Vinod Nair, Head of Research at Geojit Financial Services:
Despite a flat start to the week, domestic markets lost ground to slip into negative territory tracking dull global cues and mixed corporate earnings. Continuous selling by FIIs during the week fanned investor cautiousness.
Global markets turned weak although the European Central Bank decided to keep policy rates unchanged despite the inflationary pressure while slow GDP growth in the US tested investor confidence.
Private sector banks witnessed a fatigue week although the sector witnessed improvement in business along with better asset quality.
India’s manufacturing and services PMI data to be released next week will be a key indicator in determining the economic progress for the month of October.
Additionally, decisions of the Fed in its meeting next week will be a major factor that will drive global equities in the coming days.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:
The markets have closed at a crucial point. Today's low of the Nifty has become a support for the short term trend.
If we break 17550-17500, sell signals would get activated which can drag the index down to 17200.
On the upside 17900 is a stiff resistance and any expectations of trading on the long side will only emerge post this level. Stops are wide and traders should exercise extreme caution.
Ajit Mishra, VP - Research, Religare Broking:
Markets traded under pressure for the second consecutive session and lost nearly a percent, in continuation to the prevailing corrective phase.
After the sharp decline in early trades, the benchmark recovered almost vertically in no time but selling pressure at the higher levels again pushed the bulls on the back foot. Finally, the Nifty ended down by 1% at 17,672 levels. A mixed trend was witnessed on the sectoral front wherein IT and banking were the top losers.
Earnings disappointment combined with feeble global cues is weighing on the sentiment. Apart from the earnings announcements, participants will be closely eyeing the upcoming US Fed meet and auto sales numbers for cues. Indications are pointing towards further slides, so participants should maintain a cautious approach and prefer a hedged approach.
Rohit Singre, Senior Technical Analyst at LKP Securities:
After showing a strong volatile week, index closed a week at 17672 with loss of more than two percent and formed a bearish candle after forming bearish piercing candle last week hinting weakness.
On daily chart index reached to its good support zone 17600-17500 zone. So if mentioned levels survived then one can again expect decent pullback towards 17800-17900 zone, which are the immediate resistance also on the higher side, fresh move only possible above 18k mark.
Vinod Nair, Head of Research at Geojit Financial Services:
The domestic market continued to witness selling as energy and private bank stocks remained under pressure following dull global sentiments.
European markets opened weak even as the ECB decided to keep policy rates unchanged despite the inflationary pressure.
US futures are trading in red following slow GDP growth and disappointing earnings from tech giants. Decisions of the Fed in its meeting next week will be a major factor that will drive global equities in the coming days
Joseph Thomas, Head of Research, Emkay Wealth Management:
The equity markets trended lower for the week owing to selling pressure from FIIs. The FIIs have been net sellers to the tune of more than Rs 20K crores for the month of October.
The valuation risks have been one the main concerns for foreign investors, triggered by the downgrading of Indian equity markets from “overweight” to “neutral” by key global brokerages.
The valuation risks are specifically coming to the fore now as few sections of the markets expect growth momentum to slow in the wake of sticky inflation.
Market Close
: Benchmark indices ended on weak note for the third consecutive session on October 29 with Nifty closing below 17,700 level.
At close, the Sensex was down 677.77 points or 1.13% at 59,306.93, and the Nifty was down 185.60 points or 1.04% at 17,671.70. About 1326 shares have advanced, 1836 shares declined, and 157 shares are unchanged.
Tech Mahindra, NTPC, Kotak Mahindra Bank, IndusInd Bank and L&T were among the major Nifty losers. Gainers included UltraTech Cement, Maruti Suzuki, Cipla, Dr Reddy’s Laboratories and Shree Cements.
Among sectors, bank, IT energy, power and oil & gas indices ended in the red, while buying was seen in the realty, pharma, metal and auto names. The BSE midcap and smallcap indices ended with marginal change.
Bharat Electronics Q2 earnings:
Bharat Electronics has reported 54.3 percent jump in its Q2 net profit at Rs 612.6 crore versus Rs 397.1 crore and revenue was up 14.8 percent at Rs 3,660.6 crore versus Rs 3,188.7 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 37.4 percent at Rs 856.5 crore versus Rs 623.5 crore and EBITDA margin at 23.4 percent versus 19.6 percent, YoY.
