*NEWS DIGEST to START the Day (05 NOV 2020, Thursday) 5 Minutes Read; updated at 0633HRS IST*

*World: 48,411,598; Death 1,230,100 (2.54%) Active 12,524,677 (26%) Recovery 34,656,821 (72%)*

_India: 8,363,412; Death 124,354 (1.49%) Active 528,428 (6%) Recovery 7,710,630 (92%)_

Astrophysicists have detected a burst of cosmic radio waves within our solar system for the first time and identified its source

*DRDO’s Long Range Pinaka Rocket System Test-Fired Off Odisha Coast; replace Pinaka Mk-I rockets*

_Race to White House: Biden 253 Trump 214 on road to 270; Senate - Democrats 47, Republicans 48; House - Democrats 204, Republicans 188_

Legal experts says US Top Court May Not Have Final Say In Presidential Election, Despite Trump Threat

*Biden on Cusp of 270 After Bagging Wisconsin and Michigan, Race Rests on States Where He Leads*

_Ilhan Omar, AOC among 4 Women of Colour to Win in US Elections Despite facing frequent vilification; All 4 Democratic Indian-American lawmakers re-elected to House of Representatives_

US Election Exit Polls Showed the Vote Came Down to the Pandemic Versus the Economy; Public Health May Be US Election Loser As Coronavirus Surges

*India Hits Out at Pakistan for its 'Collusion in Fostering Radicalism, Rabble-rousing'*

_Kerala clocks highest cases in day, Delhi 3rd wave; serosurvey shows nearly 2Cr infected in Karnataka_

Toxic Haze Shrouds Delhi; Calm Winds, Low Temperature To Be Blamed; COVID cases rises fast in NCR

*COVID-19: UK vaccine chief hopes for positive Oxford and Pfizer data in early Dec 2020*

_University of Washington Scientists develop "ultrapotent" COVID vaccine candidate that produces "extremely high levels" of protective antibodies in animal models_

Across Europe, efforts to halt a second wave of coronavirus cases with piecemeal measures are being replaced by far stricter rules

*SC: Warring spouses must disclose income, assets from date of filing application in matrimonial cases*

_Govt assurances fail to convince J&K residents as law makes conversion of farmland for non-farming activity easy_

12 Killed, 9 Hurt as Chemical Godown Collapses After Blast in Ahmedabad; PM, Prez Offer Condolences

*Airlines Allowed Up To 60% Pre-Covid Domestic Flights Till February 24 Next Year: Centre*

_20 Deaths In 3 Days (4 different localities) In Haryana's Sonipat; Cops Suspect Illicit Liquor As Cause_

No Rail Tracks Blocked, Will Vacate Platforms, Say Punjab Farmer Outfits Protesting Against Agri Laws

*SC Stays US Court's $1.2 Billion Pay Order Against ISRO's Antrix in Satellite Deal Case*

_Income Tax Refunds Rs 1.29 Lakh Crore Issued to 39.49 Lakh Taxpayers (Individual & Corporate Tax)_

Suspecting fraud through Shell Companies, IT Dept act tough by blocking input tax credit of several Cos

*SC reserves order on Skoda's plea challenging FIR in UP over "cheat device" in diesel car*

_Icra: Commercial vehicle volumes to contract 25-28% in FY21, outlook remains negative: Thar bookings at 20K with waiting period of 5-7 months_

CCEA approves Rs 1,810-crore investment for 210 MW hydropower project in Himachal Pradesh

*More companies to give salary hikes in 2021 as India Inc bets big on recovery reveals Aon Salary Survey*

_North Korea bans smoking in some public places to provide citizens with "hygienic living environments_

Canada Reports Rare Strain of Swine Flu Found in a Human, Authorities Start Contact Tracing

Today’s Word - *Keb* - a ewe that has miscarried or rejected a lamb https://t.me/marketswizard

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Jubilant Life Sciences Q2 Results: Net profit declines 10% to Rs 224 crore
https://economictimes.indiatimes.com/markets/stocks/earnings/jubilant-life-sciences-q2-results-net-profit-declines-10-to-rs-224-crore/articleshow/79043204.cms

HPCL buyback is not through *TENDER ROUTE* it is through *OPEN MARKET*

Means co will buy 10 crore shares at not more than rs 250/- through stock exchange.

