KEY HIGHLIGHTS
Closing Bell: A Day Of Gains
Indian equity markets began the new trading week on a positive note, notching up their second straight day of gains, aided by positive sentiment in the global markets.
The S&P BSE Sensex ended 1.1% higher at 40,431 while the NSE Nifty 50 index ended 0.9% higher at 11,873.
Banking stocks were the top performers in today's session. The Nifty Bank ended 3.1% higher while the PSU Bank index was the top sectoral gainer, ending 4.2% higher.
The Nifty Metal and Nifty Realty index gained 1.6% each while the Nifty FMCG index gained 1.3%.
Among the laggards today were Pharma, Media and Auto Stocks. The Nifty Pharma and Nifty Media index fell 1.6% each while the Nifty Auto index was down 1.1%.
Broader markets had a volatile day but managed to close with gains. The Nifty Midcap index gained 0.8% while the Smallcap index was up 0.7%.
India Volatility Index ended off the day's high, up 0.8% at 21.82.
1,070 stocks on the NSE ended with gains while 740 stocks were declining.
How Did The Sectoral Indices Fare
Earnings Reaction: Rallis India Q2FY21
- Revenue down 3% to Rs 725 crore
- Net profit up 10% to Rs 93 crore
- Ebitda down 2% to Rs 116.7 crore
- Ebitda margin at 16.1% from 15.9%
- Exceptional gain of Rs 1.65 crore this quarter on profit on sale of flats
- Numbers are consolidated and compared on a year-on-year basis
Shares ended off the day's high, down 0.5% at Rs 271.
Buzzing Stock: CEAT
- Among top gainers on the Nifty Smallcap index
- Gains as much as 5.7% to Rs 1,048
- Biggest single-day gain in nearly two months
- Trading at the highest level in eight months
- Up for the second straight day
- Has gained in four out of the last six trading sessions
- Today's volumes are 14% below its 20-day average
- One-month implied volatility at 50%
- Relative Strength Index (RSI) of the stock near overbought terrotiry at 66
- Trading 5% below its 52-week high of Rs 1,101 on February 12, 2020
- 13 out of the 23 analysts tracking the stock have a buy recommendation; 5 sell calls
- The stock trades 6.5% higher than its 12-month consensus price target of Rs 970, implying a negative return potential
Earnings Reaction: Century Textiles & Industries
- Revenue down 31% to Rs 611.1 crore
- Net profit of Rs 36 lakh from Rs 201.5 crore
- Ebitda down 61% to Rs 68.2 crore
- Ebitda margin at 11.2% from 19.8%
- Deferred tax gain of Rs 100.2 crore in the base quarter
- Higher finance costs impact margins
- Textile segment revenue down 28.4% to Rs 141 crore
- Pulp and Paper segment revenue down 32% to Rs 419.2 crore
- Real Estate Segment revenue flat at Rs 35.57 crore
- Pulp and Paper business sales volumes at 80,340 MT
- Demand continues to be low in all three segments
- Inventory worth Rs 96 crore sold during the quarter for real estate business
- Performance of textile business coming back to near-normal levels
Management Commentary:
- Pulp & Paper division capacity utilisation at 73%
- Real estate business saw strong traction in sales and collections across all projects
- Textile division capacity utilisation at 74%
- Upcoming festive period presents an opportunity with a likely uptick in demand from the retail sector
- Gradual relaxation of lockdown to positively impact paper and pulp business
Shares fell as much as 3% to Rs 312, post the announcement before recovering. The stock currently trades 1% lower at Rs 318.5.
PSU Bank Index Extends Gains
Earnings Reaction: CSB Bank Q2FY21
- Net Interest Income up 49% to Rs 219.3 crore
- Net profit nearly triples to Rs 68.9 crore
- Gross NPA at 3.04% from 3.51% last quarter
- Net NPA at 1.3% from 1.74% last quarter
- Provisions up 40% from the previous quarter to Rs 80.7 crore
- Capital Adequacy Ratio at 19.69%
- Additioal provision of Rs 15.55 crore for Covid-19
- Total Covid-19 related provisions now at Rs 59.76 crore
- Have not downgraded certain accounts as NPAs based on the Supreme Court verdict. On downgrade of those accounts, Gross and Net NPA would be 3.11% and 1.36% respectively
- Net profit and Net Interest Income compared on a year-on-year basis
Shares gained as much as 8.2% to Rs 249.8, post the announcement before cooling off. The stock currently trades 3.2% higher at Rs 238.3, the highest since December 2019.
