Investors remained concerned due to positive jobs data from the US on Tuesday. If Fed maintains its hawkish stance, it could push the economy into a recession. Tokyo ended flat on Wednesday but Mainland China and Hong Kong continued to rise. Europe also was trading higher in the morning session.
Indices ended lower on Wednesday as investors wait for Fed’s signal on future rate hikes. Sensex and Nifty drop 215 and 60 points, respectively
Indian indices had a subdued day and ended lower as investors chose to wait for Fed’s signal on the course of future rate hikes.
Sensex shed 215 points to close at 60,906. Nifty too dropped 62 points and ended at 18,082.
Sectoral indices did not see a lot of swings today and remained within a per cent on either side. Auto, PSU Bank, Realty and IT indices traded in the negative in today’s session and topped the list of laggards. Metal and Media ended in the green with decent gains.
Among stocks, Bharti Airtel and Apollo Hospitals shed around 3%, while Maruti dropped more than 2%. Hindalco, ITC and Sun Pharma ended in the green in today’s session.
Asian markets trended cautiously with traders on the sidelines ahead of a looming Federal Reserve rate decision that should also give clues on the future policy path.
Japan’s Nikkei index ended flat on Wednesday, although investors scooped up shares of Sony Group on robust outlook. The Nikkei index turned listless by the afternoon to close 0.05% lower. Shares of Sony surged 7.01% after the conglomerate raised its full-year operating profit forecast by 4.5%.
Chinese and Hong Kong stocks rose on Wednesday on hopes of China’s post-Covid reopening. Hong Kong’s Hang Seng Index and Hang Seng China Enterprises Index jumped more than 2% each. China’s main indexes ended about 1.2% higher, driven also by upbeat remarks from regulators.
European shares advanced on Wednesday as Danish drugmaker Novo Nordisk-led healthcare stocks higher. Investors hope that the U.S. Fed would signal a slowdown in its aggressive policy. The pan-European STOXX 600 index rose in the morning session.
Media index gains in an otherwise lukewarm day at the bourses
This public sector NBFC rises 19% in 1 day amid market selloff. Here’s why
IFCI, previously known as Industrial Finance Corporation of India, recorded approximately a little over 19% upside in shares on Wednesday. The shares continued to witness massive buying on the back of the government increasing its stake in the company. IFCI is a small-cap stock and trades below the ₹12 mark currently.
According to the regulatory filing, the company’s committee of directors allotted 9,29,36,802 equity shares at a price of ₹10.76 apiece (inter-alia including security premium of ₹0.76 apiece) to the Indian government. (Read More)
E-rupee for retail users to be launched this month: RBI governor
The RBI has started a pilot program of its digital currency from Tuesday, allowing select banks to use it for settling secondary-market transactions in government securities. On Day 1, banks traded ₹275 crore of bonds on the first day using the new form of currency. The retail part of the trial of e-rupee will be launched this month.
Reserve Bank of India’s monetary policy committee (MPC) will meet on Thursday, outside its scheduled meetings, to discuss its first-ever inflation target miss, which will require it to write a letter to the government. The central bank aims to keep retail inflation within 2 percentage points on either side of its 4% target over the medium term. (Read More)
Credit Suisse Cut to One Level Above Junk Status by S&P
Credit Suisse Group AG’s long-term rating was downgraded by S&P Global Ratings to just one level above junk status, underscoring the bank’s challenges after it laid out a radical restructuring plan last week.
The Swiss bank’s long-term rating was cut to BBB- from BBB, with a stable outlook. That’s just one notch above the BB “speculative grade.” The US ratings firm, echoing several analyst after the restructuring was announced on Thursday, said it sees “material execution risks amid a deteriorating and volatile economic and market environment.” It also signaled that some details around asset sales remain “unclear.”
Credit Suisse’s new strategy triggered the biggest single-day decline on record on the day, with shares tumbling 18%, as investors weighed the high costs of the plan, the modest return predictions and the significant dilution. The strategic review came as the bank posted a quarterly loss of 4.03 billion Swiss francs, including a large impairment of deferred tax assets related to the revamp. The restructuring will see the investment bank broken up and will cost about 2.9 billion francs ($2.9 billion) through 2024. (Bloomberg)
Air pollution in Delhi reaches alarming level
The pollution in and around Delhi has reached an alarming level as the air quality index (AQI) has been recorded very poor on Wednesday.
According to the Meteorological Department, the AQI in Delhi today was recorded at 354 which falls under the category of very poor.
As per the parameters set by the Union Ministry of Environment, Forest and Climate Change, the AQI category from 301 to 400 is considered very poor and from 401 to 500 severe.
