Share Market Highlights 09 October 2023: Sensex sheds 483 pts; Nifty around 19,500; Adani Ports, HDFC Life among top losers

The rupee settled flat at 83.27 against the US dollar amid a weak trend in domestic equities and surging crude oil prices in the international markets.

Forex traders said the safe-haven dollar gained ground amidst heightened concerns in the Middle East.

At the interbank foreign exchange, the domestic unit opened at 83.24 and finally settled at 83.27 against the American currency. Read more.

Equity benchmark indices Sensex and Nifty tumbled nearly 1 per cent on Monday as investors offloaded finance, utility and energy stocks amid escalating tensions in the Middle East and surging crude oil prices overseas.

Investors stayed on the sidelines and refrained from taking big risks amid huge uncertainty due to the Israel-Hamas conflict, analysts said.

The 30-share BSE Sensex fell 483.24 points or 0.73 per cent to settle at 65,512.39. The Nifty declined 141.15 points or 0.72 per cent to end at 19,512.35. Read more.

The borad of Oracle Financial Services Software has granted 13,108 Stock Options named as OFSS Stock Units (OSUs) under OFSS Stock Plan 2014 to employees of the Company.

The board of Transport Corporation of India has allotted 33,015 equity shares under ESOP-2017-4th & 5th Tranche. The stock declined by 1.11% on the NSE, at ₹783.

The board of Glenmark Life Sciences Limited has declared interim equity dividend for the financial year 2023-24 of ₹22.50 per equity share of ₹2 each. The stock traded at ₹625.90, up by 0.12% on the NSE.

N R Agarwal Industries has announced the appointment of Soumyajit Mukherjee as its Chief Marketing Officer with effect from October 09, 2023. The stock declined by 1.55% on the BSE, trading at ₹361.90.

Dev Information Technology (DEVIT) has been recognized as the top ISV bagging “13th Channel Accelerator Awards 2023” in the category of Cloud Consulting, ERP and CRM solution.

The stock trades at ₹133.35, up by 19% on the NSE.

Emphasising that the world today is not categorised by a shortage of crude oil, Oil Minister Hardeep Singh Puri on Monday said oil prices above $100 per barrel (bbl) will not be sustainable.

Speaking to presspersons on the sidelines of the 26th annual Energy Technology Meet (ETM), Puri said oil producers have the sovereign right to increase or decrease crude oil prices, but this would lead to a faster pace of energy transition in the consuming countries. Read more.

Pavna Industries stock tumbles by 6.27% on the BSE, trading at ₹422.70. The company’s board to consider and approve the proposal for raising of funds through Further Public Offer through issue of Equity Shares, at the meeting on Oct 11.

Major gainers on the NSE at 3 pm:

Dr Reddy (1.49%); HCL Tech (1.19%); Tata Consumers (0.96%); TCS (0.65%); Hindustan Unilever (0.57%)

Major losers:

Adani Ports (-4.69%); Hero Motorcorp (-2.73%); HDFC Life (-2.18%); M&M (-2.13%); BPCL (-2.02%)

Manappuram Finance India Ltd (MAFIL) has entered into a Memorandum of Understanding (MoU) with construction equipment manufacturer JCB India Ltd to finance the latter’s range of equipment and engineering products.

As per the agreement, the finance options will be available across the country. The pact will go a long way in helping both sides increase their business volumes.

The stock lost 1.68% to trade at Rs 140.45 on NSE.

Stocks advanced on BSE at 3 pm on October 9, 2023, were 1,018 against 2,735 stocks that declined; 149 stocks remain unchanged. Total stocks traded were 3,902. The number of stocks that recorded a 52-week high was 237, and those that hit a 52-week low was 36.

Restaurant Brands Asia has approved availing Rs 150 crore as secured term loan Axis Bank. The stock lost 1.76% to trade at Rs 123 on NSE.

Trent stock inches up by 0.55% on the NSE, trading at ₹2,083.55.

The stock is down by 2% on the BSE, trading at ₹380.25.

Titan Company stock declines by 1.31% on the NSE, trading at ₹3,266.40, although the company registered Revenue growth of 20% y-o-y in Q2FY24.

Maruti Suzuki India (MSIL) on Monday said the regular capex in the existing plants at Gurugram, Manesar and Gujarat will continue, and the total capex till 2030-31 could be as much as Rs.1.25 lakh crore. The amount for capex in 2022-23 was around Rs.7,500 crore, it said in stock filings. Read more.

Dabur India Limited today announced the successful completion of one of the largest and most complex cloud migrations in the Indian Consumer Goods industry, making Dabur the first Indian FMCG Cloud-Only Enterprise.

This will significantly improve business resilience and enhance control of the IT landscape, helping the companyaugment its services for retailers, partners, employees, and consumers, the company said.

The stock is up by 2.18% on the BSE, trading at ₹98.55.

Route Mobile Limited has been featured as a major provider of Communication Platform as a Service (CPaaS) in Gartner Magic Quadrant Report 2023 and in 4 major Gartner Hype Cycle Reports.

The stock is down by 0.34% on the NSE, trading at ₹1,552.50.

The stock is down 85 per cent from its 52 week and all time high of ₹4,000

Adani Ports and Special Economic Zone stock declines by 3.91% on the NSE, trading at ₹798.30.

Adani Ports said it is closely monitoring the situation in Israel where it operates a major Port.

“We are closely monitoring the action on ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We have taken measures to ensure the safety of our employees and all of them are safe,” said a spokesperson of Adani Ports and SEZ.

The overall contribution of Haifa in APSEZ’s numbers is relatively small at 3 per cent of the total cargo volume.

Fineotex Chemical has engaged with BDO India LLP, a member of BDO International – the 5th largest global professional services firm for advisory on the taxation matters for its business.

The stock is down by 3.13% on the NSE, trading at ₹311.

Vascon Engineers stock suges by 4.62% on the NSE, trading at ₹75.90

The company’s board had approved the allotment of 71,42,856 fully paid up Equity Shares of ₹4 each, to Kamath Associates, NKSquared (Both Partnership Firm represented by its partners Nikhil Kamath & Nithin Kamath), SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund worth ₹510 crore.

