All You Need To Know Going Into Trade On October 26

Asian stocks rose Tuesday after a record S&P 500 close as corporate earnings and progress on President Joe Biden’s economic agenda helped sentiment even as the debate over inflation risks intensified.

Equities were up in Japan, Australia and South Korea. U.S. futures advanced, with Nasdaq 100 contracts outperforming, which led U.S. gains overnight amid a Tesla Inc. rally to a $1 trillion market value. Facebook Inc. was higher in late trading on strong user growth and a pledge to buy back as much as $50 billion more in stock.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.28% to 18,191.50, as of 7:00 a.m.

The Treasury yield curve steepened overnight as shorter-maturity bonds climbed. The dollar was steady.

Gold held above $1,800 an ounce. Crude oil pared gains after hitting $85 a barrel for the first time since 2014. Elsewhere, Bitcoin traded around $63,000.

Earnings Post Market Hours

Tech Mahindra Q2FY22 (Consolidated, QoQ)

• Revenue up 7% at Rs 10,881.30 crore Vs Rs 10,197.60 crore (BBG estimate: Rs 10,662.5)

• Net profit down 1% at Rs 1,338.70 crore Vs Rs 1,353.20 crore (BBG estimate: Rs 1,358.3 crore)

• Ebit up 7% at Rs 1,652.20 crore Vs Rs 1,545.30 crore (BBG estimate: Rs 1,616.9)

• Margin at 15.18% Vs 15.15% (BBG Estimate: 15.16%)

• $ Revenue up 6.4% at $1,472.6 million Vs $1,383.6 million (BBG estimate: $1,421.70 million)

• Net new deal wins of $750 million

• Declared a special dividend of Rs 15 per share

• Through its subsidiaries acquired two companies (Infostar LLC, and WMW by Born London, U.K.) for Rs 885 crore

Indus Towers Q2FY22 (Consolidated, QoQ)

• Revenue up 1% at Rs 6,876.5 crore Vs Rs 6,797 crore

• Net profit up 10% at Rs 1,558.50 crore Vs Rs 1,415.30 crore

• Ebitda up 3% at Rs 3,640.50 crore Vs Rs 3,528.50 crore

• Margin at 52.9% Vs 51.9%

Ceat Q2FY22 (Consolidated, YoY)

• Revenue up 24% at Rs 2,451.78 crore Vs Rs 1,978.47 crore

• Net profit down 77% at Rs 41.98 crore Vs Rs 181.86 crore

• Ebitda down 25% at Rs 220.33 crore Vs Rs 292.46 crore

• Margin 9% Vs 14.8%

• Approved up to Rs 500 crore bonds issue

Orient Cement Q2FY22 (YoY)

• Revenue up 28% at Rs 613.12 crore Vs Rs 477.49 crore

• Net profit up 63% at Rs 56.88 crore Vs Rs 34.81 crore

• Ebitda up 18% at Rs 133.97 crore Vs Rs 113.23 crore

• Margin at 21.9% Vs 23.7%

HDFC AMC Q2FY22 (YoY)

• Revenue up 19% at Rs 542.33 crore Vs Rs 456.25 crore

• Net profit up 2% at Rs 344.38 crore Vs Rs 338.06 crore

• Naozad Sirwalla named as successor to CFO Piyush Surana

Kansai Nerolac Q2FY22 (Consolidated, YoY)

• Revenue up 17% at Rs 1,619.64 crore Vs Rs 1,383.21

• Net profit down 45% at Rs 92.01 crore Vs Rs 168.20 crore

• Ebitda down 39% at Rs 162.75 crore Vs Rs 268.57 crore

• Margin at 10% Vs 19.4%

• Approved payment of interim dividend of Rs 1.25 per share

Stocks To Watch

• Adani Total Gas: The company’s board will consider on October 28 a proposal to raise funds via a medium-term note program of as much as $750 million, or its equivalent in any currency, in one or more tranches. The initial issuance will be as much as $300 million.

