Ajit Mishra, VP - Research, Religare Broking
Markets witnessed a decent surge on Friday and gained nearly a percent. Strong recovery in the global indices combined with upbeat earnings triggered a gap-up start in Nifty however profit taking in the latter half trimmed the gains. It finally settled at 17,185.7 levels; up by 1.01%. Among the sectors, banking, financials and IT contributed the maximum while realty, energy and auto were on the back foot.
Markets have been consolidating for the last two weeks amid mixed cues and we expect this to end soon. Meanwhile, participants should maintain their focus on sectors and stocks which are showing resilience despite the prevailing uncertainty and utilise this phase to accumulate them.
Vinod Nair, Head of Research at Geojit Financial Services.
The domestic market showed an uptick, in-line with the surprise bounce in the US market. Initially the US market fell because the data exceeded the forecast. However, it recovered quickly, due to the oversold state of the market.
The rally in the domestic market was led by large caps, with IT and banking at the forefront due to the robust start to Q2 earnings. The rally can continue in the short-term led by festival demand, Q2 results and positive trend of the global market.
Raghvendra Nath, Managing Director – Ladderup Wealth Management.
The WPI like CPI still remains at elevated levels even though it has come down a bit from last month. The easing of inflation has primarily been on account of easing commodity prices globally. There is a good likelihood that global commodities may correct even further as the developed world faces the risk of recession which in turn would mean reduced demand.
Even in India, with the festive season coming to an end, the months ahead may see tepid demand in comparison to the first half. We feel that WPI inflation should ease further in the next 4 to 6 months.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty had a strong leap from the support zone of 17,000-16,950. It broke out from a triangular pattern on the hourly chart & surpassed the key daily moving averages with an opening gap.
The index, however, failed to build upon the early gains. On the contrary, it witnessed fresh round of selling in the second half of the session.
The overall structure shows that the index is still in the short term consolidation phase. In terms of the price patterns, it can form a triangular pattern on the daily chart. This implies that the range bound action can continue in the short term. The index can revisit 17,050 on the downside. On the other hand, the near term resistance is at 17,350.
S Hariharan, Head Institutional Equity Sales, Emkay Global Financial Services
FII flows into India have turned negative for the last few sessions, after a positive start in October. As a result, despite expectations of a strong earnings season, the broader market has been moving sideways, with DII inflows offsetting FII selling. Fears of potential earnings downgrades for IT stocks have not materialized thus far, while Banks are expected to report strong earnings in the coming couple of weeks.
We expect the current bout of macro volatility to continue to cap any meaningful upsides in the indices, strong fundamentals notwithstanding. Consumer staples and discretionary names have been seeing some pressure on account of concerns related to margins going forward with commodity prices picking up again.
S Ranganathan, Head of Research at LKP securities
With Inflation becoming the most widely watched economic statistic globally, yesterday's inflation print in the US saw extreme volatility there and as expected our markets opened gap up in sync with global cues.
IT & Financials buoyed by earnings led the rally before profit taking in Energy stocks wiped off a bit of gains. The broader markets did see buying interest in select stocks on the back of quarterly earnings although the gains were visible only across Large Cap names.
Rupee Close:
Indian rupee closed flat at 82.36 per dollar against previous close of 82.35.
Market Close:
Benchmark indices ended on positive note on October 14 with Nifty around 17,200
At Close, the Sensex was up 684.64 points or 1.20% at 57,919.97, and the Nifty was up 171.40 points or 1.01% at 17,185.70. About 1757 shares have advanced, 1591 shares declined, and 146 shares are unchanged.
Infosys, HDFC Bank, HDFC, UPL and HCL Tech were among the top Nifty gainers. ONGC, M&M, Bajaj Auto, JSW Steel and Hindalco Industries were the top losers.
Among sectors, bank, capital goods, healthcare, IT, up 0.5-1.8 percent, while metal, power and realty indices down 0.5-1 percent each.
BSE Midcap and Smallcap indices ended on flat note
JPMorgan On Mindtree
JPMorgan has kept underweight rating on the stock with target at Rs 3,000 per share.
There was a strong print but cautious outlook; meanwhile merger will be key to watch.
The Constant Currency QoQ growth of 7.2% 170 bps ahead of estimate. The margin declines 60 bps due to wage hikes.
See concerns from a potential slowdown that already impacted deal decision making, reported CNBC-TV18.
