The volatility will persist in the markets as inflation keeps investors on their toes. A report showed US consumers expect inflation to remain high which offered another signal to the market that the Fed may have to continue its aggressive stance on interest rates. The strategy raises the risk of a recession.
Indian bond yields seen rising, rupee may test record lows
The Indian rupee may edge towards record lows but will get some support from a less hawkish-than-expected tone in minutes of the central bank’s latest policy meeting, while government bond yields are expected to rise, analysts said.
The Reserve Bank of India’s monetary policy committee (MPC) may become more data-dependant in deciding on the key interest rate with inflation expected to start easing, minutes of the latest meeting suggested on Friday.
“We could see a narrow trading range of 7.40%-7.50% on the 10-year bond next week as we do not have any major scheduled events,” a trader with a private bank said.
The benchmark Indian government bond yield ended at 7.4696% on Friday, 5 basis points (bps) above its previous close. The yield rose 1 basis point on the week, after adding an aggregate 29 bps over the last four weeks.
Market participants, however, do not expect the benchmark bond yield to break 7.50% in a major way.
Traders said with MPC members divided on the future trajectory on rate hikes, there was some relief buying expected. (Reuters)
D-Mart’s Q2 net profit up 64.13% to ₹685.71 crore; sales up 36.6%to ₹10,638.33 crore
D-Mart retail chain owner Avenue Supermarts on Saturday reported a 64.13 per cent rise in its consolidated net profit at ₹685.71 crore in the July-September quarter of FY23 as the average basket values continue to be elevated.
The company had posted a net profit of ₹417.76 crore in the corresponding quarter a year ago, said Avenue Supermarts in a BSE filing.
Its revenue from operations was up 36.58 per cent at ₹10,638.33 crore during the quarter under review as against ₹7,788.94 crore in the corresponding quarter last fiscal.
Avenue Supermarts’ total expenses stood at ₹9,925.95 crore, up 36.93 per cent in Q2/FY23, as against ₹7,248.74 crore of the corresponding quarter.
Avenue Supermarts CEO & Managing Director Neville Noronha said during the quarter FMCG and staples segment of the business has performed better than the general merchandise and apparel segments. (PTI)
LKP Securities Quarterly results update on Bajaj Auto, Federal Bank and HDFC Bank
Bajaj Auto: With strong balance sheet, robust return ratios, hefty dividend yield of 3.9% in FY22 and zero financial leverage, we believe the stock looks attractive at 16.25x FY 24E earnings. We therefore maintain our BUY rating on the stock with a slightly pruned down target price (on exports concerns) of ₹4,174 (at 19x FY 24E earnings).
Federal Bank: We believe the asset quality to stay stable with significant improvement in profitability. We have incorporated steady provision requirements along with stable growth in the balance sheet and thus expect it to deliver RoA/ RoE of 1.1%/13% by FY23E. We reiterate BUY with increased target price of Rs180 (based on 1.6x FY24E Adj. BVPS); a potential upside of 38%.
HDFC Bank: The bank has reported sequential increase in PAT by 15% and ROA/ROE of 2%/17%. We believe, superior underwriting practices, higher liquidity, adequate coverage and strong capital position makes the bank well placed and we recommend BUY with revised price target of Rs1,831.
Stocks to Watch: Electronics Mart, HDFC Bank, Bajaj Auto, Paytm, Zee Entertainment, Adani Ports, HDFC Ltd, DMart, L&T Infotech, and Shree Cement
ACC, Bank of Maharashtra, PVR, HeidelbergCement India, and Can Fin Homes will be in focus as they declare their September quarter earnings today. (Read More)
IT companies stave off earnings downgrade challenge
Most information technology (IT) services majors continued to show resilience in the current environment even as macro headwinds were expected to stay strong. The September quarter performance of Infosys Ltd, Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd beat a majority of analyst expectations.
Constant currency growth remained strong, though the impact of cross-currency headwind continues. Deal wins and order flows remained healthy, improving the outlook for companies in the second half of FY23 amid recession concerns. (Read More)
Paytm Payments Bank set to strengthen leadership with seasoned veterans
The bank has appointed Deependra Singh Rathore as the interim chief executive officer (CEO), in addition to his role as chief product & technology officer, according to sources. It will announce the name of the new full-time CEO after receiving regulatory approvals. Satish Gupta, who was the bank’s CEO, is set to retire in October.
Paytm Payments Bank spokesperson said, “We are focused on bringing the best of technology-driven banking to drive financial inclusion. As we continue our journey, we are excited to strengthen our leadership team and have seasoned experts from banking and financial services join us. Paytm Payments Bank remains committed to creating large-scale impact with compliance and operational excellence.” (ANI)
Adani Agri Logistics gets contract from FCI to build 4 silos complexes in UP, Bihar
Adani Agri Logistics Ltd on Friday said it has got contract from state-owned FCI to build four silo complexes in Uttar Pradesh and Bihar.
Adani Agri Logistics Ltd, a wholly-owned subsidiary of Adani Logistics Ltd, has received a Letter of Award (LoA) from the Food Corporation of India (FCI), following competitive bidding, to build silo complexes at various locations across the country.
