Morning Update :-Among the most active equities on the NSE are Infosys, M&M, Titan Company, Reliance Industries, and TCS. The BSE Midcap and Smallcap indices are trading unchanged.
Sensex- Falls -122 Points at 64709
Nifty 50- Falls -30 Points at 19374
Indian Market
FII AND DII
| FII Sold | 1,712.33 Cr |
| DII purchased | 1,512.14 Cr |
Indian Market News
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The dollar is on track for its best week against the yen in three months, as cryptos soar.
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US applications for unemployment benefits are decreasing but remain at historically low levels.
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Asian markets are trading lower; the Nikkei, Shanghai Composite, and Straits Times are all down 0.5%.
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Oil is poised to fall for the third week in a row as fears over the Middle East crisis fade.
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After Jerome Powell and the Treasury auction, the S&P 500 and Nasdaq both lose their winning streaks.
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ICICI Bank receives RBI approval to establish ICICI Securities as a wholly-owned subsidiary.
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REC inks agreement with RailTel to fund infrastructure investments in telecom, information technology, and railway signalling.
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Aurobindo Pharma’s net profit in the second quarter increased by 85% to Rs 757 crore.
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On the final day, the ASK Automotive IPO was subscribed to 51.14 times, while the QIB part was subscribed to 142 times.
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Piramal Enterprises provides information. Profit in the second quarter was Rs 48 crore, but net interest income fell by 9%.
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On the back of strong Q2 earnings, Force Motors shares reached the 5% upper circuit.
- Torrent Power’s second-quarter profit increased by 9% year on year to Rs 526 crore.
Global markets
Gift Nifty
With a drop of 47 points, the GIFT Nifty suggests a somewhat negative start for the whole index. After peaking at 19,403 points, GIFT Nifty futures were trading at 19,375 points.
US Markets
The S&P 500 dipped on November 9, snapping an eight-day winning run, as a dramatic surge in yields frightened investors. The benchmark index sank 0.81 percent, concluding at 4,347.35, while the Nasdaq Composite shed 0.94 percent and closed at 13,521.45. The Dow Jones Industrial Average slid 220.33 points, or 0.65 percent, to settle at 33,891.94.
Stocks reached session lows as Federal Reserve Chair Jerome Powell acknowledged more work may need to be done to bring down inflation, while the recent reduction in pace has been a welcome indication for policymakers.
“The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance,” he said in prepared comments for an International Monetary Fund event.
European Markets
European markets closed higher Thursday as momentum in markets built up on the back of good corporate results. The pan-European Stoxx 600 was up 0.8 percent by the close, having recovered initial losses. Industrials climbed 2.5 percent to lead advances while travel and leisure sectors dipped 2 percent.
Earnings remain an important source of mood in European stock markets. Among the big companies to report before the bell on Thursday were AstraZeneca, Deutsche Telekom, Henkel, ArcelorMittal and Wienerberger.
On Wall Street, The S&P 500 hovered near the flatline as the broad-market index failed to build on its longest winning run since November 2021. Most Asia-Pacific markets surged higher overnight, with data from China indicating consumer prices decreased faster than expected in October.
Asian Markets
Asia-Pacific markets began lower on November 10, rebounding from tiny gains recorded in the previous session despite a pessimistic tone set by US markets overnight.
The US benchmark S&P 500 index broke an eight-day winning streak as Treasury rates jumped and Federal Reserve Chair Jerome Powell hinted more effort may be needed to bring down inflation. Japan’s Nikkei 225 lost 0.76 percent, after advances of over 1.5 percent in the previous session. The Topix lost 0.49 percent at open.
South Korea’s Kospi began 0.83 percent down, also down following increases on Thursday, while the Kosdaq fell 1.13 percent at open. In Australia, the S&P/ASX 200 traded 0.49 percent down. Futures for Hong Kong’s Hang Seng index was at 17,546, hinting to a slightly higher open compared with the HSI’s closing of 17,511.29.
Oil Prices
Oil prices nudged up on Thursday as markets disregarded unfavourable deflationary signs in China and searched for fresh signals on the state of demand from the world’s two major oil customers. Brent oil futures increased 42 cents, or 0.5 percent, to $79.96 a barrel. US West Texas Intermediate (WTI) oil futures increased 36 cents, or 0.5 percent, at $75.69 a barrel.
