Sensex Today Trades Marginally Higher; HDFC Bank Up 1% Post Q3 Results

Asian share markets started on a cautious note today, as investors waited nervously to see if the Bank of Japan (BOJ) will defend its super-sized stimulus policy at a pivotal meeting this week.

Meanwhile, a holiday in US markets made for thin trading.

The Nikkei is trading down by 1.3% while the Hang Seng was up by 0.7%. The Shanghai Composite is trading higher by 1.4%.

US stocks ended higher on Friday, with the S&P 500 registering 0.4% gains while the Nasdaq added 0.7% as bank shares rebounded. The Dow Jones ended higher by 0.3%.

Here's a table showing the performance of US stocks on Friday:

Stock/Index LTP Change ($) Change (%) Day High Day Low 52-Week High 52-Week Low
Alphabet 92.8 0.89 0.97% 92.98 90.93 152.1 83.45
Apple 134.76 1.35 1.01% 134.92 131.66 179.61 124.17
Meta 136.98 0.27 0.20% 137.39 134.84 332.73 88.09
Tesla 122.4 -1.16 -0.94% 122.63 115.6 384.29 101.81
Netflix 332.82 2.69 0.81% 336.65 328.89 538.37 162.71
Amazon 98.12 2.85 2.99% 98.37 94.12 170.83 81.43
Microsoft 239.23 0.72 0.30% 239.37 234.92 315.95 213.43
Dow Jones 34,302.6 112.6 0.33% 34,342.3 33,915.5 35,996.4 28,660.9
Nasdaq 11,541.5 81.8 0.70% 11,547.9 11,347.6 15,990.4 10,440.6

Source: Equitymaster

Back home, Indian share markets are trading on a positive note, following the trend on SGX Nifty.

At present, the BSE Sensex is trading higher by 60 points. Meanwhile, the NSE Nifty is trading higher by 8 points.

Bajaj Finserv, Bajaj Finance, and HDFC Bank are among the top gainers today.

TCS, JSW Steel, and BPCL are among the top losers today.

Broader markets are trading on a positive note. The BSE Mid Cap index and BSE Small Cap index are trading up by 0.3%.

Sectoral indices are trading mixed with stocks in the finance sector, and IT sector witnessing most of the buying. Stocks in the energy sector, auto sector, and metal sector witness selling.

Shares of L&T Financial Holdings and Edelweiss Financial hit their 52-week high today.

The rupee is trading at Rs 81.3 against the US dollar.

In the commodity markets, gold prices trade higher by Rs 0.3% at Rs 56,505 per 10 grams.

Meanwhile, silver prices are trading lower by 0.8% at Rs 69,950 per 1 kg.

Speaking of stock markets, the Indian stock market has been extremely volatile after scaling a new all-time high, late last year.

However, individual stocks have been resilient. In fact, some stocks look positive on the charts.

HDFC Bank Q3 profit jumps 19%

India's largest private sector bank, on 14 January 2023, reported a 19.9% YoY jump in net profit to Rs 126.9 bn for December 2022 quarter due to a drop in its provisions.

The bank reported a 6% YoY decline in its provisions to Rs 28.1 bn.

The bank's pre-provisioning operating profit (PPOP) stood at Rs 190.2 bn, up 13% YoY despite only a 4% increase in its non-interest income.

The 75% decline in the lender's trading income was offset by a jump in its fee and foreign exchange income.

The bank's net interest income (NII) improved by 25% to Rs 229.8 bn during the quarter, led by robust loan growth.

Its core net interest margin (NIM) was at 4.1% as of 31 December 2022, unchanged year-on-year.

Total advances stood at Rs 15.1 tn as of December 2022, higher by 19.5% YoY, led by broad-based growth across segments like retail, rural and corporate.

The CASA ratio stood at 44% as of December 2022 quarter, against 47.1% a year ago.

The gross non-performing asset (NPA) ratio stood at 1.23% as of 31 December 2022, down 3 bps YoY, while the net NPA ratio was at 0.33%, lower 4 bps YoY.

HDFC Bank was incorporated as a subsidiary of the Housing Development Finance Corporation (HDFC) in 1994. It went public in 1995.

If you had invested Rs 10,000 in HDFC bank's IPO in 1995, your investment would have grown to Rs 15.2 m today.

HDFC Bank has been an investor's favorite stock for a long time.

Dr Reddy's Laboratories acquires rights of Pfizer drug

Dr Reddy's Laboratories on Friday acquired the trademark rights of the breast cancer drug PRIMCYV from Pfizer Products India for use in the Indian market.

PRIMCYV is a targeted therapy containing the active constituent Palbociclib for breast cancer.

Since May last year, Dr Reddy's has been marketing the drug in collaboration with Pfizer Products India Pvt Ltd under the brand name PRIMCYV in India. The drug comes in the form of hard capsules in strengths of 75 mg, 100 mg, and 125 mg.

The in-house product will be retailed in the Indian market at a reduction of 85% from the current price to increase affordability and access to Palbociclib.

The company plans to roll out a unique Patient Assistance Program to support long-term therapy of the patients on PRIMCYV.

Dr Reddy's Lab is a leading India-based pharmaceutical company headquartered and having its registered office in Hyderabad, Telangana, India.

Speaking of pharma stocks, amid the outbreak in China, pharma stocks have started to rise. Select stocks have gained 5-15% in recent sessions.

Keep a watch on the best stocks from the sector as the industry looks in a sweet spot at the moment.

Avenue Supermarts Q3 revenue rises 25.5%

Avenue Supermarts, owner and operator of the D Mart chain of retail stores, reported a 25.5% jump in revenue to Rs 115.7 bn.

It reported a rise in consolidated net profit to Rs 5.9 bn for December 2022 quarter.

Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) for the company in the quarter came up 11.4% at Rs 9.6 bn, as against Rs 8.6 bn in the corresponding quarter of the last year.

The company's EBITDA margin also declined 100 basis points to 8.6% from 9.6% during the same period last year. Margin declined due to higher expenses and rose 26% compared to the previous year.

The company for Q3 added four stores in the October-December quarter, taking the total count to 306.

Avenue Supermarts is an Indian retail corporation that operates a chain of hypermarkets in India. It was founded by Radhakishan Damani in 2002, with its first branch in Powai's Hiranandani gardens.

Dmart is currently in Radhakishan Damani's portfolio, having the most significant exposure.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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