Share Market Highlights 06 October 2023: Sensex up 364 pts, Nifty closes above 19,650; TCS to consider share buyback next week

The rupee appreciated 4 paise to settle at 83.21 (provisional) against the US dollar on Friday amid positive equity markets as the Reserve Bank kept the repo rate unchanged in its fourth consecutive monetary policy review.

Selling pressure from foreign equity investors amid elevated levels of the greenback, however, restricted the upward movement of the local currency, according to forex traders. Read more.

Biocon Ltd announced the signing of a partnership agreement with Juno Pharmaceuticals, a specialty pharmaceutical company in Canada, for the commercialisation of its vertically integrated, complex formulation, Liraglutide, a drug-device combination for the treatment and management of Type 2 diabetes and obesity.

Benchmark equity indices Sensex and Nifty rallied for a second straight session on Friday after the Reserve Bank maintained the status quo on policy rates, resulting in gains for rate-sensitive sectors like financial, realty and auto.

A firm trend in Asian and European markets also bolstered the investors’ sentiment, traders said.

The 30-share BSE Sensex climbed 364.06 points or 0.55 per cent to settle at 65,995.63. During the day, it jumped 464.24 points or 0.70 per cent to hit 66,095.81.

The Nifty advanced 107.75 points or 0.55 per cent to end at 19,653.50. Read more.

Major gainers: Bajaj Finserv (5.56%); Bajaj Finance (4.12%); Titan (2.56%); IndusInd (2.22%); Tata Consumers (1.55%)

Major losers: Hindustan Unilever (-0.56%); Bharti Airtel (-0.38%); Coal India (-0.36%); ONGC (-0.36%); Axis Bank (-0.19%)

Stocks advanced on BSE at 3 pm on October 6, 2023, were 2,293 against 1,324 stocks that declined; 153 stocks remain unchanged. Total stocks traded were 3,770. The number of stocks that recorded a 52-week high was 248, and those that hit a 52-week low was 22.

HFCL Ltd informed the exchange about the award in favour of the Company amounting to ₹72.34 crore in the matter of Arbitration between Wireless Advisor, Wireless Planning and Coordination, a wing of Ministry of Communication, Government of India (WPC) and HFCL Limited.

The company’s stock rises by 1.69% on the NSE, trading at ₹75.30.

India is preparing to raise industry concerns on non-tariff barriers faced by them in various countries, at the WTO’s Technical Barriers to Trade (TBT) committee meeting in Geneva from November 6-10. Read more

Tata Motors Group global wholesales in Q2 FY24, including Jaguar Land Rover, were at 3,42,376 numbers., higher by 7%, as compared to Q2 FY23.

The stock inches up by 0.51% on the NSE, trading at ₹622.75.

Shreyas Intermediates Ltd has informed the exchange that Hariprakash Ratanlal Bohra has tendered his resignation from the post of Chief Financial Officer of the Company with immediate effect due to other commitments.

Zydus Lifesciences has received final approval from USFDA for Sugammadex Injection, 200 mg/2 mL (100 mg/mL) and 500 mg/5 mL (100 mg/mL), Single-Dose Vial (USRLD: Bridion® Injection, 200 mg/2 mL (100 mg/mL) and 500 mg/5 mL (100 mg/mL)).

The stock rises by 0.16% on the NSE, trading at ₹606.

• Swan Energy (4.30%)
• DLF (3.50%)
• Godrej Properties (3.09%)
• Lodha (2.53%)
• Sobha (1.89%)

Ramesh Narasimhan, CEO, Worldline India on RBI MPC announcement

“The announcement by the Reserve Bank of India to extend the Payments Infrastructure Development Fund (PIDF) scheme tenure by another two years is a welcome move. It shows the commitment and focus of the regulator to increase the reach and penetration of digital payments further. We look forward to working extensively on our part as a leading payments player to accelerate the deployment of digital payment acceptance modes in the targeted geographies.”

India Steel Works Ltd disclosed in a regulatory filing that Office of Tehsildar and Executive Magistrate, Khalapur, took possession of secured assets i.e its factory at Khopoli. The Company is in process of making an Appeal with appropriate authorities to recall the Order & restoration of the possession of the Assets.

The stock trades at ₹2.19, up by 0.92% on the BSE.

RBI has allowed NBFCs classified as middle and base layer entities, to utilise credit risk mitigation tools to offset their exposure with eligible credit risk transfer instruments. Read more

The board of Spandana Sphoorty Financial has approved allotment of 12,500 securities pursuant to non convertible securities. The stock inches up by 0.18% on the NSE, trading at ₹796.

KCP Ltd is keen to expand its facilities from component manufacturing into system integration in coming days, the company said in a regulatory filing. The stock rises by 2.58% on the NSE, trading at ₹133.30.

One of the most important but uncomfortable discussions is the one surrounding the life of shares after the demise of the original investor. Many times, upon the death of an investor, her/his family members have to run from pillar to post and face a lot of issues to claim the assets. Read more

Company says consolidated revenue to register mid to high single digit growth. Operating profit to grow in line with revenue and remain steady compared to same quarter last year. Read more

Brahmaputra Infrastructure Limited has received a contract from JCC INFRAPROJECTS BIL JV, order valued at ₹98.57 crore.

The stock is down by 0.56% on the BSE, trading at ₹44.75.

EaseMyTrip.com has announced its strategic partnership with Cover Genius, the insurtech for embedded protection.

The stock is up by 1.80% on the NSE, trading at ₹42.45.

ONGC board has accorded its approval for extension of back stopping support to investors for Compulsorily Convertible Debentures (CCDs) of ₹5,615 crore issued by ONGC Petro additions Limited (OPaL), a joint venture of the company; and for providing Letter of Comfort (LOC) for raising additional debt by OPaL up to ₹5,400 crore subject to approval of shareholders of the Company.

The stock slides down by 0.55% on the NSE, trading at ₹181.20.

The RBI will introduce the facility for creation of card-on-file tokenisation at the issuer bank level to enhance convenience for cardholders in getting tokens created and linking them to their existing accounts with e-commerce applications.

“Given the growing acceptance and benefits of tokenisation of card data, it is now proposed to introduce Card-on-File Tokenisation (CoFT) creation facilities directly at the issuer bank level,” Governor Shaktikanta Das said. Read more

• Ahlada Engineers (18.02%)
• PNB Gifts (16.54%)
• Rajshree Polypack (15.46%)
• The Byke Hospitality (15.02%)
• Mindteck (India) (12.12%)

RBI Governor Shaktikanta Das has said it is desirable that banks having surplus funds explore lending opportunities in the interbank call money market, rather than passively parking funds in SDF (standing deposit facility) at relatively less attractive rates.

