Vinod Nair, Head of Research at Geojit Financial Services
The response by Adani had a mixed effect on the stock group and market. The saga is likely to continue as a hanging risk in the minds of the investors in the medium-term. To expect a scientific assessment report either by a strong independent third party or government is dim in the short-term. Now the focus of the market will be on budget and fed policy.
Rupee Close:
Indian rupee closed flat at 81.50 per dollar against previous close of 81.52.
Market Close:
Benchmark indices ended on positive note in the highly volatile session on January 30.
At Close, the Sensex was up 169.51 points or 0.29% at 59,500.41, and the Nifty was up 44.70 points or 0.25% at 17,649. About 1531 shares have advanced, 1965 shares declined, and 162 shares are unchanged.
Adani Enterprises, Bajaj Finance, UltraTech Cement, Bajaj Finserv and HCL Technologies were among the biggest gainers on the Nifty, while losers included Power Grid Corporation, JSW Steel, Bajaj Auto, Larsen and Toubro and IndusInd Bank.
On the sectoral front, capital goods, metal, power and oil & gas down 1-5 percent, while information technology index up 1 percent.
The BSE midcap and the smallcap indices ended marginally lower.
Gold slips as investors await central bank meetings
Gold prices edged lower on Monday as investor attention moved to several central bank meetings this week for more clarity on their rate hike strategies, with key focus on the U.S. Federal Reserve.
Spot gold was 0.2% lower at $1,923.35 per ounce, as of 0924 GMT. U.S. gold futures fell 0.3% to $1,922.90.
Dollar seesaws ahead of busy central bank week, euro higher after Spain CPI
The dollar languished near an eight-month low on Monday ahead of a slew of central bank meetings this week, while higher Spanish inflation data supported the euro ahead of euro area readings on Wednesday.
The U.S. dollar index, which measures the currency against a basket of its peers including the euro, was flat at 101.88, having hit an eight-month low of 101.50 last week.
Mazagon Dock Shipbuilders Q3 Results:
Mazagon Dock Shipbuilders has posted 68.7 percent jump in its Q3 net profit at Rs 337.3 crore against Rs 199.9 crore, YoY.
CLSA On UltraTech Cement
-Outperform rating, target at Rs 7,800 per share
-Even on a muted pricing increase outlook, assume company’s FY24 EBITDA/t to rise
-Attractive risk-reward despite assuming much lower profitability growth & valuation multiple
Oil falls as rate hikes loom, Russian flows stay strong
Oil fell on Monday, giving up earlier gains, as looming interest rate hikes by major central banks and signs of strong Russian exports offset rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
Investors expect the Federal Reserve to raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a shock.
Brent crude fell 29 cents, or 0.3%, to $86.37 a barrel by 0910 GMT while U.S. West Texas Intermediate crude dropped 52 cents, or 0.7%, to $79.16.
SRF Q3 Earnings:
SRF has posted a net profit of Rs 511 crore in the quarter ended December 2022 versus Rs 505.5 crore in a year ago period.
SRF was quoting at Rs 2,152.45, up Rs 22.05, or 1.04 percent.
Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas
Indian Rupee depreciated by 0.07% on weak domestic markets and huge FII outflows. However, weak Dollar index and decline in crude oil prices cushioned the downside. FPO related foreign inflows also supported Rupee at lower levels.
We expect Rupee to trade with a slight negative bias amid a weak tone in the domestic markets and expectations that US Dollar may rise on safe haven appeal.
Month-end Dollar demand from importers and selling pressure from FIIs may also put downside pressure on Rupee. Traders may remain cautious ahead of India’s union budget and US FOMC meeting later this week. USDINR spot price is expected to trade in a range of Rs 81 to Rs 82.20.
Welspun India Q3 results
Welspun India has recorded 68 percent declined in net profit for the quarter ended December 2022 at Rs 42.4 crore versus Rs 132.4 crore and revenue was down 22.7% at Rs 1,869 crore versus Rs 2,418.2 crore, YoY.
Market at 3 Pm
Benchmark indices erased all the intraday losses and trading higher with Nifty above 17600.
The Sensex was up 137.21 points or 0.23% at 59468.11, and the Nifty was up 30.60 points or 0.17% at 17634.90. About 1318 shares have advanced, 2036 shares declined, and 143 shares are unchanged.
Dwarikesh Sugar Industries Q3
Dwarikesh Sugar Industries has posted 63.5 percent fall in its Q3 net profit at Rs 10.5 crore versus Rs 28.9 crore and revenue was down 36.2% at Rs 383.8 crore versus Rs 601.4 crore, YoY
Dwarikesh Sugar Industries was quoting at Rs 90.60, down Rs 3.10, or 3.31 percent.
