Market View 19th May 2023

View on market: Stay Cautious, be with quality business:

Stocks in Asia are set for a mixed open, with optimism that the US will be able to avert a first-ever default being tempered by evidence this week that China’s economic activity is losing steam. Future contracts for Japanese shares advanced 1%, setting them on a course for their best week since October, after the S&P 500 hit a nine-month high on signals that American lawmakers are making progress on debt-ceiling talks. Australia’s benchmark is set to eke out a narrow gain, while Hong Kong’s is poised to drop about 1% after Alibaba Group Holding Ltd.’s sales disappointed, adding to signs that China’s post-Covid recovery is faltering. Bond yields rose in Australia and New Zealand, after Treasury yields gained on speculation the Federal Reserve will need to keep interest rates higher for onger as inflation remains elevated. A Bloomberg gauge of the dollar advanced the most in two months.  At 6:27 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.23% at 18,220. Meanwhile, the U.S. stocks were trading higher even as the deadlock over raising the debt ceiling continued. The S&P 500 was up 0.3%, whereas the Nasdaq 100 rose 1% by 2:22 p.m. in New York. The yield on 10-year Treasuries advanced seven basis points to 3.64%. Crude price dipped 1.6%, while gold price fell 1.2%. Meanwhile, Bitcoin fell 2.8% to trade around $26,600 level. Meanwhile, the U.S. stocks were trading higher even as the deadlock over raising the debt ceiling continued. The S&P 500 was up 0.3%, whereas the Nasdaq 100 rose 1% by 2:22 p.m. in New York. The yield on 10-year Treasuries advanced seven basis points to 3.64%. Crude price dipped 1.6%, while gold price fell 1.2%. Meanwhile, Bitcoin fell 2.8% to trade around $26,600 level.

Economic Calendar:

• USD : Building Permits on 23rd May, 2023
• USD : Services PMI (May) on 23^rd May, 2023
• INR : Bank Loan Growth on 19^th May, 2023
• INR : FX Reserves, USD on 19^th May, 2023

Q4 Results Today: JSW Steel, NTPC, Punjab National Bank, Power Grid Corporation of India, Glenmark Pharmaceuticals, Muthoot Finance, Bandhan Bank, Alkem Laboratories, Zomato, Delhivery, JK Lakshmi Cement, Crompton Greaves Consumer Electricals, IRB Infrastructure Developers, Abbott India, Narayana Hrudayalaya, EPL, Route Mobile, VA Tech Wabag, Star Cement, Sun TV Network, Elgi Equipments, Cochin Shipyard, Vinati Organics, DB Corp Saregama India

Brokerage Radar:

JPM ON SBI: OW, TP Rs 720; Net income Rs 167bn, 83% y/y, ROE 20.6%) was 11% ahead driven by lower provisions; Operating profit in line; NIMs improved 10bps q/q; Only –ve was elevated capex

INVESTEC ON ITC: Buy, TP Rs 450; Q4 in line; FMCG & hotels posted better than expected; ITC can still deliver double-digit earnings growth going forward

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Pfizer: The company initiated voluntary recall of all batches of Magnex, Magnex Forte, Zosyn and Magnamycin after an out-of-specification was observed at the manufacturing facility of its contract manufacturer for the recalled products, Astral SteriTech. The recall will have an impact on the company’s revenue and profitability.

Nazara Technologies: Nodwin Gaming, a subsidiary of the company, signed definitive and binding agreements to raise $28 million (Rs 232 crore) from existing investors—Nazara, Krafton and JetSynthesys—and new ones.

Vedant Fashions: Promoter Ravi Modi Family Trust will exercise the oversubscription option in the ongoing offer for sale after the non-retail investors placed bids for 223.80% of the portion reserved for them on the first day. The promoter will offload 2.88% additional stake under the greenshoe option.

Rail Vikas Nigam: The company has formed a joint venture, Indore MMLP Pvt., with National Highways Logistics Management and Madhya Pradesh Industrial Development Corporation to build multi modal logistics parks under the Bharatmala Project. RVNL is receiving Rs 77.62 crore for rail connectivity, NHLML is receiving Rs 186.97 crore towards MMLP land, road connectivity and other works, and MPIDC is receiving Rs 88.68 crore for MMLP land.

Wipro: The company entered a five-year business partnership with ServiceNow to invest in and introduce new offerings to market to drive business transformation for clients.

Source: Moneycontrol, Bloomberg Quint, Investing

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