Das underscored that elevated levels of MSF (marginal standing facility) borrowings amidst substantial funds parked under the SDF is symptomatic of skewed liquidity distribution in the banking system. Read more

Som Distilleries & Breweries stock declines by 2.33% on the NSE, trading at ₹372.50. The company’s board had authorised the opening of its fund raise and approved the floor price of ₹349.24 for the issue.

RBI has extended the Payments Infrastructure Development Fund (PIDF) scheme by another two years till December 31, 2025. It will now include beneficiaries of the PM Vishwakarma scheme.

“The decision to expand the targeted beneficiaries under the PIDF scheme will provide a fillip to the Reserve Bank’s efforts towards promoting digital transactions at the grassroots level,” it said. Read more

Zaggle Prepaid Ocean Services stock jumps 7.59% on the NSE, trading at ₹218.35. The company had entered into a contract with BOB Financial Solutions Limited for Implementing Commercial card Onboarding & value-added services platform.

The Reserve Bank of India has increased the existing limit for gold loans under the Bullet Repayment Scheme to ₹4 lakh from ₹2 lakh in respect of Urban Co-operative Banks who have met the overall target and sub-targets under the Priority Sector Lending as of March-end.

RBI permitted bullet repayment of gold loans up to ₹1 lakh to start with (in 2007), which was increased later (in 2014) to ₹2 lakh, with the repayment being restricted to 12 months. Read more

NSE has received approval from SEBI for launching Options contracts on underlying WTI Crude Oil and Natural Gas Futures. The contracts would be available for trading from October 09, 2023, as per the respective launch calendars.

The Reserve Bank of India has left inflation projection for FY24 unchanged at 5.4 per cent, even as Governor Shaktikanta Das reiterated that that the inflation target is 4 per cent, not 2-6 per cent. Read more

Major gainers: Bajaj Finserv (3.43%); Titan (1.62%); ITC (1.47%); Tech Mahindra (1.43%); HDFC Life (1.40%)

Major losers: ONGC (-0.71%); Hindustan Unilever (-0.58%); Bharti Airtel (-0.38%); Britannia (-0.24%); Axis Bank (-0.15%)

Stocks advanced on BSE at 12 noon on October 6, 2023, were 2,144 against 1,318 stocks that declined; 161 stocks remain unchanged. Total stocks traded were 3,623. The number of stocks that recorded a 52-week high was 219, and those that hit a 52-week low was 19.

BUY CDSL CMP: 1339 TRGT: 1500 SL: 1250 - TECHNICAL PICK - CDSL has moved up decently and decisively above the 50EMA level with a bullish candle pattern in the daily chart after a consolidation phase witnessed for quite some time. With the RSI also well placed and indicating a trend reversal to signal a buy, we anticipate a further upward rise in the coming days. With the chart looking attractive, we suggest buying and accumulating this stock for an upside target of 1500, keeping the stop loss of 1250.

Baroda BNP Paribas Mutual Fund announced the launch of Baroda BNP Paribas Small Cap Fund, an open-ended equity scheme predominantly investing in small-cap stocks. The fund will be managed by Shiv Chanani (Senior Fund Manager). Shiv has over 24 years of experience and has deep experience in mid and small cap space. The fund will be benchmarked against Nifty Small Cap 250 TR Index.

The salient features of the Small-Cap Fund include:

• The fund will invest more than 65% of the net assets into small-cap companies
• The fund will follow a bottom-up stock-picking approach. Emphasis will be on selecting companies with strong fundamentals, quality business models and strong management teams.
• The fund will be sector-agnostic.
• It aims to build wealth for investors by tapping into companies which have the potential to become leading companies in future.

LTIMindtree informed the exchange that the branch office of the company in Norway has been voluntarily deregistered and closed w.e.f. October 5, 2023. The stock inches up by 0.61% on the NSE, trading at ₹5,258.25.

The Great Eastern Shipping Company Limited informed the exchange about the resignation of Anuj Garg, Joint Head – Research, effective today. The company’s stock rises by 1.44% on the NSE, trading at ₹838.50.

Panacea Biotec stock declines by 0.65% on the NSE, trading at ₹176.50. The company had received a notification from the International Court of Arbitration, Paris, intimating that an Arbitration proceeding has commenced with respect to the Request for Arbitration filed by Apotex Inc., an entity based out in Canada.

Axiscades Technologies stock surges by 4.99% on the NSE, trading at ₹548.75 following the appointment of Abidali Neemuchwala as its Chairman and Non-Executive Director.

“Despite a pause, the RBI MPC’s hawkish language suggests that price stability is questionable, and domestic financial conditions will remain tight. Policymakers are also mindful of the tight external financial conditions and narrowing (IN-US) rate differentials, notwithstanding the comfortable reserves cushion and impending foreign bond inflows. Post-decision, IGBs were under a cloud, as OMOs could be tapped for liquidity management.”

In extending the Payments Infrastructure Development Fund scheme and broadening its coverage to include PM Vishwakarma scheme beneficiaries, the Reserve Bank of India (RBI) has demonstrated a proactive approach towards bolstering the nation’s digital payments ecosystem. This move aligns with the ever-evolving needs of the industry and further paves the way for financial inclusion and a crucial support to artisans and craftspeople through end-to-end assistance.

The proposal to introduce card-on-file tokenization directly at the bank level is a game-changer for both cardholders and the financial industry as a whole. It enhances convenience and security, reducing the friction associated with digital transactions. This forward-looking initiative reflects the RBI’s commitment to fostering a robust and secure payments landscape in India.

“The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided unanimously to keep the policy repo rate unchanged at 6.50%, third time on the trot. The committee took comfort from falling core CPI inflation, and decided to persist with existing tightness of monetary policy to guide headline inflation to its 4% target. While the committee retained its FY24 CPI inflation projection at 5.4%, it continues to remain vigilant about the volatile food and energy prices. On the liquidity front, the Governor hinted at the possibility of using OMO sale operation, if required. Hence, while the policy outcome was largely in line with expectations, the possibility of OMO sale operations by the RBI will keep bond bulls in check till further clarity emerges. We expect 10-year benchmark government bond to trade in the 7.15%-7.35% band in the near term.”

We are far from reaching the inflation target of 4%. Theoretically there should have been a rate hike but when you take a more nuanced approach, status quo is the smarter thing to do. India is facing some challenges, both internal and external. Kharif crop are being sowed and reservoir water levels are low, the monsoons are about to end and a lack of water leads to uncertain farm income during Basant Panchami next year. On the international stage, oil prices are volatile and $9 higher on average than last quarter. The rupee is the lowest it has ever been. Considering these, on the backdrop of high GDP growth, the status quo on repo rate is absolutely logical.

State Bank of India informed the exchange that the Central Government extends the term of office of Dinesh Kumar Khara, Chairman of the bank, beyond October 6 till he attains the age of 63 years, or until further orders, whichever is earlier.

