Share Market Highlights 12 October 2023: Sensex falls marginally; Nifty below 19,800; Infosys, Tech Mahindra among major losers

Infosys has revised its guidance, lowering it from 1-3.5 per cent to 1-2.5 per cent. The company reported a Profit After Tax (PAT) of Rs 6,212 crore. In terms of constant currency, Infosys achieved a 2.3 per cent growth in revenue, reaching Rs 38,994 crore. Additionally, the company announced an interim dividend of 18 per share.

Benchmark BSE Sensex declined in a volatile trade on Thursday, reversing the two-day rally, largely due to selling in IT stocks.

The 30-share BSE Sensex declined 64.66 points or 0.10 per cent to close at 66,408.39 points, with 14 of its constituents settling lower and 16 advancing. The index opened higher and touched a high of 66,577.60 points in early trade but later fell to a low of 66,342.53 points.

The broader Nifty of NSE also declined 17.35 points or 0.09 per cent to close below the 19,800-level at 19,794 points. It moved in a range of 19,772.65 points to 19,843.30 points during the day’s trading. Read more.

The rupee paused its two days of gains and settled 6 paise lower at 83.24 (provisional) against the US dollar on Thursday as rising crude oil prices dented the investor sentiment.

Forex analysts said early gains in the domestic currency on the back of the weak dollar were reversed by the subdued domestic equity markets and concerns over foreign funds withdrawal.

At the interbank foreign exchange, the rupee opened at 83.17 and then traded between the intra-day peak of 83.12 and the lowest level of 83.25 against the greenback. The local unit finally settled at 83.24 (provisional), registering a loss of 6 paise from its previous close. Read more.

nasscom in partnership with BCG today has launched a report titled “Seizing the ER&D Advantage: Frontiers for 2030”. As per the report, India remains a preferred destination for global Engineering Research and development (ER&D) sourcing, driven by its vast pool of digital talent, a rich and vibrant ecosystem, and a mature ER&D ecosystem. India will likely contribute 22% to the Global ER&D sourcing market by FY30. Software, Automotive, and Semiconductor sectors are expected to contribute 60%+ of India’s share of ER&D sourcing by FY30.

KS Viswanathan, Vice President (Industry Initiative) at nasscom, said, “India’s position in the global ER&D sourcing arena is truly unique, driven by our remarkable combination of ER&D innovation expertise, and ability to provide scalable talent. As we navigate the transformative megatrends in this space collaboration among government, industry, and academia becomes pivotal. Together, we need to establish robust infrastructure, craft effective policies, enhance ER&D skillsets, and provide industry-tailored training, thereby ensuring employability and the highest quality of research, boosting India’s position as the ER&D hub for the world.”

Quantum AMC announced the launch of a new fund offer (NFO) with Quantum Small Cap Fund. It opens for subscription on Monday, October 16, and closes on Friday, October 27, 2023.

The board of Hindustan Zinc to meet on October 20, 2023, to inter-alia consider and approve the Unaudited Financial results of the Company for the Quarterly ended September 2023.

The stock declines by 0.09% on the NSE, trading at ₹317.

Kintech Renewables stock is up by 2% on the BSE, trading at ₹6,883.10. The company had informed the exchange that consequent to and in terms of the fresh certificate of incorporation dated October 6, 2023 issued by the Registrar of Companies, Ahmedabad, the name of the Company stands changed to “SG Mart Limited”.

The Cellular Operators’ Association of India has countered the claims made by Indian start-ups on net neutrality, in the ongoing discussion on the need to regulate OTT players.

In a letter to the Telecom Regulatory Authority of India, the Association has argued that the start-ups’ appeal to TRAI was founded on falsehood and misinformation. Read more

Great Eastern Shipping Company Ltd (G E Shipping) delivered its 2006 built Supramax Dry Bulk Carrier “Jag Rohan” to the buyers. The vessel was contracted for sale in September 2023.

The stock is up by 0.99% on the NSE, trading at ₹865.

SBC Exports has received work order from Ministry of Electronics and Information Technology through NICSI, New Delhi, worth over ₹37 lakh.

The stock rises by 1.68% on the BSE, trading at ₹25.95.

Vipul Organics Limited has received the OEKO-TEX ECO PASSPORT for its entire pigment and Reactive Dyes product range for the textile industry, under the brand names of SunPrint and SunActive, respectively.

The stock is up by 6.83% on the BSE, trading at ₹154.90.

LTIMindtree stock declines by 1.86% on the NSE, trading at ₹5,147. The company had announced the initiation of a Comprehensive Community Development Programme (CCDP) in Subir Block of Dang District in Gujarat to improve the socioeconomic condition of the region.

Major gainers: Coal India (1.72%); BPCL (1.71%); Maruti (1.50%); NTPC (1.24%); Grasim (0.95%)

Major losers: Tech Mahindra (-3.08%); Apollo Hospitals (-2.19%); HCL Tech (-2.04%); TCS (-1.93%); Infosys (-1.92%)

Stocks advanced on BSE at 3 pm on October 12, 2023, were 2,161 against 1,473 stocks that declined; 142 stocks remain unchanged. Total stocks traded were 3,776. The number of stocks that recorded a 52-week high was 275, and those that hit a 52-week low was 20.

TIMKEN India stock inches up by 0.58% on NSE, trading at ₹3,077.70. The company’s Jamshedpur Plant Operations will be trimmed down from October 19 to 24 on account of physical verification of inventory and Durga Pooja festival.

EMS stock is up by 0.71% on the NSE, trading at ₹325.20, the company had received a contract worth ₹270.82 crore from the Office of Municipal Corporation, Jaipur Heritage.

Praveg stock trades at ₹546.95 on the BSE, up by 0.66%.The company had bagged order for developing and managing the resorts at Damanganga Garden Kachigam, Daman.

Maruti Suzuki India Ltd.’s shares were up by 1.39 per cent after the company commenced the export of its off-roader, the Jimny 5-Door, which is exclusively manufactured in India. The Jimny 5-Door will be shipped to various destinations, including Latin America, the Middle East, and African regions. Read more

Swan Energy stock rises by 3.47% on the NSE, trading at ₹304. The company has paid ₹50 crore as upfront payment, in line with a National Company Law Tribunal (NCLT) order.

JP Morgan’s recent announcement to incorporate Indian G-Sec bonds into the GBI-EM Global index suite, effective June 28, 2024, has ignited a wave of excitement and anticipation within the Indian financial landscape. Ranjitha Ajay - Assistant Professor, Finance, Great Lakes Institute of Management, Chennai & Rintu Anthony, Rajagiri Business School has opined that the decision to include Indian sovereign bonds, with a combined notional value of $330 billion, in this esteemed index is poised to yield a multitude of benefits, including reduced borrowing costs, enhanced stability for the Indian rupee, and an influx of foreign investments estimated at $20-30 billion, all of which could translate into heightened economic growth.

Additionally, they said that this development carries several compelling advantages for the banking sector. “In accordance with the Reserve Bank of India’s (RBI) regulations, banks within our financial system are mandated to invest in bonds primarily across three categories: Held to Maturity (HTM), Held-for-Trading (HFT), and Available-for-Sale (AFS). While bonds in the HTM segment are not available for sale until the redemption period, those in the HFT and AFS categories can be sold and are subject to marked-to-market losses. Consequently, banks must consistently set aside provisions for potential losses on their bond holdings should bond prices fall. This predicament arises from the inverse relationship between bond yields and prices, where rising interest rates lead to a fall in bond prices,”said Ranjitha Ajay.

In a significant move, the Indian government, through the DGFT, has simplified silver import regulations, expanding access beyond nominated agencies to include qualified jewellers designated by IFSCA. This liberalization, particularly through IIBX, is set to enhance trade avenues and align with the government’s goal of streamlining trade through IFSC.

The recent decision by the Directorate General of Foreign Trade (DGFT) to ease restrictions on silver imports in India marks a pivotal moment for the country’s trade dynamics. The move, allowing qualified jewellers designated by IFSCA to import silver, not only broadens the scope beyond traditional channels but also resonates with the government’s larger agenda of simplifying and enhancing trade operations through IFSC. This development is anticipated to invigorate India’s silver trade, offering new opportunities for traders and contributing to a more diversified and accessible import landscape. As the International Financial Services Centres Authority (IFSCA) steps into the picture, the silver market in India is poised for positive growth, aligning with broader economic objectives.

In conclusion, India’s progressive move to ease silver import regulations signals a transformative shift, fostering increased trade opportunities and aligning with the government’s streamlined trade goals through IFSC. This strategic decision is poised to revitalize the silver market, providing a more inclusive framework for traders and contributing to the nation’s economic objectives.

MedPlus Health Services stock declines by 1.05% on the NSE, trading at ₹767.40. The company’s board had approved to raise funds upto ₹1200 crore by way of issue of equity shares or any other equity linked instruments or securities.

Until the end of May this year, castor seed futures on the National Commodity and Derivatives Exchange (NCDEX) were on a steady decline. The contract dropped from about ₹7,600 to a low of ₹5,314 in the final week of May.