Further, as per the information provided by the air quality data agency ‘SAFAR’, the AQI in Anand Vihar was recorded in the severe category at 406 today, followed by ITO 382 and Akshardham 363. (ANI)
Maruti Suzuki sinks in today’s trading, drops 2%
Maruti Suzuki India (MSI) on Wednesday said it has crossed 2.5 crore cumulative production mark.
MSI started production in December 1983 and crossed the 10-lakh production mark in March 1994. It crossed 1- crore mark in March 2011 and 2-crore milestone in July 2018.
Its first production facility came up in Gurugram, Haryana.
The company now has two manufacturing plants in Gurugram and Manesar in Haryana, with an installed production capacity of 15 lakh units per annum.
Bharti Airtel’s unique 5G users cross 1-million mark
Bharti Airtel has registered more than 1 million unique 5G users on its network in less than 30 days of the commercial launch of the service even as it expands its network in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Siliguri, Nagpur and Varanasi.
“These are early days but the response from customers have been very encouraging. Our network is being built every day even as all 5G devices are now capable of working on the Airtel 5G Plus network barring a few exceptions which should also be done in the coming weeks. We will continue to advance our network with a vision to connect the entire country,” said Randeep Sekhon, CTO, Bharti Airtel.
Airtel is rolling out services in the eight cities in a phased manner as the company continues to construct its network and complete the roll out. (Read More)
Indian airlines FY23 losses may exceed $2.5 billion
It is going to be another turbulent year for the Indian airlines amid increased costs and lukewarm demand environment. Aviation consultancy firm CAPA India has revised its estimate for airlines’ losses for FY23 to $2.5 billion from $1.4-1.7 billion earlier, excluding accounting adjustments and major impairment costs.
CAPA India expects the low-cost carriers to post losses of around $0.9-1 billion and full-service carriers to witness losses of nearly $1.5 billion. (Read More)
JSW Group plans to invest ₹one lakh cr in Karnataka
The JSW Group plans to invest ₹one lakh crore in Karnataka over the next five years, its Chairman Sajjan Jindal said on Wednesday. In his address to the inaugural function of “Invest Karnataka 2022″, the State’s Global Investors’ Meet (GIM) here, he also requested the state government to consider mineral auctions. Jindal said the Group has so far invested over ₹one lakh crore in Karnataka. “And over the next five years, we have plans to invest additional ₹one lakh crore in Karnataka”. The investment would head into expansion of its steel plant, and renewable energy and port infrastructure development space. (PTI)
Rupee falls 12 paise to 82.71 against US dollar
The rupee depreciated 12 paise to 82.71 against the US dollar in morning trade on Wednesday amid a muted trend in domestic equities.
Forex traders said the rupee opened on a flat note ahead of the US Federal Reserve’s much-awaited monetary policy decision later in the day.
At the interbank foreign exchange, the domestic unit opened at 82.64 against the dollar, then lost further ground to quote at 82.71, registering a loss of 12 paise over its previous close.
In initial trade, the local unit also touched 82.62 against the American currency. On Tuesday, the rupee settled at 82.59 against the dollar. (PTI)
Apollo Hospitals sheds more than 2% in today’s trading
Hiring activity flat in October; insurance sector continues to rule: Report
Hiring activity remained flat in October against last year as the month was mostly marked by Diwali festivities and long weekends, according to the Naukri JobSpeak Index. However, when compared with last year’s festive window in November, hiring activity showing an upward trajectory.
The Insurance sector in India continued to witness an increase in demand for professionals across experience bands in October. The sector registered a significant 93% year-on-year growth in the month. (Read More)
PSU Bank index among worst laggards, sheds almost a per cent
Global Health IPO, which operates and manages hospitals under the Medanta brand, launches tomorrow
The three-day initial public offering (IPO) of Global Health Limited, which operates and manages hospitals under the Medanta brand, will open for public subscription tomorrow i.e., November 3, 2022, along with Bikaji Foods which will also launch its issue on Thursday. Global Health has set a price band of ₹319-336 a share for the IPO and the initial share sale will conclude on Monday, November 7, 2022. (Read More)
Japan’s Nikkei closes flat ahead of Fed outcome; Sony jumps
Japan’s Nikkei index ended flat on Wednesday, with traders on the sidelines ahead of a looming Federal Reserve rate decision that should also give clues on the future policy path, although investors scooped up shares of Sony Group on robust outlook.
The Nikkei index flitted in and out of positive territory, but turned listless by the afternoon to close at 27,663.39. Shares of Sony lifted the broader Topix up 0.10% to 1940.46.
“With the FOMC’s outcome due shortly, it was hard for investors to make a move, which made the market almost flat,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“The market focus was shifted to individual stocks, such as Sony and others with strong earnings. And shares with positive outcome rose sharply.”