Bharat Electronics was quoting at Rs 206.70, up Rs 6.30, or 3.14 percent.
USFDA issues form 483 with 8 observations to Dr Reddy's Duwada plant
This is to inform you that the audit of our formulations manufacturing facilities (FTO 7 & FTO 9) at Duwada, Visakhapatnam, by the US FDA, has been completed today. We have been issued a Form 483 with 8 (eight) observations, which we will address within the stipulated timeline, Dr Reddy’s Laboratories said in its release.
Dr Reddy’s Laboratories was quoting at Rs 4,620.90, up Rs 47.60, or 1.04 percent.
LT Foods Q2 earnings:
LT Foods' Q2 net profit was up 5.7 percent at Rs 76.6 crore versus Rs 72.5 crore and revenue was up 7.6 percent at Rs 1,319.8 crore versus Rs 1,226.7 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 1.7 percent at Rs 153.1 Crore versus Rs 150.5 crore and margin at 11.6 percent versus 12.3 percent, YoY.
LT Foods was quoting at Rs 69.45, down Rs 2.05, or 2.87 percent on the BSE.
Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research
We witnessed yet another day of correction in the market as it failed to sustain above the support levels. Our research shows that it is going to be crucial in the short-term for the market to sustain above the 17600 support zone.
If the market is unable to sustain the level of 17600, we can witness lower levels of 17250-17300. Technical indicator suggests, a volatile movement in the market.
Marwadi Shares and Finance view on S.J.S. Enterprises Limited IPO
Considering the FY-21 adjusted EPS of Rs 15.69 on the post-issue basis, S.J.S. Enterprises is going to list at a P/E of 34.54 with a market cap of Rs 16,497 million.
There are no listed companies in India whose business is comparable with that of the company’s business.
We assign a “Subscribe” rating to this IPO as the company is a leading aesthetics solution provider with an extensive suite of premium products in a growing industry with long-standing customer relationships and is available at a reasonable valuation.
Marwadi Shares and Finance view on Sigachi Industries Limited IPO:
Considering the FY-21 adjusted EPS of Rs 10.80 on the post-issue basis, Sigachi Industries is going to list at a P/E of 15.10 with a market cap of Rs 5,011 mn.
There are no listed companies in India whose business is comparable with that of the company’s business.
We assign a “Subscribe” rating to this IPO as the company is one of the leading manufacturers of MCC (cellulose-based excipient) in India with a presence across diverse industry verticals and is available at reasonable valuation on an absolute basis.
Fitch Assigns 'BBB-' IDR to Union Bank of India:
Fitch Ratings has assigned Union Bank of India a Long-Term Issuer Default Rating (IDR) of 'BBB-'. The outlook is negative.
This reflects the outlook on India's sovereign rating (BBB-/Negative). The agency has also assigned Union a Viability Rating (VR) of 'b'.
Union Bank of India was quoting at Rs 46.35, down Rs 0.45, or 0.96 percent.
Nykaa IPO oversubscribed by 3.44 times on Day 2:
Falguni Nayar-promoted and private equity firm TPG-backed FSN E-Commerce Ventures’ maiden public offer was oversubscribed by 3.44 times till afternoon of October 29, the second day of bidding. The offer closes on Monday.
Investors have put in bids for 9.12 crore equity shares against an offer size of 2.64 crore equity shares, the subscription data showed.
Retail investors subscribed for 5.70 times the portion reserved for them and employees have put in bids for 96 percent of portion set aside for them.
Qualified institutional investors have bought shares 3.47 times their reserved portion, and a part earmarked for non-institutional investors was subscribed 1.98 times.
Market at 3 PM
Indian benchmark indices continued to trade lower in the final hour of last session of this week.
The Sensex was down 629.15 points or 1.05% at 59355.55, and the Nifty was down 164.60 points or 0.92% at 17692.70. About 1269 shares have advanced, 1734 shares declined, and 132 shares are unchanged.
BSE Information Technology index gained 1 percent supported by the Allsec Technologies, Aurionpro Solutions, Expleo Solutions
Ajanta Pharma Q2
Net profit was up 15.1% at Rs 195.9 crore against Rs 170.2 crore (YoY). Revenue rose 23.6% at Rs 884.8 crore against Rs 715.9 crore (YoY). EBITDA ws down 4.2% at Rs 262.8 crore against Rs 274.2 crore (YoY) while EBITDA margin came in at 29.7% against 38.3% (YoY).
