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Benchmark stock indices ended higher as public sector banks (PSBs) and auto stocks gains amid several companies reporting their quarterly earnings. For the week, the Sensex advanced 1.1% to 59,959.85. The Nifty 50 index gained 1.2% to 17,786.80.
The BSE Midcap index rose 0.98% to 25,047.34, while the BSE Smallcap index rose 0.43% to 28,688.57.
Top gainers among Nifty sectoral indices were PSU Bank [5.08%], Auto [3.9%], Metal [2.35%], Energy [2.26%] and Realty [2.19%]. Top losers were FMCG [-0.73%] and Media [-0.39%].
During the week, FIIs were net buyers for Rs 3,986.3 crore in the cash segment. DIIs were net sellers for Rs 1,240.5 crore.
Company News
Reliance Retail: The retail arm of Reliance Industries is expanding its business into the fast-growing toy sector through its brand Rowan to operate in the affordable segment with a smaller shop size. The company has now brought this homegrown brand to the front end by opening its first EBO (exclusive brand outlet) at Gurugram in NCR in the last quarter with a store size of 1,400 sq feet. Under this new format, Reliance Retail will have a range of affordable toys from Rowan brand and also from other brands.
Maruti Suzuki: The automaker’s net profit zoomed 333.87% to Rs 2112.50 crore in the quarter ended September 2022 as against Rs 486.90 crore during the quarter ended September 2021. Revenue rose 47.90% to Rs 28,545.90 crore in the quarter ended September 2022 as against Rs 19,300.50 crore during the quarter ended September 2021. The company said pending customer orders stood at about 412,000 vehicles at the end of September 2022, and about 130,000 pre-bookings are for recently launched models.
Vedanta: The mining company reported a 53% year-on-year decline in consolidated profit after tax (PAT) at Rs 2690 crore in the September 2022 quarter. Its consolidated revenue from operations rose 20% to Rs 36,237 crore from Rs 30,048 crore registered during the same period last fiscal. The performance was affected by weaker commodity prices, mainly, in its aluminium business.
Hero MotoCorp: The two-wheeler maker is set to commence its operations in the Philippines. Terrafirma Motors Corporation (TMC), a part of the Columbian Group of Companies, announced partnering with Hero and it will be the exclusive assembler and distributor of Hero MotoCorp motorcycles in Philippines.
JSW Steel: The company’s subsidiary JSW Steel USA said it would partner with two Italian banking institutions, Intesa Sanpaolo and Banco BPM, to raise funds for plate mill modernisation project in Baytown, Texas. Out of the total financing required, $70 million is covered under SACE guarantee and the balance $112 million is a term loan. SACE is the Italian Export Credit Agency specialized in supporting businesses.
Dabur India: The FMCG company ended the second quarter of FY23 with consolidated profit of Rs 490.1 crore, down 3% compared to year-ago period. Its consolidated revenue stood at Rs 2,986.5 crore, up 6% YoY for the quarter ended September FY23. The company said it will buy 51% stake in Badshah Masala for Rs 587 crore and the remaining 49% stake will be acquired after five years. Badshah Masala is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings.
SBI Card and Payments Services: The company reported a 52% rise in net profit in Q2FY23 quarter to Rs 526 crore, helped by a spike in income and lower provisions. In the year-ago period, it had reported a net profit of Rs 345 crore. Its total income grew 28% year-on-year (YoY) to Rs 3,453 crore in Q2FY23. Net NPA was down 13 bps to 0.78% during the reported quarter. The company added 1.3 million new accounts in Q2, up 36% YoY
Tata Chemicals: The Tata Group company recorded a consolidated profit of Rs 685 crore for the quarter ended September FY23, against Rs 248 crore in same period last year. Revenue from operations for the quarter at Rs 4,239 crore grew by 40% YoY. The higher operating performance was due to improved realisations and efficient cost management amid elevated energy and input costs.
REC: The state-owned company said its consolidated net profit was up 1.5% at Rs 2,732 crore in Q2FY23 as against Rs 2,692 crore in Q2FY22. Consolidated revenue fell 1% to Rs 9,956 crore in Q2FY23 from Rs 10,048 crore in Q2FY22. The company’s board approved a dividend of Rs 5 per equity share.
Economy News
The Reserve Bank of India (RBI) said that the Monetary Policy Committee (MPC) will hold an additional meeting on November 3, next week. The MPC last met on September 28 for three days to decide the key interest rates.
Global Markets
The US stocks ended higher on fresh hopes that the Federal Reserve might slow its pace of rate hike along with gains in energy and industrials stocks. For the week, the S&P 500 gained 3.9%, the Dow advanced 5.7% and the Nasdaq rose 2.2%.
The Commerce Department released its first estimate of gross domestic product (GDP) growth in the third quarter. The data showed that the US economy expanded at an annualized rate of 2.6%, above consensus estimates of around 2.4%. The economic growth was on the back of strong consumer spending and business investment, as well as government’s plans to improve spending.
Japanese markets ended higher for the week as investors remained cautiously optimistic. For the week, the benchmark Nikkei 225 ended at 27,105, up 0.8%. The Topix index closed 0.91% higher at 1,899.
Japan’s manufacturing sector continued to expand in October registering a reading of 50.7, the latest PMI data showed. The reading was slightly down from September’s 50.8. The services PMI also improved to 53 in October from 52.2 in the preceding month, while the composite PMI rose to 51.7, up from 51 in September.
Meanwhile, the Bank of Japan in its monetary policy meeting said that it would hold interest rates at ultra-low levels at (-)0.1% for short-term rates and 0% for 10-year government yields. However, it raised its target for core consumer inflation to 2.9% for the fiscal year ending March 2023 and 1.6% for year ending March 2024. Further, the Japanese central bank increased its purchase of Japanese government bonds (JGBs), adding another JPY 100 billion in 10- to 25-year debt and JPY 50 billion in longer-dated purchases.
Chinese markets fell during the week on growth worries and fresh COVID-related lockdowns in many parts of China. The Shanghai Composite index fell 4.05%, Hang Seng plummeted 8.32% and CSI 300 dropped 5.39%.
In the economic front, China’s gross domestic product grew 3.9% year-on-year in the third quarter of 2022, according to data from the National Bureau of Statistics. In the second quarter, GDP increased 0.4% compared with the same period in 2021.
Moreover, retail sales grew 2.5%, compared to 5.4% in August. Exports grew 5.7% from a year earlier in September, while imports rose 0.3%.