Wall Street equities declined overnight on Thursday with data indicating a strong labour market, which raised concerns over expectations of a pause in the fastest rate hiking cycle in the U.S. since the 1980s.
European equities also fell, posting their worst trading day in 2023 so far after the president of the European Central Bank, Christine Lagarde, underscored the bank’s determination to tackle the rise in inflation through rate hikes.
Asian markets recovered from a mixed start on Friday, with the MSCI’s gauge of Asia Pacific stocks outside Japan rising 0.44%.
Hindustan Unilever was the top loser in the Nifty 50 index, declining over 4% after the company said it would pay higher royalty fees to parent Unilever. Its net profit beat estimates in the third quarter.
The stock, which has the second highest weightage among fast-moving consumer goods shares, dragged the FMCG index , which fell 1%.
The losses in the FMCG index were offset by gains in financials that were up 0.5% ahead of key earnings from private lenders ICICI Bank and Kotak Mahindra Bank due on Saturday.
Reliance Industries, India’s top firm by revenue and the highest weightage stock in Nifty 50, fell nearly 1% ahead of its earnings due post market hours on Friday.
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Bank of India says tenure of MD, CEO Atanu Kumar Das has ended on Jan 19
Price as on 20 Jan, 2023 11:55 AM, Click on company names for their live prices.
Tanishq, India’s leading jewelry retail brand from the house of Tata, has entered the American market and its first store, in New Jersey’s Little India, was inaugurated by Senator Robert Menendez this week.
Price as on 20 Jan, 2023 11:44 AM, Click on company names for their live prices.
IT stocks gain in trade; these are the top performers
Price as on 20 Jan, 2023 11:38 AM, Click on company names for their live prices.
Dr Reddy’s Laboratories on Friday said it has successfully completed the full set of clinical studies of its proposed rituximab biosimilar candidate, ‘DRL_RI’ for filing in highly regulated markets such as the US, Europe and other regions.
Price as on 20 Jan, 2023 11:37 AM, Click on company names for their live prices.
Shares of L&T Technologies Services (LTTS) fell as much as 4% to Rs 3,262 in Friday’s trade after the Q3FY23 results. The company reported a 22% rise in net profit to Rs 303.6 crore for the December 2022 quarter. The company had reported a net profit of Rs 248.8 crore in the year-ago period. The revenue of the company grew by 21.4% to Rs 2,048.6 crore in the quarter under review from Rs 1,687.5 crore a year ago. Whereas, EBIT for the quarter stood at Rs 382.9 crore while the EBIT margin was at 18.7%.
Price as on 20 Jan, 2023 11:23 AM, Click on company names for their live prices.
The need of the hour is to support farmers due to elevated inflation, and hence there is a high expectation of a higher allocation for rural development in this budget. The allocation for FY23 was Rs.1.35 trillion, but it has already been spent Rs.1.55 trillion. Rural demand is important for overall growth, as rural India accounts for about 65% of the population. Being a pre-election budget, the usual contemplation is that it will be populist. We can expect measures like increasing MSP (Minimum Support Prices), expansion of warehousing, micro irrigation, and credit growth, increasing the revenue of the rural market. Other instruments we can expect is an increase in the allocation of schemes like Prime Minister Awas, Ujjwala and Saubhagya Yojana schemes, indirectly improving the standard of rural economy. Further, steps on rationalization of tax slabs or an increase in tax exemption are positive for FMCG/Retail companies by increasing the disposable income of consumers. We do not anticipate any changes in the GST rate in the budget.
– Vincent K A, Research analyst at Geojit Financial Services
JSW Steel is all set to declare its Q3 results! What to expect?
#EarningsWithETNOW | JSW Steel is all set to declare its Q3 results tomorrow While lower volumes are expected to… https://t.co/8VohxRo7oo
— ET NOW (@ETNOWlive) 1674190211000
Rating firm Moody’s Investors Service on Friday affirmed a positive rating on State Bank of India while upgrading long-term local and foreign currency bank deposit ratings Bank of Baroda, Canara Bank and Punjab National Bank. It maintained a stable outlook on all four banks’ long-term ratings.
Price as on 20 Jan, 2023 10:20 AM, Click on company names for their live prices.
Top gainers in morning session
Price as on 20 Jan, 2023 10:14 AM, Click on company names for their live prices.
Jefferies on Cholamandalam Finance
#BrokerageRadar | Jefferies on Cholamandalam Finance: Strong loan growth outlook; NIMs to bottom out #StockMarket… https://t.co/GXWVVvXtDl
— ET NOW (@ETNOWlive) 1674182325000
Nifty which is now stuck in a narrow band of 17800-18200 is likely to remain in this range in the absence of major triggers. FIIs turning buyers is a major support at 17800. Triggers to take Nifty beyond 18200 are not yet visible. Large Q3 results from the likes of RIL, ICICI Bank and Kotak have to be closely watched for indications. The strength of HDFC twins and the weakness of ICICI Bank indicate some churn within financials. Data on capex, credit growth and manufacturing and services PMI indicate that the growth rebound in the economy is robust. Capital goods segment has the potential to outperform this year.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
While the upside attempts failed to find momentum, it did not require dips as far as our turnaround point of 18047 to slow the slippages. Consequently, yet another upside attempt isto be attempted today with 18270-17800 continuing to be the out band. If 18047 vicinity continues to hold, we may rest assured that 17800 is a near term bottom, setting up a likely target of 18600. However, inability to float above 18947 willforce a retest of 17960, but a collapse is less favoured as is.
