Sensex and Nifty rose on Tuesday led by heavyweights HCL Tech, HDFC and Reliance. Asian stocks were mostly lower tracking US markets that ended weak as investors mulled the impact of a withdrawal of unprecedented stimulus and the spread of omicron virus. Traders are awaiting US December consumer inflation data due to be released on Wednesday.
Covid has not impacted India’s long-term growth trajectory:Tata group chairman
The coronavirus pandemic has not impacted India’s long-term growth trajectory although it has delayed it and in this decade, the country will lead the global growth rates, Tata group chairman N Chandrasekaran said on Tuesday.
Marksans Pharma receives final US FDA nod for Cetirizine Hydrochloride tablets
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Sensex up 200 points led by RIL, HDFC
Star Health launches WhatsApp services to facilitate policy, claims access
Adani Green Energy Q3 total operational capacity increases 84% YoY to 5,410 MW; shares up 4%
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India mulls easing curbs on some Chinese investments – Bloomberg
Aurobindo Pharma’s arm CuraTeq and Orion expand licensing deal for marketing & distribution of biosimilar pipeline in Baltic States
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Pricing led growth; margin pressure continues: Axis Direct on Consumer Durables Q3FY22
Demand trends: The overall demand sentiment improved around and post the festive season. However, some moderation in demand was observed in late Nov’21 and Dec’21. Wires & Cables witnessed higher value growth, while volume growth remained subdued. Higher growth was seen in smaller appliances and seasonal products like water-heaters, air-purifiers. Channel checks indicated 4-5% growth in fans during the quarter. For RAC’s, the preference for fixed speed Ac’s continues to be high. While most RAC brands have taken price hikes during the quarter, it may impact demand going forward. For LED lighting, the demand traction remained strong during the festive season but pricing growth outpaced volume growth.
Higher RM costs continue to weigh on margins: The average raw material prices were higher in the case of commodities like Aluminium, Copper & PVC. However, the prices moderated temporarily in Nov’21. The prices of TDI witnessed a moderation in the middle of the quarter but they moved up again by the end of Q3FY22. The high RM prices thus continue to weigh on margins while companies resorted to price hikes to partially offset the price hike.
Key points to monitor: We would watch out for management commentaries on a) Demand momentum post the festive season and preparedness for the possible COVID 3.0, b) Price hikes taken by the companies to pass on the increased RM cost, c) Market share gains vs. unorganized players (for Polycab India and Sheela Foam), d) Updates on production (for Dixon Technologies and Amber Enterprises) under the PLI schemes, and e) Demand trends in rural and urban areas, sales mix, and online sales. We would also closely monitor commentary on international subsidiaries and their performance (especially Symphony and Sheela Foam) as well as export opportunities going forward.
Top result plays:
Positive: Polycab India, Amber Enterprises, Dixon Technologies
Negative: Symphony Ltd.
Mid-market trade: Sensex up 150 points
YES Securities expects Nifty to hit 21,000 in 2022 and 32,000 in 2025
Household consumption will increase by 46% to Rs191 trillion over the next four years; GenZ and Millennials to drive consumption, , according to the ‘Sense and Sentiment Report: Envisioning 2022 and Beyond’ by YES Securities, a wholly owned subsidiary of YES Bank
Troubled sectors like Telecom, Capital Goods, Pharma, Banks, Asset Management, Real Estate, Cement, Discretionary, Building Materials among others are out of woods
US Fed Taper Tantrums won’t spoil the party; market cycles hints at a mega rally
High costs, low use may derail development of EV charging infra
The electric vehicle (EV) industry may fall well short of its target of setting up a sufficient number of public charging stations in India this year and thus dampen the excitement over EV adoption in the country. (Read more)
JSW Steel’s crude steel production volume at 5.35 mt in Q3FY22, registering a growth of 6% QoQ and 28% YoY
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Power outage affects trading at LME – Bloomberg News
Spread of new variant hurt retail sales in December
Retail sales grew 7% in December over December 2019 or pre-pandemic levels, but slowed down month-on-month as the spread of covid-19 cases brought with it fresh curbs in parts of the country, Retailers Association of India (RAI) said in its 23rd edition of the Retail Business Survey.
Several retailers reported a dip in business towards the end of December.
For Alembic Pharma, product approvals in US indicate worst may be behind
Alembic Pharmaceuticals Ltd announcement on tentative approval for Dronedarone 400 mg tablet should add to the earnings outlook for the company. The company’s US sales outlook is improving gradually with the company receiving multiple approvals for launches in the US. (Read more)
Covid guidelines: Delhi Disaster Mgmt Authority says all private offices shall be closed except those in exempt category
Larsen &Toubro Infotech partners Securonix & Snowflake to strengthen cybersecurity offerings
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ICICI Securities: Daily Commodities Outlook
Bullion Outlook
· Gold prices fell slightly on Monday amid a firmer dollar and elevated treasury yields, as investors awaited key inflation data due later this week that could stress the need for earlier-than-anticipated interest rate hikes by the Federal Reserve
· US 10-year treasury yields rose to 1.8%, their highest level in two years, as the dollar ticked up amid bets US inflation will bolster the case for higher interest rates
· Investors will now focus on the US inflation data due on Wednesday. US core CPI is expected to have risen to its highest in decades at 5.4% in December, up from 4.9% in the prior month
Energy Outlook
· Oil prices traded flat on Monday as concerns over supply from Kazakhstan and Libya were offset by demand fears stoked by the rapid global rise in Omicron Coronavirus infections
· A fall in Azeri crude oil exports from Turkey’s Ceyhan port lent some support to prices. February exports were set at 14.72 million barrels, down from 17.27 million in January
· Opec’s output in December rose by 70,000 bpd from the previous month against the 253,000 bpd increase allowed under the Opec+ supply deal
Rupee gains 13 paise to 73.92 against US dollar in early trade
Timex Group India Ltd up 5%
The leading watchmaker said it has been granted manufacturing and distribution rights for Guess & Gc branded watches in the country. It has sealed a pact with Timex Nederland B.V. for the grant of manufacturing and distribution rights for the Indian market
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Top 5 bluechip growth stocks to add to your watchlist
While one can invest in stocks for the short term or long term, the chances of earning high…
Read More: Market LIVE Updates: Sensex up 250 pts led by RIL, HDFC; Nifty above 18,050