Closing Bell: Market ends with marginal cuts; IT, power stocks drag, banks gain

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The benchmark indices witnessed a volatile trading session, the Nifty ended 35 points lower while the Sensex was down by 112 points.

Among Sectors, IT index lost the most, shed over 1.14 percent whereas PSU Banks bounced sharply, rallied 2.64 percent.

Technically, on the backdrop of weak global cues our market opened with a negative note but after a gap down opening it bounced back sharply. However, after an early morning intraday rally the entire day the market witnessed range bound activity.

The current market texture is non directional perhaps traders are waiting for either side breakout.

For the bulls now 18150/61100 would be the fresh breakout level and above which the index could rally till 18250-18300/61300-61500. On the flip side, a fresh round of selling is possible only after dismissal of 17950/60500. Below which, the index could slip till 17850-17800/60300-60150.

Mohit Nigam Fund Manager & Head - PMS, Hem Securities:

Indian equity markets closed in red for second consecutive session tailing weak global cues. Globally investors were worried after the US central bank Federal Reserve continued raising key interest rates in its fight against the multi-decade high inflation.

Asian markets closed mostly in red after the Federal Reserve espoused a more hawkish outlook than expected, with Chinese equities cutting short a two-day rally amid uncertainty over the country’s plans to scale back COVID lockdowns.

European markets are trading lower after the US Federal Reserve fully reaffirmed its commitment to fight inflation and signaled it was 'very premature' to think about pausing the tightening cycle.

On the technical front, the key resistance level for Nifty50 is 18,200 and on the downside 17,900 can act as strong support. Key resistance and support levels for Bank Nifty are 41,700 and 40,900 respectively.

Karan Desai , Founder - Interface Ventures

The MPC today was all about giving the central government comfort and visibility on the RBI’s efforts to reign in inflation and bring it back closer to the target 4% mark; it has consistently breached the upper tolerance threshold of 6% for the last 3 quarters running.

Driven by the war in Ukraine, with surging inflation on account of supply disruptions of various commodities including food and fuel, the RBI has already hiked the repo rate 4 times this financial year to now rest at 5.9% in order to bring down inflation from its current 7% plus levels.

While some feel that monetary tightening could have started a little earlier, the RBI took a fairly balanced approach to ensure that growth did not slow down as India was still emerging from the COVID induced lockdowns and business disruptions.

The US Fed hiked rates by 75 bps just yesterday to a range of 3.75% to 4% which is at its highest level since 2008. However, it also indicated a tapering off of subsequent hikes in order to bring inflation back to around the 2% target.

This could be indicative of a similar position taken by the central bank in India to continue raising the repo rate in lower increments going forward to keep a check on inflation until global macros reach some level of stability.

Raymond Q2 Earnings:

Raymond has posted profit of Rs 158.9 crore in the quarter ended September 2022 against Rs 53.3 crore and revenue was up 39.8% at Rs 2,168.2 crore versus Rs 1,551.3 crore, YoY.

Raymond touched a 52-week high of Rs 1,299 and closed at Rs 1,257.85, up Rs 84.00, or 7.16 percent on the BSE.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty had formed a bearish outside bar along with an Engulfing bear candle on November 02. Thereon it stepped into a short term consolidation. Today, the index dipped below the immediate support of 18000 on an intraday basis however managed to hold on to it on a closing basis.

Once the level of 18000 is breached on a closing basis then the Nifty will be set to test 17800 on the downside.

On the higher side, 18200 will be the resistance for the short term. Thus 17800-18200 will be the short term consolidation range, within which, the index is expected to move towards the lower end of the range.

Vinod Nair, Head of Research at Geojit Financial Services

Fed’s refusal to tone down the rate hike narrative shattered the global markets as investors were in expectation of a dovish commentary. Powel cautions that the desired fed rate level is higher than expected, even though he indicated a rate hike of less than 75 bps in the upcoming meetings.

On the back of concerns about the US recession, IT stocks led the domestic selloff, while FII support helped limit the losses.

Rupee Close:

Indian rupee ended 11 paise lower at 82.89 per dollar on Thursday versus previous close of 82.78.

Market Close:

Indian benchmark indices ended marginally lower in the volatile session on November 3.

At Close, the Sensex was down 69.68 points or 0.11% at 60,836.41, and the Nifty was down 30.10 points or 0.17% at 18,052.70. About 1725 shares have advanced, 1630 shares declined, and 120 shares are unchanged.

Tech Mahindra, Hindalco Industries, Power Grid Corporation, NTPC and Infosys were among the top Nifty losers. Gainers included SBI, Titan Company, UPL, HUL and HUL.

Among sectors, except bank, realty and FMCG, all other sectoral indices ended in the red.

The BSE midcap and smallcap indices ended on flat note.

