Stocks To Watch: SBI, Adani Ports and SEZ, Tata Consumer Products, ITC, InterGlobe Aviation

Asian markets are poised for a cautious open as disappointing earnings from some big-tech names after-hours weigh on sentiment following a surge in the U.S. equities during official trading.

Australian stocks struggled to gain traction, while futures contracts for Japan gain and Hong Kong contracts fell. The U.S. futures fell in early Asian trading, too. The tech-heavy Nasdaq 100 rallied Thursday and the S&P 500 closed up more than 1%, boosted by Meta Platforms Inc.’s positive earnings.

After trading hours in the U.S., Apple Inc., Amazon.com Inc. and Google parent Alphabet Inc. fell more than 2% after releasing results.

At 06:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.25% at 17,682.5.

The yield on 10-year Treasuries declined four basis points to 3.37%. Crude price changed little, while gold fell 0.6%. Bitcoin rose 0.9% to trade close to $24,000-level.

The headline indices diverged at the end of trading hours on Thursday, continuing the mixed trend from the volatile budget session a day ago.

Rupee closed lower against the U.S. dollar amid forex outflow and corporate demand for the greenback.

Overseas investors in Indian equities turned net sellers after a day on Thursday. Foreign portfolio investors sold equities worth Rs 3,065.35 crore, while domestic institutional investors remained net buyers for the ninth day in a row, buying stocks worth Rs 2,371.36 crore.

• SBI Life Insurance Co.: The life insurer told the exchanges that the impact of Budget recommendations to non-linked policies with annual premium of above Rs 5 lakh will not have any significant impact as the share of such policies in the total annual premium equivalent is under 2%.

• TVS Motor Co.: The company, through its subsidiary TVS Motor (Singapore) will acquire 31.44 lakh series AA shares in electric mobility player Ion Mobility for $9.5 million (Rs 77.89 crore).

• Adani Ports and Special Economic Zone: The company’s subsidiary Adani Harbour Services incorporated Port Harbour Services International in Singapore to carry out business, consultancy of port and marine services and trading in equipment relating to port and marine business.

• Inox Green Energy Services: The company will acquire 51% stake in I-Fox Windtechnik India for Rs 35,947.71 per share.

• Engineers India: The company signed an MoU with Ministry of Housing and Urban Affairs for providing transaction advisory services for setting up large scale bio‐methanation and waste-to-energy projects in selected 25 cities.

• HDFC Life: On Budget recommendation to tax policies with annual premium above Rs 5 lakh, the insurer clarified that the business at risk could be 12-12% of the total APE.

• HDFC Asset Management Company: The company received SEBI approval for change in its control due to proposed stake sale by abrdn Investment Management Limited, the co-sponsor of HDFC Mutual Fund.

• NMDC: The company fixed prices of iron ore, with effect from Jan. 28, 2023,  with lump ore at Rs 4,400 per tonne, and fines at Rs 3,910 per tonne.

• Mahanagar Gas Q3 FY23 (Consolidated, YoY)

Revenue 62.62% at Rs 1671.39 crore (Bloomberg estimate: Rs 1,721.71 crore)

Ebitda up 148.399612027158% at  Rs 256.1 crore (Bloomberg estimate: Rs 248.99 crore)

Ebitda margin at 15.32% vs 10.03% (Bloomberg estimate: 14.5%)

Net profit up 202.99% at Rs 172.07 crore (Bloomberg estimate: Rs 159.41 crore)

The board recommended a dividend of Rs 10 per share.

• Karnataka Bank Q3 FY23

NII up 34% at Rs 834.76 crore

Net profit up 118.49% at Rs 826.49 crore (YoY)

GNPA at 3.28% vs 3.36% (QoQ)

NNPA at 1.66% vs 1.72% (QoQ)

• Crompton Greaves Consumer Electricals Q3 FY23 (Consolidated, YoY)

Revenue up 7.49% at Rs 1,516.21 crore (Bloomberg estimate: Rs 1,697.16 crore)

Ebitda down 24.38% at Rs 152.39 crore (Bloomberg estimate: Rs 221.45 crore)

Margins at 10.0507185680084% vs 14.29% (Bloomberg estimate: 13%)

Net profit down 42.5% at Rs 85.25 crore (Bloomberg estimate: Rs 143.11 crore)

• Tata Consumer Products Q3 FY23 (Consolidated, YoY)

Revenue up 8% at Rs 3,474.55 crore (Bloomberg estimate: Rs 3,471.32 crore)