SBI stock inches up by 0.50% on the NSE, trading at ₹595.10.

“If we consider the present trends, the overall consumer market looks bullish across sectors, particularly the automobile and housing markets, which in many ways reflect the health of the economy. We are entering the festive quarter with a very strong momentum in housing sales, and unchanged interest rates will act as a major catalyst for growth in the residential market,” he said.

KPI Green Energy stock rises by 1.86% on the NSE, trading at ₹903 after bagging new orders aggregating to 12.10 MW for executing solar power projects

Nifty 50 and Sensex are holding on to their gains made on Thursday and have risen further. Both the indices are up about 0.3 per cent each. Sensex is trading at 65,807 and Nifty is at 19,604. Read more

Bank Nifty opened today’s session with a gap-up at 44,395 versus Thursday’s close of 44,213. The index then moved higher to 44,470, up 0.6 per cent.

Substantiating the bullish inclination, all the stocks in the index have advanced so far today. Bank of Baroda and IndusInd Bank are the top gainers, up 1.6 and 1.2 per cent, respectively. Read more

Shrey Jain, Founder & CEO, SAS Online - a deep discount broker said incremental Cash Reserve Ratio bidding farewell, starting October 7 promises a liquidity boost for banks. Conversely, increasing bond yields might cause concern among investors. Also, the economy may face risk due to global market instabilities and a global economic slowdown.

However, India’s primary emphasis is on maintaining macro stability and fostering fundamental growth, he said.

The Central bank kept the benchmark repo rate unchanged at 6.5%.

Volatile crude and below par Kharif sowing has kept everyone guessing about the inflation trajectory. However green shoots should be visible with softening core inflation and favourable seasonal factors. This explains somewhat the reason for little change in Inflation estimates.

GDP estimates for FY24 too were retained at 6.5 per cent as PMI remains robust and Credit growth continues to be strong.

With no surprises at play, this policy should be a non-event for the markets. Rather the way forward for Equities would be guided by the upcoming Quarterly results season, he said.

Steady interest rates with no change in stance was widely expected and par for the course. Despite the second quarter bulge in inflation, the RBI kept its inflation forecast for the current fiscal unchanged at 5.4%.

Further, the incomplete transmission of past 250 basis-points rate hikes to bank lending and deposit rates reinforced MPC’s imperative to continue its stance of withdrawal of accommodation. Noting resilient economic conditions, the MPC kept its GDP forecast unchanged at 6.5% this fiscal.

Food inflation remains a key monitorable not only because it is in double digits, but also because sub-normal monsoon and muted sowing can impact kharif output and prices. Additionally, low reservoir levels do not augur well for the rabi crops.

Crude oil has seen a lot of volatility of late and there is a reason to be cautious on that front — more due to geopolitical factors than demand, which is slowing and unlikely to drive crude prices up.

Tightening of US bond yields, capital outflows and strengthening dollar also tilt the balance in favour of ‘withdrawal of accommodation’ stance. We expect rates to remain at these levels and foresee a rate cut only in the first quarter of next fiscal.

Infosys stock inches up by 0.51% on the NSE, trading at ₹1,470.95. The IT major and Economist Impact, an arm of The Economist Group that works with organisations globally to further their missions, have announced the launch of the Value Chain Navigator (VCN) to help businesses understand and address their scope 3 emissions.

Status quo on the policy rates as well as stance was very much in line with street expectations. The Central bank kept the benchmark repo rate unchanged at 6.5%.

Volatile crude and below par Kharif sowing has kept everyone guessing about the inflation trajectory. However green shoots should be visible with softening core inflation and favourable seasonal factors. This explains somewhat the reason for little change in Inflation estimates.

GDP estimates for FY24 too were retained @6.5% as PMI remains robust and Credit growth continues to be strong.

With no surprises at play, this policy should be a non-event for the markets. Rather the way forward for Equities would be guided by the upcoming Quarterly results season.

“A completely in line with expectations policy is neutral from the market perspective. Not only the policy rates but the growth and inflation targets for FY24 remain unchanged. More than this status-quo statement from the MPC, tonight’s job numbers from the US will determine the market trend in the near-term. Rate sensitives like banks will start discounting the positive Q2 results expected in the coming days.

The warning from the governor that the central bank will resort to OMOs to absorb excess liquidity if necessary has pushed the 10-year bond yields up marginally.

The Reserve Bank of India has increased the existing limit for Gold Loans under the Bullet Repayment scheme from ₹2 lakh to ₹4 lakh in respect of Urban Co-operative Banks who have met the overall target and sub-targets under the Priority Sector Lending as of March-end.

RBI permitted bullet repayment of gold loans up to ₹1 lakh to start with (in 2007), which was increased later (in 2014) to ₹2 lakhs, with the repayment being restricted to 12 months.

UCBs are allowed to extend gold loans under Bullet repayment and Equated Monthly Instalment (EMI) repayment routes for 12 months.

Under bullet repayment, the principal and interest on a loan are paid in lump sum by a borrower to a lender at the end of the loan tenure.

Under EMI, a fixed amount of payment (includes principal and interest components) is made by a borrower to a lender at a specified date each month.

Among banks, UCBs have a relative advantage as their customers, being predominantly from middle class/lower middle class, are more likely to be gold loan clients. As such, the regulatory prescriptions in this regard need to be highly supportive of the growth of this portfolio of the UCBs.

Nykaa shares rises by 1.94% on the NSE, trading at ₹149.85. The company announced robust performance in the September quarter across all verticals, including Nykaa Fashion.

Crompton Greaves Consumer Electricals has announced the launch of two products - Rapidjet Pro and Rapidjet Royale. The stock is up by 0.30% on the NSE, trading at ₹300.75.

Major gainers: Ujjivan Small Finance (7.60%); DBL (7.34%); Kalyani Jewellers (6.79%); J&K Bank (5.96%); Cressanda (5.45%)

Major losers: Edelweiss (-2.97%); MRPL (-2.93%); Elecon (-2.82%); Chennai Petroleum (-2.58%); Vodafone Idea (-2.23%)

The board of Manappuram Finance had approved the allotment of NCDs of face value of ₹100,000 each for an amount of ₹600 crore on private placement basis.

The stock inches up by 0.57% on the NSE, trading at ₹141.80.

“The RBI Governor mentioned that the pitch is turning and we will play the ball on merit. Today’s policy is like Kapil Dev Policy. It will manage liquidity, inflation, growth, rupee and financial sector stability in an appropriate equilibrium like a legendary all-rounder Kapil Dev managed bowling, batting, fielding and captain ship. The RBI has worked hard to create a balance between growth and inflation setting an example for rest of the world. This policy continues to take that hard work forward.”

Railtel Corporation of India has received work order from Jammu Smart City Limited for ₹67.95 crore. The stock rises by 1.21% on the NSE, trading at ₹216.80.