Hence promoter (ONGC) will not participate and their stake will increase from 51.1113% to 54.701% (increase by 3.589723%)

Public shareholding will reduce from 48.89% to 45.30% https://t.me/marketswizard

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05 NOV, 2020

BAN SCRIP-

NIL https://t.me/marketswizard

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RBI Exploring Investment Options For Reserves: Report
 
The official said that the RBI was studying the possibility of investing in AAA-rated corporate dollar bonds, which offer better returns than sovereign credit. https://t.me/marketswizard

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_*Brokerage Radar*_

*CLSA On State Bank of India*
Buy rating maintained, Price target raised to Rs 330 from Rs 310
Growth in NII, PPoP, commentary on asset quality was reassuring
Reduce estimated credit costs to 200 bps from FY21 from 230 bps earlier
Reduction in credit costs drives 60% earnings estimate increase for FY21
Expect RoE of 7.6%, 9.7% and 11.9% in FY21, FY22 and FY23 respectively
Valuations should start to mean-revert as uncertainty around asset quality decreases

*Morgan Stanley On State Bank of India*
Upgrade to overweight from equalweight, Price target raised to Rs 280 from Rs 215
Risk-reward balance is now attractive
Macro tail risk has diminished and asset quality trends have held up well
Well positioned on liquidity
Expect ~9% RoE in FY22e and 13% in FY23e
A sharp rise in Covid-19 cases is a key risk to the thesis

*Nomura on SBI*
Maintain Buy, TP raised to Rs 275
In-line qtr; NIM surprise drives earning upgrade
Re-rating imminent
Higher Share Of PSUs Aiding Better Asset Quality
Agri/SME Slippages Of Rs 9000 Cr/Rs 5100 Cr Was A -ve Surprise

Goldman maintains Buy call on SBI, target price at at Rs 301/sh.

UBS maintains Buy call on SBI, raise target at Rs 275/sh.

Macquarie maintains Outperform call on SBI, raise target at Rs 308/sh.

JP Morgan maintains Overweight call on SBI, target price at Rs 270/sh.

*CLSA On HPCL*
Upgrade from Sell to Buy, Price target raised to Rs 225 from Rs 180
Open market buyback of more than 18% of current free float is good news
A miss on core Ebitda but inventory gains drive profit beat
Buyback will give the right bang for buck
Raise FY21 EPS estimates by 62% and FY22 EPS estimates by 1%
High marketing exposure puts it at an advantage versus IOC and BPCL

*MS on HPCL*
Outperformed peers on margin quality & volume
recovery, & announced a buyback at 34% premium to CMP
Demand recovery, return of capital & steady upside in
margins are key triggers ahead
Maintain OW, TP Rs 246

JP Morgan maintains Overweight call on Hind Petro, larger beat expectations

*Credit Suisse on Steel:*!In Nov 20 prices hiked for 5th straight month.
Picks include Tata Steel and JSPL

*MS maintains Overweight Indigo:*
Domestic airline passengers reach 2.06 lakh on November 1, down 52% YoY.

JP Morgan maintains Buy call on USL, maintain target at Rs 580/sh

CLSA has downgraded Godrej Properties, cut target price at Rs 950/sh https://t.me/marketswizard

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News and Impact

Expect market to open on a positive note on account of global cues. U.S. stocks closed higher as election results continued to come in Wednesday. Dow Jones climbed up 367 points (intra-day gained 800 points) and Nasdaq surged 4% as investors awaited the final outcome of the U.S. election, with Joe Biden on the brink of taking the White House from President Donald Trump, but Republicans likely to maintain their hold on the Senate. Investors frantically bid up technology and drug stocks Wednesday, sending major averages to the biggest rallies in five months, as they grew more confident that the tightly contested outcome would ensure key elements of the bull market remain intact for years to come. US Dow Future is up 0.1% and SGX Nifty is up 1.5% or 177 points.

European equities climbed as the U.S. presidential battlefield narrowed to a smaller number of states,with both incumbent Donald Trump and Democrat Joe Biden still locked in a race that remains too close to call. FTSE, CAC and DAX Index gained 2% each.

Asian market witnessed smart rally. Japanese stocks rose (up 1%) as the market focused on a tighter-than-expected U.S. presidential election. Electronics and drug makers were the biggest boosts to the Topix index. Hong Kong, Taiwan and South Korea Index advance 1-2% each.

Oil declined in Asian trading today – after jumping the most in a month on Wednesday -- as the market digested the implications of a close and still undecided U.S. election. Brent Crude declined 1% to $40.5/bbl.

