The key equity barometers ended with decent gains after a volatile session on Tuesday. The Nifty ended tad below the 18,150 mark. IT, metals and pharma shares were in demand. Positive global cues and encouraging domestic economic data supported buying.
As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 374.76 points or 0.62% to 61,121.35. The Nifty 50 index gained 133.20 points or 0.74% to 18,145.40.
In the broader market, the S&P BSE Mid-Cap index rose 1.04% while the S&P BSE Small-Cap index gained 0.26%.
The market breadth was positive. On the BSE, 1,836 shares rose and 1,611 shares fell. A total of 135 shares were unchanged.
The US Federal Reserve, which begins its two-day meeting Tuesday, is reportedly expected to deliver a fourth straight 75-basis-point rate hike on Wednesday in its attempt to tame inflation. Investors will also focus on the communication of the outlook.
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Back home, the Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) will hold an additional meeting on Thursday, 3 November 2022.
The MPC last met on 28-30 September 2022. It was slated to meet for the last time this calendar year on 5-7 December 2022.
Economy:
India's gross GST revenue collected in the month of October 2022 is Rs 1,51,718 crore of which CGST is Rs 26,039 crore, SGST is Rs 33,396 crore, IGST is Rs 81,778 crore (including Rs 37,297 crore collected on import of goods) and Cess is Rs 10,505 crore (including Rs 825 crore collected on import of goods), which is second highest till date. The revenue for October 2022 is second highest monthly collection, next only to the collection in April 2022 and it is for the second time the gross GST collection has crossed Rs. 1.50 lakh crore mark.
Meanwhile, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 55.3 in October, up from 55.1 in September. The latest figure was above its long-run average (53.7), indicating a stronger improvement in the health of the sector. The upward movement in the headline figure largely reflected stronger increases in employment and stocks of purchases.
Primary Market:
The initial public offer (IPO) of DCX System received bids for 9.12 crore shares as against 1.45 crore shares on offer, according to stock exchange data 15:33 IST on, Tuesday (1 November 2022). The issue was subscribed 6.29 times.
The issue opened for bidding on Monday (31 October 2022) and it will close on Wednesday (2 November 2022). The price band of the IPO is fixed at Rs 197 to 207 per share. An investor can bid for a minimum of 72 Equity Shares and in multiples thereof.
October 2022 Auto sales:
Maruti Suzuki India declined 0.94%. The company said that it had sold a total of 167,520 units in October 2022, which is higher by 21% as compared with 138,335 units sold in October 2021.
Ashok Leyland fell 2.28%. The company recorded 34% rise in total vehicle sales to 14,863 units in October 2022 from 11,079 units sold in October 2021. .
Bajaj Auto rose 1.85%. The two-wheeler maker's total sales declined 10% to 3,95,238 units in October 2022 compared with 4,39,615 units sold in October 2021.
Mahindra & Mahindra (M&M) added 0.52%. M&M said that its overall auto sales for the month of October 2022 stood at 61,114 vehicles, up 46% from 41,908 vehicles sold in October 2021.
M&M's Farm Equipment Sector (FES) sold 51,994 tractors in October 2022 as against 47,017 tractors for the same period last year, registering a growth of 11% on YoY basis.
Tata Motors rose 2.13%. The company's sales in the domestic & international market for October 2022 stood at 78,335 vehicles, up by 15% as compared to 67,829 units sold during October 2021.
Escorts Kubota lost 1.61%. The company's total tractor sales rose 7.2% YoY to 14,492 units sold in October 2022 from 13,514 units sold in October 2021. The Construction Equipment Segment in October 2022 sold 384 machines as against 462 machines sold in October 2021, recording de-growth of 16.9% on a year-on-year basis.
Eicher Motors slipped 1.15%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV) sold 6,038 units of commercial vehicles (CV) in October 2022, registering a rise of 4% year on year from 5,805 units sold in October 2021.
Stocks in Spotlight:
Bharti Airtel shed 0.02%. The telecom major's consolidated net profit surged 89.17% to Rs 2,145.2 crore on 21.89% jump in revenue from operations to Rs 3,4526.8 crore in Q2 FY23 over Q2 FY22. India revenues for Q2 FY23 at Rs 24,333 crore, increased by 22.3% YoY.
Average revenue per user (ARPU) jumped 24.18% to Rs 190 in Q2 FY23 as compared to Rs 153 posted in Q2 FY22 on the back of company's continued focus on quality customers, feature phone to smartphone upgradation and data monetization. Mobile revenues grew by 24.8% YoY on account of improved realisation as well as strong 4G customer additions during the year.
