Share Market Today: Sensex, Nifty Trim Weekly Losses As IT, Bank Stocks; FPIs Stay Net Sellers

Overseas investors stayed net sellers for the sixth day in a row on Friday.

As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 1,011.23 crore.

On the contrary, Domestic institutional investors stayed net buyers and bought equities worth Rs 1,624.13 crore.

Institutions have net bought Rs 1,487.83 crore worth of equities in October so far and net sold Rs 36,338.78 crore worth of Indian equities till date in 2022.

Indian currency closed with marginal gains at 82.33/$ on Friday.

Source: Bloomberg

Yield on the 10-year bond rose 5bps, the most since Oct.6, to close at 7.47% during the session.  

Source: Bloomberg

Indian stock benchmarks ended higher on Friday, trimming the weekly losses, as declines in oil and gas and power stocks were offset by gains in banking and information technology stocks.

The Sensex added about 1.2% to close at 57,919.97. The Nifty 50 added about 1% to close at 17,185.70.  

Today, 30 of the Nifty 50 stocks advanced while 20 declined. Infosys Ltd., HCL Technologies Ltd., HDFC Bank Ltd., HDFC Ltd. and ICICI Bank Ltd. were the top gainers.

ONGC Ltd., Mahindra & Mahindra Ltd., JSW Steel Ltd., Bajaj Auto Ltd. and Adani Enterprises Ltd. were the top losers.

The stock indices opened the week with losses and closed the week with gains. The indices gained in one session (Wednesday), while it declined in the remaining three sessions (Monday, Tuesday and Thursday).

Sectorally, information technology and banking stocks gained, while realty, media, metals and auto stocks dragged the weekly index performance.

The broader indices underperformed their larger peers. The MidCap gauge fell 0.13%, while the SmallCap remained unchanged.

Nine of the 19 sectoral measures compiled by the BSE Ltd. declined, with Oil & Gas, Power, Utilities, falling over 1%.

The market breadth was skewed in favour of bulls. About 1,830 stocks rose, 1,616 fell and 147 remained unchanged.

Yield on the 10-year bond rose 5bps to 7.48% during the session.

Source: Bloomberg

Shares of Ramkrishna Forgings Ltd. rose over 8%, most in nearly three months since July 21, after company fixed Record Date for payment of Interim Dividend.

Ramkrishna Forgings has fixed Nov 2, 2022 as the Record Date for the purpose of payment of Interim Dividend.

The Board of Director in the meeting scheduled on Oct 21, 2022 will consider and approve the Unaudited Standalone and Consolidated Financial Results of the Company for the Quarter and Half Year ended 30 September, 2022 and second Interim Dividend, if any, company said in the exchange filings

Trading volume is 5.3 times the 30-day average.

Of the five analysts tracking the company, four maintain 'buy' and one recommends 'sell'. The return potential of the stock is -1.5%.

Source: Bloomberg, Exchange Filing

Adani Enterprises clarified that it is not evaluating any proposal to buy Jaypee cement business.

The company is not in a position to comment on the veracity of said media report.

On Oct.13 Jaypee Group’s Jaiprakash Associates said the company does not comment on market speculation.

Source: Exchange filing

Shares of Spandana Sphoorty Financial Ltd. rose over 4.3%, most since Tuesday.

Trading volume is 0.7 times the 30-day average. All five analysts tracking the company maintain 'buy'. The return potential of the stock is 23.9%.

The company informed exchanges on Friday that it approved the issance of secured, rated, listed, non-convertible debentures upto Rs 60 crore only on private placement basis, in its board meeting today.

Source: Exchange filing, Bloomberg

Shares of Bharti Airtel rose nearly 1.5%, most in a over a week since October 4, and are on course to snap a four-day losing streak, after company announced the launch of the “Always On” IoT connectivity solution in India at the India Mobile Congress.

Airtel’s “Always On” solution comprises dual profile M2M eSim which allows an IOT device to always stay connected to a mobile network from different Mobile Network Operators (MNOs) in the eSIM, company said in the exchange filings.

The Airtel ‘Always On’ solution complies with the Automotive Research Association of India (ARAI)’s AIS-140 standard implemented by the Ministry of Road Transport and Highways (MoRTH).

According to the exchange filing, “ Always On” lays down mandatory requirements related to connectivity and GPS tracking capabilities for devices in all passenger-carrying buses, private fleets and other public transport vehicles for tracking, safety and security purposes.