Likhitha Infrastructure bags orders worth Rs 305 crore:

Likhitha Infrastructure was quoting at Rs 390.40, down Rs 2.10, or 0.54 percent.

Morgan Stanley View On LIC Housing Finance

-Kept underweight call and cut target to Rs 320 from Rs 375 per share
-Cut EPS forecasts by 14%, 6% & 13% for FY23-25, respectively
-Sharp decline in NIM largely due to yield sacrifice to retain customers
-NIM will improve but should be lower than previous estimate, reported CNBC-TV18.

LIC Housing Finance was quoting at Rs 369.80, up Rs 2.90, or 0.79 percent on the BSE.

Coromandel International Q2

Coromandel International has posted 42.6 percent rise in its September 2022 quarter net profit at Rs 740.5 crore versus Rs 519.3 crore and revenue was up 64.5% at Rs 10,113.4 crore versus Rs 6,147.5 crore, YoY.

Coromandel International was quoting at Rs 987.45, up Rs 20.75, or 2.15 percent.

Statement of Deviation or Variation in utilization of funds raised by Indigo Paints 

SRF Q2 Earnings:

SRF has reported 26 percent jump in its Q2 net profit at Rs 481 crore versus Rs 382 crore and revenue was up 31.3% at Rs 3,728 crore versus Rs 2,839 crore, YoY.

SRF was quoting at Rs 2,556.85, up Rs 7.80, or 0.31 percent on the BSE.

Market at 3 PM

Benchmark indices were trading marginally lower in the volatile session.

The Sensex was down 68.36 points or 0.11% at 60837.73, and the Nifty was down 21.30 points or 0.12% at 18061.50. About 1563 shares have advanced, 1636 shares declined, and 117 shares are unchanged.

Bikaji Foods International IPO Updates

Fusion Micro Finance IPO Updates

Global Health IPO Updates

Motilal Oswal View on Punjab National Bank:

Punjab National Bank (PNB) reported a mixed business performance, with operating profit on expected lines, but a large miss on PAT due to elevated provisions. Healthy NII growth and steady OPEX were offset by a decline in treasury profit.

Headline asset quality improved, supported by lower slippages, higher recoveries, and an increase in PCR.

The restructured portfolio improved marginally to ~1.8% of loans. SMA overdue (with loans over 50m) was flat at 0.26% of domestic loans.

We cut our FY23/FY24 earnings by 8%/2% as we build in higher provisioning and estimate a RoA/RoE of 0.4%/6.4% by FY24. We maintain our Neutral rating with a Target Price of Rs 40 (0.6x FY24E ABV).

Jefferies On Dalmia Bharat:

-Buy call, target at Rs 1,825 per share
-Both realisations & cost per tonne largely in-line
-QoQ decline in EBITDA/tonne lowest amongst results so far, reported CNBC-TV18.

HDFC Mutual Fund announces HDFC Nifty IT ETF & HDFC Nifty Private Bank ETF

HDFC Asset Management Co. has announced the launch of two funds – HDFC Nifty IT ETF and HDFC Nifty Private Bank ETF, in order to expand their suite of “HDFC MF Index Solutions”.

These funds offer a simple way to gain exposure to the growing IT & Private Bank space. The captioned NFOs opened on October 28, 2022, and will close on November 9, 2022.

Last day of Vital Chemtech IPO:

Vital Chemtech is coming out with an IPO of upto 64,00,000 equity shares of Rs 10 each via the book-building route and has announced a price band of Rs 95-101 per share, for NSE Emerge listing.

At the upper cap of the price band, the company mulls raising Rs 64.64 crore.

IPO is scheduled from October 31, 2022, to November 03, 2022. Investors will have to apply for a minimum of 1200 shares and in multiples thereon, thereafter

Archean Chemical Industries sets price band at Rs 386-407

Specialty chemical company Archean Chemical Industries on November 3 fixed a price band of Rs 386-407 per share for its forthcoming initial public offering.

The offer is going to be opened for subscription on November 9 and the closing date will be November 11. Anchor book will be launched for a day on November 7.

The company plans to raise Rs 1,462.3 crore through the public issue that comprises a fresh issue of Rs 805 crore shares and an offer-for-sale of 1.61 crore equity shares by promoters and investors.

Apar Industries Q2 Results

Apar Industries has reported 80 percent jump in its Q2FY23 profit at Rs 102.6 crore versus Rs 56.9 crore and revenue was up 42.6% at Rs 3,234.9 crore versus Rs 2,269.1 crore, YoY.

UCO Bank Q2: NII grew 10.8% at Rs 1,769.6 crore against Rs 1,597.7 crore (YoY). Net profit at Rs 504.5 crore against Rs 205.4 crore (YoY). Gross NPA at Rs 9,358.9 crore against Rs 9,739.7 crore (QoQ). Net NPA at Rs 2,700.3 crore against Rs 3,103.8 crore (QoQ).

