Share Market Highlights 25 October 2023: Sensex tanks 522 pts, Nifty around 19126; Tata Steel, Coal India shine, Apollo, Adani drag

Benchmark equity indices Sensex and Nifty plunged nearly 1 per cent on Wednesday, in continuation with the pessimistic trend amid the ongoing tensions in the Middle East.

Falling for the fifth day running, the 30-share BSE Sensex tanked 522.82 points or 0.81 per cent to settle at 64,049.06. During the day, it dropped 659.72 points or 1.02 per cent to 63,912.16.

The Nifty fell 159.60 points or 0.83 per cent to 19,122.15.

Among the Sensex firms, Infosys, Bharti Airtel, NTPC, Tata Motors, IndusInd Bank, Bajaj Finance, ICICI Bank, Tech Mahindra, Titan and Axis Bank were among the major laggards.

Tata Steel, State Bank of India, Mahindra & Mahindra, Maruti and Nestle were the gainers.

Nifty declined for the fifth day on October 25 as the uncertainties associated with the Israel-Hamas conflict continue to weigh on markets. At close, Nifty was down 0.83% or 159.6 points at 19122.2. Broad market indices fell largely in line with the Nifty even as the advance decline ratio fell to 0.14:1.

China helped Asian stocks rise from 11-month lows on Wednesday as investors cheered the approval of a trillion-yuan sovereign issue as a harbinger of stimulus. European shares gave up early gains on Wednesday as investors digested a slew of mixed earnings reports from the region, while weakness in energy firms on lower crude prices added to the declines.

Nifty kept falling of Oct 25, showing small intra day bounce. It could now take support from 19011 which is a gap support, while 19229-19333 could offer resistance on upmove.

The Indian stock market faced significant downward pressure as investors grew increasingly concerned about the geopolitical tensions and increasing bond yields in US. Nifty has broken its important support of 19220 and closed below the mentioned levels indicating breakdown of Head and shoulder pattern on daily chart.

Sensex ended the day 0.81 percent, or 522.82 points, down at 64049.06, while the broader Nifty declined 159.60 points, or 0.83 percent, end at 19122.15. Market breadth favoured declined. About 596 shares advanced, 1504 declined.

INDIA VIX was Positive by 3.67 percent intraday and settled at 11.31.

Index has a support around 19000-18900 zone. Coming to the OI Data, on the call side, the highest OI observed at 19300 followed by 19200 strike prices while on the put side, the highest OI is at 19000 strike price. On the other hand, Bank nifty has support at 42500-42300 while resistance is placed at 43400-43500 levels.

Zerodha Fund House on Wednesday announced the launch of its maiden funds - Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund, open-ended, passive, index equity mutual fund schemes. The NFO will be open from 20th October 2023 to 3rd November 2023.

Zerodha Fund House is a joint venture between India’s largest stock broking firm Zerodha Broking Limited and a leading portfolio investing platform, smallcase Technologies Pvt Ltd.

The Index Fund is an open-ended scheme replicating Nifty LargeMidcap 250 Index. And the ELSS is an open-ended passive equity linked savings scheme with a statutory lock-in period of 3 years and tax benefit replicating Nifty LargeMidcap 250 Index. Zerodha Nifty LargeMidcap 250 Index Fund & Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund will be benchmarked against the Nifty LargeMidcap 250 Index TRI (Total Returns Index). The schemes will adopt a passive investment strategy and will endeavour to invest in stocks in proportion to the weightage of the stocks in the Nifty LargeMidcap 250 Index. The ELSS scheme provides tax benefit under Section 80 (C) of the Income-tax Act, 1961.

The Board of Directors of Tech Mahindra on Wednesday approved the Scheme of Merger by Absorption of Perigord Premedia (India) Private Limited and Perigord Data Solutions (India) Private Limited and Tech Mahindra Cerium Private Limited (together referred to as “Transferor Companies”), wholly owned subsidiaries of the company, with itself.

“Investor sentiment is on edge as tensions in West Asia continue to drag the market. Despite a drop in oil prices and an optimistic view of the progressing Q2 results season, investors took a cautious approach due to the expectation that a higher interest rate scenario would continue slowing future growth. However, a positive strategy is evident on large-cap stocks, amid growing geopolitical worries and valuation concerns in mid- and small-cap stocks, as overall earnings growth is being sustained.”

The rupee paired its early gains and settled 2 paise lower at 83.18 (provisional) against the US dollar on Wednesday, tracking negative cues from domestic equity markets and a stronger American currency overseas.

Softening crude oil prices and some buying by foreign equity investors, however, supported the Indian currency, forex dealers said.

At the interbank foreign exchange market, the local unit opened stronger by 8 paise at 83.08 and traded between the peak of 83.08 and the lowest level of 83.19 against the greenback. It finally settled at 83.18 (provisional) against the dollar, registering a loss of 2 paise from its previous close.

Zinc prices on Wednesday rose Rs 1.35 to Rs 222.25 per kilogram in the futures trade amid a pick-up in spot demand.

On the Multi Commodity Exchange, zinc contracts for November delivery traded higher by Rs 1.35 or 0.61 per cent at Rs 222.25 per kg with a business turnover of 3,491 lots.

The Indian stock market witnessed a sharp decline today, with the Sensex skidding 600 points and the Nifty dropping by 200 points. The market fall is attributed to a variety of factors, including the Israel-Hamas conflict and fluctuations in US bond yieldsn.

Silver futures on Wednesday fell Rs 106 to Rs 71,680 per kilogram as participants reduced their bets.

On the Multi Commodity Exchange, silver contracts for December delivery declined by Rs 106 or 0.15 per cent to Rs 71,680 per kg in a business turnover of 18,636 lots.

Globally, silver was trading 0.44 per cent lower at USD 23.02 per ounce in New York.

Gold prices on Wednesday marginally rose by Rs 8 to Rs 60,545 per 10 grams in futures trade as speculators created fresh positions on firm spot demand.

On the Multi Commodity Exchange, gold contracts for December delivery traded marginally higher by Rs 8 or 0.01 per cent at Rs 60,545 per 10 grams in a business turnover of 14,486 lots.

Fresh positions built up by participants led to a rise in gold prices, analysts said.

Globally, gold futures declined 0.10 per cent to USD 1,984.20 per ounce in New York.

Continuous uptick in demand from the education sector as students return to the physical mode and higher exports due to rising demand from the US will lift the revenues of India’s writing instruments industry by a further 13-15% on-year this fiscal that comes on back of a whopping 33% growth logged last fiscal, according to CRISIL Ratings.Longer term, the sector will also benefit from India’s demographic dividend and increasing share of organised players. Operating margin will expand 150-200 basis points (bps) on-year to ~13% this fiscal on account of lower raw material prices. Capacity addition and investments towards product innovation will spur borrowings by manufacturers. But strong cash flows and balance sheets will provide an offset against incremental debt and support credit profiles.An analysis of five manufacturers rated by CRISIL Ratings, accounting for half of the organised segment revenue, indicates as much.

Jaya Mirpuri, Director, CRISIL Ratings said, “The demand for writing instruments has breached the pre-Covid levels, with 100% return to physical mode of education from the interim online mode. Also the overall growth in the education sector driven by government initiatives such as the National Education Policy and Samagra Shiksha Scheme focusing on integrated school education from pre-school to Class XII augurs well for the writing instrument sector’s growth.”

The Indian market is currently undergoing a notable correction, and even the previously outperforming broader market segments are now witnessing profit-taking, which many had anticipated. This correction is considered a routine occurrence within the framework of a structural bull market, characterized by a significant retreat following a period of exuberance in midcap, smallcap, and SME sectors. This adjustment can be attributed, in part, to fluctuations in US bond yields and concerns surrounding the situation in Iraq, though these factors are largely seen as convenient excuses for the market’s pullback.

