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Benchmark indices are back in the red after being in the green for a while amid choppy trade. Several companies are expected to announce their September quarter results today. Bank of India, Bharti Airtel Ltd, Bombay Dyeing, Dabur India, Hindustan Petroleum Corp., and Jindal Steel & Power Ltd are among them.
Shriram Transport Finance Company Ltd, Phoenix Mills Limited, Aditya Birla Capital Ltd, and Prestige Estates Projects Ltd have gained between 5 and 10% in trade on Tuesday.
Sun Pharmaceutical Industries Ltd has posted a 12.9% increase in its net profit for the September quarter at ₹2,047 crore against ₹1,813 crore. Its revenue was up 12.5% at ₹9,626 crore versus ₹8,553 crore year-on-year. Sun Pharma's earnings before interest, tax, depreciation, and amortization was up 19.9% at ₹2,630 crore versus ₹2,193 crore and margin was at 27.3% versus 25.6% year-on-year.
Hindustan Petroleum Corp. Ltd (HPCL) has reported 7.2% jump in its net profit at ₹1,923.5 crore for the September quarter versus ₹1,795 crore. Its revenue was up 12.9% at ₹83,063 crore against ₹72,442 crore, quarter-on-quarter (q-o-q). the firm's earnings before interest, tax, depreciation, and amortization was down 5.6% at ₹3,012.2 crore and margin was at 3.6% q-o-q.
Procter & Gamble Hygiene and Health Care Ltd. has announced its financial results for the quarter ended 30 September. Despite a challenging market environment and a higher base period, the company said it delivered sales of ₹1058 crore, up 5% compared with year-ago behind its superiority strategy, robust product portfolio and strong retail execution. Compared with the corresponding quarter two years ago, prior to the pandemic, company sales are up 24%. Profit After Tax (PAT) was ₹218 crore, down 14% compared with year-ago behind commodity cost inflation and lower marketing investments in the corresponding quarter of 2020 due to the pandemic. For the quarter, both Feminine Care and Health Care businesses grew ahead of their categories.
Sensex is in the red after slipping back from green in a day of choppy trade.
Metal and pharma are top drag sectors.
The FOMC Monetary Policy is set to be released on 3rd Nov 11:30 pm where the central bank is widely expected to announce that it will begin to unwind its $120 billion in monthly bond purchases and end the program entirely by the middle of next year. The quantum of monthly bond purchases is expected to be at a rate of $15 billion a month amid a recovery in the U.S. labor market and worries over the inflation outlook.
Fed Chairman Jerome Powell’s comments will be closely watched for any adjustment in his thinking on inflation which shall drive interest rate expectations. Worries over inflation have prompted traders to bring forward their expectations around the timing and pace of the Fed interest rate increases. Apparently, traders are pricing in as many as three interest rate hikes next year, but in the latest Fed forecast, only half of central bank officials agreed there should be even one.
Russia’s oil output increased in October for a second straight month as companies open the taps under the OPEC+ agreement to raise output. The nation produced 45.86 million tones of crude oil and condensate last month, according to data from the Energy Ministry’s CDU-TEK unit. That equals 10.843 million barrels a day, based on a 7.33 barrel-per-ton conversion ratio, and is 1.1% higher than September. Russia has the right to increase its crude-only production by some 100,000 barrels a day each month starting August. That’s a quarter of the total crude supply hikes targeted by the Organization of Petroleum Exporting Countries and its allies. The increases are set to continue until all of the production curbs that were implemented during the depths of the pandemic are rolled back. The alliance will meet Nov. 4 amid mounting pressure from oil consumers to increase output faster to stem price growth.
White Oak Capital group on Monday announced the completion of the acquisition of the mutual fund business of Yes Bank. In September, White Oak Capital group had received approval from the Securities and Exchange Board of India (Sebi) for registration of its subsidiary GPL Finance and Investments Limited as a sponsor of mutual funds and change in control of YES Asset Management (India) and YES Trustee Ltd from YES Bank Ltd to itself.
PLR Systems, a joint venture between Adani Enterprises and Israeli Weapon Industries has received its first order from the Indian defence ministry, according to a report.