However, it saw the beginnings of a recovery in June. But, after reaching ₹6,450 towards the end of July, the rally exhausted and the contract slipped. Castor seed futures is currently hovering around ₹6,000.

Pricol stock is up by 2.30% on the BSE, trading at ₹335.60, after it announced a technology and supply partnership with Heilongjiang Tianyouwei Electronics Co Ltd (TYW).

Maruti Suzuki India stock is up by 1.41% on the NSE, trading at ₹10,558.75. The company had started exports of its Jimny 5-Door. The vehicle will be shipped to destinations including Latin America, Middle East, and Africa regions

Morarjee Textiles Ltd informed the exchange that Urvi A. Piramal has submitted her resignation as a Chairperson of the Board and Non-executive Non-Independent Director of the Company with immediate effect on October 11, 2023.

The stock is down by 1.27% on the BSE, trading at ₹24.01.

Signatureglobal (India) has reported 64.92% growth in H1FY24 collections at ₹13,274.58 million. The stock inches up by 0.60% on the NSE, trading at ₹505.80.

Sula Vineyards stock rises by 1.94% on the NSE, trading at ₹475.60 after it announced double-digit Q2 & H1 FY24 sales growth.

Shilpa Medicare stock is up by 2.74% on the NSE, trading at ₹346.70. The company had received approval from the Office of the Directorate of Ayurveda and Unani Services (division of the Ministry of Aayush) for the manufacture and sale of Oral Mucositis Spray a treatment option made available for the first time in India under the brand name ORAAL.

Route Mobile stock rises by 1.50% on the NSE, trading at ₹1,579.45. The company through its subsidiary Route Mobile (Bangladesh) Limited had partnered with Robi Axiata Limited in Bangladesh as a Technical enabler and Sales partner for RCS (Rich Communication Service) Business Messaging.

JSW Steel stock is up by 0.61% on the NSE, trading at ₹782. The company had been declared as a “Preferred Bidder” from the Office of the Director, Department of Mines and Geology, Government of Karnataka, for Jaisinghpura North Block.

Techknowgreen Solutions Ltd’s shares were up by 19.99 per cent after the company bagged a work order from Gramercy Trade Industries Pvt Ltd in Navi Mumbai. The contract, valued at Rs 5.3 crore, involves the disposal of radioactive spent catalyst and the safe closure of the company. Read more

Vedanta stock is down by 0.64% on the NSE, trading at ₹226.20. India Ratings and Research had downgraded Vedanta Group’s Long-Term Issuer Rating to ‘IND AA-’ from ‘IND AA’, while maintaining a negative outlook, citing increased liquidity risk and reduced financial flexibility.

HDFC Asset Management Company reported its net profit for the quarter ended September 2023 at ₹437.56 crore as against ₹364.13 crore in the previous year. The stock trades at ₹2,747 on the NSE, down by 0.01%.

KP Energy Limited’s shares were up by 4.34 per cent after the company received an order from Aditya Birla Renewable Energy Limited for the development of a 23.1MW wind-solar hybrid power project. This project consists of 23.1MW wind capacity and 11MW of solar power, contributing to India’s renewable energy initiatives.

The board of Computer Age Management Services has approved grant of 4,30,000 stock options (4, 30,000 equity shares of ₹10 each of the Company). The stock surges by 7.12% on the NSE, trading at ₹2,587.

Electronics Mart India Ltd has commenced the commercial operation of a new Multi Brand Specialized Store under the brand name ‘KITCHEN STORIES’ in New Delhi. The stock inches up by 0.57% on the NSE, trading at ₹149.30.

Mphasis has been named as the Digital Consulting Partner of the International Cricket Council (ICC) Men’s Cricket World Cup 2023. The stock is up by 0.43% on the NSE, trading at ₹2,474.80.

Leading fixed income platform Jiraaf (owned by AI Growth Pvt Ltd) has raised $8.7mn in equity as part of Series B funding round. The round was co-led by Accel and Harmony Partners. It also saw participation from Capital A & other angel investors.

According to RBI, ~180 INR trillion is currently kept in fixed deposits, current accounts, and savings accounts. Growth in demat account holders (124mn currently) over the last five years show increasing penetration of other financial investment products. With continued education and awareness, this penetration is expected to increase significantly as customers participate into diverse asset classes to generate wealth. Jiraaf is aiming to build and support investor portfolio with alternative fixed income products.

Founded in September 2021 by Saurav Ghosh and Vineet Agrawal, Jiraaf curates and offers fixed income investment opportunities through a customer friendly digital platform. The startup is on a mission to democratize fixed income in India. The platform offers diverse products including treasury bills, corporate bonds, asset leasing and venture debt which allows an investor to build a portfolio between 7% to 18% yield with a tenure ranging from 30 days to 3 years. Jiraaf has established itself as a market leader with more than 125,000 registered users. It has originated over INR 2,300 crores worth of investments till date and successfully repaid INR 1,500 crores of capital back to customers with zero defaults till date.

Saurav Ghosh, Co-Founder at Jiraaf, said: “We are thrilled and humbled by the trust from our customers, investors and partners. Over the last 2 years, our endeavour has been to enable investors to deepen their fixed income portfolio by curating high quality opportunities and making them easily accessible. We have been able to build a robust tech platform that allows seamless transaction and portfolio tracking, making Jiraaf the first port of call for anything fixed income. We are fortunate to have customers building their credit portfolio on Jiraaf by transacting more than 10 times in the first 6 months and expanding their portfolio. The fund infusion will support our commitment towards bringing high quality fixed income instruments in a transparent and convenient manner.”

Client caution pulling down growth; deal wins robust:

TCS reported another quarter of flattish q-q CC revenue growth missing the Bloomberg consensus (BBGe) and our estimates. Solid deal wins in recent quarters did not aid revenue growth as customers continue to reassess tech spends with low RoIs. Although TCS does not see any incremental project completion hurting revenue growth in 2HFY24, the timing of a demand recovery stays unclear. Subsiding macro concerns is key to growth recovery as deal signings (USD11.2b, book-to-bill: 1.55x, BSNL: USD1b+) remain strong. Despite sluggish revenue growth, EBIT margin expanded q-q beating BNPPe/BBGe. TCS is confident of further margin expansion with cost reduction, lower sub-contracting and better utilisation as key levers.

2QFY24: Revenue missed but PAT was in line as margin beat:

2Q CC revenue was up only 0.1% q-q (BNPPe: 1.3%) but EBIT margin expanded c110bps q-q (24.3%; BNPPe: 23.9%; BBGe: 23.9%) aided by productivity, lower sub-contracting, higher utilization (100bps) and lower discretionary expenses (35bp). Headcount fell 1.0% q-q and 1.2% y-y and attrition was down 290bps q-q to 14.9% (down 520bp in the last two quarters).

UK, Manufacturing and Energy remain revenue drivers:

USD revenue was steady q-q in the UK (+0.4%), and muted in North America (-0.8%), APAC (-0.2%), Continental Europe (-0.2%) and India (-0.2%). Among verticals, q-q USD revenue growth was again led by manufacturing (+2.2%) and Energy, Resources and Utilities (+1.6%) while Consumer Business (-1.5%), Communication (-1.6%), Life sciences (-1.1%) and Technology (-1.4%) were weak. BFSI (+0.1%) recovered slightly. The board recommended an interim DPS of INR9 and a buyback of USD2b (1.3% of market-cap).

Growth recovery getting pushed out; INFO our sector top pick

We cut our FY24-26E EPS by 2-3% as we bake in 2Q results and management commentary. Our DCF-based TP falls by c3%.

Hero Motocorp

Rs2,973.15 - BUY

Stock factors in only 5% free cash flow CAGR

We upgrade Hero Motocorp to BUY (from Underperform) as we raise earnings estimates by 7-10% in FY24 and FY25 led by higher realizations and higher EBITDA margin assumptions. Although Hero is losing market share, its average realizations are likely to improve as it gains share in premium motorcycle segment. Stock is attractively priced at 14X P/E on FY25 with a dividend yield of 5%. Raise target price to Rs3,701 (from Rs3,142 earlier).

Valuation details

We use an SOTP methodology for Hero MotoCorp, valuing its standalone business using DCF and then adding the company’s stakes in Hero Fincorp and Ather Energy. Our WACC assumption is 11.725% based on a 7.00% risk-free rate, 5.25% risk premium and adjusted beta of 0.90 (based on last 10-year regression of price versus NSE). We model a 4% terminal growth rate.

Investment risks

Key risks are higher-than-expected competitive intensity, motorcycle share loss, and slower pick up electric vehicle segment. A faster-than-expected recovery in industry volumes and market share gain provides upside potential.

TCS

IT Services

CMP(₹): 3,610 Fair Value(₹): 3,760 Sector View: Neutral NIFTY-50: 19,811

TCV and margin uptick provide solace in a weak quarter TCS reported weak qoq growth of 0.1% in c/c, a tad lower than expectations.