Shares of Sony surged 7.01% after the conglomerate raised its full-year operating profit forecast by 4.5%. (Reuters)
RBI won’t immediately release letter on inflation response to the government
India’s central bank will not immediately release details of a report to the government explaining why it has failed to stick to its inflation mandate, Governor Shaktikanta Das said.
The Reserve Bank of India’s monetary policy committee (MPC) will meet on Thursday to discuss its first-ever inflation target miss.
The committee is mandated to keep inflation within 2 percentage points on either side of its 4% target. Failure to do so for three straight quarters requires the bank to give an explanation to the government.
Das said on Wednesday that a letter to be sent to the government after the Nov. 3 special meeting will not be made public because the bank does not have the authority to release it.
However, he added he expected the contents will be made public eventually. (Reuters)
Axis Securities recommendations on Tata Steel – HOLD; Varun Beverages – BUY
Tata Steel: Weak Q2, No Sharp Recovery Visible in the Near-term; Maintain HOLD; TP at ₹110
We ascribe 6.0x, 5.0x, and 3.5x multiple to India standalone, other operations (excl standalone), and Europe on Sep’24E EBITDA to arrive at a 1-year forward TP of ₹110/share (from previous TP of ₹115). The TP implies an upside potential of 9% from the CMP. We maintain our HOLD rating on the stock.
Varun Beverages: Robust Performance; Beat in Expectations on All Fronts; BUY with TP at ₹1300
We factored in Revenue/EBITDA/PAT CAGR of 27%/35%/52% over CY21-24E and arrive at a revised TP of ₹1,300/share vs. ₹1150/share earlier, valuing it at 36x Sep-24E EPS. Maintain BUY.
Noon Update: Indices remain in the flat-to-negative territory on Wednesday with Sensex now 170 points lower and Nifty 50 points
IT, Auto and PSU Bank indices drag, while Pharma, Media and Metal gain in today’s trading
Agro chemical stock announces share buyback. Check record date, key details
While announcing its earnings for the second quarter ended September 2022 of the current fiscal or Q2 FY23, Dhanuka Agritech Ltd also said its board has approved buying back 10 lakh shares at ₹850 a share, or up to ₹85 crore. The buyback would be subject to all applicable statutory approvals. The board has fixed Friday, November 18, 2022, as the record date for the share buyback offer. (Read More)
Tractor volumes remain in fast lane shows October wholesale data
In October, tractor sales continued to ride on the momentum seen in September. Wholesale volumes benefitted from inventory channel filling for the recently concluded festival season. In fact, volumes surpassed analysts’ expectations.
Mahindra & Mahindra Ltd (M&M)’s tractor volumes in October grew nearly 7% sequentially and almost 11% year-on-year to 51,994 units. For perspective, analysts at Motilal Oswal Financial Services expected M&M to clock sales of 44,666 tractor units last month. (Read More)
Bharti Airtel drags the market, sheds 2.5% in today’s trading
Bharti Airtel Ltd CEO Gopal Vittal said on Tuesday that the company will keep 5G and 4G tariffs at the same levels for another six to nine months, after which it may decide on fixing 5G tariffs separately. In a call with investors after the company’s second-quarter earnings on Tuesday, Vittal, however, reiterated the need for existing tariff levels to rise. Countries like the US, Thailand and South Korea that had priced 5G differently from 4G saw very little uptake of 5G services, says Airtel CEO.
Specialty business propels Sun Pharma’s Q2 show; stock hits 52-week high
The company’s US formulation sales, contributing 30% to overall revenues, grew 14% year-on-year to $412 million. While the company’s US subsidiary Taro’s Q2FY23 sales of $130 million were marginally lower year-on-year, it was the growth in the US generics business that is likely to have supported growth, said analysts. The ramp-up in the specialty business also propped up the show further.
Continued traction in the specialty products portfolio was the key driver in Q2, said analysts at HSBC Securities and Capital Markets (India) Private Limited.
The company said its global specialty business grew 27.5% driven by Ilumya, Cequa and Winlevi. (Read More)
Bikaji Foods IPO: GMP steady ahead of subscription opening tomorrow
FMCG firm Bikaji Foods International’s three-day initial public offering (IPO) will open for public subscription tomorrow i.e., November 3, 2022 and conclude on Monday, November 7, 2022. The price band has been fixed in the range of ₹285 to ₹300 per share for its ₹881 crore-initial share sale.
