Morning Update: L&T, Bajaj Auto, Dr Reddy’s Laboratories, Cipla and M&M were among major gainers on the Nifty, while losers were Bharti Airtel, HDFC Bank, Axis Bank, JSW Steel and Hindalco Industries.
Sensex- Falls –163 points at 63711
Nifty 50 Falls -41 points at 19037
Indian Market
FII AND DII
| FII Sold | 696.02 Cr |
| DII purchased | 340.25 Cr |
Indian Market News
- Asian markets are trading higher, with the Nikkei up 2% and the Kospi up 0.5%.
- China’s factory activity fell in October, according to the Caixin PMI.
- Oil rises ahead of the Fed meeting as the Middle East turmoil continues.
- Investors review profits as Wall Street closes higher on the eve of the Fed decision.
- The Sensex and Nifty are expected to open higher on positive global cues; the GIFT Nifty is expected to remain flat.
- India increases the windfall tax on petroleum oil to Rs 9,800 per tonne.
- The fiscal deficit during April-September was Rs 7 lakh crore, and tax receipts remained strong.
- ATF Price Cut | The price of jet fuel (ATF) in Delhi has been reduced to Rs 1.11 lakh/kL from Rs 1.18 lakh/kL, according to CNBC-TV18.
- According to CNBC-TV18, ICICI Bank increased one-year lending rates to 9% from 8.95%.
- The RattanIndia Enterprises arm has received type approval from the DGCA for its drone product.
- The USFDA has approved Lupin’s EIR for the Mandideep plant.
- Blue Jet Healthcare will make its debut on November 1: The stock may be listed at a 5-8% premium to the IPO price.
- The ASK Automotive IPO will begin on November 7th without any new issue components.
- Thyrocare’s net profit increased 31.75% to Rs 20.33 crore in the second quarter.
- Bharti Airtel’s second-quarter earnings falls 38% to Rs 1,341 crore, with ARPU at Rs 203.
- L&T’s second-quarter profit increased by 45% to Rs 3,223 crore, while revenue increased by 19% to Rs 51,024 crore.
Global Market Check
Gift Nifty
With a loss of 12 points, the GIFT Nifty suggests a slightly negative start for the overall index. After peaking at 19,161 points, GIFT Nifty futures were trading at 19,130 points.
US Markets
Tuesday night, as Wall Street prepared for the Federal Reserve’s most recent interest rate decision following a disastrous month, stock futures were marginally lower. Dow Jones Industrial Average-linked futures had a 50-point decrease, or 0.15 percent, drop. Futures on the Nasdaq 100 and the S&P 500 both dropped by roughly 0.2 percent.
While shares of Match Group, the parent company of Tinder, plummeted 6.9 percent on disappointing revenue guidance for the fourth quarter, restaurant operator Yum China Holdings fell 9.2% in after-hours trading after missing revenue estimates for the third quarter. Following a strong earnings and revenue announcement that reversed the company’s previous sharp falls caused by lower-than-expected fourth-quarter revenue expectations, Advanced Micro Devices was trading just above flat.
European Markets
Despite improvements on the final day of the month, European markets recorded their worst monthly performance since September 2022 in October as investors evaluated a flood of economic data and earnings. With most sectors seeing gains, the regional Stoxx 600 finished 0.6 percent higher. LSEG data shows that the index fell by more than 4% in October.
The London-listed shares of BP closed 4.5 percent lower after the company missed third-quarter projections, sending oil and gas equities plunging 0.8 percent. Due to pricing offsets, Brewers AB InBev and Carlsberg both reported decreased sales but increased revenue for the time.
October inflation in the euro zone hit a two-year low of 2.9%, according to preliminary statistics released on Tuesday. Reuters polled economists, who predicted 3.1% growth.
Asian Markets
Asia-Pacific markets began the day higher as investors kept an eye on a plethora of manufacturing data, ahead of a US Federal Reserve policy announcement. Later in the day, the Fed will wrap up its two-day meeting on monetary policy, and the markets anticipate that the central bank will maintain current interest rates.
Major economies like China, India, and South Korea are likely to release purchasing managers’ index data in October. While the Topix climbed 1.95 percent, Japan’s Nikkei 225 index opened 2 percent higher. At the opening, the Kospi in South Korea was up 0.76 percent, while the Kosdaq was up 1.27 percent. The Hong Kong Hang Seng index futures were trading at 17,113, indicating a little higher opening than the closing value of 17,112.48 for the HSI. The S&P/ASX 200 index increased by 0.22 percent in Australia.
