Indian benchmark indices made a positive start on Friday as Sensex gained 500 points at open to trade above 57,700, while Nifty jumped above 17,200. Mahindra & Mahindra made a solid start with 3.78% gain. L&T, Dr Reddy’s Labs, Kotak Mahindra Bank, Britannia Industries, Vedanta, 3i Infotech, Aptus Value Housing Finance, Arvind SmartSpaces, Asahi India Glass, Atul, AU Small Finance Bank, Bajaj Healthcare, Bharat Electronics, Blue Dart Express, CARE Ratings, Central Bank of India, Chambal Fertilisers, Chemplast Sanmar, Crompton Greaves Consumer Electricals, Deepak Fertilisers, Dixon Technologies, Equitas Small Finance Bank, Happiest Minds Technologies, Karnataka Bank, Marico, Max Financial Services, Info Edge, Oberoi Realty, Suzlon Energy, Tata Coffee, United Breweries, UTI Asset Management Company, and Zenotech Laboratories will release their Q3 earnings on January 28.
HDFC Bank, SBI, Axis Bank, ICICI Bank cut Sensex gains
Spicejet up 7% after SC order
Kotak Mahindra Bank reports 15% rise in Q3 net profit, asset quality improves
Private lender Kotak Mahindra Bank has witnessed a 15% rise in its standalone net profit for the quarter ending December 2021 at ₹2,131 crore from ₹1,853 crore in the same quarter last year. Shares of Kotak Bank were trading over 1% higher at ₹1,916 apiece on the BSE in Friday’s afternoon deals.
Net interest income (NII) surged 11.8% to ₹4,334 crore as compared to ₹3,876 crore in the same quarter last year. Its net interest margin (NIM) for Q3FY22 was at 4.62%.
Its Gross non-performing assets (NPA) improved to 2.71% as compared to 3.19% in the previous quarter of July-September period. Similarly, Net NPAs also came down to 0.79% from 1.06% quarter-on-quarter (QoQ).
The bank said that its net customer additions in Q3FY22 was 2.1 million as against that of 0.8 million in Q3FY21.
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Expect an increase of 25-30 basis points in interest rates from next month: PNB chief
The Punjab National Bank MD and CEO SS Mallikarjuna Rao on Friday said that an increase of 25-30 basis points in interest rates can be expected from the next month. Air India’s dues of about ₹4000 crores have been recovered, he said.
As currently, the interest rates of banks are at their lowest, the PNB MD told the news agency ANI, “expect an increase of 25-30 basis points in interest rates from next month.”
“Air India’s dues of about ₹4000 crores have been recovered. All the outstanding amount from Air India has been paid off,” he added.
SC grants stay on Madras HC order to wind up SpiceJet
The Supreme Court of India has granted a stay on the Madras High Court’s order directing the winding up of SpiceJet Ltd. The apex court has granted three weeks to SpiceJet to resolve the matter with Credit Suisse AG.
The matter pertains to a Madras High Court order that directed the winding up of SpiceJet after it failed to clear dues given by Credit Suisse. The airline is challenging unpaid dues to the tune of ₹180 crores, claimed by Swiss Financial Services, Credit Suisse AG.
Harish Salve, senior counsel for SpiceJet informed the apex court that the airline was trying to resolve the matter with Credit Suisse and sought three weeks for resolving it.
Maruti down 1.5%
Target price: ₹2,965
Potential return: 26,2%
Yes Securities: SRF reported a robust, above estimated, operating profit of ₹8.8bn (+62% YoY; +30% QoQ), during the quarter, backed by strong operating earnings, across its business segments. With the 9MFY22 Ebitda of ₹20.7bn, SRF has already clocked in operating profits higher than entire FY21, in the nine month period. Going ahead, re‐opening of mining sector is likely to propel demand for belting fabrics. Given 4Q, is a seasonally strong quarter for refrigerants and agrochemicals, we expect SRF’s strong earnings traction to continue. Maintain BUY, with a TP of ₹2965/sh.
We value SRF at ₹2965/sh, on DCF basis, implying a target P/E multiple of 37x FY24e, as against 29x the stock is currently trading at. Our TP is premised upon a revenue and Ebitda growth CAGR of ~ 17% over FY21‐30e.
Nykaa shares down 24% in a month amid tech stocks sell-off. What next?
