Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers:
Indian markets started on a positive note despite weak Asian market cues which traded lower as data showed China’s economy grew less than expected in the third quarter. During the afternoon session markets continued to trade firm amid sustained buying across the board.
The sentiment was buoyant with the early data showed Indian economy bouncing back strongly, domestic consumption increasing and industrial production is likely at pre-COVID level. On the sectoral front, shares of metal companies were in focus on rising base metal prices amid higher demand expectations.
Ajit Mishra, VP - Research, Religare Broking:
Market started the week on a buoyant note and gained nearly a percent, tracking supportive global cues. After the gap up start, the benchmark hovered in a range till the end however movement on the stock-specific front kept the participants busy till the end.
In absence of any major event, earnings will remain in focus and we have a long list of index majors announcing their results this week. And, participants will be closely eyeing the management commentaries for the future growth outlook. Apart from this, global cues would also be on investors' radar. We reiterate our bullish view on the market and suggest using intermediate dips to add quality stocks.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Investors seem to be cheering the strong earnings numbers from technology giants as absence of any negative news has been markets to new highs. After a strong rally on daily charts last week, the index has formed a Doji Star kind of formation which suggests a temporary overbought situation. However, the short-term trend is still positive.
We are of the view that due to overbought formation the bulls may take a caution stance near the 18600-18650 resistance level. For day traders, 18400 could be the trend decider level. Above the same, the uptrend formation will continue up to 18600-18650 levels. On the flip side, below 18400, a technical sell off up to 18350-18275 is not ruled out. The intraday texture shows markets in an overbought zone, hence level based trading would be the ideal strategy for day traders.
Mohit Nigam, Head - PMS, Hem Securities:
Indian Benchmark Indices rose for the seventh consecutive session and closed at record high levels today. Strong buying is seen in Metal, Bank and IT stocks while some profit booking is witnessed in media stocks. Today most of the banking stocks had a good run after strong numbers posted by HDFC Bank.
On the technical front, benchmark indices witnessed continuous positive trend after sustaining well above 18,400 levels. According to our technical analysis, this positive momentum might continue till 18,500 levels in coming sessions. Immediate support for Nifty 50 is 18,300.
Palak Kothari, Research Associate at Choice Broking:
After a long weekend, the Index opened on a gap-up note and made a new life-time high at 18543.15 levels and showed strength through the session and closed the session at 18477.05 level with a gain of 138.50 points. Bank nifty also showed strength and closed the session at 39684.80 levels with a gain of 343.90 points.
On the sectoral front, the metal index is up 4 percent, while power, oil & gas, IT, energy and PSU Bank indices are up 1-2 percent each. While Nifty Pharma, Media & Consumption ended in red.
On the technical front, the Index has been trading with higher high & higher bottom formation which suggest strength for the upside. A daily momentum indicator RSI and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price.
Furthermore, the price has also moved above the upper “Bollinger Band” formation, which suggests the bullish movement will continue further in the near term.
On an hourly chart, the index has been trading above 21 & 50 HMA, which adds bullish momentum to the index. At present, the index has been trading at uncharted territory with immediate support at 18,250 level, while sustained above 18,400 levels can show 18,600-18,700 levels in near term.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market witnessed the continuation of positive trend, and an attempt to hold 18500. Research suggests that if the market sustains above the level of 18500, expect to continue the positive momentum, leading to an upside projection till 18600 level.
The momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening the short-term bullish outlook.
Vinod Nair, Head of Research at Geojit Financial Services.
The domestic market traded at record highs withstanding the weak trends in the global market due to disappointing Chinese GDP numbers and global inflationary pressure as a result of energy shortage.
Chinese GDP grew by just 4.9% during the July-September quarter owing to lower than expected growth in industrial activity. However, the trend in the Indian market was bullish as PSU Banks, Metals, IT and Energy stocks took charge of the rally.
S Ranganathan, Head of Research at LKP securities:
Metals & PSU Banks led the Sensex closer to the 62K mark today even as we saw mixed trends in other sectoral indices with profit-taking observed in few over-owned names.
Robust home sales witnessed in several cities during the September quarter do indicate a multiplier effect in several sectors as the earnings season is underway ahead of the Festive season. The broader markets remained buoyant with the Small & Midcap indices showing robust activity today.
