Indian markets were up 1% on Monday. Sensex hit a record high of 61,938, while Nifty touched all-time high of 18,543 points so far today. Asian markets struggled Monday as inflation concerns returned to the fore, with China’s economic growth sinking. The world’s second-largest economy grew by 4.9% over a year ago.
Infy, ICICI Bank, RIL power gains on Sensex
Sensex at day’s high
Embassy Office Parks REIT raises ₹4600 crore
Blackstone-backed Embassy Office Parks REIT, India’s first real estate investment trust, has raised ₹4600 crore to refinance ₹4530 crore of existing debt.
The debt has been raised through allotment of debentures ( ₹2000 cr) and lease rental discounting from a bank ( ₹1100 crore).
Yash Gupta, Equity Research Analyst, Angel One, on Indiabulls Real Estate’s Q2 earnings
Indiabulls Real Estate Limited has reported results better than market expectations for Q2FY22. Its revenue from operation rose to ₹349.7 crores as compared to ₹20.14 crores in Q2FY21. In Q2FY21 several companies’ operations were stuck due to covid 19 lockdown. The company reported a profit of ₹5.64 crore for Q2FY22 as compared to the loss of ₹76 crores in Q2FY21.
The company has reported a very strong first half of 2022 and we expect the same momentum to continue for the upcoming quarter also.’
HCL Technologies to onboard 2,600 students in Vietnam in five years
HCL Technologies Ltd has launched its TechBee early career programme in Vietnam with plans to onboard 2,600 candidates in the next five years, starting in 2021.
Designed exclusively for high-school graduates, the TechBee programme prepares students technically and professionally for global IT careers in HCL, where candidates undergo an extensive 12-month training to become successful IT professionals and work for global companies.
India in no hurry to unwind pandemic-sra stimulus, Sitharaman says
Jyoti Roy – DVP- Equity Strategist, Angel One, on HDFC Bank
“HDFC Bank reported a 12.1% YoY increase in net interest income to ₹17,684 crore driven by advances growth of 15.5%, while reported NIM for the quarter stood at 4.1%. Pre provisioning profit for the quarter was up by 14.4% YoY to Rs. 15,807 crore…Overall HDFC Bank delivered another solid quarter of earnings growth while there was an improvement in asset quality with GNPA improving to 1.35% from 1.47% in Q1FY22 while slippages reduced to 1.8% of loans… At current levels, the stock is trading at 3.4xFY23 adjusted book which is below historical average. Post the Q2FY22 numbers we continue to maintain our BUY rating on HDFC Bank with a target price of Rs. 1862.”
Sensex at noon
Titan and Infosys led gains, up around 3% each, while HCL Tech and Bajaj Auto lagged in mid-market trade.
Tata Motors launches ‘Punch’ starting at ₹5.49 lakh
Paras Defence to incorporate a company in association with Krasny Defence Tech; stock hits 20% upper circuit
Zerodha informs users about possible issues with stock sale
Angel One on Ashok Leyland
‘Ashok Leyland Ltd is one of the leading player in India CV industry with a 32% market share in the MHCV segment. The company also has a strong presence in the fast growing LCV segment. Demand for MHCV was adversely impacted post peaking out due to multiple factors including changes in axel norms, increase in prices due to implementation of BS 6 norms followed by sharp drop in demand due the ongoing Covid-19 crisis. While demand for the LCV segment has been growing smartly post the pandemic, demand for the MHCV segment has also started to recover over the past few months before the 2nd lockdown. We believe that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a BUY.’
Broad market indices firm, but volatility index up 9%
BSE SmallCap up more than 1%
BSE MidCap gains 1.4%
Bajaj Finserv hits record high
Domestic gold prices weak
Gold struggled in Indian markets amid subdued global cues. On MCX, gold futures were up 0.11% to ₹47265 per 10 gram. Silver rose 0.16% to ₹63371 per kg.
Franklin Templeton Mutual Fund rejigs equities team
Franklin Templeton Mutual Fund hired two fund managers in its equity team to take over the responsibilities of Roshi Jain, a long standing fund manager with the fund house.
Alongside Anand Radhakrishnan, who is chief investment officer (CIO), Equities, Jain manages numerous key funds for Franklin Templeton including Franklin India Bluechip, Franklin India Focused Equity, Franklin Build India Fund, Franklin India High Growth Companies Fund and Franklin Asian Equity Fund.
PNB Housing Finance down 5%
The lender has aborted ₹4,000-crore share sale plan to US-based private equity firm Carlyle Group and others. The deal got mired into legal tangles on matters of valuation. Sebi had last month approached the Supreme Court against the Securities Appellate Tribunal’s order in the matter related to the company’s ₹4,000 crore equity capital raise plan. The matter is pending before the apex court.
Coal India up 2%
The mining major reduced supply to the non-power sector, but did not stop it altogether as alleged by some quarters, to fulfil emergency requirements for electricity plants amid shortage of the fuel, a senior CIL official told PTI.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“We achieved the 18400 level! This is the second pit stop we were aiming for post 18250. If we can close above 18400, the Nifty will aim for 18600 and then 18900 as the next two target levels. The weekly support has been updated to 18200 and as long as we do not disrespect this level, we are headed higher and all dips can be utilized to accumulate long positions.”
Route Mobile up 2.5%
Route Mobile has received shareholders’ approval to raise ₹2,000 crore through sale of securities. A majority of shareholders also approved increasing limits of foreign portfolio investments in the company.
