Morning Update :–The Nifty saw big gains from Adani Ports, BPCL, ICICI Bank, Hero MotoCorp, and SBI Life Insurance, while Eicher Motors, L&T, Power Grid Corporation, Maruti Suzuki, and Britannia Industries suffered losses.
Sensex – Rise +827 Points at 72,473
Nifty 50 – Rise  +237 Points at 21,934
Indian Market
FII AND DII
| FII Sold | 1,879.58 Cr |
| DII Bought | 872.49 Cr |
Indian Market News
- Asian markets trade higher, with Hang Seng and Kospi up 2% each.
- Gold nears one-month peak; attention on NFP data.
- The dollar is expected to fall this week, with US jobs data coming up next.
- Oil prices rise as OPEC+ maintains output cuts.
- According to a Reuters poll, the RBI is projected to keep interest rates until mid-year, with the first drop coming in Q3 2024
- Wall Street closes higher; earnings and jobs report in focus. Â
- Motilal Oswal View of Titan CompanyÂ
- Tata Motors’ third-quarter net profit may increase by 53% and revenue by 22% due to robust JLR sales growth.
- Â Bernstein’s View On Adani PortsÂ
- Gokaldas Exports signs a binding deal to acquire Matrix Clothing’s garment division.
Global Markets updates
GIFT Nifty
Trends in the GIFT Nifty imply a flat start for India’s broader index, with a 10-point rise. The Nifty futures were trading near the 21,915.50 mark.
US Markets
US markets rose on Thursday as investors focused on a slew of high-profile reports and Friday’s employment data, a day after the Federal Reserve deflated lingering expectations that interest rate reduction would begin as early as March.
While a broad surge brought all three major US market indices far higher, the tech-heavy Nasdaq outperformed. The S&P 500 rose 1.25 percent to finish the session at 4,906.19 points. The Nasdaq soared 1.30 percent to 15,361.64 points, while the Dow Jones Industrial Average climbed 0.97 percent to 38,519.84 points.
Asian Markets
Asian markets rose early Friday, reflecting Wall Street’s recovery from earlier this week’s sell-off after Chairman Jerome Powell signalled the US Federal Reserve was unlikely to decrease interest rates in March.
Oil prices
On Thursday, oil prices dropped more than 2 percent due to unconfirmed claims of an Israeli-Hamas ceasefire and a power outage that caused the closure of a sizable US refinery.
Although there isn’t now a truce, a Qatari official confirmed to Reuters that Hamas has accepted a ceasefire proposal made earlier this week.
US West Texas Intermediate crude futures slid $2.03, or 2.7 percent, to $73.82, while Brent crude futures fell $1.85, or 2.5 percent, to close at $78.70 a barrel.
Gold Prices
After data revealed that weekly unemployment claims in the US increased last week, gold prices strengthened Thursday, drawing attention from investors to the non-farm payrolls data in the US for more indications regarding the Federal Reserve’s policy direction.
Earlier in the day, spot gold reached its highest level since January 3 at $2,054.89 per ounce, up 0.9 percent. US gold futures ended the day at $2071.1, up 0.2 percent.
US dollar
Following impressive huge tech profits on Wall Street, the dollar saw broad declines on Friday as traders anticipated U.S. jobs data that was expected later in the day to determine when the Federal Reserve could start reducing rates.
Following the Fed’s most recent policy meeting, where rates were held unchanged as anticipated but Chair Jerome Powell resisted market expectations of rate cuts in March, comes the highly anticipated nonfarm payrolls report later on Friday.
At its most recent value of 103.02, the dollar index was headed for its first weekly loss of the year.
News Updates
The Bank of England maintains a 5.25% interest rate.
For the fourth time in a row, the Bank of England kept its benchmark interest rate at zero on Thursday, following US Federal Reserve policy, because rising inflation makes it impossible to lower borrowing costs.
Following a routine policy meeting, the BoE announced in a statement that it had decided to leave its rate at 5.25 percent, the highest level in 16 years.
Due to robust JLR sales growth, Tata Motors’ Q3 net profit could increase by 53% and revenue by 22%.
Due to price increases, an improved product mix, and significant growth in Jaguar Land Rover volumes, Tata Motors is expected to enjoy robust rise in net profit and revenue in the third quarter of its fiscal year. On February 2, the car major will release its Q3 FY24 earnings.
Six brokerages’ average estimates indicate that Tata Motors’ net profit for the October–December quarter will increase by 54% year over year to Rs 4,547 crore. The revenue could increase by 22% year over year to Rs 1,08,169 crore. It is also anticipated that EBITDA margin will increase significantly by 273 basis points to 13.63 percent.
