Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas:
The Nifty has seen range shift on the higher side on October 31. Till the last week, the level of 17800 was acting as a key hurdle. However, today, with a gap up opening, the index has surpassed that barrier.
The Nifty has now entered into the next resistance zone on the higher side, which is 18000-18100. The index had stumbled near this zone in August & September this year. Thus one needs to be vigilant at this level.
Unless that resistance zone is crossed on a closing basis, the index can stay in consolidation from short to medium term perspective. On the downside, today’s gap area of 17838-17900 will act as a near term support zone.
Vinod Nair, Head of Research at Geojit Financial Services:
The buoyancy of Wall Street was reflected well in the domestic market, also supported by sliding Oil prices following weak Chinese factory data.
US stocks recovered from a tech sell-off on hopes that the Fed would hint towards dialling down big interest-rate hikes. The outcome of the Fed & RBI meeting this week will decidedly affect the stock market trend.
Rupak De, Senior Technical Analyst at LKP Securities:
The Nifty has moved up after a consolidation breakout on the daily chart, suggesting a rise in optimism. On the daily timeframe, the index has sustained above the crucial moving average, confirming the short term uptrend.
Over the short term, the trend may remain positive. On the lower end, support is visible at 17850/17700; resistance on the higher end is placed at 18100/18300.
Rupee Close:
Indian rupee closed 30 paise lower at 82.77 per dollar on Monday against Friday's close of 82.47.
DCX Systems IPO subscribed 1.5 times on day 1, non-institutional investors' portion fully booked
The initial public offering of DCX Systems, an electronic sub-systems and cable harnesses manufacturer, has garnered bids for 2.17 crore shares against an IPO size of 1.45 crore shares subscribing 1.5 times on October 31, the first day of bidding.
The offer size has been reduced to 1.45 crore shares from 2.4 crore equity shares after the company successfully mobilised Rs 225 crore via anchor book on last Friday.
Retail investors showed good interest at the beginning, investing for 6.55 times shares of the allotted quota, while the portion set aside for non-institutional investors was subscribed 1.35 percent.
Qualified institutional investors have bought 21,600 shares so far, against the 81.65 lakh shares reserved for them.
DCX Systems plans to mop up Rs 500 crore through its public issue, with a price band of Rs 197-207 per share. The offer, which closes on November 2, consists of a fresh issue of Rs 400 crore and an offer-for-sale of Rs 100 crore.
Market Close:
Benchmark indices ended higher for the third consecutive day on October 31 with Nifty reclaiming 18,000 mark.
At Close, the Sensex was up 786.74 points or 1.31% at 60,746.59, and the Nifty was up 225.40 points or 1.27% at 18,012.20. About 1788 shares have advanced, 1657 shares declined, and 164 shares are unchanged.
UltraTech Cement, Eicher Motors, M&M, HDFC and Sun Pharma were among the top Nifty gainers, while losers included Apollo Hospitals, Dr Reddy’s Labs, NTPC, IndusInd Bank and Britannia Industries.
All the sectoral indices ended in the green.
The BSE midcap index up 1 percent and smallcap index added 0.5 percent.
BSE Power index added 1 percent supported by the JSW Energy, ABB, Adani Transmission
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services:
Rupee fell marginally as the dollar started to recover from its recent lows. Volatility is low ahead of important events that are lined in this week.
Fed is expected to raise rates by another 75bps and further hawkish statement could extend gains for greenback.
Pound and Euro recovered last week and BoE policy statement that will be this week will be important for these major crosses.
Today focus will be on preliminary CPI number that will be released from EZ.
We expect the USDINR (Spot) to trade sideways with a positive bias and quote in the range of 82.20 and 82.80.
Nifty50 index retested 18000 mark
Motherson Sumi Wiring India Q2
Motherson Sumi Wiring India has posted 12.8 percent fall in its Q2FY23 net profit at Rs 116.4 crore versus Rs 133.5 crore against and revenue was up 31.1% at Rs 1,835.2 crore versus Rs 1,400 crore, YoY.
BSE Healthcare index added 1 percent led by the NGL Fine-Chem, Artemis Medicare Services, Unichem Laboratories
Jefferies View On IOC:
Hold call, target at Rs 77 per share
EBITDA beat estimate on stronger refining & govenment grant on LPG losses
Marketing under-recoveries continued but along expected lines
Cut FY23 EBITDA estimate by 50 percent with marketing losses on diesel continuing, reported CNBC-TV18.
