Market View 31st October 2022

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

Asian stocks gained while US equity futures treaded lower at the start of the week as investors await interest rate decisions from central banks including the Federal Reserve. Shares climbed in Japan, South Korea and Australia, while contracts for Hong Kong advanced earlier after stocks on Wall Street rallied Friday. The U.S. Dollar made little advances against most major currencies, indicating a caution among traders. Meanwhile, U.S. stocks rose as Apple Inc.’s earnings report buoyed technology shares. Treasuries snapped a three-day rally as investors expect a further hike by the Federal Reserve. The S&P 500 and the tech-heavy Nasdaq 100 recorded their longest weekly rising streak since August as big tech companies like Microsoft Corp. and Google parent Alphabet Inc. gained. Elsewhere, oil rallied as U.S. fuel stockpiles dropped and exports rose to a record, pointing to a robust demand despite fears of a global slowdown. Gold fell and Bitcoin remained near $20,000. Back home, India’s stock benchmarks gained for second week in a row, aided by gains in PSU banks, auto, energy and realty stocks, amid a slew of the earnings. The local currency rose 22 paise. At 6:38 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — gained 1.08% to 18,028.

Economic Calendar:

• USD : JOLTs Job Openings (Sep) on 01st November, 2022
• USD : ISM Manufacturing PMI (Oct) on 01st November, 2022
• INR : Infrastructure Output (YoY) (Sep) on 31st October, 2022
• INR : Federal Fiscal Deficit (Sep) on 31st October, 2022

Q2FY23 Result Today: Tata Steel, Larsen & Toubro, Bharti Airtel, Supreme Industries, Motherson Sumi Wiring India, Castrol India, Timken India, Asahi India Glass, LT Foods, Data Patterns (India), Equitas Small Finance Bank, GHCL, Saregama India, TCI Express

Brokerage Radar:

MS ON DR REDDY: OW, TP Rs 5,099; Strong 2Q largely driven by gRevlimid, which should continue for next several qtrs.; Core biz is stabilizing; Co reiterated its near-to medium-term guidance of single-digit US biz growth; Potential gSuboxone competition a key biz risk

CS ON BANDHAN BK: O-P, TP Cut to Rs 330; 2Q: Weaker than expected; expectations on recovery in 2H; Cut FY23-25E EPS by 9-19% on lower NIMs & higher credit costs; Expect credit costs to moderate in 2H & as growth picks up, with stock at 1.6x FY24E P/B for 20%+ RoEs – maintain O-P

JEFFERIES ON MARUTI: Buy, TP Raised to Rs 12,000; Raise FY23-25E EPS by 3-8%; 2Q EBITDA rose 45% QoQ to 16-qtr-high; 2Q volumes were at all-time high while EBITDA/vehicle rose 31% QoQ on better gross margins.

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Hero MotoCorp: The two-wheeler manufacturer registered retail growth of 20% during the festive period this year over the corresponding period of last year.

Steel Authority of India: Signed an agreement with Airport Authority of India to facilitate commercial operations at Rourkela airport under RCS UDAN scheme.

Solar Industries: The board of the company will consider on Nov. 4 the offer, issue and allotment of unsecured redeemable NCDs of up to Rs 100 crore on private placement basis, in one or more tranches.

Tata Power: Appointed former finance secretary Rajiv Mehrishi as an independent director.

Astec Lifesciences: Appointed Madhur Gundecha as the Chief Financial Officer, with effect from Oct. 28, 2022.

Vedanta: The board approved the expansion of rolled product capacity at subsidiary Bharat Aluminium Company to 180 KTPA from existing 50 KTPA at a revised cost of Rs 595 crore, and expansion of its smelter capacity to 994 KTPA from existing capacity of 580 KTPA at a revised cost of Rs 8,094 crore.

Source: Moneycontrol, Bloomberg Quint, Investing

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