Morning Update :–Infosys’ net profit decreased by 1.7% QoQ to Rs 6,106 crore in the quarter ended December FY24, whereas Tata Consultancy Services’ net profit increased by 8.2% year on year to Rs 11,735 crore. The Nifty saw large gains from Infosys, TCS, Wipro, LTIMindtree, and Tech Mahindra, while Nestle India, HUL, Asian Paints, Reliance Industries, and Bharti Airtel suffered losses.
Sensex – Rise +272 Points at 71,994
Nifty 50 – Rise   +74 Points at  21,721
Indian Market
FII AND DII
| FII Sold | Â 865 Cr |
| DII Bought | 1,607.08 Cr |
Indian Market News
- Asian markets mostly trade down; Starits Times and Taiwan weighted down
- Wall Street saw no change after inflation and labour market statistics.
- Oil prices climb by more than 2% following US and British bombings in Yemen.
- The dollar remains steady as markets digest higher-than-expected US CPI.
- Gold rises as the dollar falls, adding to its appeal as a safe haven.
- Infosys Q3 net profit falls 7% YoY to Rs 6,106 crore, missing expectations.
- US inflation accelerated in December, weakening the case for the Fed to lower rates.
- Â Bessemer India and Investcorp sell Rs 536 crore shares ahead of the anchor book round and IPO opening.
- Tata Power enters an MoU with the Gujarat government to establish a 10,000 MW plant.
- HG Infra Engineering obtains a project for Rs 716 crore from Central Railway.
- Â Lexdale International is likely to sell Rs 490 crore worth of shares in Nykaa via block transaction.
- 5Paisa achieves its highest ever revenue in Q3FY24, exceeding Rs 100 crore for the first time; net profit jumps 37% YoY.
- Polycab January 11 crash costs MFs Rs 940 crore and FIIs Rs 1,885 crore.
Global Markets updates
GIFT Nifty
With a gain of 21 points, the GIFT Nifty suggests a slightly good start for the whole index. After peaking at 21,763 points, GIFT Nifty futures were trading at 21,715 points.
US Markets
Thursday night saw stock futures close to flat as traders anticipated this week’s second of two highly anticipated inflation data. The Dow Jones Industrial Average-linked futures saw a loss of 18 points, or 0.1%. Both the Nasdaq 100 and S&P 500 futures saw a 0.1% decrease.
The actions come after a quiet day on Wall Street. The S&P 500 ended slightly lower, while the 30-stock Dow gained almost 15 points. The heavily tech-heavy Nasdaq Composite ended the day at its closing point.
Data on inflation reported Thursday morning drew the attention of investors. The consumer price index for December increased 0.3% over the previous month and 3.4% over the previous year, which was rather hotter than economists had predicted.
European Markets
Thursday’s closing of European markets was negative following the surprise increase in US inflation. The regional Stoxx 600 index ended the day 0.77% lower, with all sectors seeing losses during a bumpy session. Utility stocks dropped 1.23% and bank stocks 1.9%.
Though it reported good growth in Christmas sales, British retailer Marks & Spencer dropped to the bottom of the Stoxx 600, down 4.5%, after citing “near-term challenges.” Tesco, meanwhile, increased 1.35% after raising its earnings projection.
According to the December U.S. inflation data, consumer prices increased by 3.4% annually and 0.3% monthly. Dow Jones surveyed economists who forecasted results of 3.2% and 0.2%, respectively.
Asian Markets
Asia-Pacific markets experienced significant losses on Friday as investors awaited economic data from China, including trade and inflation figures for December. The benchmark Nikkei 225 and Topix reached their best points since 1990, with the Nikkei opening 2.1% higher and the Topix up 0.53%. U.S. inflation for December came in higher than anticipated, but all major indexes closed nearly flat. The consumer price index report for December showed a 0.3% increase in prices, which was slightly higher than anticipated, resulting in an annual rate of 3.4%. The Dow Jones Industrial Average managed a 0.04% increase, while the Nasdaq Composite closed at the flat line. The S&P 500 declined by 0.07%.
Oil Prices
Following Iran’s seizure of an oil ship off the coast of Oman on Thursday, oil prices increased by about 1%, potentially signalling an intensification of Middle East violence. At $72.02 per barrel, the West Texas Intermediate futures contract for February saw an increase of 65 cents, or.91%. The March contract for Brent futures increased by 61 cents, or.79%, to close at $77.41 per barrel.
Both benchmarks had risen more than $2 a barrel earlier in the session, but they have since fallen due to an unanticipated rise in US inflation and rumours that China was looking to buy fewer Saudi supplies. In revenge for the United States seizing the same tanker and its oil last year, Iran intercepted a tanker carrying Iraqi crude that was headed for Turkey.
