View on market: Stay Cautious, be with quality business:
Asian stocks Friday recovered some of the losses sparked by the Federal Reserve’s pivot to tighter monetary policy, while U.S. equity futures climbed after strong Apple Inc. earnings aided sentiment. Shares rose in Japan and Australia but South Korea fluctuated. Contracts on the tech-heavy Nasdaq 100 outperformed S&P 500 futures following a rally in Apple Inc. in extended trading on record sales. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.08% to 17,153.50 as of 7:15 a.m. Treasuries were steady and the yield curve flatter. Oil advanced and gold struggled.
Economic Calendar:
- INR: Bank Loan Growth on 28st January, 2022.
- INR: Bank Deposit Growth on 28st January 2022.
- USD: Core Price Index on 28th January, 2022.
- USD: Manufacturing PMI on 1st February, 2022.
Earnings: Dr Reddys,,Atul, Britannia, Tata Coffee, Vedanta, MRPL, Larsen& Turbo, Chambal Fertilizers, Marico, UTI AMC Ltd
Results:
Indus Towers: Q3FY22 (Consolidated, YoY) Revenue up 71% at Rs 6,927.4 crore Vs Rs 4,060.7 crore Net profit up 60% at Rs 1,570.8 crore Vs Rs 979.10 crore Ebitda up 77% at Rs 3,694.10 crore Vs Rs 2,082.7 crore Margins at 53.3% Vs 51.3%.
Bharat Heavy Electricals: Ltd Q3FY22 (Consolidated, YoY) Revenue up 15% at Rs 5,135.9 crore Vs Rs 4,451.36 crore Net profit at Rs 27.02 crore Vs Net loss of Rs 217.44 Ebitda gain of Rs 89.21 crore Vs Ebitda loss of Rs 180.41 crore.
Punjab National Bank: Q3FY22 (Standalone) NII down 7% at Rs 7,803.24 crore Vs Rs 8,345.75 (YoY) Net profit at Rs 1,126.78 crore Vs Rs 506.03 crore (YoY) Provision up 3% QoQ at Rs 3,353.55 crore GNPA at 12.88% Vs 13.63% (QoQ) NNPA at 4.90% Vs 5.49% (QoQ).
Dalmia Bharat: Q3FY22 (Consolidated, QoQ) Revenue at Rs 2,731 crore Vs Rs 2,737 crore Net profit down 48% at Rs 95 crore Vs Rs 182 crore Ebitda down 40% at Rs 411 crore Vs Rs 685 crore Margins at 15% Vs 25%.
RBL Bank: Q3FY22 Net profit up 6.1% at Rs 156 crore Vs Rs 147 crore (YoY) (Bloomberg estimate: Rs 75.7 crore) NII up 11.2% at Rs 1,010.42 crore Vs Rs 908.15 crore (YoY) Gross NPA ratio at 4.84% Vs 5.40% (QoQ) Net NPA ratio at 1.85% Vs 2.14% (QoQ).
Brokerage Radar:
UBS on SRF: Buy, TP Raised to Rs 3100 Management expects 4Q to be better than 3Q which was best qtr in terms of profitability In 3Q, revenue grew by 56% YoY, ahead of expectations, driven by strong performance across segments. Expect SRF to continue to perform well across segments, & think growth & margin upsides are not fully priced in Increase FY22-24 EPS estimates by 4-7%.
CLSA ON L&T: Buy, TP raised to Rs 2450 Begun well in this capex cycle by winning marque projects & on divesting assets, but it will be key to return excess cash to enhance ROE Its twin themes of turning around loss-making biz & reallocating capital to improve ROE still has steam.
MORGAN STANLEY ON PNB: EW, TP Rs 53 PBT 5% below MSe owing to higher-than-expected credit costs (driving higher coverage QoQ) Slippages moderated QoQ Core PPoP did well, & 34% above MSe due to sharp improvement in margins/lower costs Loan book grew 3% QoQ.
GOLDMAN SACHS ON BHEL: Sell, TP Rs 27 Reported PAT at Rs 143mn vs Gse of Rs-478mn With management noting that the Rs300bn revenue level is necessary for BHEL to break-even, see downside risk to FY23-24 est
International Markets:
U.S & Europe
| Particulars | 27th Jan | Chg | Chg(%) |
| Nasdaq | 13,352.78 | -189.34 | -1.4 |
| Dow | 34160.78 | -7.31 | -0.02 |
| FTSE | 7,554.31 | 84.53 | 1.13 |
| CAC | 7,023.80 | 41.84 | 0.6 |
| DAX | 15,524.27 | 64.88 | 0.42 |
| Dow Fut.* | 34401.5 | 240.2 | 0.70 |
Asian markets:
| Particulars | 28th Jan | Chg. | Chg(%) |
| SGX Nifty | 17,153.00 | -14.5 | -0.08 |
| Nikkei | 26,720.06 | 549.76 | 2.1 |
| Straits Times | 3,268.01 | 7.98 | 0.24 |
| Hang Seng | 23,529.61 | -277.39 | -1.17 |
| Shanghai | 3,361.43 | -32.82 | -0.97 |
ADR Watch:
| Particulars | 28th Jan | Chg. | Chg.(%) |
| Dr Reddy | 55.33 | -2.76 | -4.75 |
| HDFC Bank | 64.78 | -1.21 | -1.83 |
| ICICI Bank | 20.88 | 0.01 | 0.05 |
| Infosys | 21.81 | -0.58 | -2.59 |
| Tata Motor | 32.7 | 0.95 | 2.99 |
| Wipro | 7.08 | -0.23 | -3.15 |
Commodities & Currency:
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.07 | 0.39 |
| Brent | 88.65 | -0.05 |
| Gold | 1797.25 | 0.23 |
| Silver | 22.782 | 0.47 |
FIIs & DII
| Particulars | 25th Jan | 25th Jan |
| FIIs | -6266.75 | -7094.48 |
| DIIs | 2881.32 | 4534.53 |
News Update:
TVS Motor: The company has acquired 75% stake in the Swiss E-Mobility Group through 1.15 lakh equity shares acquired at 525.58 CHF (Swiss Franc) on cash consideration. It plans to acquire the balance 25% stake in SEMG by next year.
Centrum: The company.y’s step down subsidiary Unity Small Finance Bank took charge of 110 branches of PMC Bank. Unity Small Finance Bank will immediately repay 96% of PMC Bank’s depositors who have deposits worth Rs 5 lakh or less. The banks’ shareholders have committed capital of over Rs 3,000 crore through cash and warrants.
Lupin: The company has entered a promotional agreement with Exeltis USA Inc.to promote SOLOSEC along with Exeltis’ existing line of Women’s Health products.
Motilal Oswal: The company declared interim dividend of Rs 7 per share.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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