Market View 10th March 2023

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

Asian markets traded lower following the sharpest decline in the U.S. equities in two weeks after a rout in bank shares picked up steam. The S&P 500 on Thursday fell to the lowest since Jan. 19, with financial companies in the index plunging. Banks came under fire after the collapse of Silvergate Capital Corp. amid growing scrutiny in Washington. Silicon Valley-based lender SVB Financial Group lost 60% after taking steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets. Meanwhile, the yield on 10-year Treasuries advanced to 3.88%. Crude prices were trading around $81-mark, while Bitcoin was trading around 20,000-level. At 6:27 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.51% at 17,529. Both Indian benchmark indices—Sensex and Nifty—declined almost 1%, registering their worst fall in more than two weeks amid fears of faster rate hikes. The Indian rupee closed higher against the U.S. dollar as investors waited for U.S. jobs data to forecast the direction the Federal Reserve will take with its rate hikes, and its subsequent impact on the greenback.

Economic Calendar:

• USD : Unemployment Rate (Feb) on 10th March, 2023
• USD : Nonfarm Payrolls (Feb) on 10^th March, 2023
• INR : Industrial Production (YoY) (Jan) on 10th March, 2023
• INR : Deposit Growth on 10^th March, 2023

Brokerage Radar:

MOSL ON ITC: Buy, TP Rs 450; Earnings visibility continues to drive outperformance

Cigarette business outlook remains healthy; Absence of material tax increases in budget is a relief; ‘Other FMCG’ growth momentum remains strong; better times ahead

MS ON JSW STEEL: UW, TP Rs 545; Reported Feb-23crude steel production data.  Total standalone crude steel production was 1.73mnt (-8.4% MoM, +9.6% YoY), implying average utilization rate of 90% in Feb’23vs 99% in Jan’23 (was 82% duringFeb’22)

JEFFERIES ON MGL: Hold, TP Rs 900; Volume potential from the UEPL acquisition appears steep given low industrialization & low population density of acquired GAs in light of its execution in Raigad; Expect acquisition to be a drag on earnings over FY24-25E

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: Reliance Consumer Products, the consumer goods arm of Reliance Retail Ventures, will relaunch the iconic beverage brand Campa with a fresh look. Also, Reliance Polyester, formerly known as Reliance Petroleum Retail, completed the acquisition of polyester business of Shubhalakshmi Polyesters and Shubhlaxmi Polytex.

Bank of Baroda: The board of the bank approved divestment of 49% stake in its wholly owned cards subsidiary BOB Financial Solutions.

Jubilant FoodWorks: Sameer Batra joined the company as president and chief business officer–Domino’s India with effect from March 9, 2023. He will be responsible for steering Domino’s Pizza India to its next phase of growth.

Ujjivan Small Finance Bank: The bank has received observation letters from BSE and NSE for the merger of Ujjivan Financial Services, enabling it to proceed with filing the scheme of amalgamation with the NCLT.

REC: The board has approved raising Rs 1.2 lakh crore from various debt instruments for the financial year 2023-24.

Wipro: The company has been selected by Menzies Aviation, the world’s largest aviation services company, to transform its air cargo management services.

Welspun Corp.: Welspun DI Pipes, a wholly owned subsidiary of the company, received the ‘Kitemark’ certificate from British Standards Institution, U.K. for size range of 100 to 1,000 DN against EN 545 and ISO 2531 standards. These are the international standards for ductile iron pipes used for transportation of potable water.

NBCC (India): Received work order to construct new campus for Indian Institute of Foreign Trade at Kakinada for Rs 229.81 crore.

PNC Infratech: The company has been selected as the lowest bidder for two hybrid annuity highway projects for a cumulative bid project cost of Rs 2,004.43 crore.

Source: Moneycontrol, Bloomberg Quint, Investing

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