Highlights were strong TCV powered by two mega deals and healthy 110 bps qoq margin uptick. The near-term outlook is weak and disappointing but does not dent hopes for a better FY2025. The new CEO has not initiated any major change except for a reversion to vertical-based organizational structure. The stock trades at premium valuations, justified but limits significant upside in the near term. We broadly maintain EPS estimates and cut revenue growth assumption (ex of BSNL deal). Maintain ADD at an unchanged FV of Rs3,760.

• Plastiblends India (13.46%)
• Cupid (13.36%)
• GHCL (11.28%)
• Premier Polyfilm (11.20%)
• Network 18 (10.66%)

DCW Ltd has provided an update on mechanical breakdown of CO2 gas compressor in Soda Ash Plant. The new parts for the compressor from the Original Equipment Manufacturer (OEM) have failed to restore the production back to 100%.

The stock trades at ₹58.85 on the NSE, down by 0.34%

Life Insurance Corporation has informed that its shareholding in MOIL Ltd has diluted from 9.012% to 6.931% of the paid-up capital of the said Company.

LICI stock rises by 1% on the NSE, trading at ₹643.70. MOIL stock jumps 8.45% on the NSE, trading at ₹248.95.

KP Energy has received new order from Aditya Birla Renewable Energy Limited for development of Balance of Plant of 23.1MW wind capacity forming part of the wind-solar hybrid power project (comprising 23.1MW wind and 11MW Solar) to be connected to existing 140MW power evacuation facility at Fulsar PSS.

The stock declines by 1.94% on the BSE, trading at ₹560.60.

Antony Waste Handling Cell has informed commissioning of waste to energy power plant and commercial sale of power to PCMC (Pimpri Chinchwad Municipal Corporation). The stock is down by 0.69% on the NSE, trading at ₹393.05.

Passenger vehicle (PV) retail sales grew by 6.19 per cent year-on-year (YoY) to 18,08,311 units in the first half of this financial year (H1FY24), as compared with 17,02,905 units in the corresponding period last fiscal year.

VJ Kurian has been appointed as the non-executive part time chairman of the Thrissur based South Indian Bank with effect from November 2 to March 22, 2026.

According to a regulatory filing to stock exchanges, the Reserve Bank of India has conveyed its approval for the appointment.

Kurian will succeed Salim Gangadharan, who will be retiring as non-executive part-time chairman of the bank on November 1 after completion of his term.

Route Mobile Limited’s shares were up by 0.80 per cent after the company reported deepening its collaboration with Robi Axiata Limited in Bangladesh. Through its subsidiary Route Mobile (Bangladesh) Limited, Route Mobile is set to become the Technical Enabler and Sales Partner for Rich Communication Service (RCS) Business Messaging for Robi. Read more

• Lupin (2.44%)
• Auro Pharma (2.34%)
• Natco Pharma (1.31%)
• Alkem (1.19%)

The National Company Law Appellate Tribunal (NCLAT) has approved the resolution plan of Anirudh Agro Farms Limited (AAFL) to acquire for a consideration of about ₹150 crore. The Hyderabad-based company has infused the requisite funds into the hospitality venture as per the resolution plan approved by the tribunal. Read more

Electric vehicle (EV) makers, including Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric Technologies, have deposited around Rs 312 crore in penalties with the Ministry of Heavy Industries (MHI) for violating guidelines under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Read more

Stocks advanced on BSE at 12 noon on October 12, 2023, were 2,225 against 1,246 stocks that declined; 161 stocks remain unchanged. Total stocks traded were 3,632. The number of stocks that recorded a 52-week high was 243, and those that hit a 52-week low was 14.

Happiest Minds Technologies Ltd is recognized among Top 50 India’s Best Workplaces for Women 2023 list released by Great Place to Work. The stock is down by 0.40% on the NSE, trading at ₹854.

Sunrise Efficient Marketing Ltd has opened a new branch in Ahmedabad. The office at Ahmedabad will cover major industrial areas and will cater other markets of north Gujarat, Saurashtra, Kutchh, Nadiad Anand & Baroda as well. The stock rises by 1.44% on the BSE, trading at ₹105.50.

Plastiblends India stock jumps by 12.87% on the NSE, trading at ₹268. The company reported its net profit for the quarter ended September 2023 at ₹9.52 crore as against ₹4.20 crore in the previous year (September 2022).

Groww active user base: 66.3 Lakh

Zerodha active user base: 64.2 Lakh

Glenmark Pharmaceuticals shares were up by 1.15 per cent after the company’s wholly owned subsidiary Ichnos Sciences Inc. has inked an exclusive worldwide licensing agreement with Astria Therapeutics. Under this agreement, Astria Therapeutics gains global rights to develop and commercialise Ichnos’ OX40 antagonist monoclonal antibody portfolio, including Telazorlimab and its subsequent molecules, for use in inflammatory and immune diseases. Read more

Aurionpro Solution Ltd.’s shares gained 1.28 per cent after the company announced acquisition of Omnifin from AS Software Services Pvt. Ltd. The deal, valued at approximately ₹82 crore, includes all assets, liabilities, intellectual properties, and over 150 employees.

Abhijit Mittra, CEO, Managing Director of AS Software Services Private Limited, said, “We are delighted with this deal and are excited to be part of the Aurionpro family as we believe we share common values and culture. We can leverage Aurionpro’s market position and capabilities to take this business to newer markets and expand our share in this rapidly growing market.” Read more

Sterlite Technologies Ltd has collaborated with Hygenco, a homegrown green hydrogen solutions provider, for the supply of Green Hydrogen to its manufacturing plants. The stock rises by 3.08% on the NSE, trading at ₹162.25.

Lloyds Metals and Energy Ltd has incorporated a new 100% wholly-owned subsidiary by the name Lloyds Surya Private Limited. The stock is up by 1.83% on the NSE, trading at ₹605.

JTL Industries reported its net profit for the quarter ended September 2023 at ₹27.91 crore as against ₹20.90 crore in the previous year. The stock trades at ₹234.15, down by 0.28% on the NSE.

Major gainers: MMTC (14.90%); MOIL (12.83%); Network 18 (9.13%); GMDC (8.48%); ASTER DM (6%)

Major losers: Laxmi Organics (-4.27%); TD Power Systems (-3.57%); DCM Shriram (-2.14%); Policy Bazaar (-2.06%); JB Chemicals (-1.85%)

• COMEX Gold surpasses $1890/oz as Fed officials advocate a cautious approach to tightening.
• WTI Crude drops below $83/bbl on reports of potential easing tensions with Iran.
• LME base metals remain flat as investors await new stimulus from China.
• China’s sovereign wealth fund increases stake in banks, hinting at efforts to stabilize the stock market.
• Today’s market focus: UK GDP, US jobless claims, and crucially, expected easing in US CPI for September.

Techknowgreen Solutions has received work order from Gramercy Trade Industries Private Limited (worth ₹53 Million {Inc. of Taxes}) for disposal of radioactive spent catalyst and safe closure of company.

The stock jumps by 12.37% on the BSE, trading at ₹158.55.

Nifty 50 and Sensex have edged down about 0.14 per cent each after opening higher. Nifty is trading at 19,786, and the Sensex at 66,384.

Support for the Nifty is at 19,750. If it sustains above this support, a rise to 19,850 is possible during the day. The level of 19,850 has been capping the upside. So, a break above 19,850 would be needed for the Nifty to gain momentum, and extend the upside to 20,000.

The possibility of a fall to 19,720-19,700 will come into the picture on a break below 19,750.

Crompton Greaves Consumer Electricals has announced the launch of its product - CAVELO - under the Well Glass (Industrial Lighting) category. The stock inches up by 0.40% on the NSE, trading at ₹300.90.

Hybrid mutual funds are usually pitched when there is a high possibility of volatility in the equity asset class, or to lure risk-averse investors uncomfortable with high exposure to pure equities. But with many hybrid funds having a 65-80 per cent equity exposure, thanks to the obsession with the equity taxation aspect, many hybrids are ‘off-balance’. Read more

Cipla shares trade at ₹1,162.15, down by 0.84% on the NSE after the company received EIR report from USFDA following inspection at InvaGen manufacturing facility in Central Islip, Long Island, NY, USA.

Owing to a relatively slower acute season salvaged to an extent by a recovery in September 2023 (~9% yoy growth), the Indian pharma market’s (IPM’s) growth was relatively subdued at 7% yoy in 2QFY24. On a four-year basis, IPM reported an 8.9% sales CAGR in 2QFY24. Although we continue to bake in an 8-15% organic domestic sales growth in FY2024E for our coverage—largely driven by pricing, new launches and inorganic forays—the recent weakness can play spoilsport. Even as improved US generics pricing is a respite, a sustained momentum in domestic sales is critical to drive overall growth for our formulations coverage. Sun, Mankind and Cipla are our preferred picks in the pharma sector.

