Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

Performance ranker: How did the Indian equity market perform against global markets in October 2021?

Performance ranker: How did the Indian equity market perform against global markets in October 2021?
by 5paisa Research Team 02/11/2021

Among major global markets, it was only the Japanese and Brazilian equity markets that performed worse than the Indian equity market.

The Indian equity market remained quite volatile in October 2021. In the first 12 days of trading, Nifty 50 gained as much as 6%. From the 17500 mark, it scaled the highs of 18600 in a matter of just 12 trading sessions. Nevertheless, after October 19, the market started to fall and in a few trading sessions, all the gain made in the first half of October was lost. Nifty was again trading at the 17600 mark.

Nevertheless, such a fall was not due to any global cues, it was a purely over-stretched valuation that might have played down.

Among major global markets, it was only the Japanese and Brazilian equity markets that performed worse than the Indian equity market.

The best performing market was tech-heavy Nasdaq, which gained 7.27% in October followed by S&P 500 and Dow Jones Industrial Index. So, it was the US equity market that remained the best-performing equity market in October 2021.

The following table shows the performance of the major global equity market in October 2021.

Stat  

S&P 500  

DAX  

FTSE  

Nikkei 225  

Nifty  

CAC 40  

DJIA  

Hang Seng  

NASDAQ  

Bovespa  

Total Return  

6.91%  

2.81%  

2.13%  

-1.90%  

0.30%  

4.76%  

5.84%  

3.26%  

7.27%  

-6.74%  

Max Drawdown  

-1.12%  

-1.46%  

-1.15%  

-3.22%  

-4.36%  

-1.26%  

-1.09%  

-2.90%  

-1.28%  

-9.72%  

                          

Maximum drawdown, which is defined as the peak-to-trough decline of an investment during a specific period, shows that in the month of October, the Indian equity market saw a max decline of 4.36%. Indian equity market was second only to the Brazilian market that dropped almost 10% in the month of October 2021.

The Indian equity market has recovered from its 50-day moving average and Nifty is trading close to the 18,000 mark that remains a strong resistance of now.

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Technical Analysis: Grasim Industries gives a breakout

Technical Analysis: Grasim Industries gives a breakout
by 5paisa Research Team 02/11/2021

Grasim Industries has given a breakout from the flag chart pattern. Read on to find out more. 

Post making a low of 380.45 in March 2020, Grasim Industries continued to remain in a good uptrend making higher highs and higher lows. However, after making a higher high of 1,798.4 on October 18, 2021, the stock moved into a small consolidation making a series of lower high and lower lows on the lower time frame chart. But on daily charts, the stock made a higher low of 1,669.15 on October 25, 2021. And on November 1, 2021, the stock finally breached the flag like chart pattern with increased volumes.

The immediate resistance that the stock might face is placed at 1798.4, while its immediate support zone is 1,694.3-1,669.15. The stock presently is trading above its 9-Day, 20-Day and 50-Day Exponential Moving Average (EMA). Moreover, you can consider 50-Day EMA to be its trailing support level. The Bollinger band does suggest a potential pullback from current levels as the price is currently trading near the upper band.

The 14-Day Relative Strength Index (RSI) is inching high and is presently trading at 65 which is above its 20-Day EMA of 62. Moving Average Convergence Divergence (MACD) is showing positive crossover on the breakout and is trading in the positive territory. In the shorter time frames, the price is trading below its Parabolic SAR. This suggests a possible pullback from present levels. Even the Commodity Channel Index (CCI) is presently hovering above the 100 level, suggesting an overbought situation.

Grasim Industries is likely to release its Q2 FY22 earnings by November 11, 2021. It would be interesting to see how the price reacts. However, from the present analysis, it seems that the uptrend is likely to continue as there are no signs of a trend reversal. However, the technical indicators such as Bollinger band, Parabolic SAR and CCI is suggesting a potential pullback from current levels.

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Multibagger Alert: This top multibagger from the finance sector gained 208% in one year

Multibagger Alert: This top multibagger from the finance sector gained 208% in one year
by 5paisa Research Team 02/11/2021

Bajaj Finserve is one of the leading players in the NBFC space.

Bajaj Finserve Ltd has been one of the trending companies in the past year. It has more than tripled its shareholder's wealth in the trailing twelve months. Strong financial position and the recovery in the economy post-second wave have boosted the spirits of the shareholders. 

In October 2021, the stock witnessed a great bull rally and peaked on the BSE. With this, the multibagger stock entered into the Rs 3 trillion market cap club. It had then become the 18th Indian company to cross that mark.

The quarter ended September 2021 results witnessed strong growth momentum. The consolidated revenues were Rs 18,008 crore, up by 20% on a YoY basis. The company reported a growth of 12% in consolidated profit after tax which stood at Rs 1,122 crore. Its surplus funds excluding group investments stood at Rs 15 billion as of September 30, 2021.

