View on market: Stay Cautious, be with quality business:
Most Asian stocks fell Thursday amid concerns that the recovery from the pandemic will slow as elevated inflation forces tighter monetary policy. A gauge of the dollar ticked up. Shares slipped in Japan & Australia & were little changed in South Korea. U.S. futures rose after the tech-heavy Nasdaq 100 touched an intraday record. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, was little changed at 18,227, as of 7:45 a.m.
Economic Calender:
- INR: Federal Fiscal Deficit (Sept) on 29thOctober, 2021.
- INR: Infrastructure Output (YoY) (Sept) on 29thOctober, 2021.
- USD: Initial Jobless Claims on 28th October,, 2021.
- USD: Pending Home Sales (MoM) (Sep) on 28th October,, 2021.
Earnings: Bajaj Finserv, InterGlobe Aviation, SBI Cards and Payment Services, Adani Green Energy, Adani Total Gas, NTPC, DLF, Tata Power, Marico, Bajaj Holdings & Investment, Gujarat Gas, Schaeffler India, AU Small Finance Bank, Indian Bank, Laurus Labs, Mahindra & Mahindra Financial Services, RBL Bank, Uco Bank, Motilal Oswal Financial Services, Infibeam Avenues, Edelweiss Financial Services, AAVAS Financiers, APL Apollo Tubes, Blue Star, GMM Pfaudler, JM Financial, Jindal Stainless (Hisar), JSW Holdings, Intellect Design Arena, CarTrade Tech, CCL Products (India), Chalet Hotels, Coromandel International, Fairchem Organics, GHCL, Gujarat Narmada Valley Fertilizers & Chemicals, Gujarat State Fertilizers & Chemicals, Hester Biosciences, Ion Exchange (India), Johnson Controls-Hitachi Air Conditioning India, JK Tyre & Industries, Kirloskar Oil Engines. Shree Renuka Sugars, Responsive Industries, Subex, Sudarshan Chemical Industries, Transport Corporation Of India, UTI Asset Management Company, Valiant Organics, V-Guard Industries, Welspun Corp, Welspun Enterprises, Westlife Development.
Results:
L&T Q2FY22 (Consolidated, QoQ): Revenue up 18.5% at Rs 34,772.9 crore Vs Rs 29,334.73 crore Net profit up 54.92% at Rs 1,819.45 crore Vs Rs 1,174.44 crore Ebitda up 25.9% at Rs 3,994.87 crore Vs Rs 3,171.49 crore Margins at 11.5% Vs 10.8% Order inflow guidance of low-to-mid teens for FY22 Order book grew 11.3% to Rs 3.3 lakh crore Net working capital at 22% at the end of Sept-end compared to 26% YoY, 22.7% in Q1 Tendering activity picked up pace in Q2 Vs Q1. Tenders worth Rs 2 lakh crore were issued and awards stood at Rs 86,000 crore The pace of tenders is expected to pick-up into Q3.
ITC Q2FY22 (Consolidated, QoQ): Revenue up 13% at Rs 14,844 crore Vs Rs 13,147.81 crore. Net profit up 6% at Rs 3,713.76 crore Vs Rs 3,519.31 crore. Ebitda up 14% at Rs 5,017.6 crore Vs Rs 4,401 crore. Margins at 33.8% Vs 33.47%.
Punjab National Bank Q2FY22: NII down 24% at Rs 6,549.61 crore Vs Rs 8,620.75 crore (YoY) Net profit up 1.20 times at Rs 1,200.12 crore Vs Rs 544.66 crore (YoY) GNPA at 13.63% Vs 14.33% (QoQ) NNPA 5.49% Vs 5.84% (QoQ)
International Markets:
U.S & Europe
| Particulars | 27thOct | Chg | Chg(%) |
| Nasdaq | 15,235.84 | 0.12 | 0.00 |
| Dow | 35,490.69 | -266.19 | -0.74 |
| FTSE | 7,253.27 | -24.35 | -0.33 |
| CAC | 6,753.52 | -12.99 | -0.19 |
| DAX | 15,705.81 | -51.25 | -0.33 |
| Dow Fut.* | 35,446.00 | 57.00 | 0.16 |
Asian markets:
| Particulars | 28th Oct | Chg | Chg(%) |
| SGX Nifty | 18,227.00 | 15.50 | 0.09 |
| Nikkei | 28,872.71 | -225.53 | -0.78 |
| Straits Times | 3,216.09 | -2.08 | -0.06 |
| Hang Seng | 25,655.79 | 27.05 | 0.11 |
| Shanghai | 3,535.17 | -27.14 | -0.76 |
ADR Watch:
| Particulars | 27th Oct | Chg | Chg(%) |
| Dr Reddy | 61.31 | -0.29 | -0.47 |
| HDFC Bank | 75.11 | -0.59 | -0.78 |
| ICICI Bank | 21.72 | 0.02 | 0.09 |
| Infosys | 22.55 | -0.14 | -0.62 |
| Tata Motor | 32.36 | -0.81 | -2.44 |
| Wipro | 9.17 | -0.02 | -0.22 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.03 | 0.09 |
| Brent | 82.01 | -2.22 |
| Gold | 1801.55 | 0.16 |
| Silver | 24.137 | -0.22 |
FIIs & DII
| Particulars | 27th Oct | 26th Oct |
| FIIs | -1913.36 | -2368.66 |
| DIIs | 472.48 | 1385.41 |
Brokerage Radar:
JEFFERIES ON ITC: Maintain buy at the price of Rs 238 for the target price of Rs 300. Cigarette volumes a bit lower which was offset by better margin. Exit volumes are close to pre- covid level, a positive. FMCG expectedly slowed down, partially due to base issue. Paperboard continued to see strong YoY growth. Budget a key event, given expert panel deciding on tobacco taxation.
CREDIT SUISSE ON L&T: Maintain outperform at the price of Rs 1785 for the target price of Rs 2220. Strong results with strong inflows & improved margin in a tough time. Pro-cyclically poised for strong traction on multiple parameters. Upside could originate from lower interest cost, margin, and strong execution.
News Update:
Future Retail: The company has approached the Delhi High Court against the Singapore-based arbitral tribunal’s order which declined to vacate the status quo on its Rs 27,513-crore transaction with Reliance Retail Ltd. The company in its appeal has sought staying and setting aside the operation of the arbitral tribunal’s order upholding the status quo on the transaction and alternatively, allowing it to conduct the meeting of the shareholders and creditors as directed by the NCLT Mumbai earlier this month.
Jubilant FoodWorks: To acquire 35% stake in Hashtag Loyalty Pvt Ltd for Rs 24.75 crore. The acquisition is expected to be completed within 60 days from execution of share subscription agreement and share purchase agreement.
Zomato: Zomato Ireland (Lebanon Branch) will shut down operations from December 15, 2021.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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