Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities:
Nifty bulls failed to find traction amidst volatility and ended on a negative note. Markets were unable to hold on to their early morning gains as the street primarily remained worried on how much the RBI will tighten at its monetary policy meet and raise interest rates to tackle inflation for the remaining year.
The negative close could also be attributed to the Dow futures and European stocks which resumed sell-off. Technically, the Nifty’s support is now seen only at the 16277-16438 zone. As long as 16277 support is held – there is a bright chance that the index could bounce to 17321 and then at 17727 mark.
Ice Make to invest up to Rs 50 crore in a Greenfield project
Ice Make Refrigeration has announced significant expansion plans at its Annual General Meeting. During this financial year, the Company is planning to set up a Greenfield unit at a cost of around Rs. 45 to 50 crores.
The company will manufacture Continuous Penals that are used in areas like infrastructure, industrial & residential buildings. The project will be set up in Gujarat and expected to be fully functional in the next 12 to 15 months.
Mr. Chandrakant P. Patel, CMD, Ice Make Refrigeration Limited said, “As per the market survey, the future forecast of Continuous Penal business is pegged at a CAGR of about 14% during next five years. We are confident the project will further strengthen the business growth of the Company.
The stock is trading near its 52 week highs and has generated returns of 233 percent over the past one year
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty remained highly volatile before ending the session on a negative note. The index failed to capitalize on the early gain as it faced tough resistance at the 17000 levels leading to closing around 16800.
Going ahead, 16800 is likely to act as crucial support, any drift below 16800 on a sustained basis may attract selling pressure in the market. On the lower end, support is visible at 16640. On the higher end, 17050 is likely to remain a strong resistance
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Deteriorated global economic environment has led to sharp surge in bond yields and dollar index which has instilled fears of recession. Given this backdrop, market is expecting RBI in its policy meeting outcome to raise interest rate by 50bps. Investors would also on Friday react to GDP and Initial jobless claim data due later today in the evening.
With key events lined up, and global uncertainties, we expect increased volatility. Nifty has been unable to sustain above 17,000 levels and could witness pressure towards 16600-16650 zones over the next few days.
Mohit Nigam, Head - PMS, Hem Securities
Benchmark Indices ended slightly down with Nifty 50 closing -0.24% down and Sensex closing -0.33% down today.
Auto sales for the month of September will be coming soon and we expect healthy growth across the segments (2W, 4W and CV). Investors can accumulate quality stocks in this sector for good return in the medium term.
On the technical front, immediate support and resistance in Nifty 50 are 16700 and 17200 respectively. Immediate support and resistance in Bank Nifty are 37250 and 38250, respectively.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Market was extremely volatile on the F&O expiry day, and traders preferred to cut their position in some of the rate-sensitives ahead of the credit policy announcement.
The market is already in an oversold position and if the rate hike is above the estimate, then we could see bouts of intra-day volatility with a negative bias for some more time.
Technically, despite a solid start, the benchmark Nifty failed to sustain above the 200-day SMA (Simple Moving Average) or 17000 level.
In the intraday time frame, the index has formed a double top formation and conversely it is consistently taking support at 16800. As long as the index trades above 16800, the chances of a quick pullback rally is bright. Above the same, the index could retest 16950-17000 levels. However, below 16800, the index could slip till 16700-16650.
Vinod Nair, Head of Research at Geojit Financial Services.
The initial upticks of the domestic market were short-lived due to its weak global peers and declining rupee. As the yield differential between India and the US fell to a multi-year low of 348 bps, foreign investors are still departing from the Indian market.
Amid the ongoing global trend of aggressive rate hikes, markets are braced for a 50 bps increase by RBI. Investors eagerly await the central bank’s intervention to aid bank liquidity, curb currency depreciation, and provide updates on its monetary stance & GDP outlook.
Rupee Close:
Indian rupee closed 9 paise higher at 81.85 per dollar against previous close of 81.94.
Market Close
Indian benchmark indices ended lower in the highly volatile session on September 29 ahead of Reserve Bank of India policy announcement..
At Close, Sensex was down 188.32 points or 0.33% at 56,409.96, and the Nifty was down 40.50 points or 0.24% at 16,818.10. About 1775 shares have advanced, 1435 shares declined, and 102 shares are unchanged.
