Market View 10th May 2023

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

Asian equities look poised for a cautious open on Wednesday ahead of a critical inflation report from the U.S. Futures for benchmarks in Japan and Australia suggested small declines for those markets while contracts for Hong Kong indicated a slight gain. Futures for the S&P 500 and Nasdaq 100 were fractionally higher in Asia after the indexes fell 0.5% and 0.7%, respectively, on Tuesday. U.S. gauges have been stuck in narrow trading ranges as investors weigh the potential end of the Federal Reserve’s interest rate hikes against the possibility of an economic slowdown Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.51%. Crude prices traded around $77-mark, while Bitcoin declined below 28,000-level. At 6:00 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.02% at 18,307.5. Domestic benchmarks—BSE Sensex and NSE Nifty 50—closed mostly unchanged, with decline in PSU banks and realty stocks countering the advance in IT, auto and pharma stocks. The Indian rupee closed lower against the U.S. dollar amid a stronger greenback and tepid domestic equities.

Economic Calendar:

• USD : CPI (MoM) (Apr) on 10^th May, 2023
• USD : PPI (MoM) (Apr) on 11^th May, 2023
• INR : CPI (YoY) (Apr) on 12^th May, 2023
• INR : Industrial Production (YoY) (Mar) on 12^th May, 2023

Q4 Results Today:Larsen & Toubro, Dr Reddy’s Laboratories, Gujarat Gas, Godrej Consumer Products, Prism Johnson, Procter & Gamble Hygiene & Health Care, Relaxo Footwears, Sanofi India, Sagar Cements, Cera Sanitaryware, BASF India, Bosch, Escorts Kubota, Gokul Agro Resources, HG Infra Engineering, JBM Auto, Kabra Extrusiontechnik, MAS Financial Services, Novartis India, Orchid Pharma, Pricol,

Brokerage Radar:

UBS ON INDUSIND BANK: Upgrade to Buy, TP raised to Rs 1450; Believe INDUS’s high PPOP to assets ratio (3.4% in FY24E/FY25E vs 2.7-3.2% for private peers ) could translate to higher ROA (2%/1.9%), driven by declining credit costs; Trading at 1.4x FY24E P/BV (below its past 5-yr avg.)

MACQUARIE ON LUPIN: O-P, TP Rs 790; 4Q Rev/EBITDA/PAT beat est. by 6%/29%/83%; EBITDA margin of 13.6% beat est. by 250bps; Rev beat primarily driven by higher-than-expected rev for API biz & other operating income; PAT beat driven by EBITDA beat & lower-than-expected tax expenses

MS ON APOLLO TYRE: MS (1st cut); OW, TP Rs 400; Beat in standalone, in line in Europe; Consol. rev, EBITDA & PAT growth of 12%,59% & 257% YoY, respectively. Consolidated EBITDA 3% ahead of est. Standalone EBITDA of Rs7bn (+85% YoY and +27% QoQ) was 14% ahead of est.

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

IRB Infrastructure Developers: The company reported 18.76% year-on-year increase in toll collection during April 2023 at Rs 388.42 crore. Toll collection by wholly owned subsidiaries increased 16.5% year-on-year to Rs 194.52 crore, while that by joint ventures entities under IRB Infrastructure Trust grew 4.3% to Rs 193.90 crore.

Raymond: The company will raise Rs 2,200 crore by issuing non-convertible debentures to Raymond Consumer Care for repayment of external debt.

Greaves Cotton: The company completed first stage of acquisition of 60% shareholding in Excel Controlinkage.

Nazara Technologies: The company will invest Rs 15 crore in subsidiary Next Wave Multimedia by acquiring 19.5% stake from promoters.

Hindustan Petroleum Corporation/Life Insurance Corporation of India: The insurance major increased its shareholding in the state-run refiner to 5.013% from 4.901%.

SRF: company has increased its capex to set up an aluminium foil manufacturing facility to Rs 530 crore from Rs 425 crore earlier. In March, the company incorporated wholly owned subsidiary for setting up the said manufacturing facility.

Source: Moneycontrol, Bloomberg Quint, Investing

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