Share Market Highlights 23 October 2023: Sensex falls 826 pts, Nifty below 19,300

The rupee dropped 6 paise to 83.18 (provisional) against the US dollar on Monday due to sharp losses in local stocks and US bond yields surging to 5 per cent.

Easing crude oil prices and a flat greenback in the overseas markets helped cap the rupee’s fall, forex dealers said.

At the interbank foreign exchange market, the local unit opened lower at 83.13 and traded in a tight range of 83.19 and 83.09 against the greenback during the day.

The local unit finally settled at 83.18 (provisional), reflecting losses of 6 paise over the last close. On Friday, the rupee closed flat at 83.12 against the US dollar.

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

Benchmark equity indices Sensex and Nifty plunged more than 1 per cent on Monday, falling for the fourth day running, amid weak trends in global markets in view of heightened tensions in the Middle East.

Crude oil quoting above USD 90 a barrel mark also played spoilsport for the markets.

The 30-share BSE Sensex plunged 825.74 points or 1.26 per cent to settle at 64,571.88. During the day, it plummeted 894.94 points or 1.36 per cent to 64,502.68.

The Nifty fell 260.90 points or 1.34 per cent to 19,281.75.

In the four sessions since Wednesday, Sensex tanked 1,925 points to fall below the 65,000 mark while Nifty plunged by around 530 points.

Among the Sensex firms, JSW Steel, Tata Motors, Tata Steel, Tata Consultancy Services, NTPC, Wipro, HCL Technologies, State Bank of India, Larsen & Toubro, UltraTech Cement, IndusInd Bank, Kotak Mahindra Bank, Power Grid and Reliance Industries Limited were the major laggards.

Mahindra & Mahindra and Bajaj Finance were the gainers.

In Asian markets, Seoul, Tokyo and Shanghai settled lower.

European markets were trading with cuts. The US markets ended in negative territory on Friday.

Global oil benchmark Brent crude climbed 0.04 per cent to USD 92.18 a barrel.

The bears have maintained a strong grip on the index, resulting in significant selling pressure. This pressure led to a breakdown of the key support level at 19500. With the support at 19500 breached, the next significant support level was at 19200. If the index fails to sustain above this level, it may experience further declines toward the 19000-18800 range. The overall sentiment for the index remains bearish. As long as the index stays below the 19600 mark, the view remains bearish, and any upward movements

Dhruv Consultancy Services Limited in association with Kaius Consulting Private Limited has received the Letter of Award for providing Consultancy Services for Independent Engineer Services for 4-Laning of NH-716 from Kadapa to Chinnaorampadu under Bharatmala Pariyojana in the State of Andhra Pradesh.

Lupin Limited (Lupin) has received approval from USFDA’s Abbreviated New Drug Application for Fluconazole Tablets USP, 50 mg, 100 mg, 150 mg, and 200 mg.

The material subsidiary of Krishna Institute of Medical Sciences Limited, KIMS Hospital Enterprises Private Limited, has made a further investment by acquiring an additional equity stake of 12.09% in Kondapur Healthcare Limited.

“Despite the healthy performance of private banks and marginal reductions in oil prices, investor confidence remained pessimistic, and a widespread consolidation persisted in the domestic markets. The global markets echoed the same trend, as the unrest in West Asia has the potential to spiral further. Increased apprehensions surrounding prolonged elevated interest rates fuelled a continued upward movement in the US 10-year yield. Amid worries over moderation in growth on account of elevated interest rates and higher energy prices, heightened risk aversion was witnessed in the Indian mid- & small-cap space, banks, metals, and energy stocks. While a period of consolidation in the short term seems certain, the extent of this phase will be shaped by global factors.”

System liquidity deficit to narrow. Expectedly, the system liquidity tightened towards the end of the week led by GST collections and CRR product buildup even as government spending seemed to have picked up pace. The average overnight money market rates continued to hover around the upper end of the LAF corridor at ~6.75%. Going ahead, we expect system liquidity conditions to improve this week (more impact visible in the beginning of the week) -- although continue to remain in deficit zone -- as the inflows from US$5 bn FX swap maturity and continued government spending should more than offset the spillovers of GST collections and auctions. We expect liquidity to improve comfortably in surplus zone from end-October/early-November as government spending and heavy redemptions should easily offset the heavy festive related currency leakage. This could increase the probability of OMO sales announcement by the end of this month

Government cash balance to remain robust. Government cash balances last week was in line with our expectations at ~Rs3 tn as on October 13, 2023 (from ~Rs2.6 tn a week ago). Based on the movement in the liquidity numbers last week, we expect cash balance to have improved to ~Rs3.6 tn led by GST collections. We expect cash balance to remain broadly unchanged around Rs3.6 tn this week.

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

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

Lloyds Metals And Energy reported its standalone net profit for the quarter ended September 2023 at ₹295.05 crore as against ₹142.71 crore in the same quarter previous year. However, the stock falls by 6.89% on the NSE, trading at ₹517.25.

Shakti Pumps (India) Limited has received a patent for inventing a Stack Assembly for permanent magnet sector. The stock falls by 5.13% on the NSE, trading at ₹1,077.75.

Indian equities continuously remained under selling pressure amid the rising Bond yields and geopolitical concerns. Media, PSU Banks and Metal remained top losers.

