CS TEAM RESEARCH
Expects market to open on a flat note on account of global cues. U.S. stocks ended an up-and-down session slightly lower, weighed down by worries over virus variants and hurdles to a fresh aid package. Dow Jones, S&P 500 and Nasdaq Composite declined marginally (0.1% each). U.S. Federal Reserve's monetary policy decision due later in the day and as investors awaited a stimulus package in the world's largest economy. Microsoft announced strong quarterly results (gained 6%). US Dow Future is trading flat while SGX Nifty declined 0.4% against the Monday close.
European equities advanced on Tuesday, as share buybacks, earnings and deal-making activity outweighed concerns over the virus spread and Italian politics. Germany Index gained 1.6% and France Index gained over 1%.
Asian stocks were mixed Wednesday after their biggest slide in two months as investors mulled a slew of earnings reports amid worries over virus variants and hurdles to stimulus. Stocks climbed in Japan and Hong Kong Index gained over half percent each. Australia market declined, which reopened after a holiday while South Korea Index gained over 1%.
Brent Crude rose toward $56 a barrel after an industry report pointed to a decrease in U.S. crude stockpiles, adding to signs of easing supply.
Gold declined marginally to below $1850/ounce ahead of the Federal Reserve’s first policy meeting of the year, with investors waiting to hear the tone that Chair Jerome Powell strikes at his press conference later Wednesday on the outlook for the U.S. economy and need for sustained monetary support.
Expect positive for the market sentiment after the IMF projected double-digit economy growth forecast (11.5%) and the government approved scrapped policy for government vehicle. Moreover, strong quarterly results and hope of favourable union budget will be positive for the market sentiment. Both FIIs and DIIs were net sellers Rs765cr and Rs388cr on Monday.
Actionable – BUY Trent, BEL, ICICI Securities, L&T. Kotak Bank, Maruti
Events - Supreme Court may announce IHH deal with Fortis Healthcare, Nalco share buy-back board meeting, CCEA and Cabinet meeting today.
Brokerage Radar - Korak Bank TGT by Jefferies at 2280, Morgan Stanley TGT on Kotak Bank at 2025, CLSA TGT on Kotak Bank at 1850, Nomura TGT on Kotak Bank at 1710. L&T TGT by Jeffries at 1745, Credit Swiss TGT on L&T at 1700, Macquarie TGT on L&T at 1680, Goldman Sachs TGT on L&T at 1680, HSBC TGT on L&T at 1550, CLSA TGT on ICICI Securities at 540.
Results (27th Jan) – Axis Bank, Bank of Baroda, Canara Bank, Emami, Hindustan Unilever, India Cement, Jyoti Labs, Marico, Nippon Life, PNB Housing, United Spirits, Tata Coffee, PSP Projects and Quess Corp.
Market summary - IMF projects impressive 11.5% growth rate for India in 2021, Scrappage policy approved, to come into effect from April 2022, Bannari Amman to split each share into two, Kotak Bank reported stable Asset quality in Q3 results, Amazon Appeals India Court to Halt Future’s Sale to Reliance, L&T Said To Emerge As Lowest Bidder For Chennai’s Two Metro Projects, Strides gets US FDA approval for URSODIOL Capsules, JSW Plans To Tap Overseas Bonds More. L&T and ICICI Securities announced strong Q3 results.
Watch on Auto stocks after government approved scrapped policy- Government vehicles older than 15 years will also be scrapped as per the vehicle scrappage policy approved on January 25, the Ministry of Road Transport and Highways' (MoRTH) has confirmed. The policy will come into effect from April 1, 2022. Positive for Auto stocks like Maruti, Tata Motor, M&M.
Road Transport and Highways ministry approves proposal to levy a 'Green Tax' on old vehicles that are polluting the environment. Transport vehicles older than eight years can be charged at the time of renewal of fitness certificate, at the rate of 10-25% of road tax – Not yet any major impact on Auto stock