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

Most Asian stocks fell early Monday as traders weighed inflation risks, a Covid-19 outbreak in China and earnings prospects for major technology firms. Turkey’s lira slid to a record low amid a diplomatic spat. Equities fell in Japan and South Korea, while Australia edged up. S&P 500 and Nasdaq 100 futures dipped, the 10-year U.S. Treasury yield rose and a gauge of the dollar was steady. Federal Reserve Chair Jerome Powell on Friday flagged inflation could stay higher for longer, while making clear the Fed will begin tapering bond purchases shortly but stay patient on rate hikes. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, was little changed at 18,155, as of 8:10 a.m.

Economic Calender:

  • INR:  Federal Fiscal Deficit (Sept) on 29thOctober, 2021.
  • USD: New Home Sales (Sep) on 26th October, 2021
  • USD: Core Durables Goods Orders (MoM) (Sept) on 27th October,, 2021.

Earnings: Tech Mahindra, Colgate-Palmolive (India), Indus Towers, Kansai Nerolac Paints, Aditya Birla Sun Life AMC, Coforge, CEAT, CSB Bank, Gujarat Mineral Development Corporation, HDFC Asset Management Company, Home First Finance Company India, ICRA, Jagran Prakashan, Newgen Software Technologies, Orient Cement, The Ramco Cements, SRF.

Results:

RIL Q2FY22 (Consolidated, QoQ): Revenue up 20% at Rs 1,67,611 crore Vs Rs 1,39,949 crore Net profit up 11.50% at Rs 13,680 crore Vs Rs 12,273 crore.

ICICI Bank Q2FY22 (Consolidated): The private sector lender on Saturday reported its highest ever quarterly net profit of ₹5,511 crore for Q2FY22, an increase of 30% year-on-year. Profits rose on the back of a 19% growth in its domestic loan portfolio. Net non-performing assets fell below 1%, the lowest since 2014. Advances rose 17% year-on-year and 4% sequentially to ₹7,64,937 crore as on 30 September

Tata Consumer Products Q2FY22 (Consolidated, QoQ): Revenue up 1% at Rs 3,033.12 crore Vs Rs 3,008.46 crore.  Net profit up 9% to Rs 261.39 crore Vs Rs 240.65 crore. Ebitda up 3% to Rs 413.3 crore Vs Rs 399.5 crore. Margins at 13.6% Vs 13.3% .

Tata Elxsi Q2FY22 (Consolidated, YoY): Revenue up 38% at Rs 595.33 crore Vs Rs 430.17 crore Net profit up 59% at Rs 125.33 crore Vs Rs 78.87 crore Ebitda up 56% at Rs 183.63 crore Vs Rs 118.04 crore Margin at 30.8% Vs 27.4%.

International Markets:

U.S & Europe

Particulars 22nd Oct Chg Chg(%)
Nasdaq 15090.20 -125.50 -0.82
Dow 35677.02 73.94 0.21
FTSE 7204.55 14.25 0.20
CAC 6733.69 47.52 0.71
DAX 15542.98 70.42 0.46
Dow Fut.* 35518.00 -39.00 -0.11

Asian markets:

Particulars 25th Oct Chg Chg(%)
SGX Nifty 18155.50 11.00 0.06
Nikkei 28520.35 -284.50 -0.99
Straits Times 3203.03 -2.11 -0.07
Hang Seng 26111.68 -15.25 -0.06
Shanghai 3588.53 5.93 0.17

ADR Watch:

Particulars 22ndOct Chg Chg(%)
Dr Reddy 61.23 -0.32 -0.52
HDFC Bank 77.36 -0.34 -0.44
ICICI Bank 20.04 -0.05 -0.25
Infosys 23.11 -0.30 -1.28
Tata Motor 32.15 -1.42 -4.23
Wipro 9.49 -0.14 -1.45

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.89 0.0
Brent 85.41 0.91
Gold 1795.05 -0.07
Silver 24.427 -0.09

 

FIIs & DII

Particulars 22nd Oct 21st Oct
FIIs -2697.70 -2818.90
DIIs 1029.97 428.45

Brokerage Radar:

CLSA ON RELIANCE IND: Maintain buy at the price of Rs 2627 for the target price of Rs 2820. Q2 Standalone & Cons EBITDA/EBIT/PAT 3 5% ahead of estimates. 02C miss & higher Jio int costs offset by beat in retail, higher upstream. Raise EPS estimates by 3-5%. Raise EV for reliance retail to $120 Bn+. Include $10 Bn+ value accretion for new energy.

GS ON ICICI BANK: Maintain buy at the price of Rs 759 for the target price of Rs 829. PAT In-line; underlying quality & future visibility better. Increase FY22-24 profit estimates by up to 5%. Bank delivered a return on assets of 1.8% this qtr. Set to achieve RoA at closer to 2% & ROE of 16.5% over FY23-25.

News Update:

Nalco: The company’s Lean Slurry Project at Angul was inaugurated on October 20. The project will help in 100% utilization of ash generated at the company’s captive power plant.

Zee: India Court to Give Verdict on Zee-Invesco Case on Oct. 26.

SBI Cards and Payment Services: Board to meet on Oct. 28 to consider issuance of Rs 2,000 crore worth NCDs..

Petronet LNG: India to press Qatar for past LNG cargoes with contract renewal.

Apollo Tyres: The company has introduced its European tyre brand Vredestein in the country to cater to premium cars and superbike segments.

Asian Paints: A whistle-blower has flagged off related party transactions carried out by the promoters of the paint maker that allegedly benefited them at the cost of the company’s shareholders, a report said.

Hindustan Zinc: The metal manufacturer posted a near 4 percent rise in its net profit for the September quarter on the back of higher revenue from operations.

NBFCs: The Reserve Bank of India on Friday announced a limit on non-bank lenders financing subscriptions to initial share sales to stem the flow of large amounts of borrowed capital by high net worth individuals to such offerings. There shall be a ceiling of ₹1 crore per borrower for financing subscription to initial public offer (IPO), the central bank said.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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