Sensex, Nifty Log Best Day In A Week As They Snap Three-Day Losing Streak; FPIs Stay Net Sellers
Live updates from India's equity markets on Oct. 12.
Foreign Investors Net Sellers
Overseas investors stayed net sellers for the fourth day in a row on Wednesday.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 542.36 crore.
On the contrary, Domestic institutional investors stayed net buyers and bought equities worth Rs 85.32 crore.
Institutions have net bought Rs 1,758.07 crore worth of equities in October so far and net sold Rs 36,068.54 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Rises
Yield on the 10-year bond fell 6bps to 7.37% during the session. The 10-year bond yield reversed losses to close at 7.44%.
Source: Bloomberg
Rupee Closes Little Changed
Indian currency appreciate 17 paise to 82.16 against the U.S. dollar. The Rupee erased all the gains to close at 82.31.
Source: Bloomberg
Closing Bell
India's stock benchmarks snapped a three-day losing streak and logged best day in over a week, aided by gains in FMCG, Banking, Metal, Realty stocks. Information technology stocks also jumped ahead of HCLTech and Wipro earnings for the quarter-ended September.
The S&P BSE Sensex jumped nearly 500 points (0.84%) to 57,625.91. The Nifty also gained 0.82% to 17,123.60. Today 43 of Nifty 50 stocks rose while seven fell. Power Grid, Coal India, Axis Bank, Bajaj Auto and NTPC were the top gainers while Adani Enterprises, Asian Paints, Dr Reddy's, Bharti Airtel and ICICI Bank fell the most among the constituents of the 50-stock gauge.
The broader indices underperformed their larger peers with MidCap index gaining 0.66% and SmallCap gauge adding 0.2%. All the 19 sectoral measures compiled by BSE Ltd. advanced.
The market breadth was slightly skewed in the favour of bears. About 1,675 stocks rose, 1,763 fell and 133 remained unchanged
SBI Crosses Rs 6 Lakh Crore In Home Loans
SBI becomes the first Indian bank to cross the milestone.
SBI to offer 25 basis points concession on home loan rates for a limited period.
New rate of 8.4% to be applicable for loan transfer agreements as well.
SBI to also waive off processing fees on home loans till January 31, 2023.
Source: SBI statement
SOM Distilleries Jumps After Entering Into Contract Manufacturing Agreement With Radico Khaitan
Shares of SOM Distilleries and Breweries jumped nearly 4%, most in nearly a week since October 6. Trading volume is nearly twice the 30-day average. The stock is on course to snap two day losing streak.
The rise comes the company announced on Wednesday that it entered into a contract manufacturing agreement with Radico Khaitan Ltd. for manufacturing their IMFL and Ready to Drink brands at its plant in Hassan, Karnataka.
SOM Distilleries also added that the agreement would lead to improvement in utilisation levels.
Shares of Radico Khaitan also jumped over 1.5%, most in this week.
Source: Exchange filing, Bloomberg
Gokaldas Exports Jumps As Systematix Group Initiates Coverage With 'Buy'
Shares of Gokaldas Exports rose over 8.7%, most since October 6. Trading volume is almost thrice the 30-day average. Share price crossed above 200-day simple moving average, indicate potential upward price momentum.
The rise comes after Systematix Group initiated coverage on the stock with 'buy'. The target price is set a Rs 629, implied return of 73.57%. Systematix Group's target price on the stock is the most among all the six analysts tracking the company.
Gokaldas Exports has emerged as a reliable and trusted supplier of apparel to prominent global brands across all continents, according to Systematix which added that the company's growth is driven by acquisition of high value, high margin customers, average realisation of 18% CAGR over FY18-22, widening customer base, expanding footprint in U.S. and augmenting share in outerwear.
Systematix forecasts revenue, EBITDA, PAT CAGR at 21%/29%/24%, respectively over FY22-25E. The brokerage expects the firm to benefit from multiple industry tailwinds such as shift of global sourcing away from China, supply consolidation, supply-side instabilities in China, Vietnam, Sri Lanka, Pakistan, strong dollar, PLI schemes and free trade agreements with key markets.
Of the six analysts, four maintain 'buy' and two suggest 'hold'. The return potential of the stock is 49.6%.
