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

U.S. equity futures declined and Asian stocks fell Friday after a late-day reversal on Wall Street. S&P 500 and Nasdaq 100 futures retreated. The tech gauge erased a near 2% rally Thursday before ending in the red. Japan, Australia and South Korea markets declined. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.86% to 17,646.50 as of 7:00 a.m. Meanwhile, a report that Washington is allowing some Baltic states to send U.S.-made weapons to Ukraine stoked geopolitical concerns. Treasury yields declined and a dollar gauge fluctuated. Oil was lower amid a surprise gain in U.S. crude stockpiles. Bitcoin fell to $40,700.

Economic Calendar:

  • INR: Bank Loan Growth on 21st January, 2022.
  • INR: Bank Deposit Growth on 21st January 2022.
  • USD: US Lending Index on 21st January, 2022.
  • USD: US Baker Hughes on 21st January, 2022.

 

Earnings: Reliance, Kajaria,Ramco,Hindustan Zinc,JSW Steel,PVR, HDFC Life Insurance, Polycab Ltd

Results:

HUL:Net profit of India’s largest consumer goods maker increased 19% over the preceding year to Rs 2,297 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 2,227.3-crore consensus estimate

Asian Paints: Revenue rose 26% to Rs 8,527.2 crore, against the Rs 8,418.4-crore forecast. Operating profit came in at Rs 1,542.3 crore against Rs 1,787.9 crore a year ago and Rs 1,650.4-crore estimate. Margin contracted to 18% from 26.3%, against the projected 19.6

Havells Ltd: Home appliance manufacturer Havells  a near 14 percent quarterly increase in its total income during the quarter ended December 31, 2021. In its quarterly earnings report, the company reported a total income of Rs 3,701.05 crore as against Rs 3,254.30 in Q2FY22

Brokerage Radar:

NOMURA ON BAJAJ AUTO: Buy, TP Rs 4307 3Q in line; margins to likely improve Steady global demand EV scooters a potential upside Current valuation at 13x FY24F core EPS is attractive given high FCF yield of 5.5% (FY23F) & 90% payout

MORGAN STANLEY ON CYIENT: Underweight, Target Price cut to Rs 900 from Rs 950 Rev performance lagged significantly vs most mid-cap peers, although margin execution good Until growth gap narrows, val discount could remain deep Solid margin performance so far in F22 but do see headwinds forF23

MORGAN STANLEY ON MPHASIS: OVERWEIGHT, Target Price Rs 3900 F3Q22: 9% QoQ Direct Channel Growth + Strong Deal Wins + Stable Margins = Good quality Results Decline in DXC channel lower than expectations (-9.5% QoQ vs. MSe of -19.6% QoQ) New deal wins at US$335mn were significantly better

JEFFERIES ON HAVELLS: Buy, Target Price Rs 1600 Healthy Revenue Growth, However, Margin Miss Impacts PAT OPM at 12.1% (-399bp), impacted by elevated commodity costs & lag effect of price hikes Also, ad-spend doubled YoY at 2.7% of sales now (1.6% YoY).

NOMURA ON ASIAN PAINTS: Buy , Target Price raised to Rs 3875 Strong demand to continue, margins to get better 3Q beat on volume/value while margins miss; GPM pressure to ease q-q as pricing kicks in Expect strong sales growth to continue.

MORGAN STANLEY ON HINDUSTAN UNILEVER: Equalweight, Target Price cut to Rs 2766 from Rs 3012 3Q beat est & were slightly ahead of consensus Management sounded optimistic on company’s performance (growth, market share gains) but cautioned about near-term operating environment.

International Markets:

U.S & Europe

Particulars  20th Jan Chg Chg(%)
Nasdaq 14,340.26 -166.64 -1.15
Dow 34715.39 -313.26 -0.89
FTSE 7,585.01 -4.65 -0.06
CAC 7,194.16 21.18 0.3
DAX 15,912.33 102.61 0.65
Dow Fut.* 34549.4 -167.0 -0.48

Asian markets:

Particulars 21th Jan Chg. Chg(%)
SGX Nifty 17,668.50 -131.5 -0.74
Nikkei 27,377.44 -395.49 -1.42
Straits Times 3,296.32 1.5 0.05
Hang Seng 24,973.48 21.13 0.08
Shanghai 3,537.48 -17.58 -0.49

ADR Watch:

Particulars     20th Jan Chg. Chg.(%)
Dr Reddy 61.44 -0.91 -1.46
HDFC Bank 69.58 -0.57 -0.81
ICICI Bank 21.51 0.08 0.37
Infosys 23.68 -0.79 -3.23
Tata Motor 34.03 -0.27 -0.79
Wipro 8.09 -0.15 -1.82

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 74.50 0.10
Brent 86.56 -2.03
Gold 1841.45 -0.06
Silver 24.442 -1.11

FIIs & DII

Particulars 19th Jan 19th Jan
FIIs -4679.84 -2704.77
DIIs 769.26   -195.07  

News Update:

IIFL Finance : IIFL Finance accepts bids worth INR 10 crore on 10-year bonds at 8.50 percent coupon

Graphite Ltd: Electric vehicles have been increasing in popularity all across the globe. Boosted by the spur to change to lower and zero carbon emission vehicles, nations have been trying to increase the adoption of EVs. But even as EV brands like Tesla are selling a record number of vehicles supply chains issues threaten future adoption.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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