PremiumShare markets were mostly higher on Tuesday as investor confidence surged into the Lunar New Year with China lifting its stringent Covid curbs and on rising hopes that the end to interest rate hikes may finally be in sight
Having opened higher, India's benchmark stock indices failed to hold on to gains and ended the session flat on Tuesday.
The Sensex closed 37.08 points lower at 60,978.75, while the broader Nifty was flat at 18,118.30.
European stocks edged higher, boosted by a fresh run of gains for technology stocks, while investors awaited economic data that is expected to show a slight improvement in euro zone business activity.
Back home, Tata Motors, Maruti Suzuki, Bajaj Auto, HCL Technologies and Britannia Industries rose the most on Nifty, while Axis Bank, Dr Reddy's Laboratories, Hindalco Industries, Grasim Industries and JSW Steel were among the worst hit.
Auto index rose 1%, while pharma, PSU Bank, metal and realty fell a percent each.
BSE mid-cap and small-cap indices also ended lower.
Easy Trip Planners Ltd, which operates EaseMyTrip.com, said on Tuesday it has acquired a 55% stake in cheQin for an undisclosed sum through the primary route.
Through cheQin, travellers can easily negotiate with hoteliers in real time. The company encourages travellers to pay directly at the hotel and maintains a customer-centric approach that allows customers to stay at cost-effective hotels.
Iran vowed Tuesday it will respond to new sanctions imposed by the European Union and Britain over its handling of months-long protests triggered by the death in custody of Mahsa Amini.
The EU and Britain on Monday slapped another round of sanctions on Iran, which has been rocked by protests since the September 16 death of Amini, a 22-year-old Iranian Kurd who had been arrested for allegedly breaching the country's strict dress code for women.
Iran's warning of tit-for-tat measures comes after relations deteriorated sharply, with the EU and Britain ramping up sanctions over the authorities' response to the protests.
An earthquake of magnitude 5.4 struck Nepal on Tuesday, the European-Mediterranean Seismological Centre said, sending tremors across India's capital New Delhi, Reuters reported.
Europe's main stock markets were little changed at the open Tuesday, failing to mirror strong overnight gains in Tokyo and on Wall Street.
London's benchmark FTSE 100 index was flat at 7,782.29 points.
In the eurozone, Frankfurt's DAX index edged up 0.1% to 15,121.72 points while the Paris CAC 40 fared better with a gain of 0.3% to 7,053.58.
Maruti Suzuki India on Tuesday reported over two-fold increase in its net profit to ₹2,351.3 crore for the fiscal third quarter ended December, aided by robust sales.
During the quarter under review, the company said its net sales rose to ₹27,849.2 crore from ₹22,187.6 crore in the same period of 2021-22.
The country's largest carmaker said it sold a total of 4,65,911 vehicles during the third quarter of FY23.
With revenue up 2.4% q/q (~1% from pass-throughs) to ~$1,047m, LTI- Mindtree grew on par with the industry and in line with our expectations. TCV was $1.25bn, a book-to-bill of 1.2x (Mindtree operated in the past at 1.2x). The EBIT margin was lower due to more Hi-tech furloughs, employee costs and integration costs which may not recur in Q4, leading to management guidance of a 200bp expansion in Q4. Attrition moved down further and industry tailwinds are likely to continue. Estimates are largely unchanged with a revised TP of Rs5,520 (from Rs5,630) at 26x (unchanged) FY25e.
Large deal pipeline at record high, Q3 revenues affected by furloughs.
Q3 revenue was up 2.4% q/q, 13.8% y/y, largely driven by Manufacturing & resources (up 10.5% q/q) and BFSI (up 5.7% q/q). Weakness was seen in Hi- tech (down 4/7% q/q) due to furloughs but the company is confident of recovering in Q4. The company is seeing deferred demand in certain projects and delays in decision-making but is yet confident of growth, given its current pipeline. It is also experiencing an increase in cost take-out deals.
