Rupak De, Senior Technical Analyst at LKP Securities:
On the daily chart, the Nifty made a bullish harami pattern, suggesting a rise in optimism. Besides, the index has found support at 200DMA for the second consecutive day. The daily RSI is in a bullish crossover.
Over the short term, the index may remain within a band. On the lower end, 17000 may act as support; whereas, 17300 may act as resistance on the higher end.
Ajit Mishra, VP - Research, Religare Broking
Markets rebounded after the recent slide and gained nearly a percent amid mixed cues. After the initial uptick, Nifty drifted lower in the early hours however recovery in select index majors across sectors gradually pushed the index higher as the session progressed.
It finally settled around the day’s high to close at 17,123.6 levels. On the sectoral front, banking, FMCG and energy were among the top gainers while pharma and metals traded subdued.
We feel it’s just a respite in a corrective phase and the tone would remain negative until Nifty decisively reclaims 17,400 levels. Amid all, the buoyancy in the banking space is capping the damage so far while others are seeing a mixed trend. We feel it’s prudent to stay light in the prevailing scenario and keep the existing positions hedged.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Bears took a breather today as markets witnessed a relief rally after getting hammered in the past few sessions. However, the recovery doesn't seem to be sustainable as multiple negative factors are at play.
Technically, the Nifty took support near the 200-day SMA (Simple Moving Average) and bounced back sharply. As long as the index is trading above 17000 mark, the pullback formation is likely to continue. Above the same, the index may touch the level of 17,225-17,275. On the flip side, below 17,000, the index could slip till 16,900.
Wipro Q2 results
IT services major Wipro Ltd on October 12 said its consolidated net profit for the quarter ended September 30, 2022 fell 9.27 percent to Rs 2,659 crore from Rs 2,930 crore in the year-ago period.
The Bengaluru-based company's revenue from operations stood at Rs 22,539.7 crore, a 14.60 percent growth over Rs 19,667.4 crore in the previous year.
Vinod Nair, Head of Research at Geojit Financial Services
The domestic market was successful in overcoming the weak cues from global peers as it focused on quarterly earnings. The IT earnings season got off to a strong start, which improved the sector's spirits.
In the midst of escalating geopolitical unrest and the prospect of a worldwide economic downturn as the IMF revised down its forecast for global growth, European markets continued to slide.
At the same time, oil prices dropped due to sluggish demand amidst recession fears and tightening curbs in China, which was taken positively by the domestic market.
Rupee Close:
Indian rupee ended flat at 82.31 per dollar against previous close of 82.32.
Market Close:
Benchmark indices broke three-day losing streak on October 12 with Nifty closing above 17100.
At Close, the Sensex was up 478.59 points or 0.84% at 57,625.91, and the Nifty was up 140.10 points or 0.82% at 17,123.60. About 1615 shares have advanced, 1727 shares declined, and 133 shares are unchanged.
Power Grid Corporation, Axis Bank, Coal India, Bajaj Auto and NTPC were among the top Nifty gainers. Asian Paints, Adani Enterprises, Dr Reddy's Labs, Bharti Airtel and ICICI Bank were the top losers.
All the sectoral indices ended in the the green.
BSE midcap index rose 0.6 percent and smallcap index added 0.2 percent.
Morgan Stanley View On Sobha:
Morgan Stanley has remained overweight on Sobha due to Inexpensive valuations with a target at Rs 1,024 per share.
The key themes include pick-up in new launches & sustaining high pace of new sales. The cash from operations will be used for new projects acquisitions as well as de-leveraging, reported CNBC-TV18.
PPFAS Mutual Fund buys 5 lakh shares in Motilal Oswal Financial Services
PPFAS Mutual Fund has bought 5 lakh equity shares in Motilal Oswal Financial Services via open market transactions at an average price of Rs 703 per share.
However, John Hancock Funds II International Value Fund was the seller for those shares at same price.
Motilal Oswal Financial Services was quoting at Rs 702.55, up Rs 4.85, or 0.70 percent.
Nomura View On Tata Motors
Research firm Nomura has kept buy rating on Tata Motors with a target at Rs 520 per share.
Nomura expect Tiago EV to sell 3,000-5,000 units per month.
Every 1 percent market share gain in PVS has potential to add Rs 5000 crore to market-cap, reported CNBC-TV18.
Tata Motors was quoting at Rs 396.60, up Rs 3.30, or 0.84 percent on the BSE.
Morgan Stanley View On Infosys
Brokerage firm Morgan Stanley has kept overweight rating on the stock with a target at Rs 1,550 per share.
