Market Highlights

---

Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

---

October 30, 2024

• News Headlines from Business News Agencies:
• Business Standard
• Dhanteras festivities spark Rs 60,000 cr sales; China faces Rs 1.25 tn loss
• BP profit slumps to $2.3 bn on weak refining margins, oil trading results
• JSW Energy emerges as top bidder for bankrupt KSK Mahanadi Power Company
• McDonald's global sales fall more than expected on muted demand: Report
• Zinc raises $25.5 million in seed funding from Nexus Venture Partners
• RBI's domestically-held gold reserves jump 510.46 MT by end-September
• Coal, Power ministries plan winter coordination to prevent power shortages
• Indonesia plans to import 1 million tonnes of rice from India in 2025
• NFRA likely to notify revised audit standards soon amid ICAI concerns
• Jio Financial Services launches SmartGold for digital gold purchase
• Swiggy raises primary issuance to Rs 4,499 cr, cuts OFS to 175.1 mn shares
• From Ayurveda to AIIMS, PM Modi launches Rs 12,850 cr healthcare projects
• China power demand growing faster than expected: Industry association
• Economic Times
• TCS signs $245 million 15-year deal to transform Ireland’s pension system
• Robust prices, resilient domestic demand to drive performance of domestic base metal Cos in FY'25
• Transformers and Rectifiers (India) gets orders worth Rs 270 cr from Adani Energy, 3 others
• Finova Capital secures Rs 1,135 crore from Avataar Venture Partners, Sofina, Madison India others
• Amazon Pay India reports Rs 2,286 crore revenue for FY24, cuts losses by 39%
• Govt asks manufacturers to cut price of 3 anti-cancer drugs
• Trai extends deadline on traceability mandate to December 1
• Cashfree Payments receives prepaid payment instrument licence from RBI
• Realty developer Anant Raj to raise up to Rs 2,000 crore via QIP
• Lockton gets IRDAI nod to buy Arihant Insurance Broking
• Robust prices, resilient domestic demand to drive performance of domestic base metal Cos in FY'25
• Tata Power Renewable Energy, IndusInd Bank partner to provide finance for solar projects
• Mint
• Maruti Suzuki Q2 Results: Net profit at ₹3,069 crore, revenue flat YoY
• Canara Bank Q2 result: Net profit rises 11% YoY to ₹4,014 crore; NPA improves
• Syrma SGS Technologies targets $1 billion revenue by FY27
• Govt to impose penalties on GE Electric over delay in delivery of fighter jet en
• HDFC, Kotak among banks facing surge in default from over-leveraged debtors
• NSE cash volumes sink to six-month low ahead of Sebi’s F&O curbs
• Coal India banks on upcoming power plants to accelerate growth
• Jio Financial Services get RBI nod for online payment aggregator business
• Apple's iPhone exports from India soar amid push to reduce dependence on China
• Small-business lender Finova Capital raises $135 mn to expand loan book
• JSW Steel ties up with South Korea's POSCO on steel plant, EV batteries and more
• Razorpay's payment gateway business clocks ₹2,068 crore in revenue for FY24
• MS on Adani Ports
• OW, TP Raised to Rs 1648
• Port revenue & EBITDA grew 10% (MSe: 11%) and 13% (MSe: 11%), respectively.
• Logistics revenue and EBITDA grew +22% (MSe: -5%) and 7% (MSe: -37%).
• Net debt/EBITDA improved to 2x (F24: 2.3x)
• B/S & cash flows remain strong
• CLSA on Adani Ports
• O-P, TP Rs 1764
• 1HFY25: Mundra traffic +18% vs all ports +9% YoY
• 2QFY25: diversified mix helps; resurgence of Mundra, rec PAT +11% YoY
• Many strategic moves; delivered on deleveraging
• ADSEZ: Ebitda likely to be at higher-end of FY25 guidance
• UBS on Adani Ports
• Neutral, TP Rs 1700
• Sequentially flattish results
• Colombo/Vizhinjam can be key surprises
• Container volumes driving growth, Gangavaram still below trend in 2QFY25
• Flattish coal volumes, logistics growth
• CLSA on Maruti
• O-P, TP cut to Rs 12631
• 2Q Ebitda margin (11.9%) below est., led by an increase in discounting and higher commodity costs.
• Ebitda margin declined by 104bps YoY/80bps QoQ, led by gross margin declining by 128bps YoY/172bps QoQ
