Mohit Nigam, Head - PMS, Hem Securities:
Indian Benchmark Indices rose for the fifth consecutive session and closed at record high levels today. Strong buying is seen in Auto, Metal and IT stocks while some selling pressure is seen in Realty stocks.
Tata Motors zoomed 20% today and was the top gainer in Nifty 50 today, this surge was majorly due to investment of Rs 7500 crore by the TPG group in Tata Motor’s EV subsidiary. Almost all the Tata Group Companies were on a roll today. Investors are expecting earnings today from big IT names such as Wipro and Infosys. These results will guide whether the bull-run in the IT sector would continue or we may witness some profit booking in this space.
On the technical front, Nifty 50 is able to sustain 18,000 levels and we may witness markets to touch 18,300 levels in the coming session. The 17,800 level is an immediate support in Nifty 50.
Palak Kothari, Research Associate at Choice Broking:
On the back of SGX nifty, the Index opened on a positive note and showed an upside rally and made a new life-time high at 18197.80 level and closed the session at 18161.75 level with a gain of 169.80 levels. While Bank Nifty closed the session at 38635.75 levels with a gain of 114.25 points.
On the technical front, the Index has given a breakout of the rising trendline as well as given a close above the same, which points out buyers are active. A daily momentum indicator Stochastic and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price.
The ADX indicator is reading at 38 with +DI trading above – DI, which points out strength in the counter. Furthermore, the price has also moved above the upper “Bollinger Band” formation, which suggests the bullish movement will continue further in the near term. At present, the Index has been trading at uncharted territory with immediate support at 18000 level while sustained above the same can show 18300-18400 levels.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Markets witnessed a stellar rally as both Sensex and Nifty scaled to fresh record highs, largely dominated by auto and IT stocks. Benchmark Nifty maintained a strong breakout continuation formation which clearly suggests further uptrend from current levels.
We are of the view that the short term chart formation is still in to the long side but due to an overstretched intraday rally the bulls may take a caution stance between 18250-18275 levels.
For day traders, 18100 would act as a key support level. Above the same, the uptrend wave will continue up to 18200-18275 levels. On the other hand, dismissal of 18100 could possibly trigger a correction wave up to 18040-17980 levels.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The hallmark of today's record breaking moves by the Sensex and Nifty is the surge in Tata stocks led by Tata Motors and strongly supported by Tata Consumer, Tata Chemicals and Tata Power. Surge in a heavy weight like Tata Motors by more than 20 percent in a day is extremely rare. But this surge is backed by positive news of massive investment of Rs 7500 crore by TPG. Another important feature is the good performance of HDFC Bank which is showing signs of coming back as a market leader.
Vinod Nair, Head of Research at Geojit Financial Services:
The mood of the global market is muted by inflation fears & high bond yields ahead of the release of US inflation data. However, the Indian market is robust due to the festival season. Best performers are auto, metal and power sectors in expectation of high demand.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed some positive movements after Nifty was able to sustain level of 18000. It is going to be crucial for the short-term market scenario to sustain above 18000 support zone.
If the market is able to sustain the level of 18,000, it can witness higher levels of 18250-18300. The momentum indicators like RSI and MACD indicating positive momentum is likely to continue.
S Ranganathan, Head of Research at LKP securities:
Auto stocks led by Tata Motors propelled the Nifty to new highs of 18200 with good support from infra & metal stocks on the launch of the Master Plan for infrastructure development and multi- modal connectivity.
As the street awaits earnings today from big IT names, Tata Group stocks hogged the limelight despite profit taking in late afternoon trade.
Market close:
Benchmark indices ended at fresh record closing high levels supported by the auto, IT, metal and infra stocks.
At close, the Sensex was up 452.74 points or 0.75% at 60,737.05, and the Nifty was up 169.80 points or 0.94% at 18,161.80. About 1602 shares have advanced, 1504 shares declined, and 118 shares are unchanged.
Tata Motors, M&M, Tata Consumer Products, Power Grid Corp and ITC were among the major gainers on the Nifty. Maruti Suzuki, ONGC, Coal India, SBI Life Insurance and HUL were among the big losers.