Escorts Q2
Net profit went down 22.9% at Rs 176.7 crore against Rs 229.1 crore (YoY). Revenue was up 1.4% at Rs 1,662.3 crore against Rs 1,639.7 crore (YoY). EBITDA was down 30.2% at Rs 210.1 crore against Rs 300.9 crore (YoY). EBITDA margin came in at 12.6% against 18.4% (YoY).
Bodal Chemicals Q2
: Net profit at Rs 23.6 crore against Rs 11 crore (YoY). Revenue was up 51.7% at Rs 469.7 crore against Rs 309.7 crore (YoY). EBITDA at Rs 48.5 crore against Rs 22.6 crore (YoY) while EBITDA margin came in at 10.3% against 7.3% (YoY).
European markets are under pressure with FTSE, CAC and DAX trading in the red
Adani Power Q2
Net loss at Rs 230.6 crore against profit of Rs 2,228.1 crore (YoY). Other income at Rs 388.1 crore against Rs 1,043.1 crore (YoY). Revenue was down 33.1% at Rs 5,183.7 crore against Rs 7,749.2 crore (YoY). EBITDA fell 71.2% at Rs 1,163.4 crore against Rs 4,042.6 crore (YoY). EBITDA margin came in 22.4% against 52.2% (YoY).
Emami Q2
Net profit jumped 56.5% at Rs 185.3 crore against Rs 118.4 crore (YoY). Revenue was up 7.3% at Rs 788.8 crore against Rs 734.8 crore (YoY). EBITDA rose 7.8% at Rs 277.1 crore against Rs 257.1 crore (YoY) while EBITDA margin came in at 35.1% against 35% (YoY).
Dr Reddy's Labs Q2
Net profit was up 30% at Rs 992 crore against Rs 762.3 crore (YoY). Revenue rose 18% at Rs 5,763 crore against Rs 4,897 crore (YoY). EBITDA gained 22.9% at Rs 1,557 crore against Rs 1,267.3 crore (YoY) while EBITDA margin came in at 27% against 25.9% (YoY).
Market update at 2 PM
: Sensex is down 559.58 points or 0.93% at 59425.12, and the Nifty fell 136.40 points or 0.76% at 17720.90.
Voltas Q2 results:
Voltas has posted 30.9 percent jump in its Q2 net profit at Rs 104.3 crore versus Rs 79.7 crore and revenue was up 4.8 percent at Rs 1,689.1 crore versus Rs 1,612.5 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 31.9 percent at Rs 129.1 crore versus Rs 97.9 crore and margin at 7.6 percent versus 6 percent, YoY.
Voltas was quoting at Rs 1,208.25, up Rs 52.45, or 4.54 percent on the BSE.
Jefferies on Gujarat Gas:
Research house Jefferies has maintained buy call on the Gujarat Gas but cut the target price to Rs 830 from Rs 900.
Company’s EBITDA missed estimate by 9% on lower margin.
The industry participants hinting at another sharp price hike by the company. Research firm remains comfortable on margin despite sharp rise in spot LNG prices.
It cut FY22 EPS estimate by 8% but kept FY23-24 EPS broadly unchanged.
Gujarat Gas was quoting at Rs 612.80, up Rs 19.80, or 3.34 percent on the BSE.
Santosh Meena, Head of Research, Swastika Investmart:
It was a roller coaster ride for the IRCTC where it fell around 25% in the morning session after overnight news that Govt asks the company to share half of its convenience fee from internet booking with it but we have seen the reversal of this decision around 11 AM that led to a short-covering in the counter.
I believe the stock will remain sideways in the coming days where the upside will be capped around Rs 1000 level and the downside will be protected around Rs 700 level.
Overall fundamentals are still strong for this counter but the market will hesitate to give valuations that it was enjoying before this event because such kind of risk will remain in the mind of investors.
The roller coaster ride led to a sharp rise in option IVs i.e the value of OTM options, therefore, option writers and arbitragers are looking at it as a golden opportunity as uncertainty is out of the window for time being. The option writer may try to keep this counter range-bound for November.