Knowledge Marine & Engineering Works has received work order from Paradip Port Authority worth ₹5.02 crore. The stock trades at ₹1,491 on the BSE, up by 0.53%. Read more

Aster DM Healthcare stock rises by 5.11% on the NSE, trading at ₹339.65. Aster DM Healthcare (Trivandrum) Private Limited, a wholly owned subsidiary of the Company recently entered into lease Agreement for setting up of new Hospital block and expand Aster Whitefield Hospital in Bengaluru.

Gold held on to the gains it made this week ruling above $1,875 an ounce in Asian trade. At 10.15 hours IST, it was quoted at $1,877.33 an ounce as investors awaited the US Fed outlook on monetary policy and the economic outlook. Silver was subdued at $22.14 an ounce.

Plaza Wires made its stock market debut on October 12, 2023, by listing at Rs 76 per share, a premium of 42% to its IPO price band of Rs 51–54 per share. This is in line with expectations, given the strong oversubscription of the IPO and the company’s strong fundamentals.

Plaza Wires is a well-managed company with a strong track record of growth. It is a leading manufacturer of wires and cables, with a wide product range and a strong customer base. The company has a strong financial performance, with consistent revenue and profit growth in recent years. Though the IPO size was small, it received an amazing response from investors. Investors may consider booking profit after this listing, while those who are looking for a long-term investment should maintain a stop-loss of Rs. 68.

HCL Technologies will announce its July-September quarter results for fiscal 2023-24 (Q2FY24) on Thursday, October 12 along with its IT peer Infosys.

We believe that the company’s revenue is poised to rise by 1.50% on QoQ basis, reaching ₹26,680 Cr, showcasing steady growth from the previous ₹26,287 Cr.

Our optimistic outlook extends to the company’s operational performance, with the expectation of a robust 5.05% increase in operating profit on a QoQ basis, projecting it to reach ₹4,685 Cr compared to the prior quarter’s ₹4,460 Cr.

In terms of the bottom-line, we foresee a promising 4.5% QoQ increase in profit after tax, with an estimated figure of ₹3,690 Cr, as opposed to the previous ₹3,531 Cr.

The stock has gone up by 11.65% during the previous three-months (from ₹ 1,115 to ₹ 1,245) while the Nifty IT index rose 11% in the same timeframe.

The share price of HCL Technologies reached a new 52-week high last month as a result of the signing of a multiyear Managed Public Cloud Services contract with German technology and high-tech industrial giant Siemens AG.

We expect HCL Tech to have a mild downward bias post results with an expected range of 1225-1270.

Infosys Q2(FY24)

The second largest IT firm in India, Infosys is preparing to announce its Q2 results for FY24 on Thursday.

We believe that the company’s revenue is poised to rise by 1.50% on QoQ basis, reaching ₹38,503 Cr, showcasing steady growth from the previous ₹37,933 Cr.

Our optimistic outlook extends to the company’s operational performance, with the expectation of 1.34% increase in operating profit on a QoQ basis, projecting it to reach ₹8,089 Cr compared to the prior quarter’s ₹7,982 Cr.

In terms of the bottom-line, we foresee a promising 5.42% QoQ increase in profit after tax, with an estimated figure of ₹6,267 Cr, as opposed to the previous ₹5,945 Cr.

The stock has gone up by 10.80% during the previous three-months (from ₹ 1,348 to ₹ 1,494) while the Nifty IT index rose 11% in the same timeframe.

We expect Infosys to have an upward bias post results with an expected range of 1470-1535.

Benchmark indices Sensex and Nifty erased early gains to trade lower on Thursday as IT shares declined after TCS stated that headwinds continue for the sector amid a sluggish economic climate.

The 30-share Sensex opened higher and rose further by 104 points to hit a high of 66,577.60 as banking, auto and metal shares advanced in line with positive global markets.

However, the gains were offset by losses in IT shares, dragging to the 30-share index down by 84.16 points or 0.13 per cent to 66,388.89 at 9.50 AM.

The broader Nifty also retreated from early highs to trade 23.70 points or 0.12 per cent down at 19,787.65. It moved between a high of 19,843.30 and a low of 19,784.55 in morning trade.

Shares of India’s only listed wine producer Sula Vineyards are up 2% to Rs 476 in early trades after the company reported double-digit sales growth in Q2 in a sales update.

Strong premiumization trend continues. Q2 Net Revenue up ~11% YoY; H1 Net Revenue up ~15% YoY. Elite and Premium Own Brands lead the way; Q2 up ~18% YoY; H1 up ~24% YoY. Its wine tourism business also showed decent revenue uptick.

The company said it is anticipating a strong harvest once again despite the irregular monsoons.

Strong opening in the Asian markets, fourth consecutive days rally in the US market, less hawkish statement by the US Fed in its minutes of meeting, mixed bag Q2 results announced by TCS and cooling down US 10-Year bond yield and oil price, may open domestic bourses on a positive note.

Both Asian and US markets gained up to 1% after the US Fed officials agreed that policy should remain restrictive for an extended period but acknowledged that they need to balance the risk of inflation. As a result, US 10-Year bond Yield further declined by 10bps to close to a 2-week low at 4.5% despite September PPI (WPI) data reported above estimate. US Dow Future is up 0.2% ahead of CPI (Inflation) data to be released today along with India and the European region.

Gift Nifty is trading flat to negative while Nifty soared over 0.5% yesterday led by cement and auto stock. Positive sentiment in the market due to favorable micro data, strong festival demand and impressive quarterly business earning date by corporate will be positive for the market sentiment. Any decline will be a good buying opportunity. Focus on IT stocks as tech majors Infosys and HCL Tech announce Q2 results today.

Oil – Rising US oil inventory and minimum impact of Israel-Hamas war’s effect pulled down oil price by 2% to $85/bbl.

Gold – Gold rose to the highest this month at $1975/ounce as traders digested the minutes of a key Federal Reserve meeting for cues on the interest-rate path

NIFTY-50 OUTLOOK

NIFTY-50 has closed at 3 weeks high above the 20 day average and sustenance above these would swiftly move higher near to all time high.

On the downside the near term support would be at 19,550-19,625 levels which is the average closing of the last 3 weeks followed by 19,400 levels.

The key technical indicators have turned positive trending above the averages in line with the strong up move.

Highest call OI is at 20,000 strike while on the downside the highest put OI is at 19,800 for the weekly expiry.

BANK NIFTY OUTLOOK

BANK NIFTY opened higher on the back of positive global cues, filled the intraday gaps and again recovered 200 points from the day’s low exhibiting strength led by private banks.

The double bottoms near 43,800 levels would act as strong support and the band of averages at 44,700 levels crossover will be a breakout to test the higher range of 45,000 levels.

The key technical indicators have moved up sharply on multiple time frames from the oversold levels and could gain traction in the coming days.

Bank Nifty 45000 CE has the highest OI while on the downside the strike has moved to 44,500 for the put options OI.

The rupee stayed on the upward track for the third day in a row, appreciating by 4 paise to 83.14 against the US dollar in early trade on Thursday amid easing crude oil prices and a weak American currency.

Subdued sentiments in the domestic equity markets and concerns over foreign funds withdrawal capped a sharp gain in the Indian currency, forex analysts said.

At the interbank foreign exchange, the rupee opened at 83.17 and then traded between the range of 83.13 to 83.17 against the greenback. The Indian unit later traded at 83.14 against dollar, registering a gain of 4 paise from its previous close.

IndusInd stock inches up by 0.85% on the NSE, trading at ₹1,433.30. This follows the RBI’s approval to SBIMF for acquiring up to 9.99% of the paid-up share capital or voting rights in IndusInd Bank.

KPI Green Energy stock declines by 1.55% on the NSE, trading at ₹871.70. The company’s board had considered and approved the acquisition of 9,990 equity shares of KPark Sunbeat Private Limited; and issuance of the equity shares by way of preferential issue on private placement basis.

The Minister for Petroleum & Natural Gas, H. S. Puri, is to launch the 12th round of bidding for city gas distribution (CGD) networks in the North-East and Jammu and Kashmir (J&K) today. Read more

RVNL stock inches up by 0.30% on the NSE, trading at ₹165.70 after the company emerged as the lowerst bidder of contract from Northeast Frontier Railway /Con.

Shakti Pumps stock rises by 2.44% on the NSE, trading at ₹912. The company’s board had approved to make investments of ₹114.29 crore in the wholly-owned subsidiary, Shakti EV Mobility Private Limited, in one or more tranches, in the next five years.

TCS stock declines by 1.31% on the NSE, trading at ₹3,562.45. The company reported its revenue for the quarter ended September 30, 2023, at ₹59,692 crore, up by 7.9% y-o-y.

Aurionpro has announced purchasing Omnifin, loan management system catering to 45+ banks and financial institutions in the Indian domestic market, from A S Software Services Pvt. Ltd, a company based in NOIDA, India.

Aurionpro Solutions stock trades at ₹1,395.10 on the BSE, up by 0.28%.

Private equity firm BPEA EQT and Ontario Teachers’ Pension Plan Board are among firms considering a deal to acquire Aster DM Healthcare Ltd. assets including its India business, according to people familiar with the matter. Read more

Pricol shares up by 2.16% on the BSE, trading at ₹335.15 after entering into a co-operation agreement with Heilongjiang Tianyouwei Electronics Co, Ltd.