Most Asian stocks fell Tuesday as traders digested the latest coronavirus curbs in China and awaited key central bank decisions amid concerns about elevated inflation. The yen strengthened. Shares slid in China, where authorities in Beijing halted classes at 18 schools in one district after a teacher was infected with Covid-19. The investor mood was a little brighter in Hong Kong, aided by a jump in the city’s index of Chinese technology stocks. US and European futures wavered following an overnight record on Wall Street. In Australia, the central bank scrapped its bond-yield target. The nation’s currency dropped after Governor Philip Lowe said it was still “likely to take some time" for inflation to sustainably return to target. Yields on three-year and 10-year debt declined. The U.S. 10-year Treasury yield and the dollar were little changed ahead of the Federal Reserve meeting. The policy review comes amid price pressures stoked by the most-widespread U.S. supply crunch since the oil crisis of 1973. The Fed is expected to announce a tapering of its bond-purchase program. The earnings season has underpinned the equity market, countering worries about inflation and tighter monetary policy. But pandemic-era supply-chain challenges coupled with higher energy costs could become a bigger test if they feed into wider, more enduring price pressures. (bloomberg)
Godrej Properties has reported total income of ₹290 crore compared with ₹238 crore in the year-ago period. EBITDA stood at ₹105 crore compared with ₹77 crore, while net profit was ₹36 crore as compared with ₹7 crore. Earnings per share of the company amounted to ₹1.28 compared with ₹0.28.
State-run power giant NTPC on Tuesday said its 80 MW solar power generation capacity at Jetsar in Rajasthan has stared commercial operations from 22 October. With this, the first part of the 160 MW Jetsar project has been made commercially operational. "Consequent upon successful commissioning and due approvals, first part capacity of 80 MW of 160 MW Jetsar Solar PV Project at Rajasthan, is declared on Commercial Operation from 22 October," the company said in a regulatory filing. With this, the installed as well as commercial capacity of NTPC and NTPC group has become 53572.5 MW and 66997.5 MW respectively, it added. Shares of NTPC Ltd were trading 2.35% higher at ₹137.45 on BSE. (PTI)
Indian delivery and e-commerce logistics company Delhivery has filed draft red herring prospectus for an initial public offering of up to ₹74.6 billion. The IPO comprises a fresh issue of shares worth ₹50 billion, offer for sale for ₹24.6 billion. The company plans to use the IPO proceeds to fund organic and inorganic growth initiatives. Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India and Citigroup are the book running managers of the IPO.
Iron ore futures extended losses below $100 a tonne on shrinking steel output in China and signs economic growth is facing mounting headwinds.
Prices in Singapore slumped for a fifth day as the world’s top steelmaker ramped up efforts to cap annual steel volumes. While China has imposed curbs on production throughout 2021, restrictions are now being rolled out more frequently and limits have been extended into the first quarter in an effort to ensure blue skies for the Winter Olympics.
Daily crude steel output in the final third of October dropped to the lowest since March 2020, according to researcher Mysteel, which cited a survey of 247 blast furnaces and 71 electric-arc furnaces. There were frequent requests from local governments to curb production, while lackluster steel demand and softening prices have dampened mills’ willingness to produce, it said. (Bloomberg)
Benchmark indices have slipped into the red. Sensex has conceded the 60,000 mark, while Nifty has fallen below the 17,900 mark. Several sectoral indices have slipped into the red. Energy and bankex are among the top drags.
Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, sold 547,970 units of two-wheelers in October 2021 against the 806,848 units being sold last year during the same phase. This is a huge 32% decline for the manufacturer. Meanwhile, Hero MotoCorp registered a rise in the export of motorcycles and scooters. The company dispatched 20,191 units last month compared to over 15,711 units being exported last year in October. (Read here)
Maruti Suzuki India Ltd (MSIL) on Tuesday announced the commencement of bookings for its much awaited, all-new Celerio. Shashank Srivastava, senior executive director (marketing & sales), MSIL, said, “Today’s urban, progressive and aspirational customers look for lively, active and vivid products to match their persona. The all-new Celerio with a new petrol engine, vibrant and stylish design, and with host of segment-first features is an all-rounder. We are confident that the all-new Celerio will once again energize the compact segment."
Tata Motors has seen over 1% gain in trading of its stock after the announcement of its results on Monday.
Sensex was at 60,058.22, down 80.24 points, or 0.13% at 10:32 am.
The volatility index is in the positive and has gained over 1%.
