Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities
Markets ended the choppy session on an uninspiring note as caution was seen amidst lack of clarity on the Fed rate hike outlook.
As was widely expected, the benchmark consolidated its gains ahead of the US Jobs report.
Technically speaking, the downside risk for Nifty is now seen limited at the make-or-break support at 17017 mark. We expect Nifty bulls to aim for 17500-17707 zone in the near term.
Ajit Mishra, VP - Research, Religare Broking
Markets took a pause after the recent rebound and ended almost unchanged, in absence of any major trigger. After a flat start, the Nifty index hovered in a narrow range and finally settled closer to the day’s high to close at 17,314.65 levels.
Most sectoral indices traded in sync with the benchmark and ended flat. Meanwhile, stock-specific movement across sectors kept participants busy.
Global markets, especially the US, are still not offering indications for a sustained recovery, so volatility is here to stay and participants should plan overnight positions accordingly.
Meanwhile, on the index front, the tone would remain positive till the Nifty holds 17,100. We feel the prudent approach is to focus on top-performing stocks from across sectors and use intermediate dips to add them instead of chasing laggards, in hope of a rebound.
Rupak De, Senior Technical Analyst at LKP Securities:
The benchmark Nifty remained volatile before closing on a muted note. However, the index has closed above 50 EMA, confirming the ongoing positive trend.
Going forward, the trend is expected to remain positive as long as the Nifty sustains above 17300. On the higher end, the 17600-17700 zone may act as resistance, whereas, on the lower end, support is visible at 17200.
The Bank Nifty remained volatile throughout the day. However, the index has managed to sustain above 50 EMA on the daily chart. The RSI is entering a bullish crossover. Over the short term, the index may move towards 40000. On the lower end, support is visible at 38500.
Rupee Close:
Indian rupee closed lower by 43 paise at 82.32 per dollar on Friday against previous close of 81.89.
Market Close:
Indian benchmark indices ended with marginal change in the highly volatile session on October 7.
At Close, the Sensex was down 30.81 points or 0.05% at 58,191.29, and the Nifty was down 17.10 points or 0.10% at 17,314.70. About 1915 shares have advanced, 1445 shares declined, and 96 shares are unchanged.
Titan Company, Power Grid Corporation, ONGC, IndusInd Bank and Grasim Industries were among the top Nifty gainers. Tata Consumer Products, BPCL, M&M, UltraTech Cement and Coal India were the top losers.
Among sectors, metal, healthcare, oil & gas and IT down 0.5 percent each, while realty, power and capital goods ended in the green.
BSE midcap index ended flat, while smallcap index rose 0.3 percent.
Vinod Nair, Head of Research at Geojit Financial Services
Prior to the release of the US jobs data, the domestic market traded with cuts in line with its global counterparts. Stronger-than-anticipated job data may lead to a market decline as it could give the Fed more reasons to focus on inflation.
Following OPEC+'s announcement of supply reductions, crude prices have continued to rise, while the rupee has dropped to a fresh low as a result of hawkish remarks from Fed officials.
Jefferies View On Autos
India's auto demand is recovering from its worst slowdown in decades and expect strong 17-19% volume CAGR for PVs, 2-wheelers & trucks over FY22-25, said Broking house Jefferies.
The falling metal prices should lift margin too, while concern of new entrants squeezing out incumbents in 2-wheeler EV is alleviating, it added,
Jefferies stay bullish on autos with TVS, Maruti, Eicher & Tata Motors as preferred buys, while having underperform call on Motherson, Bharat Forge, M&M, reported CNBC-TV18.
Morgan Stanley View On Bharat Forge
Morgan Stanley has maintained overweight rating on Bharat Forge with a target at Rs 1,025 per share.
The strong class 8 orders support shallow truck downcycle thesis. M&HCV exports form 26% of topline; it may decline by low-single digits in FY24, said Morgan Stanley.
Researfch firm expect India Auto & non-auto businesses to be key earnings drivers, reported CNBC-TV18.