• Bharti Airtel: To avail the option of deferment of the payment of spectrum auction instalments due up to four years. The company has also sought deferment of AGR related dues by four years with immediate effect. It will consider other option offered by Department of Telecommunications within the stipulated timelines.

• Quess Corp: The company has raised stake in Stellarslog Technovation to 36.58%.

• Quick Heal Technologies: Nitin Kulkarni has resigned as the Chief Financial Officer of the company. Kulkarni will be relieved from his duties with effect from closure of business hours of October 26.

• Jagran Prakashan: Board has approved the appointment of Amit Jaiswal as the new CFO of the company with effect from November 1.

• Zee Entertainment: Court to give verdict on Zee-Invesco case

• Earnings: Axis Bank, Kotak Mahindra Bank, Cipla, Bajaj Finance, Ambuja Cements, ABB India, Birlasoft, IRB Infrastructure Developers, Dr. Lal PathLabs, Torrent Pharmaceuticals, Canara Bank, Central Bank of India, Nippon Life India Asset Management, Persistent Systems, PI Industries, Jindal Stainless, Mahanagar Gas, Authum Investment & Infrastructure, Mangalore Refinery & Petrochemicals, Wabco India, Sanofi India, Symphony, Zensar Technologies, Gati, Best Agrolife, Greaves Cotton, Greenlam Industries, Hikal, Indo Count Industries, Mahindra Lifespace Developers, Triveni Turbine, Meghmani Finechem, Meghmani Organics, Ramco Industries, Surya Roshni

Analyst Actions

• Colgate India raised to 'Buy' at Dolat Capital; Price target: Rs 1,722

• Godrej Properties cut to 'Reduce' at HSBC; Price target: Rs 1,440

• Oberoi Realty cut to 'Reduce' at HSBC; Price target: Rs 740

• Prestige Estates cut to 'Hold' at HSBC; Price target: Rs 470

• Sobha cut to 'Hold' at HSBC; Price target: Rs 740

Pledge Share Details

• Future Consumer: Promoter Future Capital Investment invoked pledge of 20 lakh shares between October 20-21.

• Future Retail: Promoter Future Corporate Resources invoked pledge of 4.73 lakh shares between October 20-21.

• Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 3.70 lakh shares between October 21-22.

• Sun Pharmaceutical Industries: Promoter Shanghvi Finance revoked pledge of 52.75 lakh shares between October 20-21.

  As reported on October 25.

Trading Tweaks

• Ex-Date Interim Dividend: Infosys, Hindustan Unilever, Nestle India, Cyient, DCM Shriram

• Ex-Date Special Dividend: L&T Technology Services

• Ex-Date Buyback: Goldiam International

• Ex-Date Bonus Issue and Stock Split: Godawari Power & Ispat

• Ex-Date Income Distribution: IRB InvIT Fund

• Record Date Interim Dividend: Larsen & Toubro Infotech

• Price Band Revised From 10% To 5%: Panacea Biotec

• Move Into Short-Term ASM Framework: IRB Infrastructure Developers, Best Agrolife, Jindal Worldwide

• Move Out Of Short-Term ASM Framework: Tata Motors, Jaiprakash Power Ventures, Sona BLW Precision Forgings, Tata Teleservices (Maharashtra), Genesys International Corporation

Money Market Update

• The rupee ended at 75.08 against the U.S. Dollar on Monday as compared to Friday's closing of 74.89.

F&O Cues

• Nifty October futures ended at 18,153.90, a premium of 28.5 points.

• Nifty October futures shed 8.09%, and 16,175 shares in Open Interest.

• Nifty Bank October futures ended at 41,342, a premium of 149.6 points.

• Nifty Bank October futures added 0.44%, and 249 shares in Open Interest.

• Securities in the ban list: Escorts, Indiabulls Housing Finance, IEX, SAIL.

• Securities added to the ban list: Sun TV, NMDC.

• Securities removed from the ban list: Vodafone Idea, Punjab National Bank.

(Corrects an earlier version that misstated Kansai Nerolac’s Q2 FY22 numbers as sequential.)