Market View 31st May 2023

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

Asian markets are poised to slide Wednesday after momentum in U.S. equities faded and Congress considered the debt accord that’s needed to head off a catastrophic default. Futures for Japan and Australia suggested small declines while contracts for Hong Kong fell more than 1%. Purchasing manager index data for China will be watched for any signs of change in the economy’s wobbly recovery, which has weighed on its share markets and currency. The S&P 500 closed little changed Tuesday, while remaining slightly above 4,200. Energy companies dragged on the index as oil sank below $70 a barrel. The Nasdaq 100 added 0.4% to extend this year’s surge to 31%, while ending off its high for the day as investors assessed the artificial-intelligence hype that’s boosted the index. Nvidia Corp. hovered near $1 trillion in value after announcing several AI-related products. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.69%. Crude declined 4% below $76-mark, while Bitcoin was below 28,000-level. At 05:35 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down 0.29% at 18,675.5. Domestic benchmark indices closed in green for the fourth straight day, supported by advances in Kotak Mahindra Bank Ltd., Infosys Ltd., and Axis Bank Ltd. The Indian rupee closed lower against the U.S. dollar for the second day in a row as it faced a stronger greenback.

Economic Calendar:

• USD : JOLTs Job Openings (Apr) on 31^st May, 2023
• USD : Initial Jobless Claims on 31^st May, 2023
• INR : Federal Fiscal Deficit (Mar) on 31^st May, 2023
• INR : GDP Quarterly (YoY) (Q4) on 31^st May, 2023

Brokerage Radar:

MS ON RIL: Monthly margin tracker points to an oil to chemicals margin recovery despite volatility in fuel margins; Chemicals to drive EPS upgrade cycle; RIL’s energy vertical is key to keeping net debt/EBITDA below one; It usually invests $17 billion annually in chemicals, telecoms, new energy and retail

NOMURA ON ASHOK LEYLAND: Maintain Buy, TP Rs.184; Q4 EBITDA margin beats consensus, Operating leverage and higher gross margins boost EBITDA margin, See further scope of improvement in realization and CV cycle to stay positive

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

HDFC Asset Management Company: Keki Mistry has expressed the desire not to be re-appointed as non-executive director of the company, and will retire after the upcoming AGM on June 26.

Coal India: The company will increase prices of high-grade coal by 8%, applicable across subsidiaries, leading to revenue rising by additional Rs 2,703 crore during the current fiscal.

Mahindra & Mahindra: The company incorporated subsidiary Mahindra Last Mile Mobility to manage its three-wheeler and small commercial vehicle business. The auto major also incorporated a step-down subsidiary Icarus Hybren to run the renewable energy production and distribution business.

Axis Bank: The board appointed former RBI deputy governor NS Vishwanathan as additional director for a period of four years, up to May 29, 2027.

Aurobindo Pharma: The company received tentative new drug application approval from U.S. FDA for HIV drugs Dolutegravir, Entricitabine and Tenofovir Alafenamide tablets.

Sun Pharmaceuticals Industries: The company received approval from China’s National Medical Products Administration for its new drug application of tildrakizumab injection used to treat moderate-to-severe plaque psoriasis.

Lupin: The company entered a strategic collaboration with Enzene Biosciences to launch Cetuximab in India, used in treatment of head and neck cancer.

HDFC Life Insurance Company: Abrdn (Mauritius Holdings) 2006 Limited is likely to exit the life insurance company by selling entire 1.66% equity via block deals, reports CNBC-TV18 quoting sources. The stake sale is likely to take place in the price range of Rs 563.20-585.15 per share.

Source: Moneycontrol, Bloomberg Quint, Investing 

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