"We believe this is the next big opportunity in the IoT segment. Our strengths in the network, modern and GSMA compliant platform offering real-time access to data and flexibility to integrate the solution with custom APIs will make Airtel Business stand out in the market”, Mr Ajay Chitkara, Director and CFO of Airtel Business said.

Of the 34 analysts tracking the company, 31 maintain 'buy', two suggest 'hold' and one recommend 'sell'. The return potential of the stock is 14.4%.

Source: Bloomberg, Exchange Filing

European markets opened higher amid reports that UK government may scrap some of the proposals in the mini-budget. Pound surges 2%.

Source: Bloomberg

Shares of Birlasoft Ltd. rose over 3.7% during the session, most in over a week since October 6, after company fix Record Date for payment of Interim Dividend.

Birlasoft has fixed Nov 2, 2022 as the Record Date for the purpose of payment of Interim Dividend, if declared by the Board of Directors in the meeting scheduled on Oct 21, 2022, company said in an exchange filing.

Trading volume is 1.1 times the 30-day average.

Of the 12 analysts tracking the company, 11 maintain 'buy', one suggests 'hold'. The return potential of the stock is 39.1%.

Source: Bloomberg, Exchange Filing

India's stock benchmarks advanced most in over a week since October 4, aided by broad based gains across sectors led by information technology and financials.

The Sensex rose 2.05% to 58,409.75. The Nifty 50 gained 1.92% to 17,340.85. Today 48 stocks rose one declined and one remain unchanged on Nifty 50 .

Infosys, HCL Technologies, HDFC Bank, HDFC Ltd and UPL Ltd were the top gainers on Nifty 50.

JSW Steel and Power Grid Corporation were the top losers on Nifty 50

The broader indices underperformed their larger peers MidCap and SmallCap, gaining over 0.90%. All of the 19 the sectoral measures complied of BSE advanced with BSE Information & Technology gaining the most over 3%.

The market breadth is skewed in the favour of bulls. About 2,378 stocks rose, 937 fell and 148 remained unchanged

Rise in prices of mineral oils, food articles, crude petroleum & natural gas, chemicals & chemical products, basic metals, electricity, textiles contributed most to September WPI inflation reading.

WPI inflation for September rose less than Bloomberg estimate of 11.30%.

Primary article prices rose 11.73% YoY Vs. 14.93% in August

Fuel, power, lighting prices rose 32.61% YoY Vs 33.67% in August

Manufactured product prices rose 6.34% YoY Vs. 7.51% in August

Source: Ministry of Commerce & Industry

Yield on the 10-year bond rose 3bps to 7.46% during the session.

Source: Bloomberg

Asian Energy Services JV gets letter of award worth Rs 161 crore for coal handling plant.

Asian Energy Services, along with its joint venture partner Furnace Fabrica (India) has secured contract worth Rs 161 crore from The Singareni Collieries Company for a coal plant.

The deal includes design, supply, erection, commissioning, construction and testing of a coal handling plant at RG OC3 mine in Telangana state.

Asian Energy "well positioned" to engage in further expansion and is scouting opportunities to broaden service offerings in energy sector.

Confident of turning coal evacuation infrastructure into a stable business vertical as Government aims to increase domestic coal production to 1.2 billion metric tonnes.

Source: Exchange filing, Bloomberg

PNC Infratech received communication from the National Highways Authority of India confirming the financial closure of two projects, worth Rs 2,926 crore.

The two projects- Kanpur Lucknow Expressway packages I and ll, under special purpose vehicles Kanpur Lucknow Expressway Pvt. Ltd. and Awadh Expressway Pvt. Ltd., are on hybrid annuity mode.

The bid cost for the project handled by Kanpur Lucknow Expressway is Rs 1,413 crore and the one handled by Awadh Expressway is Rs 1,513 crore.

Source: Exchange filing, Bloomberg

Shares of L&T Ltd rose over 3.2%, most in over a week since October 4, after company secured (significant) order for the Water & Effluent from the Narmada Water Resources, Water Supply & Kalpsar Department, Govt. of Gujarat, to execute pumping system and pipeline works from Tappar Dam to Nirona Dam (Northern Link).

The project falls under the significant category, value between Rs 1,000 crore and Rs 2,500 crore.

This is the single largest order secured by the Business in Gujarat, company said in the exchange filing.