Among sectors, auto index added 3.5 percent, while energy, infra, IT, metal, power and capital goods indices up 1 percent each. The BSE midcap and smallcap indices added 0.6-1.5 percent.
Prime Securities board approves issuing 45.5o lakh shares on preferential basis
The board of directors of Prime Securities at the meeting held on October 13, 2021, has considered and approved the issue of up to 45,50,000 equity shares of face value of Rs 5 each of the company, on a preferential basis, at a price of Rs 88.75 per equity share, aggregating Rs 40,38,12,500 to the investors including Meridian Investments, Anand Jain, Himanshi Kela, McJain Infoservices, Samir Arora and Latika Ahuja.
Prime Securities was quoting at Rs 110.05, up Rs 5.20, or 4.96 percent on the BSE.
Nifty IT index added 1 percent led by the Mindtree, Wipro, Tech Mahindra
Arun Agarwal, Deputy Vice President - Fundamental Research, Kotak Securities:
The TPG group will invest Rs 75 bn in Tata Motors EV subsidiary and the newly formed subsidiary will invest in expanding product offerings. Tata Motors will aggressively launch new products in EV space over the next five years.
Tata Motors would be looking at leveraging its group companies to accelerate EV adoption.
Favorable government policies and further decline in battery prices can rapidly accelerate electrification in the passenger vehicle industry. Tata Motors can establish itself as a formidable player in the EV space in India.
Government cuts customs duty, agriculture cess on the edible oils
Government has cut customs duty and agriculture cess on the edible oils. Government has cut customs duty on crude sunflower oil to nil and cut customs duty on refined sunflower oil to 17.5 percent.
They also cuts customs duty on crude palm oil to nil, reported CNBC-TV18.
Market at 3 PM
Benchmark indices were trading near the day's high level with Nifty above 18100.
The Sensex was up 454.79 points or 0.75% at 60,739.10, and the Nifty was up 169.50 points or 0.94% at 18,161.50. About 1640 shares have advanced, 1465 shares declined, and 106 shares are unchanged.
Rajeev Vijay, Executive Director, Government and Infrastructure Advisory at Knight Frank India
The National Master plan is to lay a foundation for holistic infrastructure and give an integrated pathway for delivery of infrastructure and create robust institutional framework for integrated planning, implementation and digital monitoring using integrated KPI design for such projects.
The National Master Plan is sure to transform the infrastructure sector and provide integrated, seamless, timely delivery of infrastructure projects within budgeted costs without any costs of delays and cost overruns due to multiple changes. It will further motivate private companies to associate with government projects and boost the Indian economy.
PM GatiShakti plan holistically integrates all road, railways, airports and multi-modal connectivity projects. The plan removes the missing gaps for a seamless and efficient conduct of logistics and economic activity by minimizing disruptions.
GatiShakti will incorporate the infrastructure schemes of various Union ministries and state governments — Bharatmala, Sagarmala, UDAN, inland waterways, dry/land ports etc. The plan will also ensure quick completion of works with cost efficiency. The idea is to get all relevant stakeholders aligned for creating the right size infrastructure at a suitable location expeditiously – right from visioning, planning to execution and O&M.
Vested Finance Launches Vested Direct
Vested Finance, an online investment platform that enables Indian investors to invest in the US stock market, announced its partnership with SBM Bank India, to enable an easier, faster & seamless experience to deposit funds into Vested accounts.
"As per the partnership, Vested Finance and SBM Bank India have launched a first-of-its-kind online cross border fund transfer solution in India, called Vested Direct. Traditionally, Indian investors looking to invest in US funds like Apple, Amazon, Facebook & Microsoft, had to use their existing bank accounts to transfer funds. This involved multiple steps and investors had to incur high foreign exchange markups and fixed transfer charges. The transfer would take up to 5 days. With Vested Direct, the process is a significantly better experience with simple steps to initiate a transfer, lower charges, and a faster deposit timeline," said Vested Finance in its release.
Viram Shah, Co-Founder & CEO of Vested Finance said they have seen rapidly increasing interest, amongst Indian investors, to diversify their portfolios internationally.
Asian Energy Services signs long term MOU with RosGeo
Asian Energy Services has signed an MOU with Russian Joint Stock Company Rosgeologiafor long-term cooperation in seismic and geophysical surveys in India and other countries.
