Adani Transmission reported 73% year-on-year growth

Opening Bell:

SGX Nifty is up by 69 points in the early morning trade, indicating a positive opening for Indian stock market.

Stocks in the Asia-Pacific were set to trade mixed on Tuesday, after Wall Street extended losses as investors digested last week’s economic data that showed there’s more room for the Federal Reserve to hike rates further. The Japanese Nikkei is up by 0.15 percent. Hong Kong’s Hang Seng is up by 1.14 percent and South Korea’s Kospi is up by 2.07 percent in early morning deals.

US stocks ended lower on Monday as investors shifted gears after considering the possibility that the Federal Reserve may take longer to start cutting interest rates. Investors are keeping a close eye on speeches by Fed officials this week, including Chair Jerome Powell on Tuesday, for any change in the central bank’s rhetoric after data last week showed services activity was strong in January as well as strong job growth. The S&P 500 lost 0.62 percent and the Nasdaq Composite dropped 1 percent respectively.

Stocks News:

?Tata Steel has reported a surprise consolidated net loss of Rs 2,223.84 crore for the quarter ended December 2022, against a profit of Rs 9,572.67 crore in the same quarter last year. The steelmaker in an exchange filing said its revenue from operations fell 6.08 percent year on year (YoY) to Rs 57,083.56 crore from Rs 60,783.11 crore.

?UltraTech Cement has announced commissioning of 1.5 mpta brownfield cement grinding unit at Jharsuguda in Odisha, taking the total cement capacity in Odisha to 4.1mtpa. With this commissioning, company’s total cement manufacturing capacity in India now stands at 122.85 mtpa.

?Adani Group on Monday announced that promoters will pre-pay $1,114 million for the release of pledged shares of its firms ahead of the maturity in September 2024 while saying the step is being done “in light of the recent market volatility”. The statement assumes significance in view of the allegations of fraud and stock manipulation by a short-seller against the Adani Group, which led to a steep fall in the share prices of group firms.

?Adani Transmission reported a 73% year-on-year increase in consolidated profit at Rs 478 crore for the December quarter. The company clocked a 15.8% increase in revenue at Rs 3,037 crore during the period under review.

?Foreign institutional investors (FII) sold shares worth Rs 1,218.14 crore, while domestic institutional investors (DII) purchased shares worth Rs 1,203.09 crore on February 6, as per provisional data available on the NSE.

Domestic and International Events

• Oil prices edged higher in choppy trading on Monday as markets weighed a return in demand from China against supply concerns and fears of slower growth in major economies curbing consumption.
• The growth momentum of Indian IT services industry is likely to slow down in the near to midterm as macroeconomic headwinds trigger lower discretionary IT spends, ICRA said on Monday. Ratings agency ICRA sees lower hiring by the IT service companies in the near term given that excess capacities were added in FY2022 and expects moderation in demand compared to previous fiscals amid macroeconomic headwinds.
• Indian IT services companies have witnessed a moderation in growth in the last two quarters in constant currency terms owing to the base effect and evolving macroeconomic headwinds in key markets of the US and Europe.
• The dollar jumped to a four-week high against the euro on Monday, as last week’s blockbuster US jobs report raised the likelihood of the US Federal Reserve keeping on with its inflation-fighting interest rate hikes for longer.

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