HCL Technologies (HCLTech) is expected to report single digit growth in both net profit and revenue for the second quarter ending September 30, say analysts.

The company’s constant currency revenue growth is seen at 1.3 per cent, as compared to the negative 1.3 per cent it reported in the first quarter (Q1). Read more

Major gainers: Hindalco (1.67%); BPCL (1.40%); IndusInd (1.26%); Adani Enterprises (1.11%); Grasim (1%)

Major losers: TCS (-1.22%); Dr Reddy (-0.71%); Tech Mahindra (-0.68%); Bharti Airtel (-0.60%); Infosys (-0.57%)

Adani Ports and Special Economic Zone Ltd has announced the results as of the Early Tender Date with respect to its previously announced offer to purchase for cash up to US$195,000,000 in aggregate principal amount of its outstanding 3.375% Senior Notes due 2024 from each registered holder.

Crude oil futures traded lower on Thursday morning as an industry report indicated an increase in the crude oil inventories in the US. At 9.19 am on Thursday, December Brent oil futures were at $85.53, down by 0.34 per cent; and November crude oil futures on WTI (West Texas Intermediate) were at $83.10, down by 0.47 per cent. October crude oil futures were trading at ₹6924 on Multi Commodity Exchange (MCX) in the initial trading hour of Thursday morning against the previous close of ₹7017, down by 1.33 per cent; and November futures were trading at ₹6825 as against the previous close of ₹6912, down by 1.26 per cent.

HDFC Asset Management Company, a subsidiary of HDFC Bank, is set to report its earnings for the quarter ended September 2023 on Thursday.

HDFC Asset Management Company has reported an increase of 22 per cent in average asset under management of Rs 5.25 lakh crore (excluding fund of fund) in September quarter against Rs 4.29 lakh crore in same period last year.

It is expected to report a revenue of ₹629 crore, registering a growth of 16 per cent year-on-year, according to Yes Securities report.

The third largest fund house is expected to register an 11 per cent increase in YoY net profit at ₹404 crore in the quarter ended September 2023. At the operating level, EBITDA is likely to grow 17 per cent to ₹472.2 crore year-on-year, according to Yes Securities.

Overall AUM for four listed asset managers, namely Aditya Birla Sun Life AMC, UTI AMC, HDFC AMC and Nippon Life AMC, has seen growth in August 2023 compared with June 2023 levels. The share of equity AUM has also improved sequentially for all four asset managers, as per Yes Securities.

Indian benchmark indices, Sensex and Nifty, made a marginal opening gain on Thursday, in line with global markets responding to the decrease in oil prices. Attention was particularly directed towards the information technology sector due to Tata Consultancy Services’ Q2 results.

At 9.16 a.m., the BSE Sensex, comprising 30 shares, advanced by 70.61 points to reach 66,543.66, while the NSE Nifty gained 22.35 points to reach 19,833.70. Among Nifty stocks, Power Grid, NTPC, JSW Steel, HCL Technologies, and Wipro experienced gains, while Mahindra & Mahindra, Maruti, Hindustan Unilever, and Bajaj Finserv lagged.

IT stocks took the spotlight following TCS’s announcement of weaker-than-expected Q2 revenue and a proposed share buyback worth Rs 17,000 crore. Infosys and HCLTech are set to reveal their results today.

According to Mandar Bhojane of Choice Broking, on the daily chart, the Nifty index continues to exhibit a bullish trend, maintaining its position above the channel breakout level. The positive trend is expected to persist as long as the index remains above the 19,800 level. On the upside, there is potential for the index to extend its gains towards the 20,000 mark. However, if it falls below 19,550, we may witness a period of consolidation.

Domestic investors are eagerly awaiting India’s September inflation data, with expectations of a decline to 5.50%, within the Reserve Bank of India’s acceptable range. Meanwhile, Wall Street reported gains, and the anticipation of U.S. September retail inflation data on Thursday holds significance for future Federal Reserve policies. Asian markets began the day on a positive note.

Oil prices continued to fall after Saudi Arabia, a prominent OPEC producer, vowed to stabilise the market following recent spikes due to Middle East conflicts. Brent crude futures, which had surged to $89 per barrel on Monday, eased to $85.50 in Asian trading hours. This dip in crude prices is beneficial for commodity importers like India.

Foreign institutional investors (FIIs) extended their selling streak for the 16th consecutive session on Wednesday, divesting Indian shares valued at a net Rs 422 crore.

The Sensex and Nifty indices are poised to open flat today, as indicated by GIFT Nifty trends, which are suggesting a gain of 2 points.

Major Wall Street indexes closed higher following the release of cautious Federal Reserve meeting minutes, fueling hopes of stable interest rates. Positive global cues and moderating US bond yields have bolstered domestic markets. Stable oil prices amid the Israel-Palestine conflict have shifted focus to the global macro-economy. If US Treasury yields remain stable, it could promote risk-on strategies in global equity markets.

In the daily chart, the Nifty index continues to exhibit a bullish trend, maintaining its position above the channel breakout level. The positive trend is expected to persist as long as the index remains above the 19,800 level. On the upside, there is potential for the index to extend its gains towards the 20,000 mark. However, if it falls below 19,550, we may witness a period of consolidation.

Foreign institutional investors (FII) offloaded shares worth Rs 421.77 crore, while domestic institutional investors (DII) purchased Rs 1,032.02 crore worth of stocks on October 11, according to provisional data from the National Stock Exchange (NSE).

With the absence of clear trends in both the Nifty and Bank Nifty, it is a good opportunity for market participants to exercise caution and adopt a more selective, stock-specific approach to their investments. This approach can lead to informed and strategic investment decisions in a potentially volatile market.

Mandar Bhojane

Research Analyst

Choice Broking

Strong opening in the Asian markets, fourth consecutive days rally in the US market, less hawkish statement by the US Fed in its minutes of meeting, mixed bag Q2 results announced by TCS and cooling down US 10-Year bond yield and oil price, may open domestic bourses on a positive note.

Both Asian and US markets gained up to 1% after the US Fed officials agreed that policy should remain restrictive for an extended period but acknowledged that they need to balance the risk of inflation. As a result, US 10-Year bond Yield further declined by 10bps to close to a 2-week low at 4.5% despite September PPI (WPI) data reported above estimate. US Dow Future is up 0.2% ahead of CPI (Inflation) data to be released today along with India and the European region.

Gift Nifty is trading flat to negative while Nifty soared over 0.5% yesterday led by cement and auto stock. Positive sentiment in the market due to favorable micro data, strong festival demand and impressive quarterly business earning date by corporate will be positive for the market sentiment. Any decline will be a good buying opportunity. Focus on IT stocks as tech majors Infosys and HCL Tech announce Q2 results today.

Oil – Rising US oil inventory and minimum impact of Israel-Hamas war’s effect pulled down oil price by 2% to $85/bbl.

Gold – Gold rose to the highest this month at $1975/ounce as traders digested the minutes of a key Federal Reserve meeting for cues on the interest-rate path. -- Vikas Jain, Senior Research Analyst at Reliance Securities.

Avdhut Bagkar Technical and Derivatives Analyst, StoxBox.

‘And Action!’, this is the phrase most investors are waiting to utter post the release of TCS’ Q2FY24 results after market hours and following the minutes from the last U.S. Federal Reserve meeting. TCS registered revenue growth mostly in line with expectations, while EBIT margins expansion higher than expected surprised investors. The company also reported a share buyback valued at Rs. 17,000 crores at Rs. 4,150 per share (around 14% premium above yesterday’s closing price). Meanwhile, the latter data release, showcased US policymakers taking a cautious stance as investors looked forward to the release of inflation data today. Consequently, Asian indices edged higher, and with GIFT Nifty indicating a positive opening today.

Looking ahead today, our focus would be on the release of inflation data for September in India and the USA. On the domestic front, a sharp drop in vegetable prices, especially tomatoes, is likely to result in consumer price inflation easing to its lowest level in three months to 5.4% in September compared to a 6.8% reading in August. Any inflation reading closer to 5.4% may be neutral for equity markets, with volatility expected on either side in case of divergence in readings. In the stock-specific coverage, investors will look forward to the quarterly result update from HCL Tech and Infosys to gain further direction on the IT industry outlook.

Ichnos Sciences, (Wholly owned subsidiary of Glenmark Pharmaceuticals), a global clinical-stage biotechnology company developing innovative multispecific antibodies for oncology, on Thursday announced that the company has entered into an exclusive worldwide licensing agreement for its OX40 antagonist monoclonal antibody portfolio with Astria Therapeutics, a biopharmaceutical company developing therapies for rare allergic and immunological diseases. With the execution of this agreement, Ichnos has successfully licensed its two assets for inflammatory and immunological diseases, a key milestone in the company’s prioritization of its pipeline of oncology drug candidates.

