Titan share price rally despite decline in net profits

Indian Markets:

• Nifty 50 Movement: Indices ended above 17,850 mark.
• Indian benchmark indices were positively influenced by credit rating agencies reposing faith in Adani group companies, overnight rally in US stock markets and low level buying in the market.
• Rally in banking stocks also supported the market.
• The S&P Global India services Purchasing Managers Index (PMI) fell to 57.2 in January as compared to 58.5 in December. It has been above the key level of 50 that separates growth from contraction for an eighteenth straight month.

Global Markets:

• The Dow Jones futures were down 69 points, indicating a negative opening in the US stock market today.
• Shares in Europe and Asia were mixed on Friday as investors digested monetary policy outcome across major central banks.
• In Europe, the Bank of England raised interest rates by half a percentage point Thursday as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession. The banks monetary policy committee voted 7-2 to push its key rate to 4%.
• Chinas service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers index (PMI). The reading rose to 52.9 in January, from the business activity index of 48 seen in December.
• The au Jibun Bank Japan services purchasing managers index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

Stocks in Spotlight:

• Ambuja Cements and ACC, acquired by the Adani Group in 2022, have showcased a much more resilient performance amid the ongoing rout in Adani Group stocks. Shares of Ambuja rose nearly 12 percent, in two straight sessions while most other Adani group stocks continued to crumble under pressure. The rebound in the stock came after the 16 percent plunge witnessed on February 1.
• Titan stock price surged over 6 percent as CLSA has maintained ‘buy’ call on the stock, with a target of Rs 3,000 a share. Morgan Stanley has kept ‘overweight’ rating on the stock, with a target of Rs 3,030, saying Q3 was broadly in-line with estimates.
• Divi’s Lab declined 12 percent after a significant deterioration in quarterly earnings. The active pharmaceutical ingredients manufacturer recorded a consolidated profit of Rs 306.8 crore in the December quarter of FY23, falling 66 percent on-year and 38 percent sequentially, impacted by lower topline as well as disappointing operating performance.

News from the IPO world?

• With an eye on IPO, Unacademy to offer stock option to employees instead of cash appraisals
• Enviro Infra Engineers get SEBI nod for raising money through IPO
• FirstMeridian Business Services files fresh draft papers for IPO; cuts issue size to Rs. 740 crore

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