Tata Power (-3.25%)

Adani Energy Solutions (-2.95%)

IOC (-2.56%)

BPCL (-2.23%)

Adani Green (-1.99%)

Life Insurance Corporation of India’s shareholding in National Fertilizer Ltd has diluted to 7.257 per cent from 9.275 per cent of the paid-up capital of the said company. THe LICI stock has declined by 1.53 per cent on the NSE, trading at ₹634.50.

Thomas Cook and SOTC have launched exclusive Vegetarian and Jain Tours that combine the best of cuisine and cultural experiences to a range of favourite locales, for customers in Gujarat and Maharashtra.

Thomas Cook stock slides 0.53% on the NSE, trading at ₹122.45.

According to Wright Research, a smallcase manager, consumer sentiment will pick up this festive season as retailers expect at least 10-12 per cent growth over the last year’s sales. The company reports an expectation of discretionary spending in consumer, automotive, banking, real-estate, e-commerce and many more sectors picking up in the coming months, and estimates a 20 per cent increase in employment during this festive season.

The onset of the season, starting with Ganesh Chaturthi, followed by Navratri, Diwali and beyond, contributes as a major economic catalyst in the country. Auspicious buying, marketing and discounts, deferred purchases are a combination of festive euphoria and tempting deals that sparks consumer spending during festival months. A 2019 study highlighted that Durga Puja generated a ‘creative economy’ worth ₹32,377-crore in West Bengal alone, accounting for 2.58 per cent of the state’s GDP. Additionally, global recognitions including UNESCO’s inclusion of Durga Puja as an Intangible Cultural Heritage, bolsters the tourism economy. E-commerce giants also anticipate a 28 per cent growth in sales during the festive month. All these factors cumulatively amplify the country’s GDP during the festival season.

Securitisation volumes expanded by ~39% to an estimated ~ Rs 1,03,000 crore in H1 FY2024 from ~Rs. 74,000 crore in H1 FY2023: ICRA

· Securitisation undertaken by originators excluding HDFC Ltd surged by ~69% YoY

· Volumes for full year expected to be close to previous peak of Rs. 2 lakh crore

ICRA estimates that securitisation volumes slowed to ~Rs 47,000 crore in Q2 FY2024 from ~Rs 56,000 crore in Q1 FY2024, largely due to the exit of one key originator (viz. HDFC Ltd) from the securitisation space following its merger with HDFC Bank. Nevertheless, the estimated securitisation volumes of Rs 1.03 lakh crore for H1 FY2024 translates into a strong expansion of ~39% over the Rs 74,000 crore recorded in H1 FY2023. Further, securitisation undertaken by the originators, excluding HDFC Ltd witnessed an even higher spike of ~69% YoY to Rs 90,000 crore in H1 FY2024, from Rs 54,000 crore in H1 FY2023. The continued growth in volumes is driven by the consistent rise in credit demand in the financial lending space reported by all lenders, resulting in higher funding needs.

Abhishek Dafria, Senior Vice-President and Group Head, Structured Finance Ratings, at ICRA, said: “Over the last 12 months, lending activity has seen a significant surge, backed by stable macro-economic conditions and huge credit demand to fuel the growing economy. Securitisation has become a reliable fund-raising tool for lenders. It provides diversity in funding, along with an improving asset-liability profile of the lenders. Though HDFC Ltd, which had a high contribution to overall volumes, exited the market at the beginning of Q2, we expect the market to remain buoyant. In ICRA’s opinion, the annual securitisation volumes for FY2024 are expected to be close to the peak of Rs 2 lakh crore seen in the pre-Covid era.”

Date of Polls:

Mizoram - Nov 7

Chhattisgarh - Nov 7 & Nov 17

Madhya Pradesh - Nov 17

Rajasthan - Nov 23

Telangana - Nov 30

Results: Dec 3

Sharad Chandra Shukla, Director at Mehta Equities Ltd said, “The recent escalation in the Israel-Palestine conflict has injected uncertainty into global markets, leading to a 5 per cent surge in crude oil prices and a hardening of US Treasury yields. Investor flight to safe assets such as gold is also underway. The duration and severity of this conflict will dictate its impact on global economic sentiment, including potential repercussions for Indian markets.”

• Welspun Investments and Commercials (20%)
• Permier Polyfilm (16.01%)
• ITI (12.99%)
• Hindustan Media Ventures (11.13%)
• Oriental Hotels (8.65%)

GOCL Corporation stock declines by 1.52% on the NSE, trading at ₹508. Its wholly-owned subsidiary IDL Explosives Limited (IDLEL) had bagged order from Coal India Limited, a Maharatna Company of the Government of India.

The board of Ashiana Ispat to consider the allotment of shares by way of issue of 87,50,000 Equity shares at a price of ₹32 per such equity share on Preferential basis to Promoter and Public category as per the grant of “in-principle” approval by BSE.

Bharti Airtel stock slides down by 0.12% on the NSE, trading at ₹924.95. The company had said that Principal Commissioner of Customs, Delhi Air Customs Commissionerate, has passed an order u/s 28 of Customs Act, 1962 levying penalty of ₹9,01,95,504 for alleged incorrect classification of imported goods. The Company will challenge the Order at appellate forum.

One97 Communications Limited (Paytm) has announced that its wholly-owned subsidiary Paytm Payments Services Limited, has become the first in the industry to enable merchants with Alternate ID (ALT ID) based Guest Checkout solution across networks.

The stock slides down by 0.44% on the NSE, trading at ₹924.20.

Major gainers on the NSE at 12 pm:

HCL Tech (1.82%); Dr Reddy (1.53%); TCS (1.07%); ONGC (0.85%); Eicher Motors (0.56%)

Major losers:

Adani Ports (-3.21%); BPCL (-2.23%); Hero Motocorp (-1.82%); SBI (-1.55%); Bajaj Finserv (-1.49%)

Stocks advanced on BSE at 12 pm on October 9, 2023, were 1,044 against 2,535 stocks that declined; 168 stocks remain unchanged. Total stocks traded were 3,747. The number of stocks that recorded a 52-week high was 214, and those that hit a 52-week low was 33.