Medanta IPO updates

The initial public offering (IPO) of Global Health, which operates the Medanta chain of hospitals, received bids for 42.74 lakh equity shares against an offer size of 4.67 crore shares subscribing 9 percent on November 3, the first day of bidding.

Retail investors had bought 8 percent of their allotted quota of shares, while non-institutional investors had bid for 4 percent of their reserved portion, subscription data available with the exchanges showed. Qualified institutional buyers had put in bids for 16 percent shares of the portion set aside for them.

Fusion Micro Finance IPO updates

The initial public offering of Fusion Micro Finance has witnessed muted response from investors so far as the offer has garnered bids for 43.3 lakh shares against IPO size of 2.13 crore shares, subscribing just 20 percent on November 3, the second day of bidding.

Retail investors have bought 24 percent shares of the allotted quota, while non-institutional investors have put in bids for 38 percent shares of the portion set aside for them. Qualified institutional buyers have subscribed for 1,680 shares against the reserved portion of 59.56 lakh shares.

Bikaji Foods International IPO updates

The public issue of Bikaji Foods International, the third largest ethnic snacks company with an international footprint, has garnered bids for 78.16 lakh equity shares against offer size of 2.06 crore shares subscribing 38 percent on November 3, the first day of bidding.

Retail investors have bought 66 percent shares of the allotted quota, and employees have bids for 28 percent shares of the portion set aside for them.

Indigo Paints Q2

Net profit at Rs 37.1 crore against Rs 13.5 crore (YoY). Revenue was up 23.7% at Rs 242.6 crore against Rs 196.1 crore (YoY). EBITDA jumped 44.4% at Rs 33.7 crore against Rs 23.4 crore (YoY). Margin at 13.9% against 11.9% (YoY). The stock was trading at Rs 1,531.10, up Rs 74.50, or 5.11 percent on BSE. It has touched an intraday high of Rs 1,544.00 and an intraday low of Rs 1,455.75.

European Markets Updates

Elecon Engineering Q2

Net profit jumped 82.3% at Rs 64.5 crore against Rs 35.4 crore (YoY). Revenue was up 23.7% at Rs 388.6 crore against Rs 314 crore(YoY). EBITDA rose 38.9% at Rs 92.6 crore against Rs 66.6 crore (YoY). Margin at 23.8% against 21.2% (YoY). The stock was trading at Rs 403.70, up Rs 32.90, or 8.87 percent on BSE. It has touched an intraday high of Rs 404.55 and an intraday low of Rs 366.55. It was trading with volumes of 98,171 shares, compared to its five day average of 35,434 shares, an increase of 177.05 percent.

HDFC Q2

Net profit was up 17.8% at Rs 4,454 crore against Rs 3,780.5 crore (YoY). Non-individual gross NPA at 3.99% against 4.44% (QoQ). Gross NPA at 1.59% against 1.78% (QoQ). NII grew 12.9% at Rs 4,639 crore against Rs 4,108.5 crore.

HPCL Q2: Net loss at Rs 2,172 crore against loss of Rs 10,197 crore QoQ. Revenue slipped 5.3% at Rs 1.08 lakh crore against Rs 1.14 lakh crore QoQ. EBITDA loss  at Rs 1,498 crore against loss of Rs 12,495 crore QoQ. Results include one-time grant of Rs 5,617 crore by government.   

Market update at 2 PM: Sensex is down 214.67 points or 0.35% at 60691.42, and the Nifty shed 67.50 points or 0.37% at 18015.30.

Sapphire

-Consolidated net profit at Rs 26.9 crore vs loss of Rs 5 crore
-Consolidated revenue up 35.9 percentat Rs 562.7 crore vs Rs 414.1 crore
-EBITDA up 82.2 percent at Rs 103.2 crore vs Rs 56.6 crore
-Margin at 18.3 percent vs 13.7 percent

Indian

-Net profit up 12.5 percent at Rs 1,225 crore vs Rs 1,089 crore YoY
-Net interest income up 14.7 percent atRs 4,684 crore vs Rs 4,083 crore YoY
-Gross NPAat 7.30 percent vs 8.13 percent QoQ
-Net NPAat 1.50 percentvs 2.12 percent QoQ

Bank

PTC Industries In MoU with defence PSU Mishra Dhatu Nigam for technical collaboration

The MoU between PTC Industries and Midhani will utilise the technological capabilities of both companies for:
1. Manufacturing of Titanium alloy pipes and tubes using indigenous raw materials processed through the recently acquired technology by PTC Industries in collaboration with Midhani for defence and naval applications
2. Manufacturing of Titanium alloy plates and sheets using Midhani Wide Plate Mill using indigenous feedstock processed using PTC's EBCHR Melting Technology, currently the sole upcoming plant in India which will use scrap titanium and various grades of titanium sponge
3. Fabrication of crucial parts and LRUs for the defence and aerospace industries using PTC's advanced machining facility and Midhani's forged and rolled products.