"Under this MOU both AESL and RosGeo will jointly consider opportunities in offshore, onshore and transit geophysical work including data acquisition, processing and interpretation. The cooperation between both parties expands to aero-geophysical, gravity & magnetic surveys as well and other services including drilling as mutually agreed between AESL and RosGeo," said the company in its BSE filing.
Grasim Signs Agreement With Power Producer
"The company has executed a Supplemental Share Subscription Agreement with Renew Green Energy Solutions Private Limited (Renew) & Renew Surya Uday Private Limited and Power Purchase Agreement with Renew Surya Uday Private Limited (Power Producer)," said Grasim in its BSE filing.
The purpose of entering into the agreement is to operate and maintain 16.68 MW Wind-Solar Hybrid power plant in Gujarat wherein the power generated will be supplied exclusively to Grasim under the Captive Rules, the company added.
The project will be operated by Renew Surya Uday Private Ltd (power producer).
7 Stocks Under F&O Ban on October 13
Seven stocks namelyBank of Baroda, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network are under the F&O ban for October 13.
Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
Top Gainers and Losers in the BSE Sensex
Crude Updates
Oil prices corrected moderately amid volatility today as experts feel rising inflation worries due to elevated coal and natural gas prices in key markets could hit global growth that ultimately may reduce oil demand.
Brent crude futures, the international benchmark for oil prices, fell half a percent to $83 a barrel, while the US crude futures traded at $80.25 a barrel, down half a percent.
Results on October 13
Infosys, Wipro, Mindtree, Advik Laboratories, Aditya Birla Money, Morarka Finance, National Standard, Perfect-Octave Media Projects, Plastiblends India, Raghav Productivity Enhancers, SDC Techmedia, Sanathnagar Enterprises, Stratmont Industries, and Unistar Multimedia will release quarterly earnings on October 13.
Thomas Cook India & SOTC Ink Strategic Agreement With Air Arabia
"Signalling a clear intent to capitalise on the strong and growing opportunity presented by the India market, Thomas Cook (India) Limited, India’s leading integrated travel services company and its Group Company, SOTC Travel., have signed a 3 year agreement with Air Arabia, the first and largest lowcost carrier (LCC) operator in the Middle East and North Africa," said Thomas Cook in its BSE filing.
The partnership will deliver on a range of customisable air-inclusive holidays via a technology platform built by Thomas Cook India and SOTC.
Market at 2 PM
Benchmark indices were trading at fresh record high in the afternoon session with Nifty near to 18200.
The Sensex was up 527.27 points or 0.87% at 60811.58, and the Nifty was up 195.90 points or 1.09% at 18187.90. About 1710 shares have advanced, 1364 shares declined, and 119 shares are unchanged.
KRChoksey on Tata Motors
With improving volume demand domestically and on international front backed by cost optimization and cash saving initiative, we expect the company will grow at CAGR of 22%/26% in topline/EBITDA over FY21/23E. Since our last recommendation, the stock price has achieved our target price of Rs 394.
Further, we have revised our FY23E EPS of Rs 30.9 (earlier Rs 18), and we apply a P/E multiple of 16x (earlier 22x) on FY23E EPS to arrive at revised target price of Rs 495 (earlier Rs 394) per share, implying upside potential of 17.7%. Accordingly, we reiterate our buy rating on the shares of Tata Motors.
Venkatesh Prasad, Partner, JSA:
The NIMP/PM Gati Shakti Plan involves creation of a common umbrella platform/portal through which infrastructure projects can be planned and implemented in an efficacious manner by way of coordination between various ministries/departments on real time basis.
With more visibility and availability of information and data on a real time basis, there will be efficient implementation of infrastructure projects, less information asymmetry between ministries, reduction in working in silos as well as less delays due to lack of coordination between various government agencies.
The platform will also depict multi-modal connectivity which is or would be made available to connect with each region to ensure easier movement of goods, services and people.
Centrum Capital gets banking licence from RBI
Centrum Capital share price rose 19 percent on October 13, a day after it got a small finance bank licence from the Reserve Bank of India (RBI).