Asian Paints, Tech Mahindra, Hero MotoCorp, Bajaj Auto and Titan Company were among the top losers on the Nifty. However, gainers included ONGC, ITC, Apollo Hospitals, Hindalco Industries and HDFC Life.
On the sectoral front, power index down 1.3 percent, while FMCG, metal and pharma indices up 1 percent each.
BSE Midcap and Smallcap indices up 0.3-0.6 percent each.
Credit Suisse View On Godrej Consumer Products
Research firm Credit Suisse has maintained outperform rating on the stock with a target at Rs 975 per share.
The structural improvements in the sales engine continue. However, recent quarters hampered by raw material inflation & currency depreciation in Africa.
The constant currency margin is 6-7 ppts higher than reported. Meanwhile, second half of year will be a period of recovery across geographies, reported CNBC-TV18.
Nomura View On Tata Motors
Foreign research house Nomura has kept buy rating on the stock with a target at Rs 520 per share.
Tigor EV has potential to become best-selling EV in India and expect Tiago EV to sell 3,000-5,000 units per month.
The overall EV sales should touch 60,000/ 96,000 units in FY23/24, reported CNBC-TV18.
Tata Motors was quoting at Rs 403.05, up Rs 4, or 1 percent on the BSE.
Auto sales preview for September 2022 by Choice
In this festive season (Sep-Oct 22), we expect sales for the 2W segment to witness healthy growth due to improvement in income levels at the lower end of the customer pyramid (beneficial for the 2W economy segment), pent-up festive demand, and healthy traction in the premium/scooter category.
In the PV segment, we expect volume growth to keep getting better due to the supply chain getting improved every day and the order book is also getting strong.
On the CV front, we believe this segment to register healthy growth due to strong infrastructure and construction activities. We expect the PV industry volume to witness a growth of 4-6% on a MoM basis and the 2W segment to register a growth of around 7-8%.
Morgan Stanley View On Godrej Consumer Products
Brokerage firm Morgan Stanley has kept overweight rating on Godrej Consumer Products with a target at Rs 1,101 per share.
The management’s mindset has changed from a ‘wholesaler’ to an ‘FMCG’ approach. The focus is on product, investment in marketing, sales, distribution & technology.
The management believes opportunity is notable & is focussed on driving execution. The company is focussed on reducing complexity in operations without reducing geographical footprint, reported CNBC-TV18.
Godrej Consumer Products was quoting at Rs 909.05, up Rs 24.40, or 2.76 percent on the BSE.
BSE Healthcare index added 1 percdnt led by the Sun Pharma Advanced Research Company, Abbott India, Suven Pharmaceuticals
Anupam Rasayan India launches QIP issue
Anupam Rasayan India has opened its qualified institutional placement issue on September 28 after the approval of preliminary placement document.
The floor price has been fixed at Rs 762.88 per share. It may offer a discount of up to 5% on the floor price.
Anupam Rasayan India was quoting at Rs 750.00, down Rs 8.25, or 1.09 percent on the BSE.
Market at 3 PM
Benchmark indices were trading flat in the volatile session.
The Sensex was down 82.74 points or 0.15% at 56515.54, and the Nifty was down 14 points or 0.08% at 16844.60. About 1744 shares have advanced, 1427 shares declined, and 122 shares are unchanged.
PGIM India Mutual Fund pares some stake in Can Fin Homes
PGIM India Mutual Fund sold 10 lakh equity shares or 0.75% stake in Can Fin Homes at an average price of Rs 469.62 per share. PGIM held 2.47% stake in the company as of June 2022.
Can Fin Homes was quoting at Rs 468.50, up Rs 4.80, or 1.04 percent.
NCLT convened meeting of Equity Shareholders, Secured Creditors of Adani Power on November 1:
NCLT convened meeting of the Equity Shareholders and Secured Creditors of Adani Power on November 1, 2022
However, NCLT convened meeting of the Unsecured Creditors on November 2, 2022.
Adani Power was quoting at Rs 370.95, up Rs 3.25, or 0.88 percent.