Indian Oil Corporation was quoting at Rs 68.35, down Rs 0.10, or 0.15 percent on the BSE.
Market at 3 PM
Benchmark indices were trading higher with Nifty near 18000 level.
The Sensex was up 683.45 points or 1.14% at 60643.30, and the Nifty was up 191.80 points or 1.08% at 17978.60. About 1659 shares have advanced, 1638 shares declined, and 144 shares are unchanged.
S P Apparels Q2 Results:
S P Apparels has posted net profit of Rs 22.9 crore in the quarter ended September 2022 against Rs 23.2 crore in the same quarter last fiscal.
Revenue of the company rose 37.6% at Rs 305.7 crore versus Rs 222.1 crore, YoY.
S P Apparels was quoting at Rs 363.95, down Rs 18.10, or 4.74 percent on the BSE.
BofA Securities View On NTPC:
Buy call, target at Rs 187 per share
Earnings miss, revenue, generation up YoY
Thermal capacity addition on track, USD 9 bn capex by FY25
RE scale-up could re-rate valuations, reported CNBC-TV18.
NTPC was quoting at Rs 173.05, down Rs 1.10, or 0.63 percent.
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Here is the list of stocks that have touched their 52 week highs during the day:
Anmol Das, Head of Research, Teji Mandi:
Sensex breached 60K for the 5th time since making its all-time high last year October and for consecutively 3 months in a row. While mostly driven by 2nd quarter results, emboldens domestic investors of key supports just below the 60K levels. On the other hand, it also signifies Indian markets readiness to further take-off once it crosses 60K levels satisfactorily.
BSE Oil & Gas index added 1 percent supported by the Adani Total Gas, Gail India, Indraprastha Gas
Credit Suisse View On Bandhan Bank:
Outperform call, target cut to Rs 330 from Rs 360 per share
Weaker than expected quarter; expectations on recovery in H2
Cut FY23-25 EPS estimates by 9-19 percent on lower NIMs & higher credit costs
Bank’s capital position is healthy
Expect credit costs to moderate in H2, reported CNBC-TV18.
DCX Systems IPO updates
The initial public offering of DCX Systems, an electronic sub-systems and cable harnesses manufacturer, has garnered bids for 1.54 crore shares against an IPO size of 1.45 crore shares subscribing 1.07 times on October 31, the first day of bidding.
Retail investors showed good interest at the beginning, investing for 4.89 times shares of the allotted quota, while the portion set aside for non-institutional investors was subscribed 81 percent. Qualified institutional investors have bought 4,032 shares so far, against the 81.65 lakh shares reserved for them.
Most active stocks on NSE in terms of volumes
European Markets Updates
WPIL Q2
Net profit was down 1.8% at Rs 23.4 crore against Rs 23.8 crore (YoY). Revenue was up 40.8% at Rs 404.3 crore against Rs 287.1 crore (YoY). EBITDA fell 17.7% at Rs 49.3 crore against Rs 60 crore (YoY). Margin at 12.2% against 20.9% (YoY). The stock was trading at Rs 1,417, down Rs 35.10, or 2.42 percent on BSE. It has touched an intraday high of Rs 1,477 and an intraday low of Rs 1,365.
Bikaji Foods International sets price band at Rs 285-300 per share for Rs 881-crore IPO
:
Ethnic snacks company Bikaji Foods International on October 31 has fixed the price band at Rs 285-300 per share for its maiden public issue. This will be amongst the five IPOs that will be opened for subscription in current month.
The offer will open for bidding on November 3 and the closing date will be November 7. The anchor book will be opened for a day on November 2. The public issue consists of only an offer for sale of more than 2.93 crore equity shares by existing shareholders including promoters. The company is planning to raise Rs 881.2 crore via public issue. The entire money after deducting issue expenses will be received by selling shareholders and the company will not receive any money from the offer.
Market update at 2 PM: Sensex is up 611.04 points or 1.02% at 60570.89, and the Nifty added 169.80 points or 0.95% at 17956.60.
VST Tillers Tractors Q2:
VST Tillers Tractors has reported 29% percent fall in its Q2 net profit at Rs 22.7 crore versus Rs 32.1 crore and revenue was up 0.3% at Rs 234.2 crore versus Rs 233.5 crore, YoY.
VST Tillers Tractors was quoting at Rs 2,171.00, up Rs 38.20, or 1.79 percent.