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| IndusInd Bank | 1,075.75 | -3.64 | 6.85m |
| Power Grid Corp | 211.50 | -3.53 | 14.44m |
| JSW Steel | 699.05 | -3.09 | 1.91m |
| Bajaj Auto | 3,827.30 | -2.78 | 542.59k |
| Larsen | 2,105.55 | -2.51 | 2.86m |
| ONGC | 143.95 | -2.51 | 10.23m |
| SBI Life Insura | 1,221.00 | -2.34 | 1.40m |
| HUL | 2,553.60 | -2.24 | 2.13m |
| Hindalco | 468.80 | -2.13 | 4.33m |
| Tata Steel | 118.30 | -1.95 | 41.03m |
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Bajaj Finance | 6,006.45 | 4.27 | 2.23m |
| Adani Enterpris | 2,859.80 | 3.56 | 18.80m |
| UltraTechCement | 6,890.00 | 2.6 | 608.71k |
| Bajaj Finserv | 1,340.00 | 1.96 | 4.02m |
| HCL Tech | 1,132.05 | 1.47 | 2.66m |
| Coal India | 225.55 | 1.42 | 4.53m |
| NTPC | 168.55 | 1.35 | 26.11m |
| Infosys | 1,534.60 | 1.02 | 5.27m |
| Asian Paints | 2,750.15 | 1.01 | 905.52k |
| Wipro | 402.05 | 1 | 2.79m |
VRL Logistics Q3 Earnings:
VRL Logistics has reported 18.7 percent fall in its Q3 net profit at Rs 49.2 crore versus Rs 60.5 crore and revenue was up 13.3% at Rs 681.5 crore versus Rs 601.4 crore, YoY.
Punjab National Bank Q3 Results
Punjab National Bank has posted 44 percent fall in its Q3 net profit at Rs 628.9 crore versus Rs 1,126.8 crore and net interest income (NII) was up 17.6% at Rs 9,179.4 crore versus Rs 7,803.2 crore, YoY.
| Index | CMP Chg(%) | YTD(%) 1 Week(%) | 1 Month(%) 1 Year(%) |
|---|---|---|---|
| NIFTY 50 | 17551.15 -0.3 | 1.14 -3.13 | -3.06 2.63 |
| NIFTY BANK | 39916.05 -1.06 | 12.50 -6.78 | -7.14 5.91 |
| NIFTY Midcap 100 | 30132.65 -0.36 | -1.02 -3.65 | -4.37 1.10 |
| NIFTY Smallcap 100 | 9225.30 -0.19 | -18.28 -3.57 | -5.20 -16.07 |
| NIFTY NEXT 50 | 38534.35 -1.82 | -8.73 -8.09 | -8.66 -5.17 |
Vardhman Special Steels Q3
Net profit was up 46.% at Rs 28.5 crore against Rs 19.5 crore (YoY). Revenue was up 1.3% at Rs 400.6 crore against Rs 395.3 crore (YoY). EBITDA went down 51.5% at Rs 36.3 crore against Rs 74.8 crore (YoY). Margin at 9.1% against 19.4% (YoY). Vardhman Special Steels was quoting at Rs 310.20, up Rs 3.20, or 1.04 percent on BSE. It has touched an intraday high of Rs 315.55 and an intraday low of Rs 300.55.
NCC promoter releases pledge on 12.90 lakh shares on January 27
Mold-Tek Packaging Q3
Net profit at Rs 9.2 crore against Rs 1.6 crore (YoY). Revenue jumped 71.7% at Rs 40.7 crore against Rs 23.7 crore (YoY). EBITDA at Rs 13 crore against Rs 2.4 crore (YoY). EBITDA margin at 32% against 10.1% (YoY). Mold-Tek Packaging was quoting at Rs 1,023.15, up Rs 24.00, or 2.40 percent on BSE. It has touched an intraday high of Rs 1,040.95 and an intraday low of Rs 1,003.45. It was trading with volumes of 5,728 shares, compared to its five day average of 2,605 shares, an increase of 119.92 percent.
GAIL India Q3
Standalone net profit went down 84% at Rs 245.7 crore against Rs 1,537 crore QoQ. Standalone revenue slipped 8.1% at Rs 35,365 crore against Rs 38,479 crore QoQ. Standalone EBITDA went down 85.2% at Rs 261 crore against Rs 1,765 crore QoQ. Standalone margin at 0.7% against 4.6% QoQ.