Elon Musk, the richest person in the world, threw a challenge at the United Nations. He said that he will sell $6 billion worth of Tesla stock and donate the proceeds to the United Nations’ food agency if it could show how the money would solve world hunger. (Read here)
Gold outlook
· Gold prices rose strongly last month, supported by a retreat in US bond yields and dollar with investors focusing on the Federal Reserve’s response to inflationary pressure and concerns on tepid economic growth
· US GDP increased at a 2.0% annualised rate last quarter, as a resurgence in Covid-19 cases further stretched global supply chains, leading to shortages of goods like automobiles that slammed the brakes on consumer spending
· US Fed officials face a ticking clock in their ability to ignore high inflation and are now navigating between their own senses of patience and risk, and a US economy stymied by tangled supply chains, slow hiring and strong consumer demand
· European Central Bank President Christine Lagarde acknowledged higher inflation but pushed back against market bets that price pressures would trigger an interest rate hike as soon as next year
Crude oil outlook
· Oil prices settled at a multi-year high, as supply has tightened, with the Organization of the Petroleum Exporting Countries maintaining a slow increase in supply rather than intervening to add more barrels to the market, and as US demand has ramped up
· Demand has picked up with the recovery from the Covid-19 pandemic, with a further boost from power generators who have been turning away from expensive gas and coal to fuel oil and diesel. The White House said it will lift Covid-19 travel restrictions for fully vaccinated foreign nationals effective November 8, which should boost jet fuel demand. US crude inventories at the nation's largest storage site hit their lowest level in three years and nationwide fuel stocks fell sharply, a signal of rising demand
The index has opened on a lethargic note but it is a positive sign that it is above 17,900. That is a crucial level to keep in mind. As long as it keeps above this there is always a possibility for a positive momentum to build in and take the Nifty higher. A base has been formed around 17,550-17,600 but if that were to break, we could slide down to 17,200.
The Stock Markets (BSE and NSE) will be closed for two days this week as per the list of stock market holidays 2021 available at the official BSE website — bseindia.com. The stock market will remain closed on November 4 on account of Diwali, on November 5 due to Diwali Balipratipada and on November 19 due to Gurunanak Jayanti. According to the stock market holiday calendar by BSE there will be no action in Equity, Derivative and SLB Segments on these days. However, it can be noted that on November 4, Muhurat Trading will be held. (Read here)
Shares of Tata Motors today surged 5% to ₹505.15 in early trade on BSE despite reporting a higher second quarter loss. Homegrown auto major Tata Motors Ltd (TML) on Monday reported a widening of consolidated net loss to ₹4,441 crore for the second quarter ended 30 September, due to higher expenses and lower sales of its British arm JLR following semiconductor shortage. (Read here)
Gold and silver edged lower today in Indian markets, tracking weak global cues. On MCX, gold futures were down 0.17% to ₹47,822 per 10 gram while silver futures dipped 0.25% to ₹64629 per kg. Jewellers are expecting strong sales during the Dhanteras-Diwali festive period as economy recovers and covid cases decline. Lower gold prices as compared to last year's levels are also expected to support buying. (Read here)
Benchmark indices are in the green at preopen. Sensex was at 61,295.00, up 1,156.54 points, or 1.92% at 9 am. Nifty was at 17,929.65, up 258 points, or 1.46% at pre-opening.
Nifty is expected to open flat around yesterday’s close at 17,930. Nifty has support at 17,600 and 17,450 levels and resistance at 17,950 and 18,050 levels. Traders are suggested to avoid long positions till the time Nifty trades above 18,350.
Markets are likely to be ranged on Tuesday while trends in SGX Nifty suggest a flat opening of Indian benchmark indices. On Monday, the BSE Sensex ended at 60,138.46, up 831.53 points or 1.40% and the Nifty was at17,929.65, up 258 points or 1.46%. (Read here)
Petrol and diesel prices witnessed a hike for the seventh consecutive day across the country on Tuesday. In Delhi, with an increase of ₹0.35 in petrol and diesel prices, their cost rose to ₹110.04 per litre and ₹98.42 per litre respectively today. In the country's financial capital, Mumbai, the petrol and diesel prices increased to ₹115.85 per litre and ₹106.62 per litre respectively. Petrol and diesel have been priced at ₹110.49 and ₹101.56 per litre respectively in West Bengal's Kolkata and ₹106.66 and ₹102.59 per litre respectively in Chennai. Meanwhile, the central government is in talks with several oil-exporting countries on the issue of supply and demand of oils but there is no possibility of immediate relief in prices.
The initial public offering (IPO) of FSN E-Commerce Ventures Ltd, which runs an online marketplace for beauty and wellness products Nykaa, was subscribed 81.78 times on the last day of subscription on Monday, mainly helped by huge interest from institutional investors. (Read here)
Chinese tech stocks rallied by the most in three weeks, tracking its US peers overnight, on expectations that easing US-Sino trade tensions would help the battered sector. Hong Kong’s Hang Seng Tech Index jumped as much as 4%, poised to snap two days of losses. Bilibili Inc. and Hua Hong Semiconductor Ltd. led the gains, each rising at least 8.3%. The broader Hang Seng Index advanced 1.9%. Investors are starting to wade back into the tech sector after a combination of over-heated markets and Beijing’s regulatory crackdown sent the gauge tumbling over 40% from a February high. A report that Treasury Secretary Janet Yellen said the US expected China to meet its commitments under the Phase 1 trade agreement and could look at eventually lower tariffs in a reciprocal way also improved sentiment.
