Foreign brokerage maintains ‘buy’ rating on Eicher Motors

Indian Markets:

• Nifty 50 Movement: Indices managed to close a tad above the 18,000 level after hitting the days low of 17,853.80 in morning trade.  
• Indian markets opened lower on weak global cues but recovered early losses and stayed flat for the most part of the session but final-hour buying in the auto, realty and IT stocks helped the indices close near the day’s high.
• Investor sentiment took a hit after stronger-than-expected U.S. inflation readings ramped up fears of more hawkish moves from the Federal Reserve.
• Metals and banks shares advances for the second straight session.

Global Markets:

• The Dow Jones index futures were down 81 points, indicating a negative opening in the US market today.
• European shares rose across the board while most Asian stocks tumbled on Wednesday after the release of U.S. inflation data that came in hotter-than-expected. It further raised expectations that the U.S. Federal Reserve will continue to raise interest rates to curb inflation.
• Meanwhile, U.K. CPI data showed inflation fell for the third month in a row January to hit 10.1%, according to the Office for National Statistics, below Reuters economists expectations of 10.3%.
• Wall Street stocks ended mixed on Tuesday after US consumer price data for January offered little to change expectations about the Federal Reserves path forward on interest rate hikes.
• Inflation in the US continued to surge in January, with the latest data showing higher-than-expected increases both year-on-year and month-on-month. The US Bureau of Labor Statistics reported on Friday that the Consumer Price Index (CPI) rose by 6.4% from January 2022.

Stocks in Spotlight:

• Moody’s Investors Service has affirmed Baa1 ratings for information technology stalwarts, Tata Consultancy Services (TCS) and Infosys. The reason the ratings of both companies are constrained to just two points above that of India (Baa3) is their exposure to the changing tax regulations in the country. Nonetheless, diverse operations, a history of strong operating results and profitability, remarkable free cash flow generating capabilities and minimal dependence on the Indian banking system helped Infosys and TCS remain at Baa1 rating.
• After posting strong Q2 results in Q3FY23, foreign brokerage Jefferies has maintained a ‘Buy’ rating on the stock with a target price of Rs 4,250 per share. It noted that the company’s Q3 operating profit rose to hit a new high. The stock closed 4.4 percent higher.
• TVS Motors climbed 2.4 percent. As per media sources, global investment firms Goldman Sachs, Carlyle, and Abu Dhabi Investment Authority (ADIA) are considering an investment of $300-350 million in TVS Electric Mobility

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