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Major equity indices declined during the week as investors were worried that Fed would continue to raise interest rates in 2023 to tame inflation. The Sensex fell 1.55% to 59,900.37. The Nifty 50 index lost 1.36% to 17,859.45. The BSE Midcap index dropped by 0.58% to 25,166.71. The BSE Smallcap index declined 0.50% to 28,783.56.
Top losers among Nifty indices were IT [-2.32%], Media [-2.29%], Private Bank [-1.86%], Private Bank [-1.66%] and Realty [-1.38%]. Top gainers were Nifty Consumer Durables [0.61%], FMCG [0.55%], Pharma [0.46%], Oil & Gas [0.21%] and Auto [0.13%].
In cash segment, FIIs were net sellers for Rs 7813.5 crore during the week and DIIs were net buyers for Rs 2756.7 crore.
Company News
Reliance Jio: The company has signed a partnership with British football club Manchester City to become its official mobile communications network partner in India. Man City’s OTT platform CITY+ will be integrated into the JioTV platform and provide exclusive content to Indian viewers, the company said. The content will also include match highlights, live Manchester City Women’s team and Elite Development squad fixtures, matchday content and City Studio’s documentaries.
Bajaj Finance and Bajaj Finserv: Shares of Bajaj Finance tanked 9.05% and Bajaj Finserv tumbled 7.6% after Bajaj Finance posted weaker-than-expected quarterly business updates. Bajaj Finance said that new loans in October–December quarter of FY23 stood at 7.8 million, up 5.4% from the year-ago period. Its asset under management (AUM) has jumped 27% YoY to Rs 2.30 trillion in Q3FY23, from 1.81 trillion in Q3FY22. Its deposit book has also swelled to Rs 43,000 crore as of December 2022, up 41% YoY. The company has also recorded its highest ever quarterly increase in customer franchises at 3.1 million in Q3FY23 and its customer franchises stood at 66 million as of end of December 2022.
Bajaj Finserv’s subsidiary Bajaj Allianz General Insurance’s gross direct premium underwritten stood at Rs 1,209 crore in December. For the nine months ended December 2022, the gross direct premium underwritten was at Rs 11,609 crore.
HDFC Bank: The private lender’s advances aggregated to approximately Rs 15,07,000 crore in Q3FY23 recording a growth of around 19.5% YoY as against Rs 12,60,900 crore in the year-ago period. The bank’s deposits aggregated to approximately Rs 17,33,500 crore in Q3FY23, registering a growth of around 19.9% YoY. The bank’s CASA ratio stood at around 44% in Q3FY23 compared to 47.1% in the year-ago period.
HDFC assigned loans amounting to Rs 8,892 crore to HDFC Bank in the Q3FY23, compared to Rs 7,468 crore in the corresponding quarter of the previous year. The gross income from dividend for the quarter ended December 2022 was Rs 482 crore compared to Rs 195 crore a year ago.
State Bank of India (SBI): The lender’s board has approved raising infrastructure bonds aggregating up to Rs 10,000 crore in FY23. The fundraising will be done via public issue or private placement and the said amount will be raised in the current fiscal, the company said in an exchange filing.
Oil and Natural Gas companies: The Central government raised windfall tax on petroleum, crude oil and aviation turbine fuel late on Monday. It raised windfall tax on crude oil to Rs 2,100 ($25.38) per tonne from Rs 1,700 ($20.55), effective on Tuesday. The rise is expected to affect the profit margin of oil and natural gas companies. Meanwhile, ONGC ‘Sagar Samrat’ has started Oil and Gas production in Arabian Sea.
Hero MotoCorp: The two-wheeler manufacturer sold 3,94,179 units in December 2022, down 0.15% compared to the year-ago period. The company’s motorcycle sales stood at 3,56,749 units (down 5.34% YoY) and scooters sales at 37,430 units (up 108.98% YoY) in December 2022. Total domestic rose 1.84% YoY to 3,81,365 units while total exports dropped 36.84% YoY to 12,814 units in December 2022.
Larsen & toubro (L&T): The company said that its construction arm has secured ‘major’ orders for its water & effluent treatment business. As per Larsen & Toubro’s (L&T) classification, the value of the significant project is Rs 5,000 crore to Rs 7,000 crore. The order entails executing two lift irrigation projects to irrigate 2,05,000 hectares of culturable command area covering more than five hundred villages of Dewas & Dhar districts in Madhya Pradesh on a turnkey basis. The micro irrigation projects will lift 60 cumecs of water from the Narmada River to irrigate the farmlands benefitting 3,00,000 farmers in the process.
L&T’s subsidiary, L&T Realty Developers, has inked a pact to sell entire stake of 99% in Think Tower Developers. The entire stake is being sold to Pratik Harshad Kalsariya, who does not belong to the promoter group. Think Tower Developers has not commenced commercial operation and hence has zero revenue and net worth.
Hindustan Petroleum Corporation (HPCL): The company has forayed into petrochemical business with pre-marketing of ‘HP Durapol’ brand of polymers, which is a pre-cursor to marketing of HPCL Rajasthan Refinery (HRRL) petrochemical products. HRRL sees a 9-MMTPA-capacity grassroot refinery-cum-petrochemical complex at Pachpadra in Rajasthan.