Adani Enterprises FPO updates
The public issue of Adani Enterprises has managed to garner 7.81 lakh shares bids against offer size of 4.55 crore equity shares subscribing 2 percent so far on January 30, the second day of bidding. Retail investors remain in forefront, buying 3 percent shares of the allotted quota, followed by high networth individuals who have subscribed for 1 percent shares of the portion set aside for them. Qualified institutional buyers (QIB) have bought 4,576 shares of the 1.28 crore shares reserved for them.
Exide Industries Q3
Net profit grew 11.1% at Rs 198.1 crore against Rs 178.3 crore (YoY). Revenue was up 7% at Rs 3,538 crore against Rs 3,312 crore (YoY). EBITDA was up 5% at Rs 400 crore against Rs 381 crore (YoY). EBITDA margin at 11.3% against 11.5% (YoY). Exide Industries was quoting at Rs 179.35, down Rs 3.70, or 2.02 percent on BSE. It has touched an intraday high of Rs 184.60 and an intraday low of Rs 177.20.
Market update at 2 PM: Sensex is down 313.02 points or 0.53% at 59017.88, and the Nifty shed 98.30 points or 0.56% at 17506.
Gold rangebound as market focus turns to Fed meeting
Gold prices traded in a relatively tight range on Monday, while market participants globally awaited a slew of central bank meetings with the main focus on the U.S. Federal Reserve.
Spot gold edged 0.2% higher to $1,931.07 per ounce, as of 0717 GMT. U.S. gold futures were up 0.1% at $1,930.50.
At the end of the Fed's Jan. 31-Feb. 1 meeting, traders are broadly expecting the U.S. central bank to scale back its rate hikes to 25 basis points (bps) from 50 bps in December.
Huge put unwinding seen at 17,600 and 17,500 in the last 30 minutes, as the base is shifting lower. Put writers are crowding at 17,450 level.
LT Foods Q3 results
LT Foods has reported 33.5 percent rise in its Q3 net profit at Rs 95.3 crore versus Rs 71.4 crore and revenue was up 30% at Rs 1,778.5 crore versus Rs 1,368.2 crore, YoY.
LT Foods was quoting at Rs 110.15, down Rs 1.05, or 0.94 percent.
Manish Jeloka, Co-head of Products & Solutions, Sanctum Wealth
This will be the last full budget by the Government before the 2024 elections and under normal circumstances this would have been a populist one. However, given the fiscal constraints and need to stimulate growth in the face of a slowing global economy, the Government will have its task cut out. We believe that there will be continued focus on fiscal consolidation, domestic manufacturing, and infrastructure spending which would in line with the last union budget.
Moreover, increased revenue mobilization would be a key focus area for the Government, and we could see increased thrust on disinvestments of PSUs and monetization of land bank. On the personal tax front there could be marginal changes in tax slabs or increase in 80C limits while we may see selective increase in import tariffs to shore up Government revenues and help domestic manufacturing sector. In addition the Insurance sector could also see some relief or impetus for faster growth.
BSE Realty index fell 1 percent dragged by Godrej Properties, Prestige Estate, DLF
HFCL gets purchase orders aggregating to Rs 206.67 crore
HFCL has received the purchase orders aggregating to Rs 206.67 crore from Reliance Projects & Property Management Services Limited and Reliance Retail Limited for supply of Optical Fiber Cables to one of the leading Private Telecom Operators of the Country.
HFCL was quoting at Rs 67.90, down Rs 0.15, or 0.22 percent.
Max Financial Services Large Trade | 4.75 lakh shares (0.14% equity) worth Rs 39.71 crore change hands at average of Rs 835.20 per share
Max Financial Services was quoting at Rs 833.35, down Rs 5.85, or 0.70 percent.
Nifty Bank index fell 1 percent dragged by IndusInd Bank, Axis Bank, SBI
Bajaj Finserv Q3 earnings:
Bajaj Finserv has recorded 45 percent jump in its Q3 net profit at Rs 1,782 crore versus Rs 1,225.8 crore and revenue was up 24% at Rs 21,755 crore versus Rs 17,587 crore, YoY.
Market at 1 PM
Benchmark indices were trading lower with Nifty around 17500
The Sensex was down 317.28 points or 0.53% at 59013.62, and the Nifty was down 103.80 points or 0.59% at 17500.50. About 1416 shares have advanced, 1852 shares declined, and 165 shares are unchanged.
As the day progressed, on this week’s contracts, put writers were shifting their position lower. 550 level remains the biggest support while 600 level is the battlezone.