Within the terms of the agreement, Astria will assume full cost and responsibility for the global development and commercialization of the licensed therapeutic program for all indications. In exchange, Ichnos will receive up to $320 million in upfront, development, regulatory and sales milestone payments in addition to up to low double-digit royalties. Ichnos has also agreed to allow Astria to draw down on its existing investigational drug substance and drug product stocks at normalized costs to facilitate development.

Karnika Industries will make a debut on the NSE Emerge today. The issue price is Rs 76 per share.

For September, Naukri’s JobSpeak index reported 6.3% MoM growth, registering the second successive month of growth. This is only the fourth month of this calendar year, where the index has reported growth (MoM), reflecting slow growth in the job market. IT-Software/Services hiring, however, fell 8.8% MoM, and was down 43.4% YoY. The hiring index for IT-Software/Services has now declined (on a YoY basis) in all nine months of this year, reflecting continued softness in demand and uncertainty in the overall environment. IT Job Index is currently down 49% from its peak levels in July 2022. BPO/ITes/CRM/Transcription hiring also reported a decline of 6.4% MoM, and it has now declined for the eighth consecutive month on a YoY basis. IT-Hardware and Networking jumped by 3.3% MoM but was 28% lower YoY. Weaker trends in IT-Software/Services are corroborated by lower attrition/muted hiring trends reported by IT companies in the last few quarters. Timelines for recovery in the IT sector hiring remain uncertain and depend on macros, while non-IT hiring is expected to sustain strength.

Muted quarter amid weak demand and margin concern

Agrochemical companies would see yet another challenging quarter due to erratic rainfall and high global channel inventories. Export-oriented companies (excluding PI Industries) would face a far severe impact, while spillover of sales from Q1FY24 to Q2FY24 is likely to provide some respite for domestic players.

Specialty chemical companies are expected to see a y-o-y decline in revenue amid weakness in pricing, inventory destocking & demand slowdown in developed countries, while lower operating leverage would result in margin contraction.

Near-term outlook remains challenging as earnings recovery for most of the companies may take time given the concern of high channel inventory for both specialty and agrochemical players and weak generic product prices. The impact of recent surge in crude oil prices would be visible in the coming quarters. We thus advise investors to be selective and gradually accumulate quality companies where long-term growth outlook remain intact.

Preferred Picks: PI Industries, Coromandel, SRF, NOCIL, PCBL, Gujarat Fluorochemical.

Hotels to stand tall; textiles will see sequential improvement

Hotels are expected to continue strong growth momentum in Q2FY2024 aided by healthy room demand and higher room rentals. Retail/QSR companies’ performance is likely to be impacted by shift of festive season to Q3 and extended Shraavan Maas.

Among textile players, garment exporters are expected to report y-o-y revenue decline, while home textile players are likely to see a good recovery on sequential basis. Margins will improve y-o-y due to lower input costs.

Retail/QSR companies’ performance is expected to revive in H2FY2024, boosted by the festive, wedding and holiday season, while a demand revival in key US/European markets will bode well for textile players.

Preferred picks:

Branded apparel and retail: Trent and Relaxo Footwear

Textiles: Gokaldas Exports, Himatsingka Seide and Welspun India

Out-of-home discretionary: Restaurant Brands Asia, Devyani International and Indian Hotels Company

India and US sales to continue to drive growth; cost rationalization to sustain margins at 24%

We expect our universe of pharmaceutical companies to register a 12% y-o-y revenue growth to Rs. 56,544 crore in Q2FY2024E driven by 11% growth in India segment to Rs 15,684 crore (led by WPI price hike) and 14% growth in the US segment to Rs 16,490 crore (led by gRevlimid) and flat growth in CDMO sales to Rs 4,928 crore.

Our coverage EBITDA Margin is expected to be flat with marginal 13bps YoY decline to 24% in 2QFY24E driven by a healthy product mix led by introduction of new products in the complex/ specialty segment, double digit WPI price hike of 12% in the base portfolio and easing of input costs like RM, power, freight etc.

Pharma companies in our coverage is witnessing positive trend across segments followed by cost rationalization impact which is likely to sustain in H2FY24E. To mitigate price erosion pressure in the generic segment, our coverage companies are shifting into complex products which will continue to aid margins in H2FY24E.

Preferred Picks: Sun, Dr.Reddy’s, Abbott, Divi’s among large caps. We prefer Sanofi India among mid-caps.

Insurance: APE & VNB are likely to see healthy growth, with VNB margins expected to remain stable y-o-y. For non-life insurers, premium growth is expected to be strong.

AMC & Diversified Financials: Among AMCs, we track only NAM India. We have built in ~7% q-o-q increase in QAAUM, but yields are expected to be marginally lower q-o-q. In diversified financials, BSE is witnessing strong market share gains.

Top Preferred picks: BSE Ltd, Fivestar business, Chola, Bajaj Finance, L&T Finance, Canfin homes, LIC HF and M&M Finance.

Move Into Short-Term ASM Framework: Infibeam Avenues, Sasken Technologies

Move Out Of Short-Term ASM Framework: Zaggle Prepaid Ocean Services

Infibeam Avenues: Mayur Desai HUF sold while Abhishek Mayur Desai bought 80 lakh shares (0.29% stake) at Rs 22.35 apiece.

TCS Q2 FY24 (Consolidated, QoQ)

Revenues up 0.52% at Rs 59,692 crore vs. Rs 59,381 crore (Bloomberg estimate: Rs 60,641 crore).

EBIT up 5.29% at Rs 14,483 crore vs. Rs 13,755 crore (Bloomberg estimate: Rs 14,420 crore).

EBIT margin at 24.26% vs. 23.2% (Bloomberg estimate: 23.78%)

Net profit up 2.42% at Rs 11,342 crore vs. Rs 11,074 crore (Bloomberg estimate: Rs 11,372 crore).

National (Standard) India Q2 FY24 (YoY)

Revenues down 52.33% at Rs 0.51 crore vs. Rs 1.07 crore.

Ebitda loss of Rs 0.30 crore vs. Rs 1.12 crore

Net profit up 263.63% at Rs 2.8 crore vs. Rs 0.77 crore.

Note: Other income is up 71% at Rs 4.14 crore vs. Rs 2.42 crore.

Delta Corp Q2FY24 (Consolidated, YoY)

Revenues up 0.23% at Rs 270.59 crore vs. Rs 269.97 crore.

Ebitda down 0.26% at Rs 100.08 crore vs. Rs 100.34 crore.

Margins at 36.98% vs. 37.16%

Net profit up 1.74% at Rs 69.44 crore vs. Rs 68.25 crore.

Signatureglobal (India) Q1 FY24 (Consolidated, YoY)

Revenue down 69.4% at Rs 165.8 crore vs. Rs 542 crore.

Ebitda loss of Rs 16.66 crore vs. Ebitda profit of Rs 25.11 crore

Net loss of Rs 7.18 crore vs. net profit of Rs 3.27 crore

Samhi Hotels Q1 FY24 (Consolidated, YoY)

Revenues up 12.96% at Rs 190.44 crore vs. Rs 168.59 crore.

Ebitda down 13.9% at Rs 45.34 crore vs Rs 52.66 crore.

Margins at 23.80% vs. 31.23%

Net loss of Rs 83.49 crore vs. net loss of Rs 100.88 crore

Zaggle Prepaid Ocean Services Q1 FY24 (Consolidated, QoQ)

Revenue down 36.71% at Rs 118.47 crore vs. Rs 187.2 crore.

Ebitda down 55.96% at Rs 7.94 crore vs Rs 18.03 crore.

Margins at 6.7% vs. 9.63%

Net profit down 72.88% at Rs 2.05 crore vs. Rs 7.56 crore.

TCS: The IT major’s board approves a buyback of 4.09 crore shares (1.12%) at Rs 4,150 apiece, aggregating to Rs 17,000 crore. An interim dividend of Rs 9 per share was also approved by the board, with Oct. 19 as the record date.

Larsen & Toubro: The company received a Rs 64.98 lakh penalty order from the GST authority for disallowance of the transitional credit claimed.

Maruti Suzuki: The auto manufacturer started exporting the Indian-manufactured off-roader Jimny 5-Door to Latin America, the Middle East, and Africa, among other destinations.

Adani Enterprises: The company raised Rs 700 crore through an allotment of 70,000 NCDs on a private placement basis.

JSW Steel: The company was declared the preferred bidder for the Jaisinghpura Iron Ore North Block in Karnataka with 17.66 million tonnes of reserves.

IndusInd Bank: SBI Mutual Fund gets RBI nod for acquiring up to a 9.99% stake in the company by Oct. 10, 2024.

LTIMindtree: The company initiated the Comprehensive Community Development Programme in Subir Block of Dang District in Gujarat to improve the socioeconomic condition of the region.

Cipla: The pharma major’s manufacturing unit, InvaGen Pharmaceuticals, gets an EIR from the U.S. FDA post-inspection of the Long Island facility as voluntary action indicated.