"The Reserve Bank of India (RBI) has issued a Small Finance Bank (SFB) licence to the consortium of Centrum Financial Services (Centrum) and Resilient Innovations Private Limited (BharatPe)," Centrum Capital said in a release.
The new SFB has been incorporated as “Unity Small Finance Bank”, it said.
Nifty Energy index rose 1 percent supported by the Tata Power, Power Grid, GAIL
Market at 1 PM
Benchmark indices were trading at fresh record highs with Nifty around 18150.
The Sensex was up 454.45 points or 0.75% at 60,738.76, and the Nifty was up 164.80 points or 0.92% at 18,156.80. About 1724 shares have advanced, 1311 shares declined, and 129 shares are unchanged.
BSE Capital Goods index added 1 percent led by the BHEL, GMR Infra, Kalpataru Power
Prabhudas Lilladher assigns buy rating to Tata Motors:
Tata Motors announced setting up of wholly owned subsidiary dedicated to EVs and infusion of Rs 75 bn ($1B) from TPG in an unincorporated subsidiary
We believe this transaction will lead to huge value unlocking for company given 1) its assertive stance on EV ecosystem, 2) early over advantage 3) market share gains from well strategized product pipeline in emerging segment and 4) benefit from new product launches and PV focused strategy in traditional ICE segment.
Jyoti Roy - DVP- Equity Strategist, Angel One:
The Nifty has touched new all-time highs today on the back of optimism due to continued improvement in economic activities. There has been a significant improvement in economic activities led by services in September given further relaxation in restrictions due to significant decline in new Covid cases.
Expectation of further improvement in demand during the ongoing festive season along with strong FII and DII flows are also supporting the rally. However, any further deterioration in the global energy crisis will lead to higher energy prices and coal shortages for a longer period of time which can have an adverse impact on growth and is one of the key risks to the current market rally.
Market Updates
Benchmark indices extended the early gains with Nifty above 18100 level.
The Sensex was up 373.61 points or 0.62% at 60657.92, and the Nifty was up 146.20 points or 0.81% at 18138.20. About 1752 shares have advanced, 1278 shares declined, and 113 shares are unchanged.
Capacity Expansion
UltraTech Cement on October 13 said it has commissionedthe cement capacity of 1.2 million tonnes per annum (MTPA) in October2021,which is the first phase of the 19.5 mtpa capacity expansion announced in December2020.
"This additional capacity will help the Company to service the fast-growing cement demand in the Eastern markets and will also help in increasing its blended cement ratio. The Company’s total cement manufacturing capacity in India now stands increased to 112.55 mtpa," said the company in its BSE filing.
Top F&O Gainers
IndiaRF Invests Rs 310 crore in Primacy Industries
India Resurgence Fund (IndiaRF), a joint venture between Piramal Enterprises Limited and Bain Capital Credit, announced an equity investment of Rs 310 crorein Primacy Industries. The investment proceeds will be used towards strengthening the balance sheet of Primacy and providing fresh capital to fuel its ambitious growth plans, said the company in its press release.
Primacy is a leading manufacturer in the fast-growing contracting business for fragrance-based consumer products in air care, personal care and health & hygiene categories.
D.R.E Reddy, CEO and Managing Partner at CRCL LLP:
The CPI inflation data has eased to a 5 month low of 4.35%. This is in line with the forecast by the RBI. The positive outcome is backed by various measures taken by the central bank and Union government. The liquidity injection program has helped fund flows into the economy, lower rates. However, the high oil price and food price inflation are a worry.
IIP has grown due to unlocking measures and festive demand buying. As we move forward, industrial output and economic growth is expected to improve with further normalization of business activities.
Market at 11 AM
Benchmark indices continued to trade higher on October 13 supported by the auto, metal, power names.
The Sensex was up 376.41 points or 0.62% at 60660.72, and the Nifty was up 141.60 points or 0.79% at 18133.60. About 1821 shares have advanced, 1156 shares declined, and 104 shares are unchanged.