Metropolis Healthcare Ltd has vacated its registered office situated at 250 D, Udyog Bhavan Worli, Mumbai, and is using its office located at 4th floor, Commercial Building 1 A, Kohinoor Mall, Vidyavihar (West), Mumbai, to carry out all the operations and business activities.

The stock is up by 2.23% on the NSE, trading at ₹1,503.90.

Automotive retail in September showcased robust double-digit year-on-year (YoY) growth of 20 per cent, and except for tractors, which witnessed a 10 per cent decline, all other categories experienced growth, with two-wheelers (2W) seeing a 22 per cent increase, three-wheelers (3W) 49 per cent, passenger vehicles (PV) 19 per cent, and commercial vehicles (CV) up by five per cent.

According to monthly retail sales data shared by the Federation of Automobile Dealers’ Associations (FADA), PV sales grew 19 per cent YoY to 3,32,248 units during the month, as compared with 2,79,137 units in the corresponding month last year.

Increasing geopolitical risk in the West Asia could increase oil prices and higher volatility can be expected. This can have a lasting and meaningful impact on oil markets as there can be a sustained reduction in oil supply. Surging crude oil could impact domestic inflation and can see interest rates at an elevated level for a prolonged period. FIIs are continuously selling due to higher bond yields and high crude oil prices could add more issues. One should keep an eye on the nature of the war, as its longevity could have a strong impact. In the stock market, sectors like Paint and chemicals need to be closely watched as it will impact their margins in the short to medium term.

The stock declines by 3.27% on the NSE, trading at ₹296.95. Meanwhile, BHEL stock declines by 2.56% on the NSE, trading at ₹125.60.

Against IPO price of Rs 70, Arabian Petroleum listed at RS 77 and currently ruling at Rs 76.80 on NSE-EMERGE. The stock hit a high of Rs 78.8 and a low of Rs 74.25.

IFL Enterprises has announced that it recently received a substantial order valued at ₹729 million from a renowned international client; and ₹6 billion orders on the horizon along with an investment of ₹530 million.

The stock surges by 9.25% on the BSE, trading at ₹15.71.

The company’s board is scheduled to meet on October 11 to consider July -September quarterly results, will now also consider a proposal for buyback of equity shares of the company.

OIL (7.15%); MCX (4.66%); Vijaya (4.53%); Delta Corp (3.92%); Sanduma (3.86%)

Major losers:

Godrej Industries (-5.54%); JP Power (-5.29%); Gravita (-5.06%); RPower (-4.35%); Suzlon (-4.32%)

The October Bank Nifty futures opened today’s session lower at 44,205 against Friday’s close of 44,510.20. It is currently trading at 44,100, down 0.9 per cent.

Like the key support at 43,700 for the underlying Bank Nifty index, Bank Nifty futures has a strong support at 44,000. So, the contract might bounce off this level. Read more.

The rupee witnessed range-bound trading against the US dollar in early trade on Monday, weighed down by a negative trend in domestic equities and the strength of the American currency in the overseas market.

Forex traders said the safe-haven dollar gained ground amidst heightened concerns in West Asia.

At the interbank foreign exchange, the rupee opened at 83.24 against the dollar, then touched 83.23, registering a rise of 4 paise over its previous close. Read more.

Ami Organics informed the exchange that upon receipt of requisite approval by shareholders at the 16th AGM, the final dividend of ₹3 at the rate of 30% per Equity Share of ₹10 each shall be paid to the shareholders today i.e October 9, 2023. The stock declines by 1.45% on the NSE, trading at ₹1,179.40.

The board of Restaurant Brands Asia has approved availing of secured term loan facility (fund based and non-fund based - fully fungible - ₹150 crore) by the Company from Axis Bank Limited. The stock declines by 1.60% on the NSE, trading at ₹123.20.

The ICE Make Refrigeration Ltd stock crossed Rs 1,000-crore in market capitalisation on Friday. The company, which started off by listing on NSE-Emerge, an SME platform in December 2017, migrated to its mainboard in 2020. It hit a 52-week high of Rs 648 per share on October 6. The stock has climbed over 11 times since listing. It had hit the capital market with a price of Rs 57. Read more.

The elevated readings of the twin PMI indices continue to indicate the steady momentum in both the manufacturing and the services sector in the first half of the current fiscal.

The expectation of strong demand during the festive season (mostly Q3) has been an important driver of increased economic activity. The strength of rural demand in particular amidst a deficient monsoon and higher food prices will be a monitorable in the second half of the year. Nevertheless, high investment activity through government capital expenditure and a gradual rise in private sector capex will facilitate a healthy GDP growth in FY24, ours being pegged at 6.0% for now.

The stock is down by 0.62% on the NSE, trading at ₹32.30.

The Nifty 50 October Futures (19,600) is down 0.4 per cent. The contract fell to a low of 19,506 in the opening trades and has risen back sharply from there.

Immediate resistance is at 19,620. A break above it will be bullish to see 19,700-19,750. Support is around 19,550. The contract will come under pressure to see 19,500 and lower levels if it breaks below this support. Read more.

The stock is up by 2.33% on the BSE, trading at ₹237.

The company had acquired 100% of equity shares of Anamika Sugar Mills Private Limited.

The ongoing conflict in Israel is an unforeseen event impacting the market, and its effects may take some time to be fully absorbed. Monitoring the situation closely, especially regarding potential involvement of other actors like Iran, is essential. The possibility of a third front involving Iran is a significant concern as it could trigger a sharp increase in crude oil prices.

From a technical standpoint, the 19300–19250 range is a critical demand zone. Until the market stabilizes within this range, it’s likely to remain in a sideways pattern, facing a notable obstacle at 19800. A breach below 19250 could lead to a healthy correction, potentially reaching the 18800 level. For short-term traders, it’s advisable to exercise caution and not rush into trades. On the other hand, a substantial correction could present an excellent buying opportunity for long-term investors.

Reliance Retail Ventures Limited had announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority will invest ₹4,966.80 crore into RRVL, a subsidiary of Reliance Industries Limited.

