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

Asian stocks rose Wednesday after U.S. equities rebounded as traders weigh the resilience of the economic recovery to elevated inflation fanned by surging energy costs. Treasury yields advanced and the dollar held a climb. Shares rose in Japan and South Korea, while Australia was little changed. U.S. contracts fluctuated after bargain-hunting for technology stocks that bore the brunt of a recent selloff boosted the S&P 500 and Nasdaq 100. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.17% to 17,788.50, as of 8:10 a.m.

Economic Calender:

  • INR:  M3 Money Supply on 6th October, 2021
  • INR:  Interest Rate Decision on 8th October, 2021.
  • USD: Crude Oil Inventories on 6th October, 2021.
  • USD:  Initial Job Claims on 7th October, 2021.

Brokerage Radar:

CS ON BAJAJ FIN: Maintain neutral at the price of Rs 7724 for the target price of Rs 7500. Steady recovery in growth & asset quality. Mortgage yields under pressure due to competition. Expect pricing pressure in mortgages, may hold on to pricing in other segments. Expect it to meet its credit cost guidance of 2.5%.

CLSA ON GODREJ CONS: Maintain outperform at the price of Rs 1042 for the target price of Rs 1050. Stable revenue trends overall; inflation & mix impact margin. Still see scope for the valuation discount to narrow vs peers.

JP MORGAN ON RELIANCE: Maintain neutral at the price of Rs 2609.2 for the target price of Rs 2465. Earnings downgrade cycle is likely over for now. Telecom tariff hikes around the corner. They do not yet see an upgrade cycle. In a market awash with flows, Positive news cycle should keep stock supported. While their earnings estimates are unchanged, increase multiples across biz.

International Markets:

U.S & Europe

Particulars 5th Oct Chg Chg(%)
Nasdaq 14,433.83 178.34 1.25
Dow 34,314.67 311.75 0.92
FTSE 7,077.10 66.09 0.94
CAC 6,576.28 98.62 1.52
DAX 15,194.49 157.94 1.05
Dow Fut.* 34,079.00 -104.00 -0.30

Asian markets:

Particulars   6th Oct    Chg Chg(%)
SGX Nifty 17,788.50 -30.50 -0.17
Nikkei 27,544.06 -278.06 -1.00
Straits Times 3,072.93 4.81 0.16
Hang Seng 23,839.29 -264.86 -1.10
Shanghai* 3,568.17 31.88 0.90

ADR Watch:

Particulars 5th Oct Chg Chg(%)
Dr Reddy 66.68 -0.57 -0.85
HDFC Bank 73.26 0.58 0.80
ICICI Bank 18.84 0.10 0.53
Infosys 22.75 0.60 2.71
Tata Motor 23.13 0.41 1.80
Wipro 8.95 0.10 1.13

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.68 0.26
Brent 82.52 -0.23
Gold 1756.75 -0.24
Silver 22.538 -0.31

FIIs & DII

Particulars 5th Oct 4th Oct
FIIs -1915.08 860.50
DIIs 1868.23 228.06

News Update:

Godrej Consumer Products: The company expects to deliver high single-digit sales growth with another quarter of double-digit 2-year CAGR during July-September quarter. It expects operating margins to contract during the quarter driven by a lag between the rise in input costs and increase in end consumer pricing. India sales growth expected to be in double-digit during the second quarter, driven largely by volume growth and calibrated price increases.

Marico: The company expects modest profit growth, margin contraction in July-September quarter. Revenue growth was in low twenties as consumer sentiment was healthy across categories. India volume growth was close to double-digits on a 2-year CAGR basis. International business delivered double-digit constant currency growth, helped by positive trends in all markets but Vietnam.

Coal India: The company’s board has accorded in-principle approval to pre-feasibility report for setting up integrated greenfield aluminium project in Odisha and associated captive power plant by its subsidiary Mahanadi Coalfields.

Central Bank of India has entered into a co-lending partnership with IIFL Home Finance.

Pillips Carbon Black: The company closed its qualified institutional placement issue and raised Rs 400 crore by issuing over 1.63 crore equity shares to 20 qualified institutional buyers at Rs 244 per equity share.

Future Retail: The Master Franchise agreement executed between Future7-India Convenience, 7-Eleven INC, Future Corporate Resources and the company–for developing and operating 7-Eleven stores within India– has been mutually terminated. The Future-7 was not able to meet the target of opening stores and payment of franchisee fees.

MTAR Technologies: CRISIL Ratings has upgraded long-term rating of company’s bank facilities to A-/Stable from BBB+/Positive and short-term rating to A2+ from A2.

Raymond: Raymond Realty will develop ‘Grade A’ commercial and high street retail space at Thane land spread across 9.5 acres. The company also announced its plans to build premium residential units spread across 1 million sq ft.

Glenmark Pharma: Confirms recall of some products in U.S.

HDFC Bank: Months after shelving plans to list its non-banking subsidiary, HDB Financial Services, HDFC Bank has initiated a formal process to rope in a strategic investor, as per a report.

Central Bank of India: Central Bank of India has entered into a strategic co-lending partnership with IIFL Home Finance Ltd to offer SME LAP Loan product under priority sector to MSME borrowers.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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