Active Stock Options
- Reliance Industries' 2,300 Call: Premium down 16.5% to Rs 23. The contract has shed 46,000 shares in Open Interest.
- HDFC Bank's 1,220 Call: Premium down 14% to Rs 19.9. The contract has added 9.3 lakh shares in Open Interest.
- ICICI Bank's 410 Call: Premium up 146% to Rs 15.5. The contract has shed 6.6 lakh shares in Open Interest.
Stock Update: JK Cement
The company has informed the exchanges that it has successfully implemented additional capacity of 3 lakh tonnes per annum of White Cement based Wall Putty.
The installation of the additional capacity has been done at the JK White Village in Madhya Pradesh. Commercial dispatches have also commenced, starting today, the company said.
The installed capacity of JK White in the said unit stands at 7 lakh tonnes per annum. Overall white cement-based Wall Putty manufacturing capacity at 12 lakh tonnes per annum.
Shares gained as much as 3.9% to trade at an all-time high of Rs 1,823.65, post the announcement.
Earnings Reaction: Hatsun Agro Q2FY21
- Revenue up 4% to Rs 1,327 crore
- Net profit more than doubles to Rs 65.8 crore
- Ebitda up 43% to Rs 193.5 crore
- Ebitda margin at 14.6% from 10.6%
- Board approves issue of bonus shares
- To issue one equity share of face of Re 1 for every three held in the company
- Record date for bonus issue of shares fixed at December 3, 2020
- It has also approved raising of funds through private placement of equity shares through a QIP
- All numbers are compared on a year-on-year basis
Shares are fluctuating between gains and losses, currently trading 0.8% higher at Rs 848, post the announcement.
Markets At 2:10 P.M.
- Benchmark indices set to gain for second straight day
- Nifty up 0.9% at 11,873
- Sensex up 1% at 40,431
- Nifty Bank up 3% at 24,238
- Nifty Midcap index up 0.4%
- Nifty Smallcap index up 0.7%
- India Volatility Index up 1.7% to 22
- Nifty Media is the top sectoral laggard; down 1.6%
- Nifty Pharma, Nifty Auto index down 1.4% and 1.3% respectively
- Nifty PSU Bank index is the top sectoral gainer; up 3.8%
- Nifty Metal is the other major sectoral gainer; up 1.8%
- Nifty Realty and Nifty FMCG index up over 1% each
- ICICI Bank is the top Nifty gainer; up 5%
- Eicher Motors remains the top Nifty laggard; down 3.4%
- 1,062 stocks on the NSE trade with gains while 728 are declining
Money Market Update
The currency ended little changed in today's session after trading in a very narrow range through the session.
The rupee ended at 73.37 against the U.S. Dollar as compared to Friday's close of 73.34. It made an intraday low of 73.42 and a high of 73.35 during the day.
The rupee was the third worst performing currency in Asia for today's session.
The Reserve Bank of India has converted Rs 24,500 crore 2021 bonds into notes maturing in 2031 at a rate of 6.2146%. It has converted notes worth Rs 5,000 crore maturing in 2021 into FRB 2033 at 5.0842%.
Earnings Reaction: Bank Of Maharashtra Q2FY21
- Net Interest Income down 12% to Rs 940.4 crore
- Net profit up 14% to Rs 130 crore
- Gross NPA at 8.81% from 10.93% last quarter
- Net NPA at 3.3% from 4.1% last quarter
- Provisions down 31% from the previous quarter to Rs 420.9 crore
- Capital Adequacy Ratio at 13.18% and CET-1 ratio at 10.31%
- Additional Covid-19 provisions worth Rs 500 crore this quarter
- Overall Covid-19 provisions so far at Rs 925 crore
- Amounts in SMA/overdue categories where moratorium / asset classification benefit was extended as on March 31, 2020 at Rs 749.35 crore
- Net profit and Net Interest Income compared on a year-on-year basis
Shares gained as much as 13% to Rs 12.6, post the announcement. The stock is trading at the highest level in a month.