– Anand James – Chief Market Strategist at Geojit Financial Services
Tata Motors is in talks with global investors to raise at least $500-600 million more for its fast-growing electric vehicles business, just over a year after it received $1 billion from TPG’s Rise Climate Fund and Abu Dhabi state holding company ADQ, said people aware of the matter.
Price as on 20 Jan, 2023 09:27 AM, Click on company names for their live prices.
Indian IT services provider Coforge Ltd reported a better-than-expected 24% jump in third-quarter profit on Friday, aided by multiple large outsourcing deals across sectors. India’s outsourcing industry is riding on orders from the U.S. and Europe where businesses made an aggressive shift to cloud-based systems during the pandemic, and are still looking for various cloud and digital migration based services.
Price as on 20 Jan, 2023 09:26 AM, Click on company names for their live prices.
Rupee opens up 0.12% at 81.2600 per U.S. dollar; previous close 81.3600
Earnings impact…
Price as on 20 Jan, 2023 09:21 AM, Click on company names for their live prices.
Fast moving consumer goods major Hindustan Unilever Limited (HUL) on Thursday said that the royalty fee it pays to parent Unilever Plc has been hiked by 80 basis points, and will be effected in a staggered manner over a period of 3 years. This is the first such hike undertaken by the parent firm after 10 years.
Price as on 20 Jan, 2023 09:21 AM, Click on company names for their live prices.
Top movers in morning trade
Price as on 20 Jan, 2023 09:20 AM, Click on company names for their live prices.
The company has reported a net profit of Rs 2,156 crore, down 20% year-on-year for the December quarter. The company has also declared interim dividend of Rs 13 per share. Anil Agarwal-promoted Vedanta on Thursday said it will sell Zinc International assets to Hindustan Zinc for a cash consideration of USD 2,981 million.
Price as on 20 Jan, 2023 09:20 AM, Click on company names for their live prices.
Opening Bell: Sensex flat, Nifty tests 18,100; Hindustan Zinc falls 8%, HUL 3%
Pre-open session: Sensex rises over 100 points; Nifty above 18,145
Markets may edge higher in early trades Friday despite overnight weakness in key US indices, as positive leads from other Asian gauges, including the SGX Nifty, would keep investors in good stead. After continuous selling from the FIIs, overseas investors finally turned net buyers of local shares on Thursday to the tune of Rs 400 crore. The Volatility index (VIX) too remains in bulls’ favor as it is now hovering at 13.96 levels as on January 19. On the technical front, the Nifty options data suggests the index is likely to be in a trading range of 17500-18500 zone.
– Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
Asian stocks edge up, dollar sags as markets mull Fed risks
Most Asian equity markets edged higher on Friday, while the U.S. dollar hung near its weakest level since May, with investors fretting about the risks of a global recession as the Federal Reserve presses on with interest rate increases.
Quarterly earnings today
56 companies to detail December quarter earnings. Reliance Industries, JSW Steel, HDFC Life Insurance, Bandhan Bank, and RBL Bank among the major ones.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 18 points, or 0.10 per cent, higher at 18,131.50, signaling that Dalal Street was headed for a positive start on Friday.
Tech View: Doji candle on Nifty signals pause in uptrend
Indicating non-directional activity in the market, the headline equity index Nifty today formed a Doji candle on the daily charts on weekly derivative expiry. The index has been making higher lows from the last five sessions.
Tokyo stocks open lower extending US falls Tokyo stocks open lower
Tokyo stocks opened lower on Friday, extending falls on Wall Street, as worries over a recession lingered after a top Federal Reserve official pledged a tough line on inflation.The benchmark Nikkei 225 index was down 0.32 percent, or 83.27 points, at 26,321.96 in early trade, while the broader Topix index slipped 0.19 percent, or 3.62 points, to 1,912.00.
Wall Street slips as labor market data fuels Fed worry
US stock indexes closed lower on Thursday after data pointing to a tight labor market renewed concerns the Federal Reserve will continue its aggressive path of rate hikes that could lead the economy into a recession.
Oil prices climb on hopes for Fed slowing interest rate hikes
Oil prices rose on Friday on optimism that the U.S. Federal Reserve will ends its tightening cycle, buoying the economy and boosting fuel demand. Brent futures for March delivery gained 48 cents, or 0.6%, to $86.64 a barrel by 0113 GMT, while U.S. crude advanced 54 cents to $80.87 per barrel, a 0.7% gain.
Rupee falls 7 paise against US dollar
The rupee settled 7 paise lower at 81.37 against the US dollar on Thursday, weighed down by a muted trend in domestic equities. However, fresh foreign capital inflows restricted the rupee’s loss, forex traders said.
Sensex, Nifty on Thursday
The BSE Sensex index ended 187 points or 0.31% lower at 60,858, while Nifty50 fell 57 points or 0.32% to settle at 17,108.
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