Source: Systematix Group note, Bloomberg
Eleven Of The 12 Nifty Bank Constituents Advance
Large Trade: Tata Steel
Tata Steel has 1.13 million shares change hands in bunched trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Aarti Industries Gains As Axis Capital Upgrades Stock To 'Add' To Account For Recent Price Correction
Shares of Aarti Industries jumped over 3.3%, most in over a week since October 4 during the session. Trading volume is nearly twice the 30-day average.
The rise comes after Axis Capital upgraded the stock to 'add' from 'reduce' on Tuesday. The target price on the stock is Rs 810, an implied upside of 6.13%.
KR Choksey Shares & Securities reiterated 'buy' on the stock today. The brokerage has a target of Rs 1,094 (implied return of 42.44%).
Axis Capital said that the company's near-term growth concerns remain due to inadequate Nitric Acid availability due to Europe's gas supply issues, but upgraded the stock to account for price correction, down 13% since the brokerage's last report on the stock on September 22.
Axis Capital said that a fully backward integrated plant is the only permanent solution to the supply chain woes of Aarti Industries.
The company has already announced setting up a concentration plant to resolve the shortage with a capex of Rs 200 crore where it will import weak Nitric Acid from China and concentrate it for usage. The plant will however come on stream only in H2FY24 making the company dependent on outside sourcing for next 15-18 months.
Of the 27 analysts tracking the company, 16 maintain 'buy', four suggest 'hold' and seven recommend 'sell'. The return potential of the stock is 21.9%. The stock has underperformed the benchmarks losing over 23% in 2022 so far compared to 0.1% losses for Sensex.
Source: Axis Capital note, Bloomberg
Cacophony Of Factors May Shake India's Sovereign Credit Metrics: S&P Global Ratings
India is facing a cacophony of factors that may shake its sovereign credit metrics, says S&P Global Ratings
Expect India's strong economic growth and sound external balance sheet to provide a solid buffer against global market turbulence.
However, under more severe conditions, a few factors could have the potential to apply downward pressure on our sovereign credit ratings on India.
Source: S&P Global Ratings
All Constituents Of Nifty FMCG Index Advance
Adda247 Raises $35 Million Led By Google, Others
Government exams prep platform Adda247 has closed a $35 million (Rs 288 crore) round led by InfoEdge, Google and Westbridge Capital.
The company will invest in enhancing its tech and product profile, expanding its student counselling team and hiring for leadership roles.
Source: Company statement
European Markets Decline
European markets open lower, banking stocks decline. Focus shifts to U.S. inflation data scheduled to be released tomorrow.
Source: Bloomberg
10-Year Bond Yield Falls
Yield on the 10-year fell 6bps to 7.37%, during the session.
10-year bond yield trimmed some of the losses to 7.40%
Source: Bloomberg
Tracxn Tech IPO Fully Subscribed On The Final Day
Tracxn Technologies IPO was fully subscribed as of 01:09 p.m. on day 3.
Bidding was led by retail investors (3.5x)
The offer closes today.
Source: BSE
Rupee Little Changed Against U.S. Dollar
Indian currency was largely unchanged at 82.32 during the session.
Source: Bloomberg
Midday Market Update: Sensex Adds 300 Points, Nifty Gains 0.5%; Bajaj Auto Rises 3%
India's stock benchmarks advance, aided by gains in FMCG, information technology, auto, banking stocks, amid rise in global equities.
The Sensex advanced 0.54% (over 300 points) to 57,453.99. The Nifty 50 gained 0.52% to 17,071.05. Today 39 of Nifty 50 stocks rose while 11 fell .
Bajaj Auto, Coal India, Power Grid Corporation, HCL Technologies and Axis Bank were the top gainers on Nifty 50.
Adani Enterprises, Asian Paints, ICICI Bank, Dr Reddy’s Laboratories and Cipla were the top losers
The broader indices underperformed their larger peers with MidCap gauge gaining 0.16% and SmallCap measure losing 0.2%.
Twelve of 19 the sectoral measures complied of BSE advanced with FMCG index rising over 1%.
The market breadth is skewed in the favour of bears. About 1,450 stocks rose, 1,878 fell and 141 remained unchanged.
Sonata Software Gains On Deal With Irish Telecom Firm eir evo
Shares of Sonata Software rose over 1.8%, most in this week. The company informed exchanges on Wednesday that it signed a deal with eir evo, Ireland's leading telecommunications and ICT solutions provider, to support the standardisation of their CRM platform. Sonata Software will assist eir evo to migrate from Salesfore to Microsoft Dynamics.
