Market View 21st July 2022

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

Asian stocks wavered at the open Thursday as investors weighed signals from the latest corporate earnings and geopolitical risks in Europe. Equities dipped in Japan and fluctuated in South Korea and Australia. US futures slipped. A gauge of Chinese stocks traded in the US fell for the first time in three days. The S&P 500 posted its first back-to-back gain in almost two weeks, while the Nasdaq 100 outperformed. Treasuries were steady. At 7:07 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.02% to 16,494.5 points. The dollar held gains, while the euro steadied. Bitcoin was just above $23,000 after erasing gains on Tesla Inc.’s move to offload its crypto holdings.

Economic Calendar:

• USD : Initial Jobless Claims 21^st July, 2022
• USD : Manufacturing PMI (Jul) 22^nd July, 2022
• INR : FX Reserves, USD 22^nd July, 2022
• INR : M3 Money Supply 27^th July, 2022

Q1FY23 Result Today: CSB Bank, Cyient, Happiest minds Technology, Hindustan Zinc, IDBI Bank, JSW Energy, Kajaria Ceramics, PVR Ltd., RBL Bank

Q1FY23 Result:

Wipro Q1 FY23 (Consolidated, YoY) reported a 21% YoY decline in consolidated profit at Rs 2,563.6 crore for the quarter ended June 2022, hit by lower operating margin. Gross revenues jumped 18 percent YoY to Rs 21,528.60 crore and the sequential growth was 3.2%.

IndusInd Bank Q1 FY23 (Standalone, YoY) recorded a 61% YoY growth in profit at Rs 1,631 crore for the quarter ended June 2022 on significant drop in provisions. Net interest income grew by 16% YoY to Rs 4,125 crore during the quarter, and pre-provision operating profit increased by 10% YoY to Rs 3,431 crore. Net NPA dropped 3 bps QoQ to 0.67% in Q1.

Tata Communications Q1 FY23 (Consolidated, YoY) clocked a 83.5% YoY growth in consolidated profit at Rs 544.82 crore for the quarter ended June 2022, driven by other income. Revenue increased 5% YoY to Rs 4,310.52 crore during the same quarter.

Brokerage Radar:

CITI ON WIPRO: Downgrade to Sell from buy, TP cut to Rs 385 from Rs 505

Margin Reset; Growth over Profitability?; Disappointing 1Q will lead to EPS cuts & questions around ability to manage growth & profitability together, Lower FY23E/24E EPS Est by 10-11%

CLSA ON HAVELLS: O-P, TP Rs 1430,1Q PAT meaningfully below expectations

Rev above est with higher growth across segments, particularly Lloyd

Ebitda margin fell 320bps QoQ to 8.5%, lowest in more than a decade, Cables, ECD & Lloyd saw sharp drops in margins

CITI ON INDUSIND BANK: Buy, TP Rs 1150 , 1QFY23: Healthy Growth

Slippages from Restructured loans, Loan growth healthy (18% yoy / 3.7% qoq) despite external disruptions

Extent of slippages from restructured loans will be key to watch

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

State Bank of India: The country’s largest lender said its Central Board has approved raising of capital by way of issuance of Basel III compliant debt instrument in USD/INR and/or any other convertible currency, during FY23. The bank will raising fresh additional Tier 1 (AT1) capital of Rs 7,000 crore, and fresh Tier 2 capital of Rs 4,000 crore.

Adore Welding: The company has received a Letter of Award (LOA), from ONGC, Uran. The order includes design, engineering, supply, erection in brief and commissioning of demountable flare stack project on LSTK basis at their ONGC’s Uran plant. The order is worth Rs 145 crore and is going to be executed within 30 months.

DIC India: The company has received the balance of the final tranche of Rs 16.50 crore from Godrej Properties, following land sale. With this receipt, the transactions related to the sale of Mumbai land stands completed.

Source: Moneyontrol, Livemint,, Bloomberg, Investing

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