Indian equity markets are likely to open on a tepid note on Monday (17 January). Trends on SGX Nifty indicated a flat to negative start for the benchmarks, with a loss of 66 points or 0.36 percent. The Nifty futures were trading around 18,201 level on the Singaporean Exchange. Markets on Friday snapped 4-day winning streak to on a flat note. After a gap-down opening in the morning, both the benchmark indices recovered losses in the afternoon session but still ended in red. “Markets have recovered sharply by more than 10% from its recent lows of 16,400 levels in just 20 days. Valuations are no longer cheap and require strong earnings delivery for sustenance of positive momentum in the market,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Stocks to watch
HDFC Bank: HDFC Bank has reported a 18.1 per cent rise in its standalone net profit at Rs 10,342.20 crore for the third quarter ended December 31, 2021, on the back of improvement in loan growth and asset quality due to pick-up in demand. This is more than Rs 8,758.29 crore net profit reported during the same quarter in the previous fiscal year. HDFC Bank’s total income on standalone basis rose to Rs 40,651.60 during the quarter vs Rs 37,522.92 crore during Q3 FY21.
HCL Technologies: The technology major reported profit at Rs 3,442 crore for December 2021 quarter, up 5.4% QoQ and revenue at Rs 22,331 crore, up 8.1% QoQ. In comparison, HCL’s closest rival, Wipro’s dollar revenue grew 3% sequentially in constant currency during the quarter. HCL Tech recently acquired Starschema, a leading provider of data engineering services, based in Budapest, Hungary.
Maruti Suzuki: Passenger vehicle exports from India increased 46 per cent in the first nine months of FY22, with Maruti Suzuki India leading the segment with around 1.68 lakh units dispatched, according to the latest data by SIAM. The carmaker also said it has increased prices of its models by up to 4.3 per cent with immediate effect to partially offset the impact of the rise in input costs. In December 2021, the company had announced a price hike across models owing to increase in various input costs. The new prices are effective January 15. The weighted average price increase in ex-showroom Prices (Delhi) across models is around 1.7%.
SBI: State Bank of India has hiked interest rates on fixed deposit (FD) by up to 10 basis points (bps). This interest rate is applicable on FDs below Rs 2 crore. The new rate is effective from 15 January. The interest rate on fixed deposits for tenure 1 year to less than 2 years has been increased to 5.1 per cent from 5.0 per cent. The interest rates on FD of other tenure remains unchanged. SBI offers the highest interest rate of 5.40 per cent on FD for tenure from 5-10 years. For FD of tenure two years to less than three years stands 5.10 per cent. For tenure of 3 years to less than 5 years the interest rate is 5.30 per cent, per data available with the SBI website.
Sun Pharma/Lupin: Drug makers Sun Pharma and Lupin are recalling products in the US for different reasons. According to the latest enforcement report by the US Food and Drug Administration (USFDA), Sun Pharma is recalling 696 bottles of Pregabalin capsules (50 mg), used for the treatment of epilepsy, anxiety, and nerve pain, in the US market. Meanwhile, Lupin is recalling 50,832 bottles of Gatifloxacin Ophthalmic Solution, an antibiotic used to treat bacterial infections of the eyes.
Oil India: State-owned Oil India Ltd. (OIL) has exited from a US shale oil venture, selling its 20 per cent stake to its venture partner for $ 25 million — the second exit of an Indian firm from the US shale business in two months. “Oil India (USA) Inc (wholly owned subsidiary of OIL), divested its entire stake in Niobrara shale asset, USA,” a regulatory filing by the company said, adding that consideration received was $25 million.