Market View 3rd February 2023

View on market: Stay Cautious, be with quality business:

Asian markets are poised for a cautious open as disappointing earnings from some big-tech names after-hours weigh on sentiment following a surge in the U.S. equities during official trading. Australian stocks struggled to gain traction, while futures contracts for Japan gain and Hong Kong contracts fell. The U.S. futures fell in early Asian trading, too. The tech-heavy Nasdaq 100 rallied Thursday and the S&P 500 closed up more than 1%, boosted by Meta Platforms Inc.’s positive earnings. After trading hours in the U.S., Apple Inc., Amazon.com Inc. and Google parent Alphabet Inc. fell more than 2% after releasing results. At 06:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.25% at 17,682.5. The yield on 10-year Treasuries declined four basis points to 3.37%. Crude price changed little, while gold fell 0.6%. Bitcoin rose 0.9% to trade close to $24,000-level. The headline indices diverged at the end of trading hours on Thursday, continuing the mixed trend from the volatile budget session a day ago. Rupee closed lower against the U.S. dollar amid forex outflow and corporate demand for the greenback.

Economic Calendar:

• USD : Nonfarm Payrolls (Jan) on 03^rd February, 2023
• USD : Unemployment Rate (Jan) on 03^rd February, 2023
• INR : Nikkei Services PMI (Jan) on 03^rd February, 2023
• INR : FX Reserves, USD on 03^rd February, 2023

Q3FY23 Results Today: State Bank of India, ITC, InterGlobe Aviation, Tata Power, Bank of Baroda, Quess Corp, Zydus Lifesciences, JK Tyre & Industries, Tube Investments of India, Marico, One97 Communications, Kansai Nerolac, Divi’s Laboratories, Aarti Industries, Mahindra & Mahindra Financial Services, Jubilant Pharmova, Medplus Health Services, Manappuram Finance, Sumitomo Chemical India, Emami, Praj Industries, Sun TV Network, Star Cement, Jamna Auto Industries, Thyrocare Technologies, Vakrangee, Shipping Corporation of India, PTC India Financial Services, KRBL, Ion Exchange, India Cements, Ethos, Dalmia Bharat Sugar & Industries, Borosil, Brightcom Group

Brokerage Radar:

CLSA ON TITAN: Buy, TP Rs 3000; Double-digit revenue growth across segments but margins moderate; Steady jewellery growth continues; Optimistic outlook for next quarter; An even more attractive entry point post correction

MS ON AB CAP: EW, TP Rs 163; Consol PAT before exceptionals 6% above est. largely owing to change in health insurance biz; NBFC & HFC continued to deliver on growth, NIM & ROA in F3Q23. Life insurance continues to show strong APE growth & VNB margin progression

JPM ON ASHOK LEYLAND: OW, TP Rs 175; 3Q operating results ahead of expectations; Improvement in EBITDA margin (8.8%, +230bps QoQ and +440bps from 1Q to 3Q) was driven by easing RM costs & better mix; Increase EBITDA est for FY23-24E by 11-14%

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Enterprises: The National Stock Exchange has put Adani Enterprises Ltd., Adani Ports and Special Economic Zone Ltd., and Ambuja Cements Ltd. under short-term additional surveillance measure. Under the framework, applicable margin will be 50% or existing margin, whichever is higher, subject to maximum rate of margin capped at 100%, a circular on the NSE said. This will be effective from Feb.

SBI Life Insurance Co.: The life insurer told the exchanges that the impact of Budget recommendations to non-linked policies with annual premium of above Rs 5 lakh will not be significant as the share of such policies in the total annual premium equivalent is under 2%.

TVS Motor Co.: The company, through its subsidiary TVS Motor (Singapore) will acquire 31.44 lakh series AA shares in electric mobility player Ion Mobility for $9.5 million (Rs 77.89 crore).

Adani Ports and Special Economic Zone: The company’s subsidiary Adani Harbour Services incorporated Port Harbour Services International in Singapore to carry out business, consultancy of port and marine services and trading in equipment relating to port and marine business.

 Source: Moneycontrol, Bloomberg Quint, Investing

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