The sudden departure of Ravi Kumar comes as a negative surprise, however, do not expect any disruption in business momentum.
See potential for a buyback of USD 1-1.4 billion, more likely through an open offer.
The buyback could lend some support to stock in a volatile macro environment, reported CNBC-TV18.
Infosys was quoting at Rs 1,427.00, up Rs 3.10, or 0.22 percent on the BSE.
Goldman Sachs picks 0.9% stake in IndusInd Bank
Goldman Sachs Investment (Mauritius) I acquired 69,66,712 equity shares in IndusInd Bank via open market transactions at an average price of Rs 1,167.53 per share.
However, Route One Fund I LP sold 1.2 crore shares at an average price of Rs 1,168.26 per share.
IndusInd Bank was quoting at Rs 1,188.00, up Rs 23.60, or 2.03 percent.
Som Distilleries signs manufacturing pact with Radico Khaitan
Som Distilleries entered a contract manufacturing arrangement with Radico Khaitan Limited for the manufacturing of their IMFL and Ready to Drink brands at its plant at Hassan, Karnataka.
Market at 3 PM
Benchmark indices extedned the gains and trading at day's high level with Nifty around 17100.
The Sensex was up 452.53 points or 0.79% at 57599.85, and the Nifty was up 131.00 points or 0.77% at 17114.50. About 1470 shares have advanced, 1709 shares declined, and 128 shares are unchanged.
BSE Bank index rose nearly 1 percent led by the Axis Bank, Bank of Baroda, Federal Bank
Rupee Updates
Indian rupee is trading flat at 82.33 per dollar against previous close of 82.32.
REC transfers entire shareholding in ER-NER Transmission to Power Grid Corporation
REC has transferred its entire shareholding in ER-NER Transmission at par value along with all its assets and liabilities to Power Grid Corporation of India.
Power Grid is the successful bidder selected through tariff based competitive bidding process, for development of 'transmission system for evacuation of power from ER-NER SEZ.
Its subsidiary REC Power Development & Consultancy, the owner of ER-NER Transmission, has received the amount for stake transfer, comprising of professional fees of bid process coordination, interest cost and reimbursement of expenditure incurred on the project.
REC was quoting at Rs 92.60, up Rs 0.50, or 0.54 percent on the BSE.
S Ranganathan, Head of Research at LKP Securities
:
Indian Footwear Industry is witnessing a very unique characteristic wherein emerging players with new ideas are beginning to challenge the might of sector leaders - Bata India and Relaxo Footwears. While rising input costs and inflationary pressures are a headwind, emerging fashion trends and tie-ups with foreign brands have provided structural tailwinds to emerging players. Our thesis played out well in Metro Brands over the last couple of months and we expect the value proposition with fashionable trends to positively rub off on smaller players like Khadims India as the Indian footwear Industry has the potential to grow at15% annually. Opportunities are also emerging in Asia Pacific countries.
Tracxn Technologies IPO updates
The initial public offering of global market intelligence provider Tracxn Technologies has seen a muted response, with the IPO subscribed 1.66 times by the afternoon of October 12, the final day of bidding. Investors have, so far, bought 3.53 crore equity shares against 2.12 crore shares on offer, data available with exchanges show.
The portion set aside for retail investors was fully booked on the first day itself and has been bought 4.02 times the allotted size, while the part set aside for non-institutional investors has been subscribed 67 percent. Qualified institutional investors have bought 1.37 times or 1.58 crore shares allotted to them.
European Markets Updates
Market update at 2 PM: Sensex is up 367.16 points or 0.64% at 57514.48, and the Nifty added 103.30 points or 0.61% at 17086.80.
Rupee Updates
Indian rupee is trading marginally lower at 82.36 per dollar against previous close of 82.32.
Fino Payments Bank picks 7.98% stake in Paysprint
PaySprint has finalised allotment of its 867 equity shares (7.98% stake) to Fino Payments Bank at a premium of Rs 28,801 per share on a face value of Rs 10 per share. The total investment is Rs 2.49 crore.
Fino Payments Bank was quoting at Rs 194.35, up Rs 2.65, or 1.38 percent.
Eveready Industries gets in-principle approval from Karnataka govt for allotment of 15 acres of land
Eveready Industries India has received in-principle approval from the Government of Karnataka for allotment of 15 acres of land by KIADB at Immavu Industrial Area, Mysuru District for the purpose of establishment of a manufacturing plant for Fibre Cement Boards / Rapicon Panels.