Nonetheless, the market appears to be entering a phase of consolidation in preparation for the pre-election rally. Historically, Indian markets tend to initiate their pre-election upswings approximately six months prior to the election outcome. As such, it’s reasonable to anticipate the beginning of a pre-election rally around the time of Diwali.

In terms of market behavior, further correction could be expected, with the Nifty potentially testing its 200-day moving average (DMA) at around 18,800. This could present an attractive buying opportunity for investors looking to participate in the anticipated pre-election rally. It’s important for investors to remain composed and avoid panicking during these market fluctuations. Instead, they should be prepared with a list of high-quality stocks to capitalize on this dip

Honasa Consumer Ltd, the parent firm of D2C brands such as Mamaearth, The Derma Co, and BBlunt, has trimmed its public issue by nearly 10 per cent according to the company’s red herring prospectus (RHP). The company is set to launch its initial public offering (IPO) on October 31.

Natural gas futures on the Multi Commodity Exchange (MCX) has been on a decline for the past two weeks. The continuous contract began the decline after facing resistance at ₹285. Read more

The intense selling is due to the US yield touching 5% and expectation that it will remain higher for longer. The markets a few months back were expecting 1 or 2 rate hikes followed by a series of rate cuts starting towards the 2nd half of the next year. I think markets are readjusting to the possibility of 50 bps to 100 bps further rate hike or 25 bps to 50 bps rate hike followed by a long pause and no talk of rate cut. The US economic data is just not cooling off and the Fed seems to be confused but adamant to take the US in a mild recession. The sooner the US economy starts to cool off the better it may be for equity markets as it will allow the Fed to cut rates. FII flow may be back once rate cut talk starts.

Revenue increased 22% YoY to Rs17,942mn driven by the performance of News business (up 20% YoY), Movie Studio, Sports, and Digital verticals. Revenue from news and entertainment business stood at Rs3,570mn/14,372mn respectively.

EBITDA loss stood at Rs1,981mn as operating cost increased by 39% YoY driven by higher programming costs in Sports and Digital segments.

Loss after MI stood at Rs289mn.

Read through for ZEE: Top-line of entertainment business (excluding news) was up 22% YoY to Rs14,372mn driven by strong performance in digital, sports and movie business. However, excluding sports and digital, ad-revenue has declined as consumption demand has been sluggish coupled with lower spends by new-age businesses.

Along the lines of TV18, which reflects soft consumer sentiment, we expect ZEEL’s domestic ad-revenue to decline 2.5% YoY with an EBITDA margin of 11.1%

Aashirvaad Organic, a leading and trusted household name in staples, introduced its new brand proposition that redefines the landscape of its organic offerings - Sach Much Organic. This proposition resonates with Aashirvaad’s unwavering dedication to delivering purity, transparency and 100% organic products of great quality to discerning consumers.

In a world where the term ‘organic’ often remains shrouded in ambiguity, Aashirvaad takes a bold step to uphold its pledge of ‘100% Aashirvaad, 100% Organic’. At the heart of Sach Much Organic lies a revolutionary innovation that empowers consumers – a unique QR code on each product’s packaging that enables consumers to trace their chosen product’s journey from the farm to their homes. Thus, educating and creating awareness among consumers about the source and journey of their food. A pioneering feature setting new industry standards, and empowering consumers to make choices that align with their well-being and values.

Additionally, the range from Aashirvaad Organic includes a portfolio of attas and dals –that carry prestigious certifications from United States Department of Agriculture (USDA) as per the National Organic Program of the United States and from INDOCERT as per the National Programme for Organic Production of India, affirming to consumers that they meet organic standards. Each of the products goes through rigorous testing for 217 pesticides, setting a new standard for purity and quality in the industry.

Anuj Rustagi, COO, Staples & Adjacencies, ITC Ltd., remarked, “At ITC, we are dedicated to driving transformative change that positively impacts society. For decades, Aashirvaad has graced countless households with premium and quality offerings. Through ‘Sach Much Organic’, the brand is not only setting new benchmarks but also building awareness about the true essence of organic goodness. With a mission to educate consumers about the benefits of choosing organic, Aashirvaad Organic is poised to inspire trust - one ‘Sach Much Organic’ product at a time. Aashirvaad’s Organic Range represents our dedication to creating a better future, where consumers connect with products.”

Complementing this proposition, Aashirvaad has launched two new protein-rich organic offerings: Organic Rajma and Organic Kabuli Chana. These additions to the range exemplify Aashirvaad’s dedication to redefining the realm of organic goodness.

Cello World Limited’s Initial Public Offering to open on Monday, October 30, 2023, sets price band at ₹617 to ₹648 per Equity Share

IndusInd Bank has entered into a collaboration with Viamericas Corporation to provide digital inward remittance services for Non-Resident Indians (NRIs) in the USA through the ‘Indus Fast Remit’ platform. This venture offers NRIs competitive exchange rates for their digital inward remittances to India.

However, the shares were down by 0.24 per cent to Rs 1434 at 12.17 pm on the BSE.

Shreeji Translogistics Limited’s shares were up by 2.04 per cent after the company announced a foray into railway rake handling and transportation services. This expansion aims to enhance efficiency in steel material handling at railway sidings and optimise loading processes onto trailers and trucks. Read more

Copper prices were under pressure due to concerns on lower demand and high inventories on the back of worries on the US economy shifting to a new norm of higher interest rates, which could slow down industrial growth. Additionally, debt-ridden property giants in China posed a risk of financial contagion for key resource buyers in Asia.

Copper inventories had sharply risen this month, with stocks at the LME and SHSE increasing by nearly 50 per cent to 56,700 tonnes in the week ended October 13.

Despite rising inventories, investors continued to believe that supply would be unable to keep up with rising demand in the coming years. Reports from the EIA and the International Copper Association projected a 26 per cent increase in copper supply by 2035, which was significantly below the projections of a 50 per cent increase in demand.

The copper market’s challenges, driven by concerns of lower demand and substantial inventories, stand as a barometer of global economic conditions. The juxtaposition of these market pressures against China’s remarkable economic resilience, with a growth rate exceeding expectations, reflects the intricate balancing act of economic forces on the global stage.

As China’s central bank injects substantial funds into the economy to counteract challenges such as a prolonged property crisis, the world watches the outcome of this endeavor with great interest.

The intertwined fates of the copper market and China’s economic trajectory symbolize the intricate dynamics and uncertainties that define the modern global economy.

The weighted average cut-off of state government securities (SGS) jumped to 7.69 per cent in the weekly auction on October 23, 2023, the highest so far in FY2024, from 7.65 per cent last week, according to ICRA.

Wonderla Holidays Limited has obtained all necessary approvals for its Chennai Project and is ready to begin construction. The amusement park will be located 45 kilometers from Chennai and will span across a 62-acre area. The project is expected to be a significant addition to the company’s expansion plans and will offer a remarkable recreational experience to visitors.

Zydus Lifesciences Ltd’s shares were up 0.41 per cent after the company received approval from CDSCO, India, to commence Phase-II clinical trials of the NLRP3 inhibitor ‘ZYIL1’ for Amyotrophic Lateral Sclerosis (ALS) patients. Read more

AKI India Ltd (BSE 542020, NSE AKI), a Kanpur-based leather goods maker, on Wednesday announced that it would be raising Rs 80 crore via issue of equity shares and warrants. It will raise Rs 40 crore by issuing equity shares, through preferential allotment to persons and entities belonging to the non-promoter category.

Another Rs 40 crore would be raised by issuing convertible warrants, again through preferential allotment to persons and entities belonging to both the promoter and promoter group, as well as and the non-promoter category. It has also decided to increase its authorised share capital up to Rs 25 crore.

Among the investors who would be issued with the equity shares are BNP Paribas Arbitrage ODI, NAV Capital VCC and Aegis Investment Fund PCC, subject to the approval of shareholders and other authorities concerned.