Microsoft Dynamics is a product line of enterprise resource planning and customer relationship management application. Salesforce is an cloud-based software providing customer relationship management solutions.
Sonata and eir evo also plan to implement a long-term strategy for growing Microsoft Dynamics within the Irish market. The optimisation will focus on supporting productivity and customer centric efficiencies.
The company will report its Q2 earnings on October 18. Sonata Software beat EPS estimates six times in the past eight quarter.
Of the six analysts tracking the company, three suggest 'buy', three recommend 'sell'. The return potential of the stock is 19.9%.
Source: Exchange filing, Bloomberg
Sugar Stocks Advance
Shares of Sugar companies jumped after government announced extension of raw sugar export validity to U.S. from 30.09.2022 to 31.12.2022.
Source: Director General of Foreign Trade, Bloomberg
Banking Stocks Gain
L&T Finance Holdings Jumps Most In A Week
Shares of L&T Finance Holdings rose over 3.1%, most in over a week. Trading volume is 1.3 times the 30-day average.
The rise comes after company receives approval from SEBI to sell 100% of the paid-up share capital of L&T Investment Management Limited, a wholly owned subsidiary of the Company and the asset manager of L&T Mutual Fund to HSBC Asset Management (India) Private Limited
All necessary actions are being taken to ensure completion of the Proposed Transaction in light of the letter received from SEBI, company said in the exchange filings.
Of the 12 analysts tracking the company, 10 maintain 'buy', one suggests 'hold' and one recommends 'sell'. The return potential of the stock is 17.6%.
Source: Exchange filing, Bloomberg
M&M Gains Most In Three Weeks
Shares of Mahindra & Mahindra rose nearly 2.5%, most in over three weeks since September 19.
The rise comes after Jio-bp, the fuel retailing joint venture between Reliance Industries and bp, announced extension of its partnership with Mahindra & Mahindra to set up charging infrastructure for the upcoming electric launches of Indian SUV maker.
Of the 48 analysts tracking the company, 42 maintain 'buy', four suggest 'hold' and two recommend 'sell'. The return potential is 14.3%.
Source: Bloomberg
Tracxn Technologies IPO Subscription: Day 3 Live Updates
Retail investors led bidding for shares of Tracxn Technologies Ltd., a Ratan Tata-backed company, on the second day of its Rs 309-crore initial public offering.
The IPO by the market intelligence provider for private company is an offer for sale with a price band of Rs 75-80 apiece. It was subscribed 23% on the first day.
Flipkart promoters, which were early-stage investors in the company, will be exiting via the offer for sale. Tata will continue to remain invested in the company.
The IPO was subscribed 64% as of 11:00 a.m. on Oct. 12
Institutional investors: 00 times.
Non-institutional investors: 0.30 times.
Retail investors: 3.05 times.
Source: NSE
Infosys May Announce Share Buyback Worth Rs 8,400 Crore-Rs 11,600 Crore On October 13, Says Morgan Stanley
Delta Corp Shares Volatile After Q2 Results
Shares of Delta Corp rose nearly 3% in the opening minutes of the trading session before reversing gains. The company reported sequential growth in consolidated revenue, EBITDA and net profit for the quarter-ended September post market hours on Tuesday. EBITDA margin expanded on a sequential basis, as well.
Q2FY23 (Consolidated, QoQ)
Revenue up 8% at Rs 270 crore Vs Rs 250 crore
EBITDA up 15% at Rs 100.34 crore Vs Rs 87.5 crore
EBITDA margin 37% Vs 35%
Net profit up 19% at Rs 68.25 crore Vs Rs 57.13 crore
Trading volume on the stock is nearly quadruple the 30-day average.
Source: Exchange filing, Bloomberg
NMDC Gains Most in A Week
Shares of NMDC rose nearly 3%, most in over a week since September 4. Trading volume is 1.6 times the 30-day average.
The rise comes after the company announced post market hours on Tuesday hat it received Ministry of Corporate Affairs order approving scheme of arrangement for merger of NMDC into NMDC Steel and their respective shareholders and creditors.
Of the 23 analysts tracking the company, 14 maintain 'buy', five suggest 'hold' and four recommend 'sell'. The return potential of the stock is 5.6%.