• Lower FY25-27 volume est by c.4-9%
• Nomura on Maruti
• Neutral, TP Rs 12455
• Concerns about weaker demand remain 2Q margins miss
• High discounts may continue in near term; improving CNG mix & rising ASPs are positives
• Management commentary: Demand – expects festive season sales of 300k+14% y-y
• HSBC on Maruti
• Hold, TP Rs 14000
• 2Q margins weak due to weak demand environment and high discounting; 3Q is likely to be worse
• However, expect business to normalize in 2025/FY26 due to improvement in demand & new product launches
• Val look reasonable; hybrid tax cut upside risk
• HSBC on SBI Cards
• Reduce, TP cut to Rs 580
• 2Q: Muted new card issuance, low share of earnings assets, NIM contraction, high credit costs impacted earnings
• With no clear view/guidance on recovery in asset quality, timing of an earnings recovery remains difficult to predict
• Jefferies on SBI Cards
• Hold, TP cut to Rs 760
• 2Q PAT of Rs4bn (-32 YoY) well below Rs6bn est due to higher opex
• Receivables growth was healthy at 23%YoY.
• NIM (-32bps QoQ) disappointed, but should inch up in 2H due to easing short term rates
• Cut FY25-27E EPS by 4-8%
• GS on SBI Cards
• Buy, TP Rs 960
• Downcycle nearing bottom per mgmt.; Improving earnings visibility to support re-rating
• Reported credit costs of 9.1%, better than GSe of 9.4%
• See PPOP-ROA bottoming
• Nomura on Honeywell Auto
• Buy, TP Rs 60800
• Q2 Rev of Rs 10.2bn, down 7% y-y (-8% vs. est)
• EBITDA at Rs 1.3bn, down 7% y-y (-20% vs. est)
• EBITDA margin at 12.6%, flat y-y (vs est of 14.5%)
• Believe margin disappointment largely due to inferior mix
• Expect margin recovery in 2HFY25
• Nomura on Marico
• Buy, TP Rs 760
• 2Q: In-line with pre-quarterly update; demand improves
• No impact from weakness in urban as it caters to premium and mass; sharp price hikes improve growth outlook
• Nomura on Bharti Airtel
• Buy, TP raised to Rs 1850
• Delivered another strong performance for India business, Africa core performance remains healthy
• Net debt increased modestly to INR1.4tn; capex moderated to INR77bn
• Bharti best-placed to benefit from rising ARPUs
• Business Standard
• Dhanteras festivities spark Rs 60,000 cr sales; China faces Rs 1.25 tn loss
• BP profit slumps to $2.3 bn on weak refining margins, oil trading results
• JSW Energy emerges as top bidder for bankrupt KSK Mahanadi Power Company
• McDonald's global sales fall more than expected on muted demand: Report
• Zinc raises $25.5 million in seed funding from Nexus Venture Partners
• RBI's domestically-held gold reserves jump 510.46 MT by end-September
• Coal, Power ministries plan winter coordination to prevent power shortages
• Indonesia plans to import 1 million tonnes of rice from India in 2025
• NFRA likely to notify revised audit standards soon amid ICAI concerns
• Navigating the Opening Bell with Sbi Securities: 6 Key Technical and Derivative Insights
• 1. Global Market :
• On Tuesday, U.S. markets closed with mixed performances across the major indices. The tech-heavy Nasdaq climbed by 0.96 percent, and the S&P 500 ended higher by 0.20 percent. While, Dow fell by 0.40 percent.
• Going ahead, for S&P 500, the zone of 5770-5750 will act as immediate support. While, on the upside, the zone of 5860-5880 will act as a crucial hurdle for the index.
• #BrentOil has continued its southward journey and ended the session at $70.99 level with a loss of 0.85 percent. Going ahead, it is likely to continue its southward journey and test the level of $68.50 in the short term.
• The U.S. Dollar Index (#DXY) is consolidating in a narrow range of 104.63-103.93 levels since the last five trading sessions. Going ahead, any sustainable move above the level of 104.70 will lead to resume its northward journey.
• 2. Nifty View:
• On Tuesday, the benchmark index Nifty witnessed a selling pressure in the first half of the trading session. However, it took support near the prior day’s low and thereafter witnessed a smart rebound. It ended the session at 24466 level with a gain of 0.52 percent.