Buzzing Stock: Aditya Birla Fashion & Retail
- Among top gainers on the Nifty Midcap index
- Gains as much as 5.2% to Rs 144.5
- Biggest single-day gain in over a month
- Trading at the highest level in over a month
- Up for the second straight day
- Has gained in four out of the last five trading sessions
- Today's volumes are more than triple its 20-day average
- Sustains after breaking out from its 50-Day Moving Average at 134.5 on Friday
- Relative Strength Index (RSI) of the stock at 65.7
- Trading over 50% below its 52-week high of Rs 281.4 on February 24, 2020
- 20 out of the 23 analysts tracking the stock have a buy recommendation; 1 sell call
- Return potential of the stock as per Bloomberg data is 11%
F&O Snapshot: Active Options Contracts
- Nifty October futures add 3.2% and 3.35 lakh shares in Open Interest
- Nifty Bank October futures add 24.2% and 3.6 lakh shares in Open Interest
Nifty: October 22 Expiry
- 11,900 Call: Premium up 33% to Rs 68.4. The contract has added 10.1 lakh shares in Open Interest.
- 12,000 Call: Premium up 22% to Rs 32.5. The contract has added 3.5 lakh shares in Open Interest.
- 11,800 Put: Premium down 49% to Rs 64.1. The contract has added 64.1 lakh shares in Open Interest.
Nifty Bank: October 22 Expiry
- 24,500 Call: Premium up 140.3% to Rs 216.2. The contract has added 5 lakh shares in Open Interest.
- 24,000 Call: Premium up 115.4% to Rs 458.1. The contract has added 84,925 shares in Open Interest.
- 23,500 Put: Premium down 63.3% to Rs 138.3. The contract has added 5 lakh shares in Open Interest.
Stock Reaction: JSW Steel
The company has informed the exchanges that the resolution plan submitted by its wholly-owned subsidiary - JSW Steel Coated Products with regards to the corporate insolvency process of Asian Colour Coated Ispat has been approved by the National Company Law Tribunal, New Delhi.
The resolution plan has been approved with certain modifications and that the written order of the NCLT is awaited, the company said.
Shares gained as much as 2% to Rs 317.2, post the announcement. The stock is up for the fifth straight day and is trading at the highest level in nearly two years.
European Markets Open Higher
Benchmark indices in Europe have begun the new trading week on a positive note, in-line with global peers.
The Stoxx 600 index has opened 0.8% higher with Banking and Insurance stocks leading the gains. Healthcare and energy stocks are underperforming.
Most Asian markets have ended with gains. The Nikkei 225 index erased its losses for 2020 during the course of the day. Futures on the Dow Jones are trading higher by 240 points.
Brent crude is trading 0.3% higher at $43 per barrel while Gold is trading 0.6% higher at $1,909/Oz.
Let's take at how the European markets are trading:
- Euro Stoxx 50 up 0.9% at 3,276
- DAX up 0.8% at 13,014
- CAC up 0.9% at 4,981
- FTSE 100 up 0.4% at 5,943
- IBEX 35 up 0.9% at 6,909
How Are The Sectoral Indices Faring
Buzzing Stock: Bank of Baroda
- Among top gainers on the PSU Bank and Nifty 500 index
- Gains as much as 6.8% to Rs 43
- Biggest single-day gain in four months
- Snaps two-day losing streak
- Today's volumes are 30% higher than its 20-day average
- One-month implied volatility is 46%
- Heading towards its 50-Day Moving Average resistance at 45 on the upside
- Relative Strength Index (RSI) of the stock at 50
- Trading 60% below its 52-week high of Rs 108.25 on November 29, 2019
- 15 out of the 37 analysts tracking the stock have a buy recommendation; 8 sell calls
- Return potential of the stock as per Bloomberg data is 33.2%
Stock Reaction: Edelweiss
Edelweiss Alternative Asset Advisors, part of Edelweiss Asset Management announced the closure of its Rs 6,600 Alternative Investment Fund - ESOF III.
This is the largest fund raise in the year in the Indian private credit space, the company mentioned in its exchange filing.
The third in the Special Opportunities Series, ESOF III was launched with an investment mandate centered around the performing credit space with a focus on providing structured credit to Indian companies.