Ankush Kaul, Chief Business Officer at Ambience Group praised the decision made by the RBI’s Monetary Policy Committee to keep the key policy repo rate unchanged at 6.5%. This marks the fourth consecutive meeting where the MPC has opted to maintain the status quo on the repo rate. The MPC had previously raised this rate from 6.25 per cent to 6.50 per cent during its meeting in February 2023. Savvy homebuyers should seize this opportunity created by the MPC’s decision, benefiting from decreasing inflation and stable home loan rates. This development is particularly heartening for prospective homebuyers who are gearing up for the festive season, as it sets a positive tone for the residential real estate market. With unchanged repo rates, the momentum in housing sales, which has shown remarkable growth in the first three quarters of 2023, is expected to persist.

“Anticipation of a consistent repo rate is a welcome sign for individuals considering taking out home loans to purchase their first homes, as most banks are expected to maintain interest rates in the single-digit range. The impact of this steady rate on the upcoming festive season in the residential real estate industry is poised to be substantial. It is likely to drive increased demand for homes during this festive period, as the combination of affordable financing and stable rates creates an enticing environment for potential homebuyers, fostering optimism in the real estate market.” he added.

Ujjivan Small Finance Bank stock surges by 6.68% on the NSE, trading at ₹60.70. Its total deposits grew 43% y-o-y to ₹29,134 crore in the July-September quarter.

“The RBI’s decision to pause along with retaining the withdrawal of accommodation stance was in line with expectations. Importantly, the RBI has explicitly highlighted the need to use OMO sales to modulate liquidity. This will weigh down bond markets’ sentiments. Concerns on food inflation were highlighted which can impart upside to headline inflation. We believe that inflation risks remain on the upside given weather related impact as well as commodity prices. Global monetary conditions will also weigh on RBI’s policy decisions. The good part is that growth remains resilient and core inflation remains under check. We maintain our call for a prolonged pause on repo rate at 6.5% well into FY2025 while liquidity over the medium term will be aimed at being close to neutral.”

Super Spinning Mills stock rises by 2.53% on the NSE, trading at ₹8.10. The company had executed an Agreement for Sale of some of the immovable properties of the Company with Super Sara Textiles limited, an advance amount of ₹4 crore has been received.

IndiGo stock rises by 2.61% on the NSE, trading at ₹2,538 after the company re-commenced direct flights between Delhi and Hong Kong, effective October 5.

NTPC Renewable Energy Ltd (NTPCREL), a wholly-owned subsidiary of NTPC India Ltd, expects to hit the capital market with its IPO (initial public offering) next year. But the quantum of funds to be raised is yet to be known.

“We are still talking to the merchant bankers and maybe next year we will able to do that,” Mohit Bhargava, Chief Executive Officer of NTPCREL told businessline at the Greenergy 2023 conference here. Read more

The six-member monetary policy committee (MPC) unanimously voted to keep the policy repo rate on hold at 6.50 per cent to tackle retail inflation, which was still above its upper tolerance level of 6 per cent as per the latest reading amid a patchy South-West monsoon, and rising oil prices, and support growth. Read more

Valiant Laboratories IPO got listed on the stock market today at Rs 162.15 per share, a premium of 15.8% over its IPO price of Rs 140.

The IPO was subscribed to 29.76 times, which is a good response from investors. This could be due to the company’s improving financial performance, experienced promoters, and fair IPO price.

Overall, the listing of Valiant Laboratories was positive, with the company receiving a good response from investors. However, investors should carefully consider related risks as well, like the company’s single-product focus, dependence on a limited number of suppliers and customers, and the competitive industry. Thus, investors are advised to book profits and exit their positions, but those who want to hold for the long term should keep a stop loss at 150.

Mankind Pharma stock declines by 0.94% on the NSE, trading at ₹1,760 after the company reported disruption of operations at its manufacturing facilities at Sikkim due to flash floods.

Valiant Laboratories currently trades at ₹170.25 after listing at ₹162.15 on the NSE; trades at ₹169.05 listing at ₹161 on the BSE.

Mahindra EPC Irrigation stock rises by 2.15% on the NSE, trading at ₹119 after it bagged two contracts for supply of pressurized Micro Irrigation Systems for approx. ₹6.74 crore.

The rupee appreciated by 4 paise to 83.21 against the US dollar in early trade on Friday on positive cues from the equity market ahead of the RBI’s interest rate decision.

Selling pressure from foreign equity investors amid strengthening dollar resulted in a negative bias, according to forex traders.

At the interbank foreign exchange, the domestic unit opened at 83.21 against the dollar and then reached the 83.22 level, before touching 83.21 again. This was a gain of 4 paise against the closing level of 83.25 on Thursday.

The six-member monetary policy committee of the Reserve Bank of India will announce its decision on key interest rates on Friday. Traders are also awaiting US weekly unemployment data later in the day.

“Rupee traded in a narrow range and volatility remained low ahead of the important RBI policy statement that will be released today.

“Expectation is that the central bank could keep rates on hold and maintain a hawkish stance,” Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said.

Benchmark equity indices gained in early trade on Friday, extending their previous day’s rally, ahead of the Reserve Bank’s monetary policy review.

Firm trends in Asian markets also bolstered the investors’ sentiment.

The 30-share BSE Sensex climbed 257.41 points to 65,888.98 points in early trade. The Nifty advanced 78.25 points to 19,624 points.

Bajaj Finserv, Titan, Bajaj Finance, JSW Steel, Maruti, Tata Motors and IndusInd Bank were among the major gainers in the Sensex pack.

Larsen & Toubro, Hindustan Unilever, Bharti Airtel and Power Grid were the laggards.

Buyback

Sinclairs Hotels: Open: 06-Oct-23; Close: 12-Oct-23

Bonus

Omfurn India: Bonus Issue 1:5; Ex-Date: 06-Oct-23

Jonjua Overseas: Bonus Issue 9:50; Ex-Date: 10-Oct-23

Shri Venkatesh Refineries: Bonus Issue 1:1; Ex-Date: 29-Oct-23

Stock Split

Surya Roshni: Stock Split From Rs. 10/- to Rs. 5/-; Ex-Date: 06-Oct-23

Sigachi Industries: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 09-Oct-23

Gujarat Themis Biosyn: Stock Split From Rs. 5/- to Rs. 1/-; Ex-Date: 10-Oct-23

Themis Medicare: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 10-Oct-23

Dividend

06-Oct-23

ACCELYA: Final Dividend - Rs. - 30.00

Delhi Metro Rail Corporation had announced the expansion of its WhatsApp-based ticketing system, extended to cover all lines in the Delhi National Capital Region (NCR), including the Gurugram Rapid Metro in collaboration with Meta and their authorised partner Pelocal Fintech Pvt. Ltd.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The important event of today, the MPC’s monetary policy, is unlikely to impact the markets since no changes are expected in policy rates or stance. From the market perspective, the more important thing will be the US jobs data expected tonight. If the jobs data comes strong the market will react negatively discounting a rate hike by the Fed in the coming policy meeting. On the other hand, if the jobs data is weak, the market will rally discounting a pause by the Fed.