Bajaj Finserv is a holding company for the businesses engaged in various financial services of the Bajaj Group. And thus, its majority holding is in Bajaj Finance Limited (BFL) in which it holds a 52.65% stake. Bajaj Finance Ltd has also been a multibagger, generating a return of 117%. In the insurance segment, it has holdings in Bajaj Allianz General Insurance Co Ltd (BAGIC) and Bajaj Allianz Life Insurance Co Ltd. (BALIC). For the first half of FY22, BFL contributed 67% to Bajaj Finserv’s profitability, while BAGIC and BALIC contributed 32% and 11% respectively.

On November 2, 2021, the multibagger was trading flat at Rs 17,592 at 12:05 pm on the BSE. It has a 52-week high of Rs 19,319.95 and a 52-week low of Rs 5,563.45.

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Auto Sales in October 2021: Supply chain challenges continue to drag down production.

Auto Sales in October 2021: Supply chain challenges continue to drag down production.
by 5paisa Research Team 02/11/2021

Several automakers witness double-digit declines on account of the global semi-conductor shortage.

Significant challenges on the supply side, including semi-conductor issues and sharp commodity inflation, continue to plague the automobile industry, which is now grappling with plummeting production. This is mainly the case with car sales in India but even two-wheeler sales took a hit ahead of the festive season as witnessed in the October 2021 sales numbers. 

Passenger Vehicles:

The domestic sales for India's largest carmaker, Maruti Suzuki India fell 33.40% on a YoY basis to 1,08,991 units in October. The Gurugram-based automaker said the shortage of electronic components continued to affect production during the month. Mahindra and Mahindra (M&M) reported domestic sales of 20,130 units during the month, registering an increase in total sales of 8.10% on a YoY basis. The company has noted an unprecedented response for its recently launched XUV 700.

On the other hand, Tata Motors was the standout name in the passenger vehicle space once again and reported a YoY domestic sales growth of 43.65 per cent in October 2021 to 33,925 units as compared to 23,617 units last year. For Tata, cars like Altroz, Nexon and Tiago have been registering consistent sales volumes. The newly launched Punch micro SUV is expected to drive sales volumes in the months ahead. These sales figures have led to a significant increase in market share with the company reporting a 13.7% market share last month - its highest in over a decade. This was against the 7.4% share held in October 2020.

Domestic PV Sales   

October 2021   

October 2020   

% change   

 

 

Maruti Suzuki   

                108,991  

                 163,656  

-33.40% 

 

 

Tata Motors   

                   33,925  

                   23,617  

43.65% 

 

 

Mahindra & Mahindra   

                   20,130  

                   18,622  

8.10% 

 

 

Two-wheelers:

The country’s largest two-wheeler maker, Hero Motocorp reported a 33.29% dip in domestic sales to 527,779 units in October 2021 as compared to 791,137 units in the same month last year. The company expects healthy retail over the coming weeks with demand in the festive season building up towards Dhanteras and Diwali.

Other two-wheeler names, notably TVS Motors and Bajaj Auto reported YoY declines in domestic sales of 14.14% and 26.02% respectively. Meanwhile, Royal Enfield a part of Eicher Motors reported a 35.39% drop in domestic sales to 40,611 units in October. While total sales of its motorcycle models with engine capacity up to 350cc fell by 38% to 37,409 units, sales of motorcycle models with engine capacity exceeding 350cc rose by 5% to 6,724 units in October 2021 over October 2020.

Domestic 2-W Sales  

October 2021   

October 2020   

% change 

 

 

Hero MotoCorp  

                527,779  

                 791,137  

-33.29% 

 

 

TVS Motor  

                258,777  

                 301,380  

-14.14% 

 

 

Bajaj Auto  

                198,738  

                 268,631  

-26.02% 

 

 

Royal Enfield 

                   40,611  

                   62,858  

-35.39% 

 

 

Commercial Vehicles (CV):

Companies in the Commercial Vehicle (CV) space saw sales mostly in the green apart from Mahindra & Mahindra which recorded a 21.56% drop in domestic sales to 18,604 units in October 2021 from 23,716 units in October 2020.

Hinduja Group flagship Ashok Leyland’s domestic sales of medium and heavy commercial vehicles were at 5,254 units as against 3,881 units in October 2020, a growth of 35%. However, sales of light commercial vehicles in the domestic market were down 4% at 4,789 units last month as against 5,004 units in October 2020. Total domestic sales were higher by 13.03%.

Domestic CV Sales  

October 2021   

October 2020   

% change  

 

 

Tata Motors  

                   31,226  

                   26,052  

19.86% 

 

 

TVS Motor  

                   13,520  

                   12,603  

7.28% 

 

 

Mahindra & Mahindra  

                   18,604  

                   23,716  

-21.56% 

 

 

Bajaj Auto  

                   19,827  

                   12,529  

58.25% 

 

 

Ashok Leyland  

                   10,043  

                      8,885  

13.03% 

 

 

Tractors:

Mahindra & Mahindra and Escorts both recorded declines in domestic sales of 0.37% and 3.27% respectively in October 2021 on a YoY basis. This was due to heavy rainfall in September and October has resulted in delayed harvesting of Kharif crop, while leading to higher reservoir levels and moisture content for Rabi crop.
 

