TVS Motor Company registered a growth of 2% with sales increasing from 3.55 lakh units in October 2021 to 3.60 lakh units in October 2022.
Total two-wheelers registered sales of 3.44 lakh units in October this year against sales of 3.41 lakh units in same month last year.
Eicher Motors sells 82,235 units of Royal Enfield in October 2022
Eicher Motors sold 82,235 units of Royal Enfield in October 2022, up by 86% compared to 44,133 units sold in same month last year.
International business sold 5,707 units of Royal Enfield in October this year, up 62% YoY.
Eicher Motors was quoting at Rs 3,736.95, down Rs 61.50, or 1.62 percent on the BSE.
