Ajit Mishra, VP - Research, Religare Broking:
Markets took a breather and gained over half a percent, tracking firm recovery in the US markets and upbeat earnings. Initially, the benchmark remained volatile however healthy buying in select index majors from banking, auto and telecom space helped the index to gradually inch higher as the day progressed. Consequently, the Nifty index settled at 17,277; up by 0.75%. The broader markets too ended with healthy gains of nearly a percent each.
Markets will react to the Fed meeting outcome in early trade on Thursday and we expect volatility to remain high, thanks to the scheduled monthly expiry. Keeping in mind the scenario, we reiterate our cautious view and suggest preferring hedged positions.
Vinod Nair, Head of Research at Geojit Financial Services.
After a week-long consolidation, domestic indices took a breather supported by low-level buying. Western markets also supported staging recovery following correction in oil markets, and as uncertainties over Fed policy and geopolitical tensions eased.
However, volatility is expected to linger as investors await the Fed’s final policy statement, providing clarity on the timeline of rate hikes. If the statement is hawkish as anticipated, we cannot ignore a bounce in the market.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty opened on a negative note on January 25 & witnessed follow through selling in the initial trade. It moved southward to test 78.6% retracement of the Dec – Jan rally, which is at 16825.
The key Fibonacci level induced the bulls into the action. As a result, the Nifty had a steep recovery as the day progressed. On the way up, the index marginally crossed a falling trendline & paused near the 20 hour moving average. So 17300-17330 is an immediate resistance zone beyond which the index can target 17500 in the short term. On the flip side, 17000 will continue to act as a crucial support on a closing basis.
S Ranganathan, Head of Research at LKP securities:
Investors bought into the 1000 point dip in the Sensex today morning as Banks & Autos led the recovery. As markets approach important near term events, the mood appeared circumspect although on the positive side the street is going into the Union Budget much lighter post the recent correction.
Afternoon trade witnessed investor appetite in stocks of PSE and advance - decline ratio ended the day on a positive note.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets have closed above 16950 which is a crucial medium-term support for the Nifty. If we need to bounce or make a V shape recovery, this is the place from where that can happen.
The next resistance is at 17400-17500. If we break 16950 on a closing basis, the markets can fall further to 16500-16550.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty witnessed a recovery during the day as it found support around 80% retracement of the previous rally from 16400 to 18350. A large green candle with a lower shadow has been formed on the daily chart which indicates buying at the lower levels of the day.
Going forward, the resistance at 17400 may challenge the bulls; however, a decisive move above that level may take the Nifty higher towards 17800. On the lower end support is visible at 17000/16800.
Market Close:
Benchmark indices made a smart recovery and ended higher in the highly volatile session on January 25 supported by the auto, power and banking names.
At close, the Sensex was up 366.64 points or 0.64% at 57,858.15, and the Nifty was up 128.90 points or 0.75% at 17,278.00. About 1935 shares have advanced, 1330 shares declined, and 84 shares are unchanged.
Maruti Suzuki, Axis Bank, SBI, IndusInd Bank and UPL were the top Nifty gainers, while losers included Wipro, Bajaj Finserv, Titan Company, Infosys and Tech Mahindra.
Except IT, all other sectoral indices ended in the green with PSU bank, power, auto and bank rose 2-4 percent. BSE midcap and smallcap indices gained 0.8-1 percent.
APL Apollo Tubes Q3
APL Apollo Tubes has posted 12.4 percent fall in consolidated net profit at Rs 115.6 crore versus Rs 132 crore, while revenue was up 24.2% at Rs 3,230 crore versus Rs 2,601 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 12.9% at Rs 202.3 crore versus Rs 232.1 crore and margin was down at 6.3% versus 8.9%, YoY.
APL Apollo Tubes was quoting at Rs 862.25, down Rs 76.05, or 8.11 percent on the BSE.
Lux Industries locked in 20% lower circuit
The share price of Lux Industries Ltd hit a 20 percent lower circuit after its executive director was banned for insider trading, raising concerns over corporate governance at the company.
On January 25, the market regulator Securities Exchange Board of India barred 14 entities for insider trading and ordered impounding of “ill-gotten gains” worth Rs 2.94 crore in the matter of Lux Industries.
Aditya Birla Sun Life AMC Q3 results:
Aditya Birla Sun Life AMC has reported 26.9 percent jump in its Q3 net profit at Rs 186.2 crore versus Rs 146.7 crore and revenue was up 19.9% at Rs 334.3 crore versus Rs 278.7 crore, YoY
Aditya Birla Sun Life AMC was quoting at Rs 522, down Rs 10.80, or 2.03 percent on the BSE.
Nifty Auto index rose 2 percent supported by the Maruti Suzuki, Bajaj Auto, Hero MotoCorp:
Star Cement Q3 results:
Star Cement has reported net profit of Rs 43.8 crore in the quarter ended December 2021 versus loss of Rs 1.74 crore in the same quarter last fiscal.
