Market View 19th October 2022

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

Asian stocks had a mixed open on Wednesday as traders assessed a solid start to the corporate-earnings season that helped extend a rally in US markets. Equities in Japan and Australia advanced, while South Korean stocks fluctuated. In the US, stocks rallied after earlier giving up almost all of their advance, sending the S&P 500 to back-to-back gains to start the week. Domestic benchmarks indices closed higher for the second day in a row buoyed by by broad-based gains across sectors led by power, realty, capital goods, utilities, automobiles, telecommunications, industrials, and energy stocks, and a recovery in global equities.

Economic Calendar:

• USD : Existing Home Sales (Sep) on 20th October, 2022
• USD : CB Consumer Confidence (Oct) on 25th October, 2022
• INR : M3 Money Supply on 19th October, 2022
• INR : Federal Fiscal Deficit (Sep) on 31st October, 2022

Q2FY23 Result Today: IndusInd Bank, UltraTech Cement, HDFC Asset Management Company, Nestle India, 5paisa Capital, AU Small Finance Bank, CG Power and Industrial Solutions, Havells India, Home First Finance Company India, Inox Leisure, Metro Brands, Max Financial Services, Nippon Life India Asset Management, Navin Fluorine International, Persistent Systems, Shoppers Stop, and Syngene

Brokerage Radar:

CLSA ON TATA COM: O-P, TP Rs 1433 2QFY23 data services revenue growth of 11% YoY/5% QoQ was ahead of est. However, data biz margin down 4.6ppt YoY with Ebitda down 4% YoY/up 4% QoQ Data biz a/cs for 79% of rev & 89% of Ebitda.

JEFFERIES ON POLYCAB: Maintain a buy TP- Rs 3,325 Q2 operational beat vs estimate, led by a higher margin, margin at 12.8% rose both YoY & QoQ, driven by strong growth in exports

CLSA ON TATA COM: O-P, TP Rs 1433 2QFY23 data services revenue growth of 11% YoY/5% QoQ was ahead of est. However, data biz margin down 4.6ppt YoY with Ebitda down 4% YoY/up 4% QoQ Data biz a/cs for 79% of rev & 89% of Ebitda

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Bharat Electronics: The company signed an MoU with defence PSU Munitions India to jointly address the requirements of Indian defence and export markets in the areas of ammunition, explosives and related systems.

Adani Enterprises: Adani Defence & Aerospace, a subsidiary of the company, signed a definitive agreement to acquire MRO company Air Works for Rs 400 crore.

Reliance Industries/Bharti Airtel/Vodafone Idea: Reliance Jio replaced BSNL to become the largest fixed-line operator in the country, the first private player to do so, according to TRAI subscriber data for August. Reliance Jio and Bharti Airtel added new telecom subscribers, whereas Vodafone Idea lost subscribers during the month.

Brightcom Group: The company Peshwa Acharya and Narayana Raju to consummate the final transaction closure with Daum Corporation to complete the outstanding Lycos deal after being apprised of the process followed and the final settlement terms.

ITC: The company entered into an agreement to acquire additional 1,000 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh, taking its shareholding to 22%.

Polycab India: The board considered and approved the merger of subsidiary Silvan Innovation Labs with the company.

Harsha Engineers International: The company issued a letter of intent to Clean Max Enviro Energy Solutions for setting up hybrid power project with a configuration of wind turbine generator of 2.7 MW along with 0.675 MW solar power plant at Pipaliya, Gujarat.

Suven Life Sciences: The board approved the issue opening and closing dates—Oct. 31, 2022 and Nov. 10, 2022, respectively—for the upcoming rights issue of the company

Prestige Estate Projects: Q2 operational updates (YoY) – The company registered sales of Rs 3,511 crore, up 66% – Collections increased 68% to Rs 2,602.9 crore – The company sold 36 units per day.

Source: Moneycontrol, Bloomberg Quint, Investing

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