Market View 23rd June 2023

View on market: Volatility Prevails, Market is searching for better value

Asian markets were set for a mixed open after U.S. equities struggled for direction throughout most of the day before closing higher. The S&P 500 snapped a three-day slide Thursday after swinging between gains and losses earlier in the session, while the Nasdaq Golden Dragon China index of U.S.-listed shares ended marginally in the red. The Bank of England cautioned it may have to hike again after delivering a half-point boost, while a key section of the German yield curve inverted the most since 1992 on economic concern. Meanwhile, Brent crude fell to $74 a barrel and West Texas Intermediate fell below $70-mark. The yield on the 10-year U.S. bond was trading at 3.78%, whereas Bitcoin slipped below 30,000-level. At 5:42 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.27% at 18,882.

Economic Calendar:

• USD : Services PMI (Jun) on 23^rd June, 2023
• USD : New Home Sales (May) on 27^th June, 2023
• INR : FX Reserves, USD on 23^rd June, 2023
• INR : Foreign Debt (USD) (Q1) on 30^th June, 2023

Brokerage Radar:

MS ON SBI CARDS: OW, TP Rs 1155; Industry spending growth up 24% YoY in May (vs 26% in April); SBIC rose slower YoY (at 12%) & market share slipped sequentially; could have been due to lesser focus on corp. spending; However, continued to outpace industry in cards in force

CLSA ON IDFC FIRST BK: Downgrade to U-P from Buy, TP raised to Rs 85 from Rs 80; has been 1 of best performers on a YTD basis; while like bank’s compelling growth story, think val, at 1.8x 1-yr forward PB, do not fully reflect unfinished journey on ROE improvement

JEFFERIES ON SHREERAM FIN: Upgrade to buy, TP raised to Rs 2130; Upgrade as stakes sale by PIEL& TPG removes a key equity supply overhang; Favourable used-CV outlook & growth in SCUF’s loan products by leveraging SHTF’s wider distribution should drive a 15% loan CAGR in FY23-26E

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Eros International: SEBI passed an ex parte, interim order against the company for alleged misstatements in books of accounts. SEBI directed BSE to appoint a forensic auditor to examine books of 3 companies listed on the exchange. ThinkinkPicturez, Mediaone Global Entertainment, Spicy Entertainment prima facie acted as conduits in the alleged misrepresentation/diversion of funds by Eros. Moreover, Sunil Arjan Lulla, managing director, Eros International barred from holding KMP, directorial position in any listed company. The company said it is seeking legal advice on the matter.

HDFC: The company divested 9.65% stake in Ruralshores via buyback route. It also soled entire stake in HDFC Property Ventures and HDFC Venture Capital to Vividh Distributors for a consideration of Rs 1.2 crore and Rs 30 lakh respectively. The lender also bought 3.86% stake with 5.13% voting rights in interior designs company Bonito Designs and 914 CCPS of Cognilements (Relata) entitling a stake of 4% to 7%.

Bharat Petroleum Corporation: The company to consider fund raising various modalities on June 28 for capital infusion including rights issue.

PNB Housing and Finance: T Adhikari has been appointed as Chief Operating Officer of the company.

Vedanta: The company refuted media reported stating the sale of the Sterlite Copper Plant, Thoothukudi. It said that the reports are “wrong, baseless and incorrect.”

Coforge: The company acquired the final tranche of shares of the balance 20 percent stake in Coforge Business Process Solutions for Rs 336.94 crore, taking its total stake to 80%.

HBL Power Systems: The board is going to consider approving a proposal of slump sale of two products lines, Power Electronics and Integrated Power Supplies to Moebius Power Electronics on June 28.

Source: Moneycontrol, Bloomberg Quint, Investing 

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