Stocks in news
Hero MotoCorp: The largest two-wheeler manufacturer in the world, Hero MotoCorp, reported overall sales of 4,33,598 units in January 2024, up 21.6 percent from the same month the previous year. Domestic sales up 20.5 percent year over year to 4.2 lakh units, while exports jumped 74.6 percent to 12,664 units for the quarter.
Abbott India: Supported by strong operating results, the pharmaceutical business reported a 26% year-over-year increase in net profit at Rs 311 crore for the quarter that ended in December of FY24. Compared to the same period previous year, revenue from operations increased by 8.7% to Rs 1,437 crore.
Eicher Motors: In January of this year, sales of the company’s flagship brand, Royal Enfield, increased to 76,187 motorbikes, a two percent increase over 74,746 units sold in the same month the previous year. Nonetheless, export sales of motorbikes fell 20% YoY to 5,631 in the month.
Panacea Biotec: The company’s subsidiary Panacea Biotec Pharma’s examination of its Baddi, Himachal Pradesh plant has been categorised by the US Food and Drug Administration (USFDA) as an Official Action Indicated (OAI) investigation.
Sonata Software: After making Rs 124.2 crore in profit the previous quarter, the IT services provider saw a consolidated net loss of Rs 46.2 crore for the quarter that ended in December of FY24. A remarkable loss resulting from modifications in the purchased entity’s fair value, namely Quant Systems Inc., had an effect on the profitability. For the quarter, consolidated revenue from operations increased 30.4 percent sequentially to Rs 2,493.3 crore.
Bata India: The top footwear company’s net profit for the October–December fiscal year of FY24 was Rs 57.3 crore, a dramatic decline of 31% from the same period the previous year due to a sluggish topline and subpar operating results. Despite weak demand, operating revenue increased by 0.4 percent year over year to Rs 903.5 crore for the quarter, primarily from luxury categories.
RITES: Due to a subdued topline and subpar operating performance, the engineering services company had a 12.5 percent year-over-year fall in consolidated profit for the third quarter of FY24, coming in at Rs 128.8 crore. From the same time in the previous fiscal year, revenue from operations climbed by 0.8 percent to Rs 682.9 crore.
Ashok Leyland: The nation’s second-largest manufacturer of commercial vehicles reported sales of 15,939 units in January 2024, 7% down than the 17,200 units sold in the same month the previous year and below analyst projections. Sales of medium- and heavy-duty commercial vehicles fell 8% year over year to 10,218 units.
NMDC: The state-owned iron ore business reported producing 4.54 million metric tonnes (mt) of iron ore in January of this year, an increase of 8.09 percent from the same month last year. Sales during the same month increased by 18.8 percent from the previous year to 4.56 mt.
City Union Bank: The lender reported a 16 percent year-over-year increase in net profit at Rs 253 crore for the quarter that ended in December of FY24. However, net interest income decreased by 7.2 percent to Rs 516 crore. Advances increased by 2.3 percent to Rs 44,017 crore and deposits increased by 5.5 percent to Rs 52,726 crore during the same period. Asset quality improved in Q3 FY24, with the net non-performing asset (NPA) falling by 15 bps to 2.19 percent and the gross NPA falling by 19 bps to 4.47 percent sequentially.
PB Fintech: To exit the Policybazaar operator, foreign venture capital investment Claymore Investments (Mauritius) Pte Ltd sold 1.24 crore shares at an average price of Rs 992.8 per share and 1.2 crore equity shares at an average price of Rs 992.8 per share, for a total of Rs 2,425.4 crore.
Mphasis: Due to lacklustre operating results, the IT services company’s consolidated net profit for the October–December fiscal year of FY24 was Rs 373.6 crore, a decrease of 4.7 percent from the prior quarter. For the quarter, revenue from operations reached Rs 3,338 crore, up 1.9 percent on a sequential basis.
Pricol: Supported by strong topline and operating earnings, the automotive components manufacturer reported a 27.1 percent year-over-year increase in consolidated net profit at Rs 34 crore for the quarter that ended in December of FY24. Comparing the quarter’s consolidated revenue from operations to the same time in the previous fiscal year, it climbed by 21% to Rs 572.6 crore.
Sonata Software: After posting a profit of Rs 124.2 crore in the previous quarter, the IT services provider reported a consolidated net loss of Rs 46.2 crore for the quarter that ended in December of FY24. Due to shifts in the purchased entity’s fair value, Quant Systems Inc., the profitability was impacted by unusual losses. For the quarter, total revenue from operations increased by 30.4 percent on a sequential basis to Rs 2,493.3 crore.
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