Motilal Oswal Financial Services Q2 results
In Q2FY22, Motilal Oswal Financial Services consolidated revenues grew by 46% YoY at Rs 1,094 crore and consolidated PAT grew by 81% YoY to Rs 536 crore including gains on investments (Rs 267 crore).
The operating profit (excluding gains on investments) for the quarter was highest ever at Rs 269 crore, +118% YoY.
Motilal Oswal Financial Services was quoting at Rs 912.25, up Rs 23.25, or 2.62 percent.
JPMorgan on Bajaj Auto:
Foreign research house JPMorgan has kept overweight rating on Bajaj Auto with a target at Rs 4,400 per share.
The Q2 weakness driven by a combination of commodity inflation & weaker mix. The management indicated that domestic 2W volumes remain sluggish.
On positive side, exports remain steady & domestic 3W recovery should continue.
JPMorgan cut FY22-24 EPS estimates by 3-8%.
Bajaj Auto was quoting at Rs 3,713.50, up Rs 12.90, or 0.35 percent on the BSE.
BSE Auto index rose 1 percent supported by the Maruti Suzuki, TVS Motor, Bosch
Market at 1 PM
Benchmark indices were trading lower in the afternoon session with Nifty around 17800.
The Sensex was down 207 points or 0.35% at 59777.70, and the Nifty was down 44.60 points or 0.25% at 17812.70. About 1372 shares have advanced, 1579 shares declined, and 125 shares are unchanged.
Cadila Healthcare Q2
Cadila Healthcare has reported net profit of Rs 3,002 crore in the quarter ended September 2021 against Rs 473.4 crore in the same quarter last fiscal.
Revenue of the company jumped 3.4% at Rs 3,784.8 crore versus Rs 3,658.9 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 5.8% at Rs 860.8 crore and margin was at 22.7%, YoY.
Cadila Healthcare was quoting at Rs 504.35, up Rs 12.55, or 2.55 percent on the BSE.
Nifty Energy index shed nearly 1 percent dragged by the Tata Power, Adani Transmission, Reliance Industries
IRCTC, Railway board to meet today to discuss revenue sharing
The Railway Board and top officials from the Indian Railway Catering and Tourism Corp Ltd (IRCTC) are scheduled to meet on October 29 at 4 pm to discuss the withdrawal of the revenue sharing model for IRCTC's convenience fee, top officials from the company told Moneycontrol.
The update comes after Tuhin Kanta Pandey, Secretary at the Department of Investment and Public Asset Management (DIPAM). He said that the government would withdraw its decision to share revenues from the convenience IRCTC earns on tickets booked through its online portal.
Varun Beverages Q3:
Varun Beverages has posted 56.9% jump in its Q2FY22 net profit at Rs 240.1 crore versus Rs 153 crore and revenue was up 32.7% at Rs 2,440.4 crore versus Rs 1,839.5 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 29.9% at Rs 494.6 crore versus Rs 380.8 crore and margin at 20.3% versus 20.7%, YoY.
Varun Beverages was quoting at Rs 820.20, down Rs 2.30, or 0.28 percent on the BSE.
Market at 12 PM
Benchmark indices were trading lower in the volatile session with Nifty above 17800.
The Sensex was down 121.31 points or 0.20% at 59863.39, and the Nifty was down 19.20 points or 0.11% at 17838.10. About 1425 shares have advanced, 1474 shares declined, and 130 shares are unchanged.
Adani Ports, Tata Steel, Maruti Suzuki, JSW Steel and UltraTech Cement were among major gainers on the Nifty, while losers were IndusInd Bank, Kotak Mahindra Bank, HDFC, Reliance Industries and NTPC.
Tata Power in agreement With Tata Steel to set up solar projects
Tata Power and Tata Steel, the two flagship companies of the Tata Group, have come together to develop grid-connected solar plants in Jharkhand and Odisha.
The two companies have signed a Power Purchase Agreement (PPA) for a duration of 25 years to set up 41MW solar project, which will be a combination of rooftop, floating and ground mounted solar panels. Under the project, Tata Power will develop Photo Voltaic (PV) capacities for Tata Steel at Jamshedpur (21.97MWp) and Kalinganagar (19.22MWp), as per the press release.
Tata Power Company was quoting at Rs 214.50, down Rs 3.55, or 1.63 percent and Tata Steel was quoting at Rs 1,325.85, up Rs 26.65, or 2.05 percent.
