Weekly-Market-View-Elite-Wealth

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

Asian stocks rose Wednesday amid a recovery in U.S. shares spurred by the corporate earnings outlook and signs that Federal Reserve officials favor measured monetary-policy tightening. Equities advanced in Japan and Australia, among the few markets open in Asia due to the Lunar New Year holiday. U.S. Treasuries were little changed and a dollar gauge held a retreat. The Singapore-traded SGX Nifty an early indicator of India’s Nifty 50 Index’s performance, climbed 0.67% to 17,715 as of 7:45 a.m. Oil steadied near a seven-year high ahead of a meeting of OPEC and its allies on boosting output. Gold wavered at $1,800 an ounce. Bitcoin traded around the highest level in two weeks. India’s benchmark bond yields surged to the highest in two and a half years after the government unveiled plans to issue record amount of bonds in the next financial year.

Economic Calendar:

  • INR: RBI Credit Policy on 9th February, 2022.
  • INR: Trade Balance on 2nd February 2022.
  • USD: OPEC Monthly Report on 2nd February, 2022.
  • USD: Non Payrolls Data on 4th February, 2022.

Earnings: HDFC, Adani Green Energy, Adani Total Gas, Jubilant FoodWorks, Tata Consumer Products, Mahindra & Mahindra Financial Services, Zee Entertainment Enterprises, Alkyl Amines Chemicals, Apollo Tyres, Dabur India, Balaji Amines, Blue Star, IIFL Wealth Management, Indian Overseas Bank, JK Lakshmi Cement, GE T&D India, Eclerx Services, Future Consumer, Gillette India, Timken India, Triveni Engineering &Industries, Acrysil, Sheela Foam, Asian Star Co, Avadh Sugar & Energy, Bajaj Consumer Care, Balrampur Chini Mills, BLS International Services, DCW, Dhanuka Agritech, Lloyds Steels Industries, Maharashtra Seamless, MAS Financial Services, Meghmani Organics, Paushak, Reliance Capital, V-Guard Industries, Sandhar Technologies, Somany Ceramics
Results:

Tech Mahindra: Q3FY22 (Consolidated, QoQ) Revenue up 5% at Rs 11,450.80 crore Vs Rs 10,881.30 crore Net profit up 2% at Rs 1,368.50 crore Vs Rs 1,338.70 crore Ebit up 3% at Rs 1,697.90 crore Vs Rs 1,652.20 crore Margin at 14.8% Vs 15.2%.

Adani Ports and SEZ :Q3FY22 (Consolidated, YoY) Revenue up 1% at Rs 3,797.10 crore Vs Rs 3,746.49 crore Net profit down 6% at Rs 1,472.26 crore Vs Rs 1,561.47 crore Ebitda down 10% at Rs 2,418.61 crore Vs Rs 2,694.19 crore Margin 63.7% Vs 71.9%

Indian Hotels Co. Q3FY22 (Consolidated, YoY) Revenue up 98% at Rs 1,111.22 crore Vs Rs 559.86 crore Net profit at Rs 95.96 crore Vs Net loss of Rs 133.22 crore Ebitda gain of Rs 321.75 crore Vs Ebitda loss of Rs 16.74 crore.

Brokerage Radar:

INVESTEC ON ITC : Buy, TP Rs 258 Status quo provides stronger FY23E visibility Expect incremental price hike in FY23E to have a greater pass through to EBIT Further, stable taxes also aid legal cig industry.

CLSA ON BUDGET: May accelerate sector rotation from more expensive consumption & IT space to investment-focussed & less expensive banks, infra & commodities Infra, cement, capital goods & ITC gainers, Domestic industry earmarked for 68% of defence budget- +ve for HAL, Bharat Forge & L&T A YoY cut in on rural employment guarantee may be seen -vely for cement, consumer & autos like M&M & Hero Motocorp.

UBS ON TECH MAHINDRA: Sell, TP Rs 1260 Q3 revs in-line, margins miss; slower hiring likely to cause concern Management noted that it is committed to deliver broad-based profitable growth backed Barring a sector-wide rally, expect a -ve reactio

International Markets:

U.S & Europe

Particulars 1st Feb Chg Chg(%)
Nasdaq 14,346.00 106.12 0.75
Dow 35371.90 -32.3 -0.09
FTSE 7,535.78 71.41 0.96
CAC 7,099.49 100.29 1.43
DAX 15,619.39 148.19 0.96
Dow Fut.* 35372.40 -33.8 -0.09

Asian markets:

Particulars 2nd  Feb Chg. Chg(%)
SGX Nifty 17,713.50 116 0.66
Nikkei 27,497.60 419.12 1.55
Straits Times 3,249.59 3.26 0.1
Hang Seng 23,802.26 252.18 1.07
Shanghai 3,361.44 -32.81 -0.97

ADR Watch:

Particulars 1st Feb Chg. Chg.(%)
Dr Reddy 57.18 -0.32 -0.56
HDFC Bank 68.68 0.05 0.07
ICICI Bank 21.89 0.16 0.74
Infosys 23.52 -0.05 -0.21
Tata Motor 33.4 -0.36 -1.07
Wipro 7.72 0.03 0.39

 

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 74.79 0.24
Brent 89.32 0.17
Gold 1798.90 -0.15
Silver 22.628 0.15

FIIs & DII

Particulars 1st Feb 31st Jan
FIIs -29.79 -3624.48
DIIs 1597.70   3648.65  

News Update:

Future Retail: The company has failed to pay Rs. 3,494.56 crore to consortium banks and lenders under the One Time Resolution agreement. The amount was due on Dec. 31.

Tata Teleservices: The company has changed its decision to convert AGR related interest into equity. Following a communication with Department of Telecommunication has informed the company that the NPV of the interest which is eligible for conversion into equity is only Rs.195.22 crore as against company’s calculation of Rs.850 crore. Therefore, the company has now opted for deferment of 4 years.

PNB Housing: The company’s chairman CH S.S. Mallikarjuna Rao has resigned consequent to completion of his tenure as MD & CEO.

BPCL: The company has approved proposal for evaluating the option of putting up a Polypropylene unit at Kochi Refinery and to discontinue the Polyols project due to revised cost estimates are higher than the original estimate.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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