BSE Realty index shed 0.7 percdnt dragged by the Phoenix Mills, Indiabulls Real Estate, Macrtech Developers
Indian rupee Updates:
Indian rupee is trading marginally lower at 82.40 per dollar against previous close of 82.35.
Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas
The US Dollar Index is expected to rise further as the turnaround in the markets lacks any coherent narrative or solid fundamental reason, however in near-term a lot will depend on the risk sentiments. Traders will keep a close watch on the US retail sales and U. of Michigan inflation expectations data to be released tonight.
The USDINR pair may decline to Rs 81.50 in near-term, though we expect the pair to rise to 83 in the coming days.
Morgan Stanley View On Cyient
Research firm Morgan Stanley has kept underweight rating on the stock with a target at Rs 700 per share.
The uncertain macro environment do not provide confidence on revenue growth guidance. The margin excluding one-offs was good sequentially, reported CNBC-TV18.
Nomura On Mindtree
Brokerage house Nomura has kept neutral rating on the stock and raised the target to Rs 3,180 per share.
The Q2 results deliver a beat on all parameters. The revenue performance was strong considering the weakness in the retail vertical.
The margin performance was impressive, expect margin of 19.2% in FY23, reported CNBC-TV18.
Power Mech Projects bags contract from Bangalore Metro Rail Corporation
Power Mech Projects has received a Letter of Award worth Rs 499.41 crore from Bangalore Metro Rail Corporation. This project is received by the company in joint venture with RITES with 49:51 sharing.
Power Mech Projects was quoting at Rs 1,818.25, down Rs 4.40, or 0.24 percent.
BSE Power index fell 0.5 percent dragged by the Adani Power, ABB, Adani Transmission
Powersector companies are likely to report strong numbers for the quarter ended September 2022 on the back of a 5 percent year-on-year (YoY) growth in demand. The daily peak demand during the quarter was also higher by 4 percent on year.
Market at 3 PM
Indian benchmark indices erased some of the intraday gains but still trading higher with Nifty around 17200.
The Sensex was up 725.24 points or 1.27% at 57960.57, and the Nifty was up 189.50 points or 1.11% at 17203.80. About 1781 shares have advanced, 1413 shares declined, and 124 shares are unchanged.
DMart to report its Q2FY23 numbers on October 15
Consolidated revenue seen at Rs 10,760.10 cr (5 brokers)
Net profit seen at Rs 643 cr (5 brokers)
Analyst recommendations: 13 Buys, 5 Holds and 8 Sells
Morgan Stanley View On Mindtree
Morgan Stanley has maintained equal-weight rating on the stock and raised the target price to Rs 3,400 from Rs 3,150 per share.
The strong beat on results, robust deal wins & solid margin execution are the key positives. The valuations were in-line with larger peers such as TCS, in a volatile macro environment.
Morgan STanley raises revenue estimate by 2.1-3.8% & margin by 41-69 bps, reported CNBC-TV18.
HDFC Bank up 3 percent ahead of its earnings tomorrow
The private sector bank’s net profit is seen at Rs 10,681 crore, an average of estimates of seven brokerages shows. Its core interest income is expected to be Rs 20,594 crore, a growth of 15 percent year-on-year.
Analyst recommendation:40 Buys, 5 Holds and zero Sells
India never had a stock market boom without a US recession, says Marcellus' Mukherjea
Assessing the prospects of IT stocks from a medium to long-term perspective, Saurabh Mukherjea said that companies like TCS, Infosys and HCL Tech have been performing well.... Read More
IRDAI has imposed penalty of Rs 2 crore on Max Life, to be paid by Axis Bank in 21 days, for violation of norms w.r.t share transfer. It has also levied penalty of Rs 1 crore on Max Life Insurance.
Axis Bank was quoting at Rs 794.80, down Rs 7.45, or 0.93 percent.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart:
Indian equity market benchmark indices Sensex & Nifty are up around 2% in today's trading session thanks to a sharp short-covering rally in the US market post CPI numbers. Our markets were also oversold as FII's net short position in the index future was 81% and PCR was 0.71.
Call writers at a 17000 strike price are on the back foot after a gap-up opening therefore we are getting the support of short covering.
The results of Infosys and Mindtree were better than expected which is also supporting the market. The overall outlook of our market is bullish as Nifty is respecting its 200-DMA beautifully.