• On a daily scale, it has formed a bullish candle with a lower shadow. Currently, the index is oscillating near its 100-day EMA level. Most noteworthy, the daily RSI has given a bullish crossover, which indicates a limited downside for now.
• Talking about levels, the zone of 24500-24530 will act as an immediate hurdle for the index. Any sustainable move above the level of 24530 will lead to sharp upside rally upto the level of 24650, followed by 24740 in the short term.
• While, on the downside, the zone of 24330-24300 will act as immediate support for the index.
• On the #derivative front, October #futures surged by 0.53 percent, and the cumulative #OpenInterest of current, next, and far series has also surged by 1.46 percent. This indicates an overall long build-up.
• Among the constituents of the #Nifty index, 15 stocks have witnessed a long build-up, and 14 stocks have witnessed a short covering rally. While 15 stocks have witnessed a short build-up and 6 stocks have witnessed a long unwinding.
• The 24500 strike has significant call open interest, followed by the 24600 strike. On the put side, 24400 has a substantial open interest, followed by a 24300 strike.
• For the October monthly series, OI PCR is at 0.92, and max pain is at 24500 strike.
• 3. Bank Nifty View :
• On Tuesday, Bank Nifty showed significant outperformance compared to frontline indices, closing above the 52,300 mark with a gain of over 2%. A large bullish candle has formed on the daily chart, and the Bank Nifty-to-Nifty ratio chart has reached a 74-day high, underscoring this strong outperformance.
• During this rally, the major contribution was seen from ICICI Bank and HDFC Bank. Most noteworthy, the index has surged above its 20 and 50-day EMA levels. The daily RSI has given a bullish crossover, and it is on a rising trajectory, which is a bullish sign.
• These technical factors clearly indicate that the index is likely to outperform in the short term. Talking about levels, the zone of 52550-52600 will act as an immediate hurdle for the index. Any sustainable move above the level of 52600 will lead to sharp upside rally upto the level of 53000, followed by 53400 in the short term.
• While, on the downside, the support has shifted higher in the zone of 51800-51700 level.
• On the #derivative front, October #futures ended higher by 1.88 percent, and the cumulative #OpenInterest of current, next, and far series has dipped by 7.31 percent
• The 52500 strike has significant call open interest, followed by the 53000 strike. On the put side, 52000 has a substantial open interest, followed by a 51800 strike.
• For the October monthly series, OI PCR is at 1.37, and max pain is at 52000 strike.
• 4. Key Market Indicators:
• The volatility index #INDIAVIX ended at 14.51 levels with a gain of 1.57 percent. Going ahead, the zone of 14.80-15 will act as an immediate hurdle for the index. Any sustainable move above the level of 15 will lead to a sharp upside rally upto the level of 15.70 in the short term.
• The #Advance/Decline ratio was largely tilted in favor of advancers for the second consecutive trading session.
• 5. Key Sectors:
• For the second consecutive trading session, the Nifty #PSU Bank index experienced strong bullish momentum. Along with this strong upside rally, the index has surged above its 20, 50, and 200-day EMA level. The daily RSI is about to surge above 60 mark, and it is in rising mode, which is a bullish sign. Hence, we believe it is likely to outperform the frontline indices in the next couple of trading sessions.
• Apart from this, Nifty Private #Bank and Nifty Financial Services are also likely to continue their outperformance in the short term.
• 6. FII/DII Data:
• #FIIs sold to the tune of 548.69 cr. while #DIIs bought to the tune of 730.13 cr.
• FIIs' #Long-short ratio for index futures is at 40.05 as on a net basis, they bought 2391 index futures.
• On the stock #futures front, FIIs have bought to the tune of 22238 contracts, while on the #Options Front, FIIs bought 2887 call contracts and bought 11320 Put Option contracts