Oil Prices
Tuesday saw a little increase in oil prices as expectations that the European Central Bank has most likely completed raising interest rates were raised by the decline in inflation in the euro zone and the balance of increased supply from OPEC and the US.
Before they expire later on Tuesday, December delivery Brent crude futures were up 31 cents, or 0.4%, at $87.76 a barrel. At $86.47, the more actively traded January contract increased by 11 cents, or 0.1%. West Texas Intermediate oil prices in the United States increased by 25 cents, or 0.3%, to $82.55 for December delivery and by 21 cents, or 0.3%, to $81.89 for January delivery.
Dollar Index
The dollar’s value stayed around Rs 83.28, while the Dollar index saw a 0.56 percent increase in futures trading at 106.72.
News updates
Mark Mobius sees Sensex at 1 lakh in next 5 years; bets on Dreamfolks, MapmyIndia and more
Mark Mobius, a global investment guru, predicts that the Sensex will reach 1 lakh in the next five years. He believes that the Indian equity market, particularly in emerging markets, will continue to grow. Mobius believes that the US 10-year Treasury offers a risk-free return of 5%, making the case for equities weak. However, he believes that the long-term growth story for India remains intact. In the past two weeks, the Nifty and Sensex have corrected almost 3.5% due to rising tensions in Israel, higher bond yields, and volatile crude prices.
L&T Q2 results: Profit jumps 45% to Rs 3,223 crore, revenue up 19% at Rs 51,024 crore
Larsen & Toubro (L&T) reported a 45 percent increase in net profit to Rs 3,223 crore in Q2 2023-24, and a 19 percent rise in consolidated revenue to Rs 51,024 crore. The company’s higher-than-expected sales growth was attributed to execution tailwinds in the infrastructure projects segment and sustained growth momentum in the IT and ITeS portfolio. The company is expected to increase its revenue and order inflow guidance for the rest of the fiscal year.
TVS Credit Services posts 14% rise in AUM at Rs 23,516 crore as of September 2023
TVS Credit Services Ltd, a leading non-banking financial company, has seen a 14% increase in its assets under management to Rs 23,516 crore as of September 30, 2023. The company registered an AUM of Rs 20,602 crore as of March 31, 2023. It also reported a 40% growth in its net profit after tax for the quarter ending September 30, 2023, at Rs 134 crore, compared to Rs 96 crore in the corresponding quarter of last year. The company’s business experienced significant growth in H1 FY24, with a book growth of 59% compared to H1 FY23, largely driven by strong consumer loan performance.
L&T forays into designing for fabless semiconductor chip
Larsen & Toubro is set to establish a subsidiary to focus on fabless semiconductor chip design and product ownership, with an investment of up to Rs 830 crore. The company’s board approved the incorporation of a wholly-owned subsidiary, with R Shankar Raman, L&T’s chief financial officer, stating that the company will focus on the “low investment” part of the supply chain and not enter manufacturing due to the competitiveness of global manufacturers, particularly those in China. The company’s strategy is to focus on the “low investment” part of the supply chain.
India hikes windfall tax on petroleum crude to Rs 9,800/ton
India has increased the windfall tax on petroleum crude to Rs 9,800/ton from Rs 9,050/ton, effective from November 1, according to a government notification. The tax on aviation turbine fuel has been reduced from 1 rupee per litre to nil, and diesel has been reduced from Rs 4/litre to Rs 2/litre. Crude oil prices are currently trading around $85 per barrel due to supply tightness and geopolitical tensions.
Stock in News
Larsen & Toubro: For the quarter that concluded in September of FY24, the infrastructure giant reported a staggering 45 percent year-over-year increase in consolidated profit at Rs 3,223 crore. Order inflow increased by 72 percent YoY to Rs 89,153 crore. For the quarter, total income from operations increased by 19% year over year to Rs 51,024 crore.
Bharti Airtel: The telecommunications company announced a net profit of Rs 1,340.7 crore for the July–September fiscal year of FY24, a 16.9% decrease from the previous quarter. Operational revenue for the same period fell by 1% to Rs 37,044 crore.