Nifty metal index fell 1 percent dragged by the Welspun Corp, Adani Enterprises, Vedanta
BSE Capital Goods index shed 0.5 percent dragged by the Thermax, Elgi Equipments, Praj Industries
Oil recoups some losses
Oil futures recouped some losses on Wednesday after dropping by 2% in the previous session, supported by supply worries stemming from OPEC+ production cuts, although a stronger dollar weighed on market sentiment. Brent crude futures were down 2 cents, or 0.02%, to $94.27 a barrel by 0727 GMT after hitting a session low of $93.33 a barrel.
U.S. West Texas Intermediate crude was at $89.14 a barrel, down 21 cents, or 0.24%. The contract fell to a session low of $88.27 per barrel earlier in the day.
Star Housing Finance to consider stock split, bonus issue on October 17
A meeting of the board of directors of the company will be held on October 17, 2022, to consider and approve the Un-audited Financial Results of the company for the quarter and half year ended September 30, 2022.
The board of directors of the company will also consider a proposal for issue of fully-paid bonus equity shares to the shareholders of the company and/or sub-division of equity shares of the company.
Today’s Stock Market Action
Bond buying scheme will end this Friday, said Bank Of England: Bloomberg
Apollo Hospitals Enterprises Large Trade | 2.53 lakh shares (0.2% equity) worth Rs 108.1 crore change hands at an average of Rs 4,324 per share.
Apollo Hospitals Enterprises was quoting at Rs 4,335.00, up Rs 63.35, or 1.48 percent on the BSE.
Tracxn Technologies IPO
The initial public offering of global market intelligence provider Tracxn Technologies has seen a muted response, with the IPO subscribed 1 time by the afternoon of October 12, the final day of bidding.
Investors have, so far, bought 2.10 crore equity shares against 2.12 crore shares on offer, data available with exchanges show.
The portion set aside for retail investors was fully booked on the first day itself and has been bought 3.49 times the allotted size, while the part set aside for non-institutional investors has been subscribed 59 percent.
Qualified institutional investors have bought 36 percent or 41.48 lakh shares allotted to them.
Cabinet approves one-time compensation to OMCs on LPG, quoting Sources, reported CNBC-TV18.
Gujarat Pipavav Q2 Business Update:
BSE FMCG index added 1 percent led by the Sukhjit Starch, Triveni Engineering, Dabur India
CLSA View On SJVN
CLSA has kept buy rating on SJVN with a target at Rs 42 per share.
The compay has increased execution in H1 with its ambition to double capacity by 2023 and saw many strategic wins in H1 to move towards its 50 GW vision.
See comapny’s REE doubling over FY22-25, driving EPS to increase by 45%, reported CNBC-TV18.
Genesys International bags order
Genesys International Corporation received an order having value Rs 46 crore for Land Titling Project from Andhra Pradesh Government.
Fitch affirms Hindustan Petroleum ratings at ‘BBB-‘; outlook stable, reported CNBC-TV18
Hindustan Petroleum Corporation was quoting at Rs 210.65, up Rs 0.30, or 0.14 percent.
Union Bank Of India hiked lending rate by 15 bps across tenures, reported CNBC-TV18
Sonata Software partners with Ireland based eir evo
Sonata Software has signed an agreement with eir evo, Ireland’s leading Telecommunications and ICT Solutions Provider, to support the standardization of their CRM platform, migrating them from Salesforce to Microsoft Dynamics
Sonata Software was quoting at Rs 517.75, up Rs 5.45, or 1.06 percent.
Rupee Updates:
Indian rupee is trading higher at 82.24 per dollar against previous close of 82.32.
Market at 12 PM
Benchmark indices were trading near the day's high level with Nifty above 17000.
The Sensex was up 297.25 points or 0.52% at 57444.57, and the Nifty was up 86.10 points or 0.51% at 17069.60. About 1248 shares have advanced, 1827 shares declined, and 136 shares are unchanged.
IDBI Bank hikes lending rates by 5-40 bps across loan tenures, reported CNBC-TV18.
IDBI Bank was quoting at Rs 43.90, down Rs 0.70, or 1.57 percent.
Nifty PSU Bank index rose 0.5 percent supported by the Indian Bank, Bank of Baroda, Canara Bank
UK Data Watch | UK August industrial output falls 1.8% MoM
L&T Finance Holdings gets Sebi approval for sale of L&T Investment Management to HSBC
L&T Finance Holdings has received approval from Sebi for sale of 100% shareholding in subsidiary L&T Investment Management to HSBC Asset Management (India).
With this approval, all necessary actions are being taken to ensure completion of the proposed transaction, said the company.
L&T Finance Holdings was quoting at Rs 76.95, up Rs 1.95, or 2.60 percent on the BSE.
