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

U.S. equity futures and Asian stocks declined Tuesday after volatility on Wall Street stoked by concerns over Federal Reserve policy tightening and geopolitical tension. S&P 500 and Nasdaq 100 futures retreated about 1%, while an Asia-Pacific share gauge hit the lowest point since November 2020. U.S. stocks erased a 4% drop to close up Monday on high volumes in a wild turnaround from a selloff that rivaled any of the last two years. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.48% to 16,975.50 as of 7:45 a.m. Treasuries were mixed, with the benchmark 10-year yield inching lower. Oil stabilized after getting swept up in the bout of risk aversion. In cryptocurrencies, Bitcoin pared some of its gains from Monday.

Economic Calendar:

  • INR: Bank Loan Growth on 28st January, 2022.
  • INR: Bank Deposit Growth on 28st January 2022.
  • USD: New Homes Sales on 25th January, 2022.
  • USD: Fed Interest Rate on 27th January, 2022.

Earnings: Maruti Suzuki, APL Apollo, Skipper,United Spirits, ICRA, Star Cements, Macratech Developers Ltd

Results:

Axis Bank Q3FY22 Net Profit: Rs 3,614 crore vs Rs 1,116.6 crore (YoY) (Bloomberg Estimate: 3,216 crore) NII at Rs 8,653 crore Vs Rs 7,373 crore (YoY) GNPA at 3.17% Vs 3.53% (QoQ) NNPA at 0.91% Vs 1.08% (QoQ)

SBI Cards and Payment Services: Q3FY22 (Consolidated, YoY) Revenue up 20% at Rs 2,889.46 crore Vs Rs 2,408.37 crore Net profit up 84% at Rs 385.78 crore Vs Rs 209.66 crore Gross NPA at 2.40% Net NPA at 0.83%

Deepak Nitrite: Q3FY22 (Consolidated, YoY) Revenue up 39% at Rs 1,722.27 crore Vs Rs 1,234.69 crore Net profit up 12% at Rs 242.46 crore Vs Rs 216.56 crore Ebitda up 5% at Rs 351.85 crore Vs Rs 335.04 crore Margins at 20.4% Vs 27.1%

The Ramco Cements: Q3FY22 (Consolidated, YoY) Revenue up 16% at Rs 1,552.50 crore Vs Rs 1,343.89 crore Net profit down 63% at Rs 75.62 crore Vs Rs 206.71 crore Ebitda down 43% at Rs 228.92 crore Vs Rs 398.15 crore Margins at 14.7% Vs 29.6%

Brokerage Radar:

CREDIT SUISSE ON SBI CARDS : Outperformer, Target Price cut to Rs 1100 (vs Rs 1350) Strong growth in spends; share of revolvers remains low While overhang remains from potential RBI regulations on credit card MDR, co believes impact should be contained Cut EPS by 14%/8%/6% in FY22/23/24E.

NOMURA ON SBI CARDS: Buy, TP Cut to Rs 1250 from Rs 1400, factoring in MDR risks in multiple Results were largely in line ROEs scaled up to 21% in 3Q22 with revolver book bottoming & core credit cost adjusting for prudential provisions has begun to normalize.

Axis BK Review

CITI ON AXIS BANK : Buy, TP Rs 100,Delivered on much-awaited improvement on growth & NIM in this qtr 1.7x Mar’23 P/B, offers val disc to peers,Lower FY22/23 est. by 6%/5% on higher opex/lower treasury income,BK guided towards 16-16.5% in medium term

NOMURA ON AXIS BANK: Buy, TP Rs 980 3Q – getting better Loan growth NIM & asset quality improves, higher costs drives lower core PPOP growth Pencil in +4.7%/+2.7%/1.6% increases in EPS est over FY22-24F.

International Markets:

U.S & Europe

Particulars 24th Jan Chg Chg(%)
Nasdaq 13,855.13 86.21 0.63
Dow 34364.50 99.13 0.29
FTSE 7,297.15 -196.98 -2.63
CAC 6,787.79 -280.8 -3.97
DAX 15,011.13 -592.75 -3.8
Dow Fut.* 34090 -274.9 -0.80

Asian markets:

Particulars 25th Jan Chg. Chg(%)
SGX Nifty 16,944.50 -112.5 -0.66
Nikkei 27,027.23 -561.14 -2.03
Straits Times 3,241.93 -41.42 -1.26
Hang Seng 24,279.88 -376.58 -1.53
Shanghai 3,491.17 -32.94 -0.93

ADR Watch:

Particulars 24th Jan Chg. Chg.(%)
Dr Reddy 58.98 -0.72 -1.21
HDFC Bank 67.46 -1.47 -2.13
ICICI Bank 21.09 0.06 0.29
Infosys 22.94 -0.47 -2.01
Tata Motor 31.51 -1.11 -3.4
Wipro 7.62 -0.24 -3.05

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 74.56 0.19
Brent 85.82 0.46
Gold 1840.75 -0.05
Silver 23.820 0.08

FIIs & DII

Particulars 24th Jan 21st Jan
FIIs -3751.58 -3148.58
DIIs 74.88   269.36  

News Update:

Reliance Industries: Reliance Industries has started discussions with global investors to raise $3 billion in equity to fund its ambitious plans for the renewable energy business. The bulk of the new funding will go to Reliance New Energy Solar, which intends to build solar capacity of at least 100 GW by 2030.

Future Retail:The company said that it missed interest payments due on 5.6% Senior Secured Notes (USD).

IndiaMart: The company has entered into an agreement to invest Rs. 61.55 crores in Simply Vyapar Apps in its Series B Investment Round by subscribing 1,809 Series B compulsorily convertible preference shares and purchasing 444 equity shares.

Hero Motocorp: The company has approved an investment of Rs 700 crore in one or more tranches, in Hero FinCorp.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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