AKI India had recently entered into joint venture (JV) with UK-based NPS Shoes Ltd – a 140-year-old footwear company headquartered in Northamptonshire. The JV’s focus areas include collaboration in manufacturing, dealing in, and exporting leather shoes in India and abroad for mutual benefit. NPS owns the renowned Solovair range of leather shoes, which it intends to introduce in India through this JV. AKI India will hold 25%, while NPS will own a 75% stake in the JV.

Gold

“COMEX Gold prices marginally declined on Tuesday, easing from a three month high notched during the previous week, as robust economic data from US boosted the greenback. Still a steady decline in US 10-year yields limited the downside in gold prices. Data released yesterday showed that the US private sector unexpectedly expanded during October, with S&P Global US Services PMI rising to a three month high of 50.9, while Manufacturing PMI beats estimates and rose to 50. Higher real rates and lack of demand from the investment sector remains a major headwind for gold prices. We expect prices remain buoyed as ground report suggest middle-east is preparing for a further escalation in the conflict.”

Crude

“WTI Crude oil futures extended losses for the third straight day on Tuesday, plunging more than 7% in last three trading days, as the Israeli ground invasion of Gaza was held-off amid hostage release talks and defense forces ramping up preparations for a multi front war. The US and Saudi Arabia agreed to pursue diplomatic efforts to maintain stability across the Middle East. Meanwhile, Russia’s oil flows are climbing steadily and rose to a four month high during the previous week. API inventory data released earlier today showed that stocks of crude oil in the US fell by 2.668 million barrels during the previous week, and investors keenly await EIA data later today. New round of stimulus measures from China which includes issuing additional sovereign debt and raising the budget deficit ratio might aide prices for the day.”

Events over the past few weeks have heightened global economic uncertainties. Conflict in the Middle East has boosted the price of oil and risk of further consequences remains.

Meanwhile, the relentless march higher in long-term interest rates in many countries, most notably the United States, has continued apace, pushing borrowing costs to 20+ year highs in some cases. Despite such policy tightening, core inflation rates remain well above their medium-term desired/targeted level.

We remain of the judgment that inflation is more likely to prove stickier than expected. As such, interest rates will remain at or above prevailing levels for considerably longer than anticipated. A resumption of a monetary tightening cycle where a major central bank(s) increases rates by another 100bp (or more) seems a low probability but not one that can be ruled out.

India’s economic activity in Q2 remained healthy thanks to sustained demand for both goods and services, government’s push to capital expenditure, recovery in real estate and boost in manufacturing sector likely due to festive season.

On the other hand, the impact of uneven monsoon on agriculture and consequently on the rural demand and slowing external sector demand likely weighed on GDP growth for Q2.

Headline inflation moderated to a 3-month low of 5.0% in September (after remaining above the RBI’s threshold of 6% in the previous two months) owing to a decline in vegetable prices along with the impact of the LPG price cut announced in August.

Continued moderation in core inflation suggests that there was no spillover from the spike in food inflation to the core components. However, the risk to inflation from recurring weather-related disturbances and the rise in global energy prices remains.

From the policy perspective, we believe the central bank is likely to hold the policy rate at the current level in FY24 to align inflation to the target of 4%.

Future policy actions are likely to keep liquidity in tightening mode to keep it consistent with the policy stance. Accordingly, the central bank hinted the use of OMOs (Open Market Operation) sales, but we expect with the higher currency leakage amidst the festive season, the quantum of the OMOs sales is likely to be limited and the timing could coincide with the redemption of the G-Sec bonds in November.

The price of gold has stabilised as diplomatic efforts convinced Israel for a delayed assault in Gaza , while world leaders aim to prevent the spillover effect of the Israel-Palestine conflict in the Middle Eastern region. Manufacturing and Services PMI data, reported yesterday, have indicated continued economic contraction in the UK and Europe. Meanwhile, the PMI data from the US has reported better-than-expected numbers, and pointed to stable manufacturing activity and expansion in service activity. Additionally, US bond yields have retreated from recent highs, providing support to the yellow metal.

Today, the market will be focused on the evolving situation in the Israel-Palestine conflict. The market will also draw insights from Powell’s speech later in the night.

While, participation in gold has been increasing the overall participation is still a relatively lower levels, which sets the stage for an extended rally in gold. We believe gold remains a favourable investment opportunity.

Currently, we are observing resistance levels at Rs 61,700. However, a break of this resistance could open the path for further upside in gold prices. On the downside, gold may experience a correction down to Rs 58,500 levels.

Nifty 50 (19,300) opened today’s session almost flat at 19,286.45 versus Monday’s close of 19,281.75. It is now up by a marginal 0.15 per cent.

There are no clear signs from the Asian equity market. Among the majors, Nikkei 225 (31,425) and Hang Seng (17,235) have gained 1.2 and 1.4 per cent respectively. Whereas ASX 200 (6,850) is trading flat and KOSPI (2,375) is down 0.4 per cent. Read more

Axis Bank is seen reporting a 7-12 per cent y-o-y rise in net profit for Q2 FY24, according to estimates by brokerages, which peg the figure at Rs 5,330-5,970 crore. On quarter, profit after tax is seen falling 2 per cent, owing to elevated cost ratios from the merger.

TVS Motor Company Ltd’s shares were up by 1.24 per cent after the company reported a collaboration with ION Mobility, a Singapore-based tech start-up’s Project Dynamo, at the Indonesia Motorcycle Show (IMOS) 2023. TVS Motor led ION Mobility’s Series A funding with an investment of $18.7 million (Rs 137.66 crore) in February 2023, initiating this partnership. Read more

The benchmark equity indices climbed in early trade on Wednesday after facing a heavy drubbing in previous trade, amid positive trends in global markets and foreign fund inflows.

Softening crude oil prices also helped the market recover.

The 30-share BSE Sensex climbed 193.64 points to 64,765.52 in early trade. The Nifty advanced 54.55 points to 19,336.30.

Among the Sensex firms, JSW Steel, Tata Steel, HCL Technologies, Kotak Mahindra Bank, State Bank of India and Axis Bank were the major gainers.

Infosys, NTPC, Hindustan Unilever and Titan were among the laggard

Crude oil futures traded marginally lower on Wednesday morning. This despite industry data showing a decline in oil inventories in the US. Meanwhile, October PMI data showed growth in the manufacturing and service sectors in the US.

At 9.53 am on Wednesday, December Brent oil futures were at $88.02, down by 0.06 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $83.67, down by 0.08 per cent. Read more

We initiate coverage on UGRO Capital with a BUY recommendation and target price of Rs425/share (implied FY25E P/BV: 2.1x), offering 47% upside. UGRO’s relative obscurity is mainly due to its private equity business model—tech-enabled, talent-intensive and frontloaded cost structure—designed to support scale while minimizing risk. Our conviction about UGRO’s strategy rests on 3 pillars:

i) MSME-focused lending with large TAM.

ii) Business model optimized for sectors, with stress on data homogeneity and underwriting tech models for six sigma events like GST/pandemic.

iii) Its unique asset underwriting skills that can be symbiotically exploited to co-lend/co-originate with PSBs/others, which otherwise incur high credit cost on priority lending. UGRO would grow AUM by 3x to ~Rs194bn by FY26E and log 54% EPS CAGR over FY24-26E. With scale, the UGRO stock is set to pole-vault to a core portfolio holding, given its distinctive business model that has a long growth runway.

Gold

“COMEX Gold prices marginally declined on Tuesday, easing from a three month high notched during the previous week, as robust economic data from US boosted the greenback. Still a steady decline in US 10-year yields limited the downside in gold prices. Data released yesterday showed that the US private sector unexpectedly expanded during October, with S&P Global US Services PMI rising to a three month high of 50.9, while Manufacturing PMI beats estimates and rose to 50. Higher real rates and lack of demand from the investment sector remains a major headwind for gold prices. We expect prices remain buoyed as ground report suggest middle-east is preparing for a further escalation in the conflict.”