Rupee opens flat at 75.25 per dollar
Nifty Metal up 2.6%; Hindustan Zinc jumps 10%
Covid update: India records 13,596 fresh cases
India recorded 13,596 fresh covid-19 infections in a day, the lowest daily rise in 230 days, while active cases dropped further to 1,89,694, the lowest in 221 days, according to the Union Health Ministry’s data on Monday.
The death toll climbed to 4,52,290 with 166 more fatalities. The country has so far reported 3,40,81,315 covid cases, it said.
Sunteck Realty acquires 110 acres to enter second-home market
The real estate firm on Monday said it has acquired about 110 acres on Pen-Khopoli Road, in Mumbai Metropolitan Region (MMR), to enter the second home segment. The acquisition has been done with an asset light joint development agreement strategy.
Avenue Supermarts zooms 7%
The Avenue Supermarts Ltd stock is on fire. Shares of the company surged more than 7% on the NSE in Monday’s opening reacting to its solid September quarter, which were announced on Saturday last week. With this latest up move, the stock hit a new 52-week high of ₹5,900 on the NSE intraday.
HDFC Bank up 1.5%
The bank’s profit rose 18% in the quarter ended September, buoyed by strong loan growth. Net income stood at ₹88.3 billion rupees ($1.17 billion), compared to 75.1 billion rupees a year ago. That beat the average estimate of 86.50 billion rupees.
Nifty Bank jumps 1.3%
Nifty stocks at open
Sensex surges over 500 points
Markets open at record high
Sensex at pre-open
Markets in the green at pre-open
Growth helps HDFC Bank, but stress remains a worry
HDFC Bank’s bullishness on balance sheet growth in the coming quarters, buttressed by a healthy performance for the September quarter, should be reason enough for investors to cheer.
India’s most valuable lender reported a net profit of ₹8,834 crore, a 17.5% year-on-year growth, for the September quarter. This was marginally higher than Street estimates. But more than the beat on profit, the bank’s business growth and the outlook on the same seem to have aided optimism over its valuations.(Read more)
China’s economic growth weakens
China’s economic growth sank in the latest quarter as a slowdown in construction and curbs on energy use weighed on its recovery from the coronavirus pandemic.
The world’s second-largest economy grew by 4.9% over a year ago in the three months ending in September, down from the previous quarter’s 7.9%, government data showed Monday.
Factory production, retail sales and investment in construction and other fixed assets all weakened.
Indian markets likely to be steady
Indian markets are likely to be steady on Monday as traders return from a three-day holiday. Trends in SGX Nifty suggest a positive opening for domestic indices.
On Thursday, the BSE Sensex ended at 61,305.95, up 568.90 points or 0.94%. The Nifty was at 18,338.55, up 176.80 points or 0.97%.
Collapse of Carlyle deal foils PNB Housing Finance plans
The collapse of a ₹4,000-crore investment plan led by Carlyle Group has muddied the fundraising plans of PNB Housing Finance Ltd, with the private equity firm now seen as unlikely to increase its stake in the mortgage lender.
Carlyle Group, the second-biggest shareholder in PNB Housing Finance, on 31 May agreed to invest up to ₹3,185 crore in the company through a preferential allotment at ₹390 per share. The investment was to be routed through Pluto Investments S.a.r.l., an affiliate of Carlyle Asia Partners IV, L.P. (Read more)
High jobless rates in north India pose new challenges
Joblessness in at least 12 states and Union territories has been stubbornly defying a declining national trend, with eight of them reporting double-digit unemployment rate in September, reflecting parts of the economy that have been left sputtering by the covid pandemic.
In Delhi, the unemployment rate is at a four-month high of 16.8%. Rajasthan has an unemployment rate of 17.9%, Haryana 20.3%, Jammu and Kashmir 21.6% and Bihar, Tripura, Jharkhand and Puducherry between 10% and 15.3%. (Full report)
Stocks to watch: HDFC Bank, Adani Enterprises, HCL Tech
HDFC Bank, Adani Enterprises, HCL Tech, Coal India are among the top 10 stocks in focus today. Among major companies that will declare September quarter earnings on Monday are UltraTech Cement, Alok Industries, Larsen & Toubro Infotech Ltd, and Tata Coffee.
Oil climbs further
Oil advanced in Asian trading after an eighth weekly gain with the market facing a global energy crunch ahead of winter. Futures in New York climbed above $83 a barrel after adding 3.7% last week, capping the longest run of weekly gains since 2015. A shortage of natural gas and coal from Asia to Europe is driving additional demand for oil products in power generation. That’s coincided with key economies rebounding from the pandemic, leading to a significant tightening of the market.
Asian shares mixed
Asian shares were mixed on Monday ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world’s second-largest economy even as US companies report strong quarterly earnings.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trading on Monday, off 0.07%, while Japan’s Nikkei lost 0.12%. U.S. stock futures, the S&P 500 e-minis, were down 0.13%.
US stocks gain Friday
Stocks surged globally on Friday in their best day in five months on strong US corporate earnings reports though three-year-high oil prices kept inflation risks alive.
The Dow Jones Industrial Average jumped 1.1% in its best weekly performance since June 25. The S&P 500 climbed 0.75% to notch its best week in 2-1/2 months, and the Nasdaq Composite added 0.5%.
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