Maruti Suzuki India: The automaker has launched Grand Vitara with S-CNG technology. GRand Vitara is powered by the next-gen K-series 1.5-litre, dual jet, dual VVT engine. The SUV is offered with a 5-speed manual gearbox, and delivers mileage of 26.6 km/kg. The SUV develops a peak power output of 64.6kW@5500rpm and max torque is rated at 121.5 Nm@4200rpm in CNG mode.
IDBI Bank: The Securities and Exchange Board of India has given its approval for reclassification of the government’s shareholding in the bank as ‘public’ after its disinvestment. The government and state-run Life Insurance Corporation of India (LIC) will sell 60.72% stake in IDBI Bank as part of the disinvestment, and after the stake sale, government’s shareholding will be reduced to 15%. The consent has been given on the condition that the government’s voting rights in the lender should not exceed 15% of the total voting rights of the bank.
IndusInd Bank: The private lender’s net advances improved to Rs 2,71,966 crore in Q3FY23, registering a growth of 19% YoY. The bank’s deposits jumped 14% YoY to Rs 3,25,491 crore in Q3FY23. CASA ratio stood at 42% in Q3FY23 compared with 42.2% in the year-ago period.
AU Small Finance Bank: The lender’s gross advances rose 7% sequentially to Rs 56,335 crore as of December 31, according to the provisional data. The total deposits at Rs 61,101 crore was up 5% sequentially.
Adani Enterprises: The company’s subsidiary, Adani Cement, has launched green concrete solution ‘ACC ECOMaxX’ in Mumbai with 30-50% lower embodied carbon content compared to standard OPC offering. The Mumbai Coastal Road Project has maximised its green impact with ACC ECOMaxX by saving 3,447 tonnes of CO2 emissions compared to conventional concrete.
Meanwhile, Adani Enterprises will make an additional payment for NDTV shares acquired via the open offer. The company will pay an extra Rs 48.65 per share over the Rs 294 it paid for NDTV shares in the open offer. This takes the cost per share to Rs 342.65, the same as the amount paid per share for the 27.6% stake acquired from promoter couple Roys.
Federal Bank: The lender said that its total deposits aggregated to Rs 2,01,425 crore at the end of Q3FY23, registering a growth of 14.8% as compared with Rs 1,75,432 crore in the year-ago period. Its CASA deposits stood at Rs 67,540 crore, up 7.2% YoY from Rs 64,343 crore in the same period a year ago. The bank’s gross advances grew by 19.1% to Rs 1,71,043 crore from Rs 1,43,638 crore as of December 31, 2021.
Angel One: The company said that it has increased its client base to 12.51 million in the month of December 2022, a 2.6% MoM growth and 60.7% YoY growth. The number of of orders stood at 86.23 million, up 21.8% MoM and up 33.5% YoY. The overall average daily turnover was Rs 16,399 billion, a rise of 26.4% MoM and 133.3% YoY growth.
Mahindra & Mahindra (M&M): The company said that its overall auto sales for the month of December 2022 stood at 56,677 vehicles, registering a growth of 44.74% as against 39,157 vehicles sold in December 2021. On a sequential basis, M&M’s total auto sales declined 2.79% in December 2022 as against 58,303 units sold in November 2022.
The Passenger Vehicles segment, which includes UVs, cars and vans, witnessed a sale of 28,445 vehicles in December 2022, up 61% year on year (YoY) from 17,722 units sold in December 2021. The company sold 20,080 units of commercial vehicles (LCV+MHCV) in December 2022 as against 15,938 units sold in December 2021, recording a growth of 26%. Exports for the month stood at 3,100 vehicles (up 3% YoY).
Ashok Leyland: The company’s total sales for December 2022 stood at 18,138 units, up by 45% as against 12,518 units in December 2021. Total domestic sales for December 2022 stood at 17,112 units, from 11,493 units for December 2021. Total vehicle exports rose 0.1% YoY to 1,026 units in December 2022.
Bajaj Auto: The two-wheeler maker has achieved total sales of 2,81,486 units in December 2022 compared to 3,62,470 units sold in the year-ago period. Total sales include domestic sales of 1,48,555 units, higher by 2% YoY and exports of 1,32,931 units, a decline of 39% YoY.
TVS Motor: The company said its total vehicle sales fell 3.6% YoY to 242,012 units. The company’s motorcycle sales dropped 6.7% YoY to 1,24,705 units and exports declined 23% to 79,402 units on a yearly basis.
Escorts Kubota: The company sold 5,573 tractors in December 2022, a growth of 18.7% as compared with 4,695 tractors sold in December 2021. On a sequential basis, tractor sales tumbled 30% in December 2022 from 7,960 units sold in November 2022. Domestic tractor sales in December 2022 stood at 4,979 tractors, recording a growth of 22% as against 4,080 tractors sold in December 2021. Rural sentiments continue to remain favorable on account of good kharif procurement, rabi sowing and better water level in reservoirs, the company said. Export tractor sales declined 3.4% to 594 units sold in December 2022 from 615 units sold in the same period a year ago.