Crude

“WTI Crude oil futures extended losses for the third straight day on Tuesday, plunging more than 7% in last three trading days, as the Israeli ground invasion of Gaza was held-off amid hostage release talks and defense forces ramping up preparations for a multi front war. The US and Saudi Arabia agreed to pursue diplomatic efforts to maintain stability across the Middle East. Meanwhile, Russia’s oil flows are climbing steadily and rose to a four month high during the previous week. API inventory data released earlier today showed that stocks of crude oil in the US fell by 2.668 million barrels during the previous week, and investors keenly await EIA data later today. New round of stimulus measures from China which includes issuing additional sovereign debt and raising the budget deficit ratio might aide prices for the day.”

Fed survey on financial stability highlighted the following concerns amongst the respondents: likelihood of higher rates for a longer period on account of inflation and probability of losses in commercial real estate market. Additionally, there were also concerns around economic weakness in China. Separately, US budget deficit widened to US$ 1.7tn for the fiscal year (ending on 30 Sep 2023), up from 23.2% compared with last year. The shortfall will add to the growing US debt.*

On the domestic front, RBI’s minutes noted that MPC members remain vigilant on maintaining price stability and focusing on the mandate of medium-term goal of 4% inflation mark.

Global stocks ended lower as investors continue to monitor geo-political developments and comments by Fed Chair which signaled a possible hold, even as rate hike remains on the table. Amongst other indices, S&P 500 and FTSE declined the most followed by losses in Dow Jones. Sensex too followed suit, led by sharp fall in consumer durable and oil & gas stocks. It is trading further lower today, in line with other Asian markets.

Incubate Fund Asia, a sector-agnostic Japanese Venture Capital Fund specializing in seed-stage investment, has announced the promotion of two of its Principals, Rajeev Ranka and Dave Kwong, to Partners in the fund. The promotion of these two Principals reflects their significant contribution to the fund and their expertise in the Indian and South East startup ecosystem. The move comes as the fund aims to build a portfolio of around 20 startups with its third fund, which has a target corpus of $50 Million.

Rajeev Ranka and Dave Kwong have been instrumental in the success of Incubate Fund Asia’s India-focused entity, which was recently rebranded to enhance focus on pre-seed and Seed-stage startups in India and South East Asia. They have been with the fund for several years and have played a key role in identifying and nurturing promising startups in the region. In their new roles as Partners, Rajeev and Dave will continue to work closely with the founders and entrepreneurs in shaping the future of their startups. They will also play a key role in the fund’s investment strategy and portfolio management.

The rupee appreciated by 5 paise to 83.11 against the US dollar in early trade on Wednesday, tracking a weak America currency and softening crude oil prices in the overseas market.

Some buying by foreign equity investors supported the Indian currency, even though it was pressured by subdued sentiment in the domestic equity markets, forex traders said.

“The uncertainties associated with the Israel-Hamas conflict will continue to weigh on markets in the near-term. Positive news like decline in the US bond yields and weakening crude can help the market to revive but it may not sustain given the uncertainty surrounding the West Asian conflict. Investors may opt for a cautious approach to the market till some clarity emerges on the geopolitical situation.

An important feature of the near-term market is the weakness of the broader market. On Monday when the Nifty corrected by 1.3 percent, Nifty Smallcap crashed by 3.9 percent. Since the valuations in mid and small cap space is higher than that of large caps, this weakness is likely to persist. Safety is now in large caps particularly in banking majors which are fairly valued.”

Electronics contract manufacturing services firm, Kaynes Technology, broke ground for an outsourced semiconductor assembly and testing (OSAT) semiconductor engineering facility of subsidiary Kaynes Semicon at Kongara Kalan near Hyderabad on Tuesday.

China’s production of gold using domestic raw materials climbed by 0.47 per cent from a year earlier to 271.25 tonne in the first three quarters of 2023, China Gold Association data showed.

Meanwhile, China’s gold consumption rose 7.32 per cent on the year to 835 tonne, according to data from the stated-backed association.

Lupin receives approval from US FDA for its Abbreviated New Drug Application for Fluconazole tablets, to market a generic equivalent of Diflucan tablets of Pfizer

We forecast Chalet Hotels to register revenue growth in the twenties favoured by industry tailwinds like demand-supply imbalance, consistent growth in its ADR, and special events like the G-20 summit. Additionally, we expect margins to improve compared to the previous quarter wherein the business incurred one-time expenses like pre-opening expenses of The Westin Hyderabad HITEC City and GST payment made in the quarter. Going forward, we would keenly track the seasonally stronger H2FY24 demand trend ahead of the wedding season and World Cup bolstering occupancies. We expect some moderation in revenue growth in FY25E due to the high base effect of FY24.

Anushi Vakharia, Research Analyst, StoxBox

Jio has emerged as the top network in India, winning all nine awards for mobile networks in the market, including all awards for 5G networks in the The Speedtest Awards presented by Ookla. Read more

Crude oil futures traded marginally higher on Wednesday morning as the industry data from the US showed a decline in the oil inventories in that country. Meanwhile, October PMI data showed a growth in manufacturing and service sectors in the US. At 9.15 am on Wednesday, December Brent oil futures were at $88.12, up by 0.06 per cent; and December crude oil futures on WTI (West Texas Intermediate) were at $83.75, up by 0.01 per cent. November crude oil futures were trading at ₹6973 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹6974, down by 0.01 per cent; and December futures were trading at ₹6943 as against the previous close of ₹6938, up by 0.07 per cent.

SEBI has cancelled the certificate of registration of Arcadia Commodities and Trading and Modex Commodity Trades, for facilitating the trade of paired contracts on the now-defunct National Spot Exchange (NSEL).

Mahindra Logistics net loss of Rs 15.5 crore against profit of Rs 12 crore and revenue up 3 per cent at Rs 1,365 crore against Rs 1,326 crore YoY

Crossover above 200 daily MA

MEDICO REMEDIES, MANGLAM WORLDWIDE

Crossover below 200 daily MA

MEP INFRA, VAKRANGEE, SHEE OSWAL SEED,

LAMBODHARA TEXT, HFCL, VADILAL IND, CAMLIN

FINE, AARVI ENCO, INSECTICIDES, BLB, AVT

NATURAL, SAREGAMA, SUBEX, RUPA, MM FORG

Card Spends declined ahead of the festive season (stood at Rs 1.43L cr) for Sep’23. Credit Card spends declined by ~4.2% MoM (v/s +2.7% in Aug’23), and was up by ~16.1% YoY (vs. 32% in Aug’23) in contrast to new card additions growth. Net New Cards addition improved during Sep’23 and stood at ~17.39 lakhs (vs. ~14.05 lakh in Aug’23). New card additions supported by strong growth across all major players, led by ICICIB (~3.49 lakhs), HDFCB (~2.99 lakhs), AXISB (~1.86 lakhs) and SBI (~0.95 lakhs). Total number of cards in force stood at ~93Mn in Sep’23 (up by ~19.7% YoY and 1.9% MoM). Volume of transaction growth witnessed a decline (in line with card spends) and was down by ~5.7% MoM (vs. +4.9% in Aug’23). Going forward we expect card spends growth to revive from Oct’23 supported by strong festival spends.

The ₹840.27-crore Blue Jet Healthcare IPO will open for subscription today and close on October 27. The IPO price band has been fixed in the range of ₹329 to ₹346 of face value of ₹2. Investors can bid for a minimum of 43 equity shares

Blue Jet Healthcare IPO is completely a offer for sale (OFS) of 24,285,160 equity share; there is no fresh issue component, according to Red Herring Prospectus (RHP). The company’s promoters are Shiven Akshay Arora, Akshay Bansarilal Arora, and Archana & Akshay Arora. Shiven Akshay Arora will sell up to 5,918,849 equity shares, while Akshay Bansarilal Arora will sell up to 18,366,311 equity shares. The proceeds will go to the selling shareholders and the company will not get any money from the offer.