Last week’s corrective move was followed by a decent gap up opening to kick-start the festive week on a cheerful note. In the initial hour, market gave up some gains but fortunately at lower levels, the strong buying emerged across the broader market. In fact as the day progressed, the buying momentum accelerated to reclaim the 17,900 mark. Eventually, Nifty ended the session with nearly one and half a percent gains.
Markets were extremely oversold and after testing the key support of 17600, some respite was on cards. It’s certainly a good start as we have stepped into a Diwali week. Generally market do not correct in this week and looking at today’s strong rebound, market seems to be repeating the history. However we are still not completely out of the woods as we can see multiple hurdles in the vicinity of 100 – 150 from hereon. Technically speaking, Nifty has precisely closed at the ‘200-SMA’ on the hourly chart and not far from here, we can see previous important support zone of 18,000–18,100, which is now likely to act as strong resistance. Hence, unless we do not surpass 18,100 and stays above it, we may see some profit booking to come again. Hence, momentum traders are advised not to get carried away, till the time important levels are not reclaimed. On the flipside, 17,800 followed by 17,700 are to be seen as immediate supports.
Stocks to buy today as recommended by analysts: Hindalco, Tata Power, Birlasoft, SAIL, ITC, and Sun TV (Read here)
Samara Capital-promoted Sapphire Foods India Ltd has fixed the price band for its initial public offering (IPO) between ₹1,120 and ₹1,180 per share. Earlier, the firm said its IPO will open on 9 November and close on 11 November. (Read here)
Stocks ended a wobbly day modestly higher on Wall Street, enough to notch more all-time highs for major indexes. The S&P 500 rose 0.2% and the Dow Jones Industrial Average rose 0.3%. The Nasdaq rose 0.6%. Smaller company stocks far outpaced the broader market. Energy stocks made solid gains as oil prices rose. Bond yields also rose. This week traders will be watching another policy meeting by the Federal Reserve, which is in the process of considering how to wind down its extraordinary support measures for the economy. More companies are reporting quarterly earnings and the government releases its monthly jobs report Friday.
Bitcoin prices today declined as the world's largest cryptocurrency by market capitalization was trading 0.5% lower at $61,443. The digital token is up 110% this year so far after hitting a record high of near $67,000 in October. Other cryptocurrencies' performance were mixed over the last 24 hours. (Read here)
Bandhan Bank, TCS, and Kotak are among stocks to watch. (Read here)
Asian stocks were steady on Tuesday as traders evaluated a record-high close for US equities and awaited key central bank decisions amid concerns about elevated inflation. Hong Kong advanced after an index of Chinese stocks traded in the US jumped the most since early October. Japan fell and China was little changed. US contracts fluctuated after optimism over corporate earnings saw the S&P 500 hit a new peak and the Dow Jones Industrial Average touch 36,000 for the first time. Electric-vehicle giant Tesla Inc. extended a rally. The US 10-year Treasury yield and the dollar nudged higher ahead of the Federal Reserve meeting. The policy review comes amid price pressures stoked by the most-widespread US supply crunch since the oil crisis of 1973. The Fed is expected to announce a tapering of its massive bond-purchase programme. Australia’s central bank meeting Tuesday is being shadowed by speculation that it will scrap a bond-yield target after opting against defending it. The nation’s sovereign bonds slipped. Bank of England policy makers head into their 4 November gathering knowing that a failure to deliver a once-unthinkable interest-rate hike would raise questions over their credibility with markets. The earnings season has underpinned the equity market, countering worries about inflation and the prospect of tighter monetary policy. But pandemic-era supply-chain challenges coupled with higher energy costs could become a bigger test if they feed into wider, more enduring price pressures.
Stocks
S&P 500 futures were little changed as of 10:28 a.m. in Tokyo. The S&P 500 rose 0.2%
Nasdaq 100 futures slipped 0.1%. The Nasdaq 100 rose 0.4%
Topix index fell 0.5%
Australia’s S&P/ASX 200 Index lost 0.6%
Kospi index rose 1.5%
Hang Seng Index rose 1.8%
Shanghai Composite Index was little changed
Currencies
The Japanese yen was at 114.07 per dollar
The offshore yuan was at 6.3933 per dollar
The Bloomberg Dollar Spot Index rose less than 0.1%
The euro traded at $1.1597
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