Crude oil futures traded higher on Monday morning following the attack on Israel by Hamas and the military conflict after that. At 9.51 am on Monday, December Brent oil futures were at $87.69, up by 3.68 per cent; and November crude oil futures on WTI (West Texas Intermediate) were at $86.03, up by 3.91 per cent. October crude oil futures were trading at ₹7174 on Multi Commodity Exchange (MCX) in the initial trading hour of Monday morning against the previous close of ₹6875, up by 4.35 per cent; and November futures were trading at ₹7045 as against the previous close of ₹6773, up by 4.02 per cent. Read more.

The company recently entered into an arrangement with JK Cement Limited for lead generation for sale of grey Cement through Vakrangee Kendra networks.

Vakrangee ties up with JK Cement for sale of grey cement through Vakrangee Kendra networks

Elizabeth Mathew buys 32 lakh shares of Indiabulls Housing

Metropolis’ core business revenue up 13% YoY on the back of growth in volume

Aster DM plans to increase bed capacity at Whitefield hospital

Adani Green commissions 150 MW solar power project at Bikaner in Rajasthan

TVS Motors starts production of BMW CE 02 electric scooter at Hosur plant

Titan reports 20 per cent revenue growth in Q2; jewellery division reports 19 per cent revenue growth

Abu Dhabi Investment Authority to invest about Rs 4,966 crore in Reliance Retail Ventures

US FDA has accepted the new drug application for deuruxolitinib of Sun Pharma

TCS to consider buyback of shares on Oct 11

The stock declines by 4.02% on the NSE, trading at ₹352.60. Read more.

Syngene International Limited informed the exchange about the retirement of Dr. Joydeep Kant, Sr. Vice President - Development Services, with effect from close of working hours on October 31, 2023.

NLC India Limited (NLCIL) emerged as a successful bidder in tender floated by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) for procurement of power from 810 MW Grid Connected Solar photovoltaic power projects to be set up in 2000MW Pugal Solar Park in Tehsil - Pugal, Bikaner, Rajasthan. The company has been successful bidder for the total capacity of 810 MW for Tariff of Rs 2.64 per unit.

The company’s stock slides down by 0.96% on the NSE, trading at ₹262.

Major gainers on the NSE at 9:30 am:

Divi’s Lab (1.13%); HCL Tech (0.67%); TCS (0.40%); Dr Reddy (0.33%); ONGC (0.33%)

Major losers:

Adani Ports (-3.51%); BPCL (-3.02%); Adani Enterprises (-2.38%); SBI (-2.04%); Tata Steel(-1.63%)

Solar Industries has received orders worth Rs 1853 crore from Coal India

RVNL (Rail Vikas Nigam Ltd) receives Letter of Acceptance worth Rs 394 crore from Maharashtra Metro Rail

Stocks of oil upstream companies are under watch as crude prices jumped by 5 percent on recent geopolitical tensions

GOCL (formerly Gulf Oil) bags order worth Rs 766 crore from Coal India for supply of bulk explosives

Lemon Tree Hotels signs new property for 60-rooms hotel in Jamnagar, Gujarat

Prestige Estates Q2 sales are at Rs 7093 crore, up 102 percent YoY

In Q2, Marathon sold 1,70,501 sq. ft., an increase of 108% YoY over corresponding period of last year

Shakti Pumps has received Letter of Intent of Rs 150 crore for implementation of grid connected solar water pumping system

Adani Energy acquires 100 per cent equity shares of Sangod Transmission Service from Rajasthan Rajya Vidyut Prasaran Nigam

Kalyan Jewellers plans to add 33 new showrooms by Diwali

Walchandnagar Ind to issue warrants; Ashish Kacholia to buy up to 1.75 million warrants

Oil India plans green hydrogen valley foray, eyes geothermal exploration

Kaynes Technology signed a pact with Telangana government for investing Rs 2,800 crore in semiconductor plant

Indian benchmark indices, Nifty and Sensex, opened with losses on Monday due to heightened geopolitical tension stemming from Hamas’s unexpected attack on Israel. At 9:167 a.m., the BSE Sensex was down 466.35 points at 65,529.28, while the NSE Nifty declined 142.25 points to 19,511.25.

In the Sensex pack, notable gainers included ONGC, HCL Tech, TCS, Infosys and Nestle. However, BPCL, Tata Steel, Adani Ports, Adani Enterprises and UPL lagged behind.

Analysts anticipate foreign portfolio investors to increase their selling in emerging markets, including India, where selling is already prevalent.

Meanwhile, global markets displayed mixed early trading on Monday. Despite a decline in Israel’s stocks on Sunday, equities across the Asia-Pacific region experienced marginal changes, as investors assessed the evolving situation.

In commodities, WTI crude futures surged over 3% to exceed $85 per barrel on Monday, driven by the surprise Hamas attack in Israel, sparking concerns of potential global escalation with reported connections to Iran. Last week, the US oil benchmark saw a substantial 9% drop due to weakening demand and supply uncertainties. EIA data revealed a significant increase in US gasoline stocks and a 1998-low four-week average for gasoline demand, overshadowed by high interest rates and a slowing global economy. While Russia resumed diesel fuel exports, gasoline exports remained restricted.

Gold witnessed a rise in demand as a safe haven asset amid escalating tensions in the Middle East. The precious metal gained up to 1.2% in early Asian trading on Monday.

United Spirits may gain from GST Council decision to reduce GST on Molasses to 5 per cent from 18 per xent

KPI Green receives order worth 4.20 MW for Solar Power Projects

IEX to acquire 10 per cent stake in Enviro Enablers India

Tata Motors’ JLR proposes a tender offer for outstanding notes

Bank of Baroda deposits up 4.15 per cent QoQ at Rs 12 lakh crore, Domestic CASA Deposits up 1 per cent QoQ at Rs 4.24 lakh crore

IDFC First Bank approves allocation of 33.24 crore shares at issue price of Rs 90.25 a piece.