The Sensex and Nifty, India’s benchmark indices, opened higher on Wednesday, reflecting a global stock market rebound. This came as U.S. Treasury yields retreated, and crude oil prices dipped below $90 per barrel. The Sensex gained 160.89 points to reach 64,732.77, while the Nifty rose by 46.70 points to

19,328.45. Key gainers in the Sensex included Hindalco, Tata Steel, Adani Enterprises, JSW Steel and Adani Ports. On the downside were NTPC, SBI Life, Bharti Airtel, HDFC Life and PowerGrid.

Furthermore, Asian markets surged by 1%, bolstered by China’s approval of a trillion-yuan sovereign bond issuance to stimulate its economy. Wall Street also experienced gains due to robust quarterly results. U.S. Treasury yields pulled back from multi-year highs, and Brent crude futures saw their third consecutive session of decline, dropping to $88 per barrel. This decline was favorable for commodity importers like India.

Ruchit Jain from 5paisa.com noted that the Indian stock market recently witnessed a sharp correction driven by negative global cues, resulting in the Nifty breaking crucial support levels and closing below 19,300 with a substantial loss. This correction affected broader markets, including midcaps and small caps. Technical indicators, such as the RSI oscillator and the persistence of short positions by FIIs, indicated a bearish trend. Therefore, a cautious approach to trading was advised, with key support levels at 19,000-18,900 and resistance at 19,400-19,500 for potential rebounds. The long-term trend, however, remained positive.

On Monday, both foreign institutional investors and domestic institutional investors were net buyers in Indian shares, contributing Rs 252 crore and Rs 1,112 crore, respectively.

Blue Jet Healthcare has established a contract development and manufacturing organization (CDMO) business model with specialized chemistry capabilities in contrast to media intermediates and high-intensity sweeteners. The CDMO model allows the company to benefit from the accessibility to innovations of new molecules and helps lessen research costs and concentrate on efficient product development on a large scale. It also offers an advantageous position to continue to provide such products after they go off-patent in concurrence with customers. Further, Blue Jet plans to expand production capacities in Unit III from 213 KL as of June 30, 2023 to 499 KL by FY2025. The company also acquired a greenfield manufacturing site (Unit IV) on a leasehold basis in Ambernath in 2021 to build several multi-purpose blocks dedicated to pharma intermediate and API business which allowed it to increase the manufacturing capacity and scale its business. Once the capacity expansion at Unit III is completed and Unit IV is operational, the total annual production capacity is expected to reach 1,513.6 KL by the end of FY25. Further, the company has a track record of sustained revenue and PAT growth, growing at a CAGR of 20.2% and 8.6% during the FY21-23 period, with strong RoE and ROCE of 26.6% and 31.9%, respectively, in FY23. Further, the growth in the CDMO model, robust financial performance and expanding production capacity are expected to drive the company’s performance going ahead. On the upper price band, the issue is valued at a P/E of 37.5x based on FY2023 earnings which we feel is fairly valued. We, therefore, recommend an SUBSCRIBE rating for the issue. -- STOXBOX

We anticipate Tech Mahindra to report a marginal decline in its Q2FY24 revenue sequentially, attributed to a prolonged slowdown in demand across the Communication and Enterprise sectors and project ramp-downs at the start of the quarter. Along with the weak topline, a contraction in margins is also foreseen due to the organization’s restructuring exercise undertaken during the quarter. The deal wins have also been weaker during the quarter which might adversely impact short-term growth. Additionally, our focus would be on deal TCVs and pipeline within the communication vertical, pricing dynamics, attrition rates, and the outlook on growth, margins, and DSO days will be crucial, along with any commentary provided on the anticipated impact of the ongoing 5G rollout.

Dhruv Mudaraddi, Research Analyst, StoxBox

Considering the weak monsoon season, we expect Asian Paints to clock a mid-single-digit growth in the quarter supported by a higher number of painting days which lead to more product off-take in a seasonally weak quarter for the business. Overall, we expect the margins to stabilize with the company’s higher focus on media spending and its decision to not take any price cuts. We would keenly track the management’s guidance on its margin guidance post the recent hikes in crude oil prices due to tensions in the Middle East. Additionally, Grasim’s entry into the paints industry continues to pose a key concern as the former accelerates its dealer network further in the market. Moreover, we would also track the management’s comments on its weaker performing business i.e. the international business and its kitchen and bath fitting business. -- Anushi Vakharia, Research Analyst, StoxBox

The market is likely to open higher today taking cues from the global market. U.S market ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally. Investors are now keeping a keen eye on upcoming earnings reports. Meanwhile, the bond market showed signs of stability with the 10-year Treasury yield settling around 4.85%. This comes after Monday’s surge where it spiked over 5%. The steadying of the bond market suggests a calming of investor fears over inflation and potential interest rate

hikes. Asia’s stock markets traded higher as investors cheered the approval of a trillion-yuan sovereign bond issue as a harbinger of stimulus. China’s top parliament approved a 1 trillion yuan ($137 billion) bond issue, state media reported adding the funds would be spent rebuilding disaster zones and improving infrastructure. Back at home, Axis Bank, Tech Mahindra and Indus Towers are among the companies that will announce their earnings for the September 2023 quarter during the day. As per provisional figures, Foreign Institutional Investors (FIIs)/ Foreign Portfolio Investors (FPIs) bought shares worth net Rs. 252.25 crore and Domestic institutional investors bought shares worth net Rs.1111.84 Crore on 23th October 2023. -- SMC Global

Nifty made a modest 47-point gain, closing at 19,310, but market sentiment remained largely pessimistic on Dalal Street due to ongoing concerns about lackluster corporate earnings in India, compounded by the looming threats of inflation, economic downturn, and rising interest rates. The recommended trading approach for Nifty and Bank Nifty involved cautious buying on specific dips with predefined stop levels and varied target points. The short-term direction of Nifty hinged on updates from the Middle East and US inflation data. Some relief was found in sluggish oil prices and steady US yields, although market volatility was expected to persist, driven by the expiration of F&O October derivative contracts and substantial foreign institutional investor (FII) selling in excess of Rs. 15,000 crores this October. From a technical perspective, Nifty remained below the rising trendline since March 2023, with downside risks seen around 19,221. Similarly, Bank Nifty fell below the ascending trendline since June 2022, with aggressive downside risks noted near 41,500. The options data indicated a potential trading range for Nifty and significant Call and Put writing at various strike prices, with the 19,600 mark emerging as a key resistance zone, while the Volatility Index hovered around 10.90. Additionally, the day marked the release of Q2 results from notable companies, including Axis Bank, Tech Mahindra, Indus Towers, Jubilant Food Works, Rallis India, and Sonata Software.” -- Prashanth Tapse, Mehta Equities Ltd

Global Rating Agency S&P says - India, the world’s fifth largest economy in the world, is likely to overtake Japan to become the world’s third-largest economy with a GDP of $7.3 trillion by 2030, S&P Global Market Intelligence said in its latest issue of PMI.

Rally in the global markets, US 10-Year bond yield fell from 5% to 4.80%, oil price dropped by 6% from $93/bbl to 88% and China to consider further stimulus, may open domestic bourses on a positive note. Asia, US and European markets advance between 0.5% to 1%, snapping a five-day losing streak after reporting better-than-expected quarterly earnings by Coca cola, GE and 3M Microsoft and fall in US bond yield. Asian market soared after the China announced further stimulus to boost its economy. Moreover, Dollar Index decline from 107 to 106 level and US Vix (Volatility Index) decline by 15% from 22 to below 19.

US Future gained after Microsoft announced better the expected quarterly results in the post market while Alphabet reported lower than expected earnings. Gift Nifty is up 50 points or 0.3%. Nifty slipped over 1% in the previous day on account of weak global market and rising US Bond yield. Good quarterly results by corporates, rally in the global markets and fall in oil price will be positive for the market sentiment. Long term will be big positive in the domestic market after the global rating agency S&P global says that the India to exceed Japan to become world’s third largest economy by 2030. Expects positive for metal stocks after China announced further stimulus. Traders focus on mid-cap and small cap stocks like NBFC, pharma, IT, Banks on account of attractive valuation after corrected 10-20% from the recent high. -- Vikas Jain, of Reliance Securities.

