View on market: Stay Cautious, be with quality business:
Asian stocks were steady Wednesday as traders weighed the latest U.S. earnings reports amid lingering concerns about growth risks from elevated inflation and China’s indebted property sector Equities fluctuated in Japan, South Korea and Australia. The S&P 500 eked out a record high, with United Parcel Service Inc. and General Electric Co. up on strong results. U.S. contracts ticked higher. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, shed 0.15% to 18,305.50, as of 8:00 a.m.
Key Data/ Action, Result, and Board meeting to watch
Major economic Data:
- INR: Federal Fiscal Deficit (Sept) on 29thOctober, 2021.
- INR: Infrastructure Output (YoY) (Sept) on 29thOctober, 2021.
- USD: Core Durables Goods Orders (MoM) (Sept) on 27th October, 2021.
Earnings to Watch:
Adani Ports And Sez, Larsen & Toubro, Maruti Suzuki India, Bajaj Auto, Titan Company, ITC, IndusInd Bank, Adani Enterprises, SBI Life Insurance Company, Indian Overseas Bank, Punjab National Bank, Lupin, United Breweries, United Spirits, Poonawalla Fincorp, Aegis Logistics, Balaji Amines, Cummins India, Happiest Minds Technologies, Tata Chemicals, Torrent Power, Dalmia Bharat, Deepak Nitrite, , Shriram City Union Finance, Aarti Drugs, Apollo Tricoat Tubes, Arvind, Asahi India Glass, Astec Lifesciences, Greenpanel Industries, KEC International, KEI Industries, Welspun India, HIL, IIFL Finance, IIFL Wealth Management, Oracle Financial Services Software, Lakshmi Machine Works, India Grid Trust, KPR Mill, JK Paper, Mahindra Logistics, MAS Financial Services, MMTC, Phillips Carbon Black, Praj Industries, PSP Projects, Raymond, Reliance Power, Sagar Cements, SIS, SKF India, Sona BLW Precision Forgings, Tube Investments of India, TTK Prestige, Vaibhav Global, Vardhman Textiles
Results:
Axis Bank Q2FY22: Net profit up 86% at Rs 3,133.32 crore Vs Rs 1,683 crore. (YoY) (Bloomberg estimate: Rs 2,649.6 crore) NII up 8% at Rs 7,900 crore Vs Rs 7,326 crore (YoY) Gross NPA ratio at 3.53% Vs 3.85% (QoQ) Net NPA ratio at 1.08% Vs 1.20% (QoQ)
Cipla Q2FY22 (Consolidated, QoQ): Revenue up 0.28% at Rs 5,519.8 crore Vs Rs 5,504.4 crore (BBG estimate: Rs 5,245.5 crore) Net profit down 0.47% at Rs 711.4 crore Vs Rs 714.7 crore (BBG estimate: Rs 701.2 crore profit) Ebitda down 9% at Rs 1,226.2 crore Vs Rs 1,345.9 crore (BBG estimate: Rs 1.187.7 crore) Margins at 22.2% Vs 24.5% (BBG estimate: 22.6%) Not to proceed ahead with the scheme of arrangement. To examine transfer of India based U.S. business to Cipla BioTec and its consumer business undertaking to Cipla Health by way of a more efficient option.
Bajaj Finance Q2FY22 (Consolidated): Net profit up 53.4% at Rs 1,481 crore Vs Rs 965 crore (YoY) NII up 28% at Rs 5,335 crore Vs Rs 4,162 crore (YoY) GNPA at 2.45% Vs 2.96% (QoQ) NNPA at 1.10% Vs 1.46% (QoQ)
Ambuja Cements Q3CY21 (Consolidated, YoY): Revenue up 8% at Rs 6,647.13 crore Vs Rs 6,169.47 crore Net profit up 11% at Rs 890.67 crore Vs Rs 803.50 crore Ebitda up 5% at Rs 1,416.34 crore Vs Rs 1,349.62 crore Margin at 21.3% Vs 21.9%
International Markets:
U.S & Europe
| Particulars | 26th Oct. | Chg | Chg(%) |
| Nasdaq | 15,235.72 | 9.01 | 0.06 |
| Dow | 35756.88 | 15.73 | 0.44 |
| FTSE | 7,277.62 | 54.8 | 0.76 |
| CAC | 6,766.51 | 53.64 | 0.8 |
| DAX | 15,757.06 | 157.83 | 1.01 |
| Dow Fut.* | 35,630.00 | -15 | -0.04 |
Asian markets:
| Particulars | 27th Oct. | Chg | Chg(%) |
| SGX Nifty | 18,287.50 | -46 | -0.25 |
| Nikkei | 28946.61 | -159.4 | -0.55 |
| Straits Times | 3,217.15 | 12.58 | 0.39 |
| Hang Seng | 25,657.69 | -380.58 | -1.46 |
| Shanghai | 3,572.96 | -24.68 | -0.69 |
ADR Watch:
| Particulars | 26th Oct. | Chg | Chg(%) |
| Dr Reddy | 61.6 | -0.13 | -0.21 |
| HDFC Bank | 75.7 | -0.98 | -1.28 |
| ICICI Bank | 21.7 | -0.17 | -0.78 |
| Infosys | 22.69 | -0.24 | -1.05 |
| Tata Motor | 33.17 | 0.97 | 3.01 |
| Wipro | 9.19 | -0.09 | -0.97 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.96 | -0.16 |
| Brent | 85.17 | -0.55 |
| Gold | 1,790.15 | -0.18 |
| Silver | 24.07 | -0.06 |
FIIs & DII
| Particulars | 26th Oct. | 25th Oct. |
| FIIs | -2,368.66 | -2,459.10 |
| DIIs | 1,385.41 | 2,390.23 |
Brokerage Radar:
CLSA on Axis Bank: Maintain Buy with Target Price of Rs. 1080, Strong Asset Quality but weak PPoP Cut PPoP Estimates by 2-4%, but Profit Estimates remain unchanged Have legged Peers on Loan & PPoP growth
Morgan Stanley on Bajaj Finance: Maintain Buy with Target Price of Rs. 9060, A Earnings momentum is set up to pick up significantly Decibels around new initiatives will also rise from here valuation is not cheap but stocks seldom pause against such a backdrop
News Update:
IDFC: IDFC Financial Holding Company writes to IDFC First Bank informing it on value unlocking plans. IDFC Financial Holding Company holds 36.50% equity in IDFC First Bank. Five-year lock-in period for IDFC Ltd as promoter of the bank ended on September 30, 2020. Post this, RBI has clarified that IDFC Ltd can exit as the promoter of IDFC First Bank.
Union Bank of India: The bank has cut home loan rate to 6.4% for festive season. New rate to be effective from October 27. New rate applicable for new home purchases as well as balance transfers from other lenders. Home loan rate cut as the bank is seeing rising demand from customers. Union Bank of India home loan rate is now the most competitive in the industry
Quick Heal Technologies: Appointed Navin Sharma as Chief Financial Officer of the company.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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