Market View 20th July 2022

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

Asian equities rallied on the back of surge in US markets amid a dip in the dollar. Shares gained over 1% in Japan, South Korea and Australia after the S&P 500’s biggest jump since June. US futures advanced. At 6:40 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.89% to 16,483.50 points. The euro climbed to two-week high against the dollar on hopes of bigger-than-expected European Central Bank interest-rate hike on Thursday. Elsewhere, Brent crude oil traded around $107 a barrel, while Bitcoin hovered above $23,000.

Economic Calendar:

• USD : Crude Oil Inventories 20^th July, 2022
• USD : Existing Home Sales (June) 20^th July, 2022
• INR : FX Reserves, USD 22^th July, 2022
• INR : M3 Money Supply 27^th July, 2022

Q1FY23 Result Today: CenturyPly, Havells, IndusInd Bank, Lloyd Steel, Mastek, Newgen, Syngene International, Tata Communications, Wipro

Q1FY23 Result:

Hindustan Unilever Q1 FY23 (Standalone, YoY) recorded a 11% year-on-year growth in profit at Rs 2,289 crore for the quarter ended June 2022, with underlying volume growth of 6%, but EBITDA margin contracted 100 bps YoY to 23.2% amid unprecedented inflationary headwinds. Revenue grew by 20% to Rs 14,272 crore during the same period YoY.

Ambuja CementsQ1 FY23 (Consolidated, YoY) registered a 25.5% year-on-year decline in consolidated profit at Rs 865.44 crore for the quarter ended June 2022 (Q2CY22), impacted by higher power & fuel cost, and freight & forwarding expenses. However, revenue increased 15.1% YoY to Rs 8,033 crore for the quarter.

L&T Finance Holdings Q1 FY23 (Standalone, YoY) clocked a 47.4% year-on-year growth in profit at Rs 262 crore for the quarter ended June 2022, driven by fall in impairment on financial instruments. Revenue from operations declined 2.1% to Rs 2,988.40 crore during the same period YoY. The company reported highest-ever quarterly retail disbursements at Rs 8,938 crore, up 148% YoY.

Brokerage Radar:

NOMURA ON HDFC LIFE: Buy, TP Rs 660, 1Q largely steady, with continued traction in non-PAR & recovery of credit life supporting margins, VNB margin expanded 60bp y/y to 26.8% aiding 25% y/y VNB growth, Val comfort high, Lower cyclical risks underpin positive bias

CLSA ON HUL: O-P, TP raised 2660, Strong topline aids overall beat, Gradual margin recovery expected from 3QFY23, Premium products continues to do better; product superiority helping

CITI ON AMBUJA CEMENTS: Downgrade to Sell, TP cut to Rs 340 from Rs 400, 2Q Ahead on Lower Costs, Costs for industry appear to have peaked. However, think Co’s val should correct post Adani transaction

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

Vedanta: The company said the board has approved second interim dividend of Rs 19.50 per equity share on face value of Re 1 per share for the financial year 2022-23. The dividend is amounting to Rs 7,250 crore. The record date for payment of dividend is July 27, 2022.

Grasim InsustriesThe Aditya Birla Group flagship company said the board has approved a foray into B2B e-commerce platform for the building materials segment with an investment of Rs 2,000 crore over the next 5 years. This investment adds a new high-growth engine with clear adjacencies within Grasim’s standalone businesses as also that of its subsidiaries and associate companies.

Artson Engineering: Artson Engineering receives equipment supply order from Hindalco. The company has received a purchase order of Rs 6.76 crore, from Hindalco Industries. The order is for supplying of equipment for manufacturing of two heat exchangers for Hindalco’s Dahej plant.

Source: Moneyontrol, Livemint,, Bloomberg, Investing

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