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

Asian stocks rose Thursday after progress on the U.S. debt-ceiling impasse lifted equities on Wall Street. Shares advanced in Japan, Australia and South Korea, while U.S. futures also climbed. The S&P 500 and Nasdaq 100 erased losses of more than 1% to close with gains on a possible deal to boost the debt ceiling into December. That would alleviate the immediate risk of a default but leave the political fight simmering in Washington. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.79%, to 17,767.00, as of 8:00 a.m.

Economic Calender:

  • INR: Interest Rate Decision on 8th October, 2021.
  • INR: Deposit & Bank Loan Growth on 8th October, 2021
  • USD: Initial Job Claims on 7th October, 2021.
  • USD: Unemployment Rate (Sept) & Nonfarm Payrolls (Sept) on 8th October, 2021.

Brokerage Radar:

CS ON TITAN: Maintain neutral at the price of Rs 2147 for the target price of Rs 2150. Jewellery growth in Q2 significantly ahead of expectations. Postponed demand from Q1 likely to have contributed. Increase our FY22/23/24 earnings estimates by 8%/5%/5.

CLSA ON CEMENT: Cost inflation, seasonal price softness weigh on profitability. Forecast a sharp drop (14% YoY) in India cement cos’ Q2 profitability. Volumes are likely to be resilient, with mid-single-digit YoY industry growth. We are in midst of a demand upcycle, but cost increases have been persistent. For FY22, we forecast about 12% volume growth & flat EBITDA/ YoY. We prefer ACC & UltraTech Cement Upgrade Ramco cements to outperform from underperform. Maintain outperform on Ambuja & Dalmia Bharat. Remain cautious on Shree cement, have underperform call.

International Markets:

U.S & Europe

Particulars 6th Oct Chg Chg(%)
Nasdaq 14,501.91 68.08 0.47
Dow 34,416.99 102.32 0.32
FTSE 6,995.87 -81.23 -1.15
CAC 6,493.12 -83.16 -1.26
DAX 14,973.33 -221.16 -1.46
Dow Fut.* 34,457.00 166.00 0.48

Asian markets:

Particulars 7th Oct Chg Chg(%)
SGX Nifty 17,767.00 138.50 0.79
Nikkei 27,990.32 461.45 1.68
Straits Times 3,114.40 30.52 0.99
Hang Seng 24,462.28 495.79 2.07
Shanghai* 3,568.17 31.88 0.90

ADR Watch:

Particulars 6th Oct Chg Chg(%)
Dr Reddy 65.86 -0.82 -1.23
HDFC Bank 73.00 -0.26 -0.35
ICICI Bank 18.69 -0.15 -0.80
Infosys 22.45 -0.30 -1.32
Tata Motor 22.34 -0.79 -3.42
Wipro 8.80 -0.15 -1.68

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 75.17 0.66
Brent 80.59 -0.60
Gold 1759.30 -0.14
Silver 22.585 0.24

FIIs & DII

Particulars 6th Oct 5th Oct
FIIs -801.81 -1915.08
DIIs -998.69 1868.23

News Update:

Zee Entertainment Enterprises: The founder of Zee Entertainment Enterprises Ltd., Subhash Chandra, has alleged that dissenting investors Invesco Developing Markets Fund and OFI Global China Fund LLC are trying to take over the firm he set up two decades ago, adding another twist in the public fight for board control of India’s largest listed TV network.

Nazara Technologies: The company raised Rs 315 crore from marquee institutional investors. The funds will be utilised to invest in growth initiatives of the company as well as pursue strategic acquisitions in the various business verticals of the company including gamified learning, freemium, skill based real money gaming and esports.

Lupin: Received tentative U.S. FDA approval for Brexpiprazole Tablets, a generic equivalent of Rexulti Tablets of Otsuka Pharmaceutical Co. The company will manufacture Brexpiprazole at its Pithampur facility in India.

Titan Company: Co. reported strong recovery in demand in Q2FY22. Jewellery business grew by 78% in Q2FY22 YoY & added 13 stores during the Q1, watches & wearables segment registered 73% YoY growth & eye wear business increased by 74% YoY in the same period.

Sobha: New sales grew by 50.62% to 13.48 lakh square feet in Q2FY22 versus 8.91 lakh square feet in Q2FY21. Total sales value increased 49.32% to Rs 1,030.2 crore from Rs 689.9 crore in the same period. The company achieved best-ever quarterly sales volume of 13.5 lakh square feet of super built-up area. It also achieved best ever Sobha Share of sale value of Rs 854 crore. Average cost of borrowing has further come down during the quarter.

Macrotech Developers: Q2 pre-sales rise 88% year-on-year to Rs 2,003 crore. The company had pre-sales of £145 million (Rs 1,450 crore) in U.K. projects during the quarter. Collections up 73% YoY at Rs 1,912 crore. Net debt at India business fell to Rs 12,508 crore versus Rs 16,965 crore a year earlier. Plans to cut debt to about Rs 10,000 crore by March.

Telecom stocks:Govt has reduced bank guarantee requirement for telecom operators by 80%.

Ambuja Cements: LIC acquired 3.99 crore equity shares in the company via open market transactions, increasing shareholding to 6.12% from 4.11% earlier.

Orissa Minerals Development Company: LIC sold 1.24 lakh equity shares in the company via open market transactions, reducing shareholding to 9.08% from 11.16% earlier.

NIIT: U.S.-based Sutherland, a leading global digital transformation company, and StackRoute, an NIIT Venture, have entered into a partnership to launch an immersive training program designed to identify the right talent and develop them as high-quality full stack IT professionals, handling critical roles at Sutherland.

Balaji Amines: The company’s demethylformamide plant will remain shut for two-three weeks. An incident took place at the company’s unit III demethylformamide plant which caused leakages/breakdown. While rectifying this the company added some debottlenecking activities to increase capacity.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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