Stock Market Live Updates: GIFT Nifty Hints At Negative Start; Swiggy, Dabur, ITC, Bajaj Auto Shares In Focus

India's hospitality sector is firmly in the midst of a structural upcycle, with strong and broad-based demand colliding with supply constraints, according to a recent report by HSBC Global Investment Research. The brokerage argues that the current cycle is fundamentally stronger than previous ones, underpinned by rising room rates, record occupancy levels and a sustained recovery in both domestic and foreign travel.

HSBC notes that average room rates (ARRs) have risen consistently for four years, while occupancy has reached all-time highs. Importantly, demand growth is no longer limited to large metro cities. Smaller cities are increasingly contributing to incremental room nights, widening the base of the recovery and making it more resilient.

 Jefferies on Dixon

• Maintain Hold; Cut target price to Rs 11350 from Rs 13070
• Operational Miss; Sales Growth Sharply Decelerates
• PAT was boosted by Rs 130 cr other income: MTM gain from an investment
• Regulatory approvals for JVs with Vivo and HKC (PN3) are awaited
• There is a sharp rise in DRAM contract prices for smartphones and PCs, which can impact mobile order book

Macquarie on Dixon

• Maintain Outperform; Cut target price to Rs 15000 from Rs 18000
• Q3: Resetting estimates assuming VIVO delay
• Q3 results missed as increased memory prices caused lower mobile volumes, while the consumer durables segment was weak
• Expect FY27E to mark the trough, with revenue growth and margin expansion in FY28
• See higher-margin non-mobile and component sales scale in FY28
• Believe valuation already takes headwinds into account 

Jefferies on Swiggy

• Maintain Buy; Cut target price to Rs 440 from Rs 500
• Value or Value Trap?
• Food delivery was strong, but the rise in quick commerce loss disappointed
• Q/C subsidies failed to deliver, and mgmt accepts OPD is a 'vanity metric' and not worth chasing
• This pivot comes even as competition stays intense, implying a risk to market share
• Still like that mgmt has shown pragmatism, despite the cash pile post-QIP
• Unsure about the Q/C EBITDA breakeven timeline
• Sole reason for our Buy is the valuation discount vs our conviction pick, Eternal 

 Morgan Stanley on Swiggy

• Maintain Equal-weight; Cut target price to Rs 375 from Rs 414
• Focus on Quality and Unit Economics in Quick Commerce to Cloud Growth Outlook
• Steady execution in food delivery on growth and margins
• Making tough choice on trading off growth while maintaining guidance on CM break even
• Limited visibility on when competitive environment would ease keeps re-rating under check 

Citi on Swiggy

• Maintain Buy; Cut target price to Rs 450 from Rs 485
• Going to march to its own tune now
• Quick Commerce contribution margin breakeven guidance reaffirmed
• Underlying quick commerce economics are improving

Macquarie on Dixon

• Maintain Outperform; Cut target price to Rs 15000 from Rs 18000
• Q3: Resetting estimates assuming VIVO delay
• Q3 results missed as increased memory prices caused lower mobile volumes, while the consumer durables segment was weak
• Expect FY27E to mark the trough, with revenue growth and margin expansion in FY28
• See higher-margin non-mobile and component sales scale in FY28
• Believe valuation already takes headwinds into account 

Jefferies on Dixon

• Maintain Hold; Cut target price to Rs 11350 from Rs 13070
• Operational Miss; Sales Growth Sharply Decelerates
• PAT was boosted by Rs 130 cr other income: MTM gain from an investment
• Regulatory approvals for JVs with Vivo and HKC (PN3) are awaited
• There is a sharp rise in DRAM contract prices for smartphones and PCs, which can impact mobile order book

Kotak Securities on Tata Motors CV

• Maintain Add; Hike target price to Rs 485 from Rs 450
• Healthy near-term demand momentum
• Domestic CV's profitability was in line with expectations
• CV business momentum to sustain in the near term

JPMorgan on Tata Motors CV

• Maintain Overweight; Cut target price to Rs 510 from Rs 475
• Slight miss in 3Q, but volume momentum drives earnings upgrade
• Management expects growth momentum to persist; taking price hikes to offset commodity pressures
• Expect a modest India CV recovery after three years of no growth

Nomura on Tata Motors CV

• Maintain Buy; Cut target price to Rs 547 from Rs 552
• CV cycle turning up as fleet utilizations rise
• Q3 ASPs miss on adverse mix; price hikes should cover costs
• Strong growth outlook

Silver prices on Thursday breached the Rs 4 lakhs per kilogram-mark in the national capital, while gold hovered near fresh record high of Rs 1.83 lakhs per 10 grams, tracking a sharp rally in global markets amid rising geopolitical and economic uncertainty.

Silver extended gains for the fourth consecutive day surging 5.06%, to an all-time high, reports news agency PTI.

South Korea's Kospi index rose 1% to 5,274.33 on Friday, This comes as South Korea’s industry minister met with the US commerce chief in Washington but failed to make progress in quelling fresh trade friction, with the two sides agreeing to resume talks Friday as Seoul seeks to head off President Donald Trump’s recent threat to raise tariffs.

Gold fell the most since October, reversing earlier gains that took the precious metal to a fresh record above $5,500 an ounce, as the US dollar strengthened.

A rebound in the greenback helped drive down bullion by as much as 5.7% in the biggest intraday drop since Oct. 21, before paring some of the losses. 

Source: Bloomberg

• Nifty Feb futures is up 0.35%  to 25,539 at a premium of 121 points.
• Nifty Options 3rd Feb Expiry: Maximum Call open interest at 26,000 and Maximum Put open interest at 23,300. 

The US Dollar index is up 0.32% at 95.340.
Euro was down 0.33% at 1.1929.
Pound was down 0.24% at 1.3773.
Yen was up 0.31% at 153.57.

Asian equities were poised for a mixed opening after a volatile session in the US, where uncertainty over whether massive investments in artificial intelligence will deliver meaningful returns weighed on sentiment. Futures in Australia advanced, supported by gains in key metals such as iron ore and copper. Japanese equity contracts were little changed, while those tied to Hong Kong slipped in early Friday trading. US equity futures slipped at the open after Apple Inc. warned that rising component costs may pressure its profit margins, adding to broader concerns about whether major tech firms' substantial spending on artificial intelligence will yield adequate returns. 

Good morning readers.

The GIFT Nifty was trading near 25,500 early on Friday. The futures contract based on the benchmark Nifty 50 fell 0.20% at 25,465 as of 6:48 a.m. indicating a negative start for the Indian markets.

In the previous session on Thursday, the benchmark extended its gaining streak to the third day after it opened in the red. The Nifty ended 76.15 points or 0.30% higher at 25,418.90 and Sensex ended 221.69 points or 0.27% higher at 82,566.37.