The scope of work involved Design, supply, Construction & Commissioning of pump houses & pipeline with associated electrical & automation works.

According to the exchange filings, the turnkey project aims to strengthen water resources in Kachchh district of Gujarat by filling existing reservoirs that will irrigate 36,392 Ha of land.

Trading volume is 1.5 times the 30-day average. Of the 41 analysts tracking the company, 40 maintain 'buy', one suggests 'sell'. The return potential of the stock is 7.4%.

Source: Bloomberg, Exchange Filing

Shares of Cyient fell over 3%, most since Tuesday. Trading volume is more than 10 times the 30-day average.

The decline comes after the company reported net profit below average analyst estimate, for the quarter-ended September post market hours on Thursday, dragged by over 30% rise in costs.

Cyient Q2 FY23 (Consolidated, QoQ)

Revenue up 12% at Rs 1396 crore Vs Rs 1,250 crore (Bloomberg estimate: Rs 1,413 crore)

EBIT down 0.35% at Rs 141.6 crore Vs Rs 142.1 crore

EBIT margin 10.14% Vs 11.37%

Net profit down 32% at Rs 79.1 crore Vs Rs 116.1 crore (Bloomberg estimate: Rs 120 crore)

Declared interim dividend of Rs 10 per equity share on par value of Rs 5 each

Of the 20 analysts tracking the company, 15 maintain 'buy', four suggest 'hold' and one recommends 'sell'. The return potential of the stock is 23.7%.

Source: Exchange filing, Bloomberg

Indian currency appreciated 23 paise to 82.12 against U.S. dollar, during the session. Rupee erased gains to trade at 82.36.

Source: Bloomberg

Shares of PSP projects rose over 4.2%, after company announced that it emerged as the lowest bidder for a Government Project for Development of World class Sustainable Tourist/ Pilgrimage destination in Gujarat.

The Bid Value is worth Rs 345.30 Crores (excluding GST), the company said in the exchange filings.

The company is scheduled to report its Q2 numbers on Tuesday (October 18)

Trading volume is 2.2 times the 30-day average.

All 10 analysts tracking the company maintain 'buy'. The return potential of the stock is 6.3%.

Source: Bloomberg, Exchange Filing

Shares of Unichem Laboratories rose over 2.5%, after the company received approval for Extended Phenytoin Sodium Capsules USP

Unichem Laboratories got approval from USFDA to market generic version of Dilantin (Phenytoin Sodium) Capsules, 100 mg, of Viatris Specialty LLC, company said in the exchange filings

Extended Phenytoin Sodium Capsules are indicated for the treatment of tonic-clonic (grand mal) and psychomotor (temporal lobe) seizures and prevention and treatment of seizures occurring during or following neurosurgery. The product will be commercialized from Unichem’s Ghaziabad Plant.

Source: Bloomberg, Exchange Filing

Shares of Anand Rathi surged nearly 7.5%, most in five months since May 17, after company reported a consolidated net profit of Rs 83 crore for April - Sep 2022 (H1FY23), an increase of 37% YoY compared to April – Sep 2021 (H1FY22). Total revenue during same period rose 34% to Rs 272 crore, according to the exchange filing.

Private Wealth (PW) (Holding Company)

• Total Revenue increased by 35% to Rs 262 crore

• PAT grew by 38% to Rs 82 crore

• Net flows grew by 106% to Rs 2,474 crore

• AUM increased by 15% to Rs 34,893 crore

• Share of Equity Mutual Funds in AUM increased to 48% (PY 43%)

• Trail Revenue grew by 33%

• Active client families increased by 19% to 7,928

• Number of RMs stood at 271 (PY 234)

Digital Wealth (DW) (Subsidiary Company)

• AUM increased by 23% to Rs 949 crore

• Number of active clients grew by 14% to 4,065

Omni Financial Advisors (“OFA”) (Subsidiary Company)

• Leader in technology product sale to 5,439 MFDs as of 30th September 2022

• Assets under Administration (AuA) of MFDs on this platform is Rs 85,932 crore as on 30th September 2022

Trading volume is more than 63 times the 30-day average. The relative strength index is at 80, suggesting the stock may be overbought.

Source: Bloomberg, Exchange Filing

Shares of Angel One jumped over 5.1%, most since Monday to Rs 1,670 apiece, highest in five months since May 5. Trading volume is 6.6 times the 30-day average.

