View on market: Stay Cautious, be with quality business:
Asian stocks rose early Tuesday as investors mulled corporate earnings as well as the prospect of tightening monetary policy to restrain inflation. Treasury yields and the dollar edged down. Shares had modest gains in Japan, Australia and South Korea, while U.S. futures fluctuated after the S&P 500 and Nasdaq 100 gained overnight, aided by optimism about corporate earnings. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.44% to 18,567.50 as of 8:05 a.m.
Economic Calender:
- INR: M3 Money Supply on 20th October, 2021.
- INR: Bank Loan & Deposit Growth on 22th October, 2021.
- USD: Building Permits (MoM) (Sep) on 19th October, 2021.
- USD: Crude Oil Inventories on 20th October, 2021.
Earnings: Nestle India, Hindustan Unilever, ICICI Prudential Life Insurance Company, L&T Technology Services, ICICI Securities, ACC, DCM Shriram, Tata Steel Bsl, Heidelbergcement India, Jubilant Ingrevia, JSW Ispat Special Products, Mastek, Navin Fluorine International, Nelco, Network18 Media & Investments, Rallis India, Tv18 Broadcast.
Results:
L&T Infotech Q2FY22 (Consolidated, QoQ): Revenue up 9% at Rs 3,767 crore Vs Rs 3,462.50 crore $ Revenue up 8.3% at $509 million Constant currency revenue growth of 8.9% Net profit up 11% at Rs 551.70 crore Vs Rs 496.80 crore Ebit up 14% at Rs 648.20 crore Vs Rs 568.2 crore Margin at 17.21% Vs 16.41% Declared an interim dividend of Rs 15 per share for FY22.
Route Mobile Q2FY22 (Consolidated, YoY): Revenue up 25% at Rs 435.67 crore Vs Rs 349.27 crore Net profit up 28% at Rs 42.17 crore Vs Rs 32.87 crore Ebitda up 34% at Rs 56 crore Vs Rs 41.81 crore Margin at 12.85% Vs 11.97%.
Brokerage Radar:
CLSA ON ULTRATECH: Maintain outperform at the price of Rs 7395 for the target price of Rs 8300. Q2 EBITDA largely in-line: company confident of passing on cost inflation. Remain positive on its demand outlook. Ability to implement price hikes to determine stock trajectory in near term.
CITI ON L&T INFOTECH: Maintain underweight at the price of Rs 5905 for the target price of Rs 5180. Strong Q2, revenue ahead of expectations. Growth broad-based & largely driven by small & mid-sized deals. EBIT margin improved QoQ despite higher attrition & supply- side concerns. Raise FY22/23/FY24 estimates by 5/3/2% and multiple to 35x.
International Markets:
U.S & Europe
| Particulars | 18th Oct | Chg | Chg(%) |
| Nasdaq | 15,021.81 | 124.47 | 0.84 |
| Dow | 35,258.61 | -36.15 | -0.10 |
| FTSE | 7,203.83 | -30.20 | -0.42 |
| CAC | 6,673.10 | -54.42 | -0.81 |
| DAX | 15,474.47 | -112.89 | -0.72 |
| Dow Fut.* | 35,110.00 | -23.00 | -0.07 |
Asian markets:
| Particulars | 19th Oct | Chg | Chg(%) |
| SGX Nifty | 18,567.50 | 81.50 | 0.44 |
| Nikkei | 29,213.25 | 187.79 | 0.65 |
| Straits Times | 3,191.37 | 17.55 | 0.55 |
| Hang Seng | 25,692.66 | 282.91 | 1.11 |
| Shanghai | 3,574.49 | 6.35 | 0.18 |
ADR Watch:
| Particulars | 18thOct | Chg | Chg(%) |
| Dr Reddy | 64.65 | -1.36 | -2.06 |
| HDFC Bank | 76.30 | 0.54 | 0.71 |
| ICICI Bank | 19.90 | 0.45 | 2.31 |
| Infosys | 23.78 | 0.40 | 1.71 |
| Tata Motor | 33.79 | -0.40 | -1.17 |
| Wipro | 9.88 | -0.03 | -0.30 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.34 | 0.00 |
| Brent | 84.19 | -0.17 |
| Gold | 1772.40 | 0.38 |
| Silver | 23.422 | 0.68 |
FIIs & DII
| Particulars | 18th Oct | 14th Oct |
| FIIs | 512.44 | 1681.60 |
| DIIs | -1703.87 | -1750.59 |
News Update:
Edelweiss Financial Services: Edelweiss Group has announced divestment of its majority stake in Edelweiss Gallagher Insurance Brokers. IRDAI has approved the divestment. The business will transition to the Gallagher brand in the coming months. Edelweiss Group to focus on developing its life and non-life insurance businesses.
State Bank of India: RBI has imposed Rs 1 crore penalty on the bank. Penalty due to non-compliance with directions on fraud classification and reporting. Bank was found to have delayed reporting of fraud in a specific account. Further, the bank’s committee has accorded approval to allot 6,000 Basel lll compliant fully paid-up debt instruments in the nature of debentures qualifying as AT 1 Capital of the bank of face value of Rs 1 crore each, bearing a coupon of 7.72% per annum, aggregating to Rs 6,000 crore to bond subscribers.
Dixon Technologies (India): Padget Electronics, a subsidiary of the company, and Orbic, a U.S. based smartphone manufacturer have entered into an agreement for manufacturing of smartphones at Padget’s manufacturing facility situated at Noida.
Indian Energy Exchange: Board to meet on October 21 to consider the proposal of bonus issue of equity shares.
TTK Prestige: To consider sub-division of equity shares of FV of Rs 10 each on October 27.
HG Infra Engineering: The company has been declared as the L-1 bidder by the National Highways Authority of India for two hybrid annuity model projects.
Reliance/Future Retail: The NCLT has allowed the creditors and shareholders of Reliance Retail Ventures to hold meetings to seek approval for the company’s proposed ₹24,700 crore deal with the Future Group.
Telecom companies: The telecom department, in consultation with the finance ministry, has written to telecom companies, sharing the contours of the equity conversion formula. The letter gives a 10-day deadline to reply on whether they will be opting for the AGR (spectrum) dues moratorium and whether they will be opting for the equity conversion scheme.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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