Market View 27th January 2023

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

India’s equity markets will reopen after a break on Republic Day, while mainland China remains closed for the Lunar New Year holiday. Asian markets follow the U.S. equities higher on Friday after a rally in tech shares helped investors shake off mixed economic data, but the risk of recession persists. Equities in Australia rose as trading resumed after Thursday holiday, Japanese and Hong Kong markets also gained. The S&P 500 closed at the highest level in more than a month, reflecting a jump in tech stocks. The Nasdaq 100 rose 2% to the highest level since September, led by an 11% gain for Tesla Inc. as Elon Musk teased potential for the carmaker to produce 2 million vehicles this year. At 5:52 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.41% to 18,027.5. Crude price were above $87 per barrel levels, while Bitcoin was trading around $23,000-level.

Economic Calendar:

• USD : Pending Home Sales (MoM) (Dec) on 27^th January, 2023
• USD : CB Consumer Confidence (Jan) 31^st January, 2023
• INR : Bank Loan Growth on 27th  January, 2023
• INR : Infrastructure Output (YoY) (Dec) on 31st January, 2023

Q3FY23 Results Today: Bajaj Finance, Vedanta, Aarti Drugs, Aditya Birla Sun Life AMC, CMS Info Systems, Glenmark Life Sciences, Godfrey Phillips India, Sterlite Technologies, Zenotech Laboratories, AIA Engineering

Brokerage Radar:

MS ON DR REDDY’S : OW,  TP Rs 5099; Strong F3Q results were driven largely by gRevlimid, which should continue for next several quarters. Core business is stable. M&A is a focus area given strong b/s

MS ON CIPLA: OW, TP Rs 1336; Cipla continues to enrich its US pipeline with inhalers and peptides; There is good visibility of 3-4 complex launches p.a. for next 3 yrs, driving growth momentum

NOMURA ON TATA MOTORS: Buy, TP Rs 508; 3Q margins improve across segments; JLR to benefit from rising chip supply; India CV strategy to reduce disc working well; Commentary: JLR – 4QFY23 vol may be 85k & improve further in FY24F

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Enterprises: The company raised Rs 5,984.9 crore from allocating 1.83 crore equity shares to 33 anchor investors under the anchor portion of its Rs 20,000-crore FPO at Rs 3,276 per share.

Future Retail: Kishore Biyani, founder of Future Group, resigned from the position of executive chairman and director of the company.

Happiest Minds Technologies: The company acquired 100% stake in Sri Mookambika Infosolutions for a consideration of Rs 111 crore.

SJVN: The company sold its entire shareholding in Bhutanese joint venture Kholongchhu Hydro Energy as per directions from India’s Ministry of Power, for Rs 354.71 crore.

ONGC: Appointed chairman Arun Kumar Singh as the chief executive officer.

LTIMindtree: The company partnered with Microsoft and Duck Creek Technologies to build a solution that will enable insurers to migrate their on-premises core systems to the cloud quickly and efficiently.

Tata Motors: Consolidated profit for the quarter at Rs 2,958 crore against loss of Rs 1,516 crore in same period last year on better topline as well as operating performance. Revenue from operations at Rs 88,489 crore for the quarter grew by 22.5% over corresponding period last fiscal, with better realisation at JLR as well as standalone businesses. At the operating level, EBITDA at Rs 9,853 crore surged 33% YoY on strong show JLR & standalone business, with margin expansion of 90 bps YoY at 11.1 percent for the quarter aided by standalone business.

DLF: Registered a 37% YoY growth in consolidated profit at Rs 519 crore for quarter ended December FY23 on a low base and lower finance cost. Revenue from operations at Rs 1,495 crore for the quarter fell by 3.5% compared to same period last fiscal, but new sales bookings at Rs 2,507 crore increased by 24% YoY. At the operating level, EBITDA fell by 8.5% YoY to Rs 477.2 crore and margin declined by 170 bps YoY to 31.9% for the quarter.

 Source: Moneycontrol, Bloomberg Quint, Investing

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