Morning Update : Sensex has crossed the 64,500 mark, while the Nifty has risen above 19,250; the top gainers are Apollo Hospitals and Tata Motors. Nov-03

Morning Update :- Benchmark indices opened higher on November 3, bolstered by strong hints from overseas rivals. The market’s optimistic sentiment was also reflected in the broad-based gains observed across sectors, with all sectoral indices trading in the green. Among industries, information technology, metals, and pharmaceuticals were the leading gainers.

Sensex-  Gains    +415        Points at    64500

Nifty 50- Gains    +131        Points at   19264

 Indian Market 

FII AND DII 

 Indian Market News

1. Asian markets are trading higher, with the Kospi, Hang Seng, and Straits Times each up 1%.
2. Wall Street indexes rise on expectations of peak US interest rates and robust earnings.
3. Gold remains stable as traders await employment data.
4. The dollar falls as traders believe the Fed is done raising interest rates.
5. The Bank of England maintains its key interest rate at 5.25% and rules out any future reduction.
6. For Rs 60 crore, L&T sells its whole shareholding in L&T Infrastructure Engineering to STUP Consultants.
7. In October, Mahindra Finance disburses approximately Rs 5,250 crore.
8. JK Lakshmi Cement’s Q2 profit rises 55% year on year to Rs 96 crore on greater volume; the stock rises 6%.
9. Tata Motors is up 3% after reporting strong second-quarter earnings.
10. Revenue increase in the second quarter, margin expansion, and profitability are all possibilities.
11. Anchor investors buy Rs 135 crore worth of ESAF Small Finance Bank shares ahead of the issue’s launch.
12. Adani Enterprises’ net profit in the second quarter fell 51% to Rs 228 crore.

Global Market Check

Gift Nifty

With a loss of 14.5 points, the GIFT Nifty suggests a somewhat negative start for the overall index. After peaking at 19,369 points, GIFT Nifty futures were trading at 19,345 points.

US Markets

Following the release of Apple’s most recent quarterly results on Thursday night, Nasdaq 100 futures declined. S&P 500 futures down 0.1 percent, while futures connected to the tech-heavy index fell 0.3 percent. The Dow Jones Industrial Average-linked futures declined 19 points, or 0.06 percent.

Following the release of a bleak revenue projection for the December quarter, the maker of the iPhone saw a 3% decline in after-hours trading. For the fourth consecutive quarter, overall sales decreased even though the company beat both its top and bottom lines in the fourth quarter of its fiscal year. In other news, Square’s stock surged 16 percent following a beat on profits and an increase in full-year forecast, and Paramount Global’s stock increased by over 5 percent following a solid quarterly report.

Treasury yields declined during Thursday’s regular session, which saw a widespread increase in stocks. With a rise of 1.9 percent, the S&P 500 had its greatest day since April, while the Dow had its best session since June, up 1.7 percent. With a gain of almost 1.8 percent, the Nasdaq Composite had its greatest day since July.

European Markets

European markets closed higher on Thursday due to the US Federal Reserve’s decision to hold interest rates steady. The Stoxx 600 ended 1.6% higher, and all sectors were in positive territory. Auto stocks rose by 3%, while tech stocks shot 2.7% higher due to rising risk appetite. The Bank of England announced the decision, which was expected after the Fed and European Central Bank paused hikes. The decision was made amid signs of economic growth, labor market conditions, and inflation remaining above the central bank’s target. Asia markets rose sharply, while S&P 500 futures inched higher overnight.

Asian Markets

Asia-Pacific markets rose at the end of the week, with investors awaiting data on services activity in major economies like China, India, and Hong Kong. Hong Kong’s Hang Seng index stood at 17,455, with a higher open compared to the HSI’s close of 17,230.59. South Korea’s Kospi rose 0.78 percent at the open, while the Kosdaq was up 0.14 percent. Japan markets were closed for a public holiday, while the S&P/ASX 200 in Australia traded about 0.9% higher. Wall Street indexes rose on Thursday as Treasury yields fell, with investors betting the Federal Reserve could be done raising rates for 2023.

Oil Prices

Oil gained 1% on Thursday, ending a three-day decline, as risk appetite returned to financial markets after the US Federal Reserve kept benchmark interest rates on hold. Brent crude futures rose by 2.1% to $86.43 a barrel, while US West Texas Intermediate crude futures gained by 2.1% to $82.14 a barrel. The rally tracked gains across financial assets.

Dollar Index

The Dollar index traded 0.06 percent lower in futures at 106.37, whereas the value of one dollar hovered near Rs 83.09.

Gold Prices

As investors increased their wagers that the Federal Reserve may be done raising interest rates, gold prices rose somewhat on Thursday, helped by a declining US dollar and Treasury yields following the central bank’s decision to hold interest rates constant. By 0310 GMT, spot gold had increased by 0.1 percent to $1,983.77 per ounce. US gold futures were up 0.2% at $1,991.80.

News updates 

Great time for India, many forces creating tailwinds for country: Bain & Company’s Manny Maceda

At the Indian Business Leader Awards Jury discussion on CNBC-TV18, Manny Maceda, CEO of Bain Global, discussed the possibilities for India in the post-pandemic world, the pillars driving growth, and the changes in businesses due to recent geo-political changes. Maceda highlighted the impact of deglobalization and geopolitical factors on economic and commercial decisions, suggesting that participating in India as a global company might be a risk management strategy. He also discussed the unprecedented events such as the Russia-Ukraine war and the instability in the Middle East, noting that these are potentially global risks that change how companies make their decisions. Maceda emphasized that participating in India as a global company might be a risk management strategy.