Revenue of the company was up 31% at Rs 554.9 crore versus Rs 423.4 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 19.6% at Rs 67.53 crore versus Rs 84 crore and margin was down at 12.17% versus 20%, YoY.
Star Cement was quoting at Rs 96.20, up Rs 2.80, or 3percent on the BSE.
Oyo to submit revised draft prospectus for Rs 8,430 cr IPO:
Softbank-backed Oyo is all set to file a revised draft document with the markets regulator SEBI as it moves ahead with its Rs 8,430-crore initial public offering, according to sources privy to the development.
The company has already received in-principle approval from Bombay Stock Exchange as well as National Stock Exchange, the sources added.
Oyo's move to file a revised prospectus comes amid questions on whether it will be able to go ahead with a listing in the current environment. Stocks of loss making internet companies have seen intense selling pressure in India and the US, as investors turn cautious.
BSE Bankex index rose 2 percent supported by the Bank of Baroda, Axis Bank, Bandhan Bank
Market at 3 PM
Benchmark indices made smart recovery from the low point of the day and trading at day's high level with Nifty above 17200.
The Sensex was up 375.48 points or 0.65% at 57866.99, and the Nifty was up 127.90 points or 0.75% at 17277. About 1893 shares have advanced, 1248 shares declined, and 68 shares are unchanged.
Ramesh Narasimhan, CEO Designate, Worldline India:
The government and the central bank have taken numerous steps to boost digital payments, expand the reach in the hinterland of the country. The Union Budget of 2021 earmarked Rs 1500 crore to promote digital modes of payment. Until now, it is the urban population that accounts for the bulk of digital payments.
The government should allocate more funds to connect the rural areas of the country to the mainline digital payment modes, help develop the infra for payments in offline mode to tap the 44 crore strong base of feature phone users. Likewise, the budget looks at ways to incentivize digital payments by MSMEs and B2B payment segments.
The digital payment and fintech industry needs to innovate to stay relevant with its international peers. The government should encourage the monetization of digital assets created by players. Likewise, the government should roll back its Zero MDR policy.
Worldline India fully endorses PCI's call to the government on MDR. It is a source of revenue for the payment processing industry, it fosters competition and innovation among players.
Most active stocks on NSE in terms of volumes
Pidilite Industries Q3
Net profit was down 19.5% at Rs 359.2 crore against Rs 446.4 crore (YoY). Revenue was up 24% at Rs 2,850.7 crore against Rs 2,299 crore (YoY). EBITDA slipped 14.3% at Rs 549.1 crore against Rs 640.8 crore (YoY).EBITDA margin at 19.3% against 27.9% (YoY).
European Markets Updates
KR Choksey on ICICI Bank:
The bank's performance in Q3FY22 remains above our expectations, and the bank continues to see a strong business growth momentum. Slippages for Q3FY22 moderate, further improving the asset quality for the quarter. The strong growth in fee income aided by a pickup in the business activities and improving credit card business traction resulted in a strong operating performance. The bank will likely benefit in the long run from its efforts to increase market share in advances while also strengthening the liabilities franchise. Compared to its peers, ICICI Bank is in a strong position across all metrics.
We have factored in CAGR 25.2% growth in profits over FY21-24E on an 17.3% CAGR growth in advances and 16.3% CAGR growth in NII. Since our last update, the shares of ICICI Bank have appreciated by ~8%. We have applied a P/ABV multiple of 2.5x to the FY24E ABV of Rs 316 per share, implying a SOTP valuation of Rs 955 per share (unchanged). It has a potential upside of 19.6% at the CMP of Rs 798 per share. As a result, we maintain our “BUY" rating on ICICI Bank's shares.
Market update at 2 PM: Sensex is up 140.25 points or 0.24% at 57631.76, and the Nifty added 56.10 points or 0.33% at 17205.20. Axis Bank, Bharti Airtel and Maruti Suzuki are the top gainers while Axis Bank, Reliance Industries and Bajaj Finance are the most active stocks.
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Suzuki India Q3 resultsMaruti Suzuki India has posted net profit at Rs 1,011 crore and revenue was at Rs 23,246 crore for the quarter ended December 2021.
At 13:50 hrs Maruti Suzuki India was quoting at Rs 8,203.15, up Rs 155.85, or 1.94 percent.
BSE Capital Goods Index added 1 percent led by the Praj Industries, Thermax, Bharat Electronics
IFCI board approves preferential issue up to Rs 100 crore to Govt
IFCI in its board meeting held on January 25 approved preferential issue of equity share capital aggregating upto Rs 100 crore to the promoters i.e., Govt. of India, subject to the approval of the shareholders, stock exchanges and such other regulatory authorities as may be applicable.
