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

Stocks rose Thursday as traders assessed the durability of the economic recovery to inflationary pressures and a looming reduction in the Federal Reserve’s pandemic-era stimulus. Equities climbed in Japan, South Korea and Australia. U.S. futures pushed higher after Wall Street snapped a three-day losing streak, with the tech-heavy Nasdaq 100 outperforming the S&P 500. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.45% to 18,262.50 as of 8 a.m.

Economic Calendar:

  • INR: WPI Inflation (YoY) (Sept) on 14th October, 2021.
  • INR: Trade Balance (Sept) & FX Reserve, USD on 15th October, 2021.
  • USD: Core CPI (MoM) (Sep) on 13th October, 2021.
  • USD: PPI (MoM) (Sep) on 14th October, 2021.

Earnings: HCL Technologies, Mahindra CIE Automotive, Indiabulls Real Estate, Inox Wind, Inox Wind Energy, GTPL Hathway, Den Networks, Cyient, Century Textiles & Ind.

Results:

Infosys Q2FY22 (Consolidated, QoQ): Revenue up 6% at Rs 29,602 crore Vs Rs 27,896 crore Net profit up 4% at Rs 5,421 crore Vs Rs 5,195 crore Ebit up 6% at Rs 6,972 crore Vs Rs 6,603 crore Margin at 23.6% Vs 23.7% Declared an interim div. of Rs 15 per equity share.

Wipro Q2 FY22 (Consolidated, QoQ): Revenue up 7% at Rs 19,668.90 crore Vs Rs 18,467.40 crore Net profit down 9.62% at Rs 2,930.70 crore Vs Rs 3,242.60 crore Ebit up 1% at Rs 3,398.70 crore Vs Rs 3,369.30 crore Margin at 17.3% Vs 18.2%.

Mindtree Q2 FY22 (Consolidated, QoQ): Revenue up 13% at Rs 2,586.20 crore Vs Rs 2,291.70 crore Net profit up 16% at Rs 398.90 crore Vs Rs 343.40 crore Ebit up 16% at Rs 469.70 crore Vs Rs 406.30 crore Margin at 18.2% Vs 17.7% Approved interim div of Rs 10/sh

International Markets:

U.S & Europe

Particulars 13th Oct Chg Chg(%)
Nasdaq 14,571.64 105.71 0.73
Dow 34,377.81 -0.53 0.00
FTSE 7,141.82 11.59 0.16
CAC 6,597.38 49.27 0.75
DAX 15,249.38 102.51 0.68
Dow Fut.* 34,343.00 86.00 0.25

Asian markets:

Particulars 14th Oct Chg Chg(%)
SGX Nifty 18,262.50 82.50 0.45
Nikkei 28,425.90 285.62 1.01
Straits Times 3,152.10 -4.32 -0.14
Hang Seng 24,962.59 -362.50 -1.43
Shanghai 3,561.34 -0.42 -0.01

ADR Watch:

Particulars 13th Oct Chg Chg(%)
Dr Reddy 64.71 0.15 0.23
HDFC Bank 74.16 0.49 0.67
ICICI Bank 18.93 0.05 0.26
Infosys 22.65 0.77 3.52
Tata Motor 34.20 2.52 7.95
Wipro 9.57 0.65 7.29

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 75.49 -0.15
Brent 83.27 0.11
Gold 1789.85 -0.29
Silver 22.957 -0.92

FIIs & DII

Particulars 13th Oct 12th Oct
FIIs 937.31 -278.32
DIIs -431.72 -741.22

Brokerage Radar:

CLSA ON INFOSYS: Maintain buy at the price of Rs 1709 for the target price of Rs 2060. Results reassuring on demand strength & ability to manage rising supply-side pressure. 2nd successive Qtr of renewal heavy order booking is a dampener. Should sustain investor confidence in earnings growth momentum strength. Should bridge the valuation gap vs TCS. Raise FY22/23 EPS estimates by 1% each.

MACQUARIE ON WIPRO: Maintain outperform at the price of Rs 673 for the target price of Rs 780. Strong execution led to a revenue beat in Q2.  Deal wins remain healthy with $580 m of wins in Q2. Raise FY 22-24 EPS estimates by 2-3%.

News Update:

Dish TV India: The company’s board has agreed that the EGM cannot be called as sought by Yes Bank. The board has also instructed the management to send a detailed response to the bank. “Yes Bank being a banking company and it’s shareholding in the company being a consequence of invocation of pledges, there are certain embargos under the provisions of the Banking Regulation Act, 1949 read with SEBI.

Westlife Development: The company will add 150-200 stores and invest Rs 800-1,000 crore across the business over the next 3-4 years. All these initiatives are expected to create 6,000-8,000 direct and indirect jobs in the industry.

UltraTech Cement: The company commissioned 1.2 mtpa cement capacity in October 2021, which will help the company to service the fast-growing cement demand in the Eastern markets. The additional capacity will cost company Rs 400 crore.

Vodafone Idea:The telecom operator is in advanced talks to sell a minority stake to global private equity investors including Apollo Global Management and Carlyle to raise up to $1 billion over the next 2-3 months, a report said.

Banks: HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank and DBS India are reportedly in the race to bid for Citi India consumer businesses before the deadline of October 26.

Mahanagar Gas: The company announced revised prices of CNG as Rs 57.54/Kg and PNG as Rs 33.93/SCM in and around Mumbai with effect from midnight of October 13.

Zee Entertainment Enterprises: Board filed response to Invesco’s open letter to shareholders and clarified deal with Sony. Invesco should stop publishing “half truths” about proposed Sony deal. Non compete fee to Zee promoters in Sony deal is a secondary transfer and will not be dilutive to public shareholders. Quantum of promoter shareholding in Sony deal is less than in Reliance deal proposed by Invesco. Invesco has cast unsubstantiated aspersions on company and board. Invesco’s actions are motivated by concerns entirely extraneous to any corporate governance issue.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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