Bharat Forge was quoting at Rs 767.45, up Rs 3.55, or 0.46 percent on the BSE.
Credit Suisse On JB Chemicals and Pharmaceuticals
Credit Suisse has kept outperform rating on JB Chemicals and Pharmaceuticals and raised the target price to Rs 2,300 per share.
The company guided for medium-term 15% CAGR in revenue & 18-20% in EBITDA. The revenue composition is also shifting towards India & CDMO, said Credit Suisse.
Broking house raises FY23/FY24/FY25 EPS estimates by 5%/6%/8%, reported CNBC-TV18.
JB Chemicals and Pharmaceuticals was quoting at Rs 1,999.90, up Rs 23.85, or 1.21 percent.
Tata Steel 2QFY23 Production and delivery volumes
In 2QFY23, Tata Steel India crude steel production stood at 4.81 million tons, up 2% YoY but lower on QoQ basis due to planned maintenance shutdown. On half year basis, crude steel production was up 4% YoY.
Deliveries stood at 4.91 million tons, a growth of 7% YoY and 21% QoQ despite seasonal weakness due to monsoons.
Tata Steel was quoting at Rs 103.15, down Rs 0.40, or 0.39 percent.
Electronics Mart India IPO Updates:
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the final day of the bidding. The issue was subscribed 50.64 times on October 7, last day of the bidding, as the participants bought 316.5 crore equity shares against the offer size of 6.25 crore shares.
Retail investors, who were allocated 35 percent of the IPO shares, subscribed 18 times the portion reserved for them.
Non-institutional investors and qualified institutional investors also appeared to be bullish on the company, buying 56.20 times and 103.61 times the quota set aside for them respectively.
Half of the offer was reserved for qualified institutional investors, while 15 percent shares were set aside for non-institutional investors.
The fourth largest electronic retailer (in southern region) opened its public issue for subscription on October 4 with an aim to raise up to Rs 500 crore.
Market at 3 PM
Benchmark indices were trading flat in the highly volatile markets.
The Sensex was down 2.16 points or at 58219.94, and the Nifty was down 8.20 points or 0.05% at 17323.60. About 1747 shares have advanced, 1435 shares declined, and 106 shares are unchanged.
Rupee Close:
Indian rupee is trading lower at 82.38 per dollar against previous close of 81.89.
Sharekhan View on Macrotech Developers
Macrotech Developers continues to be on track on achieving its pre-sales and new project additions targets for FY2023 despite the continued rise in home loan rates and increase in property prices. Further, the recent media articles suggest towards possibility of stamp duty reduction on Property by the Maharashtra government which if implemented can provide a strong fillip to pre-sales booking going ahead.
However, repatriation of London investments and net debt reduction need to be keenly monitored over the next one to two years. Additionally, rising home loan rates remain a key headwind for the sector.
Lodha’s leadership positioning in the Mumbai Metropolitan Region (MMR) and an eye on newer geographies such as Pune and Bengaluru provide a distinct advantage in the sector.
Lodha has underperformed its listed peers providing a favourable risk-reward ratio to investors. Hence, we retain a positive view of the stock and expect a potential upside of 36-38%.
Macrotech Developers was quoting at Rs 1,009.95, up Rs 14.05, or 1.41 percent on the BSE.
Dilip Shanghvi tells Suzlon promoters, intend to fully participate in Rights Issue
It is my intention to fully participate in the Rights Issue of Suzlon along with subscribing for additional shares. I remain committed to the vision of the Late Mr. Tulsi Tanti. I believe in the future of green energy and the long term growth of this sector.
Tata Steel Long Products Q2 update: Crude steel output at 1.61 lakh tonne, down 8% YoY. Saleable steel output at 1.57 lakh tonne, down 6.5% YoY
European Markets Updates
Electronics Mart India IPO updates
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the final day of the bidding. The issue was subscribed 37.24 times on October 7, last day of the bidding, as the participants bought 232.73 crore equity shares against the offer size of 6.25 crore shares.