Nifty Pharma index rose 1 percent led by the Lupin, Biocon, Cadila Healthcare:
Dollar Updates:
The dollar languished near its weakest level in a month against major peers on Friday, hurt by a stronger euro as traders bet on earlier European interest rate hikes and as an equity rally sapped demand for safer assets.
New Zealand’s dollar sagged amid a slide in consumer confidence, while cryptocurrency ether climbed to a record high.
The dollar index, which measures the currency against six main rivals including the euro, was little changed at 93.354, close to Thursday’s low at 93.277 - a level not seen since Sept. 27.
The euro was largely flat at $1.16855 after rising as high as $1.1692 overnight for the first time since Sept. 28.
Gold Updates:
Gold was set for a third straight weekly gain on Friday as weaker U.S. bond yields and dollar bolstered its appeal, with investors focussing on how the Federal Reserve responds to higher inflation and concerns over tepid economic growth.
Spot gold fell 0.1% to $1,797.16 an ounce by 0356 GMT, but has gained 0.2% so far this week. U.S. gold futures dropped 0.3% to $1,797.60.
Benchmark 10-year U.S. Treasury yields were set for their biggest weekly decline in three months, reducing the opportunity cost of holding non-yielding bullion.
Dipam Secretary to CNBC-TV18
Railways is withdrawing decision on convenience fees for IRCTC. The stock was trading at Rs 862.05, down Rs 51.70, or 5.66 percent. It has touched an intraday high of Rs 898.00 and an intraday low of Rs 650.10. It was trading with volumes of 4,202,870 shares, compared to its five day average of 2,393,045 shares, an increase of 75.63 percent.
Market update at 11 AM
: Sensex is up 61.42 points or 0.10% at 60046.12, and the Nifty added 33.90 points or 0.19% at 17891.20. Tata Steel, Adani Ports and State Bank of India are the top gainers while IRCTC adn Tata Power are the most active stocks.
Among the sectors, PSU Bank, metal and pharma added 1-2 percent each while the midcap and smallcap indices are also trading in the green.
Nykaa IPO updates
Falguni Nayar-promoted and private equity firm TPG-backed FSN E-Commerce Ventures’ maiden public offer was oversubscribed by 1.64 times till the early hours of October 29, the second day of bidding. The offer closes on Monday.
Investors have put in bids for 4.35 crore equity shares against an offer size of 2.64 crore equity shares, the subscription data showed. Retail investors subscribed for 3.98 times the portion reserved for them and employees have put in bids for 78 percent of portion set aside for them.
Fino Payments Bank IPO subscribed 13% on bidding debut
The initial public offering of fintech company Fino Payments Bank has been subscribed 13 percent, so far, as investors have put in bids for 14.52 equity shares against IPO size of 1.14 crore equity shares on October 29, the first day of bidding.
The total offer size for public has been reduced to 1.14 crore equity shares, from 2.09 crore shares earlier, after the company garnered Rs 538.78 crore from anchor investors on October 28.
Retail investors have bought 70 percent of shares against the portion reserved for them, and employees have put in bids for 300 equity shares against the reserved portion.
Nifty PSU Bank index rose 1 percent led by the Canara Bank, PNB, Bank of Baroda
IRCTC share price falls 20% after railway ministry seeks share of revenue
Indian Railway Catering and Tourism Corp (IRCTC) share price locked at 20 percent lower circuit on October 29 after the railway ministry asked the company to share its revenue earned from convenience fee.
"It is to be informed that Ministry of Railways has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50: 50 w.e.f. November 1, 2021," company said in a release.
The Indian Railways has authorised IRCTC to facilitate the booking of tickets, provide catering services and packaged drinking water in trains and railways stations.
Rupee Opens:
Indian rupee opened 12 paise higher at 74.80 per dollar on Friday against previous close of 74.92.
US dollar declined 0.51% yesterday on weaker than expected economic data from US and as US stocks rose to fresh closing records. US GDP data showed economy grew at the slowest pace in the third quarter. GDP grew at annual rate of 2% in Q3 compared to 6.7% in the preceding quarter, said ICICI Direct.
Rupee future maturing on November 26 appreciated by 0.19% in yesterday’s trading session as decline in crude oil prices eased worries over imported inflationary pressures. However, sharp gains were prevented on persistent FII outflows and weakness in domestic stock indices, it added.