Equity capital raise through a rights issue has brought in the much-needed confidence capital, which could result in a rating upgrade from credit rating agencies. We expect PNBHF to deliver a CAGR of 13%/28% in AUM/PAT over FY23-FY26 and ~2.4%/12.4% RoA/RoE in FY26. Upgrade to BUY with a revised TP of INR950 (premised on 1.5x FY25E BVPS).

Our recommendation upgrade is predicated on a) visibility of >15% AUM CAGR from FY25 onward, b) potential NIM expansion on the back of a decline in borrowing costs and a marginal rise in yields as affordable housing mix improves to form a respectable proportion of retail book, and c) expansion in RoA aided by moderation in credit costs (as both retail and corporate segment stress now largely provided for) and gradual improvement in RoE as the leverage builds up on the balance sheet. -- MOFSL

The benchmark indices witnessed a sharp decline on Monday, with the Nifty closing 260 points lower and the Sensex down by 826 points. All major sector indices were trading in the red, with the metal index being the worst performer, declining by more than 5 per cent. From a technical perspective, the index started slowly but eventually broke an important support level of 19500/65200, which added selling pressure. Additionally, the index formed a long bearish candle on the daily chart indicating further weakness from the current levels. We believe that the short-term market structure is still weak. Day traders should focus on 19400/64900 as the key resistance levels. If the index falls below, it may slip to 19200-19175/64400-64300 and in the worst-case scenario, it may even fall to 19000 or 18900 levels. The short-term sentiment may change if the index rises above 19400/64900, which may lead to a quick technical bounce to 19500-19600/65200-65500.

It is recommended to reduce weak long positions around the level of 19500. Conversely, investors are advised to buy between 19050 and 18950 levels.

In the case of Bank Nifty, the level of 43000 is likely to act as a major support level, and a fall to 42500 levels may occur without significant effort on the dismissal of it. On the higher side, 43500 and 43750 levels would pose as major resistance levels.

Shrikant Chouhan

Head – Equity Research

Kotak Securities

DART Derivatives: Nifty breaks crucial level, rating under review...!

Major Technical Levels to watch for Nifty:

Supply: 19600, 20400

Demand: 19200

View: Positive (rating under review)

- On Monday, Nifty breaks crucial support level of 19400 as selling across board takes toll.

- All the sectoral indices ends on a negative note with Media, PSU Bank and Metal emerging as top losers.

- As Nifty breaks crucial 19400 mark, hitting our trailing SL, we have kept rating under review

- On Monday we saw large part of selling led by HNIs/Retail participants with unwind on SSF (~71k cts saw an unwind)

- VIX and PCR both remains comforting, specifically with PCR OI now down to 0.70 mark. VIX below 12 do not indicate fear in the system so far.

- Both FII and DIIs turned buyer in cash segment on Monday

- Alongside above, rollover would be crucial as currently it remains slightly below 3 month avg

- Thus, while our trail SL has got triggered basis price action, data points remains comfortable on longs so far.

Bank Nifty: Bank Nifty breaks crucial support at 43.3k

- Good amount of selling seen for PSU Banks

- Crucial for ICICI to hold 920 mark

Price band revised from 10% to 5%: MMTC, Pearl Global Industries

Price band revised from 20% to 10%: Newgen Software Technologies

Ex/record date dividend: Infosys

Ex/record date bonus issue: Krishana Phoschem

Move out of the short-term ASM framework: Manoj Vaibhav Gems N Jewellers, Oriental Hotels.

Amber Enterprises: Franklin Templeton Mutual Fund bought 2 lakh shares (0.59%) at Rs 2,820 apiece.

Mahindra Logistics Q2 FY24 (Consolidated, YoY)

Revenue is up 2.89% at Rs 1,364.76 crore vs. Rs 1,326.33 crore.

Ebitda is down 20.75% at Rs 53.57 crore vs. Rs 67.58 crore.

Margin at 3.92% vs. 5.09%

Net loss of Rs 15.93 crore vs. profit of Rs 12.19 crore

PNB Housing Q2 FY24 (Standalone, YoY)

Interest income rises 6.26% at Rs 1,691.31 crore vs Rs 1,591.71 crore (YoY)

Net profit rises 46.2% to Rs 384.4 crore vs. Rs 262.91 crore (YoY)

GNPA ratio at 1.78% vs 3.76% (QoQ)

NNPA ratio at 1.19% vs 2.59% (QoQ)

Lloyds Metal and Energy Q2 FY24 (Consolidated, YoY)

Revenue is up 61.97% at Rs 1,091.31 crore vs. Rs 673.76 crore.

Ebitda is up 82.45% at Rs 286.31 crore vs. Rs 156.92 crore.

Margin at 26.23% vs. 23.29%

Net profit is up 62.04% at Rs 231.25 crore vs. Rs 142.71 crore.

Alok Industries Q2 FY24 (Consolidated, YoY)

Revenue is down 20% to Rs 1,359.02 crore vs. Rs 1,698.58 crore

Ebitda at Rs 35.94 crore vs. Ebitda loss of Rs 11.25 crore

Net loss of Rs 174.83 crore vs. loss of Rs 191.5 crore

Torrent Pharmaceuticals Q2 FY24 (Consolidated, YoY)

Revenue is up 16.1% at Rs 2,660 crore vs. Rs 2,291 crore.

Ebitda rises 21.5% to Rs 825 crore vs. Rs 679 crore.

Margin at 31.01% vs. 29.63%

Net profit is up 23.71% at Rs 386 crore vs. Rs 312 crore.

Kewal Kiran Clothing Q2 FY24 (Consolidated, YoY)

Revenue is up 15.96% at Rs 262.48 crore vs. Rs 226.34 crore.

Ebitda is up 23.43% at Rs 61.73 crore vs. Rs 50.01 crore.

Margin at 23.51% vs. 22.09%

Net profit is up 27.04% at Rs 49.66 crore vs. Rs 39.09 crore.

KEC Global Mauritius has been dissolved, as communicated by the Corporate and Business Registration Department, Mauritius to the Office of the Liquidator of KEC Global Mauritius

Marico in a notice to Stock exchanges:

Saffola Oats, one of the leading brands of Marico Limited, has emerged as the Number 1 Oats* brand in India, according to Kantar Household Panel Data. Since its inception in 2011, the brand has crafted a legacy of trust, consumer understanding and innovation to meet the diverse taste preferences of the Indian consumer and offer “better for you” food products.

We anticipate Tech Mahindra to report a marginal decline in its Q2FY24 revenue sequentially, attributed to a prolonged slowdown in demand across the Communication and Enterprise sectors and project ramp-downs at the start of the quarter. Along with the weak topline, a contraction in margins is also foreseen due to the organization’s restructuring exercise undertaken during the quarter. The deal wins have also been weaker during the quarter which might adversely impact short-term growth. Additionally, our focus would be on deal TCVs and pipeline within the communication vertical, pricing dynamics, attrition rates, and the outlook on growth, margins, and DSO days will be crucial, along with any commentary provided on the anticipated impact of the ongoing 5G rollout.

Dhruv Mudaraddi, Research Analyst, StoxBox

According to Emkay Wealth Management, considered as safe haven especially in times of geopolitical uncertainty, gold is expected to trend higher in the immediate term. Technically the price targets for gold remains at US$ 1990 and US$ 2030. Contrary to the usual trend of gold moving up significantly in the weaker dollar scenario, the safe haven status has assumed significance despite a strong dollar scenario.

The on-going Middle East conflict has impelled investors’ preference for Gold which has resulted in upward price mobility in the asset class. Gold prices have remained well supported at the US$1880 and US$1860 levels.

Incred Capital’s secured, rated, listed, redeemable, non-convertible debentures of face value of Rs. 1,000 each for an amount aggregating of Rs 150 crore (Base Issue) with an option to retain oversubscription up to Rs. 150 crore, aggregating up to Rs. 300 crore, opens today for public subscription. The instrument has been rated as CRISIL A+/Stable by CRISIL Ratings Limited.