CLSA View On DLF
-Buy rating, target at Rs 470 per share
-Reported strong presales in Q3, highest in 9 years & ahead of estimate
-Management maintained FY23 presales guidance of Rs 8,000 crore
-Driven by a key project launch in Q4, believe it can significantly surpass guidance
DLF was quoting at Rs 351.55, down Rs 4.40, or 1.24 percent.
CSB Bank Q3 Results
CSB Bank has reported 5.3 percent jump in its Q3 net profit at Rs 156 crore against Rs 148.2 crore and net interest income (NII) was up 15.1% at Rs 350 crore versus Rs 304 crore, YoY.
CSB Bank was quoting at Rs 241.35, down Rs 3.95, or 1.61 percent.
Vascon Engineers Q3 earnings:
Vascon Engineers has recorded 43.6 percent fall it its Q3 net profit at Rs 16 crore versus Rs 28.4 crore, while revenue was up 49% at Rs 254 crore against Rs 170.6 crore, YoY.
Vascon Engineers was quoting at Rs 31.70, down Rs 0.60, or 1.86 percent on the BSE.
Welspun India and Disney announce partnership for UK and Europe
Welspun India announced its brand licensing agreement with The Walt Disney Company for the EMEA region.
The license will give Welspun the rights to design, develop, manufacture and distribute complete range of home textiles products leveraging Disney’s vast franchises and characters across Disney, Pixar, Marvel and Lucas brands.
Welspun India was quoting at Rs 67.65, down Rs 0.85, or 1.24 percent on the BSE.
Ajmera Realty Q3 net profit up 9% at Rs 10.6 crore
Ajmera Realty has posted 9 percent increase in its Q3FY23 net profit at Rs 10.6 crore versus Rs 9.7 crore and revenue was up 15% at Rs 80.6 crore against Rs 70.1 crore, YoY.
Sun Pharma acquires three brands from Aksigen Hospital Care
Sun Pharmaceutical Industries today announced that it has acquired three brands viz. Disperzyme (Trypsin BP 96 mg, Bromelain 180 mg & Rutoside Trihydrate 200 mg), Disperzyme-CD (Trypsin BP 48 mg, Bromelain 90 mg & Rutoside Trihydrate 100 mg) and Phlogam (Trypsin BP 48 mg, Bromelain 90 mg & Rutoside Trihydrate 100 mg) from Aksigen Hospital Care.
All the brands are approved by the Drugs Controller General of India (DCGI) for post-operative inflammation in patients undergoing minor surgery and dental procedures.
Sun Pharmaceutical Industries touched 52-week high of Rs 1,071.90 and was quoting at Rs 1,059, up Rs 15.40, or 1.48 percent on the BSE.
Laurus Labs Q3 Earnings:
Laurus Labs share price added 3 percent aftercompany posted 32 percent jump in its Q3FY23 net profit at Rs 203 crore against Rs 153.7 crore and revenue was up 50% at Rs 1,545 crore versus Rs 1,028.7 crore, YoY.
BSE Metal index shed 1 percent dragged by JSW Steel, Jindal Steel and Tata Steel
Steel Strips Q3 Results:
Steel Strips Wheels has reported 2.6 percent jump in its Q3 net profit at Rs 43.8 crore against Rs 42.7 crore and revenue was up 9.1% at Rs 938.4 crore versus Rs 860.5 crore, YoY.
Steel Strips Wheels was quoting at Rs 140.65, up Rs 0.50, or 0.36 percent.
Market at 12 PM
Indian benchmark indices were trading flat in the volatile session.
The Sensex was up 29.82 points or 0.05% at 59360.72, and the Nifty was up 2.50 points or 0.01% at 17606.80. About 1535 shares have advanced, 1680 shares declined, and 165 shares are unchanged.
Manoj Purohit, Partner & Leader – Financial Services Tax, BDO India
Though recently there has been some net outflow in terms of FPI investment, foreign investors are still preferring the FPI route for their investments as India continues to be a preferred investment destination in terms of overall growth and stability.
There has been overall development in the capital market like the stock exchanges moving to T+1 settlement, SEBI introducing information databases and repositories on Municipal Bonds.
Similarly, the fiscal budget 2023 is likely to provide further acceleration for the foreign investment inflows as demonstrated by the Government in its previous budgets.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
A budget expectation this year is relief for income tax payers. The basic exemption limit of Rs 2.5 lakh crores was fixed in 2014 and, therefore, needs revision.
Raising the exemption limit to Rs 4 lakh crores is likely. This relief is likely to be offered in the ‘ no exemption regime’ since the government wants this regime to take off.
Rationalisation of the capital gains tax regime is another expectation. The current system is complex with different tax rates and holding periods for different investments. This needs simplification.
