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

Stocks fell and the US dollar held near three-week high on Friday, amid concerns of high inflation and slowing economic growth. Equities declined in Japan, Australia and South Korea. US futures were volatile after incurred losses during market hours. The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, fell more than 1.4% to 16,239.50 points as of 6:50 am. In commodities, oil prices declined. Bitcoin was trading below $30,000.

Economic Calendar:

  • INR: Manufacturing Output on 13th June 2022.
  • INR: Industrial Production on 13th June 2022.
  • USD: OPEC Monthly Report 14th June, 2022.
  • USD: US Interest Rate 15th June, 2022.

Brokerage Radar:

JEFFERIES MODEL PORTFOLIO: changes Investment in HDFC in Asia ex-Japan long-only & India long-only equity portfolio will be removed & replaced with HDFC Bk Investment in ICICI Lombard in India long-only portfolio will be reduced by 1ppt & added to HDFC Bk.

CITI ON ADANI PORTS: Buy, TP Rs 981 Co reiterated FY23E vol guidance of 350-360mnt & underlined April/May vol are inline with guidance Management also emphasized on being net FCF +ve, maintaining comfortable leverage ratio & investment grade rating & 20-25% dividend payout ratio

CLSA ON NBFC: 4Q mixed qtr On positive side, asset quality continued to improve 1 negative surprise this quarter was higher than-expected opex for vehicle financiers & some others Top pick remains MMFS Maintain SELL on Baja Fin U-P on Muthoot Finance.

JEFFERIES ON KEI INDUSTRIES: Buy, TP Rs 1440 Strong cash flow generation as working capital improves, 25% EPS CAGR in FY22-25E, ROE improvement to 20%+ remain the upside triggers. Net debt free B/S with capex funding through internal accruals is an additional +ve.

MORGAN STANLEY ON KOTAK BANK: EW, TP Rs 1965 Announced a)increase in term deposit rates of 10-25bps–peak 1-yr deposit rate now 55bps higher than SBI vs almost equal a yr back b)higher savings deposit rates by 50bps for balances above Rs5mn Remain comfortable with 15bps margin compression in F23.

MORGAN STANLEY ON AXIS BANK: OW, TP Rs 910 Asset quality is robust, b/s & revenue granularity have improved, tech investments have picked up, & growth is accelerating Keys to watch: retail deposits growth & Citi integration (if approved) Val attractive at 1.35xF23/ 1.2xF24 bk.

MORGAN STANLEY ON BAJAJ AUTO: EW, TP Rs 4182 Board to Consider Buyback Co had cash & cash equivalents of $750mn as at March 2022 & capex requirements remain low (F22capex was US$75mn) FCF yield based on current price stands at 5%

International Markets:

U.S & Europe:

Particulars       9th June    Chg Chg(%)
Nasdaq 11,754.23 -332.04     -2.75
Dow 32272.79 -638.11     -1.94
FTSE 7,476.21 -116.79     -1.54
CAC 6,358.46 -90.17      -1.4
DAX 14,198.80 -247.19     -1.71
Dow Fut.* 32313.00       28.70      0.09

Asian markets:

Particulars    10th June    Chg. Chg(%)
SGX Nifty 16,240.50 -231 -1.4
Nikkei 27,848.79 -397.74 -1.41
Straits Times 3,181.67 -27.95 -0.87
Hang Seng 21,732.86 -136.19 -0.62
Shanghai 3,243.66 4.71 0.15

ADR Watch:

Particulars     9th June Chg. Chg.(%)
Dr Reddy 55.84 0.57 1.03
HDFC Bank 58 -0.68 -1.16
ICICI Bank 18.45 -0.26 -1.39
Infosys 18.88 -0.28 -1.46
Tata Motor 27.15 -0.74 -2.65
Wipro 5.89 -0.08 -1.34

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 77.77 0.05
Brent 122.39 -0.56
Gold 1848.30 -0.24
Silver 21.663 -0.71

FIIs & DII:

Particulars        9th June                                  8th June
FIIs -1512.64                        -2484.25                    
DIIs 1624.90 1904.33

News Update:

Bajaj Auto: To consider buyback of shares on June 14.

IndusInd Bank: Pradeep Udhas joins board as independent director.

Omaxe: The company has partnered with Jio-BP to set up electric car charging stations in Delhi NCR, Jaipur and various cities in Punjab.

Kotak Mahindra Bank: The private sector lender has raised savings as well as fixed deposit rates across various tenors up to 4%.

HDFC Ltd: India’s largest mortgage lender has raised its retail prime lending rate on home loans by 50 basis points.

Asian Granito India: The company has appointed Mehul Shah as new chief financial officer, effective June 10.

Karur Vyasa Bank: The lender has raised its repo-linked external benchmark rate to 7.95% from 7.45%.

Dr Reddy’s: US-based Olema Pharma has entered into a global licence agreement with Dr. Reddy’s subsidiary Aurigene Discovery to discover and develop a novel cancer drug.

HFCL: The company has received purchase orders worth Rs 73.39 crore, including an order of Rs 51.09 crore from a domestic private telecom operator.

Indian Overseas Bank: The bank has raised its repo-linked lending rate to 7.75%, effective June 10.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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