Ebitda down 2% to Rs 453.66 crore (Bloomberg estimate: Rs 458.02 crore)

Ebitda margin at 13.1% Vs 14.4% (Bloomberg estimate: 13.2%)

Net profit up 33% to Rs 351.76 crore Vs Rs 265.05 crore (Bloomberg estimate: Rs 281.88 crore)

• Hikal Q3 FY23 (Consolidated, YoY)

Revenues up 4.99% at Rs 540.2 crore (Bloomberg estimate: Rs 575.7 crore)

Ebitda down 19.73% at Rs 74.58 crore

Margins at 13.81% vs 18.06%

Net profit down 41.57% at Rs 26.41 crore (Bloomberg estimate: Rs 39.1 crore)

• Apollo Tyres Q3 FY23 (Consolidated, YoY)

Revenue up 12.53% at Rs 6,422.75 crore (Bloomberg estimate: Rs 6,201.24 crore)

Ebitda up 22.83% at Rs 913.36 crore (Bloomberg estimate: Rs 823.94 crore)

Ebitda margin at 14.22% vs 13.03% (Bloomberg estimate: 13.3%)

Net profit up 30.68% at Rs 292.11 crore (Bloomberg estimate: Rs 272.6 crore)

State Bank of India, ITC, InterGlobe Aviation, Tata Power, Bank of Baroda, Quess Corp, Zydus Lifesciences, JK Tyre & Industries, Tube Investments of India, Marico, One97 Communications, Kansai Nerolac, Divi’s Laboratories, Aarti Industries, Mahindra & Mahindra Financial Services, Jubilant Pharmova, Medplus Health Services, Manappuram Finance, Sumitomo Chemical India, Emami, Praj Industries, Sun TV Network, Star Cement, Jamna Auto Industries, Thyrocare Technologies, Vakrangee, Shipping Corporation of India, PTC India Financial Services, KRBL, Ion Exchange, India Cements, Ethos, Dalmia Bharat Sugar & Industries, Borosil, Brightcom Group.

Polyplex: Sanjiv Sarita Consulting bought 2.9 lakh shares (0.95%), Bhilangana Hydro Power sold 69,000 shares (0.21%) and Utkarsh Trading and Holding sold 2.3 lakh shares (0.73%) at Rs 1,509 apiece.

Sapphire Foods: Fennel Private sold 6.29 lakh share (0.99%) at Rs 1,200 apiece.

Zensar Technologies: Promoter group Stel Holdings bought 63,000 shares Feb 1.

• Price Band Revised From 10% To 5%: Adani Total Gas

• Ex-Date Interim Dividend: Coforge, Embassy Office Parks REIT, IIFL Securities, KEI Industries, Motilal Oswal Financial Services,NTPC, Steelcast, Sundaram Clayton, Torrent Pharmaceuticals, Vedanta, Zensar Technologies,Vaibhav Global

• Ex-Date Amalgamation: Equitas Holdings

• Record Date Amalgamation: Equitas Holdings

• Record Date Interim Dividend: Coforge, Embassy Office Parks REIT, IIFL Securities, KEI Industries, Motilal Oswal Financial Services, Steelcast, Sundaram Clayton, Torrent Pharmaceuticals, Vedanta, Zensar Technologies, Vaibhav Global

• Move Into Short-Term ASM Framework: Adani Enterprises, Adani Ports and SEZ, Ambuja Cements, PC Jeweller.

• Nifty February futures ended at 17,667.70, a discount of 9.55 points.

• Nifty February futures rose 2.71% and 5,648 shares in Open Interest.

• Nifty Bank February futures ended at 40,978, a premium of 250.70 points.

• Nifty Bank February futures rose 4.42% and 4,206 shares in Open Interest.

• Securities added to the ban period: Ambuja Cements, Adani Ports

• Securities removed from the ban period: Nil

• TCS - Defensive Giant To Outshine Peers In 2023: Motilal Oswal

• ITC - Budget 2023, Positive For Legal Cigarette Players; Market Share Gains Likely: Axis Securities

• Radico Khaitan - FY24 To Be Transformational Year: Dolat Capital

• Budget 2023 - Aims At Inclusive Growth: Prabhudas Lilladher

• Budget 2023 & Metals, Mining - Infra, Capex Focus A Positive For Metals Sector: ICICI Securities

• Budget 2023 & Defence - Capital Outlay Allocation Comes As A Dampener: ICICI Securities

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.