Retail investors, who were allocated 35 percent of the IPO shares, subscribed 15.4 times the portion reserved for them. Non-institutional investors and qualified institutional investors also appeared to be bullish on the company, buying 43.38 times and 70.85 times the quota set aside for them respectively.
Market update at 2 PM: Sensex is down 138.05 points or 0.24% at 58084.05, and the Nifty shed 45.30 points or 0.26% at 17286.50.
Hero MotoCorp launches electric scooter Vida V1
Hero Motocorp was quoting at Rs 2,677.00, up Rs 30.90, or 1.17 percent.
Datamatics Global Services in partnership with Scan-Optics to help enterprises optimize business performance
Datamatics, and Scan-Optics, a leader in intelligent data management and digital transformation, have entered in a partnership to help organizations enhance automation of business operations. They will offer enterprises with solutions such as document/digital conversion, intelligent document processing, digital record management and robotic process automation.
Datamatics Global Services was quoting at Rs 326.75, up Rs 12.45, or 3.96 percent.
Indian Hume Pipe bags order worth Rs 194 crore
Indian Hume Pipe Company has received Letter of Acceptance for the work of Rs 194.03 crore from Maharashtra Jeevan Pradhikaran Division, Buldhana, Maharashtra, under Jal Jeevan Mission Project for Jalgaon Jamod 150 Villages Regional Rural Water Supply Scheme.
The project is to be completed within 24 months with a trail run for 12 months after completion of project.
Electronics Mart India IPO subscribed 32.93 times
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the final day of the bidding. As of 1:12 pm, the issue was subscribed 32.93 times on October 7, last day of the bidding, as the participants bought 205.82 crore equity shares against the offer size of 6.25 crore shares.
Retail investors, who were allocated 35 percent of the IPO shares, subscribed 20.51 times the portion reserved for them.
Non-institutional investors and qualified institutional investors also appeared to be bullish on the company, buying 45.92 times and 44.92 times the quota set aside for them respectively.
Half of the offer was reserved for qualified institutional investors, while 15 percent shares were set aside for non-institutional investors.
The fourth largest electronic retailer (in southern region) opened its public issue for subscription on October 4 with an aim to raise up to Rs 500 crore.
Themis Medicare partners with NFL Biosciences
Themis Medicare has entered into a partnership with NFL Biosciences, to develop NFL-101, the drug candidate for smoking cessation, for the Indian market. Themis submitted an IND (investigational new drug) application for a Phase II-III clinical trial to the Central Drugs Standard Control Organization (CDSCO), the National Regulatory Authority of India (NRA).
Themis Medicare was quoting at Rs 1,053.70, up Rs 25.35, or 2.47 percent on the BSE.
Morgan Stanley View On SBI Cards
Morgan Stanley has maintained overweight rating on SBI Cards with a target at Rs 1,100 per share.
The circular mandates with no MDR on transactions up to Rs 2,000 at small merchants. It will entail some cost but will be positive for spends & credit-linked income.
This could firmly entrench credit card as a payment instrument, reported CNBC-TV18.
At 13:29 hrs SBI Cards & Payment Services was quoting at Rs 889.40, up Rs 3.05, or 0.34 percent on the BSE.
Morgan Stanley View On Titan
Morgan Stanley has remained overweight on Titan Company and kept target at Rs 2,902 per share.
Initial Q2 trends were strong with 18% YoY growth in jewellery division.
Improving studded mix, positive sentiment & good festive season outlook are the key positives, reported CNBC-TV18.
Nifty FMCG index fell nearly 1 percent dragged by the Emami, Godrej Consumer Products, Tata Consumer Products
Morgan Stanley View On Bharti Airtel
Morgan Stanley has kept overweight rating on Bharti Airtel with a target at Rs 825 per share.
It officially announces launch of 5G Plus in select cities and believe 5G services for consumers could be priced competitively, said Morgan Stanley.
Industry might look to increase 4G base tariff, reported CNBC-TV18.
