Market View 7th November 2022

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

Equities opened higher in Japan, South Korea and Australia, though the gains were more modest than futures had suggested earlier. Contracts for the S&P 500 and Nasdaq 100 fell, as did European stock futures, after the shares on Wall Street snapped a four-day slide on Friday. Investor appetite soured, sending US equity futures and commodities lower after China affirmed its Covid-Zero policy stance. The dollar advanced against major currencies on its appeal as a haven asset.  Oil slumped around 2%, leading falls in commodities on the prospect of weaker demand from China. On Friday, India’s stock benchmarks sustained gains for three weeks in a row aided by weekly gains in metals, PSU banks and media stocks. At 6:35 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — gained 0.54% to 18,301.

Economic Calendar:

• USD : EIA Short-Term Energy Outlook on 08th November, 2022
• USD : Core CPI (MoM) (Oct) on 10th November, 2022
• INR : Trade Balance on 07th November, 2022
• INR : CPI (YoY) (Oct) on 11th November, 2022

Q2FY23 Result Today: Coal India, Divis Laboratories, One 97 Communications (Paytm), PB Fintech (Policybazaar), Bharat Petroleum Corporation, Aditya Birla Capital, Affle India, Ceat, Cera Sanitaryware, Endurance Technologies, Greenply Industries, India Cements, KEC International, RateGain Travel Technologies, Sun Pharma Advanced Research Company, Sundaram-Clayton, Tata Teleservices (Maharashtra), Ujjivan Small Finance Bank, and Vascon Engineers

Brokerage Radar:

GS ON TITAN: Buy, TP Rs 3175; Strong qtr on all fronts; 2Q profit grew 32% YoY, ahead of expectations, driven by jewellery biz where rev grew 18% YoY, implying 27% 3-yr CAGR; Jewellery EBIT grew 39% YoY, with margins expanding 230bps YoY, although this included 200bps of 1-off

MS ON TVS MOTORS: EW, TP Rs 1106 ; 2Q in line, but market was expecting stronger QoQ margin expansion ; In 2Q, QoQ margin expansion was 20bps for TVS & Hero & 100bps for Bajaj; TVS has strong earnings momentum, but EV disruption risks keep us EW

NOMURA ON BRITANNIA: Upgrade to buy, TP Rs 4600; 2Q: All-round beat; Increase FY24F/25F EPS by 7%/10% due to: robust all-round beat in 2Q & an improving vol growth & margin outlook; Higher-than-peers volume growth of c.5%; 270bp of q-q OPM expansion to 16.3%

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

TVS Motor Company: The board approved issue of zero-coupon debentures up to Rs 310 crore to subsidiary Sundaram Auto Components.

Bhagiradha Chemicals & Industries: The board declared dividend of Re. 1 per equity share of face value of Rs 10.

Cipla: The board decided not to proceed with the transfer of India-based U.S. business undertaking.

Escorts Kubota: The company will buy rough terrain crane business and the associated equipment and parts from Tadano Escorts India for Rs 16.59 crore. The company will also sell 49% stake in Tadano.

IDFC First Bank: The board approved plan to raise Rs 4,000 crore Tier-1 capital via issuance of equity share.

Reliance Industries: Veteran banker K.V. Kamath has been appointed non-executive chairman of the company’s financial services arm Reliance Strategic Investments, which is soon to be demerged and listed as Jio Financial Services.

Indian Railway Finance Corporation: The board will convene on Nov. 10, 2022 to consider interim dividend for the current financial year.

Bank of India: The board approved Raising of Tier-1 capital via issue of AT-1 bonds worth Rs 2,500 crore.

Vidhi Specialty Food: The board will meet on Nov. 11 to consider the first interim dividend for the current fiscal.

Source: Moneycontrol, Bloomberg Quint, Investing

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