Nifty Future: 19290 Down 237 points or -1.21%

Nifty Bank Future: 43192 Down 546 points or -1.25%

Sadhana Nitrochem Ltd. has received approval from the Maharashtra Pollution Control Board (MPCB) for consent to establish the production of Para Aminophenol (pAP). The stock declines by 3.77% on the BSE, trading at ₹78.60.

Mahindra Holidays & Resorts India reported its standalone total income in Q2 FY24 at ₹333 crore, (10% growth y-o-y). The stock tumbles by 8.35% on the NSE, trading at 410.80.

Major gainers: Bajaj Finance (0.80%); M&M (0.56%); Nestle India (0.04%)

Major losers: LTIMindtree (-3.59%); Adani Enterprises (-3.22%); Hindalco (-2.77%); Adani Ports (-2.75%); UPL (-2.42%)

Stocks advanced on BSE at 3 pm on October 23, 2023, were 672 against 3,125 stocks that declined; 160 stocks remain unchanged. Total stocks traded were 3,957. The number of stocks that recorded a 52-week high was 187, and those that hit a 52-week low was 54.

New Delhi Television Ltd reported its standalone net profit for the quarter ended September 2023 at ₹8.08 crore as against ₹8.20 crore in the same quarter previous year. The stock declines by 6.04% on the NSE, trading at ₹196.05.

Transport Corporation of India has executed a definite agreement for building of two Cellular Container Vessels of approx. 7300 MT DWT each for a contract price of approx $34 million. The stock rises by 2.51% on the NSE, trading at ₹823.80.

Linc Limited has entered into Joint Venture agreement with Morris Co. Ltd. to carry out manufacture and sale of anti-ink dry marker with automatic air tight sealing mechanism through a joint venture company, Morris Linc Private Limited. The stock trades at ₹820.95 on the BSE, down by 0.79.

Adani Total Gas is trading down by nearly 3 percent at ₹574. The stock hit its 52 week low of ₹571.70 today, and is down 86% from it’s 52 week high of ₹4,000.

Somi Conveyor Beltings (18.40%); Macpower CNC Machines (17.73%); Global Vectra Helicorp (15.79%); Hind Rectifiers (12.08%); Creditacess Grameen (9.88%)

Servotech Power Systems, manufacturer of EV chargers and solar solutions, has announced that it has filed two patents for innovative energy management technologies in order to facilitate grid service optimisation through a battery energy storage system and to effectively channel renewable energy into BESS for maximum value, enabling the transition to sustainable energy.

The stock falls by 4.33% on the NSE, trading at ₹74.

Motisons Jewellers, a Jaipur-based retail Jeweller Company has successfully garnered Rs 33 crore in its pre-IPO funding round.

As per a media advertisement in Business Standard and Nafa Nuksan, on October 21, 2023, the company, in consultation with the lead bankers had undertaken the Pre-IPO Placement of 6 million shares at an issue price of Rs 55 per equity share (including premium of Rs 45 per equity share) for an amount aggregating to Rs 33 crore by way of a private placement, saw participation from individual and institutional investors, including Sunil Kothari & Sons, Manish Parakh, Isha Parakh, Manish Parakh HUF, Rajesh Kumar Kabra, and Jagdamba Coal House, Prabhudas Lilladhar Advisory Services Private Ltd, Readiprint International LLP and Rajan Propcon Private Ltd.

The pre-IPO placement was undertaken after the approval of the Board and Shareholders in their meeting held on September 02, 2023, and September 11, 2023, respectively.

The Company has allotted the Equity Shares in the Pre-IPO Placement under the resolution passed by the Board in its meeting held on October 19, 2023.

Motisons has filed its draft herring prospectus (DRHP) with the market regulator in March this year, to float its IPO. The issue with a face value of Rs 10 per equity is entirely a fresh issue of equity shares up to 33.47 million with no offer-for-sale (OFS) component.

As per the DRHP, the proceeds from the issue will be utilized to the extent of Rs. 58 crore for repayment of existing borrowings availed by the company from scheduled banks, Rs 71 crore for funding the working capital requirement of the Company and general corporate purposes.

Hindustan Foods Limited has executed a Share Purchase Agreement with KNS Shoetech Private Limited to acquire 100% Share Capital of KNS Shoetech Private Limited. The stock declines by 1.61% on the NSE, trading at ₹530.

The board of SBI Cards and Payments Services has approved allotment of 3,104,770 Equity shares of ₹10 each to the eligible employees of the Company pursuant to the exercise of options under the SBI Card -Employee Stock Option Plan 2019 (ESOP Scheme 2019) at the exercise price of ₹152.10 per share. The stock declines by 1.34% on the NSE, trading at ₹775.35.

Tube Investments (-3.07%); Sona BLW (-2.56%); Hero Motocorp (-1.65%); Bajaj Auto (-1.45%); Tata Motors (-1.40%)

The stock trades at ₹114.25 on the NSE, down by 0.87%.

Aurobindo Pharma’s wholly owned subsidiary company, Eugia Pharma Specialities Limited, has received final approval from USFDA to manufacture and market Testosterone Cypionate Injection USP 1,000 mg/10 mL (100 mg/mL) and 2,000 mg/10 mL (200 mg/mL) in Multi-Dose Vial and 200 mg/mL in Single-Dose Vial. The stock inches up by 0.54% on the NSE, trading at ₹870.85.