Market Close
: Benchmark indices ended higher in the seventh consecutive session on October 18 led by the metal, PSU bank and power stocks.
At close, the Sensex was up 459.64 points or 0.75% at 61,765.59, and the Nifty was up 138.50 points or 0.76% at 18,477. About 1677 shares have advanced, 1563 shares declined, and 127 shares are unchanged.
Hindalco Industries, Infosys, Tech Mahindra, JSW Steel and Tata Steel were among major gainers on the Nifty. Losers included HCL Technologies, M&M, Asian Paints, Britannia Industries and Dr Reddy’s Laboratories.
Except pharma, all other sectoral indices ended in the green with Metal, Power and PSU Bank indices added 2-4 percent.
The broader indices BSE midcap and smallcap added nearly a percent each.
Penna Cement gets Sebi nod for Rs 1,550 crore IPO
Hyderabad-based Penna Cement Industries has received approval of capital markets regulator Securities and Exchange Board of India (Sebi) to go ahead with its Rs 1,550-crore initial public offering (IPO).
The IPO includes a fresh issue of Rs 1,300 crore and an offer for sale of up to Rs 250 crore by its promoter PR Cement Holdings. Currently, P R Cement Holdings holds a 33.41% stake in the company.
Adani Ports raises Rs 1,000 crore by allotment of NCDs
The company has raised Rs 1,000 crore by allotment of 10,000 Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each on private placement basis.
The said NCDs will be listed on the Wholesale Debt Market segment of BSE Limited.
At 15:16 hrs Adani Ports and Special Economic Zone was quoting at Rs 810.65, down Rs 1.25, or 0.15 percent.
Mahindra CIE Automotive Q2FY22 consolidated profit jumps to Rs 166.42 crore
The company reported higher consolidated profit at Rs 166.42 crore in Q2FY22 against Rs 60.76 crore in Q2FY21, revenue jumped to Rs 2,090.7 crore from Rs 1,694.3 crore YoY.
Mahindra CIE Automotive was quoting at Rs 266.60, up Rs 15.75, or 6.28 percent on the BSE.
The share touched a 52-week high of Rs 280.60 and a 52-week low of Rs 127.90 on 26 July, 2021 and 15 October, 2020, respectively.
Currently, it is trading 4.99 percent below its 52-week high and 108.44 percent above its 52-week low.
Cyient Q2FY22 consolidated profit up at Rs 121.3 crore
The company reported higher consolidated profit at Rs 121.3 crore in Q2FY22 against Rs 115 crore in Q1FY22, revenue jumped to Rs 1,111.6 crore from Rs 1,058.2 crore QoQ.
Cyient touched a 52-week high of Rs 1,214 and was quoting at Rs 1,195.85, up Rs 37.85, or 3.27 percent on the BSE.
BSE Oil & Gas index added 1 percent led by the GSPL, ONGC, Petronet LNG, IOC
Market at 3 PM
Benchmark indices continued to trade higher with Nifty around 18500 led by the IT, power, metal and PSU banking names.
The Sensex was up 525.14 points or 0.86% at 61,831.09, and the Nifty was up 155.30 points or 0.85% at 18,493.80. About 1663 shares have advanced, 1538 shares declined, and 133 shares are unchanged.
Weizmann approves buyback up to 14,12,515 equity shares
The company board at its meeting held today i.e on October 16, 2021 has approved a proposal for buyback up to 14,12,515 equity shares of the company for an aggregate amount not exceeding Rs 847.51 lakhs at a price of Rs 60 per equity share.
Weizmann was quoting at Rs 57.95, down Rs 3.05, or 5 percent on the BSE.
The share touched a 52-week high of Rs 70.45 and a 52-week low of Rs 28.20 on 14 July, 2021 and 29 October, 2020, respectively.
Currently, it is trading 17.74 percent below its 52-week high and 105.5 percent above its 52-week low.
BSE Information Technology index added nearly 2 percent led by the NELCO, Zen Technologies, Infosys, Mphasis
Granules India gets US FDA approval for Dofetilide capsules
The US Food & Drug Administration (US FDA) has approved the Abbreviated New Drug Application (ANDA) filed by Granules Pharmaceuticals, Inc. (GPI), a wholly owned foreign subsidiary of the Company, for Dofetilide Capsules, 125 meg, 250 meg, and 500 meg used to treat certain types of irregular heartbeat. The product would be manufactured at the GPI facility located in Chantilly, Virginia, USA and is expected to be launched shortly.