Gold steadied to trade above $1,900 an ounce s investors awaited the final outcome of the U.S. election, with Joe Biden on the brink of taking the White House from President Donald Trump, but Republicans likely to maintain their hold on the Senate.

Expect intra-day volatility continue ahead of outcome on US Election results and weekly Nifty and Bank Nifty expiry. US Fed interest rate decision and its commentary (today Night, India Impact tomorrow) will be important for the market. Traders buy on decline strategy in the market. However, domestic factors remain positive on account of strong quarterly results, impressive October Auto sales volume, FIIs buying interest, improved economy data (October Service PMI 8-month high and 12 years high Manufacturing PMI). Yesterday, FIIs were net buyers Rs146cr while DIIs net were sellers Rs8cr

Actionable – BUY Voltas, Bandhan Bank, Maruti, SRF, HPCL, United Spirits, PVR

Brokers Radar – SBI TGT by CLSA at 330 from 310, HPCL raised TGT by CLSA to 225 from 180, Godrej Propertius CLSA cut TGT from 990 to 950

Events – Prime Minister Narendra Modi will chair a virtual conference of global investors; RBI to purchase state govt bonds via open-market operations; Top Court hearing case on Loan-Interest Waiver, US Fed interest rate decision, UK Lockdown commence from today, Weekly Banks and Nifty expiry,

Results - ABB India, AB Capital, Adani Power, Adani Transmission, Apar Industriers, Astrazenaca, Bajaj Electricals, Beeger Paints,, Pratap Snacks, Birla Corp, Birla Soft, Caplin Point, CESC Vebture, Chambel Fertlizer, Dalmia Bharat, Dish TV, Eclerx, Emami, Godavari Power, Godrej Consumers, Greaves Cotton, Gujarat Gas, ICRA, Indostar Capital, Inox Leisure, Jamna Auto, Matrimony, Minda Corp, Somany Ceramics, Spencer Retail, Sumitomo Chemicals, Torrent Power, Trent and Vinati Organics.

Market summary - Services Gauge Rises to Highest in Eight Months, SRF, HPCL and United Spirits reported strong Q2 results while SBI announced inline with expected Q2 results, fall in NPA. HPCL shares buy-back over 34% premium of 7% equity, Jindal Power Wins Block In Chhattisgarh On Day 3 Of Auction

Jindal Steel – On the third day of the commercial coal mining auction on Wednesday, Jindal Power won a block in Chhattisgarh, while JMS Mining made the highest bid for a mine in Madhya Pradesh – Positive for Jindal Steel

Media report that the Dabur India May Hike Product Prices As Raw Material Costs Rise – Positive

Adani Enterprises (ADE): Plans INR500B Capex in Five Years, CFO Says- Positive

Tube Investments: Bo

ard approved providing of guarantee(s) in favour of lenders of CG Power and Industrial Solutions towards the financial assistance to be availed by CG Power for an aggregate amount of up to Rs.1,400 crore.- Positive for Tube Investments

Kalpataru Power : All approvals for the sale of Alipurduar Transmission have been received. The company expects to receive cash proceeds this month. – Positive

PVR, Inox Leisure in focus today as the Maharashtra government allowed cinema hall, theatres, multiplexes to open with 50% capacity from today.- Positive

SBI Cards and Payment Services partners with Paytm to launch Paytm SBI Card. – Positive

Adani Gas has signed a definitive agreement for the acquisition of city gas distribution (CGD) network in three Geographical Areas (GA) namely Ludhiana, Jalandhar and Kutch (East) from a consortium led by Jay Madhok Energy. – Positive

SRF approves second BOPP Film line and Metallizer projects in Indore worth Rs424cr – Positive

MCX has invited proposals from technology companies to set up an advanced commodity derivatives platform for trading and clearing services, as its contract with 63 Moons will expire in September 2022.- Positive

Services Gauge Rises to Highest in Eight Months - The Markit India Services PMI SA climbed to 54.1 last month, the highest level since February’s 57.5 – Expects positive for economy

Rating agency S&P revises Tata Motor outlook to negative from stable – Any decline will be buying opportunity on Tata Motor.