The stock trades at ₹245.10 on the BSE, down by 0.63%.

Indonesia initiated trading on its palm oil exchange, marking a significant move by the world’s leading oil producer to establish a credible benchmark price. The Indonesia Commodities and Derivatives Exchange saw the first physical crude palm oil (CPO) transactions, with four lots of 25 tonnes each traded at Rp 11,305 ($0.7130) per kg. The exchange, which aims to enhance transparency and organization in trading, introduced spot prices with 18 companies participating on the inaugural day.

Indonesia’s step to create a reliable benchmark price through the palm oil exchange is a strategic move in the global market. The initiation of spot prices is a positive development, promoting transparent and organized trading. While CPO futures contracts are yet to be introduced, the current focus on physical transactions adds a practical dimension to the exchange’s operations. The voluntary nature of trading through the exchange, as opposed to direct transactions, reflects the industry’s adaptability to this new platform.

The palm oil exchange signifies Indonesia’s effort to play a central role in global market dynamics.

The establishment of Indonesia’s palm oil exchange is a crucial step toward achieving a benchmark price that can compete with Kuala Lumpur and Rotterdam. The country aims to finalize this benchmark by the first quarter of the upcoming year. The success of the exchange in providing reliable pricing could significantly impact the palm oil market dynamics.

The stock declines by 1.65% on the BSE, trading at ₹593.

TCPL Packaging Ltd has informed the exchange about Board Meeting to be held on November 8, 2023, to inter-alia consider and approve the Unaudited Financial results for the Half Yearly ended September 2023. The stock declines by 3.87% on the NSE, trading at ₹2,139.20.

Tokyo Plast International has informed the exchange about board meeting to be held on November 7 to inter-alia consider and approve the Unaudited Financial results of the Company for the Half Yearly ended September 2023. The stock declines by 1.89% on the NSEm trading at ₹103.90.

ICICI Bank (0.98%); Bajaj Finance (0.68%); Dr Reddy (0.32%); Britannia (0.28%); Hindustan Unilever (0.19%)

Major losers:

LTIMindtree (-2.55%); Adani Enterprises (-2.43%); Adani Ports (-2.01%); Hindalco (-1.53%); Tata Steel (-1.50%)

Total stocks traded were 3,813. The number of stocks that recorded a 52-week high was 177, and those that hit a 52-week low was 39.

Bandhan Mutual Fund announced the launch of the Bandhan Nifty Alpha 50 Index Fund, an open-ended index scheme tracking Nifty Alpha 50 Index, providing investors with an opportunity to invest in a well-diversified portfolio of stocks that generated high alpha (relatively higher returns than the market) over the last one year. The Nifty Alpha 50 index follows a structured, quantitative-led process of assigning weights to the securities based on alpha values, where the security with the highest alpha in the index is assigned the highest weight. This rule-based approach leaves no room for bias when making investment decisions. The alpha strategy adapts to the changing market conditions, leveraging compelling investment opportunities across segments. The New Fund Offer will open on Wednesday, October 25, 2023, and close on Monday, November 06, 2023. Investment in the Bandhan Nifty Alpha 50 Index Fund can be made through licensed mutual fund distributors and online platforms and directly at its MF platform.

The board of Ashima Ltd has approved the allotment of 500 NCDs of face value of ₹1,00,000 each aggregating to ₹5 crore on Private Placement basis (NCDs) – Tranche-II. The stock declines by 5.50% on the NSE, trading at ₹14.60.

Lodha (-3.95%); Swan Energy (-2.66%); Sobha (-2.46%); Mahindra Lifespace Developers (-2.20%); Brigade (-2.18%)

Like the underlying Bank Nifty, the October futures of the index opened today’s session higher at 43,790 versus last week’s close of 43,738.75. But the contract started falling soon after the open and is now hovering around 43,660.

The price action indicates good downward pressure and so, we expect further decline in Bank Nifty futures. From the current level, it is likely to drop to 43,200, a support. Subsequent support is at 43,000.

Bank Nifty futures should surpass 44,000 in order to turn the intraday trend bullish. In such a case, it can rally to 44,250 and then possibly to 44,750. Read more.

The promoter group of IFL Enterprises Ltd is to acquire an additional stake in the company through open market transactions. The promoter/ promoter group intends to acquire 2% to 9% of the total equity share of the company in a span of 12 to 18 months. The stock tumbled by 8.31% on the BSE, trading at ₹8.28.

The Nifty 50 October Futures (19,450) is down 0.4 per cent. The outlook is bearish to see a fall to 19,400-19,350. The contract has to rise past 19,500 to negate the above-mentioned fall and rise towards 19,600 and higher. Read more.

Promoter group of IFL Enterprises Limited has announced their intention to acquire an additional stake in the company through open market transactions. The promoter/Promoter group intends to acquire a stake ranging from 2% to 9% of the total equity share of the company in a span of 12 to 18 months. The stock tumbles by 8.31% on the BSE, trading at ₹8.28.

The minutes of the October RBI MPC meeting highlighted members’ increased focus on returning inflation to the 4% target. While noting that supply-side shocks remained transient, members highlighted that the recurrence of these shocks increases generalization risks. Some members also stressed on the need to manage liquidity actively. We maintain our view of MPC’s prolonged pause and expect system liquidity to remain tight in the near term.

