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Think Ahead with EZWealth – 27 Oct 2021
[/vc_column_text][vc_column_text]Indian equity markets traded precisely on the expected lines on Tuesday. Following the five-day corrective action, the markets showed a technical pullback and ended the day with gains. After opening on a positive note, Nifty50 grew stronger in the morning trade. However, it pared its gains by afternoon to trade flat once again. However, the second half of the session saw a strong recovery from the lower levels. Nifty50 pulled back over 175-odd points from the low of the day as the markets showed great strength, particularly in the last hour of the session. The headline index ended with a net gain of 143 points (+0.79 per cent).
The weekly options data shows bullish indications. The 18200 Put was one of the most active strikes as it saw massive writing and addition of Open Interest. This means that market participants do not expect Nifty50 to slip below this level by expiry. On the other hand, while supporting this theory, a large number of Call unwinding also happened at all strikes between 18000 and 18400 levels.
Volatility dipped as India Vix slipped by 4.87 per cent to 16.7525. The levels of 18325 and 18400 are likely to act as resistance levels while the supports come in at 18150 and 18080 levels. The trading range is likely to stay defined and volatility may stay at lower levels.
Wall Street opened in record territory on Tuesday as a host of tech firms were set to announce their results. The S&P 500 and Dow both powered to new intra-day highs as the opening bell rang after closing at record levels on Monday.[/vc_column_text][vc_single_image image=”68095″ img_size=”large” alignment=”center” css=”.vc_custom_1635305595681{margin-top: 9px !important;margin-right: 9px !important;margin-bottom: 9px !important;margin-left: 9px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;border-left-color: #000000 !important;border-left-style: solid !important;border-right-color: #000000 !important;border-right-style: solid !important;border-top-color: #000000 !important;border-top-style: solid !important;border-bottom-color: #000000 !important;border-bottom-style: solid !important;border-radius: 1px !important;}”][vc_single_image image=”68090″ img_size=”large” alignment=”center” css=”.vc_custom_1635305612297{margin-top: 9px !important;margin-right: 9px !important;margin-bottom: 9px !important;margin-left: 9px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;border-left-color: #000000 !important;border-left-style: solid !important;border-right-color: #000000 !important;border-right-style: solid !important;border-top-color: #000000 !important;border-top-style: solid !important;border-bottom-color: #000000 !important;border-bottom-style: solid !important;border-radius: 1px !important;}”][vc_column_text css=”.vc_custom_1635305518293{margin-top: 9px !important;margin-right: 9px !important;margin-bottom: 9px !important;margin-left: 9px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;background-color: #d6d6d6 !important;border-left-color: #000000 !important;border-left-style: solid !important;border-right-color: #000000 !important;border-right-style: solid !important;border-top-color: #000000 !important;border-top-style: solid !important;border-bottom-color: #000000 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]
Stories in the news today
[/vc_column_text][vc_column_text]Biz sentiment hit two-year high in Q2 as Covid second wave eased off: NCAER
As the second wave of Covid-19 eased off, business sentiment in the country hit an over two-year high in the September quarter (Q2) of the current financial year (FY22), according to a survey by the National Council of Applied Economic Research (NCAER).
The NCAER Business Confidence Index (BCI) increased by about 80 per cent to 117.4 in Q2FY22 from 65 in the year-ago quarter, while it jumped about 90 per cent on a quarter-on-quarter basis. The index was also up 13.8 per cent over the pre-pandemic period of the second quarter of 2019-20, when it stood at 103.1. However, companies were apprehensive about the rising costs of raw materials.
The index showed improvement — sequentially, year-on-year, as well as compared with the pre-Covid period — in all the four parameters that it is based on: Whether the overall economic conditions will be better in the next six months, financial conditions of the firms will improve in the next six months, present investment climate is positive, and present capacity utilisation is close to or above optimum level.
Marine exports from India risk damage as China imposes non-tariff barriers
Outbound shipments of marine products from the country are facing non-tariff barriers in China, causing concerns for Indian exporters, people aware of the matter said. At a time when exporters are battling twin challenges of container shortage and high freight costs, Covid-19 testing on the imported seafood consignments at the Customs and local authority-level in China has exacerbated the uncertainty over the last two months. Containers are being held up at Chinese ports that has resulted in exporters incurring heavy demurrage charges. In addition, Chinese importers not making payments towards cleared consignments is also a major issue, they said.