"This presents a huge opportunity for private debt players and it’s reassuring to note that the present market environment has not deterred investors who are keen to participate in India’s long-term growth story," Rashesh Shah, Chairman & CEO of the Edelweiss Group was quoted as saying.
Shares are currently trading 0.5% lower at Rs 56.7.
Two Wheelers Lead Losses On The Auto Index
Markets At Noon
- Benchmark indices off the day's high
- Nifty up 0.56% at 11,828
- Sensex up 0.7% at 40,259
- Nifty Bank up 1.9% at 23,979
- Nifty Midcap index unchanged
- Nifty Smallcap index up 0.6%
- India Volatility Index up 2.5% to 22.2
- Nifty Auto is the top sectoral laggard; down 1.1%
- Nifty Media and Nifty Pharma decline 1% each
- Nifty PSU Bank is the top sectoral gainer; up 2.4%
- Nifty Metal and Nifty FMCG index gain 0.8% each
- HCL Technologies is the top Nifty gainer; up 4%
- Eicher Motors is the top Nifty laggard; down 3.1%
- 1,048 stocks on the NSE are trading with gains while 708 decline
Stock Reaction: Steel Strips Wheels
The company informed the exchanges that it has received an export order of nearly 5,500 wheels for the U.S. truck trailer market.
The order is worth $2,38,000, the company said in its exchange filing. The order will be executed from the company's Chennai plant during the month of November.
The company is anticipating further orders of similar capacity going forward.
Shares gained as much as 4.5% to Rs 482.2 and are up for the second straight day.
Earnings Reaction: IIFL Securities
- Revenue up 16% to Rs 201.9 crore
- Net profit up 2.1 times to Rs 50.9 crore
- Ebitda up 12% to Rs 78.7 crore
- Ebitda margin at 39% from 40.4%
- Financial Products Distribution AUM at Rs 10,200 crore
- DP Assets AUM at Rs 22,900 crore
- Acquired 1.1 lakh new customers during the quarter
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 16.5% - the most in four months to Rs 43.70 - the highest level in over a month. The stock is up for the second straight day.
Stock Reaction: Mold-Tek Packaging
The company's board declared details of the rights issue which was announced in September. The company will issue one rights share along with six detachable warrants.
The price of the rights share has been set at Rs 180 per share, which is a 33.5% discount to Friday's closing price.
The price of the warrant has been set at Rs 184 per warrants. One rights share and six detachable warrants will be issued for every 50 fully paid-up equity shared held in the company.
The company will raise Rs 71.3 crore through the rights issue which will open on October 28 and close on November 11. The record date for the same has been set at October 22.
Shares gained as much as 3.1% to Rs 279.8 and are up for the second straight day.
Buzzing Stock: Jindal Stainless
- Top gainer on the Nifty 500 index
- Gains as much as 9.3% to Rs 61.9
- Trading at the highest level in over two years
- Up for the second straight day
- Has gained in five out of the last six trading sessions
- Up 41.5% in the last six trading sessions
- Today's volumes are more than triple its 20-day average
- Trading above all of its key Daily Moving Averages
- Stock in overbought territory with Relative Strength Index (RSI) at 79
- Has nearly tripled from its 52-week low of Rs 22.3 on March 24, 2020
- Three out of the four analyats tracking the stock have a buy recommendation; 0 sell calls
- The stock trades 12.6% higher than its 12-month consensus price target of Rs 52.5, implying a negative return potential
Earnings Reaction: Bajaj Consumer Care
- Revenue up 3% to Rs 226.9 crore
- Net profit up 1.6% to Rs 56.9 crore
- Ebitda up 2.3% to Rs 62.4 crore
- Ebitda margin at 27.5% from 27.7%
- Overall sales growth during the quarter at 5%
- Total domestic sales up 4.6% to Rs 214.9 crore
- International business sales up 19.2% to Rs 6.9 crore
- Rural markets demand recovering at a healthy pace
- Urban markets continue to be under stress; demand still below last year levels
- E-commerce business doing consistently well
- Overall hair oil offtake recovered as the lockdown eased
- All numbers are consolidated and compared on a year-on-year basis
Shares gained as much as 8.1% - the most in a month to Rs 199 - the highest level in eight months. The stock is up for the third straight day.