Source: Exchange filing, Bloomberg
Power Grid Gains Most In Over A Week
Shares of Power Grid rose over 3%, most in over a week since September 30. Trading volume is nearly twice the 30-day average.
The rise comes after the company announced post market hours on Tuesday that it acquired ER NER Transmission Ltd., a project SPV to establish inter-state transmission system for system strengthening scheme for eastern and north eastern regions, on build, own, operate and transfer (BOOT) basis from REC Power Development and Consultancy, the bid process coordinator.
The inter state transmission system comprises of upgradation works at 400/132kV Banka with implementation schedule of 24 months. The system will also establish 220kV D/C transmission lines passing through Assam and Arunachal Pradesh.
The acquisition comes after Power Grid emerged as the successful bidder under tariff based competitive bidding. The acquisition cost is about Rs 7.04 crore, including 50,000 equity shares at par at Rs 10 each. Power Grid added that the acquisition price is subject to adjustment.
Of the 25 analysts tracking the company, 19 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The return potential of the stock is 11.1%.
Source: Exchange filing, Bloomberg
Suzlon Energy Gains Most In A Week
Shares of Suzlon Energy gained over 4.2%, most in over a week since September 4. The stock fell over 7% on Tuesday.
Trading volume 0.8 times the 30-day average.
Suzlon Energy announced post market hours on Tuesday that it secured orders for the development of 144.9 MW wind power projects from the Aditya Birla group. Suzlon Energy will install 69 units of wind turbine generators with a Hybrid Lattice Tubular tower. The project is located at sites in Gujarat and Madhya Pradesh and is expected to be commissioned in 2023.
Source: Exchange filing, Bloomberg
Nine Of The 10 Constituents Of Nifty IT Index Advance
Marksans Pharma Surges Most In Over Three Months
Shares of Marksans Pharma jumped over 17%, most in over three months since July 5. Trading volume is 28 times the 30-day average.
Share price crossed above 50-day and 200-day simple moving averages, indicating potential upward price momentum.
The company announced on Tuesday that it entered into a business transfer agreement with Tevapharm India, to acquire its business relating to the manufacture and supply of bulk pharmaceutical formulations in Goa, as a going concern on a slump sale basis.
Marksans Pharma has agreed to retain the site employees with existing terms of employment. The transaction is expected to be completed by April 1, 2023. Teva's affiliate firm Watson Pharma will continue to operate its other manufacturing site in Goa. Marksans Pharma will supply certain products to Teva's affiliates until the end of FY23, as part of the agreement.
Through the acquisition, Marksans Pharma intends to double its existing Indian capacity from 8 billion units per annum. The firm plans to make tablets, hard and soft gel capsules, ointments, gummies, creams from the new capacity. The Goa capacity will be the fourth manufacturing site for Marksans after Southport (UK), Farmingdale (US) and Goa (India).
Source: Exchange filing, Bloomberg
Opening Bell: Sensex, Nifty Open Higher; I.T. Stocks Advance
India's stock benchmarks opened higher, aided by gains in information technology, power stocks, amid rise in global equities.
The S&P BSE Sensex rose over 100 points (0.2%) to 57,248.48. The NSE Nifty 50 advanced 0.25% to 17,026.65. Today 42 of Nifty 50 stocks rose while eight fell. HCLTech, Bajaj Finserv, Power Grid, Asian Paints and BPCL were the top gainers.
The broader indices almost mirrored their larger peers. Thirteen of the 19 sectoral gauges compiled by BSE Ltd. advanced.
The market breadth is skewed in the favour of bulls. About 1,498 stocks rose, 839 fell and 103 remained unchanged.
10-Year Bond Yield Falls
Yield on the 10-year bond fell 4bps to 7.39%.
Source: Bloomberg
Rupee Little Changed Against U.S. Dollar
Indian currency fell 2 paise to 82.34 at the open.
Source: Bloomberg
Key Earnings Estimates
Trade Setup For Wednesday
Global Cues
U.S. Dollar Index at 113.33
U.S. 10-year bond yield at 3.93% on Tuesday
Brent crude down 0.51% to $93.81 per barrel
Nymex crude at $88.69 per barrel
SGX Nifty up 0.04% to 16,946 as of 6:23 a.m.