Nifty metal index added 1 percent led by Jindal Steel, SAIL, NALCO, Tata Steel
Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India
The growth in IIP in August is mainly because of the base effect, while on a sequential basis the index has not shown much movement compared to the previous month. IIP is still showing a contraction of around 5% if we compare it to the pre-COVID levels of August 2019. However, in the next few months with the economic activities moving towards normalcy, the IIP is expected to improve as being reflected by many other high frequency economic indicators.
CPI inflation was expected to drop in September 2021, with the base effect kicking in. Nevertheless, it comes as a relief for the policy makers specially at a time when economic growth is just about gathering momentum. However, high core inflation and fuel inflation remains a cause of concern. With global economic growth gathering momentum, there could be further upward pressure on commodity prices and Central Bank would be wary of that. However, there is unlikely to be any change in policy rates in the current year.
Buzzing
Reliance Industries (RIL) share price rose on October 13 after the company announced an investment in the Germany-based company in its clean energy push.
"Reliance New Energy Solar (RNESL), the wholly-owned subsidiary of Reliance Industries (RIL), will invest 25 million euros (USD29 million) in Germany’s NexWafe GmbH, the company said in a release.
RIL also announced that RNSEL had partnered with Stiesdal A/S to develop and manufacture hydrogen electrolysers. RNESL has been given the licence for this, it said in an another statement.
Reliance Industries was quoting at Rs 2,675.70, up Rs 7.15, or 0.27 percent on the BSE.
Nish Bhatt, Founder & CEO, Millwood Kane International:
There is a positive development on both fronts, as inflation cools down and growth picks up. The CPI inflation data for the month of September has eased to 4.35%, it is steadily falling down from the highs witnessed since the start of this financial year. The fall in retail inflation is in line with the RBI forecast made last week. The lower inflation print will help the central bank to keep rates lower for a longer period of time. The elevated crude oil prices and rise in food and core inflation remain a risk.
The IIP has grown above the 11% mark for two consecutive months. Normalization of business activities across the country is one of the reasons. Mining growth at above 20%, higher output from the primary goods, and the consumer non-durables were the primary reasons for the growth in IIP. The rise in factory output, government and RBI's focus on growth over inflation coupled with a good monsoon year augurs well for higher overall GDP growth.
Market at 10 AM
Benchmark indices are trading near the record high levels with Nifty above 18,100.
The Sensex was up 308.06 points or 0.51% at 60,592.37, and the Nifty was up 120 points or 0.67% at 18,112. About 1828 shares have advanced, 981 shares declined, and 114 shares are unchanged.
RBI authorises Karur Vysya Bank to collect direct taxes
Reserve Bank of India (RBI) has authorized Karur Vysya Bank to collect Direct Taxes on behalf of Central Board of Direct Taxes (CBDT), company said in the release.
Following the approval received, the bank has initiated the integration process with CBDT. Once completed, customers of the bank can remit their Direct Taxes through any branch, Net Banking and DLite Mobile app of the bank, it added.
Karur Vysya Bank was quoting at Rs 48.80, up Rs 0.35, or 0.72 percent on the BSE.
Hero MotoCorp partners with Gilera Motors Argentina
Hero MotoCorp has partnered with Gilera Motors Argentina to reinvigorate and expand its operations in Argentina – one of the key markets in South America, company said in the release.
Hero MotoCorp and Gilera Motors Argentina have entered into an agreement, as part of which Gilera Motors will be the exclusive distributor for the sale and service of Hero MotoCorp motorcycles and scooters in the country. It will also make new investments in operations to drive business growth, it added.
Hero MotoCorp was quoting at Rs 2,918.30, up Rs 2.75, or 0.09 percent on the BSE.
Madhavi Arora, Lead Economist, Emkay Global Financial Services.
Price pressure remain contained and surprised pleasantly helped by base effects and a drop in food prices. Core CPI inflation also picked up marginally to 5.99% on a spike in oil prices and high corporate input costs. We maintain inflation is likely to average a tad lower than RBI’s newly revised 5.3% for FY22.
Going ahead, while favourable base effect and managed food inflation will see inflation further going down, but supply-side bottlenecks, higher energy and commodity inflation and high pump prices would pose a countering upside pressure on inflation. Besides, the pass-through to output prices and core inflation is still getting somewhat tempered given output slack – reaffirming MPC’s accommodative stance on the key rates.