However, the Escorts management sounded upbeat that the ensuing festive season, strong farmer sentiment, rising enquiry level driven by favourable macroeconomic factors, reasonable water level at reservoirs, and the healthy pace of Kharif sowing, will give a fillip to the segment.

Domestic Tractor Sales  

October 2021   

October 2020   

% change  

 

 

Mahindra & Mahindra  

                   45,420  

                   45,588  

-0.37% 

 

 

Escorts 

                   12,749  

                   13,180  

-3.27% 

 

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Earnings report: Escorts net profit down by 23.5% in September quarter

Earnings report: Escorts net profit down by 23.5% in September quarter
by 5paisa Research Team 02/11/2021

The impact of adverse commodity prices and product mix are the key reasons for the decline in profits.

The Agricultural machinery company Escorts posted a net profit of Rs 176 crore for the three months through September which is a steep decline of 23.5%, compared with Rs 227 crore for the corresponding period a year ago.

However, revenue from operations had a marginal increase of 1.2% to Rs 1,673 crore from Rs 1,654 crore a year earlier.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 29.5% to Rs 210.3 crore for the July-September period from Rs 298 crore a year earlier.

Do you wonder, despite an increase in revenue, how did the EBITDA margins got affected badly?

Segment analysis Q2-FY22

Escorts Agri Machinery (EAM) contributes 74.7% of the total revenue which is Rs 1,246 crore vs Rs 1320 crore last year same quarter,

Escorts construction equipment (ECE) contributes 15% of the total revenue which is Rs 250 crore vs Rs 158 crore last year same quarter.

Railway equipment division (RED) contributes 10% of the total revenue which is Rs 170 crore vs Rs 160 crore last year same quarter.

Reasons the YOY decline in EBIT

1. Impact of adverse commodity prices

2. Product mix

The first reason is quite inevitable, driven by the inflationary environment in the July-September quarter, which impacted many manufacturing companies profit margins.

But the second reason is company-specific, EAM is the high margin segment (EBIT margin is 15%) where tractor sales are down 18.2% on a YOY basis, which impacted the EBIT. The YoY decline of 29.4% to Rs 186 crore vs Rs 265 crore last year same quarter.

Though the ECE segment saw decent revenue growth, this is a low margin segment (EBIT margin is just 3.6%), EBIT increased to Rs 9 crore from Rs 3.5 crore last year same quarter.

It is clear now how the company struggled to maintain profit margins though they are able to increase the sales.

Owing to this, the stock price had a selling pressure after the results were out. The shares of Escorts went 1.5% down yesterday to Rs 1,491, but today it had a bounce back to Rs 1,557, 0.5% up for the day.
 

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These stocks are likely to be in focus on November 3

These stocks are likely to be in focus on November 3
by 5paisa Research Team 02/11/2021

The equity markets witnessed a volatile day on November 2, 2021.

Benchmark indices ended lower in the volatile session on Tuesday amid mixed global cues.

At close, the Sensex was down 109.40 points or 0.18% at 60,029.06, and the Nifty was down 40.70 points or 0.23% at 17,889.00.

On the sectoral front, the BSE Metal index lost its shine and shed over 1% while the realty and PSU Bank index zoomed 2-3 %. The indices in broader markets, the BSE Smallcap index and BSE Midcap index, outperformed the benchmark indices by rising 0.5 to 1%.

Watch out for these stocks for the Wednesday trading session.

Sun Pharmaceutical Industries - The company reported financials for the second quarter ending September 30, 2021. The company followed its good Q1 performance and sustained the positive momentum in Q2 with a topline growth of 13% YoY, driven by broad-based growth across multiple geographies. Its global speciality business has grown by 43% over Q2 last year. The company’s product Ilumya, a medication is used to treat moderate to severe plaque psoriasis, has grown both YoY and sequentially.

BSE and HDFC Bank – BSE has signed MoU with HDFC Bank to further encourage and promote the listing of Startups and SMEs across India. Through this MoU, HDFC Bank and BSE shall evaluate banking and lending solutions for start-ups undergoing listing process on Start-ups and SME platform. HDFC Bank will identify potential start-ups and SMEs and help them to partner with intermediaries like Merchant Bankers, Chartered Accountants and Lawyers to list on BSE.

Upper Circuit stocks – From the BSE 500 index, the stocks of All Cargo Logistics, PNB Housing Finance and IIFL have been trending on Tuesday. They have locked in the upper circuit with Allcargo Logistics gaining up to 19.99% in Tuesday’s trading session. Keep a watch on these stocks on Wednesday.

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