Expected Q2 results will influence stock prices in the coming days. Financials, particularly banking, auto mobiles, hotels, real estate, cement and capital goods will do well. A possible surprise may come from IT in the form of higher order bookings. Even if the results are expectedly poor, the stocks may rebound on the back of better orders and commentary.”

Lupin stock inches up by 0.48% on the NSE, trading at ₹1,154.75 after it received USFDA’s ANDA approval for Tolvaptan Tablets, 15 mg, 30 mg, 45 mg, 60 mg, and 90 mg.

Global crude steel production was up 2.2 per cent in August compared to the same period in the previous year.

Total production for August reached 152.6 million tonnes up from 149.5 mt in the same period a year ago.

Steel production in the 63 countries that collectively account for 97 per cent of global steel output was up 0.2 per cent in the first 8 months of this year to 1,256.4 mt.

China, the world’s largest steel producer, reported 3.2 per cent increase in output at 86.4 mt in August.

For the period between January to August, China’s steel production saw a 2.6 per cent growth at 712.9 mt.

India registered a significant surge of 17 per cent in steel output at 12 mt in August and the same between January and August increased 10 per cent to 92.2 mt.

Russia’s steel production soared by nine per cent in August at 6.4 mt. In contrast, Japan and South Korea reported declines of 2.9 per cent and 5.9 per cent in their steel production at 7.1 mt and 5.6 mt. The United States saw a 1.1 per cent increase at 7 mt, while Germany’s production declined by 1 per cent to 2.8 mt. Brazil and Turkey reported a drop in production of 5.9 per cent and 2.9 per cent at 2.7 mt and 2.8 mt, compared to the previous year.

Competitive intensity and softer raw material prices have resulted in a reduction in prices of soaps and edible oils in the second quarter, but fast moving consumer goods companies will avoid taking further price cuts as they are focused on protecting margins with some raw material prices inching up, BNP Paribas said in a note. Read more

Major gainers on the NSE at 9:30 am:

Bajaj Finserv (2.72%); Adani Enterprises (1.57%); Tata Consumers (1.37%); Bajaj Finance (1.33%); Titan (1.32%)

Major losers:

Hindustan Unilever (-0.61%); LT (-0.52%); Bharti Airtel (-0.22%); ONGC (-0.19%); Axis Bank (-0.11%)

Jul-Sep’23 Earnings Preview – Healthy outlook; margin revival visible

We expect our capital goods coverage universe to report healthy performance in Q2FY24 owing to 1) strong opening order books, 2) continued execution momentum, 3) favorable product mix and 4) better demand/orders/volumes from domestic as well as key export markets such as Middle East (ME), Americas, SAARC, Africa etc. Overall, we expect Revenue/Adj. PAT growth of ~16.8%/26.5% YoY (15.4%/33.7% YoY ex-L&T). Key monitorables would be margin guidance, demand outlook, order/ inquiries pipeline and working capital management. Our top picks are Siemens, L&T, APAR, ABB and BEL.

MIC Electronics Ltd has received work order from Kota Division of West - Central Railway Zone for enhancement of passenger amenities, worth over ₹2 crore.

Kotak Institutional Equities

Steel—we expect margins to expand for our coverage stocks, led by lower coal prices due to inventory lag, partly offset by weaker prices. Strong demand should lead to an 8% yoy volume growth in 2QFY24. Base metal producers should see a mixed bag quarter, as lower coal prices would get offset by lower commodity prices (zinc and aluminum). We find better risk-reward in ferrous over non-ferrous producers in our metals’ coverage. JSPL is our top BUY; recommend SELL on SAIL, VEDL, HZ and NACL.

September 2023 quarter earnings preview

We expect the 2QFY24 net income of the KIE universe to increase 38% yoy on an overall basis. Excluding oil marketing companies (OMCs), we expect the net income to increase 25% yoy. We expect OMCs to report a sharp rise in net profits yoy due to large marketing/inventory losses in 2QFY23. Other than OMCs, we expect a yoy increase in the net income of (1) automobiles (improvement in volumes, increase in ASPs and led by Tata Motors), (2) banks (lower provisions), (3) capital goods (strong execution and margin improvement), (4) commodity chemicals (margin expansion), (5) construction material and (6) metals & mining sectors. Sequentially, we estimate the net income of the KIE universe to decline 2%. We expect 2QFY24 net profits of the BSE-30 Index to increase 19% yoy and 2% qoq and for the Nifty-50 Index to increase 23% yoy and remain flat on qoq basis. We estimate ‘EPS’ of the BSE-30 Index at Rs3,078 for FY2024 and Rs3,544 for FY2025 and of the Nifty-50 Index at Rs952 for FY2024 and Rs1,076 for FY2025

Sun Pharmaceutical Industries Ltd announced that the USFDA has accepted the New Drug Application (NDA) for deuruxolitinib, an investigational oral selective inhibitor of Janus kinases JAK1 and JAK2, for the treatment of adults with moderate to severe alopecia areata.

The stock inches up by 0.69% on the NSE, trading at ₹1,126.85.

Indian equity benchmarks, the Sensex and Nifty, commenced the day on a positive note, aligning with the global equities’ upward trend driven by easing U.S. yields and declining crude prices. This was ahead of the Reserve Bank of India’s monetary policy announcement, where no change in key rates is expected.

As of 9:17 a.m., the BSE Sensex rose by 194.90 points to 65,826.47, while the NSE Nifty gained 68.20 points, reaching 19,613.95.

Among the Nifty gainers were Titan, Cipla, JSW Steel, Bajaj Finserve, and Tata Steel, while Hindustan Unilever, Nestle, Bharti Airtel, Britannia, and Axis Bank lagged.

The RBI’s rate decision is scheduled for 10:00 a.m., with market expectations leaning toward a status quo. Analysts are keenly watching for insights on domestic economic recovery and inflation trajectory due to recent crude price volatility, as highlighted by Narendra Solanki, Head of Fundamental Research at Anand Rathi Investment Services.

The absence of rate hikes this fiscal year, following a 250 basis point increase in fiscal 2023, has propelled the benchmark Nifty 50 to a 12.59% surge since April, reaching all-time highs.

Oil prices extended their downward trend on Thursday amid global demand concerns, a development favoring importers like India.

Foreign institutional investors continued to sell shares for the 12th consecutive session, amounting to Rs 1,864 crore on a net basis, while domestic institutional investors made purchases totaling Rs 521 crore.