All Stocks On The Nifty Bank Gain
H1FY21 Operational Highlights: Adani Green Energy
- Added capacity worth 255 MW; total operational capacity now at 2,800 MW
- Net export of energy up 25% year-on-year to 2,540 million units
- Solar Portfolio Capacity Utilisation Factor (CUF) better than P75 target of 22.5% with strong plant availability of ~100%
- Wind portfolio CUF improves to 34.6% from 33.2% last year; plant availability of 85%
- Net export of energy in Solar portfolio up 14% led by capacity increase and continued high plant availability.
- Net export of energy in Wind portfolio up 233% year-on-year owing to capacity rising to 247 MW from 72 MW.
- Restricted Group 1 CUF at 23.3% while Restricted Group 2 achieved record CUF of 26.4%.
Shares gained as much as 1.8% to Rs 717.9 and are up for the second straight day.
Large Trade Alert: Happiest Minds Technologies
A block of 2.5 lakh shares, equivalent to 0.5% of the total float exchanged hands in a large deal, according to data from Bloomberg.
The deal took place at Rs 325.5 per share, a discount of 1.9% from today's opening levels. The overall transaction was d at Rs 8.14 crore.
The number of shares traded represent 5.7% of the 20-day average volume of the stock. The Bloomberg model estimates that the volumes on the stock will reach 23.5 lakh shares by the close of trade.
Shares are currently trading little changed after gaining as much as 2% to Rs 331.85 in early trade.
Brokerage Reaction: Federal Bank
Shares of the private lender are surging in today's trade after various brokerages upgraded the stock post its second quarter performance.
The lender reported a 23% growth in its Net Interest Income during market-hours on Friday. Asset quality improved with Gross NPA at 2.84% from 2.96% last quarter while Net NPA stood at 0.99% from 1.22% last quarter.
Brokerage Reaction:
- Nirmal Bang: Upgrade to buy from accumulate. Price target raised to Rs 63 from Rs 54.
- B&K Securities: Upgrade to buy from hold. Price target raised to Rs 70 from Rs 60.
- Investec: Buy rating maintained along with its price target of Rs 80.
- Edelweiss Capital: Buy rating maintained with a price target of Rs 65
- Prabhudas Lilladher: Buy rating maintained; price target raised to Rs 69 from Rs 67
- Emkay: Buy rating maintained; Price target raised to Rs 67 from Rs 58.
Shares gained as much as 6.6% to Rs 55.65 - the highest level in over a month. The stock is up for the second straight day. The stock is the top gainer on the Nifty Bank index.
Earnings Reaction: Avenue Supermarts
- Revenue down 11% to Rs 5,306 crore
- Net profit down 38% to Rs 199 crore
- Ebitda down 36.5% to Rs 329 crore
- Ebitda margin at 6.2% from 8.6%
- All numbers compared on a year-on-year basis
Management Commentary:
- Business continues to gradually progress towards pre-Covid levels.
- Month-on-Month sales have improved during the quarter
- Footfalls continue to be significantly lower than pre-Covid levels but basket s are significantly higher than pre-Covid levels.
- Two years and older stores did sales worth 87.5% of September 2019 sales
- Demand for FMCG and staples remains robust.
- Contribution from general merchandise and apparel business at 22.7% this quarter.
- Opened six new stores during the quarter.
Brokerages like IDBI Capital and Prabhudas Lilladher have upgraded the stock to buy and raised price targets to Rs 2,471 and Rs 2,316 respectively.
Shares gained as much as 3.6% to Rs 2,055 and are up for the third straight day.
Markets At 10:10 A.M.
- Benchmark indices gain for the second straight day
- Nifty up 1% at 11,881
- Sensex up 1.2% at 40,461
- Nifty Bank up 2.7% at 24,175
- Nifty Midcap index up 0.2%
- Nifty Smallcap index up 0.5%
- India Volatility Index 2.2% to 22.12
- Nifty PSU Bank index is among the top sectoral gainers; up 1.9%
- Nifty Realty and Nifty FMCG index up 0.7% each
- Nifty Media is the top sectoral laggard; down 0.9%
- Nifty Pharma and Nifty I.T. index down 0.6% each
- ONGC is the top Nifty gainer; up 3.9%
- UPL is the top Nifty laggard; down 1.9%
- 1,121 stocks on the NSE are trading with gains while 550 are declining
Money Market Update
The rupee has begun the new trading week with modest losses after ending as the second worst performer in Asia last week.