L&T Q2 preview
According to an average estimate of five brokerage firms polled by Moneycontrol, Larsen & Toubro (L&T) is expected to post a consolidated net profit of Rs 21,699.4 million in Q2 of FY23, up 26 percent, while sales could rise 6.5 percent to Rs 3,70,284.6 million.
Prabhudas Lilladher has estimated a sales growth of 17.1 percent year-on-year (YoY) to be driven by growth in IT, Infrastructure, Heavy Engineering and Hydrocarbon segments.
Besides, a strong tender pipeline from domestic and export market is likely to ramp up order inflows, it said. Read More
Saregama India Q2
Saregama India has posted 36 percent jump in its Q2 net profit at Rs 46 crore versus Rs 34 crore and revenue was up 30.5% at Rs 189.2 crore versus Rs 145 crore, YoY.
Saregama India was quoting at Rs 382.50, up Rs 6.35, or 1.69 percent.
Gujarat Heavy Chemicals Q2
Gujarat Heavy Chemicals has reported Q2 net profit at Rs 300.5 crore versus Rs 93.2 crore and revenue was up 72% at Rs 1,381 crore versus Rs 803 crore, YoY.
Gujarat Heavy Chemicals was quoting at Rs 659.05, up Rs 13.00, or 2.01 percent on the BSE.
Dow is set to post its best month since 1976. Here’s why
Dow Jones Industrial Average is set to post its best month in decades. The index is up 14.4 percent in October, which would be its best month since 1976. In January of 1976, Dow had advanced 14.41 percent.
On Friday, it closed 800 points higher, registering fourth straight week of gains. Other big monthly gains for the index have been in January 1987 and November 2020 when the Dow closed 13.82 percent and 11.84 percent higher, respectively.
Unlike the Nasdaq which is heavy on tech companies, the Dow has higher weightage of energy and industrials which have been the biggest winners in October.
Supreme Industries Q2 results
Supreme Industries has reported 64 percent fall in its Q2 net profit at Rs 82 crore versus Rs 228.7 crore.
Supreme Industries was quoting at Rs 2,034.90, down Rs 2.45, or 0.12 percent.
BofA Securities On Bandhan Bank
-Buy rating, target cut to Rs 355 per share
-EPS estimates cut by 20-30 percent
-Weak quarter, flat loans, lower NIM & higher provisions
-Management expects H2 seasonality to help growth revival
-Operational concerns are offset by valuations, reported CNBC-TV18.
BSE Midcap index gained nearly 1 percent led by the JSW Energy, Max Healthcare Institute, Trent
Oil declines over $1
Oil prices fell over $1 on Monday following weaker-than-expected factory activity data out of China and on concerns its widening COVID-19 curbs will curtail demand.
Brent crude futures dropped $1.10, or 1.2%, to $94.67 a barrel by 0710 GMT, after slipping 1.2% on Friday.
U.S. West Texas Intermediate (WTI) crude was at $86.83 a barrel, down $1.07, or 1.2%, after settling down 1.3% on Friday.
Brent and WTI, however, are on track for their first monthly gains since May, up 7.7% and 9.3% respectively, so far.
Kotak Institutional Equities On Tata Chemicals
-Downgrade to add, target at Rs 1,200 per share
-Underlying margin remains firm & should reflect in better earnings in H2
-Positive momentum in business should support stock in near term
-Recent run-up limits room for a further upside
Tata Chemicals was quoting at Rs 1,140, up Rs 8.05, or 0.71 percent on the BSE.
Market at 1 PM
Benchmark indices were trading firm in the afternoon session with Nifty around 18000.
The Sensex was up 707.14 points or 1.18% at 60666.99, and the Nifty was up 198.10 points or 1.11% at 17984.90. About 1720 shares have advanced, 1507 shares declined, and 150 shares are unchanged.
Swaraj Engines Q2 Earnings
Swaraj Engines has posted 6 percent jump in its Q2 net profit at Rs 35.9 crore versus Rs 33.8 crore and revenue was up 12% at Rs 384.8 crore versus Rs 343.6 crore, YoY.
Dollar steadies as Fed looms; yen fragile
The dollar advanced on Monday as bets cooled that the U.S. Federal Reserve could signal a slowdown in its aggressive rate-hiking cycle, ahead of its key policy meeting this week and as domestic data points to underlying inflation pressure.
The greenback moved broadly higher in Asia trade, particularly against the Japanese yen, rising more than 0.5% and pushing above the 148 yen level.