Tata Consumer Products: Thanks in part to increased other income, the FMCG company reported a 3.1 percent year-over-year increase in consolidated profit at Rs 338.2 crore for the quarter that ended in September of FY24. In comparison to the same time in the previous fiscal year, revenue from operations climbed by 11% to Rs 3,734 crore, and by 10% in constant currency.
Lupin: The US Food and Drug Administration (US FDA) has sent the establishment inspection report (EIR) for its Mandideep unit-2 manufacturing facility to the major pharmaceutical company. Following the facility’s most recent inspection, which took place between August 7 and 11, 2023, the EIR was released. ‘No action indicated’ (NAI) was the inspection designation given to the facility upon the closure of the inspection.
Blue Jet Healthcare: On November 1, the pharmaceutical company will make its debut on the BSE and NSE. The date of the IPO share allotment was October 30, and the final issue price was set at Rs 346 per share.
Jindal Steel & Power: OP Jindal Group company Jindal Steel & Power reported a consolidated profit of Rs 1,390.1 crore for the July-September period of FY24, more than six times the same period a year prior, helped in part by operating success. Profit was hurt in Q2 FY23 by an extraordinary loss of Rs 898.5 crore. In Q2 FY24, revenue from operations fell 9.4% year over year to Rs 12,250.2 crore.
DCB Bank: For the quarter that ended in September of FY24, the private sector lender recorded a 13% YoY increase in profit at Rs 127 crore. Operating profit increased by 15.3% YoY to Rs 211 crore, while other income increased by 8% to Rs 107 crore. Comparing the same time last year to this one, net interest income climbed by 15.8% to Rs 476 crore, with deposits increasing by 15.2% to Rs 45,496 crore and net advances increasing by 13% to Rs 37,276 crore. Regarding asset quality, net NPAs climbed by 9 bps to 1.28 percent for the quarter, while gross NPAs jumped by 10 bps QoQ to 3.36 percent.
Mangalore Refinery & Petrochemicals: While topline declined, lower input costs helped the state-owned petroleum refineries company achieve a 3.6% sequential improvement in consolidated profit at Rs 1,051.7 crore for the quarter ended September FY24. Operating revenue (excluding of excise duty) decreased 9.2% on a quarter-over-quarter basis to Rs 19,230 crore.
Navin Fluorine International: Due to a lower EBITDA margin, the chemicals company’s consolidated profit increased 4.8% year over year to Rs 60.6 crore for the July–September period, missing analysts’ projections. The quarter’s operating revenue of Rs 471.8 crore grew 12.5% YoY.
CE Info Systems: With its highest-ever quarterly sales, the digital maps and deep-tech products and platforms company reported a 30% year-over-year increase in profit at Rs 33.1 crore for the quarter that concluded in September of FY24. Operations revenue increased by 19.4% year over year to Rs 91.1 crore in the quarter, while EBITDA increased by 32.5% and margin increased by 440 basis points.
Motherson Sumi Wiring India: Propelled by strong operating performance, the auto auxiliary company recorded a 34% year-over-year increase in profit, coming in at Rs 156 crore for the July–September period of FY24. Over the same time frame, operating revenue rose by 15% to Rs 2,105 crore.
KEIIndustries: Up 31.2% from a year ago, the electrical wires and cables maker reported a standalone profit of Rs 140.2 crore for the quarter that ended in September of FY24. Compared to the same period in the previous fiscal year, revenue from operations increased by 21% during the quarter to Rs 1,946.6 crore.
Birlasoft: From July to September of FY24, the software company reported a 5.5% sequential increase in profit, or Rs 145.07 crore. In Q2FY24, operating revenue increased by 3.7% on a quarter-over-quarter basis to Rs 1,309.9 crore.
Inox Wind: Through the sale of equity shares in Inox Wind, the company’s promoter, Inox Wind Energy, has raised almost Rs 800 crore. On the stock markets, block deals were used to carry out the transaction. The money that is raised will be invested in Inox Wind and used to reduce its external debt, which will improve its balance sheet even further. Inox Wind Energy sold 3,83,62,000 equity shares at a price of Rs 210.23 per share, or 11.77% of paid up equity, in Inox Wind, for a total of Rs 806.48 crore, according to bulk deals data. ICICI Prudential Mutual Fund purchased 24,06,589 shares at an average price of Rs 209 per share, while Small Cap World Fund Inc. purchased 74,51,441 equity shares in Inox Wind at an average price of Rs 211.7 per share.
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