Softbank sells 1.1 crore shares of PB Fintech; Goldman Sachs, Tata MF and others among buyers

Tata Steel crude steel production stood at 4.99 million tonne and was broadly stable on QoQ and up 4% on YoY

Sigachi board meeting today to consider allotment of equity shares upon conversion of Warrants

Glenmark board meeting today to consider the declaration of the Interim Dividend

KPI Green board meeting today to consider September quarter Results

Oct’23 heralds the onset of a period of numerous milestone events commencing with ICC Cricket World Cup interspersed with big festive calendar, and followed by several important state elections in Nov-Dec’23. These landmark events then culminate into the crescendo for General Elections of 2024. As 2QFY24 earnings season is set to begin, we see three important factors that would dominate investor conversations: 1 ) Politics: The busy election calendar will kick off in Nov-Dec’23 with four big state elections, which will then set the stage for the General Elections of 2024. While the pre-poll surveys so far indicated that the current regime would continue for an unprecedented third consecutive Loksabha term, we believe predicting an election outcome in India is always fraught with risk. Hence, markets are likely to remain volatile heading into the elections. That being said, history however is in favor of a pre-election rally. Since the last five consecutive Loksabha elections (i.e. from 1999 to 2019), Nifty has rallied 10-35% for six months until the announcement of election results (Nov-May period). 2) Interest rates globally have witnessed a sharp tightening in the last two years. Recently, the US 10Y yield has hardened 50bp to 4.8%, at a 16-year high, with narrative of further rate hike/yield hardening building up. This can put pressure on global growth and global equity valuations. Any change in this trend, either side, will have important implications for markets over the next couple of quarters. Equity markets would be keenly reacting to the rate/yield movements, especially Indian markets, given the expensive valuations prevailing in the broader mid-cap and small-cap segments. 3) Sector rotation: With the earnings outlook for Nifty and the broader MOFSL Universe remaining healthy and valuations of several sectors being at a premium to their long period averages (Industrials, Consumer Discretionary, Mid-Caps and Small-Caps), we expect the sector rotation in Indian equities to continue. Despite markets being close to their all-time highs, there are significant divergences in performance of large-caps vs. mid-/small-caps and across sectors. We believe that in the midst of volatility over next couple of quarters, sector rotation could be an important driver than the general market uptrend. For example in CY23YTD, PSU Banks have outperformed Private Banks while Healthcare has outshined the IT sector, and in Consumption – Auto and Discretionary sectors have outperformed Consumer Staples. We believe valuations will become an important driver for stock picking to drive outperformance given the divergence seen so far in CY23YTD. Some of the sectors, which are still trading at reasonable valuations include Banking, Auto, Healthcare and select large-cap IT stocks, in our view.

▶️The GIFT Nifty indicates a marginally negative start for the broader index with a loss of 87.5 points.

▶️GIFT Nifty futures stood at 19,682 points after making a high of 19,698 points.

🏕️US MARKET POSITIVE = 1.60%🔼

🏕️TCS -Q2 RESULTS = 11TH OCT🔼

🏕️HDFC BANK Q2 RES.= 15TH OCT🔼

🏕️CRUDE OIL PRICE DOWN =$85.0🔽

🏕️US DOLLAR PRICE UP =$83.19🔼

🏕️INDIA VIX VOLATILITY = 10.30🔽

🏕️FIIS SOLD = RS 90.0 CR🔽

🏕️DIIS BOUGHT = RS 783.0 CR🔼

🔰KEY FACTORS FTW: MARKET🔼

▶️The following key factors that will impact the market in coming days like

Q2 EARNINGS START (JULY-SEP-23)

CPI INFLATION DATA = OCT-12TH

FOMC POLICY MEETING = 11TH OCT-23

US IMPORT & EXP. DATA= 13TH OCT-23

EUROPE POLICY MEET.= 12TH OCT-23

CHINA INF. DATA=13TH OCT-23

CRUDE OIL PRICE = $85-$95

FIIS SELLING PRESSURE = RS 8400 CR

🔰ABB POWER LTD= STRONG BUY🔼

▶️Hitachi Electric’s Grid-eMotion Flash Charging is working on a technology that will enable charging of electric buses in 20 seconds.

▶️Passengers never have to wait for the bus to charge, information in the company’s website says.

🪫ABB POW- CMP = RS 3970.0

🪫TARGET PRICE = RS 5000.0

🪫TIME PERIOD = 12 MONTHS

🪫ABB SECTOR = POWER GENERATION

🪫RECOMMENDATION = STRONG BUY

🔰STOCKS RECOM.BY ICICI DIRECT🔼

🔥ABB POWER LTD

🔥NESTLE LTD & RELIANCE IND

🔥JSW ENERGY & HDFC AMC LTD

🔥MAYUR UNIQUOTERS LTD

🔥HINDALCO INDUSTRIES LTD

🔥HINDUSTAN AERONAUTICS LTD

🔥BIRLA CORPORATION LTD

🔥BHARAT ELECTRONICS & PCBL LTD

🔥DLF LTD & KARNATAKA BANK

🔥BANK OF BARODA & TITAN LTD

🔥LEMON TREE HOTEL & TAJ GVK

🔥FINOLEX CABLES & IND LTD

RECOMMENDATION= STRONG BUY

🔰NESTLE LTD: STOCK SPLIT & DIV.🔼

▶️Nestle India has informed exchanges that its board of directors will consider split of its existing equity shares on October 19.

✅CMP PRICE = RS 22900.0

✅TARGET PRICE = RS 25000.0

✅BOARD MEETING = 19TH OCT-23

✅BOARD PROPOSED = STOCK SPLIT

✅MARKET CAPITAL = RS 2.22L CR

✅RECOMMENDATION = STRONG BUY

▶️Retail investors who could not lay their hands on Nestle India shares given its high price have a ray of hope.

🔰RELIANCE IND: FOCUS 🔼

▶️ADIA invests ₹4,967 crore in Reliance Retail.

🇨🇭RELIANCE RETAIL MKT = 8.31 L CR🔼

🇨🇭ADIA INVEST IN RRVL = 4.97 K CR🔼

🇨🇭KKR INVEST IN RRVL = 2.07 K CR🔼

🇨🇭RRVL - NO OF STORES = 18500 🔼

🇨🇭RECOMMENDATION = STRONG BUY

▶️ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities.