As per market observers, Bikaji Foods shares are commanding a premium (GMP) of ₹73 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on Wednesday, November 16, 2022. The finalisation of the basis of share allotment is expected to take place on Friday, November 11, 2022. (Read More)
Prabhudas Lilladher stock report on Dhanuka Agritech and Music Broadcast
Dhanuka Agritech (DAGRI IN) – Himanshu Binani – Research Analyst: Rating: BUY | CMP: Rs728 | TP: Rs940
Margin pressure likely to persist in near term
We broadly maintain our FY23/24 EPS and expect DAGRI to clock Revenue/PAT CAGR of 13%/12% each over FY22-FY25E. We introduce FY25 estimates and roll forward our valuations to FY25E. Maintain ‘BUY’ with a revised TP of INR940(earlier Rs850) based on 15xFY25E EPS.
Music Broadcast (RADIOCIT IN) – Jinesh Joshi – research analyst: Rating: HOLD | CMP: Rs24 | TP: Rs23
Yield recovery eyed
We retain our HOLD rating given strong liquidity position (Rs2,840mn of cash balance as on 1HFY23 which is ~34% of market cap) and strategy to diversify the business (digital to have ~50% share in 5 years) away from radio. We arrive at a TP (50% weight to DCF and EV/EBITDA methodology) of Rs23. We continue to value the stock at 5.5x Sep-24 EBITDA (no change in target multiple).
India sees 13% rise in Covid cases today; infection count surges to 4.46 crore
A total of 1,190 Covid-19 cases were reported in India on Wednesday, according to the latest data by the Union Ministry of Health. While the number of active cases of the infection has declined to 16,243, it added. A decrease of 1,375 cases was recorded in the active Covid caseload in a span of 24 hours. While an increase of 144 cases was reported in the same duration.
The death toll due to the viral disease has climbed to 5,30,452 with 1,375 more fatalities, including 1,369 deaths reconciled by Punjab and two reconciled by Kerala, according to the ministry’s data updated at 8 am. (Read More)
Ashika Stock Broking on today’s market: Indecisiveness among bulls and bears about the future market trends
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking: On the technical front, Nifty formed a Doji pattern on the daily charts, indicating indecisiveness among bulls and bears about the future market trends. Hence, a temporary breather from here on can be expected however such price structure should not be construed as negative. Instead, dips should be used as buying opportunity as it seems unlikely that Index might breach the support level of 17500. Overall positive structure in Index remains with an expectation that it would head towards 18600. Positive outlook in the Index is based on the observation that recent Nifty has provided a breakout from past three week’s consolidation (17500-16900) along with broader participation and relative outperformance against global peers. Elevated support base for the market is at 17500 as it happens to be the 50 days EMA. The momentum indicator RSI (relative strength index) is also moving near 60 levels, which further reaffirms that positive momentum of the index for the short to medium term is likely to remain. During the day index is likely to open on a subdued note due to negative global cues however trend is likely to remain positive and buy on dip strategy towards 18050-18000 would be the ideal approach going forward for an upside target of 18275-18300.
Sun Pharmaceuticals shine in today’s session, gains more than 2%
Sun Pharmaceutical Industries Ltd on Tuesday reported a 10.51% increase in consolidated net profit at ₹2,262.22 crore for the second quarter ended September 30, 2022. The company had posted a consolidated net profit of ₹2,047.01 crore in the same period last fiscal, Sun Pharma said in a regulatory filing. (PTI)
Is the worst over for Nykaa shares? Top brokerages say time to ‘buy’ now
Shares of Nykaa have declined significantly in the past few sessions, ahead of the 10 November expiry of the one-year lock-in period for its pre-IPO shareholders. Though, brokerages are bullish on the stock post Nykaa’s Q2 results.
“Nykaa Q2 was better than estimates on GMV, revenues & Ebitda led mainly by BPC which enjoyed a strong YoY growth across parameters. Fashion was modest despite a low base, highlighting profitability focus. Own labels and retail footprint got a fair share in mgmt. comments. Nykaa has made senior level appointments (CTO, B2B, Own labels). We u/g our Ebitda estimates on better margins & retain BUY – expect share price volatility ahead of lock-up expiry next week. We upgrade our FY23-26E Ebitda estimates by 24-33% on better margins,” said global brokerage Jefferies while maintaining Buy rating on Nykaa shares with a target price of ₹1,650 apiece. (Read More)
Adani Flagship’s Shares Approach Record Levels Before Earnings
Billionaire Gautam Adani’s flagship firm is set for another bout of scrutiny on Thursday when it reports earnings for the latest quarter as its stock overcomes recent weakness to recoup record levels.
Shares of Adani Enterprises Ltd., which have been investor darlings for years now, are just 7% away from a record level reached in September. The stock opened lower on Wednesday after a 6.8% rally in the previous session. It has more than doubled this year.