At 1:20 pm, PTC Industries' stock was trading flat at Rs 3000 per share on the National Stock Exchange.

Shriram Properties | Q2 Update

The Company has achieved sales volumes of 1.01 million square free (msf) in Q2FY23, up 52 percentquarter-on-quarter compared to 0.66 msf in Q1FY23. Aggregate sales value stood at Rs 435 crores in Q2, reflecting a growth of 39 percentQoQ, compared to Rs 313 crores in Q1FY23. Projects under the Development Management (DM) accounted for 30 percent of sales volume while share of plotted development stood at 32 percent in Q2.

Markets At 1 PM

Sensex is down 232.71 points or 0.38 percent at 60,673.38. Nifty is down 74.00 points or 0.41 percentat 18,008.80. About 1503 shares have advanced, 1634 shares declined, and 130 shares are unchanged.

Adani Wilmar Q2FY23 (YoY)

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Net Profit down 73.3 percent at Rs 48.7 crore vs Rs 182.3 crore

Nifty IT down 1.18 percent as Cognizant cuts revenue forecast again

Nasdaq-listed Cognizant reported a sequential decline in revenue for the third quarter of the calendar year 2022, and pared its guidance for the second time, as it continues to hobble due to weak demand and poor execution.

Revenue for the July-September period declined 1 percent sequentially but was up 2.4 percent year-on-year at $4.85 billion. For the fourth quarter, Cognizant has forecast a revenue decline of 0.2-1.2 percent.

It also missed its revenue growth guidance for the quarter, coming in at 5.6 percent in constant currency as opposed to the guidance of 7.5-8.5 percent.

Alert: Nykaa receives approval from shareholders on 5:1 bonus issue, new employee stock options (ESOP) and employee stock unit plan

M&M Financial Services soars on multi-year high disbursements

Shares of M&M Financial Services zoomed on November 3 even as the company reported a weak set of earnings numbers for September quarter. The enthusiasm was likely because company also reported massive growth in disbursement taking it to multi year highs.The stock jumped nearly 8 percent to Rs 208 on the BSE.

The company said its disbursement grew 83 percent year on year (YoY) during the quarter with sequential growth of 25 percent. Loan growth was also a robust 16 percent YoY and 9 percent sequentially.

Will the Fed halt Dalal Street's party once more?

Santo's View:

-Series of Fed rate hikes will narrow India’s outperformance
-Strong dollar could create problems for Indian currency
-Fed trying hard to prevent market from getting exuberant

CJ's View:

-Indian market can weather another Fed storm
-Strong earnings growth expectation to drive market higher
-Near-term dips may be seen as buying opportunity by investors

Watch the full video to know more

Devyani International Q2FY23 (YoY)

-Net Profit up 28.4 percent at Rs 58.7 crore vs Rs 45.7 crore
-Revenue up 44.8 percent at Rs 747.4 crore vs Rs 516 crore
-EBITDA up 30 percent at Rs 166.4 crore vs Rs 128 crore
-Margin at 22.3 percent vs 24.8 percent

Cipla Large Trade | 9.08 lakh shares (0.1 percent equity) worth Rs 106.07 crore change hands at Rs 1,168.75 per share

Markets At 12 PM

Sensex is down 94.97 points or 0.16 percentat 60,811.12. Nifty is down 33.20 points or 0.18 percentat 18,049.60. About 1618 shares have advanced, 1475 shares declined, and 123 shares are unchanged.

Kavinder Singh, Mahindra Holidays on Q2FY23 numbers

Speaking to CNBC-TV18, he said:
-Despite Q2 being a seasonally weak quarter, the company has done well
-Q2 occupancy at approxiamately79 percenton higher room base
-Have added more than 500 rooms over last year
-We will see 85 percentoccupancy in Q3

Worst is behind for Cholamandalam Investment and Finance Company, says Elara Securities

We expect an earnings CAGR of 18 percent over FY22-25Ewith robust growth prospects and receding credit cost acting as mitigating factors on net interest margin and opex pressures.We expect a 19 percentAUM CAGR, with an average NIM of 6.7 percent. Diversified product mix curbing cyclical pressures and expansion into new business verticals place the company favorably in the CV financing space while retaining superior valuation. We reiterateBuy with a target price of Rs876.

Bikaji IPO opens for subscription: Day 1 update

As of 11:40 am,
-Non Institutional Investors: 0.08x
-Retail Individual Investors: 0.33x
-Employees: 0.14x
-Qualified Institutional Buyers(QIBs): 0.00x
-Total: 0.18x