Upbeat vibes

Nifty50: 18,012 ▲ 225 (+1.2%)
Sensex: 60,746 ▲ 786 (+1.3%)

Greetings, people!

What’s in a name? How about a Guinness World Record? The record for ‘the largest gathering of people with the same name’ was broken by 178 people named ‘Hirokazu Tanaka’ congregating in an auditorium in Tokyo. The record was previously held by 164 people named Martha Stewart, who got together in the US in 2005.

• Benchmark indices closed higher, with the Nifty breaching the 18,000 mark for the first time since September 14.
• In all, 44 of the Nifty50 stocks closed in the green.
• Investors await US manufacturing PMI data for October to be released on Tuesday.

All the Nifty sectoral indices closed in the green, with Auto (+1.4%) and IT (+1.4%) seeing the most gains.

What’s trending

⭐ L&T wins multiple orders 

LT (NSE): 2,031 ▲ 56 (+2.8%)

The power transmission & distribution business of Larsen & Toubro has bagged multiple orders worth ₹1,000-2,500 crore to build transmission lines and substations in Saudi Arabia. The multiple EPC orders were secured in the current quarter and involve the construction of over 400 km of overhead transmission lines and setting up of substations. The company will announce its quarterly result later in the day. 

⭐ Bandhan Bank slips after muted results

BANDHANBNK (NSE): 239 ▼ 25 (-9.7%)

Shares of Bandhan Bank declined by nearly 10% intraday after the company posted weak September quarter earnings. The bank’s net interest income (NII) fell 12.8% quarter-on-quarter (QoQ) to ₹2,193 crore, while it rose by 13.3% as compared to the same period last year. Meanwhile its net profit slumped by 76.4% QoQ at ₹209 crore. The bank had reported a loss of ₹3,008 crore in Q2 FY22.

⭐ HFCL surges after order win

HFCL (NSE): 82 ▲ 5.2 (+6.8%)

Telecom company HFCL has secured orders worth ₹115 crore from Reliance Projects, an IT service management company. The orders are for supplying optical fibre cables and are expected to be delivered by January 2023. Earlier in October, the company had launched its 5G Lab-as-a-Service offering to accelerate the rollout of 5G solutions and services. The company also launched 5G macro radio units to support the 5G push.

⭐ Saregama posts strong earnings

SAREGAMA (NSE): 373 ▼ 2.6 (-0.7%)

Saregama India reported a jump of 36% YoY in its consolidated net profit at ₹46 crore. Meanwhile, the company's total income was up by 30% YoY to ₹189 crore. Its revenue from the music segment stood at ₹150 crore and revenue from films, television serials and events was ₹34 crore.

In Focus

Nifty50 closes October on a high

Indian markets continued to march forward this month. The benchmark Nifty50 index rose by 5.3% in October, unfazed by key economic events scheduled in the coming week. These include the unscheduled meeting of the RBI’s Monetary Policy Committee and the US Fed’s interest rate decision. But what’s driving the momentum in the markets? Let’s take a close look.

One of the key factors for the positive market sentiments are strong corporate earnings of major companies. In particular, the banking sector outpaced all other sectors, with better-than-expected September quarter earnings. 

As per market experts, higher interest income in the rising rate cycle aided the robust growth in the banking sector. As a result, the Bank Nifty outperformed other sectoral indices, rising by 6.6% in October, while the PSU Bank index is up by 15.5%.

Besides this, the Indian market is witnessing a slowdown in FIIs selling. Until 28 October, foreign investors had pulled out ₹1,586 crore from the markets as compared to ₹7,600 crore in the previous month. In addition, the India VIX which measures risk and fear in the market, closed at 15.8 on 31 October, the lowest level since December 2021. A low VIX indicates low market volatility and is a sign of a stable market.

Lastly, the market sentiments are strong, amid expectation of a less hawkish stance from the US Fed. Earlier this month, Fed officials said they will continue to raise interest rates in the near term. However, they would calibrate the pace of rate hikes to mitigate the adverse effects on the economy. Nevertheless, market experts predict that the US Fed will announce a 0.75% interest rate hike later this week.

Will the market rally sustain in November? For that we have to wait and watch!

IPO Corner

The IPO for DCX Systems received strong response on Day 1. The public issue was subscribed around 2.1 times. Retail investors flocked to the IPO, subscribing for the portion allocated by over 8.7 times.

Click here to apply to the IPO  on Upstox. 

Good to know

What is the PEG ratio?

The price/earnings-to-growth (PEG) ratio measures a stock’s price to earnings ratio (P/E) relative to its rate of growth. It helps to determine if the stock is undervalued or overvalued. The PEG ratio is calculated by dividing the P/E ratio by the earnings growth rate. A PEG ratio of more than 1 indicates that the markets may be overestimating the growth prospects of a stock, while a value less than 1 indicates that the markets have underestimated stock’s growth prospects.

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