The flagship firm has been expanding its presence in various new businesses including airports and agri logistics and is looking to raise at least $10 billion in new debt, Bloomberg News reported last month. (Bloomberg)
Auto index sheds the most in early trading; most stocks in red
Credit Suisse Downgraded by S&P on Risks to Planned Overhaul
Credit Suisse Group AG’s long-term rating was downgraded by S&P Global Ratings, underscoring the challenges to achieve a turnaround after the Swiss bank laid out a radical restructuring plan last week.
“We see material execution risks amid a deteriorating and volatile economic and market environment and note that some details around asset sales remain unclear,” S&P said as it cut Credit Suisse’s long-term rating to BBB- from BBB, with a stable outlook.
Meanwhile, Moody’s affirmed the bank’s senior unsecured debt rating, and downgraded the long-term senior unsecured debt of a major subsidiary of the Swiss bank. (Bloomberg)
India may let Chinese firms enter via JVs with local companies- Reports
The Indian government is open to letting Chinese companies enter the country’s high-tech electronics sector should they set up manufacturing plants in tie-ups with local companies, the Economic Times newspaper reported on Wednesday, citing officials who declined to be named. (Reuters)
Hindalco shines in early trading, gains more than 2%
Cryptocurrency prices today: Bitcoin, ether gain marginally; dogecoin rallies 11%
Cryptocurrency prices today rose as the world’s largest and most popular digital token Bitcoin’s price today was trading almost flat with positive bias at $20,533. The crypto market’s recent sideway price actions are related to the upcoming macroeconomic events across the global markets, as per experts.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also surged by nearly a per cent to $1,591. (Read More)
Metal Index gains in early trading, climbs 1%
Indices open flat with a little tilt towards the negative; Tata Steel gains, while Airtel sheds
Geojit Financial Services views on today’s market: The Fed is likely to continue with its hawkish stance but any mildly dovish signal will be positive for markets
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Globally markets are waiting for the Fed commentary tonight. 75 bp rate hike is given and already discounted by the markets. So it will be the Fed’s commentary and probable guidance that would be market moving. The Fed is likely to continue with its hawkish stance but any mildly dovish signal will be positive for markets. In the absence of any rate moderation signal, markets are likely to correct. So investors may wait and watch for this big event.
Q2 results are panning out on expected lines. A notable feature is the superior performance of the premium segment, particularly in automobiles, and the very good results of financials, particularly banking. Apart from the excellent performance of the leading private banks, many PSU banks, too, have done well. Since this PSU segment is under-owned and cheap there is some scope for further short-term rally.
Sensex preopens in the negative territory; Adani Ports, TechM, Infosys, UPL will be in focus today
Oil Extends Gains After Report Points to Shrinking US Stockpiles
Oil extended gains after an industry report pointed to another big decline in US crude inventories, adding to signs of market tightness.
West Texas Intermediate futures rose above $89 a barrel after closing around 2% higher in the previous session. The American Petroleum Institute reported crude stockpiles shrunk by 6.53 million barrels last week, according to people familiar with the data. Investors are also waiting for an interest-rate decision from the Federal Reserve later Wednesday to gauge the outlook for demand.
Crude has rebounded this quarter after a decision by the OPEC+ alliance to slash production from November, halting a prolonged slide that was prompted by economic slowdown concerns. The cartel’s cuts will be followed by European Union sanctions on Russian oil, further clouding the supply outlook. (Bloomberg)
DCX Systems IPO: Latest GMP on the last day of subscription
The initial public offering (IPO) of DCX Systems, manufacturer of cables and wire harness assemblies, got subscribed 8.57 times on the second day of the offer on Tuesday. DCX Systems’ IPO opened for public subscription on Monday, October 31, 2022 and will conclude on Wednesday, November 2, 2022.
The price band has been fixed at ₹197 to ₹207 per share. The company on Friday said it has raised ₹225 crore from anchor investors days ahead of its initial share sale.
As per market observers, DCX Systems shares are commanding a premium (GMP) of ₹82 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Friday, November 11, 2022. (Read More)
India’s JK Tyre reports 23% fall in quarterly profit on higher costs
Indian tyremaker JK Tyre and Industries Ltd posted a 23% fall in its second-quarter profit on Tuesday, hurt by higher input costs.
Consolidated net profit came in at 513.1 million rupees ($6.22 million) for the quarter ended Sept. 30, compared with 665.6 million rupees a year earlier. Revenue from operations rose 25.8% to 37.57 billion rupees.