“China has introduced an examination system, which is not there anywhere in the world. Besides, time to test the products has also increased substantially, resulting in delay in clearance of consignments. This has also resulted in damage to the products,” a source said. While Chinese authorities have expressed concern after detecting ‘dead nucleic acid remnants’ on the outer packing material of seafood products, Indian exporters and government officials said that the seafood industry is strictly following all Covid-related protocols.
Chip shortage: Crisil, Ind-Ra cut growth forecast for passenger car market
The research arms of Crisil Ratings and India Ratings have pared their growth forecasts of India’s passenger vehicle market by 4 per cent and 3 per cent, respectively, in the wake of the deepening shortage of the semiconductors, which in turn has led to the production loss at the auto makers. The continuing surge in chip demand globally and time lag to set up new capacities could keep up the pressure on supplies, they said. The normalisation can only be envisaged by the end of the second half next calendar year. While Crisil expects the PV market to advance 11-13 per cent year-on-year by end of FY22 against the earlier forecast of 14-16 per cent, according to India Ratings the growth in the segment is expected to moderate to15 percent 18 per cent y-o-y during FY22 from 18 per cent to 22 per cent.
Crisil has cut its forecast on the basis of its analysis of India’s top three PV makers which command a cumulative 71 per cent share. Semiconductors, also called chips, are crucial components of vehicles that facilitate a wide array of features such as navigation, infotainment and traction control. Premium cars with advanced safety and entertainment features need more chips compared with the base models. As a result of the mismatch in demand and supply waiting period for some models has increased from 2-3 months to 6-9 months. Pandemic-induced uncertainties led to sharp swings in orders by automakers, which account for 10-12 per cent of global chip demand, said Crisil in a report released on Tuesday.
Paytm raises IPO size to Rs 18,300 cr; Ant to offload shares worth Rs 5K cr
Digital financial services platform Paytm has raised its initial public offering (IPO) size to Rs 18,300 crore from the earlier Rs 16,600 crore, said sources in the know. Roughly half of the offer for sale (OFS) in Paytm’s IPO, which recently got approval from the Securities and Exchange Board of India (Sebi), will be done by Chinese investor Ant Financial.
The OFS size will now inch up to Rs 10,000 crore, which means that Ant Financial will offload shares worth Rs 5,000 crore, sources confirmed. In the draft red herring prospectus filed by the company, the OFS size was Rs 8300 crore, and roughly the same amount was being raised via a fresh issue of shares.
Fuel prices hiked again, reach record levels
After two days of pause, petrol prices increased by 31 to 35 paise per litre while diesel prices surged by 33 to 37 paise per litre across the country on October 27, according to a price notification of state-owned fuel retailers. The latest increase that follows the unrelenting hike in international oil prices has pushed pump rates across the country to their highest-ever levels.
With the latest revision of 35 paise a litre, the price of petrol in the national capital rose to its fresh high of Rs 107.94 a litre. Diesel price also increased by 35 paise and took the fuel rate to Rs 96.67 per litre in the financial capital. In Mumbai, a litre of petrol is retailed at Rs 113.80, up by 34 paise. The financial hub, on May 29, became the first metro in the country where petrol was being sold for more than Rs 100 per litre. Diesel price also increased by 37 paise and sold at Rs 104.75 per litre in the city.[/vc_column_text][vc_column_text css=”.vc_custom_1635305530540{margin-top: 9px !important;margin-right: 9px !important;margin-bottom: 9px !important;margin-left: 9px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;background-color: #d6d6d6 !important;border-left-color: #000000 !important;border-left-style: solid !important;border-right-color: #000000 !important;border-right-style: solid !important;border-top-color: #000000 !important;border-top-style: solid !important;border-bottom-color: #000000 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]
Stocks in the news today
[/vc_column_text][vc_column_text]Results on October 27: Larsen & Toubro, ITC, IndusInd Bank, Bajaj Auto, Titan Company, Lupin, Maruti Suzuki India, Punjab National Bank, SBI Life Insurance Company, Zee Entertainment Enterprises, Aarti Drugs, Adani Enterprises, Adani Ports and Special Economic Zone, Aegis Logistics, Apollo Tricoat Tubes, Arvind, Asahi India Glass, Astec Lifesciences, Balaji Amines, Cummins India, Dalmia Bharat, Deepak Nitrite, Exxaro Tiles, Geojit Financial Services, Greenpanel Industries, Happiest Minds Technologies, IIFL Finance, IIFL Wealth Management, India Grid Trust, Indian Overseas Bank, JK Paper, KEC International, KPR Mill, Lakshmi Machine Works, Mahindra Logistics, Phillips Carbon Black, Poonawalla Fincorp, PSP Projects, Ramco Systems, Raymond, Reliance Power, Shriram City Union Finance, SKF India, Sona BLW Precision Forgings, Tata Chemicals, Tube Investments of India, Torrent Power, TTK Prestige, United Breweries, United Spirits, and Welspun India will release September quarter earnings on October 27.