The recovery occurred after both benchmarks sank more than 2 percent to their lowest since mid-July on Wednesday, as concerns over prospective supply disruptions in the Middle East lessened and concern about US and Chinese demand grew.
Dollar Index
The Dollar index traded 0.10 percent higher in futures at 105.70, but the value of one dollar stayed at Rs 83.31.
Gold Prices
Gold prices reached a three-week low on Thursday due to the decline in safe-haven demand from the Middle East and investors awaiting comments from US Federal Reserve Chair Jerome Powell for interest rate signals. Spot gold was down 0.1% at $1,948.39 per ounce, while US gold futures dipped 0.2% to $1,953.50. Fed officials have remained neutral on the central bank’s decision, focusing on economic data and the impact of increasing long-term bond rates. Powell did not comment on monetary policy or economic outlook at a conference on Wednesday.
News updates
Equity mutual funds get close to Rs 20,000 crore net inflow in October: AMFI
In October, equity mutual funds in India saw a net inflow of nearly Rs 20,000 crore, according to data from the Association of Mutual Funds of India (AMFI). Small cap mutual fund schemes also saw an increase in inflows, with inflows worth Rs 4,495 crore, up from Rs 2,678 crore a month earlier. Overall, equity funds received inflows worth Rs 19,957 crore, up from Rs 14,091 crore in September. October saw the third highest monthly inflow into equity funds in 2023 and the fourth month where all equity fund categories had positive net inflows. Retail investors may believe there is still potential in small-cap funds, but some mutual fund houses have stopped or limited inflows due to difficulties in responding to additional market flows.
Tata Technologies in talks with Morgan Stanley, US funds for IPO investments
Tata Technologies, part of India’s Tata Group, is in discussions with Morgan Stanley Investment Management, Blackrock, and some US hedge funds to invest in its initial public offering at a valuation of $2.5 billion. The company provides engineering services for companies in the auto and aerospace sectors. The IPO will be the first in two decades for a Tata Group company, which has many listed businesses including in the auto and steel sectors. Before the planned $350-375 million IPO, Tata Technologies is holding talks with US asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital, as well as Blackrock and Morgan Stanley for possible participation in the deal.
Howard Marks predicts Fed Fund Rate range of 2-4% for the upcoming decade
Howard Marks, Co-Chairman of Oaktree Capital Management, predicts that the Federal Fund Rate will rise from zero to two percent over the next decade. Marks shared his outlook on the financial landscape at the HKMA Global Financial Leaders’ Investment Summit and discussed various topics. The Federal Funds Rate is a key metric that influences various financial aspects. Marks acknowledged uncertainty in the economic climate, as the world is currently enduring two wars, the Russia-Ukraine war and the Israel Hamas war, which could have long-term ramifications on global geopolitics. He remains cautious but pragmatic about interest rates, stating that he is confident that rates may go a little higher, but not significantly higher, as substantial progress is being made against inflation.
ICICI Bank gets RBI nod to make ICICI Securities wholly-owned subsidiary
ICICI Bank has received RBI approval to make ICICI Securities its wholly-owned subsidiary, subject to certain conditions. The bank announced on June 26 that it will consider a proposal for the delisting of ICICI Securities, a subsidiary of the bank. The rationale behind the decision was that ICICI Securities is a low capital-consuming business with sufficient internal accruals to fund business growth, and ICICI Bank is not expected to need to make additional capital infusion into the company. The bank’s decision follows a proposal for the delisting of ICICI Securities.
Moody’s upgrades Tata Motors’, JLR ratings to Ba3; outlook remains positive
Moody’s has upgraded Tata Motors’ and Jaguar Land Rover’s ratings to Ba3 from B1, indicating a positive outlook on the company’s financial health. Tata Motors’ CFR was upgraded to Ba3, while Tata Motors senior unsecured instruments ratings were also upgraded to Ba3. Moody’s also upgraded Jaguar Land Rover’s CFR to Ba3 and probability of default rating to Ba3-PD. The company’s backed senior unsecured global notes were also upgraded to Ba3. The upgrade reflects the company’s strong operating performance over the past 12 months, which has improved credit metrics.