The stock was trading at Rs 326.20, down Rs 2.25, or 0.69 percent. It has touched an intraday high of Rs 330.45 and an intraday low of Rs 323.20.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities
: Crude oil prices traded higher with benchmark NYMEX WTI crude oil prices rose by 1.15% to 82.67 per barrel for the day. MCX Crude oil October futures gained by 1.70% to near Rs 6274 per barrel by noon.
Crude oil prices has gained with rise demand from industries over higher gas and coal prices. On the other hand supply picture is gloomy with OPEC sticking to gradual output hike and lower production form US. Crude oil prices are expected to trade sideways to up with resistance at $85 and support at $81 per barrel. MCX Crude oil October has support at Rs 6,180 and resistance at Rs 6,350.
European markets are under pressure with FTSE, CAC and DAX trading in the red
UltraTech Cement Q2
Net profit was up 12.6% at Rs 1,313.5 crore against Rs 1,166.4 crore (YoY). Revenue was up 15.7% at Rs 12,017 crore against Rs 10,387.1 crore (YoY). EBITDA gained 0.6% at Rs 2,714.4 crore against Rs 2,697.7 crore (YoY) while EBIT margin came in at 22.6% against 26% (YoY).
Market update at 2 PM:
Sensex is up 601.74 points or 0.98% at 61907.69, and the Nifty jumped 181.70 points or 0.99% at 18520.20. Hindalco Industries, JSW Steel and Infosys are the top gainers while HCL Tech and Mahindra & Mahindra are the top losers.
Among the sectors, the metal index jumped over 4 percent while the midcap and smallcap indices added a percent each.
Ramkrishna Forgings wins order from Indian Railways
Ramkrishna Forgings has won a significant order from Indian Railways for the manufacturing of Loco Shells which will be supplied from new Fabrication unit in Jamshedpur, company said in its release.
Ramkrishna Forgings was quoting at Rs 1,206.00, up Rs 42.60, or 3.66 percent on the BSE.
The share touched a 52-week high of Rs 1,259.60 and a 52-week low of Rs 315.15 on 11 October, 2021 and 14 October, 2020, respectively.
Currently, it is trading 4.26 percent below its 52-week high and 282.67 percent above its 52-week low.
Gaurav Garg, Head of Research, Capitalvia Global Research:
Indian equity benchmarks hits fresh high despite weak global clues. Domestic sentiments remained positive after the country’s foreign exchanges rose by USD 2.039 billion to USD 639.516 billion in the week.
Our research suggests that 61,350-61,600 will be an important support level in the market. If the market sustains above 61,600, we can expect the market to trade in the range of 61,600-62,000. Technical indicators also support positivity in the market.
Sachin Bansal raises stake in SML Isuzu to 5.32% in September quarter
Sachin Bansal (Partner Of Navodya Enterprises) has raised his stake to 5.32% in September quarter from 3.87% in June quarter.
However, Jupiter India Fund has reduced the stake to 1.32 percent in June 2021 from 2.39 in September 2021
SML Isuzu was quoting at Rs 669.40, up Rs 56.85, or 9.28 percent on the BSE.
Vodafone Idea partners Larsen & Toubro for Trials of Smart City Solutions on 5G
Vodafone Idea and Smart World & Communication business of leading Engineering & Construction conglomerate Larsen & Toubro have partnered, for a pilot project to test 5G-based Smart City solutions, as part of its ongoing 5G trials on Govt. allocated 5G spectrum.
The companies will collaborate to test and validate 5G use cases built on IoT, Video AI technologies leveraging L&T’s Smart City platform – Fusion, addressing the challenges of urbanisation, safety & security and offering smart solutions to the citizens, in a pilot to be conducted in Pune.
Vodafone Idea Limited was quoting at Rs 10.73, down Rs 0.02, or 0.19 percent and Larsen & Toubro was quoting at Rs 1,797.85, up Rs 8.75, or 0.49 percent.
