Actionable: Buy Infosys, Renuka Sugars, KPIT Tech, Tata Chemical.

Insight Online News

From Advisory Desk : Vikash Sahay

11th October 2022
 
Market Outlook: On the Wall street, the prospects of tighter monetary policy pushed interest rate sensitive stocks lower. NASDAQ closed its lowest level since July 2020. Dollar index and treasury yields rose higher while crude oil prices corrected by 2% on demand worries. SGX Nifty is indicating a slightly weak opening for Indian markets largely inline with US futures, while most of the Asian markets were trading lower by 2-3%. Yesterday, Indian markets recovered smartly from a big gap down and closed slightly lower. Despite of global weakness, india markets are holding up well and further strong TCS results and infosys buyback news will provide support to the markets in near term.

Actionable: Buy Infosys, Renuka Sugars, KPIT Tech, Tata Chemical.

Tactical Ideas: Buy Ambuja Cements, Zee entertainment and Patanjali in market correction for few weeks.
 
Global market:

DOW:   -93
SGX NIFTY:   +5   (prev. close 17228)

NIFTY 50 : 17241
Sensex : 57991
 
Institution:
FII:                –  2139  Cr
DII:               +  2137  Cr

NSE:
Advances:  1360 / Declines:  2207

Currency:
Dollar: $ 82.32
Dollar Index: 113.05
 
Commodity:
Gold: $1675  per ounce
Crude: $96.15  per barrel
 
Bonds:
10 year US bond rate: 3.97
10 year Indian Bond rate: 7.48

Derivative:
PCR: 0.98
VIX:  19.62

Today’s Results Announcement: Delta Corp, GM Breweries.

Updates:
 
Infosys – Company will consider a proposal for a share buyback on October 13. As per reports buyback will be valued between Rs.8,700 crore and Rs.9,500 crore.
 
India Cement – Company has entered into an agreement with JSW Cement to sell its unit in Madhya Pradesh for nearly Rs.477 crores. Under the agreement, India Cements has received Rs.374 crores from and the balance amount will be released by year end. Company has a gross debt of ₹2,900 crore, plans to reduce debt by ₹550 crore this year.
 
TCS Earnings Q2FY23 – Revenue at 55309cr vs 52758cr up 4.8%, PAT at 10431cr vs 9478cr, up 10.1%. LTM attrition at 21.5% vs 19.7% QOQ. EBIT margin at 24% vs 23.1% QOQ. Net employee addition at 9480. TCS also declared a second interim dividend of ₹8 per share.
 
Adani Group – Adani Group is in advance talks to buy the cement businesses of debt-laden Jaypee Group for about 5,000 crore. The deal will help consolidate the Adani Group’s sudden dominance in the cement sector.

Panacea Biotech – Company has bagged a long-term supply order worth USD 127.3 million (over ₹1,040 crore) from UNICEF and Pan American Health Organisation for the supply of its pentavalent vaccine Easyfive-TT.

Securities in BAN : IBULHSGFIN, INDIACEM.
 
Derivative View: Immediate Max Put OI is at 17000 and 16500 and max Call OI is at 18000 and 17500. Option data suggests an immediate trading range in between 17000 to 17500.

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