Apple suffers setback in EU clash over $14 billion tax bill
Apple and Ireland have faced a setback in their EU clash with the European Union’s antitrust watchdog over a €13 billion ($14 billion) Irish tax bill. The EU’s antitrust watchdog, the EU Court of Justice, has called for a re-examination of Apple’s win in a lower EU court. The top EU tribunal is set to issue its binding ruling in the coming months. EU antitrust chief Margrethe Vestager, who is on temporary leave to pursue a bid for the European Investment Bank presidency, has been targeted in this case, targeting companies like Amazon and Stellantis NV’s Fiat. Apple won an initial bid to topple the EU’s decision in 2020 after judges found the European Commission had made several errors. The defeat was a crushing blow for Vestager, who has suffered several losses in other tax cases.
Strong pharma Q2 profits drive Nifty Pharma index up 6% in seven straight days
The Nifty Pharma index surged nearly 6% on November 9, thanks to strong quarterly earnings from most drugmakers. This performance contrasts with the benchmark Nifty 50’s less than two percent rise. Major pharma players like Sun Pharma, Dr Reddy’s Labs, Cipla, Alkem Labs, Lupin, and Torrent Pharma reported better-than-expected results for the July-September quarter. Despite weak acute sales in Q2, companies like Cipla and Torrent Pharma benefited from their resilient chronic portfolios. Dr Reddy’s saw its US sales offset sluggish India revenue. The upbeat performance from most pharma companies came despite weak domestic market performance in Q2.
Ashok Leyland Q2 results: Net profit soars multi-fold to Rs 561 crore; shares tumble drastically
Commercial vehicles producer Ashok Leyland on November 9 announced an 181 percent (YoY) jump in overall net profit at Rs 561 crore for the September quarter 2023-24 riding on higher sales. The business had incurred a net profit of Rs 199 crore in the same time prior fiscal year.
Sequentially, the net profit decreased three percent from Rs 576 crore in the preceding quarter. Revenue from operations climbed 16.6 percent to Rs 9,638 crore in the quarter from Rs 8,266 crore in same period last year.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the quarter was Rs 1,080 crore (11.2 percent) vis-a-vis Rs 537 crore (6.5 percent) in Q2 FY’23. Net Debt at the end of the quarter amounted at Rs 1,139 crore with a debt equity at 0.1 time.
Stock in News
ESAF Small Finance Bank: On November 10, the small finance bank will float its shares on the exchanges. The price per share for the final issuance has been set at Rs 60. November 9 was the day that shares were allocated.
ICICI Bank: The Reserve Bank of India has approved, subject to certain requirements, the country’s second-largest private sector lender’s plan to make ICICI Securities a fully owned subsidiary. According to a scheme of arrangement, the bank has sought to delist equity shares of ICICI Securities.
Zee Entertainment Enterprises: Despite significant topline growth, which was hampered by a negative operating margin, the media and entertainment firm reported consolidated profit of Rs 123 crore for the quarter ended September FY24, up 9%. Driven by subscription and other sales & services, consolidated revenue from operations increased by 20.5 percent to Rs 2,437.8 crore over the same period last year.
Muthoot Finance: The firm that finances gold loans reported a stand-alone profit of Rs 991 crore for the July–September fiscal year, up 14.3% from the same period in the previous fiscal year. With net interest income of Rs 1,858.4 crore for the quarter, it increased 18.2 percent from the same period last year.
AstraZeneca Pharma: Thanks to a remarkable gain and increased topline, the pharmaceutical business reported a staggering 60.8 percent year-over-year increase in profit at Rs 52.4 crore for the quarter that ended in September of FY24. Operational revenue rose to Rs 311 crore, up 31.7 percent from the same time in the previous fiscal year.
G R Infraprojects: In the tender held by RITES on behalf of the Shri Mata Vaishno Devi Shrine Board, Katra (J&K), the company has come out on top as the lowest bidder (L-1) for the design, engineering, construction, development, financing, operation, and maintenance of a passenger ropeway between Tarakote and Sanjichhat, on a BOOT basis. The project has a 200 crore rupee cost.
Aurobindo Pharma: The pharmaceutical company’s strong operational results and top line contributed to a staggering 85% year-over-year increase in consolidated profit, which came in at Rs 757.2 crore for the July–September quarter of FY24. Operations revenue increased by 25.8% YoY to Rs 7,219.4 crore, with growth markets revenue up 24.7%, US formulations (excluding Puerto Rico) up 35.7%, and European formulations up 16.7%.
