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Can HDFC bank power the Nifty higher?

Good Morning Everyone, As discussed in the weekly meet, we ll look forward to the effect of the HDFC bank results on the market today. Nifty is expected to open slightly negative, but I am expecting some positivity from HDFC bank.

Global Markets:

Stocks closed lower though recovered major losses on Wall Street Friday. S&P 500 rose nearly 0.1 percent. The Dow Jones fell 0.6 percent, and the tech-heavy Nasdaq rose 0.6 percent.

US central bankers, in the last flurry of public comments before their upcoming January policy meeting, are making it crystal clear: they'll likely start raising interest rates as early as March to rein in high inflation likely to be made worse by the current surge of COVID-19.

It is "sensible" for the central bank to begin raising interest rates this year, following dramatic improvements in the labor market and inflation that is well above the Fed's 2 percent target, New York Federal Reserve Bank President John Williams said on Friday.

Asian shares were trading mixed Monday as investors awaited China’s trade data. MSCI's broadest index of Asia-Pacific shares ex-Japan declined 0.4 percent. Shares in Japan surged 0.8 percent. Chinese blue chips surged over 0.2 percent. Hong Kong’s HSI fell over 0.5 percent. South Korea’s Kospi declined over 1 percent. Elsewhere in Australia, stocks jumped nearly 0.1 percent.

The Chinese economy seems to have grown at the slowest pace in 1-1/2 years in the fourth quarter, dragged by weaker demand due to a property downturn, curbs on debt, and strict COVID-19 measures, raising the heat on policymakers to roll out more easing steps.

Data on Monday is expected to show the gross domestic product (GDP) grew 3.6 percent in October-December from a year earlier - the weakest pace since the second quarter of 2020 and slowing from 4.9 percent in the third quarter, a Reuters poll showed.

Indian Market:

Leading private sector lender HDFC Bank on January 15 clocked a standalone net profit of Rs 10,342 crore for the December 2021 quarter, up 18 percent year-on-year backed by a decline in bad loan provisions. The profit in the corresponding quarter last fiscal was at Rs 8,758.29 crore.

Net interest income, the difference between interest earned and interest expended, climbed 13 percent to Rs 18,444 crore in Q3FY22, with a net interest margin of 4.1 percent for the quarter, and healthy credit growth of 16.4 percent.

The rupee slumped 25 paise to close at 74.15 Friday, snapping the fifth-day winning run. Meanwhile, the dollar index slipped 0.01 percent to 94.78.

India's wholesale price index (WPI) inflation has eased to 13.56 percent in December from 14.23 percent in November, government data showed.

Fitch Ratings said the rising COVID cases may delay recovery in MSME and microfinance lending, and add to asset quality risks of non-banking financial institutions.

India’s exports in December 2021 surged 38.91 percent on an annual basis to USD 37.81 billion, even as the trade deficit widened to USD 21.68 billion during the month.

Results today

UltraTech Cement, Angel One, HFCL, Sonata Software, Tata Steel Long Products, Tatva Chintan Pharma Chem, Advik Capital, Arfin India, Artson Engineering, Bhansali Engineering Polymers, Fineotex Chemical, Goodluck India, Hathway Cable & Datacom, KIC Metaliks, KP Energy, KPI Global Infrastructure, Maharashtra Scooters, Moschip Technologies, Poddar Pigments, Tiger Logistics (India), and Vikas EcoTech.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,598.20 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 371.41 crore in the Indian market on January 14

Stock Specific News:

HCL Technologies | The company's Q3 profit and revenue exceeded market expectations. Net profit came in at Rs 3,442 crore while revenue came in at Rs 22,331 crore.

Oil India | The company's wholly-owned subsidiary Oil India (US) Inc divested its entire stake in Niobrara Shale Asset, US. Consideration received from such a sale is $ 25 million.

Aster DM Healthcare | The company's subsidiary Malabar Institute of Medical Sciences has signed a lease agreement for the greenfield hospital project in Kasaragod district of Kerala. The initial investment of about Rs 140 crore is estimated for the new facility.

PVR | PVR has opened a 4-screen property in Narsipatnam Andhra Pradesh.

Hero Motocorp | The company has approved an investment of up to Rs 420 crore in one or more tranches, in Ather Energy. Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8 percent.

JK Paper | The paper company has started commercial production from the new packaging board plant in Gujarat.

Hinduja Global Solutions | The company has acquired the digital business of NXTDIGITAL, a related party, through the issuance of shares and has decided to allocate Rs 1,000 crore for the proposed buyback.

Dalmia Bharat | The company has commenced commercial production at its Murli Plant in Chandrapur, Maharashtra.

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