Market at 1 PM
Benchmark indices extended the gain and trading at day's high level supported by the metal, bank, power stocks.
The Sensex was up 555.55 points or 0.91% at 6186sa1.50, and the Nifty was up 175.80 points or 0.96% at 18514.30. About 1844 shares have advanced, 1300 shares declined, and 138 shares are unchanged.
Rakesh Jhunjhunwala reduces hi holding in Fortis Healthcare
Rakesh Jhunjhunwala's shareholding reduced in Fortis Healthcare to 4.23 percent (3,19,50,000 shares) in September 2021 quarter, from 4.31 percent (3,25,50,000 shares) in June quarter.
Fortis Healthcare was quoting at Rs 267.35, down Rs 6.95, or 2.53 percent.
The share touched a 52-week high of Rs 304 and a 52-week low of Rs 123.30 on 30 August, 2021 and 30 October, 2020, respectively.
Currently, it is trading 12.06 percent below its 52-week high and 116.83 percent above its 52-week low.
BSE Midcap index rose 1 percent led by the Tata Power, NHPC, Adani Power
Shilpa Medicare approves preferential allotment of equity shares worth Rs 297.51 crore
The board of directors of Shilpa Medicare at its meeting held on October 14 approved the preferential allotment of 52.75 lacs equity shares aggregating to Rs. 297.51 crores to various marquee investors at a price of Rs. 564 per share, as per the company's press release.
The fund raising will enable the company to leverage growth opportunities in identified niche areas including Biosimilars and New Biological Entity space, it added.
Shilpa Medicare was quoting at Rs 625.45, down Rs 13.65, or 2.14 percent.
Yash Gupta, Equity Research Analyst, Angel One:
Indiabulls Real Estate has reported results better than market expectations for Q2FY22. The company reported revenue from operation at Rs 349.7 crores as compared to Rs 20.14 crores in Q2FY21, in Q2FY21 several of the companies’ operations are stuck due to covid 19 lockdown. The company reported a profit of Rs 5.64 crores for Q2FY22 as compared to the loss of Rs 76 crores in Q2FY21.
The company has reported a very strong first half of 2022 and we expect the same momentum to continue for the upcoming quarter also. Companies net sales up by 137% at Rs 874 crores for H1FY22 as compared to Rs 368 crores for H1FY21 along with this gross collections are also improved from Rs 284 crores to Rs 654 crores in H1FY22. Companies' overall debt has come down to Rs 967 crores as of 30th September 2021.
Market update at 12 PM
Benchmark indices were holding on the early gains and trading near the day's high with Nifty around 18500.
The Sensex was up 487.91 points or 0.80% at 61793.86, and the Nifty was up 157.50 points or 0.86% at 18496. About 1887 shares have advanced, 1213 shares declined, and 142 shares are unchanged.
Paras Defence share price hits 20% upper circuit
Paras Defence and Space Technologies share price hit 20 percent upper circuit after the company decided to incorporate an associate company for maintenance and servicing of defence equipment.
The Board of Directors at their meeting held on October 18, 2021 have approved incorporation of an associate company in association with Krasny Defence Technologies Limited. The proposed associate company shall be engaged in the field of maintenance, servicing and repairs of defence equipments and naval vessels, the company said in an exchange filing.
Hindalco shares hit new 52-week high:
Hindalco Industries' share price jumped more than 5 percent on October 18 after Credit Suisse reiterated the "outperform" call on the stock and raised target to Rs 640 from Rs 555 per share, an upside of around 18 percent.
It has Hindalco Industries as its top pick in the metal space. The reserach firm has also raised FY23/FY24 EPS estimates by 15 percent/10 percent, according to a CNBC-TV18 report.
The brokerage firm believes that Novellis’ record high scrap spread is a tailwind and will be the main deleveraging trigger.
PSU Bank Index added over 2 percent supported by the PNB, Union Bank of India, Indian Bank
CAINZ partners with TCS to drive business transformation
Tata Consultancy Services has been selected as a strategic partner by Cainz Corporation (CAINZ), Japan’s leading home improvement company, to accelerate its digital transformation, improve customer experience, and drive growth.
Tata Consultancy Services was quoting at Rs 3,627.00, up Rs 15.70, or 0.43 percent on the BSE.
