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

Asian stocks rose Tuesday after a record S&P 500 close as corporate earnings and progress on President Joe Biden’s economic agenda helped sentiment even as the debate over inflation risks intensified. Equities were up in Japan, Australia and South Korea. U.S. futures advanced, with Nasdaq 100 contracts outperforming, which led U.S. gains overnight amid a Tesla Inc. rally to a $1 trillion market value. Facebook Inc. was higher in late trading on strong user growth and a pledge to buy back as much as $50 billion more in stock. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.20% to 18,177.00, as of 8:00 a.m.

Economic Calender:

  • INR:  Federal Fiscal Deficit (Sept) on 29thOctober, 2021.
  • INR: Infrastructure Output (YoY)  (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: Axis Bank, Kotak Mahindra Bank, Cipla, Bajaj Finance, Ambuja Cements, ABB India, Birlasoft, IRB Infrastructure Developers, Dr. Lal PathLabs, Torrent Pharmaceuticals, Canara Bank, Central Bank of India, Nippon Life India Asset Management, Persistent Systems, PI Industries, Jindal Stainless, Mahanagar Gas, Authum Investment & Infrastructure, Mangalore Refinery & Petrochemicals, Wabco India, Sanofi India, Symphony, Zensar Technologies, Gati, Best Agrolife, Greaves Cotton, Greenlam Industries, Hikal, Indo Count Industries, Mahindra Lifespace Developers, Triveni Turbine, Meghmani Finechem, Meghmani Organics, Ramco Industries, Surya Roshni.

Results:

Tech Mahindra Q2FY22 (Consolidated, QoQ): Revenue up 7% at Rs 10,881.30 crore Vs Rs 10,197.60 crore. Net profit down 1% at Rs 1,338.70 crore Vs Rs 1,353.20. Ebit up 7% at Rs 1,652.20 crore Vs Rs 1,545.30 crore. Margin at 15.18% Vs 15.15%. Revenue up 6.4% at $1,472.6 million Vs $1,383.

Indus Towers Q2FY22 (Consolidated, QoQ): Revenue up 1% at Rs 6,876.5 crore Vs Rs 6,797 crore. Net profit up 10% at Rs 1,558.50 crore Vs Rs 1,415.30 crore. Ebitda up 3% at Rs 3,640.50 crore Vs Rs 3,528.50 crore Margin at 52.9% Vs 51.9%.

Ceat Q2FY22 (Consolidated, YoY): Revenue up 24% at Rs 2,451.78 crore Vs Rs 1,978.47 crore. Net profit down 77% at Rs 41.98 crore Vs Rs 181.86 crore. Ebitda down 25% at Rs 220.33 crore Vs Rs 292.46 crore Margin 9% Vs 14.8% Approved up to Rs 500 Cr bonds issue.

Brokerage Radar:

CLSA ON TECH MAHINDRA: Maintain outperform at the price of Rs 1524 for the target price of Rs 1720 (Previous Target- Rs 1600). Well-rounded Q2 that carried forward momentum from Q1. Raise FY22/23 EPS estimates by 1.4%/1.9%. Risk-reward is favorable despite a 35% rally in last 3 months.

CREDIT SUISSE ON COLGATE: Maintain outperform at the price of Rs 1532 for the target price of Rs 1750. Muted growth with some margin headwinds. Cut FY22-24 earnings by 5% to build in lower gross margin. Volume growth is likely to have been 4% which is a steady performance. Price growth at 1% was below expectations.

International Markets:

U.S & Europe

Particulars 25th Oct Chg Chg(%)
Nasdaq 15,226.71 136.51 0.90
Dow 35,741.15 64.13 0.18
FTSE 7,222.82 18.27 0.25
CAC 6,712.87 -20.82 -0.31
DAX 15,599.23 56.25 0.36
Dow Fut.* 35,669.00 49.00 0.14

Asian markets:

Particulars 26th Oct Chg Chg(%)
SGX Nifty 18,177.00 36.00 0.20
Nikkei 29,104.37 503.96 1.76
Straits Times 3,191.24 -10.62 -0.33
Hang Seng 26,111.14 -20.89 -0.08
Shanghai 3,615.32 5.46 0.15

ADR Watch:

Particulars 25th Oct 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 75.08 0.25
Brent 85.29  0.15
Gold 1805.66 -0.01
Silver 24.540 -0.22

FIIs & DII

Particulars 25th Oct 22nd Oct
FIIs -2459.10 -2697.70
DIIs 2390.23 1029.97

News Update:

Adani Total Gas: The Company’s board will consider on October 28 a proposal to raise funds via a medium-term note program of as much as $750 million, or its equivalent in any currency, in one or more tranches. The initial issuance will be as much as $300 million.

Bharti Airtel: To avail the option of deferment of the payment of spectrum auction instalments due up to four years. The company has also sought deferment of AGR related dues by four years with immediate effect. It will consider other option offered by Department of Telecommunications within the stipulated timelines.

Quess Corp: The Company has raised stake in Stellarslog Technovation to 36.58%.

HDFC Bank: Competition Commission of India approved HDFC Bank’s acquisition of 4.99 percent shareholding in HDFC ERGO General Insurance Company.

Tata Motors: The Company’s arm Jaguar Land Rover is being forced to resort to production cut in the current quarter as well due to continued shortage of semiconductors across the world, a report said.

National Stock Exchange: NSE is in advanced talks with Singapore Exchange for a revenue-sharing agreement on trades in Nifty derivatives contracts, as per a report.

JSW Steel: Sajjan Jindal-led JSW Steel plans to set up a colour coated steel facility in Pulwama district in Kashmir at a total investment of ₹150 crore.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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