Investors are advised to look for buying opportunities at every dip. Domestic economy-facing stocks may continue to do well while selective buying in IT, Chemical and Pharma names can be done.
Not evaluating any proposal on Jaypee Cement: Adani Enterprises
In an exchange filing, Adani Enterprises said, "In response to the clarification sought with reference to the subject mentioned news item titled - Gautam Adani closing in on Jaypee cement business. In this respect, it is submitted that the company is not evaluating any such proposal and hence we are not in a position to comment on the veracity of said media report."
Spandana Sphoorty in focus
The board of directors has approved issuance of non-convertible debentures worth Rs 60 crore on private placement basis. The stock is up 3 percent in trade today
Rahul Bajoria, Head of EM Asia (ex-China) Economics Research, Barclays on WPI inflation
WPI inflation continued to moderate, easing to 10.7% y/y in September. The fall in international commodity prices and favourable base effects could slow WPI materially over the coming months. Still, elevated levels of inflation should warrant further rate tightening from policymakers.
Everstone Capital considering selling stake in India’s Restaurant Brands Asia: Sources to Reuters
Private equity firm Everstone Capital is considering selling its stake worth $314 million in Restaurant Brands Asia, the master franchisee of Burger King in India and Indonesia, sources told Reuters.
Coal India inks MoU with RVUNL for 1190 MW solar project
Coal India has signed a memorandum of understanding (MoU)for setting up 1,190 MW solar power project, with Rajasthan Rajya Vidyut Utpadan Nigam, the power generator for state of Rajasthan. This is CIL’s first of its kind MoU for a solar power project with any state government.
In an exchange filing, the company said, "Aimed at an estimated cost of approximately Rs 8,000 crore, CIL’s solar power project is slated to come up in RVUNL’s 2,000 MW solar power park at Bikaner, in a phased manner, in the sunny state of Rajasthan."
At 2:15 PM, the stock was quoting Rs 236.65 apiece on the National Stock Exchange, up 0.9 percent.
TARC launches its luxury residential project TARC Tripundra in New Delhi
The premium project offers 3 and 4-BHK homes priced Rs 4.5 crore onwards. Amar Sarin, CEO & Managing Director said, “TARC Tripundra has been launched keeping in mind the aspirations of homebuyers to live within the Capital without worrying about the city’s hustle and bustle."
Markets at 2 PM
Sensex is up 846.73 points or 1.48 percentat 58,082. Nifty is up 231.90 points or 1.36 percent at 17,246.20. About 2024 shares have advanced, 1144 shares declined, and 120 shares were unchanged.
Strong results pop Angel One and Anand Rathi Wealth
Anand Rathi Wealth's consolidated net profit for the September quarter stood at Rs 43 crore, an increase of 41 percent from a year ago. Angel One's consolidated profit after tax came in at Rs 213…... Read More
Chemcon Speciality Chemicals purchases land for business operations
Chemcon Speciality Chemicals has purchased land in Vadodara for its business operations. The total cost of acquisition of land is Rs 22.3 crore. These transactions of purchase of properties are related party transactions.
Chemcon Speciality Chemicals was quoting at Rs 430.65, up Rs 5.90, or 1.39 percent on the BSE.
Airtel Africa acquires 60 MHz of additional spectrum
Airtel Africa acquires 60 MHz of additional spectrum across 800 MHz & 2,600 MHz bands for USD 29 million, reported CNBC-TV18.
Bharti Airtel was quoting at Rs 772.85, up Rs 4.05, or 0.53 percent.
Roto Pumps receives purchase order of Rs 3.9 crore from oil company
Roto Pumps received a major Purchase Order for Twin Screw Pumps amounting to ~ Rs 3.90 crore from a leading Oil Company for its new lube oil blending plant.
The supply of the said order is to be completed in tranches by the second quarter of the next financial year.
KRChoksey View on Infosys
Infosys is currently trading at a valuation with a P/E multiple of 24.7x/19.6x on FY23E/FY24E earnings. Despite more verticals are turning cautious and point towards an expected slowdown in 2HFY23, Infosys’ strength in managing the twin journeys of digital transformation and cost takeout will drive growth leadership and we are assigning a P/E multiple of 25x to the FY24 estimated EPS of Rs 72.2 to arrive at a target price of Rs 1,805 per share, an upside of ~27% over the CMP. We maintain our rating to “BUY” rating to the stock.
