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

Asia stocks and U.S. futures slid Monday as surging energy prices cemented worries about inflation, sending bond yields higher. Equities fell in Japan and South Korea. Australia rose. U.S. contracts dipped after Wall Street stocks advanced on Friday, with the S&P 500 chalking its best week since July as earnings buoyed sentiment. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.17% to 18,435 as of 8:00 a.m.

Economic Calender:

  • INR:  M3 Money Supply on 20th October, 2021.
  • INR:  Bank Loan & Deposit Growth on 22th October, 2021.
  • USD: Industrial Production (YoY) (Sep) on 18th October, 2021.
  • USD: Building Permits (MoM) (Sep) on 19th October, 2021.

Earnings: Ultratech Cement, L&T Infotech, Hatsun Agro Product, Route Mobile, Craftsman Automation, Alok Industries, Tata Coffee.

Results:

HDFC Bank Q2FY22 (Standalone): NII up 12% at Rs 17,684 crore Vs Rs 15,776.4 crore (YoY) Net profit up 17.6% at Rs 8,834 crore Vs Rs 7,513 crore (YoY) GNPA at 1.35% Vs 1.47% (QoQ) NNPA at 0.40% Vs 0.48% (QoQ) Total provisions for the bank rose 6% YoY to Rs 3,925 crore Total deposits stood at Rs 14.06 lakh crore, up 14.4% YoY.

Avenue Supermarts Q2FY22 (Consolidated, YoY): Revenue up 47% at Rs 7,788.94 crore Vs Rs 5,306.20 crore Net profit up 1.10 times at Rs 417.79 crore Vs Rs 198.55 crore Ebitda up 1.03 times at Rs 668.58 crore Vs Rs 329.5 crore Margin at 8.58% Vs 6.21%

Brokerage Radar:

CLSA ON HDFC BANK: Maintain buy at the price of Rs 1687 for the target price of Rs 2025. Q2 strong with lower slippage than expected. Growth improved especially in NIM Accretive segments. Addl restructuring of 1.2% higher than expected. Rs 9,200 Cr contingency provisions provides comfort on normalising credit costs Commentary indicated retail/commercial growth will continue to accelerate expect an 18% earnings CAGR over FY21-24.

International Markets:

U.S & Europe

Particulars 15th Oct Chg Chg(%)
Nasdaq 14,897.34 73.91 0.50
Dow 35,294.76 382.20 1.09
FTSE 7,234.03 26.32 0.37
CAC 6,727.52 42.31 0.63
DAX 15,587.36 124.64 0.81
Dow Fut.* 35,190.00 19.00 0.05

Asian markets:

Particulars 18th Oct Chg Chg(%)
SGX Nifty 18,435.00 31.00 0.17
Nikkei 28,982.38 -86.25 -0.30
Straits Times 3,166.45 -7.46 -0.24
Hang Seng 25,215.38 -115.58 -0.46
Shanghai 3,548.47 -23.90 -0.67

ADR Watch:

Particulars 15th Oct Chg Chg(%)
Dr Reddy 66.01 0.55 0.84
HDFC Bank 75.76 0.08 0.11
ICICI Bank 19.45 0.08 0.41
Infosys 23.38 0.67 2.95
Tata Motor 34.19 0.26 0.77
Wipro 9.91 0.15 1.54

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 75.34 -0.19
Brent 85.68  0.95
Gold 1770.95 0.15
Silver</td 23.438 0.38

FIIs & DII

Particulars 14th Oct 13th Oct
FIIs 1681.60 937.31
DIIs -1750.59 -431.72

News Update:

Coal India: The company has temporarily stopped supplies to industrial users as the energy crisis in India escalates. The move to prioritize supplies to power plants is aimed at helping boost depleted inventories that are putting continued operations at risk. But it could worsen the situation for other industries such as aluminum smelters, cement producers and steel mills.

Lupin: Lupin Pharmaceuticals Inc. has voluntarily recalled lrbesartan tablets and lrbesartan and Hydrochlorothiazide tablets in the U.S. due to the presence of an impurity called N-nitrosolrbesartan. Some tested API batches were above the specification limit for the impurity, the company said. Lupin discontinued the marketing of these tablets in January 2021.

Dr. Reddy’s Laboratories: Exelixis Inc has in-licensed second anti-cancer compound from Aurigene Discovery following U.S. FDA acceptance of lnvestigational New Drug application for phase 1 clinical trial in Non-Hodgkin’s Lymphoma. Further the company has launched Carmustine for Injection, USP, a therapeutic equivalent generic version of BiCNU® approved by the FDA.

Dixon Technologies (India): Dixon Electro Appliances, a subsidiary of the company, has received approval from the government under PLI scheme for manufacturing of telecom and networking products in India. “With this, Dixon will be venturing into a new segment of telecom devices and we expect to begin production mainly for routers, modems and GPONs,” Vice Chairman and MD, Atul Lall said.

NBCC India: The company secured the total business of Rs 2,100.96 crore in September.

PNB Housing Finance: The board has decided not to proceed with a preferential issue of shares to investors led by Carlyle after the plan was delayed due to pending legal proceedings. The share subscription agreements executed with the proposed allottees have been terminated. Carlyle’s Pluto Investments S.a.r.l will be initiating the process to withdraw the open offer for PNB Housing shares made at Rs 403.22 each. India top court to hear plea on PNB Housing-Carlyle deal.

Aviation companies: From today onwards, the Ministry of Civil Aviation has allowed airlines to operate at 100 percent capacity.

M&M Forgings: MM Forgings has acquired CAFOMA Autoparts for a sum of 28 crore in cash and 5 crore of debt.

Macrotech Developers: Board to meet on Oct 21 to consider proposal to raise funds. Further the company is in talks to sell 4 lakh sq ft office building in Mumbai, according to PTI.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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