All members pointed to persistence of inflationary pressures from recurring supply shocks. They noted that though the shocks were transitory, the intensity of the shocks had increased, increasing risks of inflation generalization. Governor Das also highlighted that the recurring nature of these shocks further increases the risks of (1) possible loss of monetary policy credibility and (2) de-anchoring of inflation expectations. Meanwhile, Dr Varma noted that the small shortfall in monsoons was more likely to cause “a few short-lived inflation spikes rather than a sustained rise in inflation”.

On growth, all members expressed comfort noting the resilience exhibited so far, despite uneven growth globally. Governor Das noted that the policy mix pursued during recent years fostered economic stability. Meanwhile, Dr Patra highlighted that price stability had to remain the focus, as it could derail growth prospects by hurting the purchasing power.

Members concerned on inflation generalization; growth concerns remain low

MPC flags inflationary risks; liquidity key going forward

The minutes of the October RBI MPC meeting highlighted members’ increased focus on returning inflation to the 4% target. While noting that supply-side shocks remained transient, members highlighted that the recurrence of these shocks increases generalization risks. Some members also stressed on the need to manage liquidity actively. We maintain our view of MPC’s prolonged pause and expect system liquidity to remain tight in the near term.

Members concerned on inflation generalization; growth concerns remain low

All members pointed to persistence of inflationary pressures from recurring supply shocks. They noted that though the shocks were transitory, the intensity of the shocks had increased, increasing risks of inflation generalization. Governor Das also highlighted that the recurring nature of these shocks further increases the risks of (1) possible loss of monetary policy credibility and (2) de-anchoring of inflation expectations. Meanwhile, Dr Varma noted that the small shortfall in monsoons was more likely to cause “a few short-lived inflation spikes rather than a sustained rise in inflation”.

On growth, all members expressed comfort noting the resilience exhibited so far, despite uneven growth globally. Governor Das noted that the policy mix pursued during recent years fostered economic stability. Meanwhile, Dr Patra highlighted that price stability had to remain the focus, as it could derail growth prospects by hurting the purchasing power.

The Board of Directors of Cupid Ltd, one of India’s leading manufacturers of quality male and female condoms has appointed TV Rao, Rajni Mishra, and RS Loona as Independent Directors of the Company after taking over from outgoing promoters, Mr. Omprakash Garg and Mrs. Veena Garg.

Last Month, Columbia Petro Chem Private Limited and Mr. Aditya Kumar Halwasiya of the Universal-Halwasiya Group and Family, made a Rs 113-crore open offer to acquire up to 3.47 million equity shares or 26 per cent stake of Cupid Limited after the Universal-Halwasiya Group and Family through Columbia Petro Chem Private Limited and Mr. Aditya Halwasiya, entered into a definitive agreement to acquire 5.58 million shares or 41.84 per cent of Cupid Limited at Rs 285 per equity share aggregating to Rs 159.06 crore.

Considering the completion of the transaction, Mr. Aditya Halwasiya will be reclassified as a promoter and the board rejig comprises of Kuldeep Halwasiya as Chairman; Aditya Kumar Halwasiya as Managing Director and T V Rao, Rajni Mishra and R.S. Loona as Independent Directors.

Welcoming TV Rao, Rajni Mishra, RS Loona to the Board of Cupid, Mr. Aditya Halwasiya said “We are delighted to welcome our three distinguished independent directors to the Cupid Ltd family. Their wealth of expertise and diverse perspectives will undoubtedly enrich our board and help us navigate the dynamic business landscape with even greater insight and innovation. We look forward to working closely with them and are confident that their contributions will play a pivotal role in shaping the future success of our company. Together, we will continue to drive Cupid Ltd to new heights of excellence and growth.”

The October MPC meeting minutes show the RBI’s concerns about inflation generalization due to supply shocks, while worry about growth was minimal. Progress on FC the ongoing disinflation process will remain key to rate action going ahead. All MPC members emphasized the persistence of inflationary pressures resulting from repeated supply shocks. Liquidity management also found importance in the minutes, with several members voicing the need for active management. OMO sales were cited as an option, while the Governor maintained that operations would stay nimble and two-sided. The RBI is likely to remain on hold for the rest of FY24, as inflation moderates.

Progress on disinflation to guide rate action

The October MPC meeting minutes show the RBI’s concerns on inflation generalization due to supply shocks, while pain around growth was minimal. Progress of the ongoing disinflation process will remain key to rate action going ahead, with Dr Patra stating that within the MPC’s dual mandate, price stability has primacy and only when it is secured on an enduring basis can attention turn to growth.

Concern rises on inflation generalization due to supply shocks

All MPPC members emphasized the persistence of inflationary pressures resulting from repeated supply shocks. They observed that while such shocks are temporary, their intensity has risen, thus heightening the potential for widespread inflation. Governor Das specifically pointed out that the recurrent occurrence of these shocks intensified the risks of: 1) potential loss of credibility in the monetary policy; and 2) the disconnection of inflation expectations. Meanwhile, Dr Varma remarked that a slight monsoon deficit was likely to cause brief inflation spikes rather than a prolonged increase in inflation.