The currency opened at 73.38 against the U.S. Dollar as compared to Friday's close of 73.34.
Barclays in a note mentions that the rupee may gain further but some near-term weakness is possible if the U.S. Dollar strengthens.
Bond market traders will look forward to the government's plan to convert bonds worth Rs 20,000 crore into longer-dated securities. The government plans to switch bonds maturing in 2021-22 to securities maturing in 2031, 2033 and 2060.
UCO bank believes that the only soothing factor in the higher borrowing is the additional supply in the three-year and five-year segment.
Earnings Reaction: Tata Communications
- Revenue up 3% to Rs 4,401 crore
- Net profit up 7 times to Rs 384.8 crore
- Ebitda up 39% to Rs 1,157.5 crore
- Ebitda margin at 26.3% from 19.5%
- Higher other income contributes to net profit growth
- Other income at Rs 76.1 crore from Rs 9.5 crore
- Voice Solutions revenue down 13% to Rs 758.9 crore
- Data and Managed services revenue up 8% to Rs 3,542 crore
- Payment solutions revenue down 31% to Rs 58 crore
- Real Estate revenue flat at Rs 44.1 crore
- Exceptional gain of Rs 53.95 crore this quarter
- All numbers are consolidated and compared on a year-on-year basis
Shares are locked in an upper circuit of 5% at Rs 919.4. The stock is trading at an all-time high.
Coronavirus India Updates
- 55,722 new cases reported in the last 24 hours
- Total confirmed cases at 75,50,273
- Active cases at 7,72,055
- Patients cured / discharged / migrated at 66,63,608
- Death toll rises to 1,14,610
- 579 deaths reported in the last 24 hours
- 66,399 patients reported in the last 24 hours
Stock Reaction: Inox Wind
The company informed the exchanges that it has won orders of 40 MW from retail customers spread across various industries.
The turnkey wind power project orders will be executed across locations in Gujarat and Karnataka, the company said in an exchange filing.
The contracts include supply and commissioning of 2 MW DFIG 113 meters rotor diameter Wind Turbine Generators (WTGs) as well as providing comprehensive operations and maintenance services for the life time of the project.
The orders are to be commissioned by March 2021.
Shares gained as much as 6.8% to Rs 43, before cooling off. The stock is up for the second straight day.
Earnings Reaction: HDFC Bank
Net profit of India’s largest private lender rose 18% year-on-year to Rs 7,513 crore in the quarter ended September, according to an exchange filing.
Net interest income, or the bank’s core income, rose 17% year-on-year to Rs 15,776 crore.
The key takeaway was on the asset quality front. India's largest private lender said that it did not downgrade certain accounts as NPAs, in accordance with the Supreme Court Verdict.
Had they done so, the Gross and Net NPA for the quarter would have been 1.37% and 0.35% respectively, as compared to the actual reported numbers of 1.08% and 0.17% respectively.
The September quarter will be the last under the leadership of long-time Chief Executive Officer Aditya Puri, who will step down by October-end.
In a separate release, the bank said its board approved the appointment of Sashidhar Jagdishan as MD & CEO for a period of three years from October 27, 2020.
Brokerages have raised price targets on the stock in anticipation of swifter recoveries post the situation normalising.
Shares gained as much as 3% to Rs 1,235, before cooling off.
Opening Bell: A Positive Start
Indian equity markets opened higher for the second straight day, in-line with the positive global sentiment.
The S&P BSE Sensex opened 0.84% higher at 40,318 while the NSE Nifty 50 index opened 1% higher at 11,879. Both Sensex and Nifty had reported losses of over 1% last week.
Among the sectoral indices, the Nifty Bank and Nifty Realty have opened with gains of 1.6% each.
Other indices like Nifty Auto and Nifty Pharma are up 0.8% while the Nifty Metal index is up 0.9%.
Broader markets too have begun the new trading week on a positive note. The Nifty Midcap index is up 0.6% while the Smallcap index has gained 0.7% at the start of trade.