Total expenses rose 26.6% to 36.68 billion rupees, with input costs up 20.7%. Oil prices have risen sharply after Russia’s invasion of Ukraine earlier this year, raising the cost of petrochemicals which are used as a key component in tyre manufacturing. (Reuters)
Stocks to Watch: Adani Ports, TechM, Infosys, Airtel, ONGC, UPL, Hero Motocorp, JK Tyre, LIC Housing Finance, Macrotech Developers, Reliance
Adani Transmission, P&G, Dalmia Bharat, Kajaria Ceramics, Grindwell Norton will be among the stocks in focus as they declare their September quarter earnings today. (Read More)
Fusion Microfinance IPO: Should you apply or skip as issue opens today? GMP, other details
The initial public offering (IPO) of microlender Fusion Microfinance will on Wednesday, November 2, 2022, and the issue, with a price band of ₹350-368 a share, will conclude on Friday, November 4, 2022. The company on Tuesday said it has raised a little over ₹331 crore from anchor investors ahead of its initial share sale.
As per market observers, Fusion Microfinance shares are commanding a premium (GMP) of ₹35 in the grey market today. The company’s shares are expected to list on stock exchanges BSE and NSE on Tuesday, November 15, 2022. (Read More)
INDIA BONDS-Bond yields seen little changed ahead of Fed policy decision
Indian government bond yields are expected to be little changed in early trades on Wednesday, ahead of the U.S. Federal Reserve’s much-awaited monetary policy decision later in the day.
The benchmark 10-year yield is likely to be in a 7.38%-7.43% band, a trader with a private bank said. The yield had ended five basis points lower at 7.3957% on Tuesday.
“We are back to 7.40% levels and any major incremental buying from this point needs a fresh trigger,” the trader said.
“The Fed’s forward guidance would be the major focus area as the rate action is already discounted in prices.” (Reuters)
Govt exempts big retailers from stockholding limits on edible oils, oilseeds
With easing edible oil prices in the domestic and international market, the union government on Tuesday exempted wholesalers and big chain retailers from the stock limit order on edible oil and oil seeds with immediate effect.
The ministry of consumer affairs, food & public distribution said that the stock limit order was imposed in the country due to increasing prices of edible oils and to check hoarding, profiteering & black marketing.
The removal will also have a positive effect on the oilseed prices as it will boost procurement of the oilseeds hereby increasing the returns of domestic oilseeds growing farmers, the ministry added. (Read More)
Expert views on Nifty’s performance on Tuesday – Geojit Financial Services, LKP Securities, Kotak Securities, Ashika Stock Broking
Vinod Nair, head of research at Geojit Financial Services: The bulls are driving the trend in the domestic market with backing from FIIs and the global markets. The PMI numbers show that manufacturing activity in India remained strong in October and that pricing pressures were kept in check as new orders and production increased, albeit slowly. Investors are keeping an eye on the central banks’ policy meetings for any indications of a slowdown in the pace of rate hikes.
Rupak De, senior technical analyst at LKP Securities: After starting higher the Indian Nifty remained strong throughout the session. On the daily chart, the index has moved above the previous swing high. The daily RSI is in bullish crossover. The trend remains strong as long as it remains above 18000. On the higher end, resistance is visible at 18300.
Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd: The benchmark indices continued positive momentum fourth day in a row, the nifty ended at 129 points higher while the Sensex was up by 375 points. Among Sectors, Metal and Pharma indices outperformed whereas intraday profit booking was seen in selective PSU Banks stocks. Technically, after promising 18000/60500 breakout last Tuesday, the market opened with a gap up and after strong opening the entire day it was hovering between 18060-18175/60870-61280. In addition, on daily charts, the index has formed Doji candlestick formation which indicates indecisiveness between the bulls and bears. However, the medium-term texture of the market is still on the positive side. for the trend following traders now, 18050/60870 would be the trend decider level. Above the same, the index could move up to 18250-18300/60400-60500. On the flip side, quick intraday correction is not ruled out, if the index succeeds to trade below 18050/60870. Below the same, the index is likely to touch 17950 -17900/60500-60400. The short-term texture of the market is mildly overbought hence level based trading would be the ideal strategy for the day traders.
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: Nifty started the day on a positive note however volatility ruled the day ahead of the crucial Central Banks meet which will decidedly affect the stock market trend. The benchmark indices were seen shifting the range on the higher side as it provided a resonant breakout above the six-month-old high of 18114. Daily price action of higher high formation indicating continuance of positive bias and is likely to challenge the immediate hurdle of 18350 and gradually head towards 18600 in medium term. The elevated support base for the market is now at 17500 which seems unlikely to breach. Cool-off in Dollar index had been providing stability to the rupee against the US dollar, also sliding Oil prices following weak Chinese factory data is likely to support Indian equities going ahead.