Liquidity management to stay active

Some MPC members underscored the importance of actively managing liquidity. Governor Das acknowledged the expectation of sufficient liquidity in upcoming months, especially with an anticipated increase in government spending. However, he noted the potential offset due to CIC leakage. Dr. Goyal stressed on the need for precise liquidity adjustments for maintaining the WACR within the LAF corridor band. She noted that the current fine-tuning of liquidity was insufficient for aligning the WACR with the MPC-mandated repo rate, especially given the varied short-term liquidity shocks. To counter such impacts, adjustments in durable liquidity, facilitated through tools such as OMOs, were deemed necessary. Governor Das underscored the RBI’s flexible and adaptive approach to liquidity management. He gave assurance that the RBI would maintain its agility, actively managing liquidity by conducting necessary operations, including OMO sales, as required from time to time.

RBI to stay on hold in FY24

On net, the minutes reflect the MPC’s renewed focus on returning inflation to the 4% target amid recurring shocks. We currently see FY24E inflation at ~5.2% (RBI: 5.4%). With core inflation easing in September, it is likely to undershoot headline by ~60-65bps in FY24E. Liquidity conditions have eased somewhat, with the release of I-CRR funds and higher government spending, which will be offset by a pick-up in festive spending. Easing core inflation and relatively-elevated food inflation in H2FY24 will keep the RBI on hold, with a focus on the durable elements of inflation.

Bharti Airtel has over 1.7 million unique 5G customers in Kerala. Airtel 5G Plus service is available across all the districts in the state within just 12 months of the launch. The stock trades at ₹942.90 on the NSE, down by 0.24%.

Bharti Airtel announced that it has over 1.7 million unique 5G customers in Kerala. Airtel 5G Plus service is available across all the districts in the state within just 12 months of the launch. The stock trades at ₹942.90 on the NSE, down by 0.24%.

We expect the NIM of most NBFCs to bottom out over the next 1-2 quarters. However, we find the low-margin phase to continue, posing some risk of downgrades. Larger/higher-rated NBFCs are worse off than smaller/lower-rated ones. High-rated players benefited from lower-rate borrowings in the past 2-3 years—these borrowings may be due for refinancing. Shriram (BUY), Mahindra Finance (upgrade to ADD) and LICHF (BUY), along with Aavas (BUY) and Home First (BUY) in the affordable segment, are our picks.

We expect some NIM downgrades for NBFCs under coverage; we will incorporate the same along with the 2QFY24 results. Currently, we have not built in a significant reduction in funding costs, but did not factor in the higher refinancing cost of maturing bonds either. We do not expect the asset-side rates to rise in the light of NBFCs’ focus on growth and intense competition. Beyond margins, we do not find a risk to growth or asset quality performance. FY2023 was probably the best year in recent times (accelerating growth, qoq reduction in gross stage-2 and gross stage-3 loans); FY2024E may not be weak either.

We continue to like Shriram Finance (BUY, Rs2,300) among vehicle finance NBFCs. After the correction, we are upgrading Mahindra Finance to ADD from REDUCE, with an unchanged FV of Rs330; we will revisit estimates after the results. LICHF (BUY, FV of Rs580) remains a good bet at the current price in light of strong NIMs. Among the affordable housing names, we continue to like Aavas (BUY, FV of Rs2,025) and Home First (BUY, FV of Rs1,100).

Shares of BSE jumped over 13 per cent in early deal to hit an all-time high of Rs 1,798 on the NSE on Monday after the bourse said it would increase transaction charges on the equity derivatives segment with effect from November 1. Shares are currently hovering around Rs 1,705

Genus Power Infrastructures Ltd’s wholly-owned subsidiary has received a Letter of Award (LOA) worth ₹3,121.42 crore (net of taxes) for appointment of Advanced Metering Infrastructure Service Providers (AMISPs), including design of Advance Metering Infrastructure (AMI) system with supply, installation and commissioning with FMS of 36.27 lakh Smart Prepaid Meters, system meters, including DT Meters, with corresponding energy accounting on DBFOOT basis. The stock has risens by 4.04% on the NSE, trading at ₹265.20.

Gainers: Creditaccess Grameen (9.24%); IPCA Lab (7.56%); Medplus (2.42%); LIC MF Exchange (2.07%); KSCL (2.03%)

Losers: ION Exchange (-8.29%); Usha Mart (-8%); Jai Corp (-7.48%); Laurus Labs (-7.34%); Rajglowir (-7.27%)

The price of gold has remained higher over the past week as the Israel-Palestine conflict continues to signal geo-economic instability. The potential spillover effect of the conflict in the Middle Eastern region has kept market participants on edge.

In the US, statements from Federal Reserve Chairman J. Powell and other members have indicated their intention to keep interest rates unchanged in the November meeting. The Fed has highlighted the near-term economic outlook as stable but with slightly weaker growth while raising concerns about persistent and high inflation.

Today, the market will be focused on the evolving situation in the Israel-Palestine conflict. It will also remain attentive to the anticipation of forthcoming PMI data scheduled for tomorrow and the reports on Q3 GDP and Core Personal Consumption Expenditures (PCE) set for later this week.

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.

ICRA Analytics Ltd., a wholly owned subsidiary of ICRA, has entered into a definitive agreement to acquire a majority stake in D2K Technologies India Pvt. Ltd. This acquisition will enhance ICRA’s ability to offer tech-backed solutions in risk assessment and analytics, which will play a significant role in shaping the progress of Indian lending and financial services markets. ICRA Ltd. disclosed this on the day of its Q2 FY24 results last Friday.