The issue will close on November 7.

The Rs 840.27-crore Blue Jet Healthcare IPO will open for subscription today and close on October 27. The IPO price band has been fixed in the range of ₹329 to ₹346 of face value of ₹2. Investors can bid for a minimum of 43 equity shares

NIFTY-50 OUTLOOK • NIFTY-50 witnessed a vertical downward breakout and the fall accelerated post the breakdown of 19,400 levels being the 100 day average. On the higher side now 19,400-19,500 would act as strong resistance from current levels and the volatility to increase with respect to the rollover movement. •The round number of 19,000 levels would act as support as being the highest put Ol and oversold levels on hourly charts. • Highest call O has moved lower to 19,500 strike while on the downside the highest put Ol is at 19,000 for the monthly expiry. -- Reliance Securities

Our markets corrected sharply in the first trading session of the week as the negative global cues continued to weigh negatively. The Nifty broke its important supports one after another as the broader markets witnessed significant selling pressure and the index ended the day below 19300 with a loss of over 250 points.

The week started with a continuation of the corrective phase, but this time it’s not only the benchmark index but the broader markets (midcaps and small caps) too witnessed selling pressure. Nifty broke its important swing low support of 19330 and ended well below it. However, the data was already bearish since sometime as the recent pullback move did not see any significant short covering or long formations. The short positions by FIIs are intact in the system with around 75 percent positions on the short side. The RSI oscillator gave a negative crossover in Nifty last week hinting at losing momentum. Thus, until the data changes, we continue with our cautious approach on the market and advise short term traders to avoid aggressive trades. The major support zone for Nifty is now placed in 19000-18900 range and in case the index approaches this zone then one can look for some contra trades. On the higher side, 19400-19500 will now be seen as the immediate resistance zone on any pullback moves.

The Midcap and the small cap index corrected sharply and both the indices breached their crucial supports. Although the mid to long term trend remains positive, the momentum in the short term could continue to be negative.

Colgate India has registered toothpaste-portfolio MRP CAGR of 10-18% over the last three years, except in mass-end Cibaca (~5%), to bridge the product price gap with other global markets. This compares with its muted 2-5% price CAGR over 2013-20. A closer look at the various segments in Toothpaste reveals Colgate is now priced at a premium to most incumbents. Advocated further by its global CEO Noel Wallace, Colgate India will now focus on scientific expertise and technical superiority of offerings, with a view to premiumize the category. The Naturals segment, which forms ~30% of the market, is likely to be a defocus segment for the company. We still see lack of structural growth as a fundamental concern for the stock. Hence, we maintain SELL with Sep-24E TP of Rs1,800/share, on 35x P/E (based on the last 5Y avg. fwd. P/E).

Emkay Securities initiatives coverage on UGRO Capital with a BUY recommendation and target price of Rs425/share (implied FY25E P/BV: 2.1x), offering 47% upside. UGRO’s relative obscurity is mainly due to its private equity business model—tech[1]enabled, talent-intensive and frontloaded cost structure—designed to support scale while minimizing risk. Their conviction about UGRO’s strategy rests on 3 pillars: i) MSME-focused lending with large TAM. ii) Business model optimized for sectors, with stress on data homogeneity and underwriting tech models for six sigma events like GST/pandemic. iii) Its unique asset underwriting skills that can be symbiotically exploited to co-lend/co-originate with PSBs/others, which otherwise incur high credit cost on priority lending. UGRO would grow AUM by 3x to ~Rs194bn by FY26E and log 54% EPS CAGR over FY24-26E. With scale, the UGRO stock is set to pole-vault to a core portfolio holding, given its distinctive business model that has a long growth runway.

Sadhna Nitro Chem claims to be the second company globally to make a product from nitrobenzene that’s used in making paracetamol

Samvardhana Motherson Automotive Systems Group BV (SMRP BV, BB/Stable) and parent Samvardhana Motherson International Limited’s (SAMIL) plan to acquire non-automotive businesses will not affect SMRP BV’s rating headroom, considering the minimal increase in financial leverage, says Fitch Ratings. “We believe the recently announced small acquisitions underscore the company’s measured approach amid its aim of expanding in non-automotive segments,” it said in a note.

Jefferies on Amber Ent: Maintain Buy on Company, raise target price at Rs 3990

CLSA on Amber Ent: Maintain Buy on Company, raise target price at Rs 3650

GS on Amber Ent: Maintain Buy on Company, raise target price at Rs 2990

GS on Torrent Pharma: Maintain Buy on Company, target price at Rs 2325

HSBC on Torrent Pharma: Maintain Buy on Company, target price at Rs 2200

Nomura on Torrent Pharma: Maintain Buy on Company, target price at Rs 2156

MS on SBI Cards: Maintain Overweight on Company, target price at Rs 1115

MS on PNB Housing: Maintain Overweight on Company, target price at Rs 880

Macquarie on JSW Steel: Maintain Neutral on Company, target price at Rs 841

MS on RBL Bank: Maintain Underweight on Company, target price at Rs 245

Jefferies on Torrent Pharma: Maintain Hold on Company, target price at Rs 2040

Macquarie on Nestle: Maintain Neutral on Company, target price at Rs 22700

Jefferies on JSW Steel: Maintain Underperform on Company, raise target price at Rs 630/sh vs Rs 580

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

HSBC on HUL: Downgrade to Hold on Company, cut target price at Rs 2700

Krishna Institute of Medical Sciences: The company’s subsidiary, KIMS Hospital Enterprises Pvt., acquired an additional 12.09% equity stake in Kondapur Healthcare for Rs 24.11 crore. The company’s total equity stake in Kondapur Healthcare now stands at 37.18%.

Trident Limited : Board approved appointment of of Mr. Vinod Kumar Goyal as Chief Executive Officer for Yarn Business from October 23, 2023 ,He has more than four Decades of work experience in Textile industry wherein he worked with the Vardhman Textiles Limited and SEL Manufacturing Company Limited. He has rich experience in Yarn Business

LTIMindtree Limited : Mr. Samir Gosavi has joined the Company as Chief Business Officer - Retail & Consumer Goods w.e.f. October 23, 2023.

Shoppers Stop Limited : Company has further made investment aggregating to Rs. 5 Crores in the preference share capital of GSBBL( Global SS Beauty Brands Limited formerly known as Upasna Trading Limited), by way of subscription to Rights Issue of additional 500 NOCPS of Rs. 1,00,000/- of GSBBL.

SIGNATUREGLOBAL (INDIA) LIMITED :The company entered into a sale deed for acquiring a land parcel measuring approximately 25.75 acres in Gurugram, Haryana, for the development of a group housing project.

Tech Mahindra Limited : The company’s U.S.A. unit approved divesting 30% holding in Avion Networks Inc. The stake is to be divested for a consideration of $50,000, and the divestment is to be completed by Oct. 31

Clara Industries Limited :Company has expanded its operations by establishing a new manufacturing unit at Office Khasra no. 219 Padli Khushalpur, Saharanpur, U.P.-247001 and it is designed to enhance their production capacity and improve operational efficiency .The manufacturing unit is expected to become operational from October 25, 2023

Siemens Limited : Company has filed Petition before the Hon’ble Bombay High Court challenging Show Cause Notice (SCN) issued by the GST authority worth of Rs. 246,95,48,687/- (Tax, Interest on the date of Notice and Penalty)

Adani Ports and Special Economic Zone Ltd : Company has incorporated a wholly owned subsidiary company “Udanvat Leasing IFSC Limited” on October 23, 2023.Udanvat shall carry out business of owning and leasing of Aircraft

Pooja Entertainment and Films Limited : Board meeting to be held on October 28, 2023 to consider issuance of bonus shares subject to approval by the shareholders of the Company

Niraj Cement Structurals Limited : Company has has received work order for “ES-232 Training Widening and Deepening of Ushanagar Nalla System (Upstream Side of Railway Line) in Catchment No.305 in Bhandup West from Municipal Corporation of Greater Mumbai (MCGM) value of worth Rs. 86.70 Crores excluding GST

KPI Green Energy Limited : Company has received new order for executing Wind-Solar Hybrid Power Project for 4.20 MW capacity comprising of 4.20 MW wind and 3.60 MW solar capacity from M/s. Sustainable Spinning and Commodities Pvt. Ltd. under ‘Captive Power Producer (CPP)’ Segment of the Company.