After Thums Up and Sprite, Coca-Cola sets goal for Maaza to reach $1 billion
After scaling the milestone of $1 billion in annual sales for its Thums Up and Sprite brands, Coca-Cola India said on Tuesday that it is on track to ensure that its mango drink Maaza reaches $1 billion in annual sales by 2024.
“We would love to have one juice brand getting into that ($1 billion portfolio) very clearly—that’s our ambition. It may take a little bit longer, may not be by next year. Because one of the issues which happened is that this year, the mango crop has fallen, the price of mango is obnoxiously high. We have done good work in building operations for Maaza. If it happens, it’s good but definitely it will happen by 2024; if it happens by 2023 it will be a bonus,” Sanket Ray, president for India and South-West Asia, Coca-Cola, said during a media interaction at the company’s headquarters in Gurugram. (Read More)
LIC Housing Finance net profit rises 23% in second quarter
The second largest pure-play mortgage lender LIC Housing Finance on Tuesday announced a 23 per cent on-year growth in net profit at ₹305 crore for the three months period ending September.
The subsidiary of the country’s largest insurer LIC said its net interest income for the quarter declined marginally (80 basis points) to ₹1,163 crore from ₹1,173 crore, but the management did not give any reason for the same.
Individual loan disbursements declined marginally to ₹14,300 crore from ₹14,330 crore in the reporting quarter, taking total disbursements to ₹16,786 crore up 4 per cent from ₹16,110 crore, led by a 15 per cent increase in project loans at ₹407 crore from ₹353 crore. This pushed the total outstanding loan portfolio up 10 per cent at ₹2,62,336 crore, helping the company earn 8 per cent more in revenue from operations at ₹5,086 crore from ₹4,708 crore. (PTI)
57% of employers in manufacturing sector keen on hiring: Report
With a strong growth trajectory, the manufacturing sector in the country has anticipated an increase in hiring outlook as 57% of employers have expressed their intent to hire from October to December, according to a report.
Around 57 per cent of employers have expressed the intent to hire and expand their resource pool, TeamLease Services ‘Employment Outlook Report for Q3 (October to December 2022) for the manufacturing sector said on Tuesday.
From a macro perspective, the overall intent to hire, across manufacturing and services sectors combined, is projected to cross 70 per cent in the next few quarters, it stated.
“Post-Covid, global employment growth has recovered by 2.7 per cent and is currently on a strong growth trajectory in H2 2022. The third-quarter projections for the intent to hire, especially in the manufacturing segment, stand strong. (PTI)
Registrar of Companies (RoC) starts inquiry into MG Motor India affairs
The Registrar of Companies (RoC) has started an inquiry into the affairs of MG Motor India and has summoned the company’s top brass along with the company’s statutory auditor later this month, a person familiar with the development said.
The RoC inquiry is instituted under a provision in the Companies Act which involves more than a step of seeking information but is short of full-fledged investigation, the person said. The inquiry is around suspected financial irregularities but it is too early to comment upon that, the person said.
MG Motor India acknowledged the RoC communication and said it is a law-abiding, professionally managed company that adheres to the highest standards of compliance and governance and is committed to transparency. (Read More)
Infosys to take shareholders’ nod during Nov 3 – Dec 2 for ₹9,300-cr share buyback
Infosys will seek shareholders’ nod for its proposed ₹9,300 crore share buyback between November 3 to December 2 through postal ballot, the company said in a regulatory filing.
The Infosys board on October 13 had announced a share buyback of ₹9,300 crore via the open market route, for a price not exceeding ₹1,850 per equity share.
“…the Company is required to obtain the approval of its Members for the Buyback by way of a special resolution through Postal Ballot or at a general meeting by providing the facility to Members to vote by electronic means. Accordingly, the Company seeks your approval for the Buyback through this Postal Ballot Notice,” the filing said.
The board decided to return approximately 85 per cent of the free cash flow cumulatively over a five-year period through a combination of semi-annual dividends, share buyback, special dividends etc. (PTI)
Rupee rebounds 22 paise to 82.59 against US dollar
The rupee appreciated 22 paise to close at 82.59 against the US dollar on Tuesday amid persistent foreign fund inflows and a weakening greenback overseas.
At the interbank foreign exchange market, the local currency opened at 82.74 and witnessed a high of 82.59 and a low of 82.79.
It finally settled at 82.59 against the American currency, registering a rise of 22 paise over its previous close of 82.81.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.49 per cent to 110.98. (PTI)
Gold rises over 1% in run-up to Fed rate announcement
Gold rose over 1% on Tuesday as the US dollar and bond yields slipped from session highs, with the focus turning to a key Federal Reserve announcement for cues on whether it would scale back or retain its aggressive stance on interest rate hikes.