Vedanta: India Ratings downgraded the long-term bank and debt instruments of the company to ‘IND AA-’ from ‘IND AA’ while placing them on ‘Rating Watch with Negative Implications’.

Timken India: Jamshedpur Plant’s operations will be trimmed down from Oct. 19–24 due to physical verification of inventory and the Durga Pooja festival.

Aurobindo Pharma: Company unit CuraTeQ Biologics signs a letter of intent with Singapore’s Merck Sharp & Dohme for contract manufacturing operations for biologicals.

RVNL: RVNL emerges as the lowest bidder for the supply, installation, testing and commissioning of tunnel communication systems in Assam. The order is worth Rs 28.73 crore for a period of one year.

Shree Renuka Sugars: Anamika Sugar Mills allots 2.32 crore shares for Rs 109.5 crore via rights issue

Route Mobile: Company’s Bangladesh subsidiary has partnered with Robi Axiata in Bangladesh as a technical enabler and sales partner for Rich Communication Service Business Messaging.

Religare Enterprises: An open offer to acquire a 26% stake in the company from the public is made by M.B. Finmart, Puran Associates, VIC Enterprises and Milky Investment & Trading Company.

PCBL: The company has been granted a patent each for a carbon black modification process and a carbon black composition used to improve fuel efficiency and tyre life.

Signatureglobal (India): The company posted its best ever H1 FY24 pre-sales of Rs 1,851.39 crore, up 37.57% year-on-year. Collections grew 64.9% to Rs 1,327.45 crore in H1.

Delta Corp: The board approved the appointment of Anil Malani as CFO and Manoj Jain as COO w.e.f. Oct. 11.

Pricol: The company entered into a cooperation agreement with Heilongjiang Tianyouwei Electronics to provide advanced technologies in driver information system solutions for Indian vehicle makers across various vehicle segments.

India Tourism Development Corporation: The government appoints Mebanshailang Rynjah Synrem, Joint Secretary in the Tourism Ministry, as MD for one year.

Bhagiradha Chemicals & Industries: The Board approved the Rs 340.18 crore issue of convertible warrants to promoters and certain identified non-promoters. The government granted a patent for “Novel Process for Preparation of Ethiprole” for 20 years, starting Jan. 12, 2021.

Praveg: The company received a work order from the tourism department of Daman & Diu for the development and operation of the Damanganga Garden Kachigam project in Daman for a period of 7 years, extendable by 3 years.

EMS: The company has been awarded a contract worth Rs. 270.82 crore from Jaipur Heritage’s Municipality for providing, laying, jointing, testing and commissioning of sewerage systems and all ancillary work for a period of 10 years.

RPG Group: RPG Group appointed Anant Goenka as the group’s vice chairman. He will continue to serve as Vice Chairman of CEAT and Zensar Technologies.

Indian shares are set to open marginally higher on Thursday, tracking global markets on moderating oil prices, with information technology (IT) stocks in focus after the results of Tata Consultancy Services.

India’s GIFT Nifty was up 0.11% at 19,851 as of 8:12 a.m. IST, indicating that the Nifty 50 will open higher from Wednesday’s close of 19,811.35.

IT stocks will be in focus after TCS, India’s top IT firm, reported weaker-than-expected second-quarter revenue and flagged weakness in client spending. TCS also approved a share buyback worth 170 billion rupees ($2.04 billion).

Other top IT companies Infosys and HCLTech will report their results on Thursday.

Domestic investors also await India’s September inflation data, due post market hours. Retail inflation likely eased to 5.50%, within the Reserve Bank of India’s tolerance band, according to a Reuters poll.

Wall Street equities extended gains on Wednesday as data showed U.S. producer prices increased more than expected in September but underlying inflationary pressures continued to moderate.

Investors also await the U.S. September retail inflation data, scheduled on Thursday, which will influence the upcoming Federal Reserve policy on November 1. Asian markets opened higher.

Oil prices extended losses after a top OPEC producer Saudi Arabia pledged to stabilise the market, following a spike due to the military conflict in the Middle East.

Brent crude futures, which had jumped to $89 per barrel on Monday, eased to $85.50 in Asia hours. Fall in crude prices is positive for importers of the commodity, like India.

Foreign institutional investors (FIIs) extended their selling streak for the 16th consecutive session on Wednesday, offloading Indian shares worth a net Rs 422 crore ($50.7 million).

Net earnings for our universe of building materials companies is likely to grow by 52% y-o-y as OPM expands. Piping companies’ PAT is likely to grow strongly. Lower volume growth for wood panel and tile companies.

Infrastructure companies to remain soft although execution to improve on ty-o-y basis. Road project awarding remained weak till August 2023 although construction picked up y-o-y. Logistics segment would see marginal recovery in demand and OPMs, lower fixed cost absorption to result in marginal net earnings growth y-o-y.

Real estate companies to continue to report strong sales booking as highlighted in Macrotech’s, Sobha’s, Puravankara’s and Prestige Estates’ pre-sales bookings. Launch pipeline and business development key monitorables.

Preferred Picks – KNR Construction, PNC Infratech, Greenlam Industries, Carysil, Hindware Home Innovation, TCI Express, TCI Ltd., DLF, Sobha, Macrotech, Kolte-Patil Developers.

In Q2FY24, aggregate PAT of Nifty 50 companies is expected to grow by ~21% y-o-y. Banks, automobile companies and OMCs are likely to contribute to majority of earnings growth. Metals sector would see earnings recovery while IT, Pharma and FMCG to report modest earnings growth. The Nifty 50’s PAT (ex-OMCs) is expected to grow by 14% y-o-y.

EBITDA margins to expand for auto, cement, FMCG, oil & gas sector while margins for Consumer discretionary, IT, Agro & Speciality chemicals and healthcare sector are likely to contract on a y-o-y basis.

Discussion on demand outlook amid a slowdown in exports and global geopolitical conflicts; consumption trends in domestic urban/rural market in ongoing festive season, capex recovery, etc, would take center stage.

Nifty’s valuations at 20x/17x FY24E/FY25E EPS are reasonable given expectation of 17% CAGR in Nifty-50 earnings over FY23-25E. Broader markets may remain rangebound in the near term and any meaningful correction due to global geopolitical conflicts/war should be seen as on opportunity to accumulate good-quality stocks. Inflation/global slowdown amidst geopolitical conflicts/war remain key risks.

High-conviction investment ideas:

Large-caps: L&T, Maruti, DLF, Tata Consumers, Sun Pharma, Bharti Airtel, Bharat Forge, NTPC, ICICI Bank, Indian Hotels.

Mid-caps: APL Apollo, BSE Ltd, Escorts, Fivestar Business Finance, HAL, Balrampur Chini, Bank of India, Trent.

Small-caps: Welspun Corp, Kirloskar Oil Engine, ISGEC Heavy, Sterling Tools, Rolex Rings, Chalet Hotels, Kolte Patil, Garware Hitech, NIIT MTS

Nomura on UBL: Initiate Buy, target price at Rs 1935

UBS on TVS Motors: Maintain Buy on Company, raise target price at Rs 1850

Jefferies on Kfin Tech: Maintain Buy on Company, raise target price at Rs 560

ICICI on Zomato: Maintain Buy, raise target price at Rs 160

Citi on BPCL: Maintain Buy, target price at Rs 445

Citi on Titan: Maintain Neutral, raise target price at Rs 3400

GS on TCS: Maintain Buy, target price at Rs 4020

Bernstein on TCS: Maintain Outperform, target price at Rs 3950

Jefferies on TCS: Maintain Hold, target price at Rs 3690

HSBC on TCS: Maintain Hold, target price at Rs 3625

MS on TCS: Maintain Equal weigh, target price at Rs 3590

Citi on TCS: Maintain Sell, target price at Rs 3170

Nomura on TCS: Maintain Reduce, target price at Rs 3030

JP Morgan on TCS: Maintain Underweight, target price at Rs 2900

MS on JSPL: Maintain Underweight , raise target price at Rs 500

MS on JSW Steel: Maintain Underweight, raise target price at Rs 585

MS on Tata Steel: Maintain equal weight, raise target price at Rs 115

MS on SAIL: Maintain equal weight, cut target price at Rs 80

MS on Hero Motocorp: Maintain Underweight, target price at Rs 2521

Shares of Sharp Chucks and Machines will make a debut on the NSE Emerge today. The forging and graded casting machined component manufacturer fixed the IPO price as. 58 a share. Its equity shares will be available for trading in the trade-for-trade segment.

Trading Members of the Exchange are hereby informed that effective from October 12, 2023, the equity shares of Vivaa Tradecom Ltd (Scrip Code: 544002) are listed and admitted to dealings on the Exchange in the list of ‘‘MT’‘ Group Securities. For further details please refer to the notice no 20231011-2 dated October 11, 2023.

Share of Plaza Wires will be listed at the bourses today. The initial public offering off saw the highest ever participation by retail investors in the country so far. The company has fixed the IPO price at Rs 54, at the upper end of the price band Rs 51-54.

