Market View 31st October 2023

View on market: Volatility Prevails, Market is searching for better value

Asia stocks are poised for a mixed open. The yen rallied on a report that the Bank of Japan may raise a limit on government bond yields, Bloomberg reported. Japan’s currency surged to its strongest level in nearly three weeks after Nikkei reported, without identifying from where it obtained the information, that the Bank of Japan is considering letting the yield on 10-year government bonds rise above 1%. Brent crude rose to $88.05 a barrel, and West Texas Intermediate was trading around the $82.85 level. The yield on the 10-year U.S. bond was trading at 4.90%, whereas Bitcoin was above the $34,000 level. India’s benchmark stock indices advanced for the second consecutive session on Monday, supported by gains in Reliance Industries and HDFC Bank. The S&P BSE Sensex closed 329.85 points, or 0.52%, higher at 64,112.65, while the NSE Nifty 50 gained 93.65 points, or 0.49%, to end at 19,40.90. Intraday, the S&P BSE Sensex rose 0.63% to 64,184.58, and the NSE Nifty 50 gained 0.58% to 19,158.50.

Economic Calendar:

• USD: CB Consumer Confidence (Oct) on 31st October, 2023
• USD: ISM Manufacturing PMI (Oct) on 1st November, 2023
• INR: Infrastructure Output (YoY) (Sep) , USD on 31st October, 2023
• INR: RBI Monetary and Credit Information Review on 31st October, 2023

Brokerage Radar:

CITI on Oberoi: Neutral, TP Rs 1147 2Q: Healthy Pre-Sales & Cash Flows Co continues to execute well which is evident from high residential operating margin which came at 47.66% in 2Q v/s 39.2% in 2QFY23. Valuation leaves limited upside potential.

MS on DLF: OW, TP Rs 549 2Q net profit grew by 31% helped by lower interest expense & higher rental income (owing to rise in occupancy) Higher collection drove co into a net cash position (excluding JV rental) Val at 50x trailing P/E implies lots of growth priced in

Jefferies on UPL: Buy, TP cut to Rs 675 from Rs 800 Q2 missed JEFe. Sales/EBITDA declined by 19%/43%YoY, affected by global channel destocking & elevated pricing pressure (-15%). Cut FY24-26e EPS by 9-10% But, 2H is est to improve as NA, Lat-Am & Europe enter major cropping season

International Markets

 U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Tata Motors: The carmaker said an arbitration panel has ruled in its favour to recover Rs 766 crore with interest from the West Bengal Industrial Development Corp. for the Singur-Nano project that the company was forced to scrap.

Marico: The board approved an interim dividend of Rs 3 per share.

Power Grid Corp: The company acquired Beawar Dausa Transmission via tariff-based competitive bidding for an aggregate value of nearly Rs 21.37 crore, subject to adjustment.

Gulf Oil Lubricants: The company acquired 51% of Tirec Transmission.

Filatex India: Board-approved expansion project for manufacturing recycling ships with a capacity of 20,000 TPA from polyester and textile waste. The project is to be executed by a company or subsidiary at an estimated cost of Rs 150 crore.

JK Cement: The company proposed to acquire shares of four companies under captive power plant mode through SPV.

Chemplast Sanmar: The custom-manufactured chemical division signed an LOI with a global agrochemical innovator to manufacture a new pipeline of active ingredients for five years. Commercial supplies are expected to start in CY2025.

Astral: Atul Sanghvi, president of Faucet and Sanitary Ware, resigned.

DCM Shriram: The company will set up a sugar plant in Loni, Uttar Pradesh, to increase capacity to 9,400 TCD from 7,300 TCD.

HFCL: The company launched a comprehensive suite of next-gen connectivity products and solutions at India Mobile Congress 2023.

Colgate Palmolive: The company received a transfer pricing order of Rs 170 crore from the Income Tax Authority for AY 2021–22. It will make an application before the Dispute Resolution Panel.

Source: Moneycontrol, Bloomberg Quint, Investing 

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