1,121 stocks on the NSE opened with gains while 419 stocks were declining.
Current Market Update
Trading Ideas For The Day
- Nifty: Sell 11,600 Put of the October 22 expiry in the range of Rs 46-48. Target of Rs 32-22 and stop loss of Rs 62.
- Nifty Bank: Buy in the range of 23,500-23,600 for target of 23,750-23,900 and stop loss of 23,425.
- Buy Tata Steel October futures for target of Rs 400.8 and Rs 408.7 with stop loss of Rs 390.2
- Sell GCPL October futures for target of Rs 669.5 and Rs 656 with stop loss of Rs 687.5
- Tata Steel and GCPL are intraday recommendations.
Source: ICICI Direct
How Did The Fund Flows Fare On Friday
Key Stocks In Focus
- HDFC Bank: Net Interest Income up 17% year-on-year to Rs 15,776 crore. Net profit up 18% to Rs 7,513 crore. Gross NPA at 1.08% from 1.36% last quarter while net NPA at 0.17% from 0.35% last quarter. India's largest private lender said that it did not downgrade certain accounts as NPAs, in accordance with the Supreme Court Verdict. Had they done so, the Gross and Net NPA for the quarter would have been 1.37% and 0.35% respectively, as compared to the actual reported numbers of 1.08% and 0.17% respectively.
- Prestige Estates: Signs non-binding Letter of Intent with the Blackstone Group for the sale of certain direct and indirect interest in certain commercial offices, retail and hotel properties, mall management and identified maintenance businesses. Blackstone Group now gets exclusivity in relation to the transactions contemplated in the letter.
- JK Tyre: Subsidiary Cavendish Industries recorded sales of Rs 667 crore for the quarter. The Ebitda of Rs 114 crore reflected in an operating margin of 17%, according to the company. The subsidiary recorded its best ever performance on the back of higher capacity utilisation of 84% with significant increase in truck / bus radials and 2-3-wheeler tyre sales.
- Shoppers Stop: Board approves raising Rs 300 crore through a rights issue. It has also appointed Venugopal Nair as the company's MD & CEO from November 6, for a period of three years. Nair is currently the CEO of Westside.
- SRF: The company has raised Rs 750 crore through its QIP issue which was closed on October 16. The issue price for 17.64 lakh shares has been set at Rs 4,250 per share, which is a 4.7% discount to Friday's closing price. Funds like ICICI Prudential, Fidelity Funds, Nippon Life India Trustee have been allotted shares.
- DLF: PTI reports that DLF Cyber City Developers (DCCDL) - the company's rental arm has raised debt worth Rs 2,400 crore from State Bank of India to refinance its existing debt and fund future expansion plans.
- Nifty Earnings Today: Britannia, HDFC Life
- Non-Nifty Earnings Today: ACC, Century Textiles, Hatsun Agro, L&T Technology Services, Rallis India, Tata Metaliks
To know more about earnings reported after market hours, key brokerage updates and F&O cues, click here.
Your Trade Setup For The Day
A Check On Indian ADRs
Focus Shifts To Earnings
Good Morning!
Indian equity markets are likely to begin the new trading week on a positive note, as indicated by the futures. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.7% to 11,857 as of 7:40 a.m. on Monday.
Both S&P BSE Sensex and NSE Nifty 50 posted losses of more than 1% last week despite gaining in four of the five trading sessions.
The street will now focus on corporate earnings. Stocks like HDFC Bank Ltd. and Avenue Supermarts Ltd. reported results over the weekend. IIFL Securities, Bajaj Consumer Care, Tata Communications and Oberoi Realty may also react to their quarterly earnings announcement.
HDFC Life and Britannia are the two Nifty companies that will report financials today. Some non-index names like ACC, Hatsun Agro, Century Textiles, L&T Technology Services, Rallis India and Tata Metaliks, too, will announce numbers.
Globally, Asian markets have opened higher this morning on hopes of progress in stimulus talks in the U.S. Benchmark indices in Japan, South Korea and Australia are trading with gains. Futures on the Dow Jones are trading higher by 160 points.
West Texas Intermediate crude is little changed at $40.89 per barrel ahead of an OPEC+ meeting. Gold is trading flat at $1,900/Oz.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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