Pre Market Analysis 22-10-2021

Market Opening - An Overview

Nifty futures on the Singapore Exchange were trading 0.26% higher at 18,293.50, signalling that Dalal Street was headed for a positive start on Friday.

Asian stocks were trading higher, tracking the US markets and after reports said that Chinas’s Evergande Group is likely to meet the interest obligation on an offshore bond. Japan’ Nikkei was up 0.64% and Topix rose 0.32%. China’s CSI 300 advanced 0.29% and Hang Seng gained 0.31%.

The Indian rupee ended almost flat at 74.86 against the US dollar on Thursday.

Upcoming Earnings

Reliance Industries, HDFC Life Insurance Company, YES Bank, Tata Consumer Products, Tata Elxsi, Federal Bank, Gland Pharma, Hindustan Zinc, Apollo Pipes, Bharat Seats, Crompton Greaves Consumer Electricals, Dodla Dairy, Inox Leisure, Jubilant Pharmova, Kajaria Ceramics, Kirloskar Ferrous Industries, Kwality Pharmaceuticals, Mahindra Holidays & Resorts India, Omkar Speciality Chemicals, Polycab India, ABB Power Products and Systems India, PVR, Steel Strips Wheels, Subros, Sundaram-Clayton, Supreme Industries and Zenotech Laboratories.

FII/DII trading data on Thursday (21-10-2021)

CategoryBuy ValueSell ValueNet Value
*All numbers are in INR crore

Stocks in News Today

ICICI Lombard General Insurance: The financial services company reported a net profit of Rs 446 crore in Q2FY22, marginally higher than the last year’s net profit of Rs 416 crore. Its gross direct premium rose 38.72% year-on-year to Rs 4,424 crore in Q2FY22, from Rs 3,189 crore. The combined ratio, which is a measure of the profitability, in the reporting quarter stood at 105.3%.

TVS Motor: The company has posted a 29% increase in consolidated net profit to Rs 234.37 crore in Q2FY22, from Rs 181.41 crore in the same period last year, helped by a rise in sales. Its operating revenue jumped 23% to Rs 6483 crore in the reported quarter, from Rs 5254 in the year-ago period. Two-wheeler export sales grew 46% in the second quarter, compared with the second quarter of the last fiscal. Meanwhile, the company will set up a new subsidiary for its electric vehicle segment. TVS is also planning to invest about Rs 1000 crore in the EV space, said K N Radhakrishnan, Director and Chief Executive Officer, TVS Motor.

JSW Steel: The company’s consolidated net profit rose 350% to Rs 7179 crore in Q2FY22, from Rs 1595 crore in the year-ago period. Its total revenue from operations increased to Rs 32503 crore in the second quarter, from Rs 19264 crore in Q2FY21. The company witnessed a fall in domestic demand due to seasonality that was offset by an increase in exports by 22% sequentially.

IDBI Bank: The lender reported a rise in net profit by 75% to Rs 567 crore in Q2FY22, helped by higher net interest income (NII) and dip in provisions, as against a net profit of Rs 324 crore for Q2FY21. NII increased by 9% in the quarter to Rs 1,854 crore. Gross Non-Performing Assets ratio improved to 20.92% in Q2FY22, as against 25.08% in Q2FY21.

LIC Housing Finance: The NBFC’s second-quarter net profit in FY22 fell 68.7% to Rs 247.86 due to lower interest income and rise in expenses for impairments. The company had posted a net profit of Rs 790.9 crore in Q2FY21. Its net interest income (NII) for the reporting quarter fell by 5.25% YoY to Rs 1,173 crore. The net interest margin slipped to 2% in the reported quarter, from 2.34% in the same period last fiscal.

Reliance Industries: The company said that majority of its shareholders have passed the resolution to appoint Saudi Aramco Chairman Yasir Al-Rumayyan as an independent director to the conglomerate’s board. Al-Rumayyan has been the governor of the Public Investment Fund of Saudi Arabia since 2015.

Indian Energy Exchange: The company’s consolidated net profit jumped 75% YoY to Rs 77.38 in Q2FY22, from Rs 44.33 crore. Total income rose to Rs 122.30 crore in the quarter from Rs 78.71 crore in the year-ago period. The board has recommended a bonus issue of equity shares in the proportion of two shares of Re 1 each for every one existing share of Re 1 each held by the shareholders as on the record date.

Macrotech Developers: The realty company posted a consolidated net profit at Rs 223.36 crore in Q2FY22, as against a net loss of Rs 362.58 crore in the year-ago period. Total income jumped over two-fold to Rs 2,201.66 crore in Q2FY22, from Rs 988.18 crore in the corresponding period last year.

Indian Hotels: The hospitality company of Tata Group posted a lower consolidated net loss of Rs 130.92 crore in Q2FY22, as against a net loss of Rs 252.09 crore in the year-ago period. Consolidated operating revenue in the second quarter rose to Rs 728.37 crore, from Rs 256.67 crore in the same period last fiscal. The company’s managing director and chief executive officer, Puneet Chhatwal, said that many leisure destinations witnessed a very strong demand and also corporate demand is coming back faster than expected.

GAIL: The public-sector enterprise will build India’s largest green hydrogen plant in the next 12-14 months, as it looks to supplement its natural gas business with carbon-free fuel. Its Chairman and Managing Director Manoj Jain said that the company is planning at building a 10-megawatt (MW) electrolyzer with a capacity generation of 4.5 tonnes of green hydrogen daily.

Zee Entertainment Enterprises: The Bombay High Court (HC) asked the board of Zee Entertainment Enterprises (ZEEL) to hold an extraordinary general meeting (EGM) of shareholders as requested by Invesco, its largest shareholder. The court proposed that a retired judge or a neutral person chair the EGM.