Spot gold rose 0.9% to $1,647.24 per ounce by 3:14 p.m. ET (1914 GMT), going as high as $1,696.94 earlier in the session. U.S. gold futures settled up 0.6% at %1,649.70. (Read More)
Airtel for higher rates, but to keep 5G at 4G tariffs for now
Bharti Airtel Ltd will keep 5G and 4G tariffs at the same levels for another six to nine months, after which it may decide on fixing 5G tariffs separately, chief executive officer Gopal Vittal said. In a call with investors after the company’s second-quarter earnings on Tuesday, Vittal, however, reiterated the need for existing tariff levels to rise.
Vittal also flagged that countries like the US, Thailand and South Korea that had priced 5G differently from 4G saw very little uptake of 5G services, with only a fraction of customers of local telcos opting for the premium 5G plans.
“In some markets where operators have chosen to price 5G at 10-20% premium, what we find is that the take rate is a fraction of the full base of customers; so, in other words, the ARPU is an illusion. Ultimately, what we need for monetization is the tariff table in itself to go up… also right now (we are) just building out the network and then we take a decision as to what to do in maybe six to nine months,” Vittal said. (Read More)
Tech Mahindra profit dips on staff, R&D costs
Tech Mahindra Ltd on Tuesday posted a 4.1% drop in quarterly net profit hit by expenses on new hires and investments in research and development (R&D) projects.
Profit in the three months ended 30 September fell to ₹1,285.4 crore from ₹1,340.9 crore in the previous year. Rupee revenue rose 21% to ₹13,129.5 crore from ₹10,881.3 crore during the period. Dollar revenue grew 11% to $1.63 billion from $1.47 billion. The software services firm reported an attrition rate of 20% in the quarter, which was noticeably lower than its peers in the Indian IT sector that’s grappling with attrition rates of 21-25%.
A 27% jump in expenses hit Tech Mahindra’s net profit in the quarter. This led to an 11% fall in Ebit (earnings before interest and taxes) to ₹1,468 crore. Ebit margin too, fell 3.8 percentage points to 11.4% in the quarter. (Read More)
Windfall tax on crude oil reduced; levy on export of diesel, ATF hiked
The Central government has reduced the windfall tax on crude oil to ₹9,500 a tonne from ₹11,000, showed an official notification. The change is effective from 2 November, a government notification showed.
The reduction in the tax is over 13%. The windfall tax levied as special additional excise duty is aimed at absorbing the super-profits earned by domestic crude oil producers and is revised every fortnight. (Read More)
Adani Ports and Special Economic Zone (APSEZ) posted a 33% year on year rise in revenue
Adani Ports and Special Economic Zone (APSEZ) posted a 33% year on year rise in revenue to ₹5211 crore in Q2FY23 while EBITDA rose to 31% to ₹3260 crore . PAT jumped 65% to ₹1738 crore from the same period of FY22. Quarterly cargo volume jumped 15% on year to 86.6 mn tonnes .
The company said records were set in the first half (Apr-Sep) of the current fiscal .
“H1 FY23 is a record half-year in APSEZ’s history, with the highest ever cargo volume, revenue and EBITDA,” said Karan Adani, CEO and Whole Time Director of Adani Ports and Special Economic Zone. “Extending this strong performance into October, APSEZ achieved 200 MMT of cargo through-put within seven months, another new milestone.”
For H1 FY23, this record cargo volumes have resulted in a 24% Y-o-Y jump in Port EBITDA, while the EBITDA of the logistics business jumped 57% Y-o-Y. The margin expansion of the logistics segment continued with a 470 bps Y-o-Y jump on the back of better utilization of assets and increased share of the GPWIS (general purpose wagon investment scheme)revenue stream, the company said post the results. (Read More)
Wall Street stocks end lower as hot jobs data signals aggressive Fed
Stocks on Wall Street gave up early gains and closed lower Tuesday after an unexpectedly strong report on the job market raised concerns that the Federal Reserve will need to keep the pressure on inflation with aggressive interest rate increases.
The S&P 500 fell 0.4% after having been up as much as 1% shortly after trading opened. The Dow Jones Industrial Average fell 0.2% and the Nasdaq composite dropped 0.9%.
Big technology stocks were the biggest weights on the market. The companies, with their big valuations, have more heft in pushing the broader market up or down. Also, rising interest rates tend to make the sector look less attractive because of those high valuations. Apple fell 1.8%.
Communication services stocks, retailers and other companies that rely on consumer spending also helped drag down the overall S&P 500, keeping gains in banks, energy firms and other sectors of the market in check. (AP)
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