🔰FIXED INCOME: RECOMMENDATION🔼

✅RBI FLOATING RATE BOND = 8.05% P.A

CORPORATE BONDS: RECOM.

🇨🇭IDFC FIRST BANK = 8.40% P.A

🇨🇭CHOLAMANDALAM INV.FIN = 8.40% P.A

🇨🇭BANK OF BARODA = 8.25% P.A

🇨🇭STATE BANK OF INDIA = 7.72% P.A

🇨🇭HDFC BANK = 7.80% P.A

🇨🇭LIC HOUSING FIN = 7.82

CORPORATE FIXED DEPOSIT

✅BAJAJI FINANCE = 8.35% P.A

✅SHRIRAM FINANCE = 8.50% P.A

✅POWER FINANCE NCD = 7.55% P.A

RECOMMENDATION = STRONG BUY

🔰10-YEAR US BOND YIELD = 4.80🔼

▶️In Jan 2022, the difference in 10 Year bond yield between the US and India was 5%

▶️Now the difference is 2.5%

▶️The higher bond yield in the US will push up the cost of capital everywhere.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd

“In sync with a sharp fall in Gift Nifty index, local benchmark indices are likely to start on a weak note in Monday trades. Investors will have to brace for volatility as there could be a knee-jerk spike in crude oil prices amidst impact of Israel-Hamas conflict. Oil futures have spiked more than 5% to above $87 per barrel following the outbreak of a conflict between Israel & Hamas, as a surging crude oil could impact domestic inflation and would see interest rates at an elevated level for a prolonged period. Keeping the mood bearish, the US bond yields have continued their upward bias as the 10-year treasury flared at 4.799%, while the yield on the 2-year Treasury has spiked to 5.085%, scaling a 16-year high.”

Deepak Jasani, Head of Retail Research, HDFC securities.

Indian markets could open lower, in line with mixed Asian markets today and despite higher US markets on Oct 06

U.S. stocks closed higher Friday, with the S&P 500 eking out a modest weekly gain, as investors assessed a monthly jobs report that showed both a blockbuster surge in jobs created along with a slowdown in wage pressures. For the week, the Dow slipped 0.3% while the S&P 500 edged up 0.5% and the Nasdaq gained 1.6%.

A blowout U.S. jobs report on Friday sparked a late-day rally on Wall Street as the data revealed a strong economy with moderating inflation but set aside fears of higher interest rates that caused bond yields to soar. A report Friday from the Bureau of Labor Statistics showed the U.S. economy created 336,000 jobs in September, far surpassing economists’ expectations for 170,000 new jobs. Also, the report said job gains in August and July were revised higher. Average hourly wages rose a mild 0.2% in September, bringing the 12-month rate of change through September to 4.2%, a slower pace than the prior month’s year-over-year rate of 4.3%.

Meanwhile, the yield on the 10-year US Treasury note climbed 6.8 basis points to 4.783%, rising for five straight weeks.

U.S. stock-index futures fell (~0.6%) and oil prices jumped (~4%) late Sunday, as investors were rattled by geopolitical uncertainty after Hamas launched a surprise weekend attack on Israel. The fallout in markets will likely be determined by whether conflict spreads to the rest of the Middle East region, with oil traders also shifting focus to Iran, which is both a major oil producer and supporter of Hamas.

Geo-political tension, rising oil price, US 10-Year bond surged to 16-year high and hawkish statement by the Reserve Bank of India, may open domestic bourses on a weak note. Global financial markets already rattled by elevated interest rates now face a fresh dose of geopolitical uncertainty following Hamas’s surprise attack on Israel. Saturday’s strike and Israel’s subsequent declaration of war threaten to unnerve markets, while a jump in crude oil price adds to concern about elevated inflation.

U.S. stock-index futures fell over 0.5% while Brent soared by 5%. Major equity gauges in the Middle East slid Sunday, led by a 6.4% drop on Israel’s benchmark TA-35 stock index, its biggest loss in more than three years. The US market will be closed today along with major Asian markets like South Korea, Japan and Taiwan. -- Vikas Jain, Senior Research Analyst at Reliance Securities

Som Distilleries in a notice to the exchanges said that it has shelved its QIP plans.

In relation to our intimation letter October 5, 2023, we wish to inform you that meeting of the Fund Raising Committee scheduled on October 10, 2023, stands cancelled. Further the Committee has at its meeting held today i.e. October 9, 2023, inter alia, resolved that it is not going ahead with the proposed QIP issue due to lesser amount of bids received towards its proposed QIP Issue. The Company shall evaluate the viability of a funds raise at a suitable time, the notice added.

The stock of ICE Make Refrigeration Limited has crossed Rs 1,000 crore market capitalisation on Friday. The company, which began its listing in NSE-Emerge, an SME platform in 2017 and subsequently migrated to its mainboard in 2020, hit a 52-week high of Rs. 648 per share on October 6. The stock climbed over 11 times since its listing in December 2017.

The company had hit the capital market with a price of Rs 57.

In the week ending October 6, the Benchmark indices, Sensex and Nifty 50 gained 0.45 per cent and 0.48 per cent and has thereby snapped its two-week losing streak. althoug not by much.

During the week, RBI maintained a status quo on repo rates. Sectoral indices such as BSE Consumer Durables (2.6 per cent), BSE Realty (1.9 per cent) and BSE IT (1.8 per cent) gained the most while indices such as BSE Power (2.5 per cent), BSE Metals (2.4 per cent) and BSE Oil and Gas (1.7 per cent) declined.

PVR Inox is likely to book an exceptional performance, in Q2FY24, championed by net box-office collections. More importantly, Bollywood, which was going through a lean patch, has staged a recovery, endorsed by multiple genre movies finding favor with audiences and Regional/Hollywood cinema making a significant contribution. Operational parameters—ATP and SPH—should improve, with advertising revenue also likely to bounce back. Broadcasters’ recovery is expected to be gradual, as advertisers step up spends. Subscription growth is expected to remain stable while both, Zee and Sun TV, would clock benefit from the performance of their movies Gadar 2 and Jailer.