Torrent Pharma is expected to post more than 14% annual revenue growth in Q2FY24. Key markets like India, Brazil and Germany will likely drive the numbers. The Indian formulation business is expected to grow in mid-teens, led by healthy growth in the chronic therapies, while Brazil is expected to clock 20% YoY growth driven by shipment spillover from Q1 as well as new launches and market share ramp-up. The EBITDA margin is likely to remain higher due to better product mix. Going ahead, a strong presence in highly profitable branded business in domestic, Brazil and ROW markets and its completion of the Curatio acquisition gives us strong growth visibility.

Adani Green (-2.49%); Adani Energy Solutions (-2.17%); Tata Power (-1.39%); IOC (-1.39%); Coal India (-1.33%)

The rupee declined 3 paise to 83.15 against the US dollar in a restricted trade on Monday due to a stronger greenback in overseas markets and foreign fund outflows.

A correction in crude oil prices and firm domestic stock markets in opening trade capped the losses of the rupee, according to forex dealers.

The local unit opened lower by 3 paise at 83.15 against the greenback at the interbank foreign exchange market.

The rupee moved in a tight range of 83.15 to 83.09 against the dollar in morning deals before trading at 83.15. It had closed almost flat at 83.12 on Friday. (PTI)

Yatharth Hospital & Trauma Care Services informed the exchange that Search Operation was carried out by Income Tax Department at various locations of the Company from 19th October, 2023 to 22nd October, 2023. “We hereby inform that all stock of inventory, cash and other assets were found to be duly recorded and no unaccounted cash or transactions have been found by the authorities. The search team has not seized anything incriminating,” the company said in its regulatory filing. The stock is up by 2.90% on the NSE, trading at ₹372.50.

Bajaj Finance (1.34%); Divi’s Lab(1.19%); ICICI Bank (0.88%); M&M (0.86%); Bajaj Finserv (0.65%)

Major losers:

Kotak Bank (-2.09%); Grasim (-1.29%); TCS (-0.98%); LTIMindtree (-0.77%); LT (-0.76%)

Jefferies on ICICI Bank: Maintain Buy on Bank, raise target price at Rs 1250/sh vs Rs 1240/Sh. (Positive)

MS on ICICI Bank: Maintain Overweight on Bank, target price at Rs 1350/Sh (Positive)

Macquarie on Bajaj Finance: Upgrade to Buy on Company, raise target price at Rs 9190/sh. (Positive)

CLSA on Credit Access: Maintain Buy on Company, raise target price at Rs 1800/sh. (Positive)

CLSA on PayTM: Maintain Buy on Company, raise target price at Rs 1200/sh. (Positive)

Bernstein on PayTM: Maintain Outperform on Company, target price at Rs 1100/sh. (Positive)

Jefferies on Kajaria Ceramics: Maintain Buy on Company, target price at Rs 1565/sh. (Positive)

HSBC on Kajaria Ceramics: Maintain Buy on Company, target price at Rs 1500/sh. (Positive)

GS on Kajaria Ceramics: Maintain Buy on Company, target price at Rs 1450/sh. (Positive)

Nomura on IPCA Labs: Maintain Buy on Company, target price at Rs 1133/sh. (Positive)

GS on L&T FH: Maintain Buy on Company, target price at Rs 155/sh (Positive)

MS on L&T FH: Maintain Underweight on Company, target price at Rs 110/sh (Neutral)

CLSA on ICICI Bank: Maintain Buy on Bank, target price at Rs 1225/Sh. (Neutral)

Kotak on ICICI Bank: Maintain Buy on Bank, target price at Rs 1150/Sh. (Neutral)

Bernstein on ICICI Bank: Maintain Market perform on Bank, target price at Rs 1050/Sh. (Neutral)

Jefferies on JSW Steel: Maintain Underperform on Company, raise target price at Rs 630/sh vs Rs 580/Sh. (Neutral)

MS on JSW Steel: Maintain Underweight on Company, target price at Rs 585/Sh. (Neutral)

GS on Voltas: Maintain Sell on Company, target price at Rs 800/Sh. (Neutral)

Jefferies on Voltas: Maintain Buy on Company, target price at Rs 950/Sh. (Neutral)

CLSA on JSW Energy: Maintain Sell on Company, raise target price at Rs 250/sh vs Rs 234/Sh. (Neutral)

Nomura on Balkrishna: Maintain Reduce on Company, target price at Rs 2152/sh (Neutral)

Bernstein on Kotak Bank: Maintain Market Perform on Bank, target price at Rs 2100/Sh. (Neutral)

MS on Kotak Bank: Maintain Equal weight on Bank, target price at Rs 2250/Sh. (Neutral)

CLSA on Kotak Bank: Maintain Outperform on Bank, cut target price at Rs 2050/sh versus Rs 2200/Sh. (Neutral)

Jefferies on Kotak Bank: Downgrade to Hold on Bank, cut target price at Rs 1940/sh versus Rs 2400/Sh (Negative)

Jefferies on Laurus Lab: Maintain Underperform on Company, target price at Rs 260/sh (Negative)

Kotak on Laurus Lab: Maintain Sell on Company, target price at Rs 270/sh (Negative)

Incred on Laurus Lab: Maintain Sell on Company, target price at Rs 307/sh (Negative)

MS on Balkrishna: Maintain Underweight on Company, target price at Rs 1928/sh (Negative)

