Market View 26th July 2022

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

Asian equities were muted at the open on Tuesday ahead of the looming Federal Reserve interest-rate hike on Wednesday, amid moderation in crude oil prices to $96 per barrel and key corporate earnings. Futures rose in Japan, Australia and Hong Kong, while US futures declined after a choppy Wall Street session. At 6:40 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.27% to 16,574. Elsewhere, bitcoin dropped below $22,000.

Economic Calendar:

• USD : New Home Sales (Jun) 26^th July, 2022
• USD : CB Consumer Confidence (Jul) 26^th July, 2022
• INR : Federal Fiscal Deficit (Jun) 29^th July, 2022
• INR : M3 Money Supply 27^th July, 2022

Q1FY23 Result Today: Aditya Birla Sunlife AMC, Asian Paints, Bajaj Auto, KEI Industries, L&T, Relaxo Footwears, Sanofi India, Shoppers Stop, Symphony, Tata Power, UTI AMC, Union Bank, Ujjivan Small Finance Bank

Q1FY23 Result:

Tata Steel Q1 FY23(Consolidated, YoY) reported nearly 13% YoY decline in consolidated profit at Rs 7,765 crore for the quarter ended June 2022, impacted by higher input cost and tax expenses. Revenue during the quarter increased by 18.6% YoY to Rs 63,430 crore during the quarter. Consolidated EBITDA stood at Rs 15,047 crore, despite the sharp rise in input costs especially coking coal and gas prices in Europe, down by 7 percent YoY.

Axis Bank Q1 FY23 (Consolidated, YoY) clocked 91% YoY growth in profit at Rs 4,125 crore driven by lower provisions, but other income fell 11% and pre-provision operating profit declined 5% YoY. Net interest income grew by 21% to Rs 9,384 crore during the same period.

Tech Mahindra Q1 FY23 (Consolidated, YoY) reported a 24.8% sequential decline in consolidated profit at Rs 1,132 crore for the quarter ended June 2022 impacted by weak operating performance. Revenue grew by 4.9% QoQ to Rs 12,708 crore during the same period and EBITDA fell 10% QoQ to Rs 1,880 crore. Dollar revenue grew by 1.5% QoQ to $1,632 million and revenue growth in constant currency was 3.5% QoQ.

Brokerage Radar:

JPM ON AXIS BANK: Neutral, TP cut to Rs 780 from Rs 880

Loan growth disappoints with 1% q/q decline; Retail does better, corporate slower

NIM improvement guidance maintained

ROAs at 1.4% remain 60bps lower vs larger peers, which could remain a drag on vals

GS ON TECH MAHINDRA: Neutral, TP Rs 979

Cut FY23-26E EPS estimates by up to 6% due to lower margins to a/c for 1QFY23

EBIT margin at 11.0% missed GSe est at 11.6% due to which EBIT missed GSe by c.2%

MACQUARIE ON TATA STEEL: O-P, TP Rs 1670

Consol EBITDA beat– EU surprises +vely

While EU EBITDA/ton surprised +vely, as lagged impact of a steel price hike was reflected during qtr, expecting profitability to decline in 2H FY23 given a recent correction of EU steel prices

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

Lupin: The pharma company has received approval from US FDA for its abbreviated new drug application (ANDA), Azilsartan Medoxomil tablets, to market a generic equivalent of Edarbi tablets of Azurity Pharmaceuticals Inc, in the US. The product will be manufactured at Lupin’s facility in Nagpur, India.

Sun Pharmaceutical Industries: Life Insurance Corporation of India has offloaded 4.8 crore equity shares or 2% stake in the company via open market transactions during May 17-July 22, 2022. With this, LIC’s stake in the company reduced to 5.02%, from 7.02% earlier.

Strides Pharma Science: The company said the Committee of Directors approved offering for subscription, on a private placement basis, up to 1,500 senior, secured, rated, unlisted, redeemable, non-convertible debentures (NCDs) of face value Rs 10 lakh each aggregating up to Rs 150 crore.

Source: Moneyontrol, Livemint,, Bloomberg, Investing

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