Bitcoin up 0.43% to $19,101.1
Stocks To Watch
AstraZeneca Pharma India: The nasal Covid-19 vaccine by the company’s parent, AstraZeneca Plc, failed to elicit a strong immune response in an early test, reported Bloomberg.
Reliance Industries/Mahindra & Mahindra: Jio-BP, the fuel retailing JV between Reliance Industries and BP, will extend its partnership with Mahindra & Mahindra to set up charging infrastructure for the upcoming electric launches of the Indian SUV maker.
Infosys: Ravi Kumar S., has stepped down from the office of President of Infosys, with effect from Oct. 11, 2022.
Tata Consultancy Services: The company enhanced its Quartz solution, which can be used by central and commercial banks to support the entire lifecycle of CBDCs, including issuance, book-keeping and transactions.
Shipping Corporation Of India: In separate meetings, unsecured and secured creditors, and equity shareholders of the company approved demerger of non-core assets of the company Shipping Corporation of India Land And Assets Ltd.
Indian Railway Finance Corporation: The company has signed a MoU with India Infrastructure Finance Company to strengthen cooperation in financing railway infrastructure projects with forward and backward linkages to Indian railways sector.
L&T Finance Holdings: SEBI approved the sale of L&T Investment Management Ltd., a wholly owned subsidiary and asset manager of L&T Mutual Fund, to HSBC Asset Management (India) Pvt. Ltd., subject to compliance with certain conditions.
Suzlon Energy: The company has secured an order from Aditya Birla Group to supply 69 units of wind turbine generators with a total installed capacity of 144.9 MW in Gujarat and Madhya Pradesh by 2023.
Adani Green Energy: Adani Renewable Energy Holding Four Ltd., wholly owned subsidiary of the company, has incorporated two new subsidiaries—Adani Renewable Energy Forty Four Ltd. and Adani Renewable Energy Forty Eight Ltd. The step down subsidiaries will operate in the field of renewable energy.
Genesys International Corporation: The company received an order worth Rs 46 crore from Andhra Pradesh government for land titling project.
DB Realty: The company has acquired entire equity shares of DB Man Realty, a subsidiary in which the company and its nominees already held 91% stake, making it a wholly owned subsidiary. The company also acquired entire equity shares of its another subsidiary, Spacecon Realty.
Fino Payments Bank: The board of PaySprint has approved allotment of 867 equity shares of face value of Rs 10 each to the bank at a premium of Rs 28,801 apiece, aggregating to Rs 2.5 crore, representing 7.98% of the former’s paid up share capital in accordance with a share subscription and shareholders’ agreement signed earlier this year.
NMDC: The Ministry of Corporate Affairs approved the merger of NMDC into NMDC Steel and their respective shareholders and creditors.
Spandana Sphoorty Financial: The board of the company will meet on Oct. 14 to consider and approve fundraising through the issue of NCDs on a private placement basis.
Gujarat Pipavav Port: Quarterly Updates QoQ
Container volume declined 0.53% during quarter ended Sept. 30, 2022.
Dry bulk volume increased 39.78% at 1.30 million metric tonnes.
Liquid cargo volume increased 5% to 0.21 million metric tonnes.
Earnings Post Market Hours
Delta Corp. Q2 FY23 (Consolidated, QoQ)
Revenue up 8% at Rs 270 crore Vs Rs 250 crore
EBITDA up 15% at Rs 100.34 crore Vs Rs 87.5 crore
EBITDA margin 37% Vs 35%
Net profit up 19% at Rs 68.25 crore Vs Rs 57.13 crore
Sensex, Nifty Set To Rise; RIL, M&M, Infosys, TCS, SAIL, Wipro, HCLTech In Focus
Shares swung slightly higher in Japan and Australia while South Korea’s benchmark index fell after the central bank pivoted back to outsized interest-rate increases. U.S. futures edged up after the S&P 500 fell for the fifth consecutive session and the Nasdaq 100 tumbled more than 1% to set a fresh two-year low.
At 7:20 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- rose 0.29% to 16,983.50.
Rising rates in the U.S. and the Bank of Japan’s ultra-loose stance are pushing the yen to levels that are causing alarm in Tokyo. The divergence is in focus this week with U.S. consumer price data due Thursday that may determine if the Fed increases rates by 75 basis points in a fourth consecutive move in November.
Oil dropped for a third day on escalating concerns that a global slowdown will hurt energy demand amid a broad shift away from risk assets.
Source: Bloomberg