Adani Agri Logistics will develop and operate state-of-the-art silo complexes at four locations — Kanpur, Gonda and Sandila in Uttar Pradesh and Katihar in Bihar, creating a total silo storage capacity of 3.5 lakh tonnes.
Silo complexes, which are mechanised and automated units equipped with temperature and humidity controls, are built to handle, store and preserve food grains. The handling process, from procurement to transportation, is in bulk form catered through containerised movement. (PTI)
Global chip industry stares at slowdown; India investments may continue
Chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC) and Hon Hai Precision Industry Co., better known as Foxconn, may be forced to rethink their investments in the coming quarters as they take a cautious stance to respond to global headwinds such as rising inventory coupled with concerns of rising inflation and geopolitical tensions.
TSMC reported on Thursday an 80% jump in net profit for the September quarter at $8.8 billion. However, even as the results beat market estimates, chief executive C.C. Wei said that net capital expenditure for the rest of FY23 has been cut by 10% to $36 billion. He said also that there could be a “likely decline” in the global semiconductor market, and TSMC is “not immune” from the downturn despite its dominant market position. (Read More)
India Cements added to list of stocks under F&O ban on NSE today
A total of three stocks have been put under the ban for trade on Monday, October 17, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Delta Corp and Indiabulls Housing Finance stocks continue to be a part of the NSE’s F&O ban list whereas India Cements has been added to the list by the stock exchange for today. The NSE updates the list of securities in F&O ban for trade every day. (Read More)
Tokyo stocks opened lower Monday with investors disheartened by falls on Wall Street
Tokyo stocks opened lower Monday with investors disheartened by falls on Wall Street, where participants shrugged off mostly solid bank earnings amid worries over bond yields and rising recession risks.
The benchmark Nikkei 225 index was down 1.03%, or 278.86 points, at 26,811.90 in early trade, while the broader Topix index was down 0.73%, or 13.90 points, at 1,884.29.
“Japanese shares are seen dropping following falls in US stocks” on rising long-term yields, senior market analyst Toshiyuki Kanayama said in a note.
The dollar fetched 148.55 yen in early Asian trade, against 148.72 yen in New York late Friday. (AFP)
Bajaj Auto Q2 profit surges 20% to ₹1530 crore for the second quarter
Bajaj Auto on Friday said its net profit surged by 20 per cent year-on-year to ₹1,530 crore for the second quarter of the current financial year.
The company’s total revenue from operations increased by 16.4 per cent to ₹10,202.8 crore for July-September 2022 quarter.
At ₹10,203 crore, quarterly revenue from operations surpasses the ₹10,000 crore milestones for the first time, according to a regulatory filing to the stock exchanges by Bajaj Auto.
Growth of 16 per cent year-on-year and 27 per cent quarter-on-quarter was aided by the recovery of volumes on the improvement of semi-conductor supplies, the company said. (ANI)
HDFC Bank quarterly earnings: Beating estimates, India’s largest private bank clocks 20% higher profit
Driven by higher loan growth and a rise in income from other sources, HDFC bank, India’s largest private bank on Saturday reported a 20% increase in the net profit for the quarter ending September 2022. The private bank clocked a net profit of Rs. 106.05 rupees, which was higher than the estimations of analysts who expected Rs. 105.97 billion as net profits, according to Refinitiv IBES data.
Both the Net interest income and income from other sources saw double-digit growth with interest income increasing by 18.9% to Rs. 210.21 billion and income from other sources increasing by 16.7% due to improvements in earnings from fees and commission and the foreign exchange and derivatives revenue also improved. (Read More)
Buy or sell: Vaishali Parekh recommends 2 stocks to buy today — 17th October
Vaishali Parekh has recommended two shares to buy today. Here we list out details in regard to those buy or sell stocks for today:
1] Mahanagar Gas Ltd or MGL: Buy at ₹808, target ₹840, stop loss ₹794; and
2] Larsen & Toubro (L&T): Buy at ₹1911, target ₹1952, stop loss ₹1885. (Read More)
Electronics Mart IPO share listing today. Experts predict ‘decent’ debut
Shares of Electronics Mart India Limited is going to hit Dalal Street today. As per the information available on BSE website, effective from Monday, October 17, 2022, the equity shares of Electronics Mart India Limited shall be listed and admitted to dealings on the exchange in the list of ‘B’ group of securities in a Special Pre-open Session (SPOS). (Read More)
Stocks fall broadly on Wall Street as inflation worries grow
More worries about inflation helped spur a broad slide for stocks Friday that left most of the major indexes on Wall Street in the red for the week and wiped out much of the market’s gains from a strong rally a day earlier.
A report showing U.S. consumers raised their expectations for future inflation hurt markets worldwide, offering another signal the Federal Reserve may have to continue aggressively hiking interest rates to temper stubbornly hot inflation. The strategy raises the risk of a recession.
The S&P 500 fell 2.4% after having been up as much as 1.2% in the early going. The Dow Jones Industrial Average fell 1.3% and the Nasdaq composite ended 3.1% lower. Both indexes also turned lower after marching higher in early trading.
Trading has been unsettled all week and was especially volatile on Thursday after a government report showed that inflation remains very hot. Major U.S. indexes staged their biggest comeback in years on Thursday in a reversal from steep morning losses. (AP)
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