Market View 1st November 2022

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

Asian stocks inched up in trading on Tuesday amid higher bond yields and investor focus on central bank decisions and further interest rate hikes. Equities gained little in Japan, South Korea and Australia while futures for Hong Kong climbed. Meanwhile, US-listed Chinese stocks fell and the S&P 500 declined, dragged down by big tech. Australian bond yields advanced ahead of a projected 25-basis-points rate hike by the central bank later Tuesday. U.S. stocks declined as traders wait for the U.S. Federal Reserve’s meeting on Wednesday. Meanwhile, bond yields surged, with 10-year Treasuries rising 8 basis points to 4.09%. The S&P 500 fell 0.8%, while the tech-heavy Nasdaq 100 fell 1.3%. Oil fell 1.8%; as gold also tumbled 0.5%. Bitcoin fell 1.5% to trade around $20,400-level. Domestic benchmarks gauges rose for the second week in a row, aided by gains in PSU banks, auto, energy and realty stocks, and as several companies released their results. Rupee closed near the day’s low against the U.S. dollar after depreciating 32 paise in the final hour. At 6:33 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — gained 0.20% to 18,096.5.

Economic Calendar:

• USD : JOLTs Job Openings (Sep) on 01st November, 2022
• USD : ISM Manufacturing PMI (Oct) on 01st November, 2022
• INR : Trade Balance on 01st November, 2022
• INR : Nikkei Services PMI (Oct) on 03^rd November, 2022

Q2FY23 Result Today: Adani Ports and Special Economic Zone, Tech Mahindra, UPL, Punjab National Bank, FSN E-Commerce Ventures (Nykaa), Karnataka Bank, LIC Housing Finance, Chambal Fertilisers & Chemicals, Cholamandalam Investment and Finance Company, CMS Info Systems, Dhanuka Agritech, JK Tyre & Industries, Kansai Nerolac Paints, Macrotech Developers, Tata Investment Corporation, Varun Beverages, Voltas, Whirlpool of India

Brokerage Radar:

CS ON L&T: O-P, TP Rs 2250; Stronger traction on domestic execution & inflows bode well; Reiterate O-P; 1) cyclical benefits; 2) progress on divestment of non-core assets; 3) risk reduction in projects, such as Hyderabad metro 4) reasonable vals

CLSA ON TATA STEEL: Downgrade to sell, TP cut to Rs 90 from Rs 110; 2QFY23 below estimates as weak India offset strong Europe; Expect Indian margins to improve but see meaningful downside to European profitability on lower spreads & contract revisions

JPM ON BHARTI: OW, TP raised to Rs 860; ARPU surprise led by premiumization & data consumption-led growth coming back; Co likely keep benefitting from premiumization & BS deleverage as FCF recovers

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

LIC Housing Finance: The Reserve Bank of India imposed a fine of Rs 35 lakh against the company over regulatory non-compliance.

GHCL: The board of the company approved acquisition of a specified business undertaking in the Junagarh district of Gujarat, as a going concern on a slump sale basis from Ajmera Cements for a lump sum consideration of Rs 27 crore. The board also approved liquidation of U.S.-based subsidiary Grace Home Fashions LLC, and additional capex for roof top solar power project of 5 MW in yarn division of the company.

Trident: Approved the put option exercised by Standard Chartered Bank against its NCDs, amounting to a payout of Rs 93.75 crore.

Cyient: The board of the company and its wholly owned subsidiary, Cyient DLM, have accorded approval for part-divestment of the latter, including but not Iimited to IPO.

Glenmark Pharmaceuticals: Launched Fingolimod capsules in 0.5 mg capacity in the U.S.

Zomato: The company will liquidate its Doha-based joint venture Zomato Media WLL with effect from Oct. 25. 2022.

Vakrangee: The RBI has imposed a penalty of Rs 1.76 crore on the company for non-compliance with certain provisions of the White Label ATM directions.

Source: Moneycontrol, Bloomberg Quint, Investing

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