IFCI was quoting at Rs 15.15, up Rs 0.10, or 0.66 percent on the BSE.
Symphony Q3 results:
Symphony has posted 22.2 percent fall in its consolidated Q3 net profit at Rs 21 crore versus Rs 27 crroe and revenue was down 5.1 percent at Rs 205 crore against Rs 216 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 9.1% at Rs 30 crore against Rs 33 crore and margin was at 14.6% versus 15.3%, YoY.
Symphony was quoting at Rs 977.55, down Rs 45.45, or 4.44 percent on the BSE.
Federal Bank Q3 results:
Federal Bank has posted 29 percent jump in its Q3 net profit at Rs 521.7 crore versus Rs 404.1 crore and net interest income was up 7.1% at Rs 1,539 crore versus Rs 1,437 crore, YoY.
The Gross NPA was at 3.06% versus 3.24% and net NPA was at 1.05% versus 1.13%, QoQ.
Federal Bank was quoting at Rs 94.70, up Rs 2.85, or 3.10 percent on the BSE.
KRChoksey view on HDFC Life Insurance Company:
HDFC Life has delivered a strong business performance despite increasing concerns about the Omicron virus. Exide Life has become the wholly-owned subsidiary of HDFC Life. We expect the synergies to flow down from FY23E. We expect Exide Life merger to aid in VNB margin expansion and strengthening of the proprietary distribution channel for the company.
HDFC Life is focused on improving its distribution mix and emphasizing improving the agency and proprietary mix. We expect the merger with EXIDE Life to act as a positive trigger for HDFCLIFE in terms of product mix, distribution mix and geographical expansion.
We believe organic growth momentum to continue and improved margins supported by the diversified product and channel mix, its underwriting quality, its persistency demand and higher valuation than its peers.
We have factored in CAGR 15% in premiums, 19% in VNB, and 18% in EV over FY21-24E. We remain cautious on the losing market share seen since last few quarters.
We assign a 3.7x P/EV on FY24E EVPS of Rs 216.2 and a VNB multiple of 31x to HDFC Life and arrive at the weighted average target price of Rs 790 per share (unchanged) (50:50 weights on the P/EV and appraisal value methodology), implying a 25.8% upside potential over CMP. Accordingly, we maintain our buy rating on HDFC Life Insurance.
Market at 1 PM
Benchmark indices were trading lower with Nifty above 17000 supported by power stocks, while selling was seen in the IT stocks.
The Sensex was down 327.31 points or 0.57% at 57164.20, and the Nifty was down 72.90 points or 0.43% at 17076.20. About 1531 shares have advanced, 1569 shares declined, and 70 shares are unchanged.
Elara Capital on Axis Bank
With strong Q3FY22, the Axis Bank has made a comeback on all key parameters and reversed earlier disappointments. We expect the strength in earnings to continue in the following quarters and slippages to continue to decline. We are increasing our EPS estimate for FY23E by 21% led by higher growth and margins.
With an improved earnings outlook and macro recovery, we reiterate buy.
Axis is the most inexpensive large private bank trading at 1.7X PBV FY23E. We expect the bank to rerate and value the core banking business at 2.3x PBV FY23E. We increase our target price to Rs 985 from Rs 978 earlier.
Sterlite Technologies wins Rs 170 crroe deal from Power Grid
Sterlite Technologies announced a partnership with India’s largest power distribution company, Power Grid Corporation of India (PGCIL). Through this collaboration, compay will fulfil PGCIL’s requirement for high performance, integrated network management systems across their regional communications networks, company said in its release.
With this multi-year deal worth Rs ~ 170 crore, Sterlite Technologies further strengthens its relationship with PGCIL. As a part of its earlier engagements, STL has been supplying optical fibre cables and developed an IP-MPLS network for PGCIL, it added.
Sterlite Technologies was quoting at Rs 204.10, up Rs 3.45, or 1.72 percent on the BSE.
BSE IT index shed 1 percent dragged by the IndiaMART InterMESH, Quick Heal Technologies, NIIT
Market at 12 PM
Benchmark indices were trading lower amid volatility with Nifty holding above 17000 led by the power, auto and banking names.
The Sensex was down 348.48 points or 0.61% at 57143.03, and the Nifty was down 79.20 points or 0.46% at 17069.90. About 1583 shares have advanced, 1481 shares declined, and 73 shares are unchanged.
PCL
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successful bidder in 6 geographical areas in 19 districts for city gas distributionBPCL has emerged as the successful bidder in 6 Geographical Areas (GA) in 19 districts, for setting up City Gas Distribution (CGD) Networks, post evaluation of technical and financial bids, in the recently concluded 11th bidding round of PNGRB.
Bharat Petroleum Corporation was quoting at Rs 379.10, up Rs 6.10, or 1.64 percent.