Cipla: The company reported higher profit at Rs 712 crore in Q2FY22 against Rs 661.8 crore in Q2FY21, revenue rose to Rs 5,519.8 crore from Rs 5,038.3 crore YoY.
Torrent Pharma: The company reported higher profit at Rs 316 crore in Q2FY22 against Rs 310 crore in Q2FY21, revenue increased to Rs 2,137 crore from Rs 2,017 crore YoY.
Axis Bank: The bank recorded sharply higher profit at Rs 3,133.3 crore in Q2FY22 against Rs 1,682.7 crore in Q2FY21, net interest income rose to Rs 7,900.3 crore from Rs 7,326.1 crore YoY.
Nippon Life India Asset Management: The company’s profit grew by 47 percent to Rs 214 crore in Q2FY22 YoY and assets under management market share grew by 7.33 percent YoY. Operating profit at Rs 186 crore grew by 46 percent.
Dr Lal PathLabs: The company reported higher profit at Rs 95 crore in Q2FY22 against Rs 85.3 crore in Q2FY21, revenue jumped to Rs 498.4 crore from Rs 431.9 crore YoY.
Ambuja Cements: The company posted slightly higher standalone profit at Rs 441.2 crore in Q2FY22 against Rs 440.5 crore in Q2FY21, revenue rose to Rs 3,237.3 crore from Rs 2,852.5 crore YoY.
Bajaj Finance: The company reported sharply higher profit at Rs 1,481 crore in Q2FY22 against Rs 964.9 crore in Q2FY21, revenue increased to Rs 5,335 crore from Rs 4,165 crore YoY.
Entertainment Network (India): The company reported consolidated loss of Rs 10.8 crore in Q2FY22 against loss of Rs 24.75 crore in Q2FY21, revenue increased to Rs 72.74 crore from Rs 48.37 crore YoY.
Shemaroo Entertainment: The company reported consolidated profit at Rs 2.72 crore in Q2FY22 against loss of Rs 9.16 crore in Q2FY21, revenue jumped to Rs 123.13 crore from Rs 59.26 crore YoY.
WABCO India: The company reported lower profit at Rs 32.25 crore in Q2FY22 against Rs 35.10 crore in Q2FY21, revenue jumped to Rs 616.53 crore from Rs 418.71 crore YoY.
Meghmani Organics: The company reported slightly lower profit at Rs 65.25 crore in Q2FY22 against Rs 65.55 crore in Q2FY21, revenue rose to Rs 548.22 crore from Rs 426.70 crore YoY.
Birlasoft: The company reported sharply higher consolidated profit at Rs 10.31 crore in Q2FY22 against Rs 6.91 crore in Q2FY21, revenue jumped to Rs 101.16 crore from Rs 85.74 crore YoY.
Power Grid: The state-run utility firm said the high voltage direct current (HVDC) power transmission links connecting three states of Chhattisgarh, Tamil Nadu and Kerala have started commercial operation.
Jindal Stainless: The steel maker posted a five-fold jump in consolidated net profit at Rs 411.62 crore for the September quarter, mainly on account of higher income. The company had clocked a net profit of Rs 80.64 crore during the July-September period of FY 2021
PVR: The country’s largest film exhibitor announced its foray into the customised cleaning and disinfecting services business under its newly-launched vertical V-Pristine.
Canara Bank: The state-run lender reported a three-fold jump in its standalone profit-after-tax at Rs 1,333 crore in the quarter ended September, aided by lower bad loan provisioning and rise in non-interest income and operating profit. The lender had reported a profit-after-tax of Rs 444 crore in the year-ago quarter.
IRB Infrastructure Developers: The road and highway construction reported a consolidated net profit of Rs 42 crore for the second quarter ended on September 30. The company had posted a consolidated loss of Rs 20 crore in the corresponding quarter of the previous fiscal.
Sanofi India: The drugmaker reported a net profit of Rs 529.8 crore for the third quarter ended September 30, aided by Rs 489.2 crore gain from the sale of its nutraceuticals business. The company had reported a net profit of Rs 132.9 crore in the July-September quarter of the previous fiscal.
ABB India: The engineering services company posted over 40 per cent jump in its net profit at Rs 120 crore for the September quarter, mainly on the back of higher revenues. The net profit was Rs 85 crore in the quarter ended September 30, 2020.
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