Market LIVE: Sensex, Nifty fall in choppy trade; Tech Mahindra top gainer

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Major Asian equity indices were higher on Tuesday, tracking record close in US peers. Oil prices also edged higher after easing a bit earlier today. Gold prices eased on Tuesday, weighed down by an uptick in the dollar and US bond yields

26 Oct 2021, 11:31:04 AM IST

Axis Bank falls ahead of Q2 results amid subdued market

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26 Oct 2021, 11:28:18 AM IST

ICICI Securities Muhurat 2021 picks 

Indian markets have been one of the best performing markets this calendar year and are up 25% YTD CY21. They have deftly climbed the wall of worry be it the second Covid wave in the country in April-May 2021 or the third wave expectations during August-September 2021. This was due to a confluence of fundamental factors: First and foremost, equity as an asset class is being widely and rightly recognised as an asset generating inflation beating returns or real returns over a long period of time and is indeed very much liquid in nature; the TINA (there is no alternative) factor is at play. Secondly, with the increase in pace of digitisation, a set of efficiencies have creeped into organisations as well as the economy, indicating better corporate earnings/GDP growth. Thirdly, with new age technology platforms, the reach of equities has increased with record number of demat accounts being opened over the last 18 months, indicating enhanced retail participation.

Apart from these fundamental drivers, some qualitative and macros, which make us incrementally positive on the markets include a) higher pace of vaccination, b) pro growth policy action, c) National Asset monetisation pipeline that will drive capex cycle, d) Strong recovery in real estate market that a has multiplier impact on the economy and e) Buoyancy in Corporate earnings growth (Nifty EPS CAGR of 26% over FY21-23E).

Given the scenario, we see value emerging across the market cap spectrum with the key filter being quality. We continue to advise investors to utilise equities as a key asset class for long term wealth generation by investing into quality companies with strong earnings growth and visibility, stable cash flows, RoE and RoCE.

We recommend Bank of Baroda, Action Construction Equipment, Bata India, TCNS Clothing, Gateway Distriparks, Mahindra Lifespace and Vardhman Special Steel as our Muhurat 2021 picks.

26 Oct 2021, 11:18:24 AM IST

Glenmark Pharma launches fixed-drug combination for type 2 diabetes management

Glenmark Pharmaceuticals has launched a fixed-dose combination (FDC) of its novel, patent-protected, globally researched Sodium-Glucose Co-Transporter Inhibitor (SGLT2i) – Remogliflozin Etabonate and another widely used DPP4 inhibitor (Dipeptidyl Peptidase 4 inhibitor) – Vildagliptin, with Metformin (first-line medication for the treatment of type 2 diabetes).

“The combination contains Remogliflozin (100 mg) Vildagliptin (50 mg) Metformin (500/1000 mg) in a fixed-dose and must be taken twice daily to improve glycemic control in patients. Glenmark has launched the same under two brand names Remo MV and Remozen MV,” as per a company statement.

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26 Oct 2021, 10:59:04 AM IST

Nomura downgrades India markets

Nomura has downgraded Indian markets to neutral from overweight citing unfavourable risk-reward given high valuations, with a number of positives priced in even as headwinds are emerging. Instead, the Japanese brokerage firm prefers China and Asean and will be looking for better entry points for India. Nomura had upgraded India to overweight in February, citing local factors such as fiscal activism and falling covid-19 cases.

“However, we think these positives are now adequately reflected in current valuations – that appear rich not only on absolute basis but also on relative basis. Even on two-year forward price-to earnings (PE) basis (incorporating India’s strong earnings outlook), India is trading at record high elevated premium relative to regional markets,” said Chetan Seth and Amit Phillips, analysts, Nomura. (Read here)

26 Oct 2021, 10:54:31 AM IST

Sensex pares gains

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Sensex check
26 Oct 2021, 10:44:59 AM IST

Broader markets advance; India VIX down 2%

Nifty indices 

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Nifty indices 
26 Oct 2021, 10:35:27 AM IST

Colgate Palmolive investors hardly have reasons to smile

There was nothing exciting about Colgate Palmolive Ltd’s September quarter earnings. The FMCG company missed analysts’ estimates on key parameters of volumes, revenue growth and operating margins.

Higher spends on promotional activities led to around 4% year-on-year (y-o-y) volumes growth with revenue growth of 5% in the September quarter.

Gross margins fell 130 basis points (bps) y-o-y dented by higher input prices and lower pricing growth. One basis point is one hundredeth of a percentage point. Ebitda margins declined 220bps y-o-y to 30% impacted by higher employee expenses and ad spends. Ebitda is short for earnings before interest, tax, depreciation and amortization. Analysts caution that input cost inflation remains a key risk for the company as prices of crude and crude derivatives are elevated. Consequently, investors in this stock should brace for around 120-140bps fall in operating margins in FY22.

Further, on a two-year CAGR basis, revenues growth was around 5.2%, analysts note.

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26 Oct 2021, 10:26:07 AM IST

Moody’s assigns first-time Ba2 to Adani Green Energy’s restricted group-1’s USD senior secured notes

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26 Oct 2021, 10:22:24 AM IST

Indian rupee opens at 75.04 per dollar vs 75.08 at close on Monday 

26 Oct 2021, 10:20:29 AM IST

Axis Securities has HOLD rating on Gland Pharma, target price at ₹ 4,000/share

Strong growth in injectables, rich valuations 

Gland Pharma reported a good set of numbers with revenue growth of 30% YoY, driven by emerging and India markets while core markets reported a 13% rise.

Gross margins stood at 55.5%, decreasing by 360bps due to an increase in raw material cost as well as a high proportion of sales from the emerging markets. EBITDA margins at 34.9%, reported a decline of 110bps despite a fall in employee and other expenses. 

Reported PAT grew 38% due to high other income and lower tax rates. The core markets grew by 13% YoY. While new products added growth of 9%, the existing portfolio added 5% of growth which is above our estimates.

The rest of the World (RoW) market has seen robust growth due to increased focus on geographic expansion. This Is driven by increased penetration by forming new partnerships in various countries.

 

Gland Pharma 

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Gland Pharma 
26 Oct 2021, 10:15:34 AM IST

Oil gains as traders await stocks data, Iran talks

Oil prices edged higher on Tuesday after trading down earlier, looking set to sustain a rally driven by strong demand in the US, the world’s biggest consumer of oil and its products.

Brent crude was up 13 cents or 0.2% at $86.12 a barrel, after gaining 0.5% on Monday. U.S. oil gained 5 cents or 0.1% to $83.81 a barrel, having finished unchanged the previous session after testing new highs.

26 Oct 2021, 10:13:59 AM IST

Nifty view:…

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