View on market: Stay Cautious, be with quality business:
Stocks in Asia started the week steady as investors keep watch on how price pressures impact the pace of economic recovery. Treasury yields pared a slide. Equities edged up in Japan, fluctuated in Australia and fell in South Korea. U.S. futures dipped after all major U.S. equity benchmarks climbed to records Friday, with the S&P 500 posting its fifth consecutive weekly rally. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.38% to 18,008, as of 8:05 a.m.
Economic Calender:
- INR: CPI (YoY) (Oct) on 12th November, 2021.
- INR: Manufacturing Output (MoM) (Sep) on 12th November, 2021.
- USD: PPI (MoM) (Oct) on 9th November, 2021.
- USD: Core CPI (MoM) (Oct) on 10th November, 2021.
Earnings: 3i Infotech, Aurobindo Pharma, Balrampur Chini Mills, Britannia Industries, HG Infra Engineering, KRBL, Shyam Metalics and Energy, Sobha, Ujjivan Small Finance Bank, Wockhardt, Vijaya Diagnostic Centre.
Results:
Divi’s Laboratories (Consolidated, QoQ): Revenue up 1% at Rs 1,987.5 crore. Net profit up 9% to Rs 606.5 crore. Ebitda down 4% at Rs 818.1 crore. Margin at 41.2% vs 43.5%. EPS at Rs 22.84 per share vs Rs 20.99.
Sun TV Network (Consolidated, QoQ): Revenue up 3.6% at Rs 848.6 crore Ebitda down 3.2% at Rs 528.3 crore Profit after tax up 8.3% at Rs 395.5 crore Dividend of Rs 2.5 per equity share.
Brokerage Radar:
CLSA ON SBI: Maintain buy at the price of Rs 530 for the target price of Rs 750. Surprise continues, RoEs now +15% with potential upsides. Q2 performance a beat on most counts with core margin improving 15 bps QoQ. 13% ROE despite upfronting a family pension impact, adjusted for all one- offs. Asset quality of SBI & large private peers indicate undershooting of credit costs from H2. Increase their EPS estimates by 3-5% for FY23-24 & now expect 1% ROA & +15% ROE.
GS ON DIVIS LABS: Maintain buy at the price of Rs 5208 for the target price of Rs 5840. Q2 Miss, COVID oral anti-viral opportunity in focus. Generic API biz drove miss as customers destocked inventory from high base of last yr. API miss partially offset by CMO product opportunities announced in mid-FY21. Margin came off but remained buoyant at 41%.
International Markets:
U.S & Europe
| Particulars | 5th Nov | Chg | Chg(%) |
| Nasdaq | 15,971.59 | 31.28 | 0.20 |
| Dow | 36,327.95 | 203.72 | 0.56 |
| FTSE | 7,303.96 | 24.05 | 0.33 |
| CAC | 7,040.79 | 53.00 | 0.76 |
| DAX | 16,054.36 | 24.71 | 0.15 |
| Dow Fut.* | 36,196.00 | 19.00 | -0.05 |
Asian markets:
| Particulars | 8th Nov | Chg | Chg(%) |
| SGX Nifty | 18,008.00 | 67.50 | 0.38 |
| Nikkei | 29,583.39 | -28.18 | -0.10 |
| Straits Times | 3,263.36 | 21.02 | 0.65 |
| Hang Seng | 24,754.67 | -115.84 | -0.47 |
| Shanghai | 3,496.06 | 4.49 | 0.13 |
ADR Watch:
| Particulars | 5th Nov | Chg | Chg(%) |
| Dr Reddy | 63.78 | -0.18 | -0.28 |
| HDFC Bank | 71.44 | -0.88 | -1.22 |
| ICICI Bank | 20.62 | -0.08 | -0.39 |
| Infosys | 22.80 | 0.09 | 0.40 |
| Tata Motor | 32.50 | -0.38 | -1.16 |
| Wipro | 9.02 | -0.01 | -0.11 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 74.46 | 0.00 |
| Brent | 83.83 | 1.81 |
| Gold | 1820.90 | 0.23 |
| Silver | 24.317 | 0.66 |
FIIs & DII
| Particulars | 4th Nov | 3rd Nov |
| FIIs | -328.11 | -401.48 |
| DIIs | 38.25 | 195.56 |
News Update:
Dish TV, Yes Bank: Office of Crime Branch, Gautam Buddh Nagar has issued a notice to Yes Bank, restricting it from dealing in or exercising any rights over its 44.5 crore equity shares in Dish TV till completion of the investigation or till further orders.
Vedanta: Company has exclusive rights over the brand name ‘Cairn’. Cairn Energy PLC, the Scottish oil and gas exploration company that is also commonly referred to as Cairn Energy, will discontinue the use of the term by December 2021.
Dr Reddy’s Laboratories: In an earnings call, CEO Erez Israeli said the company will focus on spending on its generic portfolio in each one of the markets, mainly in United States, China, Europe, emerging markets, biosimilars and recently, also on the Covid products as well as vaccines, specifically for India, Russia.
Sun Pharmaceuticals: Its U.S. subsidiaries have signed settlement agreements with the Direct Purchaser Plaintiffs in the Generic Pharmaceuticals Pricing Antitrust Litigation. The subsidiaries will make a payment of $85 million in exchange for a full release of all claims.
Grasim Industries: Company has successfully commissioned chloromethane project at Vilayat, Gujarat having capacity of 50,000 ton per annum. This will result into an additional annualised revenue of Rs 400 crore.
SJVN: The company has bagged 100 MW grid-connected solar PV power project from Punjab State Power Corporation Ltd through tariff-based competitive bidding process, on ‘Build, Own and Operate’ model.
GAIL (India): National Company Law Tribunal has granted approval for acquisition of 26 percent equity stake of Infrastructure Leasing & Financial Services (IL&FS) Group by GAIL (India) in ONGC Tripura Power Company.
Grasim Industries: The company has successfully commissioned Chloromethane project at Vilayat Unit, Gujarat, having capacity of 150t per day or 50,000t per annum. This will lead to an additional annualised revenue of around Rs 400 crore
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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