Morning Update :–The Nifty saw big gains from Bharti Airtel, TCS, UltraTech Cement, Dr Reddy’s Labs, and HCL Tech, while Power Grid Corp, NTPC, Hindalco, Axis Bank, and SBI Life Insurance fell.
Sensex – Rise +191 Points at 71,922
Nifty 50 – Rise  +52 Points at 21,824
Indian Market
FII AND DII
| FII Bought | Â 518.88 Cr |
| DII Sold | Â 1,188.68 Cr |
Indian Market News
- Oil prices remain basically flat as Blinken’s Middle East visit is appraised.
- Dollar jumps to 11-week high as Fed rate drop bets decrease
- HDFC Bank clarifies RBI approval for acquiring share in IndusInd Bank.
- Bharti Airtel’s Q3 net profit climbs 54%, with ARPU at Rs 208.
- Dollar firms around three-month highs as rate cut bets diminish.
- Paytm denies breaking forex standards and claims that its banking business is not under investigation by the Enforcement Directorate.
- BSE Q3 net profit more than doubled at Rs 106 crore.
- The initial public offering of Entero Healthcare Solutions is scheduled for February 9.
- Â The LIC board may consider declaring an interim dividend on February 8.
- HDFC Bank Group will acquire a stake in YES Bank with RBI permission.
- Â Crisil raises rating for Adani Power bank loan facility.
- TBI Corn, backed by ace investor Ashish Kacholia, submits draft papers for its IPO.
- SBI issued Electoral Bonds of Rs 16,518 crore in 30 tranches.
- Tata Motors says electric passenger car business has broken even; eyeing PLI financing.
- Â Suven Pharma’s Q3 net profit fell 57% YoY to Rs 47 crore.
- Ashok Leyland’s Q3 profit soars 60% YoY at Rs 580 crore, while revenue rises 2.7%.
Global Markets updates
GIFT Nifty
Trends in the GIFT Nifty imply a bad start for India’s broader index, with a loss of 31.50 points (0.14 percent). The Nifty futures were trading near the 21,619.50 mark
US Markets
Wall Street’s main indexes closed down on Monday as Federal Reserve Chair Jerome Powell emphatically denied that rate cuts were imminent, while investors weighed a mixed bag of US corporate data.
The Dow Jones Industrial Average slid 274.30 points, or 0.71 percent, to 38,380.12; the S&P 500 sank 15.80 points, or 0.32 percent, to 4,942.81; and the Nasdaq Composite fell 31.28 points, or 0.20 percent, to 15,597.68.
Asian Markets
Most Asian markets dipped on Tuesday, matching Wall Street’s overnight falls, as investors anticipated the Reserve Bank of Australia’s interest rate decision later in the day.
Dollar
On Monday, the dollar rose to its highest level in nearly three months against nine other major currencies as traders reduced their bets that the Federal Reserve will rapidly lower interest rates this year, following new economic data that further diminished those odds.
The dollar strengthened against all members of the G10 group of currencies, which are among the most liquid in the world.
The dollar index monitors the greenback versus six other major currencies.
Oil Prices
Oil prices were little changed in early trade on Tuesday, as market participants analysed US Secretary of State Antony Blinken’s travel to the Middle East to discuss a regional ceasefire offer.
Blinken met with Saudi Arabia’s de facto ruler on Monday. Palestinians hope the visit would result in a cease-fire before an impending Israeli attack on Rafah, a border city where almost half of the Gaza Strip’s population is sheltering.
The truce agreement, handed to Hamas last week by Qatari and Egyptian mediators, is awaiting a response from militants, who claim they want further guarantees that it will halt the four-month-old conflict.
Brent crude prices were down 2 cents to $77.97 a barrel, while U.S. West Texas Intermediate crude futures fell 3 cents to $72.75. Both contracts rose over 1% on Monday, marking the first increase in four sessions.
News Updates
Q3 net profit for Bharti Airtel soars 54%, with an ARPU of Rs 208.
For the October–December quarter, Bharti Airtel recorded a consolidated net profit of Rs 2,442.2 crore on February 5, up 54% over the same period the previous year.
According to a Bharti Airtel exchange filing, its revenue increased to Rs 38,339 crore from Rs 36,062 crore in the same time last year, representing a 6.3% increase.
The company reported that its average revenue per user per month (ARPU) for mobile devices was Rs 208, which was higher than expected and increased by about 8% from Rs 193 in the corresponding quarter of the previous year. “Consistent strategy of acquiring high value customers and improved realisations” was the driving force behind the ARPU.
AMC of HDFC Bank will purchase up to 9.5% of IndusInd Bank.
On February 6, HDFC Bank made it clear that HDFC Bank itself is not affected by the RBI’s clearance to purchase a portion of IndusInd Bank. It clarified to CNBC-Awaaz that the term “Bank” in the disclosure should be regarded as HDFC Bank Group.
The Asset Management Company (AMC) and Life Insurance divisions of HDFC Bank are the anticipated recipients of the RBI’s clearance for the acquisition of a share in IndusInd Bank. It was highlighted that HDFC Bank was required to obtain RBI permission for these transactions in its capacity as a promoter.