Govt defers implementation of six airbags in passenger cars by one year due to supply chain constraints
Notably, MoRTH had earlier proposed to implement the six airbag rule for passenger cars from October 1, 2022; it was deferred by one year.... Read More
Chemcon Specialty Chemicals commences commercial production in P9 facility at Manjusar, Near Vadodara, Gujarat
The company has added a capacity of 2,400 MTPA of Bromo Benzene at the P9 facility. It is further evaluating to add a pharma chemical, Guanine, at the same unit.
Lupin launches Sildenafil in The United States
The company today announced the launch of Sildenafil for Oral Suspension, 10 mg/mL, having received an approval from the United States Food and Drug Administration.Sildenafil is used to treat men who have erectile dysfunction.
US Futures drop after Wednesday's big market rally
On Thursday, Dow Jones futures dropped 324 points, or 1.08 percent, while S&P 500 and Nasdaq 100 futures declined 1.02 percentand 1.34 percent, respectively.
European stocks fell on Thursday with pan-European Stoxx 600 shedding 1.7 percent in early trade
JSPL Large Trade | 13.92 lakh shares (0.14 percent equity) worth Rs 58.34 crore change hands at average Rs 419.5 per share
Umesh Revankar, Vice Chairman & Managing Director, Shriram Transport Finance Company
Request you to consider this for the relevant stories you are planning. - India’s growth prospects have improved while inflation remains persistent. Infact, S&P expects GDP growth of 6.5% next fiscal, which is better than most economies of the same size. India seems to be an outlier with strong demand from consumers, high infrastructure activities, and a resurgence in manufacturing. I expect the RBI to hike policy rates by 35-50 basis points to further rein in inflation and in line with global central banks tightening rates. I believe with this hike we will reach the higher end of the interest rate cycle. Hikes in interest rates beyond this may prove worrisome for long-term borrowers and it may also dampen the consumer demand for the festive season.
Markets at 2 PM
Sensex is down 193.74 points or 0.34 percent at 56404.54. Nifty is down 40.10 points or 0.24 percentat 16,818.50. About 1676 shares have advanced, 1464 shares declined, and 122 shares are unchanged.
Rupee Updates
Indian rupee erased intraday gains and trading flat at 81.92 per dollar against previous close of 81.94. It has touched a record low of 81.9 in the previous session.
Jefferies View On Godrej Consumer Products
Jefferies has kept buy rating on Godrej Consumer Products with a target at Rs 1,040 per share.
With Dharnesh Gordhon at helm, the performance has improved. Distribution expansion, portfolio simplification and focus on the core have helped.
However, the job is not yet done & Dharnesh expects to build on journey so far, reported CNBC-TV18.
Godrej Consumer Products was quoting at Rs 904.05, up Rs 19.40, or 2.19 percent on the BSE.
Bond Yields Update:
Morgan Stanley On Hero MotoCorp
Brokerage house Morgan Stanley has maintained underweight rating on Hero MotoCorp on the back of limited margin upside & market share pressures. It has kept a target at Rs 1,937 per share.
The rising sales incentives are likely to offset commodity-led gains. The company is set for an EV launch but based on peer experience, expect slow volume ramp up.
It is trading in-line with its 10-year average PE of 16x, reported CNBC-TV18.
Hero MotoCorp was quoting at Rs 2,538.30, down Rs 50.55, or 1.95 percent on the BSE.
S H Kelkar arm picks additional 19% stake in Provier Beheer BV
S H Kelkar and Company's subsidiary Keva Europe BV has acquired 19% equity stake in Netherlands-based Provier Beheer BV, the holding company of Holland Aromatics BV.
With this, Keva Europe BV now holds 81% and the balance will be acquired in a span of 2 years.
In addition, Creative Flavours & Fragrances SpA, Italy (CFF), material subsidiary, acquired balance 30% of stake in Nova Fragrance Srl, Italy (Nova) thus making Nova, a wholly owned subsidiary of CFF.
S H Kelkar & Company was quoting at Rs 141.50, down Rs 1.15, or 0.81 percent on the BSE.
Energy Prices Updates
Nifty Information Technology index shed 1 percent dragged by the Infosys, HCL Technologies, L&T Technology Services
Supreme Industries Large Trade | 2.42 lakh shares (0.19% equity) worth Rs 50.9 crore change hands at an average of Rs 2,085 per share.
Market at 1 PM
Indian benchmark indices were trading near the day's low with Nifty around 16850.
