Market View 1st August 2022

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

US futures fell and Asian stocks were mixed Monday, amid challenges swirling around China and a reminder from Federal Reserve officials that their key objective is to fight high inflation. S&P 500 and Nasdaq 100 futures shed about 1%, while bourses in Japan, South Korea and Australia made modest headway. The caution follows the best month for global shares since 2020, which pared their slump this year to 16%. At 7:00 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — traded 0.20% higher at 17,200 points. The dollar was steady, oil retreated and Bitcoin slid.

Economic Calendar:

• USD : ISM Manufacturing PMI (Jul) 01^st Aug, 2022
• USD : JOLTs Job Openings (Jun) 02^nd Aug, 2022
• USD : ISM Non-Manufacturing PMI (Jul) 03^rd Aug, 2022
• INR : Trade Balance 02^nd Aug, 2022
• INR : Interest Rate Decision 05^th Aug, 2022

Q1FY23 Result Today: ITC, UPL, Max Financial, Varun Beverages, PDS, Escorts Kubota, Ramco Cement, Kansai Nerolac, Castrol India, Zomato, Indo Count, Alkyl Amines, Bajaj Consumer, Barbeque Nation

Q1FY23 Result:

Bank of Baroda Q1 FY23 (Consolidated, YoY) reported a 79.4% YoY growth in standalone profit at Rs 2,168 crore for the quarter ended June 2022, despite fall in other income and pre-provision operating profit. The significant decline in bad loans provisions aided the bottom line. Net interest income grew 12% YoY to Rs 8,838.4 crore in Q1FY23, with credit growth at 18 percent and 10.9% YoY increase in global deposits.

IDFC First Bank Q1 FY23 (Consolidated, YoY) recorded highest-ever standalone profit of Rs 474.33 crore in Q1FY23, against a loss of Rs 630 crore in the corresponding period of the previous fiscal. The increase in core operating income and fall in provisions aided the profitability, with the sequential growth in profit at 38%. Net interest income grew 26% to Rs 2,751.1 crore YoY during the quarter, with 39 bps YoY improvement in net interest margin at 5.89% for the quarter. But there was 38 bps decline in net interest margin on a sequential basis

Cipla Q1 FY23 (Consolidated, YoY) recorded a 4% YoY decline in consolidated profit at Rs 686 crore for the quarter ended June 2022 as EBITDA fell by 15 percent YoY to Rs 1,143 crore and revenue fell by 2.3 percent to Rs 5,375 crore in the same period. India business declined 8.4% to Rs 2,483 crore and North America business grew by 15.5% to Rs 1,199 crore in Q1FY23.

Brokerage Radar:

NOMURA ON CIPLA: Buy, TP Rs 1195; 1Q: Ahead of est; Higher other operating income & lower R&D spend contributed to beat; Decline in domestic sales by 8% lower than est; Despite high-cost pressure, delivered steady gross margin & EBITDA at 21.3% in 1HFY23, 160bp higher than est.

MS ON DLF: OW, TP Rs 417; 1Q Beat – Executing Well on All Fronts; Well positioned to benefit from strong resi demand with a deep pipeline of new launches & ready inventory; Overall focus remains on FCF generation & de-leveraging

CLSA ON TORRENT PHARMA: Buy, TP Rs 1880; 1Q largely in-line: Ebitda margins improve 4ppt QoQ to 30.3%; Double-digit growth in India continues & a strong outlook for Brazil; Co awaiting US FDA inspections at its Dahej & Indrad plants

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

Dr Reddy’s Laboratories: entered into a licensing agreement with Slayback Pharma to obtain exclusive rights in the first-to-file ANDA for the private label version of Lumify in the US.

Zee Entertainment Enterprises: received no-objection letters from BSE and National Stock Exchange of India, for the proposed Composite Scheme of Arrangement amongst Zee Entertainment, Bangla Entertainment, and Culver Max Entertainment (formerly Sony Pictures Networks India).

Yes Bank: is going to raise Rs 8,898.47 crore from The Carlyle Group and Verventa Holdings (affiliate of Advent) by selling 10 percent stake each.

Source: Moneyontrol, Livemint,, Bloomberg, Investing

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