View on market: Stay Cautious, be with quality business:
Asian stocks were steady Wednesday as traders mulled another all-time high for U.S. equities and a retreat in short-term sovereign yields ahead of the Federal Reserve policy decision. Stability in iron-ore prices bolstered commodity-exporter Australia, while shares in China and Hong Kong fluctuated. Japan is shut for a holiday. S&P 500 and Nasdaq 100 futures were little changed following fresh peaks for U.S. shares. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.13% to 17,943, as of 8:10 a.m.
Economic Calender:
- INR: Nikkei Service PMI (Oct) on 3rd November, 2021.
- INR: Bank Loan and Deposit Growth on 5th November, 2021.
- USD: Fed Interest Rate Decision on 03rd November, 2021.
- USD: Initial Jobless Claims on 04th November, 2021.
Earnings: State Bank of India, Eicher Motors, Aditya Birla Fashion and Retail, Bata India, Centrum Capital, Grindwell Norton, Gujarat State Petronet, Gujarat Alkalies & Chemicals, Gufic Biosciences, Pfizer, Rattanindia Enterprises, RattanIndia Power, Uflex.
Results:
Bharti Airtel Q2FY22 (Consolidated, QoQ): Revenue up 5.5% at Rs 28,326.4 cr Vs Rs 26,853.6 crore. Net profit up 4 times at Rs 1,134 crore Vs Rs 283.5 crore. Ebitda up 6.3% at Rs 14,018 crore Vs Rs 13,189 crore. Margins at 49.5% Vs 49.1%.
PNB Housing Finance Q2FY22 (Consolidated, YoY): NII down 19% at Rs 548.54 crore Vs Rs 675.84 crore Net profit down 25% at Rs 235.21 crore Vs Rs 313.29 crore Net interest margin at 3% Vs 3.5% Gross margin, net of acquisition cost, at 3.3% Vs 3.5% Disbursements stood at Rs 2,961 crore compared to Rs 2,444 crore Asset under Management degrew by 3% QoQ at Rs 69,810 crore.
Brokerage Radar:
CLSA ON SUN PHARMA: Maintain buy at the price of Rs 815 for the target price of Rs 1050. Specialty ramp-up on track & earnings upgrades continue. Another quarterly margin surprise drives a Q2 result beat. Well placed to boost specialty sales & achieve EBITDA breakeven in FY23. Raise earnings estimates 4-11% over 22-24.
JEFFERIES ON BHARTI AIRTEL: Maintain buy at the price of Rs 714 for the target price of Rs 860. Revenue/EBITDA in-line while profit beat estimates. Mobile ARPU missed estimate, lower than expected churn offset this. Subscriber mix improved further, a reflection of its network investments. Homes & enterprise segments also surprised positively.
International Markets:
U.S & Europe
| Particulars | 2ndNov | Chg | Chg(%) |
| Nasdaq | 15,649.60 | 53.68 | 0.34 |
| Dow | 36,052.63 | 138.79 | 0.39 |
| FTSE | 7,274.81 | -13.81 | -0.19 |
| CAC | 6,927.03 | 33.74 | 0.49 |
| DAX | 15,954.45 | 148.16 | 0.94 |
| Dow Fut.* | 35,911.00 | -27.00 | -0.08 |
Asian markets:
| Particulars | 2rdNov | Chg | Chg(%) |
| SGX Nifty | 17,943.00 | 22.50 | 0.13 |
| Nikkei | 29,520.90 | -126.18 | -0.43 |
| Straits Times | 3,227.80 | -4.57 | -0.14 |
| Hang Seng | 24,936.28 | -163.39 | -0.65 |
| Shanghai | 3,495.27 | -10.36 | -0.30 |
ADR Watch:
| Particulars | 2ndNov | Chg | Chg(%) |
| Dr Reddy | 63.38 | -0.18 | -0.28 |
| HDFC Bank | 72.06 | -0.79 | -1.08 |
| ICICI Bank | 21.18 | -0.10 | -0.47 |
| Infosys | 22.66 | 0.19 | 0.85 |
| Tata Motor | 31.77 | -1.76 | -5.25 |
| Wipro | 9.05 | 0.08 | 0.89 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.68 | -0.25 |
| Brent | 83.51 | -1.42 |
| Gold | 1781.15 | -0.46 |
| Silver | 23.462 | -0.20 |
FIIs & DII
| Particulars | 2nd Nov | 1st Nov |
| FIIs | 244.87 | -202.13 |
| DIIs | -6.00 | 116.01 |
News Update:
M&M Financial Services: With opening of the economy and customer cashflow improving on account of mobility, festival and harvest, the company expects gradual reduction in Stage 3 and Stage 2 to continue in the months to come. The company witnessed visible trends of sequential improvement in Stage 2 while Stage 3 was range-bound. October collection efficiency at 91% was higher than than 89% in the year-ago month, but lower compared with the second quarter ended September 30. Disbursements rose 20% YoY to Rs 2,650 crore.
HDFC Life Insurance Company: CCI has approved acquisition of 100% shareholding in Exide Life Insurance Company by HDFC Life Insurance Company.
Poonawalla Fincorp: Approved divestment of its direct and indirect shareholding in Magma HDI General Insurance to comply with IRDAI regulations. Sanoti Properties LLP will acquire the company’s stake in Magma HDI. The company will also divest its of 48.89% shareholding in Jaguar Advisory, which is a t venture partner in Magma HDI. The proposed transactions will result in a pre-tax profit of Rs 351.85 crore for PFL and sale of stake will result in an effective increase in Tier 1 capital adequacy ratio from 52.2% to 56.1%.
Adani Enterprises: Adani Defence Systems and Technologies, a wholly owned subsidiary of the company, has incorporated a unit Astraeus Services IFSC. The unit is incorporated with the object of leasing and managing of General Aviation aircraft
Minda Corporation: The company has signed an agreement to purchase 49% equity shares in Minda Stoneridge Instruments for Rs 161 crore. The agreement has been executed among Minda Corporation, Stoneridge Inc., USA and Minda Stoneridge Instruments.
Infosys: Infosys Finacle, a subsidiary of the company, and IBM have collaborated to help banks accelerate cloud transformation journeys. Finacle Digital Banking Solution Suite will be available on Red Hat OpenShift and IBM Cloud for financial services
Wipro: Company has partnered with TEOCO to develop next-generation network solutions for communication service providers. The partnership includes the establishment of a Center of Excellence.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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