The uptick in share prices comes after the company reported sequential growth in revenue, EBITDA and net income for the quarter-ended September, post market hours on Thursday.

Angel One Q2 FY23 (Consolidated, QoQ)

• Revenue up 7% at Rs 716.73 crore Vs Rs 669.76 crore

• EBITDA up 13% at Rs 287.85 crore Vs Rs 254.23 crore

• EBITDA margin 40.2% Vs 38%

• Net profit up 6% at Rs 213.56 crore Vs Rs 181.51 crore

• The Board of Directors have recommended dividend of ₹ 9.0/- per equity share of ₹ 10/- each, as the second interim dividend, equivalent to 35% of consolidated profit after tax, for the quarter, company said in the exchange filing.

Motilal Oswal reiterated 'buy' and kept target unchanged at Rs 2,100 (implied upside of 27.05%) after the Q2 numbers. The brokerage said that the 10% beat in net interest income led to the outperformance in the quarter. It also added that lower Opex drove significant improvement in C/I ratio and was driven by lower marketing spends, lower lead rates and decline in customer acquisition costs. Motilal Oswal believes that Angel One is a perfect play on financialisation of saving, digitisation as it termed the Q2 performance strong given the volatility in markets.

ICICI Securities reiterated 'buy' and raised target to Rs 1,980 from Rs 1,830. The brokerage said that the business traction for Angel One remained strong wih sustainability fears factored in the valuations. Client additions remained consistent in Q2 while valuations stay attractive according to ICICI Securities. The brokerage expects order per day to remain resilient in medium term due to client additions and anticipated 10% growth in orders in FY24.

Of the six analysts tracking the company, five maintain 'buy' and one recommends 'hold'. The return potential of the stock is 21.4%

Source: Exchange filing, Bloomberg, Brokerage notes

Shares of Mindtree rose over 4.3%, most in six weeks since August 30, on the NSE. Trading volume over six times the 30-day average.

The uptick is share prices comes after the company reported 7.2% QoQ growth in revenue in Q2, in constant currency terms. U.S. dollar revenue grew 5.7% QoQ, aided by broad based growth across verticals.

EBIT margin saw a modest contraction to 19.13% from 19.16% despite the impact of wage hikes during the quarter.

Mindtree Q2 FY23 (Consolidated, QoQ)

• Revenue up 8.9% at Rs 3,400.4 crore Vs Rs 3,121.1 crore

• EBIT up 8.8% at Rs 650.6 crore Vs Rs 598.2 crore

• EBIT margin 19.13% Vs 19.16%

• Net profit up 7.9% at Rs 508.7 crore Vs Rs 471.6 crore

Analysts remained bullish on the stock post the Q2 results citing strong deal booking, impressive margin performance, focus on cost optimisation, pyramid rationalisation. They also expected the announced merger with L&T Infotech to lead to revenue synergies.

Here is a gist of brokerages' view on the stock

Nomura

• Reiterates 'neutral' and raises target price to Rs 3,170 from Rs 3,000, an implied downside of 8.12%

• Q2 performance beat estimates at both revenue and margin levels.

• Revenue performance remained strong despite the weakness in retail vertical.

• Believes that deal bookings remain strong and margin performance is impressive.

• Continued focus on cost optimistion, pyramid rationalisation and sales efforts towards profitable account are key positives driving margin stability.

• Expects EBIT margin of 19.2% in FY23F

• Company says that it is in advanced stages of regulatory approvals for its announced merger with L&T Infotech and expects it to close by December 2022-end.

• Expects merger to lead to revenue synergies in the combined entity.

• Raises FY23-24 EPS by 2-5% to factor in better margin and raises target price by 5%.

• Prefers Persistent Systems in the mid-cap space.

Phillip Capital

• Reiterates 'buy' and raises target from Rs 4,350 to Rs 4,520.

• Believes that all bottom-up data points and commentary alludes to sustained strong demand environment.

• Believes that a U.S/EU/global recession will only boost the long-term growth potential of I.T firms, as it has done historically.

• Believes that Mindtree is only of the best place Tier-II I.T. services company to capture the growth opportunity and deliver strong earnings.

• Upgrades FY23/24 estimates by 2-4% on tweaking USDINR and higher margin assumptions.

• Q2 results were perfectly in-line with expectations with margins springing a positive surprises despite the impact of wage hike.