New age tech stocks have remained under pressure in the recent stock market sell-off, hitting their respective lows since listing. Shares of Nykaa have also taken the hit as the stock has declined over 35% from its all-time high of ₹2,574 made on the BSE on 26 November, 2021. Though, the stock, which got listing in November, is still up over 45% from its IPO issue price of ₹IPO issue price of ₹1,125 apiece.
LIC Housing Finance shares jump nearly 13% post earnings
Shares of LIC Housing Finance (LICHFL) on Friday zoomed nearly 13 per cent after the firm reported a 6 per cent increase in profit after tax for the quarter ended December 2021.
The stock jumped 12.63 per cent to ₹389 on the BSE.
On the NSE, it rallied 12.59 per cent to ₹389.
Mortgage lender LIC Housing Finance on Thursday reported a 6 per cent increase in profit after tax at ₹767.33 crore for the quarter ended December 2021, aided by higher collections and drop in provisions.
Rupee up 4 paise at 75.05 against US dollar
The Indian rupee eked out a marginal 4 paise gain at 75.05 against the US dollar in morning trade on Friday, tracking positive opening in domestic equity markets.
However, strong American currency and elevated crude oil price level restricted the rupee’s further recovery.
Forex traders said geopolitical tensions, sustained foreign fund outflows and hawkish US Fed stance dragged down the local unit, while positive domestic equities supported the local unit in opening deals.
At the interbank foreign exchange, the rupee opened at 75.12 against the US dollar and slipped further to 75.13, before staging a mild recovery to trade at 75.05, clocking a gain of 4 paise.
IndusInd Bank rises 4%
Nifty50 up 230 points
BSE Sensex up 750 points, crosses 58,000
Indian shares rise over 1% as IT stocks jump after recent sell-off
Indian shares rose on Friday as investors snapped up beaten-down information technology stocks and higher crude prices lifted Oil and Natural Gas Corp, with a slight rebound in global markets also aiding sentiment.
Asian stocks recovered some of their steep losses from the previous session after U.S. markets limited further declines from hawkish Fed comments, supported by a firm economy and strong earnings at Apple Inc.
The blue-chip NSE Nifty 50 index climbed 1.3% to 17,325 by 0500 GMT, while the S&P BSE Sensex gained 1.2% to 57,929.
Realty sector gains
Sectoral indices at this hour
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IndusInd Bank, IDFC bank rise 3% each
BSE MidCap up 2.6%
Manyavar-owner Vedant Fashions sets IPO price band at ₹824-866/ share
Vedant Fashions Ltd, which owns ethnic wear brand Manyavar, on Friday fixed a price band of ₹824-866 a share for its ₹3,149-crore initial public offering (IPO).
The initial share-sale will open on February 4 and conclude on February 8. The bidding for anchor investors will open on February 3, according to the company.
The public issue is purely an offer for sale of 36,364,838 equity shares by promoter and existing shareholders. The OFS comprises sale of up to 1.74 crore shares by Rhine Holdings Ltd; up to 7.23 lakh shares by Kedaara Capital Alternative Investment Fund-Kedaara Capital AIF I; and up to 1.81 crore shares by Ravi Modi Family Trust.
The promoters of the company are Ravi Modi, Shilpi Modi and Ravi Modi Family Trust.
Since, the IPO is entirely an offer for sale, the company will not receive any proceeds from the public issue.
At the upper end of the price band, the public issue is expected to fetch ₹3,149 crore.
CAN FIN Homes Limited
Yes Securities: In our view, Can Fin’s Q3 FY22 performance provides clarity on growth and margin trajectory. Our recent branch visits had revealed no material compromise on the quality of new business (in terms of credit score, occupation mix and sourcing mix) notwithstanding co.’s higher HL rates. Return of growth and preservation of strong profitability should re‐rate valuation (stock trades at 1.9x FY24 P/ABV). Current 1‐yr rolling fwd. P/ABV multiple stands well below the 5‐year average.
Potential return: 34.5%
Budget 2022: Stock market experts seek measures to attract foreign investors
As Union Budget 2022 date is fast approaching, various industry experts are busy forwarding their demands to Finance Minister Nirmala Sitharaman who will present the Budget on February 1. While banking sector is seeking more income tax relaxation on home loans, stock market players are seeking measures from the Modi government to attract more foreign investment.
