Market View 11th November 2022

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

Shares rallied in Japan, South Korea and Australia, while stock futures for Hong Kong pointed to large gain after the S&P 500 climbed 5.5% — the best first-day reaction to a CPI report in decades. US and European futures also rose in Asia. Meanwhile, West Texas Intermediate crude benchmark rose 1% to $86.67 per barrel, while gold rose 2.2%. Bitcoin managed to rise 9.9% to trade around $17,300-level as the FTX meltdown keeps pressure on the cryptocurrency market. Indian benchmarks indices, Sensex and Nifty, closed lower for the second day dragged by declines in realty, consumer durables, and metal stocks. Rupee faltered against the U.S. dollar for the first time in four days after registering three consecutive 50-paisa gains this week. At 7 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 1.7% to 18,403.

Economic Calendar:

• USD : PPI (MoM) (Oct) on 15th November, 2022
• USD : Core Retail Sales (MoM) (Oct) on 16th November, 2022
• INR : CPI (YoY) (Oct) on 11th November, 2022
• INR : Industrial Production (YoY) (Sep) on 11th November, 2022

Q2FY23 Result Today: Mahindra & Mahindra, Hindalco Industries, Life Insurance Corporation of India, ABB India, Adani Power, Alkem Laboratories, Alembic Pharmaceuticals, Ashoka Buildcon, Astral, Astrazeneca Pharma India, Bharat Dynamics, BHEL, Delhivery, Dhani Services, Easy Trip Planners, Emami, Exide Industries, Fortis Healthcare, GSK Pharma, Glenmark Pharma, Hindustan Aeronautics, Ipca Laboratories, Lemon Tree Hotels, Pfizer, Sun TV Network, Thermax, Ujjivan Financial Services, Zee Entertainment Enterprises, and Zydus Lifesciences

Brokerage Radar:

MS ON ZOMATO: OW, TP Rs 80; Key highlights: a) GOV growth of 3% qoq missed MSe 4.2% despite better AOVs; b) contribution margins in food delivery improved to 4.5% (vs 2.8% in 1Q) & beat MSe 3.3%; c) Quick Commerce showed good progress on reduction in losses QoQ

JEFFERIES ON ASHOK LEYLAND: Buy, TP Rs 180; 2Q EBITDA rose 68% QoQ led by higher-than expected gross margins; 2Q vol grew 14% QoQ while ASPs were flat QoQ; Gross margin expanded 130bp QoQ while EBITDA margin was up 210bp QoQ to 6.5%, boosted by operating leverage benefit

CLSA ON MUTHOOT FIN: U-p, TP Rs 1200; Miss on NII partially cushioned by seasonally lower Opex; Expect AUM to grow 12%; NIM expansion to 12% over FY24-25CL; Branch expansion underway & MFI sub sees healthy growth; Cut EPS est. for FY23-25CL by 7%-8%

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Mahindra & Mahindra: Peugeot Motorcycles will cease to be a subsidiary of Mahindra Two Wheelers Europe Holdings, a wholly owned subsidiary of the company.

Adani Green Energy: Appointed Phuntsok Wangyal as chief financial officer with effect from Nov. 11, after the resignation of Kaushal Shah from the office.

Adani Power: The company will sell its entire stake in its wholly owned subsidiary Support Properties to AdaniConnex for Rs 1,556 crore.

Sunteck Realty: Approved amalgamation of subsidiary Starlight Systems (I) into the company.

SJVN: The company secured 83 MW floating solar project in Madhya Pradesh from REWA Ultra Mega Solar Ltd. at Rs 3.70 per unit on build-own-and-operate basis.

Trent: The company will raise Rs 600 crore through commercial papers for its working capital requirements.

Reliance Industries: Reliance Jio, the telecom arm of the company, launched 5G beta services in Bengaluru and Hyderabad.

Bank of Baroda: The bank increased interest rates across MCLR tenors in the range of 10-15 basis points, effective Nov. 12.

Alkem Laboratories: The company received Form 483 with three observations from U.S. FDA for its manufacturing facility located in St. Louis after a pre-approval inspection Oct. 31 to Nov. 9.

Source: Moneycontrol, Bloomberg Quint, Investing

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