Banks face challenges in making ECL-based provisioning work

The Reserve Bank of India has transitioned from a regulatory prescription model to an Expected Credit Loss (ECL)-based approach to loan loss provisioning. This change could significantly impact Indian banks’ lending operations, capital requirements assessment, and financial performance reporting. However, successful implementation depends on high-quality information. The ECL framework uses an assessment of the probability of default and an estimate of the loss given default, which depends on factors like the borrower’s ability and willingness to repay.

Vodafone Idea gets Rs 2,000 crore from HDFC Bank; meets SUC payment obligations

HDFC Bank has extended a Rs 2,000 crore loan to Vodafone Idea (Vi) to help it pay pending license fees and fulfill its 5G spectrum payment obligations. The two-year loan was disbursed in mid-September, just before the deadlines for some of the company’s loan and statutory payment commitments. Vi has already paid over Rs 350 crore for FY22 and FY23 in past license fees and about Rs 1,700 crore toward spectrum usage charges (SUC). The company is also in talks with potential investors for equity funding.

Why Aswath Damodaran thinks Tesla is overvalued currently

Aswath Damodaran, a professor of finance at the Stern School of Business at New York University, believes Tesla is overvalued at $200 a share, valuing the company’s scrip at $180. Damodaran acknowledges that he doesn’t own or drive a Tesla and has less knowledge about the company than Tesla bulls or bears. However, he plans to try to value the company again as the stock price drops to $200. Damodaran first valued Tesla in 2013 and has been wrong on its value before, but has learned about the company and has no regrets.

Stock in News

Tata Motors: Driven by robust development across all categories, the Tata Group company recorded consolidated net profit at Rs 3,764 crore for the quarter ended September FY24, compared to a loss of Rs 945 crore in the comparable period last fiscal. In the second quarter of FY24, revenue from operations increased by 32% year over year to Rs 1,05,128 crore, with Jaguar Land Rover’s top line increasing by 30.4 percent to $6857 million.

Mahindra & Mahindra Financial Services: The business projects total disbursements for October to be approximately Rs 5,250 crore, which is comparable to the same amount as the prior year. October 2023 disbursements at YTD of Rs 30,700 crore, representing a 16 percent YoY rise. In comparison to the same month last year, the collection efficiency was 94 percent in October.

Shilpa Medicare: At a par value of $1 per share, the firm purchased Pilnova Pharma Inc. in the United States, making it a wholly-owned subsidiary. By November 15, the transaction will be finalised.

Container Corporation of India: Despite a sharp increase in rail freight expenses that limited profitability and negatively impacted EBITDA margin, the state-owned company reported a 21.3 percent year-over-year growth in consolidated profit at Rs 368.5 crore for the July–September period of FY24. This growth was primarily driven by other income and topline. For the quarter, total income from operations increased by 10.5 percent year over year to Rs 2,195 crore.

Gujarat Gas: Despite a lacklustre quarterly performance, the gas distribution company’s robust EBITDA margin helped it register a tremendous 37.2 percent year-over-year increase in consolidated profit, reaching Rs 296 crore for the quarter that ended in September of FY24. For the quarter, revenue from operations increased by 1.7% year over year to Rs 3,991.2 crore.

JK Lakshmi Cement: During the July–September period of FY24, the cement business recorded a 55% year-over-year increase in consolidated profit at Rs 96 crore. This improvement was primarily driven by higher volume, a better product and sales mix, and lower fuel costs. During the quarter, revenue from operations rose 14.6 percent year over year to Rs 1,574.5 crore, with sales volume increasing 13.8 percent year over year to 28.78 lakh tonnes.

Maruti Suzuki India: With production from Suzuki Motor Gujarat included, the nation’s largest automaker recorded overall production of 1.76 lakh units in October of this year, up 13.05 percent from 1.56 lakh units in the same month previous year.

Larsen & Toubro: For Rs 60 crore, the infrastructure giant sold STUP Consultants, a division of Assystem SA of France, its whole interest in L&T Infrastructure Engineering (LTIEL). This deal is consistent with the company’s resolve to concentrate on its primary operations and resources. LTIEL made Rs 92 crore in sales in FY23. It is anticipated that the transaction will be finished by January 15, 2024.

Indian Energy Exchange: Driven by other income, topline, and EBITDA margin, the energy exchange generated consolidated profit of Rs 86.5 crore for the July–September period of FY24, up 21.4 percent over the same period in the previous fiscal year. During the quarter, revenue from operations increased by 14% YoY to Rs 108.5 crore.

Sheela Foam: For the July–September fiscal year of FY24, the polyurethane foam manufacturer recorded a consolidated profit of Rs 44.3 crore, a 17.3% decrease from the same time the previous year. During the quarter, revenue from operations decreased by 10.2 percent on an annual basis to Rs 613.2 crore.

Religare Enterprises: Compared to a deficit of Rs 176.7 crore in the same period last year, the company reported a consolidated profit of Rs 40.4 crore for the quarter that ended in September of FY24. The quarter’s revenue from operations increased by 36% YoY to Rs 1,584.4 crore, despite a steep decline in other income.

IFB Industries: A lower topline has affected the company’s 10.7% year-over-year fall in consolidated profit, which came in at Rs 21.53 crore for the quarter that ended in September of FY24. Comparing the current period to the previous one, the combined revenue from operations decreased 1.6% to Rs 1,101 crore.

Ratnamani Metals Tubes: Supported by strong operating performance, the pipes and tubes manufacturing company reported a tremendous 66.4 percent year-over-year gain in consolidated profit at Rs 164.3 crore for the quarter ended September FY24. During the quarter, revenue from operations increased by 25.7% YoY to Rs 1,131 crore.

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