Dollar Index
One dollar was trading around Rs 83.09, while the Dollar index was down 0.06 percent in futures trading at 102.22.
Gold Prices
Thursday saw a one-month low for gold as the dollar strengthened following stronger-than-expected inflation statistics. Additionally, concerns about higher interest rates remaining unchanged past March were heightened by the Federal Reserve’s hawkish comments.
Spot gold was up as much as 0.8% before to the data, but it was down 0.1% at $2,024.99 per ounce. At $2019.20, U.S. gold futures ended the day 0.4% down.
After statistics revealed that U.S. consumer prices increased more than anticipated in December, the dollar index continued to rise, perhaps delaying the much-awaited rate cut in the United States in March.
News Updates
The US Federal Reserve policy rate will remain at approximately 3% for the next five to ten years. Howard M.
SoftBank is set to resume investments in India in mid-2024, following an 18-month gap. Sumer Juneja, SoftBank Investment Advisers’ head of India and EMEA, stated that the Japanese investor will resume closing acquisitions in the coming months. This comes after investors became more selective about the enterprises they backed, tightening their purse strings. SoftBank has been in a wait-and-see attitude, but is now reaffirming its intention to support cutting-edge businesses and expand its holdings in India.
Jeremy Siegel’s Weekly Commentary: The S&P 500 may reach 5,300 levels and gain 8–10% in 2024
S&P 500 gains of 8–10% are expected in 2024, according to economist Jeremy Siegel, who also projects that the index may hit 5,300.
In his weekly WisdomTree commentary note, Siegel stated, “My outlook for the S&P 500 for 2024 is another good year—in the order of 8–10 percent price gain—and I think value stocks, particularly smaller-cap value stocks, trading at much lower multiples could do better, with around 15 percent appreciation.” Following a period of profit-taking in tech equities at the start of the year, this optimistic prognosis has been made.
Microsoft surpasses Apple to become the most valuable corporation globally.
On Thursday, Microsoft surpassed Apple to become the most valuable corporation in the world, following a poor start to 2024 for the shares of the iPhone manufacturer due to mounting demand concerns.
Microsoft, situated in Redmond, Washington, had a 1.6% increase in shares last week, valuing the company at $2.875 trillion. This increase was mostly due to investors being drawn in by Microsoft’s early advantage in the race to profit from generative artificial intelligence.
With a market capitalization of $2.871 trillion, Apple had a 0.9% decline in valuation, marking the first time since 2021 that it has lagged below Microsoft. As of the most recent close, the Cupertino, California-based company’s stock had dropped 3.3%, while Microsoft’s had increased 1.8%.
Banks’ Q3 FY24 earnings: Five key areas to be aware o
Experts predict that asset quality, net interest margins (NIM), unsecured loans, deposit and credit growth, and write-offs will be some of the key factors to keep an eye on following strong profits, when earnings for the banking industry begin in mid-January.
Stocks in news
Tata Consultancy Services: For the quarter that concluded in December of FY24, the leading provider of IT services saw a 4% increase in revenue at Rs 60,583 crore and an 8.2% year-over-year increase in net profit at Rs 11,735 crore. In constant currency, revenue increased by 1.7% year over year.
Infosys: For the quarter ended December FY24, the nation’s second-largest supplier of IT services reported a 1.7 percent QoQ reduction in net profit at Rs 6,106 crore and a 0.4 percent decline in revenue at Rs 38,821 crore. The company revised its previous sales growth estimate of 1-2.5 percent to 1.5–2 percent for the entire year.
Tata Power Company: A memorandum of understanding (MoU) was signed by Tata Power Company’s subsidiary Tata Power Renewable Energy with the Gujarati government to create 10,000 MW of renewable energy power plants at various locations in Gujarat.
FSN E-Commerce Ventures: According to reports cited by CNBC-Awaaz, foreign investor Lexdale International is expected to sell 2.62 crore shares in Nykaa through a block deal. The possible total value of the block deal is Rs 490 crore.
Life Insurance Corporation of India: The Income Tax authorities in Mumbai have issued demand orders to the Life Insurance Corporation of India, valued at Rs 3,528.75 crore. LIC intends to appeal the aforementioned orders to the Commissioner (Appeals), Mumbai.
HG Infra Engineering: Central Railway has designated the company as the L-l bidder for the Rs. 716.11 crore project. A new BG line will be built by Central Railway between Dhule (Borvihir) and Nardana.
Bajel Projects: The business has got a letter of intent (LOI) from Tata Power Company to deliver plant and installation services for the engineering, procurement, building, and commissioning of transmission lines and GIS substations project valued at Rs 487.64 crore in Uttar Pradesh.
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