EC to announce poll schedule for Madhya Pradesh, Chhattisgarh, Rajasthan, Telangana and Mizoram on Monday noon

Wipro Limited On Sunday held the 17th edition of the ‘Spirit of Wipro’ (SOW) run, which drew close to 40,000 participants across 140 locations.

The annual event, under the theme of “Ambitions Realized,” provided an opportunity for employees and their families, as well as partners and clients, to connect with one another, contribute to their communities, as well as celebrate successes.

IRB InvIT has informed the exchanges that its toll collection increased 9 per cent to Rs 79.427 crore in September 2023 against Rs 72.606 crore recorded September 2022.

DHAMPUR BIO

KPI GREEN

Godrej Properties Ltd. (GPL), one of India’s leading real estate developers, on Monday announced the opening of Taj The Trees at their flagship project and one of India’s most sustainably planned mixed-use developments - The Trees in Vikhroli, Mumbai. The hotel is entirely owned by Godrej Properties and will be managed by the Indian Hotel Companies Limited (IHCL) as a luxury Taj hotel.

How market will move this week. Here is view from Jayden Ong, Senior Market Analyst, APAC at Vantage.

Considering the Federal Reserve’s practice of tailoring future monetary policy decisions based on key economic indicators, namely employment metrics, inflation levels, and consumer spending patterns, the financial markets are placing a significant emphasis on U.S. non-farm payroll data. This data serves as a crucial gauge of the ongoing robustness of U.S. labour market demand, with a notable concentration in the service sector.

As a result of this strong labour market demand, market participants are currently anticipating that the Federal Reserve may opt to implement a 25-basis-point interest rate increase in its forthcoming November meeting. This anticipation has contributed to sustained upward pressure on the U.S. Dollar Index, while concurrently causing relative risk assets to experience a diminishing trend.

At present, the global economic systems are undergoing a phase of sustained expansion. This phenomenon has led central banks in various countries to uphold elevated benchmark interest rates. In response to this trend, market observers are making anticipatory assessments, positing that economies could potentially encounter the risk of deceleration, or even recession in the foreseeable future.

As a consequence of these forward-looking economic concerns, it is being envisaged that high-risk assets such as the S&P 500, crude oil, and cryptocurrencies may confront the impending hazard of depreciation. Meanwhile, assets traditionally regarded as safe havens, including gold, the U.S. dollar, and the Japanese yen, are expected to experience heightened demand.

In the near term, global markets are closely monitoring inflation rates across countries. The persistent rise in energy demand suggests that inflation is likely to continue its upward trajectory, with expectations of it remaining near the 2% mark until 2026. Consequently, central banks worldwide are inclined to maintain elevated interest rates, potentially elevating the risk of economic recession.

As inflation rates in various countries remain high, Foreign institutional investors (FIIs) are expected to extend their selling trend into October, as they commenced the month with cautious sentiment due to elevated U.S. bond yields

Is your tap on when you’re brushing your teeth or shaving? Most people would say “yes.” But, will you keep your air-conditioner or geyser on when not in use? Well, the answer will be “no” because there is a metre ticking and you have to pay the bill.

So, water is taken for granted and what you don’t value, you don’t conserve. Various estimates indicate that several gallons of water could be saved every day by doing simple things like closing the tap while brushing, shaving or smearing soap while bathing.

“Though it is very precious, water is the most neglected resource,” says Rajiv Mittal, Chairman and Managing Director of BSE-listed Va Tech Wabag (known as Wabag) Ltd, a Chennai-headquartered, Indian multinational, water technology firm that provides water treatment solutions.

WTI crude futures surged over 3 per cent to above $85 per barrel on Monday, recouping some losses from last week after a surprise attack by Hamas on Israel over the weekend started a conflict in the Middle East.

While the violence is contained in the region for now, analysts feared that geopolitical tensions could escalate globally amid reports that Iran was involved in planning the attacks. Meanwhile, the US oil benchmark plunged nearly 9 per cent last week as signs of weakening demand outweighed tightening supply.

EIA data showed that US gasoline stocks rose the most since the first week of 2022, and the four-week average for US gasoline demand reached its lowest point for this time of the year since 1998. High interest rates and slowing global growth also clouded the demand outlook. On the supply side, Russia allowed diesel fuel exports via ports again after a recent ban, but gasoline exports remained restricted.

Alternative investment funds (AIFs) are in a bind over the market regulator’s diktat to dematerialise units of funds with a corpus of ₹500 crore or more by October 31.

Less than five per cent of these funds have dematerialised their units, according to people in the know. Those that haven’t are still liasoning with investors for providing demat account details and do not have clarity on whether to freeze the account or suspend further subscriptions after the said deadline. Any such actions may commercially impact the AIFs and lead to outflows.

Buzzing stocks: Defence stocks (HAL, Mazagon Dock, Bharat Dynamics, BHEL, BEML), TCS, Bajaj Finserv, Reliance Ind, MCX, BSE, Coromandel Intel, Bharti Airel, Biocon, GOCL Corporation Nazara, RVNL, Sofcom Systems, Rolta India, Shriram Pistons, NCC, Vedanta

The Finance Minister has announced slashing of molasses. GST to 5 per cent from 28 per cent.

Vakrangee is in tie-up with JK Cement for sale of grey Cement through Vakrangee Kendra networks.

The Centre has cleared appointments of 12 executive directors for various state-owned banks including Bank of Maharashtra, Punjab national Bank, Punjab & Sind Bank, Bank of India, Indian Bank and Central Bank of India.

MCX and MCXCCL on the complaint of Chennai Financial Markets and Accountability (CFMA) regarding the new CDP was submitted to SEBI, after following due process. Subsequently, SEBI Technical Advisory Committee has recommended that MCX and MCXCCL may Go-Live with the CDP, developed by Tata Consultancy Services, and to intimate SEBI regarding the proposed date for Go Live.

Accordingly, SEBI has withdrawn its directions to MCX and MCXCCL to keep the proposed Go-Live of CDP in abeyance.

