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

Asian stocks fell Monday and U.S. equity futures rebounded as traders weighed concerns about tightening Federal Reserve monetary policy. Shares fell in Japan, South Korea and Australia after one of the worst stretches for global shares last week since the pandemic began. Gains in S&P 500 and Nasdaq 100 contracts held out the hope of some respite. The dollar was steady. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.79% to 17,497.50 as of 8:30 a.m. The Fed on Wednesday is expected to signal a March liftoff in interest rates and balance-sheet reduction later this year to help fight inflation. In the volatile cryptocurrency sector, bruised Bitcoin stabilized around $36,000 in the wake of a plunge over the past three days. Digital coins have shed more than $1 trillion in value since a November high. Meanwhile, traders are monitoring U.S.-Russia tension over Ukraine.

Economic Calendar:

  • INR: Bank Loan Growth on 28st January, 2022.
  • INR: Bank Deposit Growth on 28st January 2022.
  • USD: Manufacturing Index on 24th January, 2022.
  • USD: Service PMI on 24th January, 2022.

Earnings: Axis Bank, HDFC AMC, Ramco Cement, Zensar, Burger King, Oriental Hotels, Burger King India, SBI Cards and Payment Services, Shriram Transport Finance Ltd

Results:

Reliance Industries : The company reported a sharply higher consolidated profit at Rs 20,539 crore in Q3FY22 against Rs 14,894 crore in Q3FY21. Revenue rose to Rs 2,09,823 crore from Rs 1,37,829 crore YoY.

Vodafone Idea : The company posted a loss of Rs 7,230.9 crore in Q3FY22 against a loss of Rs 7,132.3 crore in Q2FY22, revenue rose to Rs 9,717.3 crore from Rs 9,406.4 crore QoQ.

Bandhan Bank : The bank reported a higher profit at Rs 859 crore in Q3FY22 against Rs 632.6 crore in Q3FY21, net interest income rose to Rs 2,124.7 crore from Rs 2,071.7 crore YoY.

CSB Bank : The bank reported a higher profit at Rs 148.25 crore in Q3FY22 against Rs 53.05 crore in Q3FY21, net interest income increased to Rs 303.34 crore from Rs 251.18 crore YoY.

Tanla Platforms : The company reported a higher profit at Rs 158 crore in Q3FY22 against Rs 93.52 crore in Q3FY21, revenue jumped to Rs 884.92 crore from Rs 654.11 crore YoY.

Brokerage Radar:

CITI ON SBI Life: Buy,with Target Price of Rs 1550 Continued its growth momentum with strong VNB growth of +56% yoy (+29% 2y CAGR), driven by +31% yoy growth in total APE (16% 2y CAGR) and 430bps yoy expansion in VNB margin to 25.7% Top pick in life insurers.

CLSA ON BANDHAN BANK: Upgrade to O-P from sell, TP Raised to Rs 340 vs Rs 245 Tough 3-4 yrs behind; better placed cyclically 3Q indicates a turning point with collections improving to 97% in its MFI portfolio including east India states.

MORGAN STANLEY ON ICICI BANK: Overweight, Target Price Raised to Rs 1125 vs Rs 1025 Strong qtr, with core PPoP growth of 23% YoY & lower-than-expected credit costs (at 100bps, 15% below MSe). Market share gains remain strong with improving core RoEs – this should drive sustained re-rating.

MORGAN STANLEY ON RELIANCE: Overweight, Target Price Rs 2926 5% earnings beat driven by higher ARPUs, higher upstream gas EBIDTA & a significant pickup in retail margins O2C EBIDTA slightly below Telecom subscriber churn was a key _ve Overall earnings upgrade story is firmly in play.

BERNSTEIN ON RELIANCE: Outperform, Target Price Rs 2830 Solid beat, Strong performance across all segments Net profit of INR185.5bn or INR28.08/sh was 23% higher than consensus est O2C profits rose for 6th consecutive qtr on stronger fuel margins & record throughput.

International Markets:

U.S & Europe

Particulars 21th Jan Chg Chg(%)
Nasdaq 13,768.92 -385.1 -2.72
Dow 34265.37 -450.02 -1.30
FTSE 7,494.13 -90.88 -1.2
CAC 7,068.59 -125.57 -1.75
DAX 15,603.88 -308.45 -1.94
Dow Fut.* 34479.3 213.9 0.62

Asian markets:

Particulars 24th Jan Chg. Chg(%)
SGX Nifty 17,497.00 -140 -0.79
Nikkei 27,371.11 -151.15 -0.55
Straits Times 3,282.60 -12.26 -0.37
Hang Seng 24,695.20 -270.35 -1.08
Shanghai 3,518.77 -3.8 -0.11

ADR Watch:

Particulars     21th Jan Chg. Chg.(%)
Dr Reddy 59.7 -1.74 -2.83
HDFC Bank 68.93 -0.65 -0.93
ICICI Bank 21.03 -0.48 -2.23
Infosys 23.41 -0.27 -1.14
Tata Motor 32.62 -1.41 -4.14
Wipro 7.86 -0.23 -2.84

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 74.42 -0.11
Brent 87.71 0.72
Gold 1841.45 0.28
Silver 24.245 -0.71

FIIs & DII

Particulars 21st Jan 20th Jan
FIIs -3148.58 -4679.84
DIIs 269.36   769.26  

News Update:

Ultratech Cement : The company’s officials will meet Fidelity International, and Fullerton Fund Management today

Titagarh Wagons : The company’s subsidiary in Italy TitagaTrh Firema S.p.A. has signed the framework agreement for design, manufacture, supply and ten years of maintenance of 38 trainsets of Metro for Lazio Regione, Italy. The total value of the framework agreement is 282 million euros (equivalent to Rs 2,380 crore).

Arvind Limited : The company’s officials will meet analysts and investors on January 27, to discuss financial performance.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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