Actionable: Buy Indian Hotel, Infosys, Hindalco.

Insight Online News

From Advisory Desk : Vikash Sahay

4th October 2022
 
Market Outlook: A big rebound seen on Wall street to start the month, with that momentum expected to flow through to the indian markets today. Treasury yields has fallen following a weaker than expected ISM data. Softer US data cools off rate hike expectations. Dollar index has corrected from recent highs which is also supporting the equity markets. Oil prices slightly trading positive after a 5% rally in overnight. SGX Nifty is indicating a gap up opening for indian markets largely inline with Asian markets. From past few sessions, markets are continue to witness wilder swings with up one day and down the next. We expect the short covering if markets sustain the gains as FII’s still holding huge short positions in index futures.

Actionable: Buy Indian Hotel, Infosys, Hindalco.

Tactical Idea: Buy Ambuja cements on dips of around 485-495 levels.

INITIATING COVERAGE: MAHINDRA LIFESPACE DEVELOPERS | Turning the tide with renewed vigor (MLIFE IN, Mkt Cap USD0.9b, CMP INR472, TP INR550, 17% Upside, Buy)
 
Global market:

DOW:   +765
SGX NIFTY:   +230   (prev. close 16868)

NIFTY 50 : 16887
Sensex : 56788
 
Institution:
FII:                +  591  Cr
DII:                –   423  Cr

NSE:
Advances:  1356 / Declines:  2194

Currency:
Dollar: $ 81.87
Dollar Index: 111.66
 
Commodity:
Gold: $1705  per ounce
Crude: $89.30  per barrel
 
Bonds:
10 year US bond rate: 3.64
10 year Indian Bond rate: 7.47

Derivative:
PCR: 0.90
VIX:  21.36

Updates:

Dilip Buildcon – Company through its joint venture RBL-DBL has received a letter of acceptance (LOA) for its Surat Metro Rail Project in Gujarat. The order is worth Rs.1,061 crore.
 
KEC International – Company has secured orders worth Rs.1,407 crore across segments. Its year-to-date order intake now stands at Rs.8,400 crore.
 
Q2 Business Updates
HDFC – Loans Assigned In Q2 (All to HDFC Bank) up YoY 30% to 9145Cr. Loans sold in the preceding 12 months is up by 26.8% to Rs.34,513cr. Gross income from dividend in Q2 is up by 16% YoY to Rs.1,360cr.

DMART – Standalone Revenue from operations is up by 35.8% YoY at 10385cr, nearly double compared to the pre-pandemic period of Q2 FY20. The total number of D-Mart stores as of Q2 stood at 302, added 8 stores in Q2 and 106 stores added in last 11 quarters. Revenue per store at Rs.34.8cr (+10.2% YoY; +2.7% QoQ).

M&M Financial Services- Disbursement Approx 4080Cr delivering a 110% YoY growth. The Collection Efficiency is at 98% Vs 96% MoM.
 
Marico – India business posted low single-digit volume growth with the 3-year CAGR in high single digits. The International business maintained its strong run, delivering double-digit constant currency growth.

IndusInd Bank – Net advances grew 18% YoY and 5% QoQ. Deposits grew 15% YoY and 4% QoQ. CASA ratio stood at 42.4% vs 43.2% previous quarter.

Vedanta – Company’s alumina production at Lanjigarh refinery decreased by 11% YoY to 4.54 lakh tonnes due to scheduled maintenance, and at Zinc India, reported highest-ever second quarter mined metal production at 2.55 lakh tonnes, up 3% YoY driven by better grades and improved mill recoveries. In the steel segment, its total saleable production increased by 11% YoY to 3.25 lakh tonnes on account of completion of debottlenecking activities in Q1FY23.

Securities in Ban: Nil.
 
Derivative View: Max Put OI is at 17000 and 16500 and max Call OI is at 17000 and 17500. Option data suggests an immediate trading range in between 16700 to 17300.

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