While the issue was subscribed to 160.97 times on Thursday, the portion reserved for retail investors saw a whopping response of 374.81 times, beating the previous record set by Latentview Analytics and Paras Defence and Space Technologies. The ₹71.28-crore IPO of Plaza Wires also witnessed a strong response from non-institutional investors, whose portion was subscribed 388.09 times while the portion set aside for qualified institutional buyers received bids for 42.84 times.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said Based on the latest grey market premium (GMP) of Rs. 23, the expected listing price of Plaza Wires is around Rs. 77 per share. This is a premium of 42.59% to the IPO price band of Rs. 51–54 per share

Adani Ports and Special Economic Zone Limited Announces the Tender Offer Results as at the Early Tender Date

According to the information provided by D.F. King Limited (the “Information and Tender Agent”), the information and tender agent for the Tender Offer, an aggregate principal amount of US$212,972,000 of the Notes had been validly tendered and not validly withdrawn pursuant to the Tender Offer as at the Early Tender Date.

Since the principal amount of Notes validly tendered and not validly withdrawn on or prior to the Early Tender Date exceeded the Maximum Acceptance Amount of US$195,000,000 in aggregate principal amount of the outstanding Notes, the Company will accept such Notes for purchase subject to the proration factor of 87.5619%.

The Company will pay the Early Tender Offer Consideration for US$194,965,000 in aggregate principal amount of the Notes validly tendered and accepted for purchase on the Early Settlement Date (as defined herein).

Cosmic CRF Limited has bagged an order from SAIL-RITES Bengal Wagon Industry (P) Ltd (a Joint Venture of SAIL & RITES) worth basic value of Rs 21.60 crore corresponding to gross amount to about Rs.25.49 crore (Inclusive of GST) for supply of Cold Rolled Formed Sections for BOXNHL Wagon. The order is expected to be completed within 9 months.

Rail Vikas Nigam Limited (RVNL) has emerged as the Lowest Bidder (L1) for “TRC: Sukhovi-Pherima: Supply, Installation, Testing & Commissioning of Integrated Tunnel Communication system in the Sukhovi-Pherima new single line section of Lumding Division. The project cost is about Rs 28.74 crore.

EMS Ltd has received a contract worth Rs 270.82 crore from the Office of Municipal Corporation, Jaipur Heritage. The contract work includes the laying, testing, and commissioning of sewerage systems and all ancillary works, along with one-year defect liability and ten years of operation and maintenance for towns.

Praveg Limited has announced receiving the work order for developing and managing the resorts at Damanganga Garden Kachigam, Daman. The work order is for a period of seven years that could be extended up to another three years.

Lakshmi Organic Industries has raised Rs 259 crore through a qualified institution placement (QIP) of its equity shares. The Fund-Raising Committee of the firm has approved the allotment of 96.25 lakh equity shares at an issue price of Rs 269.20 per share.

Buzzing Stocks: TCS, Infosys, HCL Tech, Vedanta, Anand Rathi, Angel One, HDFC Asset Management Co, Kesoram, Videocon Industries, JSW Steel, Route Mobile, Shilpa Medicare, Adani Enterprises, Cipla, Cosmic CRF, L&T, IndusInd Bank, PCBL, Pricol, RVNL, Medplus Health, Lakshmi Organic, Lehar Footwears, Bhagiradha Chem, EMS, Timken

11:30 U.K. GDP m/m (Expected: 0.2% versus Previous: -0.5%)

17:30 INDIA Inflation rate y/y (Expected: 6.2% versus Previous: 6.83%)

17:30 INDIA Industrial Production y/y (Expected: 7.9% versus Previous: 5.7%)

18:00 U.S. CPI y/y (Expected: 3.6% versus Previous: 3.7%)

18:00 U.S. Unemployment Claims (Expected: 210K versus Previous: 204K)

Provisional Cash Rs. In Crs.

FII/FPI: NET SELL: -421.77

(12526.94 - 12948.71)

DII: NET BUY: +1032.02

(8369.48 - 7337.46)

BALRAMPUR CHINI

HINDCOPPER

IBULHSGFIN

INDIACEM

L&TFH

MANAPPURAM

PNB

India Ratings and Research on Wednesday downgraded Vedanta Group’s Long-Term Issuer Rating to ‘IND AA-’ from ‘IND AA’, while maintaining a negative outlook, citing increased liquidity risk and reduced financial flexibility. “The downgrade reflects Vedanta’s increased liquidity risk and reduced financial flexibility on account of delays in tying up the refinancing for managing its large upcoming bond maturity in January 2024 and FY25,”

Anand Rathi, Angel One, Emerald, Facor Alloys, HCL Technologies, HDFC Asset Management Co, IEL, Infosys, International Travel House, JTL Industries, Kesoram, Kintech Renewables, Rose Labs, Shah Metacorp, Sical Logistics, Value Industries, Vandana Knitwear and Videocon Industries

Bonus Issue Dates

Ex Bonus 13 October 2023 (Tomorrow)

Last date Trade for Before Bonus Today

Advance Lifestyles Ltd.

Bonus issue 1:1

Previous day Closing Price – Rs. 121.3

MRP Agro Ltd

Bonus issue 2:1

Previous day Closing Price – Rs. 138.75

RMC Switchgears Ltd

Bonus issue 1:2

Previous day Closing Price – Rs. 771.25

IT major Infosys is set to announce its second-quarter earnings on October 12, amid a sectoral downturn due to macroeconomic headwinds. The company, in the last quarter, remained cautiously optimistic in commentary but made a steep guidance cut. As the results of a new quarter unfold, here are the five key metrics to watch out for.

The government’s Statistics Ministry is set to release the Consumer Price Index (CPI) for September, with expectations of a 5.5 to 6 percent range, a decrease from the previous month. A drop in vegetable and edible oil prices has contributed to this trend, though cereals and pulses remain high. Additionally, rising crude oil prices pose a concern. The RBI Governor, Shaktikanta Das, highlighted the impact of food prices on inflation. Core inflation has eased, but future trends depend on various factors, including global markets.

The Directorate General of Foreign Trade (DGFT) is gearing up to activate its import management system for registration of laptops, computers, and tablets from November 1, as there may be no further postponement of the government’s decision to switch to an import authorisation system beyond October 31, sources have said.

The Central Board of Direct Taxation (CBDT), in a notification, has said that Permanent Account Number (PAN) will no longer be required for non-resident individuals and foreign companies opening bank accounts in GIFT IFSC and not having any other taxable income in India.

Inflows into equity schemes dipped 31 per cent in September to ₹14,019 crore against ₹20,245 crore in August as investors preferred to book profit given the global economic uncertainty.

The unique investors identified by individual PAN in the industry touched a high of 4 crore, according to the Association of Mutual Funds in India (AMFI) data released on Wednesday.

Among equity schemes, large-cap funds registered an outflow of ₹110 crore last month, while all other funds recorded a positive inflow. Sectoral and small-cap funds registered the highest inflow of ₹3,147 crore (₹4,806 crore) and ₹2,678 crore, respectively, while multi-cap and mid-cap funds logged in a net inflow of ₹2,235 crore (₹3,422 crore) and ₹2,001 crore (₹2,512 crore).

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

The stock price of Star Cement has been consolidating sideways since August. The range of trade has been ₹147-170. The stock is now poised near the upper end of the range. The broader trend for the stock has been up since July this year. Read more

India on Wednesday announced launching “Operation Ajay” to facilitate the return from Israel of those Indians who wish to come back home as a series of brazen attacks on Israeli towns by Hamas militants over the weekend triggered fresh tensions in the region.

Israel has already mounted a massive military offensive to avenge the attacks.

External Affairs Minister S Jaishankar, who is on a visit to Sri Lanka, announced the launch of “Operation Ajay” in a post on X on Wednesday night.

“Launching #OperationAjay to facilitate the return from Israel of our citizens who wish to return,” he said.

“Special charter flights and other arrangements being put in place. Fully committed to the safety and well-being of our nationals abroad,” he added.

The first batch of Indians is expected to be brought back from Israel in a special flight on Thursday.

On Thursday, Asian stocks began the day on a positive note, following the upward trend seen on Wall Street. Investors were eagerly anticipating crucial US consumer inflation data.

In early trading, the Nikkei 225 index, which serves as the benchmark, advanced by 1.18%, equivalent to a 375.55-point increase, reaching 32,312.06. Simultaneously, the broader Topix index showed a 0.96% increase, adding 22.18 points and settling at 2,330.57. The KOSPI index in South Korea also made notable gains, rising by 0.98%, or 23.92 points, to reach 2,474. Australia’s stock market had a more modest increase, with a 0.18% gain, equivalent to a 13-point rise, bringing the total to 7,101.40.

Investors found reassurance in the Federal Reserve’s less hawkish statements, despite a higher-than-expected increase in US producer prices in September.

The previous night on Wall Street, the Dow Jones Industrial Average concluded with a 0.2% increase, settling at 33,804.87. The S&P 500, representing a wide range of stocks, saw a 0.4% rise, while the technology-heavy Nasdaq experienced a more substantial gain of 0.7%.