Burger King Q3 earnings:
Burger King India has posted net loss at Rs 15.1 crore in the quarter ended December 2021 against loss of Rs 29 crore in the same quarter last fiscal.
Revenue of the company was up at Rs 279.8 crore versus Rs 163.1 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA) was at Rs 32.6 crore against Rs 15.2 crore and margin was up at 11.6 percent versus 9.3 percent, YoY.
Burger King India was quoting at Rs 131.55, down Rs 1.40, or 1.05 percent on the BSE.
Nifty PSU Bank index rose 1 percent led by the Canara Bank, Bank of Baroda, J&K Bank
Market update at 11 AM: Sensex is down 459.28 points or 0.80% at 57032.23, and the Nifty shed 116.90 points or 0.68% at 17032.20.
Indiamart Intermesh invests Rs 61.55 crore in Simply Vyapar Apps
IndiaMART has announced its participation in the Series B Investment Round of Simply Vyapar Apps Private Limited, of Rs 217.6 crore. The round has been led by WestBridge Capital, along with the participation of existing investor India Quotient. Vyapar’s valuation post this round shall stand at approximately Rs 883 crore.
As part of the transaction, IndiaMART has acquired shares for an aggregate investment of Rs 61.55 crore, via a mix of primary and secondary share purchases. Post this round, IndiaMART shall hold 27% in Vyapar on a fully diluted basis.
Indiamart Intermesh touched a 52-week low of Rs 5,258.40 and was quoting at Rs 5,294, down Rs 548.60, or 9.39 percent on the BSE.
Gold muted as Fed caution counters Ukraine risks
Gold prices were steady on Tuesday, as concerns about a faster pace of U.S. Federal Reserve policy tightening countered safe-haven demand fuelled by escalating Ukraine tensions.
Spot gold was little changed at $1,840.24 per ounce by 0323 GMT. U.S. gold futures were also steady at $1,840.70.
Key factors affecting gold prices are risk-off sentiment due to geopolitical tensions, rising Treasury yields on Fed tapering expectations and hedge funds reducing net long positions, said Michael Langford, director at corporate advisory AirGuide.
Rupee Opens:
Indian rupee opened flat at 74.57 per dollar on Tuesday against previous close of 74.56.
“Rupee came under pressure but continued to consolidate in a broad range despite sharp sell-off in domestic equities on expectation that the Federal Reserve in its policy meeting will be more hawkish than anticipated earlier. The dollar strengthened against its major crosses ahead of the Fed meeting," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.
We expect the momentum for the USDINR would continue to remain positive and it could quote in the range of 74.05 and 74.80, he added.
Gaurav Garg, Head of Research, Capitalvia Global Research:
Investors are anxious about the situation in Ukraine, and the outcome of the Fed's scheduled policy review, thus Asian markets are trading in the red on Tuesday.
Our research suggests that the levels of 16800-16750 may act as important support levels in the market. If the market sustained above the levels of 16800, we can expect the market to trade in the range of 16800-17300
BSE Power index rose 1 percent supported by the Adani Transmission, JSW Energy, Adani Green
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
In the short term, 16950 is the last resort of support for this market. If that breaks on a closing basis, we might plummet further to 16500-16550.
On the upside, the resistance level is at 17400-17500. Traders can utilize upward corrections to sell this market.
Market at 10 AM
Benchmark indices made smart recovery from the early sell-off with Nifty back above 17,100 level led by metal stocks
The Sensex was up 92.51 points or 0.16% at 57584.02, and the Nifty was up 41.50 points or 0.24% at 17190.60. About 1769 shares have advanced, 1159 shares declined, and 77 shares are unchanged.
Nifty metal index gained 1 percent led by the Welspun Corp, SAIL, Tata Steel
Results today
Maruti Suzuki India, Cipla, Allsec Technologies, APL Apollo Tubes, Astec Lifesciences, Best Agrolife, Burnpur Cement, Can Fin Homes, CarTrade Tech, Cosmo Films, Deccan Cements, Emkay Global Financial Services, Federal Bank, Finolex Industries, Indiabulls Real Estate, ICRA, Macrotech Developers, Max India, Pidilite Industries, Raymond, RPG Life Sciences, Skipper, Snowman Logistics, SRF, Star Cement, Sundaram Multi Pap, Swaraj Engines, Symphony, TeamLease Services, Torrent Pharmaceuticals, United Spirits, and Uttam Galva Steels.
Lodha Group to absorb up to 50% stamp duty for homebuyers until March 31
Mumbai-based real estate developer Lodha Group will absorb up to 50% of the currently applicable stamp duty for all bookings across residential and commercial projects for completed registration on or before March 31, 2022, the company said on January 24.
The announcement aims to provide homebuyers an opportunity to take the plunge towards their dream home with 50% savings leading to a 100% joyous living experience across the world’s finest developments, it said in a statement.