Avenue Supermarts (DMart): The hypermarket chain operator reported standalone revenue from operations at Rs 11,304.58 crore for quarter ended December FY23, a rise of 25% from Rs 9,065 crore in same period last year. The total number of stores as of December 2022 stood at 306.
Dabur India: The FMCG major said that its India business is expected to report low- to mid-single digit revenue growth due to challenging macro-economic environment and muted category growths during the quarter. However, the international business is expected to deliver double-digit revenue growth in Q3FY23. Healthcare portfolio returned to positive growth trajectory, still navigating high bases of the pandemic. Food & Beverages (F&B) business continues to trend at robust levels. During the quarter, F&B’s growth will see some moderation on account of early onset of the festive season.
Macrotech Developers (Lodha): The realty company said that it had achieved pre-sales of Rs 3,035 crore in Q3FY23, a growth of 16.3% YoY. The company’s 9MFY23 pre-sales stood at Rs 9,039 crore, up by 62.3% from Rs 5,568 crore recorded in 9MFY22. The company said that it had added 4 new projects having approximately 5 million square feet. The net debt during the period under review reduced by approximately Rs 753 crores to Rs 8,042 crore.
Sobha: The company’s total sales value improved by 36% Yoy to Rs 1,424.7 crore in Q3FY23 from Rs 1,047.5 crore recorded in the corresponding quarter last fiscal. The real estate developer further informed that the sales volume in Q3FY23 stood at 1.48 million square feet up by 12% from 1.32 million square feet recorded in Q3FY22. Average price realization increased by 22% to Rs 9,650 per square feet in Q3FY23 from Rs 7,920 per square feet in Q3FY22.
SJVN: The Cabinet Committee on Economic Affairs has approved investment of Rs 2,614 crore for company’s 382 MW Sunni dam hydroelectric project in Himachal Pradesh. The project is scheduled to be commissioned within 63 months of the commencement of construction works and will generate 1,382 million units annually. On completion of the project, the company will earn 16.50% return on the equity infusion. The investment will be 70% debt and 30% equity.
IRCTC: The Indian Railways registered a 71% jump in revenue from the passenger segment between April 2022 and December 2022, according to a statement by the Ministry of Railways. The revenue during the period stood at Rs 48,913 crore vs Rs 28,569 crore last year.
Economy News
The S&P Global India Manufacturing PMI rose to 57.8 in December 2022 from 55.7 in November 2022, registering the 18th straight month of expansion. The seasonally adjusted S&P Global India Services PMI rose to 58.5 in December from 56.4 in November. The upturn was attributed to robust intakes of new work and favourable market conditions.
The S&P Global India Composite PMI Output index rose from 56.7 in November to 59.4 in December, highlighting the quickest rate of growth since January 2012. Indian private sector companies signalled a strong performance at the end of 2022, with manufacturers and service providers recording faster expansions in output.
Global Markets
The US market ended higher in a truncated week after better-than-expected jobs report boosted investor sentiment. For the week, the S&P 500 rose 1.44%, the Dow Jones Industrial Average index increased 1.46%, and the Nasdaq advanced 0.98%.
A raft of US economic data was released during the week. Nonfarm payrolls rose by 223,000 in December, the smallest increase in two years but above expectations. The separate household survey showed that unemployment fell back to its post-pandemic low of 3.5%, last recorded in September.
Payroll processing firm ADP’s tally of jobs in the private sector showed an increase of 235,000 in December 2022, well above expectations for around 150,000 and August’s recent low of 132,000. Weekly initial jobless claims also fell unexpectedly to 204,000, their lowest level since September.
The Institute for Supply Management (ISM) showed that the index of services sector activity fell into contraction territory and was below consensus. The index showed a reading of 49.6 as new orders slowed down. Meanwhile, US manufacturing contracted further in December. The Institute for Supply Management (ISM) said that its manufacturing PMI dropped to 48.4 last month from 49.0 in November, contracting for a second straight month.
The Federal Reserve released the minutes from its December 13-14 meeting, which showed central bank officials expect rates to be higher for some time. Due to persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.”
Chinese share market rose after reports said that Hong Kong would reopen its border to mainland China and that Beijing was considering to relax borrowing terms and conditions for the country’s ailing property sector. The Shanghai Composite index advanced 2.21%, the CSI 300 index gained 2.82%, and the Hang Seng index jumped 6.12%.
On the economic front, the official Purchasing Managers’ Index (PMI) data for manufacturing and non-manufacturing fell in December. Overall, the composite PMI fell to 42.6 in December 2022 from 47.1 in November 2022. The economic activity declined due to the rise in Covid-19 infections after China abandoned its zero-COVID approach in early December.
Japan’s stock market closed negatively for the week as market participants were concerned over global monetary policy tightening and possible recession. The Nikkei 225 index was down 0.46% and the broader Topix index lost 0.84%. The Japanese yen weakened to about JPY 134.1 level against the US dollar, from about JPY 131.1 the prior week.