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

Asian stocks Wednesday tracked a U.S. rally as a focus on corporate earnings helped ease some of the concerns over inflationary pressures in the global economy. Bond yields jumped. Equities rose in Japan, South Korea and Australia. U.S. futures were steady with the S&P 500 close to a record as traders digest company reports to assess the impact of supply-chain snarls and higher commodity prices. Johnson & Johnson raised a profit forecast, Netflix Inc. subscribers jumped and Procter & Gamble Co. faced rising raw material and freight costs. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.44% to 18,567 as of 8:10 a.m.

Economic Calender:

  • INR:  M3 Money Supply on 20th October, 2021.
  • INR:  Bank Loan & Deposit Growth on 22nd October, 2021.
  • USD: Crude Oil Inventories on 20th October, 2021
  • USD: Initial Jobless Claims on 21st October, 2021.

Earnings: Jubilant FoodWorks, Just Dial, Tata Communications, Hathway Cable & Datacom, Angel Broking, Havells India, L&T Finance Holdings, Reliance Industrial Infrastructure, Shoppers Stop, Supreme Petrochem, Syngene International, TajGVK Hotels & Resorts, Tata Steel Long Products, Tejas Networks.

Results:

Nestle Q3CY21 (QoQ): Revenue up 9.6% at Rs 3,882.57 crore Vs Rs 3,541.7 crore Net profit up 5.2% at Rs 617.37 crore Vs Rs 587.09 crore Ebitda up 7.3% at Rs 947.99 crore Vs Rs 883.59 crore Margin at 24.4% vs 24.9%.

ICICI Prudential Life Insurance Company Q2FY22 (Consolidated, QoQ): Revenue up 38.3% at Rs 23,129.4 crore Vs 16,724.1 crore. Net profit of Rs 445.6 crore Vs Net loss of Rs 185.3 crore. Ebitda gain of Rs 475.7 crore Vs Ebitda loss of Rs 215.4. EPS at Rs 3.10 Vs Rs -1.29.

ACC Q3CY21 (Consolidated, QoQ): Revenue down 3.5% at Rs 3,749 crore Vs Rs 3,884.9 crore (BBG estimate: Rs 3,703 crore) Net profit down 20.9% at Rs 450.2 crore Vs Rs 569.4 crore (BBG estimate: Rs 420 crore) Ebitda down 18.1% at Rs 712.3 crore Vs Rs 869.3 crore (BBG estimate: Rs 659 crore) Margin at 18.9% Vs 22.3% (BBG estimate: 18.2%).

ICICI Securities Q2FY22 (Consolidated, YoY): Revenue up 26% at Rs 856.37 crore Vs Rs 680.68 crore Net profit up 26% at Rs 351.24 crore Vs Rs 278.15 crore Ebitda up 31% at Rs 543.58 crore Vs Rs 414.08 crore Margin 63.5% Vs 60.8% To pay interim dividend of Rs 11.25 per share.

Brokerage Radar:

CLSA ON NESTLE INDIA: Maintain outperform at the price of Rs 19406.55 for the target price of Rs 19500. Q3 weaker than expected, with sales, EBITDA & PAT up 10/6/3% YoY. Inflation hindered gross margin 240 bps YoY to 55.5%. Estimate volume growth of 7-8% YoY.

GOLDMAN SACHS ON HUL: Maintain neutral at the price of Rs 2557.30 for the target price of Rs 2167. Earnings in-line but flags risks to rural demand & inflationary pressure. Expect 4% volume & 10% revenue growth in q3fy22. Lower their FY22-24 EPS est. by <1%.

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   20th 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     19th Oct 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 84.42 -0.78
Gold 1773.85 0.19
Silver 23.793 -0.38

FIIs & DII

Particulars         19th Oct         18th Oct
FIIs -505.79 512.44
DIIs -2578.22 -1703.87

News Update:

Bajaj Finserv: Incorporated an asset management company called Bajaj Finserv Asset Management on October 18. It will manage various mutual fund plans. The company has been incorporated with an authorised share capital of Rs 60 crore and an initial subscribed capital of Rs 5 lakh.

Deepak Fertilisers & Petrochemicals Corporation: The company launched a qualified institutional placement issue on October 19 and approved the floor price for the same at Rs 422.48 per equity share.

Reliance Industries: Reliance Retail has bought majority stake in Ritu Kumar’s Ritika Pvt.

HCL Technologies: The company and Innovaccer Inc. have collaborated to help healthcare and life sciences organizations drive digital health transformation.

Jindal Saw: The company has won contract for repair and maintenance of manufacturing facilities of Sathavahana Ispat.

Astral: The company has decided to enter in the business verticals of faucets and sanitaryware as a part of its growth strategy.

HDFC Asset Management Company: Chief Financial Officer Piyush Surana has resigned from the post. He will be relieved from the duties w.e.f. close of business hours on January 31, 2022.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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