Market View 11th January 2023

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

Asian shares advanced on Wednesday following Wall Street gains on Tuesday as traders bet that the upcoming US consumer price index will show further softening. U.S. stocks were waiting for a cue from Fed Chair Jerome Powell, who refrained from divulging clues on the policy outlook. Stocks moved decidedly higher in afternoon New York trading, with the S&P 500 finishing above its key 3,900 mark. At 6:04 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.07% to 17,998.5. Domestic indices closed 1% lower as losses in telecom, financials, banking, and technology stocks weighed the gauges down. Overseas investors in Indian equities were net sellers for the 13th day in a row on Tuesday. Foreign portfolio investors offloaded stocks worth Rs 2,109.34 crore, while domestic institutional investors mopped up stocks worth Rs 1,806.62 crore. Rupee extended its rally against the U.S. dollar to close below the 82-mark for the first time since Dec. 6, 2022.

Economic Calendar:

• USD : Initial Jobless Claims on 12th January, 2023
• USD : CPI (MoM) (Dec) on 12th January, 2023
• INR : Manufacturing Output (MoM) (Nov) on 12th January, 2023
• INR : CPI (YoY) (Dec) on 12th January, 2023
• INR : Industrial Production (YoY) (Nov) on 12th January, 2023

Brokerage Radar:

JEFFERIES ON AXIS-MAX DEAL: Axis BK – Buy, TP Rs 1110; Will buy 7% stake in Max Life to take total stake to 20%. But, as this deal will be on fair value/ DCF, it would imply trxn. value of Rs11-21bn, an extra payoff of Rs7-17bn by Axis; Deal is +ve for Max Life (offers banca. visibility) & MFS (scope for dividend can help promoters cut debt); Axis may recover value with higher commission that may impact margins a bit

MS ON AUTOS: China’s reopening could be a positive for sentiment toward JLR/Tata Motors & SAMIL – but given in-line view on China’s auto industry, see no earnings upside for now; High interest rate environment is a risk to global PV demand & SAMIL

CLSA ON L&T: Buy, TP Rs 2570; Stars are aligned for a solid year; Improving orders and robust E&C execution; Margin expansion as materials costs fall; Balance sheet: asset monetisation, turn losing subs & worst over for LHRL & LTFH

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Ports and Special Economic Zone: The Adani-Gadot combine has completed the acquisition of Haifa port in, the finance ministry of Israel said in a statement.

Tata Motors: The company’s subsidiary Tata Passenger Electric Mobility completed the acquisition of Ford India’s Sanand-based manufacturing plant.

Bank of Baroda: The bank has hiked lending rates across tenors in the range of 20-35 basis points, with effect from Jan. 12.

Shree Renuka Sugars: The company’s board will meet on Jan. 27 to consider and approve change in terms of its non‐convertible debentures.

Uttam Sugar Mills: The company’s board approved increasing daily capacity of its ethanol distillery in Barkatpur by 100 kilolitres to 250 kilolitres with a capex of Rs 56 crore. The company will also send Rs 40 crore to increase its cane crushing capacity enhancement to 26,200 tonnes of cane per day.

Agarwal Industrial Corporation: Investor Ashish Kacholia increased his stake in the company to 3.82%.

PC Jeweller: In Q3FY23, company recorded turnover of Rs.829.10 cr. as against Rs.600.18 cr. a year back, indicating a growth of more than 38%.

Source: Moneycontrol, Bloomberg Quint, Investing

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