• TCV was strong and completed the loop of impressive all-round performance.

• Continues to like the Mindtree story and maintains it as the top pick in I.T. sector.

• Expects recently announced merger with L&T Infotech to provide long term upside for the stock.

Morgan Stanley

• Maintains 'Equalweight/Inline' and raises target from Rs 3,150 to Rs 3,400, an implied upside of 2.3%.

• Q2 results were strong with robust deal wins and solid margin execution but premium valuations led to maintaining equal weight and makes risk reward balanced.

• Raises revenue estimates by 2.1-3.8% and margins by 41-69bps, leading to EPS increase by 2.7-7.5% over FY23-25.

• Broad based growth across verticals except for retail segment drove revenue growth.

• EBITDA margin performance remained strong despite wage hike impact.

Of the 41 analysts tracking the company, 19 maintain 'buy', 13 suggest 'hold' and nine recommend 'sell'. The return potential of the stock is -0.8%.

Source: Bloomberg, Exchange filing, Brokerage notes

Shares of Infosys gained over 4.5%, most in over four months since May 30. Trading volume is 3.5 times the 30-day average.

The sharp uptick in share price comes after the company reported revenue growth in Q2, aided by deal wins and raise the revenue growth guidance for the fiscal at the lower end of the band.

Infosys posted 6% sequential revenue growth in Q2 while net profit rose 12%, EBIT margin expanded sequentially to 21.5% from 20% in Q1.

FY23 revenue guidance was raised to 15-16% from 14-16% projected at the end f Q1. Infosys also approved a proposal to buyback equity shares worth Rs 9,300 crore.

Analysts remained bullish on the stock citing falling attrition, pyramid optimisation and falling subcontractor costs as factors that would drive margin expansion in FY24. They also believe that the buyback announcement make the stock attractive in the near term even as they term the company a 'strong earnings growth story'.

Of the 48 analysts tracking the company, 41 maintain 'buy', five suggest 'hold' and two recommend 'sell'. The return potential of the stock is 16%.

Source: Exchange filing, Bloomberg, Brokerage notes

India's stock benchmarks advanced most in over a week since September 4, aided by gains in broad based gains across sectors led by information technology, banking.

The S&P BSE Sensex added 1,000 points (1.75%) to 58,228.04. The NSE Nifty 50 also advanced by similar magnitude to 17,289.15. All 50 constituents in the Nifty 50 index advanced with HCL Technologies, Infosys, Tech Mahindra, L&T and ICICI Bank gaining the most.

The broader indices underperfomed their larger peers with S&P BSE MidCap and S&P BSE SmallCap rising 1.1%. All 19 sectoral indices compiled by BSE Ltd. advanced with Information Technology and Bankex gauges rising the most.

The market breadth is skewed in the favour of bulls. About 2,280 stocks rose, 519 fell and 101 remained unchanged.

Indian currency appreciated 10 paise to 82.25 at the open.

Source: Bloomberg

Yield on the 10-year bond was little changed at 7.42% at the open.

Source: Bloomberg

• Bajaj Auto, Tata Elxsi, Shree Cement, Federal Bank

• U.S. Dollar Index at 112.51

• U.S. 10-year bond yield at 3.93% on Thursday

• Brent crude down 0.48% to $94.12 per barrel

• Nymex crude at $88.64 per barrel

• SGX Nifty up 1.45% to 17,203 as of 6:51 a.m.

• Bitcoin up 0.32% to $19,448.25

Infosys Q2FY23 (Consolided, QoQ)

• Revenue up 6% at Rs 36,538 crore Vs Rs 34,470 crore

• EBIT up 14% at Rs 7,873 crore Vs Rs 6,914 crore

• EBIT margin 21.5% Vs 20.06%

• Net profit up 12% at Rs 6,021 crore Vs Rs 5,360 crore

Mindtree Q2 FY23 (Consolidated, QoQ)

• Revenue up 8.9% at Rs 3,400.4 crore Vs Rs 3,121.1 crore

• EBIT up 8.8% at Rs 650.6 crore Vs Rs 598.2 crore

• EBIT margin 19.13% Vs 19.16%

• Net profit up 7.9% at Rs 508.7 crore Vs Rs 471.6 crore

Anand Rathi Wealth Q2 FY23 (Consolidated, QoQ)