Tokyo stocks marked a three-day winning streak Tuesday as investors took heart from rallies on Wall Street and a cheaper yen.
The benchmark Nikkei 225 index added 1.46%, or 393.15 points, to 27,299.19, while the broader Topix index ended up 1.42%, or 27.54 points, at 1,972.92.
Global investors are increasingly optimistic on speculation that the Federal Reserve may slow -- or even stop -- interest rate hikes this spring, analysts said.
Telecom gear maker HFCL Ltd. has reported a 25.3% year-on-year rise in consolidated net profit for the fiscal third quarter (FY23 Q3) at ₹102 crore.
Revenue stood at ₹1,086 crore for the December quarter, down 10.6% on year.
The company's order book stood at over ₹7,000 crore as on 31 December 2022 compared to ₹5,280 crore in the previous quarter.
"HFCL has been granted approval to avail incentives up to ₹652.79 crore from FY 22-23 to FY 26-27 as part of Government's production-linked incentive (PLI) scheme, wherein, we committed an investment of ₹425 crore over a period of four years for the development and manufacturing of telecom products including 5G radio equipment, routers, switches, WiFi Products and backhaul radios," said Mahendra Nahata, managing director, HFCL.
The National Company Law Tribunal (NCLT) on Monday reserved its order on fresh auction for the Anil Ambani-promoted Reliance Capital, directing lenders to maintain status quo till the final order is passed by the tribunal.
The Mumbai-bench of the NCLT, led by Justice Shyam Babu Gautam and Justice Pradeep Narhari Deshmukh, directed the Committee of Creditors (CoC) to maintain status quo on the 'Challenge Mechanism' till the final order is passed by the tribunal in the week starting January 30. (Read here)
Placed as the top pick in May 2022, Axis Bank’s thesis remains intact. Maintain BUY
(1) Axis Bank's conservative approach to asset quality recognition continued even as outcomes remained under control in the absolute sense. (2) Margin now sits at 4.26% which is a far cry from a subdued 3.53% a year ago and an outcome of capital allocation choices and other factors. (3) We reiterate BUY rating on Axis Bank with a revised price target of ₹1300.
Blackstone is in talks to sell around half of its stake in India's largest real estate investment trust Embassy Office Parks to private equity firm Bain Capital, two sources said, in a deal worth up to $480 million at current prices, Reuters has reported.
A deal would mark U.S.-based Bain's first REIT investment in India where office space is drawing in investors as many workers have returned to offices with the waning of the COVID-19 pandemic. For Blackstone, it would mean a further selldown of its Embassy stake as it adjusts its portfolio.
India’s first sovereign green bond will go to auction Wednesday, and policy makers have laid the groundwork to ensure a successful debut.
Authorities have promoted the 80 billion rupee ($984 million) issue to the country’s biggest domestic asset managers, including state-run insurers and pension funds as well as foreign investors. The insurance industry regulator will allow the bonds to count toward insurers’ required infrastructure investments. Banks can use it toward mandatory government holdings, and there’s no limit for foreign buyers.
Homegrown software-as-a-service (SaaS) firms are poised to touch an annual revenue run rate (ARR) of $35 billion by 2027, as per a report by private equity company Bain.
According to Bain & Company’s India SaaS Report 2022, SaaS firms had recorded $12 billion to $13 billion in ARR as of last year, and are expected to grow at an annualized rate of 20-25% through 2027. This translates into a three times jump over the next five years, when compared to 2022.
Shares of Heavyweight private lender Axis Bank Ltd fell over 1.5% despite having reported a stronger-than-expected jump in third-quarter profit on Monday. The stock had logged gains in each of the last five sessions ahead of its results, adding 2.14%.
India's Kotak Mahindra Investments plans to raise at least 750 million rupees ($9.19 million) through two bonds, one maturing in April 2026 and the other in May 2026, Reuters reported on Tuesday.
The company has invited bids from merchant bankers and investors for the issuances on Wednesday.