NLC India signs MoU with BHEL to develop indigenous technology for lignite gasification
NLC India has entered into a Memorandum of Understanding with BHEL to develop indigenous technology for Lignite Gasification.
The MoU will enable NLCIL in developing indigenous technology and study the feasibility of using Lignite for Power Generation through Gasification and the Production of value added chemicals, company said in its release.
NLC India was quoting at Rs 69.00, up Rs 0.30, or 0.44 percent.
Shree Cements in focus ahead of its September quarter earnings
Elara Capital View on Infosys
We revise FY24E-25E EPS estimate 2-3% on sharp INR depreciation. We maintain Accumulate with a revised Target Price of Rs 1,520 (INR 1,580 earlier), on 21.3x one-year forward P/E (with a five-year average), down from 23.5x on subdued growth, going forward.
Expect a USD revenue CAGR of 8.8%, an EBIT CAGR of 13.7% and a PAT CAGR of 12.8% in FY22-25E. We prefer INFO for: 1) broad-based growth, 2) cloud capability-Cobalt (driving most of the growth in 61.8% of digital revenue), and 3) strong revenue growth momentum. But we are cautious given weak macro dragging some pockets of demand.
Infosys was quoting at Rs 1,483.40, up Rs 63.65, or 4.48 percent on the BSE.
Results Today:
Bajaj Auto in focus
Bajaj Auto is expected see good growth in domestic sales volume, but export sales volume could prove a drag on September quarter numbers.
Brokerages expect the auto major’s revenue to grow around 20 percent quarter-on-quarter (QoQ) and around 10 percent year-on-year (YoY), and operating profit to rise 20-21 percent QoQ and 11-12.5 percent YoY. Read More
NITCO CFO Shirish Suvagia resigns
Shirish Suvagia has resigned as Chief Financial Officer of NITCO with immediate effect.
Market at 1 PM
Indian benchmark indices were trading higher in the sfternoon trade with Nifty around 17300.
The Sensex was up 958.37 points or 1.67% at 58193.70, and the Nifty was up 267.20 points or 1.57% at 17281.50. About 2193 shares have advanced, 954 shares declined, and 121 shares are unchanged.
Capital goods companies are expected to report ~15% YoY revenue growth in Q2FY23, according to Sharekhan.
Healthy opening order book would drive ~14% growth for project-based companies, price hikes in the past one year, and uptick in demand would lead to ~20% growth in product-based companies.
HDFC Life gets IRDAI final approval for Exide life merger with itself
The Insurance Regulatory and Development Authority of India (IRDAI) has provided its final approval to Scheme of Amalgamation of Exide Life Insurance Company Limited into HDFC Life Insurance Company Limited.
The appointed date of the scheme is April 1, 2022 and the scheme shall be effective from end of day on October 14, 2022.
Nifty Bank index up 2 percent supported by HDFC Bank, Kotak Mahindra Bank, AU Small Finance Bank
According to analysts, financials, particularly the leading banks, are likely to come up with very good numbers in the coming days. IT and financials can impart resilience to the market in the near-term.
Which IT stock should you buy, hold or sell after Q2FY23 earnings? We've got you covered. Take a look at what analysts are recommending
Jefferies View on Infosys:
Jefferies kept a buy rating on Infosys with a target of Rs 1,700.
The Q2 was ahead of estimates, with revenues up 4% sequentially.
The margin surprised positively due to lower subcontracting costs.
Federal Bank Q2 Results
Net profit was up 52.8% at Rs 703.71 crore versus Rs 460.3 crore and Net Interest Income (NII) was up 19% at Rs 1,762 crore versus Rs 1,479.4 crore, YoY.
Federal Bank was quoting at Rs 127.90, up Rs 3.10, or 2.48 percent.
BSE Capital Goods index added 1 percent led by the L&T, BHEL, Elgi Equipments
Moneycontrol Exclusive | Securities Appellate Tribunal directs interim stay on SEBI order against Brickwork Ratings. Final hearing on Brickwork Ratings vs Sebi case on November 15
For context, market regulator, Seurities and exchange board of India (Sebi) on October 6 had issued a winding up order against Brickwork Ratings citing major lapses in its operations including in the case of Bhushan Steel. The action followed probes by the market regulator, along with banking regulator,the Reserve Bank of India (RBI).
