February 8, 2023

“Das” How We Do It!

Tale of the Tape

Good evening, everyone. We’re halfway through the week. 😇

Markets climbed +1% as strong earnings and a bullish economic outlook by the RBI boosted sentiment. Midcaps (+0.9%) and Smallcaps (+0.8%) also participated in the rally. Nearly two stocks rose for every loser. ✌️

It was a sea of green across the board. Not a single sector ended lower. Metals (+3.8%) snapped their 5-day losing streak. IT (+1.5%) and Pharma (+1.4%) also witnessed healthy gains. 💪

The three-day Monetary Policy Meeting (MPC) concluded today. The Reserve Bank of India (RBI) governor Shaktikanta Das increased interest rates by 0.25%. Find out all the key highlights below. 📈

Shares of tech companies broke out in trade. Zomato, Paytm, and Policybazaar rallied between 5%-8% each. Check out their charts below. 🚀

Adani Group stocks continued to rock. Adani Enterprises (+20%) was the top gainer on Nifty. The stock has +2x since Friday. Adani Ports rallied by +8%. Adani Transmission and Adani Power were locked in a 5% upper circuit. 🔥

Cement stocks were in focus on reports that the GOI may consider a reduction in GST. 👍

TCS won a large $700 million deal from UK-based Phoenix Group Holdings Plc. 💸

Symphony will buy back 10 lakh shares at a price of Rs 2,000 apiece; +90% from today’s closing price! 💯

Intellect Design Arena (+5%) partnered with Amazon Web Services. 🌐

Here are the closing prints:

Nifty	17,871	+0.9%
Sensex	60,663	+0.6%
Bank Nifty	41,537	+0.1%

RBI MPC Key Highlights

The Monetary Policy Committee (MPC) increased interest rates for the sixth time in a row!!! The MPC hiked interest rates by 0.25% to 6.5%; which is the highest since August 2018. 🤯

The rate hike was on expected lines as the RBI aims to control inflation while supporting economic growth. PS – December Consumer Price Index (CPI) eased to 5.7%, which is below the RBI’s max limit of 6%. But, rising US interest rates, weak rupee and strained global supply chain systems continue to pose a risk. 📈

Besides interest rates, we got tons of information on the economy. Starting with the good news, the RBI increased their FY23 GDP growth estimate to 7% (vs 6.8% earlier). Inflation is expected to further cool off to 5.4% in the upcoming financial year. But, in FY24 economic growth may slow down to 6.4%. Also, the lack of clarity on future rate hikes left most economists divided. 🤼

Bottomline: Investors are optimistic that RBI’s efforts to control inflation would not hamper economic growth in a big way. Markets gave the policy meeting a big thumbs up as Nifty and Sensex rallied +1% to close near the day’s high. ✅

Chartbusters

Shares of new-age tech companies are back in the good books of investors. Paytm started the optimism after turning operationally profitable in Q3. Zomato co-founder Deepinder Goyal echoed the same sentiment in a recent tweet. Experts feel this could be a major turning point for these companies. 💯

JP Morgan in a recent report said:

2023 could be a year of redemption with a shift from online to offline and growth driven by profitable monetization of a smaller core group of 50-100 million customers, rather than market expansion.

Improving cash flows, peak interest rates and relatively cheap valuations are key positives. Zomato, Paytm and Policybazaar rallied between 5%-8%. Check out their charts below: 📈

Stocktwits Spotlight

Bajaj Finance closed up for a fourth straight day. Here’s a bullish chart setup by Harsh Dixit aka TrendonomicsHD. Follow him for more amazing chart analysis and add $BAJFINANCE.NSE to your watchlist to track its performance. Here’s the link: https://bit.ly/3I6ulZX.

Disclaimer: All ideas shared by TrendonomicsHD are for educational purposes. TrendonomicsHD is neither SEBI registered nor an investment advisor.

Earnings Highlights

Bharti Airtel: Revenue: Rs 35,804 cr; (+20% YoY) | Net Profit: Rs 1,588 cr; (+92% YoY)
Hero MotoCorp: Revenue: Rs 8,031 cr; (+2% YoY) | Net Profit: Rs 711 cr; (+6% YoY)
Shree Cement: Revenue: Rs 4,069 cr; (+15% YoY) | Net Profit: Rs 277 cr; (-44% YoY)
Adani Wilmar: Revenue: Rs 15,438 cr; (+7% YoY) | Net Profit: Rs 246 cr; (+17% YoY)
Samvardhana Motherson: Revenue: Rs 20,226 cr; (+26% YoY) | Net Profit: Rs 454 cr; (+85% YoY)
Escorts Kubota: Revenue: Rs 2,291 cr; (+15% YoY) | Net Profit: Rs 180 cr; (-7% YoY)