Market View 11th July 2022

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

Stocks in Asia rose on Monday after strong U.S. employment report on Friday and post-election rally in Japan. The possibility of more Covid curbs in China could, however, dampen sentiment. Japan shares climbed 1.5%, as ruling coalition expanded its majority in an upper house election. US and European equity futures fell while crude oil was volatile around $105 per barrel. At 6:40 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.13% to 16,206.50. Elsewhere, the pound fell as the race to replace Boris Johnson as UK premier heats up.

Economic Calendar:

• INR: WPI Inflation 14^th July 2022.
• INR: IIP Data 12^th July 2022.
• USD: OPEC Monthly Report 12^th July, 2022.
• USD: Core CPI 13^th July, 2022.

Q1FY23 Result Today: TCS

Tata Consultancy Services Q1 FY23 (Consolidated, QoQ) Revenue up 4.28% at Rs 52,758 crore Vs Rs 50,591 crore (Bloomberg Estimate: Rs 5 2,473.5 crore) EBIT fell 3.5% at Rs 12,186 crore Vs Rs 12,628 crore (Bloomberg Estimate: Rs 12,413) EBIT margin 23.1% Vs 24.96% (Bloomberg Estimate: 24%) Net profit fell 4.5% at Rs 9,478 crore Vs Rs 9,926 crore (Bloomberg Estimate: Rs 9,908-crore) Attrition inched up to 19.7% Vs 17.4% Declared interim dividend of Rs 8 per share of face value of Rs 1 each

MMTC Q4 FY22 (Consolidated, QoQ) Revenue fell 3% to at Rs 2,255.59 crore Vs Rs 2320.63 crore EBITDA Rs 512.52 crore Vs negative Rs 19.38 crore EBITDA margin 22.72% Vs -0.84% Net profit of Rs 118.38 crore Vs net loss of Rs 73.89 crore

Brokerage Radar:

CLSA ON REAL ESTATE: Upgrade Oberoi to O-P from U-P, TP Rs 925 Top buys– DLF & Prestige Housing sales & office leasing momentum moderated in 1QFY23 post strong growth in 2HFY22, driven by a slowdown in new supply & seasonality, yet do not see risk to growth in FY23.

JEFFERIES ON AVENUE SUPERMART: Hold, TP Raised to Rs 3900 1Q EBITDA beat est on better gross margin, which were at a 12-qtr high, pushing up EBITDA margin to near-record highs. Mix improved QoQ, but is yet to fully recover 3Y rev & EBITDA CAGR strong at 19%.

CITI ON TCS: Sell, TP Cut to Rs 3015 Inline Revs; Margins miss; TTM TCV +6% yoy With consensus FY23E/FY24E EBIT margins at 25%/25.5% (Citi: 23.7%/23.4%), see downgrades ahead.

NOMURA ON TCS: Reduce, TP Rs 2910 Facing brunt of weakening growth and margin headwinds Order book showing signs of flattening 1QFY23 results miss on all fronts Growth to lag Infosys, lower FY23-24F EPS by 1.4-2.5%.

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency

FIIs & DII:

News Update:

HDFC/HDFC Bank: The company received approval from Pension Fund Regulatory and Development Authority for the scheme of merger with HDFC Bank. The scheme is yet to receive approval from Competition Commission of India, the National Company Law Tribunal and company’s shareholders and creditors.

CCL Products: The company has forayed into plant-based meat products in India through the launch of its brand Continental Greenbird.

Dr Reddy’s: The company has launched Fesoterodine Fumarate rxtended-release tablets, a therapeutic generic equivalent to Toviaz, in the U.S. market.

Hindustan Aeronautics: The company along with France based Safran will be jointly develop engines for military helicopters. The new joint venture will develop and produce engines in India. The engines will be used in multi-role helicopters and the deck based ones used by the Indian Navy and the coast guard.

Bandhan Bank: The bank’s loans and advances rose 20% YoY to Rs 96,649 crore in quarter from April to June. Deposits also grew 20% to Rs 93,057 crore. CASA ratio stood at 43.2% on June 30.

 Zydus Lifesciences: The company has launched Sitaglyn and Siglyn (Sitagliptin), for the management of Type 2 diabetes at a 60% low cost than the originator.

Linde India: The company inaugurated its first-ever women operated Packaged Gas Plant in Trichy.

Indian Overseas Bank: The bank raised MCLR by 10 basis points across tenors effective from July 10.

PowerGrid: The company has been declared as the successful bidder under Tariff based competitive bidding to build the project comprises establishment of two 400kV DIC

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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