The issue of bonds maturing in April 2026 has a base size of 250 million rupees and a greenshoe to retain an oversubscription of 750 million rupees. The company will offer a coupon of 7.99% on the issue.
The issue of zero-coupon bonds maturing in May 2026 has a base size of 500 million rupees and a greenshoe option of 2.5 billion rupees.
Sequoia mulls auditing South Asia investments after allegat lapses in Zilingo, GoMechanic, Bloomberg has reported.
Sequoia Capital’s regional arm in South and Southeast Asia is weighing special audits of several investments in the region following allegations of financial irregularities at firms such as Zilingo Pte and GoMechanic. (Read here)
Indian markets are likely to see gap up opening; SGX Nifty is up 120 points compared to previous spot Nifty closing. Asian Markets are trading in green; Nikkei is up 1.6% while Hang Seng is up 1.8%.
The fear of inflation has abated slightly with increased activity in some Asian markets. However, market participants are now expecting a possible recession. The US December macroeconomic data were dismal, pointing to a slowdown for the world's largest economy. Meanwhile, the RBI has mentioned that while some economies adapted and coped with the difficult situation in 2022, the biggest risk in 2023 will be the US monetary policy and the trajectory of the US dollar. In the run-up to the Union Budget 2023, sector and stock-specific movements are expected to hit the markets in the coming weeks.
Monthly generation of e-way bills or electronic permits required for shipment of goods within and across states has shot up to an all time high in December, suggesting that Goods and Services Tax (GST) collection in January is likely to be robust.
In a major relief for the National Stock Exchange, the Securities Appellate Tribunal (SAT) on Monday slashed to a sixth a ₹624.89 crore fine imposed on India’s largest bourse by the Securities and Exchange Board of India (Sebi) while setting aside the markets regulator’s April 2019 order against the exchange in the co-location scam. (Read here)
Crude oil prices rose slightly in early Asian trade on Tuesday in a market focused on prospects of demand recovery from top importer China and on the global economic outlook ahead of company earnings, Reuters reported.
Brent crude had risen 5 cents to $88.24 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 13 cents to $81.75 per barrel.
Crude oil prices in physical markets have started the year with a rally, as China, no longer held back by pandemic controls, has shown signs of more buying and as traders have worried that sanctions on Russia could tighten supply.
Shares of Axis Bank, Maruti Suzuki, Zomato, Tata Motors, Nykaa, among others, will be in focus on Tuesday.
Maruti Suzuki, HDFC Asset Management Company, Colgate-Palmolive, CG Power and Industrial Solutions, Macrotech Developers, Nazara Technologies, PNB Housing Finance, SBI Cards and Payment Services, TVS Motor Company are among the key companies scheduled to announce earnings today.
Nifty futures on the Singapore Exchange traded 91 points, or 0.50%, higher at 18,237.50.
Asian markets rose tracking gains on the Wall Street where shares climbed higher on Monday, fuelled by a surge in tech stocks as investors began an earnings-heavy week with a renewed enthusiasm for market-leading momentum stocks that were battered last year.
Asian shares climbed Tuesday following gains on Wall Street amid strength in technology stocks and bets for less-aggressive rate hikes from the Federal Reserve.
A benchmark of Australian equities inched higher and Japan’s Topix index rallied more than 1% while many other markets in the region remained closed for Lunar New Year celebrations. The positive tone for riskier assets was carried over from the US on Monday, when the tech-heavy Nasdaq 100 had its best two-day rally since November and the S&P 500 extended its surge to 12% from an October low.
Overnight on the Wall Street, the S&P 500 rose 1.2%, led by tech companies. The gains more than made up for the benchmark index's losses last week. The Dow Jones Industrial Average rose 0.8%, while the tech-heavy Nasdaq composite closed 2% higher. Small company stocks also rose, pushing the Russell 2000 index up 1.3%
Elsewhere in markets, oil steadied as traders awaited fresh signals on the state of Chinese crude demand after the nation ditched Covid curbs.
Gold reversed losses, with traders awaiting more US data that may shed light on the path of Fed rate hikes.
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