The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1042 GMT - India's benchmark Sensex closed 0.4% higher at 59932.24, supported by gains in bank shares. "Following the announcement of Union Budget and the Fed slowing down the rate of interest hike to 25 bps, volatility is still expected in the markets," ICICI analysts say in a note. IndusInd Bank advanced 3.2%, Kotak Mahindra Bank added 0.9% and Axis Bank rose 1.1%. Housing Development Finance Corp. ended 1.8% lower, despite posting a higher 3Q net profit. Dabur India declined 1.4% after its 3Q net profit fell on year, partly due to higher total expenses. Developments related to the Adani group remain closely watched, as total market value losses for the seven Adani companies reached more than $100 billion since Jan. 24. (justina.lee@wsj.com)

1037 GMT - Rolls-Royce is primed for recovery as debt is paid down, efficiencies realized and with much-improved returns on capital, Shore Capital analysts Jamie Murray and Robin Speakman say in a note. The engineering company has the potential for value creation in the New Markets division--which covers opportunities in aero-engine electrification and small modular reactors--leveraging the recovery momentum back to growth, the analysts say. Returns at its Civil Aerospace division will improve after completion of its continuing restructuring program and once flying times return to normal levels following China's reopening, they say. The net effect of this is seen stimulating high-margin aftermarket service revenue and improving profitability, the analysts say. "We view Rolls-Royce as a compelling recovery play with robust end-markets," they say. (anthony.orunagoriainoff@dowjones.com)

1023 GMT - Electrolux proposed no dividend for 2022 and provided a 2023 outlook with more negatives than expected, and Citi analysts now see downside risk to consensus 2023 margin expectations, they say in a note. The "external factors" guidance is for a headwind in 2023, despite a headline decline in certain raw material costs, Citi notes. "We think this will be seen as a new negative, especially as compared to commentary from appliance peers in the last few days." While the company explains the lack of dividend as a consequence of negative net income for 2022, Citi thinks it raises questions over whether results will get worse before getting better. Shares trade 9.8% lower at SEK132.82. (dominic.chopping@wsj.com)

1024 GMT - While Deutsche Bank's fourth-quarter results missed consensus estimates, figures were in line when making adjustments and stripping out the corporate center, RBC Capital Markets analyst Anke Reingen says in a research note. The German lender's investment bank revenue fell 12% year-on-year and was weaker than expected, the analyst says. Fees at its advisory services tumbled 71%, while at U.S. banks they fell on average 53%, she says. But Deutsche still kept to its targets for 2025, including at least 10% return on tangible equity, which are ahead of consensus, Reingen says. There still remain upsides from higher rates, she adds. Shares fall 1.8% to EUR12.03. (edward.frankl@dowjones.com)

1022 GMT - The global smartphone market is likely to stay sluggish this year, as major suppliers of phone parts like Sony Group outline conservative business plans. Sony Chief Financial Officer Hiroki Totoki, who the company said Thursday will assume the role of president in April, said shrinking demand has become notable even for higher-end smartphones. He also pointed to slowness in major markets like China. Sony, which makes image-sensing chips used in phones such as Apple's iPhone, expects a moderate recovery in smartphones starting in the second half of its fiscal year ending March 2024, according to Totoki. (jie.yang@wsj.com)

0956 GMT - Publicis Groupe's fourth-quarter results, and the performance of its Epsilon and Sapient agencies in particular, show the company's ability to capture structural shifts in the advertising industry, UBS analysts say in a research note. The French advertising company said organic revenue grew 18% at Epsilon and 13% at Sapient in the fourth quarter, helping the group deliver a 9.4% rise in quarterly organic revenue. This suggests Publicis is benefiting from structural changes in the industry such as the shifts toward first-party data management and digital media, UBS analysts say. Shares rise 5.4%. (adria.calatayud@dowjones.com)

0955 GMT - Shell needs to be wary of negative public and political reaction to its announcement of record annual profit, AJ Bell says. While shareholders will inevitably be pleased, "the optics aren't great" and will do nothing to quieten demands for further windfall taxes, Bell says. Legal action that the company is facing over claims that oil spills have caused pollution in Nigeria also cast questions over its environmental, social and governance credentials, Bell says. "Shell needs to be careful--already oil and gas prices have retreated from their 2022 highs and if it pursues profit today at the expense of making the business sustainable for the future, the markets may judge it harshly," Bell's investment director Russ Mould writes. (philip.waller@wsj.com)

0949 GMT - OMV's underlying results for the fourth quarter are disappointing, with core earnings missing expectations, Jefferies says in a research note. Guidance for 2023 capex and production fell short of consensus, but this shouldn't have been completely unexpected, Jefferies says. The Austrian oil-and-gas company plans to raise its ordinary dividend by 20%, which Jefferies expects to be well recieved. Shares trade 5.4% lower at EUR42.99. (sarah.sloat@wsj.com)

0942 GMT - Most of Cranswick's third-quarter revenue growth was likely boosted by higher pricing with a slightly positive volume increase, says Peel Hunt in a note, after the British food producer said its revenue growth accelerated in line with first-half momentum. "Trading is likely to be more subdued in 4Q as consumers tighten their belts and pork prices in China have reduced," say analysts Charles Hall and Andrew Ford. Peel Hunt has a hold rating on the stock with a 3,800 pence price target. Shares rise 4.8% at 3,292 pence, its highest price in over six months. (elena.vardon@wsj.com)

0932 GMT - BT Group's nine-month revenue and Ebitda are in line with consensus expectation, while free cash flow was light versus consensus due to higher level of capex and working capital absorption, Citi's Georgios Ierodiaconou and Siyi He say in a research note. The U.K. telecommunications company's fourth quarter is set to benefit from lower capex at Openreach and receivables in Enterprise, they add. Openreach's broadband line losses were a significant improvement that should at least partly alleviate concerns after the steep decline in the first half, they note. Citi has a buy rating on the stock with a target price of 160 pence.(kyle.morris@dowjones.com)

0926 GMT - Airbus's resolution of a dispute with Qatar Airways should remove doubt about the European plane maker's A350 model, Charles J Armitage at Citi says in a note. Airbus said Wednesday that it would go ahead with the delivery of some 23 remaining A350 twin-aisle plans previously ordered by the Middle Eastern flag carrier; the order had been cancelled amid a dispute over alleged safety issues relating to chipping paint on the model. With the disagreement now resolved, Airbus's near-term profitability should get a boost from the delivery of the aircraft, but more importantly, the safety concern around the A350 is alleviated, Armitage says. Shares in Airbus gain 0.8% to EUR117.(joshua.kirby@wsj.com; @joshualeokirby)

0926 GMT - Singapore's benchmark FTSE Straits Times Index closed 0.4% lower at 3363.68, as investors continued to digest comments from U.S. Fed Chair Jerome Powell on interest rates. "Those hawkish reaffirmations from the Fed were met with rising doubts from the markets, which saw a dovish takeaway from Jerome Powell's acknowledgement of progress in the 'disinflationary process' and that he is not worried about loosening financial conditions," IG market analyst Yeap Jun Rong said in a note. Bank stocks declined, with DBS falling 2.0%, UOB slipping 0.3% and OCBC down 0.8%. Among other laggards, agribusiness group Wilmar International was off 0.2% and City Developments declined 0.6%. (justina.lee@wsj.com)

(END) Dow Jones Newswires

February 02, 2023 05:42 ET (10:42 GMT)

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