Ujjivan Small Finance Bank: To meet investors on Oct. 5 and 19.

TD Power Systems: To meet analysts and investors on Oct. 11.

Anand Rathi Wealth: To meet analysts and investors on Oct. 13

Pyramid Technoplast: To meet analysts and investors on Oct. 10.

Zaggle Prepaid Ocean Services: To meet analysts and investors on Oct. 10.

Persistent Systems: To meet analysts and investors on Oct 19.

Chambal Fertilisers & Chemicals: Promoter Zuari Industries created a pledge of 10.77 lakh shares on Sept. 29.

CESC: Promoter Saregama India sold 1.54 crore shares on Sept. 25.

RPSG Ventures: Promoter Saregama India sold 3.08 lakh shares on Sept. 25.

Ion Exchange: Promoters Bimal Jain sold 1.07 lakh shares and Mahabir Prasad Patni sold 95,144 shares between Sept. 20 and 28

Som Distillery looking to raise upto Rs 200 crores via QIP, Indicative Floor price at Rs 350 per share, 5 per cent discount offered

Ujjivan SFB’s CASA ratio at 24 per cent against 26.9 per cent YoY. It was down marginally compared to 24.6 per cent QoQ

Tinplate said the Office of the Deputy Commissioner of Commercial Taxes, Jamshedpur Circle, has imposed a penalty of Rs 40 crore on the company.

WTI crude prices increased around $83 per barrel on Friday, but were still expected to lose about 9 per cent this week as fears about a tight supply were overcome by a worsening prognosis for global demand. The four-week average of US petrol demand fell to its lowest point for this time of year since 1998 on Wednesday, according to EIA statistics, while US petrol supplies increased at their fastest rate since the first week of 2022. News that Russia was considering relaxing its ban on diesel in the coming days put additional pressure on oil prices. Analysts also hypothesised that a decline in seasonal travel may have coincided with the start of demand destruction.

Quarterly Update: Q2 FY 2024

We continue to witness robust momentum in both footfalls and revenue across all our markets in India and the Middle East recording consolidated revenue growth of ~27% for the recently concluded quarter when compared to the same period in the previous financial year and ~29% revenue growth in the first half of the current financial year when compared to the same period in the prior year.

We saw revenue growth of ~32% for our India operations during Q2 FY2024 as compared to Q2 FY2023, led by robust operating momentum on the ground with healthy same-store-sales- growth across all the key markets in the country despite the Adhik Maas period falling in the quarter from the 3rd week of July until the 3rd week of August, a once in a 3-year phenomenon during which wedding jewellery demand tends to take a pause. However, this impact was mitigated by a fewer number of Shradh days during the recently concluded quarter when compared to the same period in the previous financial year. Non-south markets recorded higher revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months. Overall, the first half of the current financial year witnessed ~33% revenue growth in India when compared to the same period in the prior year.

Gross margin at the showroom level has been stable when compared to the same period in the previous financial year. As expected, given the higher share of revenue from franchised showrooms, blended gross margin has declined sequentially as well as when compared to the same period in the previous financial year.

We added 13 new ‘Kalyan’ showrooms across non-south markets during the recently concluded quarter and plan to launch a further 26 showrooms in the next 40 days, as part of the previously announced showroom roll-out plan, taking the total number of new showrooms launched during the current financial year to 51 by Diwali. In addition, we signed 6 LOIs for the first set of pilot franchised showrooms in the south region and we expect to launch these showrooms sometime during the second half of the current financial year.

In the Middle East, we continued to witness positive operating momentum. As previously indicated, Eid holidays-driven sales (recorded during Q1 of the current financial year), which was part of the Q2 revenue base in the prior year, impacted the overall revenue growth during the recently concluded quarter. Revenue growth for Q2 FY 2024 was in excess of 4% while revenue growth for the first half of the current financial year was ~13% as compared to the respective periods in the previous financial year. We launched the first franchised showroom in the Middle East region during the recently concluded quarter and have signed an additional 5 LOIs for franchised showrooms in the region.

Middle East contributed ~14% to our consolidated revenue for the recently concluded quarter.

Indian shares are set to open higher on Friday, tracking a rise in global equities on easing U.S. yields and cooling crude prices, ahead of the Reserve Bank of India’s monetary policy decision, where the bank is expected to stand pat on key rates.

India’s GIFT Nifty was trading up 0.01% at 19,607, as of 7:59 a.m. IST, indicating that the Nifty 50 will open higher from Thursday’s close of 19,545.75.

The RBI’s rate decision will be announced at 10:00 a.m. IST.

A Reuters poll of 71 economists in late September showed that the RBI would keep its key repo rate unchanged at 6.50% on Friday.

“The markets are anticipating a pause, a status quo from the RBI. The commentary regarding recovery in the domestic economy and inflation trajectory will be particularly crucial, given the recent volatility in crude prices,” said Narendra Solanki, head of fundamental research at Anand Rathi Investment Services.

The pause in rate hikes so far this fiscal year, after an increase of 250 basis points in fiscal 2023, has helped the benchmark Nifty 50 jump 12.59% since April and hit all-time highs.

Oil prices extended slide on Thursday on concerns over global demand. Fall in crude prices helps importers like India.

Foreign institutional investors extended their selling streak for the 12th consecutive session on Thursday, offloading shares worth Rs 1,864 crore on a net basis. Domestic institutional investors bought Rs 521 crore. - Reuters

Macro indicators of the Indian economy continue to remain stable with strong GDP growth, robust GST collections, and stable interest rates. However, the industry estimates indicate slightly subdued discretionary consumption, primarily on account of a delayed festive season.

In contrast, Nykaa has witnessed a strong quarter across all verticals.

Consumption in the Beauty and Personal Care (BPC) categories remain healthy. The beauty vertical continues to expand through the ecommerce business, physical store expansion and growth of our owned brands. The growth was supported by the success of our flagship event ‘Hot Pink Sale’ in July. Our BPC business NSV for the quarter is expected to grow around twenty percent on YoY basis. The festive season is a big driver for lifestyle categories and has witnessed a delay this year, moving into October versus commencing in September last year. This shift has a base impact on the Q2 FY24 growth to some extent.

Nykaa Fashion has witnessed strong momentum in Q2 FY24. This stands in contrast to the overall apparel industry which continued to see sluggish demand this quarter, especially in the small towns. However, the industry is expected to see improving trends in the festive season. Within the quarter, Nykaa Fashion has optimized the core category mix along with improvement in order volumes. Fashion NSV for the quarter is expected to grow in early thirties on YoY basis.

For Q2 FY24, at a consolidated level, we expect our NSV to grow in the mid-twenties and revenue to grow in the early twenties on YoY basis, both at levels similar to Q1 FY24. Overall, the H1 FY24 performance sets up Nykaa well for the year with second half historically witnessing superior consumer demand.