• Revenue up 3% at Rs 136 crore Vs Rs 132 crore

• EBITDA up 8% at Rs 60.41 crore Vs Rs 55.69 crore

• EBITDA margin 44% Vs 42%

• Net profit up 8% at Rs 42.92 crore Vs Rs 39.7 crore

• Declared interim dividend of Rs 5 per share of face value of Rs 5 each

Den Networks Q2 FY23 (Consolidated, QoQ)

• Revenue up 1% at Rs 287 crore Vs Rs 283 crore

• EBITDA fell 8% at Rs 37.76 crore Vs Rs 40.91 crore

• EBITDA margin 13% Vs 14%

• Net profit up 3.7x at Rs 47.5 crore Vs Rs 12.82 crore

Cyient Q2 FY23 (Consolidated, QoQ)

• Revenue up 12% at Rs 1396 crore Vs Rs 1,250 crore

• EBIT down 0.35% at Rs 141.6 crore Vs Rs 142.1 crore

• EBIT margin 10.14% Vs 11.37%

• Net profit down 32% at Rs 79.1 crore Vs Rs 116.1 crore

• Declared interim dividend of Rs 10 per equity share on par value of Rs 5 each

Angel One Q2 FY23 (Consolidated, QoQ)

• Revenue up 7% at Rs 716.73 crore Vs Rs 669.76 crore

• EBITDA up 13% at Rs 287.85 crore Vs Rs 254.23 crore

• EBITDA margin 40.2% Vs 38%

• Net profit up 6% at Rs 213.56 crore Vs Rs 181.51 crore

• Infosys: The company announced a buyback programme worth Rs 9,300 crore where it will buy 5.03 crore shares at Rs 1,850 apiece, a premium of 30% over Thursday’s closing price.

• National Highways Infra Trust: The InvIT is looking to raise additional Rs 3,800 crore, out of which Rs 1,500 crore will be raised via non-convertible debentures.

• Mahanagar Telephone Nigam: Shareholders approved plans to raise Rs 17,571 crore through government-guaranteed debt bonds on private placement basis, and enhanced power of the board to borrow up to Rs 35,000 crore from banks and other financial institutions.

• Tata Steel Long Products: The company subscribed 4.69 crore shares of its subsidiary Neelachal Ispat Nigam for Rs 300 crore, taking its shareholding to 95.81% from 95.65%. NINL will use the funds for meeting its capital and capex requirements.

• Karnataka Bank: The board of the bank considered the request of Mahabaleshwara MS, managing director and CEO, not to offer himself for reappointment. He will continue in the office till the completion of his tenure on April 14, 2023. The Board decided to constitute a search and selection committee to identify and evaluate candidates for the post.

• HDFC Life Insurance Company: Insurance regulator Irdai approved the merger of Exide Life Insurance Company into HDFC Life Insurance Company.

• Power Mech Projects: The company received a letter of award worth Rs 499.41 crore from Bangalore Metro Rail Corporation.

• Inox Leisure: The company executed an agreement with Jazz Cinemas for transfer of its theatre business, Luxe Cinemas, on a going concern basis, by means of a slump sale.

• KPI Green Energy: The company received commissioning certificate from Gujarat Energy Development Agency for capacity of 6 MW solar power project for three clients—Parag Syntex, Murlidhar Texprints and Shabnam Petrofils.

• Chemcon Speciality Chemicals: The company purchased land parcels worth Rs 22.2 crore in different parts of Vadodra, Gujarat for business purposes.

• Pricol: Crisil has assigned ‘Crisil A-/Stable’ rating to long-term credit facilities of the company.

• CEAT: The has subscribed the entire paid-up capital of wholly owned subsidiary Taabi Mobility.

Asian equities advanced in the wake of a shock rebound in U.S. stocks that roared back from losses sparked by a hot inflation reading.

Benchmark indexes jumped around 2% in Japan, Australia and South Korea while futures pointed higher in Hong Kong. The S&P 500 index defied expectations to rally 2.6% after consumer price data cemented bets for the Federal Reserve to deliver another jumbo rate hike in November.

At 7:15 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 1.67% to 17,241.

Elsewhere, oil headed for a weekly loss as signs of a global economic slowdown and tighter monetary policy threaten to sap energy consumption. The International Energy Agency earlier warned production cuts agreed by OPEC+ risked causing oil prices to spike and tipping the global economy into recession.