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View on market: Stay Cautious, be with quality business:

U.S. equity futures retreated Monday and Asian stocks were mixed amid risks to the pandemic recovery from an energy crunch and the prospect of tighter monetary policy to fight inflation. Shares dropped in Australia and edged up in Japan, while S&P 500 and Nasdaq 100 contracts were in the red. U.S. equities declined Friday after jobs growth data fell significantly short of expectations but also showed a jump in earnings. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.18% to 17,886 as of 7 a.m. Treasury futures fell, after the 10-year U.S. Treasury yield advanced past 1.6% on Friday. Elsewhere, tension over Taiwan is simmering.

Economic Calender:

  • INR: CPI (YoY) (Sept) on 12th October, 2021.
  • INR: Cumulative Industrial Production (Aug) on 12th October, 2021.
  • INR: WPI Inflation ((YoY) (Sept) on 14th October, 2021.
  • USD: Core CPI (MoM) (Sep) on 13th October, 2021.
  • USD: PPI (MoM) (Sep) on 14th October, 2021.

Earnings: Delta Corp, HFCL, Krsnaa Diagnostics, Ramkrishna Forgings, Saregama India, Tata Metaliks, Tinplate Company of India.

Results:

TCS Q2FY22 (Consolidated, QoQ): Revenue up 3.21% at Rs 46,867 crore Vs Rs 45,411 crore. Profit up 6.84% at Rs 9,624 crore Vs Rs 9,008 crore. Ebit up 3.56% to Rs 12,000 crore Vs Rs 11,588 crore. Ebit margin at 25.6% Vs 25.5%. Declared a second interim dividend of Rs 7 per equity share.

Brokerage Radar:

JEFFERIES ON RELIANCE: Maintain buy at the price of Rs 2671 for the target price of Rs 3050. Acquired REC Group, an integrated solar PV maker, for $771 m. REC only intl co to commercialise tech that consumes 75% less pwr vs chinese cos. REC has patented tech & opens up export market for co’s solar business. Include co’s solar business valuation in their target. There’s possibility of 10-12% upgrade to consensus O2C EBITDA in FY22.

CLSA ON TCS: Maintain outperform at the price of Rs 3936 for the target price of Rs 4050. Q2 tad below estimates on both revenue growth & margin. Exports up 3.5% QoQ in CC terms, same as Q1 vs hopes of seasonal acceleration. Margin flat QoQ, in contrast to recovery, following wage hikes impact in Q1. Cut FY22/23 EPS estimates by 1% on modest order book & weak near-term margin outlook. Like its strong cash generation & a liberal capital return policy. Incremental upside could be limited from current levels.

International Markets:

U.S & Europe

Particulars 8th Oct Chg Chg(%)
Nasdaq 14,579.54 -74.48 -0.51
Dow 34,746.25 -8.69 -0.02
FTSE 7,095.55 17.51 0.25
CAC 6,559.99 -40.20 -0.61
DAX 15,206.13 -44.73 -0.29
Dow Fut.* 34,599.00 -27.00 -0.08

Asian markets:

Particulars 11th Oct Chg Chg(%)
SGX Nifty 17,916.00 -3.50 -0.02
Nikkei 28,488.95 440.01 1.57
Straits Times 3,121.18 8.37 0.27
Hang Seng 25,320.10 482.25 1.94
Shanghai 3,603.63 11.46 0.32

ADR Watch:

Particulars 8th Oct Chg Chg(%)
Dr Reddy 64.32 -1.17 -1.79
HDFC Bank 72.70 -0.91 -1.24
ICICI Bank 18.62 -0.28 -1.48
Infosys 21.93 -0.84 -3.69
Tata Motor 26.35 0.60 2.33
Wipro 8.82 -0.10 -1.12

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 75.12 0.33
Brent 83.31 1.12
Gold 1759.85 0.14
Silver 22.785 0.32

FIIs & DII

Particulars 8th Oct 7th Oct
FIIs -64.01 -1764.25
DIIs -168.19 2528.64

News Update:

Tata Motors: Jaguar Land Rover Q2 FY22 retail sales continued to be constrained by the impact of the global semiconductor shortage on production, with wholesales for the period in line with July guidance. Retail sales were down 18.4% year-on-year at 92,710 vehicles Vs 1,13,569 vehicles. Wholesales totalled 64,032 units (exc. the China JV), down 12.8% YoY.

Reliance Industries: Reliance New Energy Solar, a subsidiary of the company, has acquired REC Solar Holdings AS from China National Bluestar Co for an enterprise value of $771 million. REC Solar is one of the world’s leading solar cell, panels and polysilicon manufacturer.

Tata Group stocks: Tata Sons emerged as the winning bidder of Air India. It made an offer of Rs 18,000 crore. The reserve price was Rs 12,906 crore. Tata Group will get 100% stake in Air India, including its wholly owned subsidiary Air India Express, and 50% in ground handling unit Air India SATS Airports Services Pvt.

Jubilant Ingrevia: To acquire of 26.60% stake in AMP Energy Green Fifteen for Rs 5.11 crore. The acquisition is expected to be completed in six months. The company has acquired stake in AMP to put up solar power plant with capacity of 15.5 MW under captive scheme.

Adani Total Gas: The company has forayed into compressed bio-gas business. It has signed a definitive agreement with Shri Mataji Gauvansh Seva Sansthan for exclusively collaborating on the establishment of a bio-conversion plant with a design capacity of about 350 tonnes per day of feed processing at Mathura, Uttar Pradesh based on cattle dung as the primary biomass along with other biomass including napier grass, press mud, etc.

GOCL Corporation: IDL Explosives, a subsidiary of company, has bagged order of Rs 592.45 crore from Coal India, for supply of bulk explosives, to be supplied over a period of 2 years.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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