Watch on PVR and Inox Leisure – Cinema Hall will be re-open in Mumbai from today - positive

Bharat Forge North American Class 8 net orders at 38,900 units, up 27% (YoY) – Positive

Lasa Supergenerics bags environmental clearance for Benzimidazole derivatives capacity expansion – Positive

Pidilite Industries – The acquisition of Huntsman Advanced Materials Solutions. The company has completed the acquisition of 100% stake in HAMSPL on November 3, - Positive

HPCL announced share buy-back at Rs250 a share (34.4% premium at Rs186) worth Rs2500cr or 7% equity - Positive

SBI said it followed the Supreme Court’s instructions in the Gajendra Sharma v/s Union of India case where the judiciary had asked banks not to classify any accounts as NPA after Aug. 31. If the instructions were not in place, SBI’s gross and net NPA ratios would have been at 5.88% and 2.08%, respectively.

Adani Enterprises income Rs362cr (up 633% YoY), EBITDA Rs951cr (up 76% YoY), Income Rs9130cr (up 8% YoY) – impressive Q2 results but higher debt is a concern – avoid

SBI reported impressive Q2 results and improved asset quality. Company reported net profit Rs4574cr (up 52% YoY) – expectation Rs3150cr, provision Rs10120cr vs Rs12500cr (QoQ) (expectation Rs12670cr), NII Rs281812 (up 14.5% YoY) – expectation Rs26890cr, Loan Provision Rs5620cr(down 40%) , NIM 3.34% vs 3.22% (YoY), GNPA 5.28% vs 5.40% (QoQ) – expectation 5.2%, NPA 1.59% vs 1.86% (QoQ) – expectation 1.7%, Provision Coverage 88.19%, slippage Rs14388cr,.

Lupin Labs reported inline with expected Q2 results. Company reported Q2 net profit Rs214cr (up 96% QoQ) – expectation Rs198cr, EBIT Rs368cr (down 5% YoY) – expectation Rs374cr, EBIT margin 9.61% vs 13% (YoY) – expectation 10% and income Rs3835cr (down 1.2% YoY) – expectation Rs3758cr

Jubliant Life reported better than expected Q2 EBITDA. Company reported Q2 net profit Rs224cr (down 24% YoY) – expectation Rs192cr, EBITDA Rs493cr (up 5.3% YoY) – expectation Rs436cr, EBIT margin 15.6% vs 15.5% (YoY) – expectation 15% and Income Rs2330cr (up 4%) – expectation Rs2139cr

United Spirits reported strong Q2 results. Q2 net profit Rs128.4cr (down 43% YoY) – expectation Rs64.1cr, Ebitda Rs270cr (down 35% YoY) – expecattion Rs179.6cr, Ebitda margin 12.6% vs 18.1% (YoY) – expectation 12% and Income Rs2146cr (down 4.5% YoY) – expectation Rs1492cr. After adjusting for the one-time sale of bulk Scotch last year, underlying net sales declined 3.4%. Volume growth declined 3.9% (estimates -32%). Reported PBT declined 46.5% YoY to Rs170cr (estimates Rs85.6cr).

SRF Q2 net profit Rs315cr (up 4.7%

YoY), Ebitda Rs572.2cr (up 73% YoY) – expectation Rs384cr, Ebitda Margin 27.2% vs 19% - expectation 20.8% and Income Rs2100r (up 21% YoY) – expectation Rs1849cr

HPCL Q2 net profit Rs2480cr (up 136% YoY) – expectation Rs1350cr, GRM $2.58/BBL vs $1.87/bbl – expectation $2/bbl, Tax Paid Rs815cr vs Rs560cr – expectation Rs450cr, Ebitda Rs3600cr (up 47% YoY) – 58% BEAT, income Rs61340cr (down Rs7.3% YoY) – expectation Rs56370cr. EBITDA stood higher YoY led by better average marketing margins at Rs7.1/lit in 1HFY21 (v/s Rs4.1/lit in 1HFY20).

Indian Hotel reported lower than expected Q2 results. Company reported consolidated Revenue declined 75% YoY to Rs256.7cr (est. Rs302.2cr). EBITDA loss was broadly in-line with our estimates and stood at Rs150.3cr vs gain of Rs160.5cr last year. Reported net loss of Rs245.5cr vs gain of Rs71.5cr last year.

Positive for metal stocks on Price Hikes and impressive global economy data - Metal stocks expected to be positive on account of steel players hiked metal price in the last three months from August to October. Moreover, hope of metal demand will improve after strong PMI data announced by US, Germany, India and China. We are positive on JSW Steel, Jindal Steel, NMDC, Hindalco.

Auto stocks expects momentum ahead of festival sessions - Automakers have step the production as dealerships are running low on stock ahead of Diwali after their retailed more cars and SUVs in Oct then what the manufacturer's supplied. https://t.me/marketswizard

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