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

Stocks and U.S. futures dipped Monday amid intensifying bets on Federal Reserve interest-rate hikes that are also weighing on bonds. Australian debt slid and Treasuries remained lower. Shares in Japan, Australia and South Korea retreated, while S&P 500 and Nasdaq 100 futures edged lower. China resumed trading later after a weeklong holiday. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.11% to 17,470.50 as of 6:30 a.m. Oil’s ongoing rally paused at around $92 a barrel. Bitcoin climbed above $42,000 to the highest level in over two weeks.

Economic Calendar:

  • INR: RBI Credit Policy on 10th February, 2022.
  • INR:  M3 Money Market Supply on 10th  February 2022.
  • USD: Trade Balance on 8th February, 2022.
  • USD: API weekly crude on 9th February, 2022.

Earnings: National Aluminium Co. PB Fintech Minda Industries Indian Bank Jindal Stainless The Phoenix Mills TVS Motor Company Clean Science and Technology Glaxosmithkline Pharmaceuticals Castrol India Borosil Union Bank Of India JM Financial KPR Mill Tube Investments of India Indo Count Industries Camlin Fine Sciences Ami Organics NGL Fine-Chem Paisalo Digital Punjab & Sind Bank Bannari Amman Sugars Authum Investment & Infrastructure Sansera Engineering Chemcon Speciality Chemicals Butterfly Gandhimathi Appliances Gabriel India Gujarat Industries Power Co. MM Forgings Nucleus Software Exports Precision Wires India Quint Digital Media.

Results:

Tata Steel : Q3FY22Revenue up 0.65% at Rs 60,783.11 crore Vs Rs 60,387.13 crore  Net profit down 19.67% at Rs 9,572.67 crore Vs Rs 11,918.11 crore Ebitda down 3.4% at Rs 15,893.67 crore Vs Rs 16,456.12 crore  Margins at 26.14% Vs 27.25%

State Bank of India: Q3FY22 Net profit at Rs 8,432 crore Vs Rs 5,196 crore (YoY)  NII at Rs 30,687.4 crore Vs Rs 28,820 crore (YoY) GNPA at 4.5% Vs 4.9% (QoQ) NNPA at 1.34% Vs 1.52% (QoQ)

InterGlobe Aviation Q3FY22 (Standalone, YoY) Revenue up 89% at Rs 9,294.76 crore Vs Rs 4,909.98 crore  Net profit at Rs 128.45 crore Vs Net loss of Rs 626.58 crore (Bloomberg estimate: Rs 415.3 crore Net Loss) Ebitdar at Rs 1,905.24 crore Vs Rs 903.01 crore Margin at 20.5% Vs 18.4% Earnings per share was Rs 3.33 for the quarter.

Brokerage Radar:

JEFFERIES ON THERMAX: Upgrade to Buy from U-P, TP raised to Rs 2575 from Rs 790 Upgrade FY23E-24E EPS by 11-36% to reflect revenue recovery on +ve capex outlook & co’s waste to heat recovery opportunity Believe management is focused on taking a step forward in 1) Leveraging its brand to deepen existing relations through new products 2) Improving capital allocation 3) Margin improvement 4) Seeking new RE growth avenues with global tie-ups.

CLSA ON TATA STEEL: Buy, TP Rs 1820 3Q Ebitda largely in line; India profitability surprises positively Europe profitability impacted by higher energy costs Debt declines further, despite working capital build-up.

JEFFERIES ON LUPIN: U-P, TP Cut to Rs 737 from Rs 825 In-line rev driven by US beat, but still reported an EBITDA miss of 14% with EBITDA margins at 13.6%. Management guided to continued pain for next few qtrs Cut FY23/FY24 EPS est by 15%/4%.

GOLDMAN SACHS ON PAYTM: Upgrade to buy, TP Rs 1460 Strong growth outlook; risk reward attractive CMP implying multiple headwinds including MDR caps, a decline in market share for Paytm, & significantly slower ramp-up of co’s financial services, which view as unlikely Strong topline growth of 89% YoY in 3Q (11% of ahead of GSe) will help allay investor concerns around declining payments take rate in recent yrs In addition, co continues to gain market share across both UPI & non-UPI

International Markets:

U.S & Europe

Particulars 4th  Feb Chg Chg(%)
Nasdaq 14,098.01 219.19 1.58
Dow 35089.74 -21.42 0.06
FTSE 7,516.40 -12.44 -0.17
CAC 6,951.38 -54.25 -0.77
DAX 15,099.56 -268.91 -1.75
Dow Fut.* 34974.5 -115.7 -0.33

Asian markets:

Particulars 7th  Feb Chg. Chg(%)
SGX Nifty 17,424.00 -66 -0.38
Nikkei 27,203.66 -236.33 -0.86
Straits Times 3,337.92 6.51 0.2
Hang Seng 24,409.06 -164.23 -0.67
Shanghai 3,415.83 54.39 1.62

ADR Watch:

Particulars 4th  Feb Chg. Chg.(%)
Dr Reddy 58.14 -0.43 -0.73
HDFC Bank 68.72 -0.96 -1.38
ICICI Bank 21.47 -0.42 -1.92
Infosys 22.76 -1.01 -4.25
Tata Motor 33.11 -0.55 -1.63
Wipro 7.55 -0.28 -3.58

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 74.70 -0.22
Brent 93.16 0.41
Gold 1810.55  0.15
Silver 22.767 1.28

FIIs & DII

Particulars 4th   Feb 3rd  Feb
FIIs -2267.86 -1597.54
DIIs 621.98   -370.58  

News Update:

Reliance I: The company’s subsidiary Jio Platforms announced an investment of $15 million in Two Platforms Inc. for a 25% equity stake on a fully diluted basis.

Cipla: The company has entered into Share Subscription and Shareholder’s Agreement and Power Purchase agreement to acquire up to 32.49% stake on a fully diluted basis in AMP Energy Green Eleven, for setting up a captive solar power project in Maharashtra.
Godrej Properties: The company decided to cancel the proposed deal of Rs 400 crore to buy around 10% stake in DB Realty and invest Rs 300 crore for slum redevelopment, following feedback from its stakeholders and minority shareholders.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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