Larsen & Toubro (L&T) slipped 0.10%. L&T posted a consolidated net profit of Rs 2,229 crore in Q2 FY23, registering a growth of 23% over the corresponding quarter of the previous year. The conglomerate recorded revenues of Rs 42,763 crore for the quarter ended 30 September 2022, recording a YoY growth of 23%. The consolidated order book of the group was at Rs 372,381 crore as on 30 September 2022, with international orders having a share of 28%.
In its outlook, L&T said that the company's Projects & Hi-Tech Manufacturing businesses are rightly positioned to leverage the India and Middle East capex opportunity and with tech enabled skill sets and offerings, the IT&TS business will continue to pursue growth in the global services domain.
Tata Steel declined 0.30%. The steel maker reported 90% drop in consolidated net profit to Rs 1,297 crore in Q2 FY23 from Rs 12,548 crore in Q2 FY22. Total revenue from operations fell marginally, by 1%, to Rs 59,878 crore in the second quarter as compared with the same period last year.
While the company's crude steel production declined by 3% to 7.56 million tons, deliveries contracted by 2% to 7.23 million tons in Q2 FY23 over Q2 FY22. In India, Deliveries were higher by 21% QoQ and 7% YoY primarily driven by record domestic deliveries. In Europe, however, deliveries were lower on QoQ basis, in part due to seasonal factors and subdued demand in the region.
Tata Steel said that the 6 MTPA Pellet plant will be commissioned in Q3 FY23 and will be followed by the Cold Roll Mill complex in phases. The 5 MTPA expansion at Kalinganagar is on track for commissioning by end FY24. Neelachal Ispat Nigam's blast furnace was restarted in October, within 3 months of completion of the acquisition and is being ramped up.
Sun Pharmaceutical Industries gained 1.58%. The pharma major's consolidated net profit rose 10.51% to Rs 2,262.22 crore on 13.11% increase in revenue from operations to Rs 10,809.19 crore in Q2 FY23 over Q2 FY22.
The R&D investments stood at Rs 570.98 crore in Q2 FY23 as compared to Rs 536.41 crore posted in Q2 FY22, registering a growth of 6.44%. EBITDA was at Rs 2,956.5 crore (including other operating revenues), up 12.4% YoY. EBITDA margin for Q2FY23 stood at at 27% as against 27.3% reported in corresponding quarter previous year.
Axis Bank slipped 3.83%. On the BSE, 428.15 lakh shares were traded in the counter so far compared with average daily volumes of 4.02 lakh shares in the past two weeks.
As per media reports, US-based private investment firm Bain Capital was to sell stake in Axis Bank via block deals today, 1 November 2022. The PE firm is looking to sell 1.24% stake for shares worth $410 million or Rs 3,350 crore in the private lender.
Castrol India fell 3.26%. The lubricants maker reported a net profit of Rs 187 crore in Q3 2022 as against a net profit of Rs 186 crore in Q3 2021. For the third quarter (Q3) from July to September 2022, the company registered revenue from operations of Rs 1,121 crore, achieving a growth of 4% compared to Rs 1,073 crore in Q3 2021.
Varun Beverages jumped 5.22%. The company reported 53.3% rise in consolidated net profit to Rs 395.5 crore in Q3 CY22 from Rs 257.9 crore in Q3 CY21. Net revenue from operations during the quarter grew by 32.5% YoY to Rs 3,176.6 crore, on account of robust volume growth over last year and higher realization on a consolidated basis.
FSN E-Commerce Ventures (Nykaa) rose 1.91%. The company reported a consolidated net profit of Rs 4.11 crore in Q2 FY23, steeply higher than Rs 1.17 crore posted in Q2 FY22. Revenue from operations jumped 39.04% to Rs 1230.83 crore in quarter ended 30 September 2022 from Rs 885.26 crore recorded in the corresponding quarter previous year.
Balrampur Chini Mills rose 4.75%. The company said its board will consider a share buyback on Wednesday, 9 November 2022.
Global Markets:
Shares in Europe and Asia advanced across the board on Tuesday despite mild losses from Wall Street overnight as investors turned their focus to the Federal Reserve's policy meeting this week for hints on what comes next.
The Caixin manufacturing Purchasing Managers' Index for October showed that factory activity contracted for the third month in a row. The reading came in at 49.2. In September, the manufacturing PMI was at 48.1.
Hong Kong's gross domestic product fell by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday. That's the worst contraction since the second quarter of 2020. Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.
South Korea's trade deficit widened to $6.7 billion for the month of October from a revised figure of $3.78 billion in September, data from the customs agency showed. Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports dropped 5.7% to $52.48 billion.
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