The Sensex was down 112.93 points or 0.20% at 56485.35, and the Nifty was down 20.80 points or 0.12% at 16837.80. About 1779 shares have advanced, 1324 shares declined, and 118 shares are unchanged.
ITI receives Rs 80 crore for capex from Government of India
ITI has received Rs 80 crore against allotment of shares to the Government of India. The Board of Directors has approved allotment of 77,33,204 equity shares at Rs 103.45 per share to the President of India.
Adani Enterprises announces financial closure of projects
Budaun Hardoi Road Private, Hardoi Unnao Road Private and Unnao Prayagraj Road Private, wholly owned subsidiaries of Adani Enterprises
have achieved Financial Closure for the Access-Controlled Six Lane (Expandable to Eight Lane) Greenfield Ganga Expressway Project (Group-II, III & IV) in the State of Uttar Pradesh respectively on DBFOT (Toll) basis under PPP mode.
Adani Enterprises was quoting at Rs 3,547.65, down Rs 1.45, or 0.04 percent on the BSE.
AnandRathi View on Torrent Pharmaceuticals
One of the most expensive deals in domestic pharma, Torrent Pharma’s acquisition of Curatio Healthcare for Rs 20bn values it at 8.8x EV/sales.
The deal will widen Torrent’s reach among paediatricians and dermatologists (nearly 85% of its dermatology portfolio is cosmetic dermatology). The synergies from this deal should reflect in FY25, as well as the benefit from greater MR productivity and the expansion to the north and east zones.
Interest costs and amortisation are expected to increase on the consummation of the deal (in a month).
We retain our Buy on the stock, with an unchanged target price of Rs 1,724 (at FY24e 19x EV/EBITDA).
BSE Smallcap index rose 0.5 percent led by the Sun Pharma Advanced Research Company, Century Enka, Chemcon Speciality Chemicals
Emkay Global Financial Services retains positive view on auto sector
According to Emkay Global Financial Services the volumes’ estimate for the month of September indicate a positive trend aided by early commencement of Navratri festival in September in comparison with October last year.
Tractor and 2-Wheelers’ OEMs should post positive growth on continuing inventory build-up with dealers in the run-up to the festive season. Further, PV volumes should be higher, driven by large order book, new products, and ramp-up in production. In addition, CVs are likely to maintain their positive growth momentum.
Emkay Global Financial Services retains their positive view on the auto sector, with Maruti Suzuki, M&M, Tata Motors, Escorts and Ashok Leyland as their preferred picks.
Goldman Sachs View On Blue Dart Express
Foreign research house Goldman Sachs has maintained buy rating on Blue Dart Express and raised the target price to Rs 9,470 per share.
The company announced a general price increase effective January 1, 2023. The price rise is 9.6% above 2022 levels, well above our expectations of a 3-4%, said research house.
Goldman Sachs feels that the strong growth momentum & profitability to continue, while price increase demonstrates its focus on maintaining profitable growth, reported CNBC-TV18.
Supriya Lifescience gets Certification of Suitability for anti-histamine therapy from EDQM
Supriya Lifescience has received Certification of Suitability (CEP) for Diphenhydramine hydrochloride, API in anti-histamine therapy, from European Directorate for the Quality of Medicines and HealthCare (EDQM). This will be an added advantage for Supriya Lifescience in the European market. Global demand for Diphenhydramine Hydrochloride is 1850 tons, of which major demand is in the regulated markets.
Supriya Lifescience was quoting at Rs 296.50, up Rs 0.15, or 0.05 percent on the BSE.
Market at 12 PM
Benchmark indices erased all the intraday gains and trading flat in the volatile session.
The Sensex was up 14.39 points or 0.03% at 56612.67, and the Nifty was up 15.70 points or 0.09% at 16874.30. About 1961 shares have advanced, 1106 shares declined, and 112 shares are unchanged.
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Prabhudas Lilladher View on Ipca Laboratories
We expect 31% EPS CAGR over FY23-25E versus 20% EPS decline over FY21-23E on back of strong domestic formulation business (45% of total sales), which continues to outperform IPM.
Additionally, export business is also on a gradual recovery mode with UK and export API business expected to normalize by Q4F23. At CMP, stock is trading at 22x FY24E and 18x FY25E P/E. Upgrade to ‘Accumulate’.