Shriram Pistons & Rings Limited’s acquisition of 75% shareholding in Takahata Precision India Private Limited (ultimate subsidiary of Takahata Precision Co. Ltd., Japan) through its wholly owned subsidiary SPR Engenious Limited, has been further delayed to November 9, due to unviable commercial reasons The acquision was originally scheduled to be completed on October 9.

The Board of Directors of Nazara Technologies Limited has approved the allotment of 71,42,856 fully paid up Equity Shares of Rs. 4 each, to Kamath Associates, NKSquared (Both Partnership Firms represented by its partners Nikhil Kamath & Nithin Kamath), SBI Multicap Fund, SBI Magnum Global Fund and SBI Technology Opportunities Fund worth Rs. 510 crore.

IDL Explosives Limited (IDLEL), a wholly-owned subsidiary of GOCL Corporation Limited, has bagged order from Coal India Limited, a Maharatna Company of the Government of India. Orders are worth an aggregate amount of Rs.766 crores for supply of Bulk Explosives over a period of 2 years.

The board of NCC has approved an increase of company’s borrowing powers from Rs 20,000 crore to Rs 35,000 crore. Besides. It has also approved reappointment mod ASN Raju as whole time director for an additional 5 years from May 1, 2024.

The board of Olatech Solutions has approved a bonus issue in the ratio of 17 fully paid -up equity share for every 20 shares held on record date, subject to approval of shareholders in the ensuing general Meeting of Company.

BSE is launching contracts in options on futures in precious metals and energy (WTI crude oil and Brent crude oil) contracts and futures contracts on base metals like copper, zinc, aluminium on October 9.

These commodity contracts will provide market participants, particularly corporates, value chain participants and foreign portfolio investors, an efficient way to manage their commodity price risk against volatility.

Oil prices jumped more than $4 a barrel in early Asian trade on Monday, as dramatic military clashes between Israeli and Hamas forces over the weekend deepened political uncertainty across the Middle East.

Brent crude rose $4.18, or 4.94%, to $88.76 a barrel, while U.S. West Texas Intermediate crude was at $87.02 a barrel, up $4.23, or 5.11%.

The surge in oil prices reversed last week’s downward trend - the largest weekly decline since March - in which Brent fell about 11% and WTI retreated more than 8% amid concerns about high interest rates and their impact on global demand.

Palestinian Islamist group Hamas on Saturday launched the largest military assault on Israel in decades, killing hundreds of Israelis and triggering a wave of retaliatory Israeli air strikes on Gaza that continued through Sunday. - Reuters

Gold prices rose more than 1% on Monday as dramatic clashes between Israeli and Hamas forces over the weekend raised the risk of a wider Middle East conflict and boosted demand for safe-haven assets like bullion.

* Spot gold jumped 1% to $1,850.87 per ounce by 0056 GMT, having hit its highest level in a week. U.S. gold futures climbed 1.1% to $1,865.20 per ounce.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 865.85 metric tons on Friday.

* Physical gold demand improved in some Asian hubs last week as a recent dip in prices attracted buyers, with premiums in India hitting a 17-month high as jewellers stocked up ahead of the festival season.

* Among other metals, spot silver gained 1.6% to $21.94 per ounce, platinum was up 0.6% to $881.83 and palladium rose 0.5% to $1,163.49 - Reuters

The National Company Law Tribunal (NCLT) has asked Swan Energy to make upfront payment as per the resolution plan for Reliance Naval and Engineering Ltd (RNEL). Swan is supposed to make an upfront payment of around ₹250 core as proposed in the resolution plan, but has not deposited the money even after the extended deadline ended on September 14. Read more

Palestine-based terror outfit Hamas’ deadly attack on Israel on Saturday and Israeli Prime Minister Benjamin Netanyahu’s consequent declaration of war is likely to affect India’s trade and diplomatic stance with the region. However, the seriousness of the impact will depend on how long the escalation continues, say experts.

“India’s trade with Israel, at about $10.7 billion in FY23, may be seriously impacted if operations at the three largest ports of Israel-Haifa, Ashdod; and Eilat are disrupted. These ports handle shipments in agricultural products, chemicals, electronics, machinery, and vehicles. India’s merchandise trade with Israel happens mostly through the Eilat port, located on the Red Sea. Fortunately, so far there is no report of port disruption. The real impact would depend on the duration and intensity of the war,” said Ajay Srivastava, former Indian Trade Service officer, and Founder, Global Trade Research Initiative.

U.S. stock futures slipped in Asia on Monday as the military conflict in the Middle East boosted oil and Treasuries, while the sizzling September U.S. jobs report raised the rate stakes for inflation figures later in the week.

A holiday in Japan made for thin conditions but the initial bid was for bonds and the safe harbours of Japanese yen and gold, with the euro the main loser. “The risk is higher oil prices, a slump in equities, and a surge in volatility that supports the dollar and yen, and undermine ‘risk’ currencies,” said analysts at CBA in a note. In particular, there was a chance supplies from Iran might be disrupted, they added. “Given the tightness already facing physical oil markets in Q4 2023, an immediate reduction in Iran’s oil exports risks pushing Brent futures above $US100/bbl in the short term.”

Israel pounded the Palestinian enclave of Gaza on Sunday, killing hundreds of people in retaliation for one of the bloodiest attacks in its history when Islamist group Hamas killed 700 Israelis and abducted dozens more.

Oil prices jumped more than $4 a barrel in early Asian trade on Monday, as dramatic military clashes between Israeli and Hamas forces over the weekend deepened political uncertainty across the Middle East.

Brent crude rose $4.18, or 4.94%, to $88.76 a barrel, while U.S. West Texas Intermediate crude was at $87.02 a barrel, up $4.23, or 5.11%.

Gold was also in demand, rising 0.8% to $1,848 an ounce . In currency markets, the yen was the main gainer though moves were modest overall. The euro dipped 0.3% to 157.44 yen , while the dollar dipped 0.1% to 149.14 yen . The euro also eased 0.2% on the dollar to $1.0566 .

The cautious mood was a balm for sovereign bonds after recent heavy selling and 10-year Treasury futures rose a sizable 14 ticks. Yields were indicated around 4.73% compared to 4.81% on Friday.