AURIONPRO, AXISBANK, BHARATWIRE, CHALET, CHENNPETRO, CMSINFO, DREAMFOLKS, INDUSTOWER, JUBLFOOD, LAXMIMACH, NETWORK18, RALLIS, SHANTIGEAR, SONACOMS, SONATSOFTW, SWARAJENG, TECHM, TV18BRDCST, WELSPUNIND

Revenue expected at Rs 2634 crore versus Rs 2291 crore

EBITDA expected to be seen at Rs 805 crore versus Rs 679 crore

EBITDA margin expected to be seen at 30.56% versus 29.64%

Net profit expected to be seen at Rs 381 crore versus Rs 312 crore

Koninklijke Philips N.V. (Pre market) (Sector-Healthcare)

Cadence Design Systems, Inc. (Post market) (Sector-Technology) (EPS Est: 1.2 vs 1.22)

Brown & Brown, Inc. (Post market) (Sector-Finance)

Alexandria Real Estate Equities, Inc. (Post market) (Sector-Realty)

W.R. Berkley Corporation (Post market) (Sector-Finance)

Packaging Corporation of America (Post market) (Sector-Basic Packaging)

Logitech International S.A. (Post market) (Sector-Technology)

TFI International Inc. (Post market) (Sector-Industrials)

POSCO Holdings Inc. (Tent) (Sector-Metals)

India’s equity benchmarks BSE Sensex and NSE Nifty opened the session on a flat note on Monday. While Nestle India, HDFC Bank and JSW Steel gained in early trade, Apollo Hospitals, Tech Mahindra and BPCL were the top losers among the Nifty50 stocks. Asian markets are down 0.5%, as the conflict between Israel and Hamas intensified and hurt sentiment. The US has warned of a significant risk to its interests in the West Asia.

- Net profit of Rs 10,261 cr vs poll of Rs 9,591 cr

- NII of Rs 18,308 cr vs poll of Rs 18,475 cr

- Gross NPA at 2.48% versus 2.76% QoQ

- Net NPA at 0.43% versus 0.48% QoQ

- Net Interest Margin at 4.53% versus 4.78% QoQ

- Gross NPA additions Rs 4,687 crore versus Rs 5,318 crore

(Numbers seen inline with market estimates as profit beats but NIM fell as per Banking sector trend of this quarter)

Net profit of Rs 3,191 cr vs poll of Rs 3,124 cr

NII of Rs 6,297 cr vs poll of Rs 6,282 cr

Gross NPA at 1.69% versus 1.75% QoQ

Net NPA at 0.39% versus 0.43% QoQ

Net Interest Margin at 5.22% versus 5.57% QoQ

(Numbers seen inline with market estimates)

Infosys: Promoter Group Shreyas Shibulal and Bhairavi Madhusudhan Shibulal sold 23.70 lakh shares and 6.68 lakh shares respectively on Oct 19.

Torrent Pharmaceuticals, Lloyds Metals and Energy, PNB Housing Finance, Alok Industries, Mahindra Holidays & Resorts India, Kewal Kiran Clothing, Mahindra Logistics, NDTV, and Ganesha Ecoverse.

J&K Bank Q2 FY24 (Standalone, YoY)

Net profit at Rs 381.07 crore vs Rs 243.49 crore, up 57% YoY.

NII at Rs 1,333.83 crore vs Rs 1,195.12 crore, up 12% YoY.

Gross NPA at 5.26% vs 5.77% QoQ.

Net NPA at 1.04% vs 1.39% QoQ.

CreditAccess Grameen Q2 FY24 (Standalone, YoY)

Total income up 53.2% at Rs 1,247.59 crore vs Rs 814.31 crore.

Net profit up 99.35% at Rs 349.21 crore vs Rs 175.17 crore.

Poonawalla Fincorp Q2 FY24 (Standalone, YoY)

Total income up 54.98% at Rs 744.73 crore vs Rs 480.53 crore.

Net profit up 867.11% at Rs 1,258.89 crore vs Rs 130.17 crore.

NIM up 2 bps at 11.42% vs 10.36%.

Note: Numbers not comparable due to sale of Poonawala Housing Finance this quarter.

Tanfac Industries Q2FY24 (YoY)

Revenue up 9.36% at Rs 81.37 crore vs Rs 74.4 crore.

Ebitda up 59.55% at Rs 15.62 crore vs Rs 9.79 crore.

Margin at 19.19% vs 13.15%.

Net profit up 33.6% at Rs 11.37 crore vs Rs 8.51 crore.

KFin Technologies Q2 FY24 (Consolidated, QoQ)

Revenue up 15.13% at Rs 208.97 crore vs Rs 181.5 crore.

EBIT up 39.93% at Rs 81.09 crore vs Rs 57.95 crore.

Margin at 38.8% vs 31.92%.

Net profit up 41.34% at Rs 61.3 crore vs Rs 43.37 crore.

PNB Gilts Q2FY24 (YoY)

Total income up 2.17% at Rs 346.89 crore vs Rs 339.52 crore.

Net loss at Rs 48.71 crore vs profit of Rs 0.68 crore.

Paytm Q2 FY24 (Consolidated, QoQ)

Revenue up 7.55% at Rs 2,518.6 crore vs Rs 2,341.6 crore.

