Market View 3rd November 2022

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

Asian stocks slumped after Jerome Powell said the Federal Reserve would raise interest rates more than previously anticipated, sapping risk appetite and sending global equities to their worst day in nearly a month. Benchmark equity gauges in Australia and South Korea fell in the wake of the S&P 500’s 2.5% drop. Bitcoin fell 0.2% to $20,140.8 Wheat prices fell by the most since the early weeks of the war in Ukraine after Russia reversed a decision to block shipments. Oil fell to unwind a recent rally. India benchmarks indices broke their rally to end lower, dragged by telecommunications and realty stocks ahead of the release of U.S. Federal Reserve’s policy statement. Rupee erased earlier gains against the U.S. dollar to close lower, hours before the Federal Reserve policy announcement.

Economic Calendar:

• USD : Initial Jobless Claims on 03rd November, 2022
• USD : ISM Non-Manufacturing PMI (Oct) on 03rd November, 2022
• INR : Interest Rate Decision on 03rd November, 2022
• INR : Trade Balance on 03rd November, 2022

Q2FY23 Result Today: HDFC, Hero MotoCorp, Hindustan Petroleum Corporation, Vodafone Idea, Adani Enterprises, Ajanta Pharma, Amara Raja Batteries, Adani Total Gas, Adani Wilmar, Bank of India, Blue Star, Coromandel International, Devyani International, Indian Bank, JK Lakshmi Cement, Raymond, SRF, and Welspun Corp

Brokerage Radar:

MS ON DALMIA BHARAT: OW, TP Rs 1850; Unlike many large peers, Dalmia reported broadly in-line EBITDA, which is +ve; Key highlight was slightly better realizations, offset by a tad lower vols; Opex broadly in line, given no -ve surprise on variable costs

CITI ON VLTAS: Buy, TP cut to Rs 1075; 2Q a mixed bag; Room AC market share trends were mixed; UCP EBIT margin at 7.3% was soft, due partially to high-cost inventory procured earlier & partially to competitive intensity; Pressure on margins should dissipate soon

JPM ON PNB: Maintain Underweight, TP Rs 34; Core fee-based income declined 32%; Gross slippages at 3%, moderated QoQ; Provisioning costs however remained elevated; High overall stress book relative to peers; Weak single–digit ROE profile keeps us cautious

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

JK Paper: Recorded its highest ever quarterly consolidated turnover of Rs 1,722.63 crore, a 72% growth compared to September FY22 quarter. EBITDA for the quarter at Rs 587.13 crore increased 130% and profit at Rs 324.23 crore rose 174% after providing Rs 33.64 crore as exceptional item for the quarter ended September FY23 compared to corresponding quarter of previous financial year.

Jindal Stainless: Reported a significant 63% YoY decline in consolidated profit at Rs 151.84 crore for the quarter ended September FY23, impacted by higher inventory, power & fuel cost, and other expenses. Revenue grew by 11.5% YoY to Rs 5,604 crore for the quarter.

Dalmia Bharat: The company registered a 74% YoY decline in consolidated profit at Rs 56 crore for the quarter ended September FY23 impacted by higher power & fuel cost, and freight charges. Revenue for the quarter grew by 15.1% YoY to Rs 2,971 crore, while EBITDA fell 39% YoY to Rs 379 crore during the quarter. Volume increased by 13.7% to 5.8 million tonnes for the quarter compared to corresponding period last fiscal.

Wipro: The company launched a new financial services advisory capability in India, named Capco.

Adani Transmission: The board granted in-principle approval for issuance of non-convertible debentures worth up to Rs 1,500 crore.

Life Insurance Corporation of India: The insurer diluted its shareholding in Rail Vikas Nigam to 6.7% from 8.72%.

Spandana Sphoorty Financial: The board approved issuance of NCDs up to Rs 50 crore on private placement basis.

Triveni Turbine: The board approved the proposal for buyback of equity shares worth up to Rs 190 crore through tender offer route at Rs 350 per share, representing 1.68% of the total shareholding of the company.

Source: Moneycontrol, Bloomberg Quint, Investing

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