Open Offer by Chirag Kanaiyalal Shah (Acquirer 1) and Nirupama Charuhas Khandke (Acquirer 2) to the public shareholders of Evergreen Textiles Limited at Rs. 1.45 a share to acquire up to 12,47,535 shares, representing 25.99 per cent of the Voting Share Capital of the company, opens on Friday, October 6, 2023, and closes on Thursday, October 19, 2023.

The Indian rupee is likely to open slightly higher on Friday, following a further pullback on the dollar index ahead of the U.S. non-farm payrolls report.

Traders are also eyeing the Reserve Bank of India’s monetary policy decision and commentary.

Non-deliverable forwards indicate the rupee will open at around 83.21-83.22 to the U.S. dollar, compared with its previous close of 83.25.

The dollar index dropped below 106.50 on Thursday, slipping further away from year-to-date highs. The pullback was attributed to profit taking before the U.S. September jobs report. - Reuters

Karur Vysya Bank revises Marginal Cost of Funds Based Lending Rates by 0.05 percentage point

Sinclairs Hotels Ltd has announced an Offer for buyback of up to 15,20,000 fully paid up equity shares of face value of Rs 2 each, representing 5.60 per cent of the total Number of equity shares in the paid up equity share capital of the company from the equity shareholders/Beneficial owners of equity shares of the company as on the record date i.e., Friday, September 29, 2023, on a proportionate basis through the tender offer route at a price of Rs. 200 a share payable in cash for an aggregate consideration not exceeding Rs 30.40 crore from Friday, October 6, 2023, To Thursday, October 12, 2023.

Gold paused near a seven-month low on Friday after declining for nine straight sessions, as investors held their breath for U.S. nonfarm payrolls data that could determine whether interest rates will be raised again.

FUNDAMENTALS

* Spot gold was steady at $1,820.35 per ounce by 0103 GMT, while U.S. gold futures rose 0.1% to $1,834.10. Prices have closed lower in all of the previous trading sessions since Sept. 25, extending losses by 1.5% so far this week.

* Benchmark U.S. 10-year bond yields held near 16-year highs and the U.S. dollar remained on track for 12 straight weeks of gains, eroding demand for non-yielding and greenback-priced gold.

* Federal Reserve officials on Thursday indicated little concern that the recent rise in U.S. Treasury yields could imperil a “soft landing” for the economy, and said it could actually help the central bank in its fight against inflation.

* Data on Thursday showed the number of Americans filing new claims for unemployment benefits rose moderately last week, while layoffs declined in September.

* U.S. trade deficit shrank to its smallest in nearly three years in August, with exports of capital goods hitting a record high.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 867.58 metric tons on Thursday, their lowest since August 2019.

* Spot silver gained 0.3% to $20.96, platinum firmed 0.2% to $856.30 and palladium rose 0.6% to $1,148, having hit 5-year lows in the last session. All were on track for weekly losses.

* Prices for platinum-group metals could remain depressed, CEO of the world’s biggest platinum miner by value, Anglo American Platinum, told Reuters.

Constellation Brands Inc. (Pre market) (Sector-FMCG)

Lamb Weston Holdings, Inc. (Pre market) (Sector- FMCG)

ConAgra Brands, Inc. (Pre market) (Sector- FMCG)

Edelweiss Financial Services’ secured redeemable non-convertible debentures of face value of Rs 1,000 each for an amount up to Rs 100 crore (“Base Issue Size”) with a Green Shoe Option of up to Rs 100 crore, cumulatively 20 lakh NCDs for an amount aggregating up to Rs 200 Crore opens today and closes on October 19.

The initial public offering of Plaza Wires saw the highest ever participation by retail investors in the country so far.

While the issue was subscribed to 160.97 times on Thursday overall, 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. In the case of the former, the retail portion was subscribed by over 119 times, and the latter attracted nearly 113 times. Both the companies came out with the IPO in 2021.

We monitor monthly indicators to assess the freight and cargo movement across the road, port and rail networks. For Sep-23, rail cargo volumes and GST e-way bill generation continued tracking their upward trajectories, growing 6.7% and 10% YoY, respectively, while major port volumes were largely flat YoY. Rail container cargo volumes in Sep-23 increased 22% on YoY basis, with Q2 volumes up 15% YoY, suggesting positive volume trends for rail logistics operators, such as Container Corporation of India (Not Rated) and Gateway Distriparks (Not Rated). Additionally, the rail coefficient in EXIM container trade reached 37.9% — the highest since Jun-21, indicating gains from the commissioning of parts of the Western Dedicated Freight Corridor (DFC). Continued growth in GST e-way bill generation bodes well for road logistics service providers such as VRL Logistics (Not Rated), as a shift from the unorganized sector seems imminent, given increasing compliance requirements under the GST regime.

- From a demand standpoint, 2QFY24 was a mixed bag as PV and CV continued to expand YoY but 2W and tractors declined. MHCV appeared to be better placed despite a drop in discounts, driven by healthy demand across most of the underlying industries

- On a YoY basis, wholesale volumes are estimated to grow ~15% for MHCV, ~11% for PV, 20% for 3W and 1% for LCV. However, we estimate 2QFY24 volumes to decline 2% YoY for 2W and 4% YoY for tractors. Domestic 2W volumes are expected to decline 3% YoY, whereas exports are likely to grow 3.5% YoY.

- We estimate the EBITDA margin of our Auto OEM Universe (ex-JLR) to expand for the sixth consecutive quarter on a YoY basis. EBITDA margin is likely to improve 200bp YoY (+50bp QoQ) driven by lower RM costs, favorable FX and operating leverage benefits.

- Bajaj Finance has received board approval to raise up to Rs 10,000 crore through qualified institutional placement (QIP) and convertible warrants.

- The company plans to raise up to Rs 8,800 crore through the QIP issue and Rs 1,200 crore via convertible warrants.

Infosys and Economist Impact, an arm of The Economist Group that works with organisations globally to further their missions, have announced the launch of the Value Chain Navigator (VCN) to help businesses understand and address their scope 3 emissions.

DELTACORP

IBULHSGFIN

MANAPPURAM

PNB

Shares of Valiant Laboratories Limited will be listed in the bourses today. The issue Price is Rs 140. a share.

The company had raised Rs 152 crore through the IPO.

Valiant Laboratories IPO was subscribed 29.76 times, thanks mainly to High networth individuals (HNIs) who subscribed 73.64 times against their quota and retail investors 16.06 times

The company, which specialises in manufacturing Paracetamol as an Active Pharmaceutical Ingredient (API) or Bulk Drug, plans to utilise the funds for investment in Valiant Advanced Sciences Pvt Ltd (VASPL), a wholly-owned subsidiary, to partially fund its capital expenditure needs in connection with the establishment of a manufacturing facility for specialty chemicals at Saykha Industrial Area, Bharuch, Gujarat.