Late on Monday night, IndusInd Bank notified stock exchanges that HDFC Bank was permitted to purchase a “aggregate holding of up to 9.50 percent of the paid-up share capital or voting rights” in the lender by the RBI.
According to IndusInd Bank, HDFC Bank’s application to the regulator was submitted before the RBI granted its permission. The authorization is good for a year, after which it expires if HDFC Bank is unable to purchase the stake.
Paytm claims that the company has not been investigated by the ED and denies breaking any FX regulations.
The parent company of Paytm, One97 Communications, denied claims on February 5 that the firm is being investigated by regulators to see if it broke foreign exchange regulations.
The business clarified that the Enforcement Directorate has not opened an investigation into Paytm or its banking subsidiary Paytm Payments Bank Limited (PPBL) for the claimed infractions, while also denying breaking any exchange regulations.
The clarification was provided soon after news agency Reuters, citing two government sources, revealed that the Enforcement Directorate is looking into potential foreign currency rule violations on Paytm platforms.
Stocks in news
Bharti Airtel: Due to an extraordinary loss of Rs 1,570.3 crore in Q2FY24, the telecom operator’s consolidated net profit for the quarter ended December FY24 was Rs 2,442.2 crore, a significant increase of 82.2 percent over the previous quarter. Operating revenue increased to Rs 37,900 crore, or 2.3% QoQ.
Adani Total Gas: To improve the LNG ecosystem in India, the Adani Group company and Inox India have inked a mutual support agreement (INOXCVA). The firm and Inox India shall work together to supply LNG and LCNG equipment and services under the terms of the aforementioned agreement.
Ashok Leyland: Supported by robust operating results, the commercial vehicle manufacturer reported a 60.5 percent year-over-year increase in net profit at Rs 580 crore for the quarter that concluded in December FY24, above analysts’ projections. For the quarter, revenue from operations increased by 2.7% YoY to Rs 9,273 crore.
Tata Chemicals: Lower topline and underwhelming operating results contributed to the Tata Group company’s severe 60% decline in consolidated profit from the same period last year, which came in at Rs 158 crore for the quarter that ended in December of FY24. Input, gasoline, and power expenses decreased year over year. Operating revenue for the quarter was Rs 3,730 crore, a 10% YoY decline.
Ideaforge Technology: Driven by strong topline and operating figures, the manufacturer of unmanned aircraft systems reported a net profit of Rs 14.8 crore for the October–December fiscal year of FY24, compared to a loss of Rs 7.8 crore in the same period previous year. Operational revenue increased dramatically to Rs 90.9 crore for the quarter from Rs 7.8 crore during the same time in the previous fiscal year.
Life Insurance Corporation of India: On February 8, the board of directors of the state-owned life insurance business will convene to deliberate on the unaudited financial statements for the quarter and nine-month period concluding in December 2023. Additionally, the board may take up a proposal to declare an interim dividend for FY24 during the aforementioned meeting.
BLS E-Services: On February 6, the business correspondent’s services provider is scheduled to make its market debut on the bourses. The price per share for the final issue has been set at Rs 135.
Bharti Airtel: Due to an extraordinary loss of Rs 1,570.3 crore in Q2 FY24, the telecom operator’s consolidated net profit for the quarter ended December FY24 was Rs 2,442.2 crore, a significant increase of 82.2 percent over the previous quarter. EBITDA climbed sequentially by 1.9 percent to Rs 20,044 crore, while revenue from operations improved by 2.3 percent QoQ to Rs 37,900 crore. However, margin decreased by 20 basis points QoQ to 52.9 percent for the quarter. In Q3 FY24, mobile ARPU increased by 2.5 percent QoQ (up 7.5 percent YoY) to Rs 208.
Indian Energy Exchange: With 10,893 million units (MU) in January, the exchange’s overall volume reached a record high and increased by 26.1 percent from the same month the previous year. Due to lessening supply-side limitations, the market clearing price in the day-ahead market for January was Rs 5.83 per unit, down around 6% YoY. In January, the real-time electricity market (RTM) volume climbed 13.2 percent YoY to 2,380 MU, while the day-ahead market (DAM) volume increased 13.2 percent YoY to 5,540 MU.
TVS Supply Chain Solutions: Despite decreased input prices, the logistics company’s consolidated profit for the quarter ended December FY24 was Rs 9.99 crore, a 42% decrease from the same period the previous year. The quarter’s operations revenue of Rs 2,221.8 crore represented a YoY decline of 6.4 percent.
Gulf Oil Lubricants India: For the October–December fiscal year of FY24, the Hinduja Group Company’s net profit increased by 28.86 percent year over year to Rs 80.74 crore. Comparing the quarter to the same period last year, revenue from operations increased by 4.6 percent to Rs 817.26 crore, while EBITDA increased by 23.38 percent to Rs 111.06 crore. An interim dividend of Rs. 16 per equity share has been issued by the firm.
Fusion Micro Finance: For the third quarter of FY24, the NBFC microfinance institution reported a 23.4 percent year-over-year growth in net profit, coming in at Rs 126.45 crore. Pre-provision operating profit surged 41.62 percent YoY to Rs 260.26 crore for the quarter, while net interest income grew 36.13 percent YoY to Rs 337.21 crore.
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