Market View 21st June 2022

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

Stocks rose in Asia on Tuesday with US equity futures pointing higher. Japan, Australia and Hong Kong equities gained, hinting at improvement in sentiment. US markets were shut for holiday on Monday. As of 7:10 am, the Singapore-traded SGX Nifty–an early barometer of India’s benchmark Nifty 50–was 0.13% higher at 15,382.50 points. Nymex crude hovered around $110 per barrel. Elsewhere, bitcoin held above $20,000 after a turbulent period of cryptocurrencies.

Economic Calendar:

• INR: RBI MPC Minutes on 22^nd June 2022.
• INR: Fiscal Deficit Data 30^th June 2022.
• USD: Existing Home sale 21^st June, 2022.
• USD: Chicago Fed National Activity 21^st June, 2022.

Brokerage Radar:

CLSA ON FINANCIALS: Continue to prefer strong liability franchises & do not expect a tougher macro environment to change credit cost trajectory yet ICICI & SBI remain top picks Like MMFS among NBFCs & see value in life insurers (SBI Life top pick).

JEFFERIES ON BANDHAN BANK: Buy, TP Rs 430 Floods in Assam will have near-term impact on biz & collections Assam forms c.6% of total loans & 9% of EEB loans; 500bps higher credit costs in Assam would impact FY23 PBT by 5% Could impact Bk’s MFI biz for next 3-4 weeks.

CITI ON TATA STEEL: Buy, TP cut to Rs 1085 from Rs 1800 Take a relook at earnings estimates for TSL & cut EBITDA by 32% /34% on lower realizations following weakness in China export prices However think now maybe time to bottom fish, TSL’s P/B val at 0.8x isn’t too far from 1SD below mean(0.7x) Reckon stock may not hit 2020 trough of 0.5x given expectations of a China stimulus & a significantly strong b/s (perhaps strongest in last 15 yrs).

MOTILAL OSWAL ON TATA STEEL: Neutral, TP Rs 965 Will not benefit from inexpensive ore, Russian coal India EBITDA to contract significantly in 1HFY23 Cut FY23E consol EBITDA by 22%, driven by 34% reduction in standalone EBITDA, partially offset by 4% increase in TSE EBITDA

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

ONGC: The term of CMD Alka Mittal has been extended by two months with effect from July 1 till August 31.

Bharat Forge: The company will transfer its stake in joint venture Refu Drive GmbH to subsidiary Kalyani Powertrain to consolidate its electric vehicle business.

Reliance Industries: SEBI has imposed a total penatly of Rs 30 lakh on RIL and two persons for not making a prompt clarification to the stock exchanges in a matter relating to the Jio-Facebook deal.

KEC International: The company has won new orders worth Rs 1,092 crore across its various businesses.

National Fertilizers: The company has appointed Hira Nand as its director (finance) with effect from June 17.

Engineers India: The company has appointed Sanjay Jindal as the chief financial officer in place of CMD Vartika Shukla with immediate effect for a period of five years.

Eureka Forbes: MD & CEO Marzin R. Shroff has resigned.

Escorts Kubota: Ajay Mandhar, chief executive officer of Escorts Kubota’s agri-machinery business, has resigned. President Shenu Agarwal will take additional charge until a replacement is found.

Suven Lifesciences: The firm will consider a rights issue on June 24.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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