As part of the IPO, Valiant Laboratories on Tuesday raised ₹45.74 crore from anchor investors. Leading Light Fund VCC - The Triumph Fund - bought shares worth ₹20 crore. Saint Capital Fund, Astorne Capital VCC - Arven, and Negen Undiscovered Value Fund - also participated in the anchor book.

As part of the IPO, Valiant Laboratories on Tuesday raised ₹45.74 crore from anchor investors. Leading Light Fund VCC - The Triumph Fund - bought shares worth ₹20 crore. Saint Capital Fund, Astorne Capital VCC - Arven, and Negen Undiscovered Value Fund - also participated in the anchor book.

JUPITER LIFE

Zaggle Prepaid Ocean Services Limited has entered into a contract with BOB Financial Solutions Limited for Implementing Commercial card Onboarding & value-added services platform.

Panacea Biotech has received a notification from the International Court of Arbitration, Paris intimating that an Arbitration proceeding has commenced with respect to the Request for Arbitration filed by Apotex Inc., an entity based out in Canada. Apotex had alleged that Panacea has breached obligations under the Collaboration Agreement for Research, Development, License, Supply and Sale of Products dated. Subject to outcome of the above litigation, the contingent liability for the matter stands at $118.14 million, the company said.

KPI Green has received new orders aggregating to 12.10 MW for executing solar power projects, out of which 3.10 MW capacity undertaken by KPI Green Energy Limited and 9 MW capacity by Sun Drops Energia Private Limited, a wholly owned subsidiary of the company under ‘Captive Power Producer (CPP)’ segment of the company.

IndiGo (InterGlobe Aviation) has re-commenced direct flights between Delhi and Hong Kong, effective October 5. This reinstatement aims to strengthen strategic ties, capitalising on the rich socio-cultural diversity between one of South Asia’s largest economies and a vital business and travel hub in the Asia-Pacific region. These flights will serve both business and leisure travelers during the upcoming winter schedule, providing enhanced flight options and a seamless travel experience.

Shares of PB Infotech will remain in focus on reports that SoftBank Group plans to sell a 2.54 per cent stake in the company through block deals on Friday. The Japanese conglomerate is likely to sell the stake at a price range of Rs 752-767 a share in Policy Bazaar owner, the report added

ADANI WILMAR: CO SAYS PROFITABILITY FOR QUARTER REMAINED UNDER STRESS DUE TO DIVERGENT TRENDS || IN QTR, FOOD & FMCG BUSINESS CONTINUED TO GROW RAPIDLY, WITH SEGMENT REVENUE GROWTH OF AROUND 25% (YOY) CO SAYS INDUSTRY ESSENTIALS VOLUME GREW BY ALMOST 25% (YOY) || COMPANY DELIVERED STRONG VOLUME GROWTH IN DOUBLE-DIGITS IN Q2 CO SAYS Q2 SALES VALUE DECLINE ON A YOY BASIS IS REFLECTIVE OF THE SHARP FALL IN GLOBAL EDIBLE OIL PRICES || Q2 TOTAL SALES VOLUME UP 11% || Q2 TOTAL SALES VALUE DOWN 13%

China Market Holiday

10:00 INDIA RBI Interest Rate Decision (Expected: 6.5% versus Previous: 6.5%)

10:00 INDIA RBI Press Conference

“We expect the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) to keep the REPO rate unchanged to remain supportive of growth. However, the central bank will likely maintain a precautionary stance because of the inflationary pressure arising from external factors such as rising crude prices and Indian currency, which is at an all-time low. A pause will be supportive of the real estate sector in maintaining its current momentum. With the last few revisions, the REPO rate has gone up by 250 BPS, resulting in 160bps hike in the base lending rate, with the last three revisions being completely passed on to the home buyers. This has started to impact housing demand, especially in the affordable segment. The mid segment too has seen growth moderating in the last few quarters. A further increase in the REPO rate could potentially dampen buyers’ sentiment and impact housing affordability.”

We attended the call held by Navin Fluorine International (NFIL) to update on the resignation of the CEO, Radhesh Welling.

Vishad Mafatlal, the Chairman handled most of the queries. The search for a senior professional as a successor is underway and will be updated in due course. The management mentioned that all the top clients have been informed about this transition and all of the major capex is on track although there could be slight delays of a quarter or so.

Marico’s commentary on the Q2 topline sounded weaker than our expectations, while that on profitability was in line.

We now build in about 1 per cent consol. revenue decline vs earlier expectation of about 2 per cent growth (incl. 1 per cent contribution from Plix). Lower growth in Q2 is largely owing to the weak show in domestic edible oil, wherein Marico saw a low single-digit volume growth vs our estimate of a high single-digit growth.

Credit growth for banks continued to be healthy in the second quarter of the current financial year at 10-24 per cent but moderated slightly from 14-30 per cent in the previous quarter, as per provisional numbers declared by some lenders so far.

Credit growth for banks continued to be healthy in the second quarter of the current financial year at 10-24 per cent but moderated slightly from 14-30 per cent in the previous quarter, as per provisional numbers declared by some lenders so far.

The country’s coffee exports fell marginally in volume during the first half of the current financial year on reduced off-take of green beans.

But shipments value increased. Exporters said the outlook for the remaining year would depend on the crop size, which is seen influenced by erratic weather pattern.

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

The short-term outlook is bullish for Prestige Estates Projects. The stock surged over 7 per cent on Thursday, indicating that the upmove has gained momentum. This rise has happened after a short consolidation between ₹590 and ₹620 for about two weeks

Asian markets remained relatively stable as investors awaited the monthly US payrolls report, a key factor influencing future Federal Reserve interest rate decisions.

In early trade, Japan’s Nikkei 225 index held steady with a minimal increase of 0.011 percent or 10.07 points at 31,845.35, while the broader Topix index declined by 0.32 percent or 7.25 points to 2,270.27. South Korea’s Kospi exhibited a modest 0.49 percent gain, trading at 2,416.12, and the Hang Seng Index in Hong Kong rose by 0.91 percent, reaching 17,370.03.

Despite the Federal Reserve’s efforts to combat inflation through interest rate hikes, the robust labor market has kept unemployment levels low. This may necessitate the continuation of higher interest rates for an extended period, potentially impacting stock prices on Wall Street.

On Thursday, U.S. stocks experienced a slight dip as traders prepared for crucial employment data that could potentially impact future interest rate trends.

The Dow Jones Industrial Average concluded the day without significant change, settling at 33,119.57, after bouncing back from earlier declines.

Similarly, the comprehensive S&P 500 recorded a marginal decline of 0.1 percent, closing at 4,258.19, mirroring the performance of the technology-focused Nasdaq Composite Index, which also dipped to 13,219.83.