Rakesh Jhunjhunwala portfolio: LIC trims stake in this Tata group stock in Q3
Rakesh Jhunjhunwala portfolio: During October to December 2021 quarter, Big Bull Rakesh Jhunjhunwala raised his stake in Titan Company but Life Insurance Corporation (LIC) of India thought otherwise. While Big Bull raised his stake in the flagship Tata group company from 3.80 per cent to 4.02 per cent, LIC and Foreign Portfolio Investors (FPIs) cut down their stake in the company. FPIs cut down their stake in Titan Company from 19.06 per cent to 18.55 per cent whereas LIC trimmed its stake in Titan Company from 3.24 per cent to 3.16 per cent in Q2FY22.
NTPC up 4.5%
BSE Telecom up almost 2%
IT index up almost 2%
27 of 30 Sensex stocks in the green
Freefall: Paytm, Zomato, Nykaa Shares Drop to Record Low. Is the ‘Unicorn’ Craze Over?
Are investors starting to lose faith in India’s new-generation IT firms?
It certainly appears to be true. The last few days have been the most difficult for all listed start-ups on the bourses.
Shares of well-known brands like Paytm, Zomato, Nykaa, Policybazaar (PB Fintech), CarTrade Tech, and many more were under pressure in the recent stock market meltdown.
In the last six days, the Sensex has lost around 4,000 points whereas the Nifty has crashed around 1,100 points.
The drop is being attributed to waning risk appetite for equities as global central banks prepare to tighten monetary policy in order to combat inflation.
New age company stocks in India are mimicking the pattern on the Nasdaq, where investors have lost their desire for highly valued tech stocks. Read
All sectoral indices in green
Oil heads for sixth weekly gain amid supply concerns
Oil prices rose on Friday, set for their sixth weekly gain, amid concerns of tight supplies as major producers continue their policy of limited output increases amid rising fuel demand.
Brent crude futures climbed 45 cents, or 0.5%, to $89.79 a barrel at 0429 GMT, after falling 62 cents during the previous day. However, prices did reach $91.04 earlier in that session, the highest since October 2014.
U.S. West Texas Intermediate (WTI) crude futures rose 50 cents, or 0.6%, to $87.11 a barrel, having declined 74 cents on Thursday. WTI also reached a seven-year high of $88.54 earlier in the session.
Both Brent and WTI are set to rise for a sixth week, the longest weekly streak since October, when Brent prices climbed for seven weeks while WTI gained for nine.
Yes Securities on Nippon Life India AMC
Yes Securities maintains ‘BUY’ rating on Nippon Life India AMC (NAM) with a revised price target of ₹435: It values NAM at 28x FY23 P/E for an FY21-24E EPS CAGR of 20%.
Google to invest up to $1bn in Airtel through equity buy, commercial agreement
Internet search giant Google will invest upto $1 billion in Bharti Airtel through an equity purchase of 1.28% and commercial agreement on mutual terms over the next five years.
Google will invest the amount, as part of its Google for India Digitization Fund, in the country’s second-largest telecom services provider, making it the only company to have invested in both Reliance Jio and Bharti Airtel.
The investment includes $700 million equity investment in Bharti Airtel at a price per share of ₹734 and $300 million towards implementing commercial agreements, which will include investments in scaling Airtel’s offerings that cover a range of devices to consumers via innovative affordability programs as well as other offerings aimed at accelerating access and digital inclusion across India’s digital ecosystem.
Most active stocks on Nifty
Top Nifty50 losers
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SGX Nifty up 200 points
Nifty at open
Sensex at open
All 30 Sensex stocks in green
Nifty in pre-open
Sensex up 438 pts, Nifty at 17,100 in pre-open; Airtel, Kotak Bank in focus
Markets in pre-open
Stocks to Watch: Kotak Mahindra Bank, DRL, Dixon, Britannia
Here is the list of the top 10 stocks that are likely to be in focus on Friday
Punjab National Bank’s profit more than doubles to ₹1,127 cr in Dec quarter
Punjab National Bank (PNB) on Thursday reported a two-fold jump in standalone net profit to ₹1,126.78 crore for the third quarter ended December, as bad loans marginally declined.
The country’s second-largest public sector lender had earned a net profit of ₹506.03 crore in the year-ago period.
However, total income during October-December 2021 declined to ₹22,026.02 crore as against