Ebitda loss of Rs 231 crore vs Ebitda loss of Rs 292.1 crore.

Net loss at Rs 291.7 crore vs loss of Rs 358.4 crore.

Central Bank of India Q2 FY24 (Standalone, YoY)

Net profit at Rs 605.43 crore vs Rs 318.17 crore, up 90% YoY.

NII at Rs 3,027.69 crore vs Rs 2,747.49 crore, up 10% YoY.

Gross NPA at 4.62% vs 4.95% QoQ.

Net NPA at 1.64% vs 1.75% QoQ.

Sasken Technologies Q2 FY24 (Consolidated, QoQ)

Revenue up 4.08% at Rs 102.51 crore vs Rs 98.49 crore.

EBIT up 70.83% at Rs 12.71 crore vs Rs 7.44 crore. Margin at 12.39% vs 7.55%.

Net profit down 29.66% at Rs 18.07 crore vs Rs 25.69 crore.

Tejas Networks Q2 FY24 (Consolidated, YoY)

Revenue up 80.02% at Rs 395.95 crore vs Rs 219.94 crore.

Ebitda down 39.79% at Rs 12.97 crore vs Rs 21.54 crore.

Margin at 3.27% vs 9.79%.

Net loss at Rs 12.64 crore vs loss of Rs 3.16 crore.

JSW Energy Q2 FY24 (Consolidated, YoY)

Revenue up 36.52% at Rs 3,259.42 crore vs Rs 2,387.48 crore.

Ebitda up 111.37% at Rs 1,880.38 crore vs Rs 889.58 crore.

Margin at 57.69% vs 37.26%.

Net profit up 87.65% at Rs 856.79 crore vs Rs 456.57 crore.

Sunteck Realty Q2 FY24 (Consolidated, YoY)

Revenue down 69.13% at Rs 24.93 crore vs Rs 80.74 crore.

Ebitda loss at Rs 14.14 crore vs profit of Rs 10.02 crore.

Net loss at Rs 13.94 crore vs profit of Rs 2.33 crore.

ICRA Q2 FY24 (Consolidated, YoY)

Revenue up 6.34% at Rs 104.85 crore vs Rs 98.59 crore.

Net profit down 13.61% at Rs 32.145 crore vs Rs 37.21 crore.

L&T Finance Holdings Q2 FY24 (Consolidated, YoY)

Total income up 6.89% at Rs 3,482.07 crore vs Rs 3,257.36 crore.

Net profit up 46.42% at Rs 595.11 crore vs Rs 406.43 crore.

Net interest margin up 10.84% vs 8.43% YoY.

Just Dial Q2 FY24 (Consolidated, QoQ)

Revenue up 5.51% at Rs 260.61 crore vs Rs 246.98 crore.

Ebitda up 32.92% at Rs 48.77 crore vs Rs 36.69 crore.

Margin at 18.71% vs 14.85%.

Net profit down 13.93% at Rs 71.78 crore vs Rs 83.4 crore.

NCLT has approved the resolution plan for acquisition of BTL under the corporate insolvency process.

Paras Defence’s board of directors approved the incorporation of a wholly owned subsidiary named Quantico Technologies which will develop end-to-end solutions for Quantum Technologies.

Astral completed the acquisition of 80% shares of Gem Paints (51% against redemption of optionally convertible debentures amounting to Rs 194 crores and 29% towards the second tranche). Balance 20% equity stake will be acquired over a period of 5 years.

The plant is expected to reduce carbon emissions by 20,075 metric tonnes annually.

It added 219 circuit kms to operational network and also sold 2,446 million units, up 9.53% year-on-year. The company announced the resignation of Ahlem Friga-Noy as nominee director w.e.f. Oct. 23

Topco manufactures components for aircraft engines and medical devices. The company is also in a pact to buy 73.05% stake in Irillic Private and will hold 74.19% of the share capital of the target.

Periama Holdings to acquire remaining 10% stake in JSW USA. Stake to be bought from Green Suppliers and Services for a consideration of $1,000. Following the acquisition, Periama will hold 100% stake in JSW USA.

India’s blue-chips are set for a lower open on Monday, in line with Asian peers, as the widening conflict in the West Asia roiled sentiment, while market reaction to the quarterly results of major private lenders is awaited.

India’s GIFT Nifty was up 0.27% at 19,479.50, higher than its previous close, as of 8:11 a.m. IST, but lower than the Nifty 50 close on Friday of 19,524.65.

Asian markets are down 0.5%, as the conflict between Israel and Hamas intensified and hurt sentiment. The US has warned of a significant risk to its interests in the West Asia.

Meanwhile, Brent crude futures eased on Monday to $91.50 per barrel, after hovering above $93 in the previous session. Rising oil prices is a negative for importers of the commodity like India.

Banks will be in focus after major private lenders, including ICICI Bank, posted their September-quarter earnings over the weekend.

ICICI Bank beat its quarterly estimates, posting a nearly 36% jump in net profit, aided by robust lending income and loan growth.

Kotak Mahindra Bank posted a 24% rise in quarterly profit, in-line with estimates. The lender also got the Reserve Bank of India’s nod to appoint veteran banker Ashok Vaswani as managing director and chief executive.

The appointment, subject to shareholders’ approval, is for three years after Vaswani begins his term, which will not be later than January 1, 2024, the bank said in an exchange filing on Saturday. (Reuters)