PharmEasy raises $350 million in pre-IPO round: Report
Online medical store PharmEasy has raised nearly $350 million ahead of filing their draft red herring prospectus (DRHP), a report in The Economic Times said - citing regulatory documents and people aware of the matter.
API Holdings Ltd (API), the parent company of PharmEasy has also raised $130-$140 million through secondary share sale, taking its post-money valuation to $5.6 billion, the report added. PharmEasy’s valuation crossed $4 billion after acquiring majority stake in Thyrocare Technologies in June.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
: The uptrend in the market looks set to continue on the back of positive news. India nearing 100 crore vaccination mark and zero Covid deaths in some states is now witnessing robust consumption demand in many segments. HDFC Bank numbers declared last Saturday show 15.5% growth in credit disbursals and indicate sharp pick up in credit growth in the festival season. Bank Nifty which has been an outperformer this month is likely to continue its uptrend. In the short-term the market momentum is so strong that it is likely to eclipse valuation concerns.
Long-term investors should not chase this momentum and buy overvalued stocks. Instead, they should remain invested in high quality stocks and continue to invest in a disciplined manner. FIIs turning strong buyers again in the cash market with Rs 1682 crore buying last Thursday is likely to embolden the bulls. On the flip side, rising crude (brent above $85) and sustained uptrend in commodity prices are macro headwinds for the Indian economy.
Paras Defence share price hits upper circuit
The Board of Directors at their meeting held on October 18, 2021 have approved incorporation of an Associate Company in association with Krasny Defence Technologies Limited. The proposed associate company shall be engaged in the field of maintenance, servicing and repairs of defence equipments and naval vessels. The stock was trading at Rs 759.90, up Rs 126.65, or 20.00 percent. It has touched a 52-week high of Rs 759.90. There were pending buy orders of 94,308 shares, with no sellers available.
Market update at 11 AM:
Sensex is up 459.09 points or 0.75% at 61765.04, and the Nifty jumped 156.50 points or 0.85% at 18495. Hindalco Industries, Titan Company and Tata Motors are the top gainers while Tata Power, IRCTC and HDFC Bank are the most active stocks.
Credit Suisse on HCL Technologies
Credit Suisse has kept outperform rating on HCL Technologies and raised the target price to Rs 1,450 per share.
The revenue growth & margins dragged by P&P, while order book is healthy.
Credit Suisse increases FY22-24 EPS estimates by 1-4%, while retained double-digit growth & 19-21% EBIT margin guidance.
HCL Technologies was quoting at Rs 1,225.75, down Rs 25.15, or 2.01 percent.
Ramkrishna Forgings enters into agreement with PwC
Ramkrishna Forgings has entered into agreement with PwC to make materiality assessment, ESG vision document and implementation roadmap. PwC will develop a ESG Roadmap and integrate it with overall corporate strategy along with implementation of the same, as per company’s press release.
Ramkrishna Forgings was quoting at Rs 1,170.30, up Rs 6.90, or 0.59 percent.
BSE Power index added 2 percent supported by the Tata Power, Adani Power, NHPC
Vinod Nair, Head of Research at Geojit Financial Services:
In the coming week, the domestic market awaits the release of quarterly earnings to determine the market trend. Banking will be the key sector under focus in the coming days as the sector is set to kickstart its earnings season.
With the expectation of a strong recovery in corporate earnings, the Indian market is positioned to continue its bull run. However, any deviation from market expectation may lead to short-term correction in the respective segments
Market at 10 AM
Benchmark indices erased some of the opening gains but still trading higher with Nifty above 18400.
The Sensex was up 380.08 points or 0.62% at 61686.03, and the Nifty was up 127.30 points or 0.69% at 18465.80. About 1938 shares have advanced, 930 shares declined, and 166 shares are unchanged.
Panache DigiLife selected under MSME category of Telecom PLI Scheme by Ministry of Communications
Panache DigiLife has been selected under the Telecom - Production Linked Incentive (PLI) (Scheme for Telecom and Networking Products) by the Ministry of Communications.
This is second PLI for the company after IT Hardware PLI under which the company is poised to manufacture IT products like Servers, Laptops, Tablets & AIO PC.
Panache Digilife was quoting at Rs 62.40, up Rs 2.95, or 4.96 percent on the NSE.