Bharti Airtel was quoting at Rs 795.70, up Rs 7.10, or 0.90 percent on the BSE.
Dhruv Consultancy Services JV bags consultancy services contract
Dhruv Consultancy Services in joint venture with Arkitechno Consultants (India) received consultancy services contract for road project in Andhra Pradesh, from NHAI. They will provide consultancy services for preparation of detailed project report (DPR) for augmentation of 4 laning to 6 lane partial access controlled highway in Andhra Pradesh.
Nifty Bank index fell 1 percent dragged by the Federal Bank, IndusInd Bank, Kotak Mahindra Bank
BSE Midcap index shed 0.6 percent dragged by CG Power, ABB, Tata Communications
BSE Midcap index shed 0.6 percent dragged by CG Power, ABB, Tata Communications
Indian Rupee Update:
Indian rupee is trading at fresh record low 82.39 per dollar against previous close of 81.89.
Lupin partners with global agencies to increase patient access to Tuberculosis prevention treatment
Lupin has reached an agreement with Unitaid, The Aurum Institute, the Clinton Health Access Initiative (CHAI), and other global procurement agencies to support tuberculosis prevention treatment that will be rolled out to 138 countries, including many low-and middle-income countries with a large burden of TB.
Market at 12 PM
Benchmark indices extended the losses and trading at day's low with Nifty around 17200.
The Sensex was down 339.85 points or 0.58% at 57882.25, and the Nifty was down 104.60 points or 0.60% at 17227.20. About 1496 shares have advanced, 1565 shares declined, and 121 shares are unchanged.
BSE gets Sebi in-principle nod for SSE as a separate segment
SEBI has granted its in-principle approval to BSE for introducing (Social Stock Exchange) SSE as a separate Segment on BSE.
BSE Limited was quoting at Rs 611.80, up Rs 0.90, or 0.15 percent on the NSE.
Electronics Mart India IPO Updates:
The Initial Public Offering (IPO) of Electronics Mart India continued to see good response from investors on the final day of the bidding. As of 11:15 am, the issue was subscribed 12.42 times on October 7, last day of the bidding, as the participants bought 77.65 crore equity shares against the offer size of 6.25 crore shares.
Retail investors, who were allocated 35 percent of the IPO shares, subscribed 11.37 times the portion reserved for them.
Non-institutional investors and qualified institutional investors also appeared to be bullish on the company, buying 23.52 times and 5.95 times the quota set aside for them respectively.
Half of the offer was reserved for qualified institutional investors, while 15 percent shares were set aside for non-institutional investors.
Samvardhana Motherson International inaugurates new facility in Morocco
Mr V. C. Sehgal, Chairman of Motherson, inaugurated Motherson’s new facility in Tanger Med Industrial Platform, Morocco.
This new facility is a part of Motherson’s Modules and Polymer Products division and will produce interior modules and components like instrument panels and door panels for passenger vehicles and light commercial vehicles. This is Motherson’s latest facility in Morocco, replacing the existing Tétouan site which was established in 2010.
Samvardhana Motherson International was quoting at Rs 76.00, down Rs 0.15, or 0.20 percent on the BSE.
BSE Oil & Gas index fell nearly 1 percent dragged by the Adani Total Gas, Gujarat Gas, BPCL
HCL Tech and Google Cloud expand strategic partnership
HCL Technologies and Google Cloud announced a significant expansion of their long-standing partnership, with new capabilities and service offerings to expedite enterprise migration to Google Cloud.
Centrum View on Dabur India
We reckon off high base in Q2FY22 (12.0% value and 10.0% volume) Dabur to report decent consololidated revenues growing at ~6.2%.
We expect volume growth would be in the range of 2% whereas margin to shrunk by 150-200bps on YoY basis on the back of higher inflationary pressures and higher ad-spends during the quarter.
However, we strongly believe better festive season along with easing raw material cost would give support from 2H23. We remain positive and maintain Buy with DCF-based Target Price Rs 650 (implying 47.4x FY24E EPS).