The yen last traded 147.82 per dollar, further pressured by the Bank of Japan's (BOJ) decision to keep ultra-low interest rates on Friday, and BOJ Governor Haruhiko Kuroda's still-dovish comments in the face of rising interest rates elsewhere.
JPMorgan View On Sona BLW Precision Forgings:
-Keep underweight rating, target cut to Rs 430 from Rs 485 per share
-Revenue momentum needs to improve to justify valuations
-Expectations factoring H2 rev growth of 30% Vs H1 & FY24 growth at 37% YoY
-Consensus EBITDA margin implies 27.4% for H2 & 27.9% for FY24
-Stock is at an excessive premium to global EV OEMs
BSE Capital Goods index rose 1 percent led by the Grindwell Norton, ABB, L&T##
Kopran subsidiary acquires assets of API manufacturing unit of Abhinandan Rasayan
Kopran subsidiary Kopran Research Laboratories acquired the assets of an API manufacturing unit of Abhinandan Rasayan at MIDC – Ambernath in Maharashtra. This will help the company in increasing its API and intermediate production capacity.
Kopran was quoting at Rs 179.50, up Rs 1.30, or 0.73 percent on the BSE.
Persistent launches cyber recovery colution with Google Cloud
Persistent Systems announced the launch of a trailblazing solution that enables organizations to recover more quickly from cyber-attacks. Together with Google Cloud, the Persistent Intelligent Cyber Recovery (PiCR) solution provides a comprehensive and scalable cyber recovery approach, allowing organizations to reduce data loss and minimize the negative impact to brand reputation from prolonged downtime. Persistent Intelligent Cyber Recovery is now available on the Google Cloud Marketplace, Persistent Systems said in its release.
Persistent Systems was quoting at Rs 3,693.45, up Rs 71.95, or 1.99 percent on the BSE.
High energy prices boosting renewables investment: Petroleum Minister Hardeep Puri at Abu Dhabi conference
DCX Systems IPO Updates:
Blue Dart Express Q2 profit grows 3.4% YoY to Rs 93.64 crore
Blue Dart Express recorded a 3.4% YoY growth in consolidated profit at Rs 93.64 crore for the quarter ended September FY23. The year-ago profit was impacted by exceptional loss of Rs 35.95 crore. Revenue from operations grew by 18% YoY to Rs 1,325.28 crore for the quarter.
Blue Dart Express was quoting at Rs 7,673.65, down Rs 269.85, or 3.40 percent.
CCL Products Q2 profit rises 17% YoY to Rs 57.78 crore
CCL Products (India) has registered a 17% YoY growth in consolidated profit at Rs 57.78 crore for the September FY23 quarter, supported by top line but impacted by higher input cost and other expenses. Consolidated revenue from operations for the quarter at Rs 506.55 crore increased by 50.5% compared to year-ago period.
CCL Products India was quoting at Rs 497.15, up Rs 4.60, or 0.93 percent.
Ramkrishna Forgings bags export order worth Rs 113.1 crore
Ramkrishna Forgings has awarded a 4-year contract for the supply for heavy duty commercial vehicles for its European application worth
Rs 1131.60 million (Euro 13.8 million).
Goldman Sachs View On Maruti Suzuki India
-Buy call, target at Rs 11,250 per share
-Adding capacity to support SUV build out
-Company entering a sweet spot in new SUV launches
-It’s one of cleaner names within autos space on softening metal prices, reported CNBC-TV18.
Market at 12 PM
Benchmark indices extended the gains and trading near the day's high with Nifty around 18000.
The Sensex was up 715.52 points or 1.19% at 60675.37, and the Nifty was up 197.20 points or 1.11% at 17984. About 1739 shares have advanced, 1434 shares declined, and 160 shares are unchanged.
Elara Capital View on NTPC
NTPC is poised to add ~4.0GW RE capacity in the next two years, as per management. Higher capex for the RE portfolio may bolster growth.
We retain our EPS estimates over FY23-24. The stock is trading at a historically low valuation of 1.0x FY24E P/B, which seems attractive.
We reiterate Buy with a higher Target Price of Rs 209 from Rs 194 due to better visibility on regulated returns and traction on RE initiative based on 1.5x (from 1.3x) regulated equity FY24E P/B, 1.0x (unchanged) regulated equity in CWIP and 1.0x (unchanged) cash & investments.