Colgate-Palmolive (India) Limited : Company leads the charge in elevating India’s Oral Care standards, shares the ‘Sweet Truth .Embarks on a mission to promote the healthy habit of night time teeth brushing, aiming to reshape oral hygiene practices for a healthier future

LTIMindtree: company, has announced that it has won the prestigious Golden Peacock Award in 2023 for its sustainability efforts. The award affirms LTIMindtree’s organizational strategy, stakeholder engagement, and commitment to environmental and social impact.

Godawari Power & Ispat Ltd : Board meeting to be held on 03 Nov 2023 to consider and approve the proposal for sub-division of the equity shares of face value of Rs. 5/- each of the Company in such manner as may be determined by the Board of Directors

LUPIN LTD : Company has received approval from the United States Food and Drug Administration (U.S. FDA) for its Abbreviated New Drug Application for Fluconazole Tablets USP, 50 mg, 100 mg, 150 mg, and 200 mg, to market a generic equivalent of Diflucan® Tablets, 50 mg, 100 mg, 150 mg, and 200 mg, of Pfizer, Inc. This product will be manufactured at Lupin’s Pithampur facility in India.

RBLBANK

Buzzing Stocks: Delta Corp, Reliance Industries, Lupin, Vedanta, NHPC, Dalmia Cement, Supriya Life, Tech Mahindra, Axis Bank, Asahi Songwon, Bannari Amman Sugars, Chalet Hotels, CPCL, Dreamfolks, Godrej Ind, Gulf Oil, Jubilant Food, Shanti Gears, Star Housing

As of 07:17 AM Wednesday 25 October 2023

Can set alert for them at www.researchbytes.com

12:00 PM Mahindra Logist

Dial: +91 22 6280 1309

Weblink: https://tinyurl.com/26376tzh

12:30 PM Kewal Kiran

Dial: +91 22 6280 1545

Weblink: https://tinyurl.com/mpfdmsfw

3:30 PM Nestle

(Results)

Weblink: https://tinyurl.com/ycxtweyx

4:00 PM PARAGON FINE

Weblink: https://tinyurl.com/36asxzrz

4:00 PM Lloyds Metals & Energy

(Results)

Dial: +91 22 6280 1224

Weblink: https://tinyurl.com/ysdhfxpc

4:00 PM Aurum Proptech

Dial: +91 22 6280 1398

Weblink: https://tinyurl.com/bdzfprvz

4:30 PM Sona BLW Precision Forgings

Weblink: https://tinyurl.com/4ca4z8vk

4:30 PM Welspun India

Dial: +91 22 6280 1146

Weblink: https://tinyurl.com/ys32uvvn

5:00 PM Sonata

Dial: +91 22 6280 1240

Weblink: https://tinyurl.com/yck98bjz

5:00 PM DreamFolks

Dial: +91 22 6280 1107

Weblink: https://tinyurl.com/ytdft8jn

5:30 PM Chalet Hotels

Dial: +91 22 6280 1436

Weblink: https://tinyurl.com/y62us355

6:00 PM Jubilant Food

Dial: +91 22 6280 1818

Weblink: https://tinyurl.com/238dwv6p

6:15 PM Axis Bank

Dial: +91 22 6280 1253

Weblink: https://tinyurl.com/fnykd2xc

6:30 PM Tech Mahindra

Dial: +91 22 6280 1217

Weblink: https://tinyurl.com/4ukbyuhe

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20 Microns, Asahi Songwon, Colors Aurionpro Solutions, Axis Bank, Bannari Amman Sugars, BCPL Railway Infra, Bharat Wire, Chalet Hotels, CMS Info Systems, Chennai Petroleum Corporation, Continental Contorls, Cranes Software, Dreamfolks Services, Godrej Industries, Gulf Oil Lubricants India, HG Industries, Indus Towers, Jubilant FoodWorks, Lakshmi Machine Works, LKP Finance, Network18 Media & Investments, Rallis India, SEMAC, Shanti Gears, Share India, Sona BLW Precision Forgings, Sona BLW Precision, Sonata Software, Star Housing Finance, Tech Mahindra, TV18 Broadcast and Welspun India.

Today is the last date to buy shares to benefit for corporate action

JAYBARMARU 26/10/2023\u0009Stock Split From Rs.5/- to Rs.2/-\u000926/10/2023-26/10/2023

KSOLVES 26/10/2023\u0009Interim Dividend - Rs. - 7.0000\u000926/10/2023-26/10/2023

TCIEXP 26/10/2023\u0009Interim Dividend - Rs. - 3.0000\u000926/10/2023-26/10/2023

Security Ex.Date\u0009Purpose\u0009BC.Period

INFY 25/10/2023\u0009Interim Dividend - Rs. - 18.0000\u000925/10/2023-25/10/2023

Provisional Cash Rs. In Crs. (23th Oct .)

FIIs +252 (8,230-7,978)

DIIs +1112 (8,023-6,911)

Sensex: 64,572 (-826) (-1.26%) : shut

Nifty: 19,282 (-261) (-1.34%) : shut

BankNifty: 43,151 (-572) (-1.31%): shut

NiftyIT: 30,848 (-621) (-1.97%): shut

MIDCAP: 38,817 (-1,061) (-2.66%): shut

Dow: 33,141: +205: +0.62%

S&P: 4,247: +31: +0.73%

Nas: 13,140: +122: +0.93%

Brazil: 112,785 (-371) (-0.33%)

Ftse: 7,390: +15: +0.20%

Dax: 14,880: +79: +0.54%

Cac: 6,894: +43: +0.63%

MOEX: 3,265: +1: +0.04%

WTI Oil: $83.74 (-2.05%)

Brnt: $88.08 (-1.95%)

Natural Gas: 2.97: +1.54%

Gold: $1986 (-0.09%)

Gold 22 Carat/g: 5655: +20: 0.35%

Silver: $23.12 (-0.41%)

Copper: $362: +1.05%

Cotton: $82.93: +0.96%

Copper (LME): $7,972: +24: +0.30%

Alluminum (LME): $2,176 (-6) (-0.25%)

Zinc (LME): $2,420 (-18) (-0.74%)

Tin (LME): $24,890 (-95) (-0.38%)

Re: 83.19: +0.08%: shut

India Vix: 10.9: +0.74%: shut

BalticDry: 2,017 (-29) (-1.42%)

Atul Auto Limited - 1700336 equity shares of Rs. 5/- each issued at a premium of Rs.193 to Promoter and Non Promoter on a preferential basis pursuant to conversion of warrants

Listing of Equity Shares of Arvind and Company Shipping Agencies Limited (SME IPO)- NSE 12137800 shares…IPO px 45/-…lot size 3000

Stocks in Asia made gains as President Xi Jinping increased his support for China’s economy, boosting optimism in the wake of strong corporate earnings in the US, which also drove Wall Street rallies.

In early trading, the Nikkei 225 index increased by 1.23%, equivalent to 382.70 points, reaching 31,445.05. Simultaneously, the broader Topix index climbed 1.14%, or 25.49 points, to 2,266.22.

Conversely, oil prices remained nearly unchanged on Wednesday, as indications of tighter U.S. supplies countered economic data that cast a shadow on the outlook for energy demand.

Brent crude futures saw a marginal 2-cent increase, reaching $88.09 per barrel. Notably, the benchmark prices had declined in the three preceding sessions.