Hindustan Aeronautics: Hindustan Aeronautics, a state-owned defence corporation, and Airbus have agreed to develop maintenance, repair, and overhaul (MRO) facilities in Nashik, Maharashtra, for the A-320 series of aircraft. In order to help HAL set up an MRO facility for the A320 family of aircraft, Airbus will provide the tool package for the A320 series and specialist advisory services.
Rail Vikas Nigam: Due to lacklustre operating results and moderate topline growth, the state-owned railway corporation declared consolidated profit of Rs 394.5 crore for the July–September fiscal year of FY24, up 3.5 percent from the same time the previous year. In the second quarter of FY24, consolidated revenue from operations rose by 0.1 percent to Rs 4,914.3 crore.
Aditya Birla Fashion & Retail: Despite a higher topline affected by subpar operating metrics, the firm reported a consolidated net loss of Rs 200.3 crore for the quarter ended September FY24, compared to a profit of Rs 29.4 crore in the same period previous fiscal year. In Q2 FY24, consolidated revenue from operations reached Rs 3,226 crore, up 4.9 percent YoY.
Ashok Leyland: The board members have approved an investment of Rs 1,200 crore by the nation’s second-largest commercial vehicle manufacturer, through its holding company, Optare PLC UK, in Switch Mobility. The infusion of money will be utilised for R&D, capital expenditures, and fulfilling operating needs in India and the UK. Following the required legislative clearances, the money will be pumped in one or more tranches over the course of the upcoming several months.
Piramal Enterprises: The non-banking finance company recorded a profit of Rs 48 crore for the quarter that ended in September of FY24, compared to a loss of Rs 1,536 crore in the same period last year. This was due to a significant decline in loan loss provisions and fair value loss, which fell to Rs 198 crore from Rs 3,257 crore. For the quarter, net interest income was Rs 750 crore, a 9 percent year-over-year decline.
Torrent Power: During the July–September fiscal year of FY24, the power utility firm reported a 9.2 percent year-over-year gain in consolidated profit of Rs 526 crore. This increase was mostly due to lower tax expenses and a greater operating margin. With a rise in merchant power sales in gas-based power plants, licenced distribution companies, and renewable businesses as a result of capacity expansion and higher wind PLF, revenue from operations increased by approximately 4% YoY to Rs 6,961 crore.
NBCC (India): Despite increased other income and respectable operational margin expansion, the state-run construction business reported a 16.6% year-over-year fall in net profit at Rs 79.6 crore for the quarter ended September FY24. This decline was driven by an unusual loss. During the quarter, revenue from operations increased by 1.2 percent on an annual basis to Rs 2,053.3 crore.
Aegis Logistics: At an average price of Rs 294 per share, Smallcap World Fund Inc. sold 18.26 lakh equity shares, or half a percent, in the firm through open market transactions. As of September 2023, its stake in the business was 2.18 percent, or 76.36 lakh shares.
NCC: The building company’s consolidated net profit for the July–September fiscal year of FY24 dropped by a staggering 37.1 percent year over year to Rs 86.5 crore. This decline was caused by the company’s poor operating performance, which followed a steep increase in material and subcontractor work bill costs. During the quarter, revenue from operations climbed dramatically by 40% YoY to Rs 4,719.6 crore.
Campus Activewear: Due to reduced topline and bad operational figures, the footwear manufacturing firm recorded a dramatic reduction in net profit for the July–September quarter of FY24, coming in at Rs 0.32 crore, down 97.8% from the same period the previous year. Operating revenue for the quarter fell 22.4 percent YoY to Rs 258.66 crore.
BEML: The public sector company reported a 218.5 percent year-over-year increase in consolidated profit for the September FY24 quarter, amounting to Rs 51.8 crore. This increase was driven by both strong operating results and topline growth after a decrease in material costs. Operating revenue for the quarter increased by 13.9% YoY to Rs 916.8 crore.
GlaxoSmithKline Pharmaceuticals: Driven by improved operating metrics, the healthcare firm reported consolidated profit of Rs 217.5 crore for the quarter ended September FY24, up 12.5 percent year over year. With Rs 957 crore in revenue from operations for the quarter, it was 4.4% more than the same time in the previous fiscal year.
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