Market View 12th December 2022

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

Stocks declined in Asia at the start of a pivotal week for markets, with interest rate decisions due from the Federal Reserve, the European Central Bank and a host of their peers. The dollar edged higher and made gains against the yen, the euro and the offshore yuan in early trading. Shares fell in Japan, South Korea and Australia and equity futures indicated a likely drop to come for Hong Kong. The Indian benchmark indices fell in trade after a volatile day and snapped their two-week gaining streak on Friday. Brent crude continued to trade at sub-$80 levels at around $77 per barrel, while Nymex crude fell to $72.07 per barrel. At 6:40 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.17% to 18,559. ADRs indicated a gap down start for IT major such as Infosys Ltd. and Wipro Ltd.

Economic Calendar:

• USD : CPI (MoM) (Nov) on 13th December, 2022
• USD : Fed Interest Rate Decision on 15th December, 2022
• INR : CPI (YoY) (Nov) on 12th December, 2022
• INR : WPI Inflation (YoY) (Nov) on 14th December, 2022

Brokerage Radar:

JEFFERIES ON INDUSIND BK: Buy, TP raised to Rs 1600; Ready for next leg of re-rating; Expect loan growth to improve to +20% from FY24 & ROA towards 2% as new loan segments, initiatives on funding & credit quality checks pay off; Approval for extension to CEO key catalyst in Feb

MS ON BHARAT FORGE: OW, TP Rs 1035; Key focus on new business avenues such as defense, aerospace electric vehicles & aluminum light-weighting; Under its 2030 strategy, co expects to strengthen its core portfolio while expanding into new biz

NOUMURA ON HONEYWELL AUTO: Buy, TP Raised to Rs 50642; Preferred pick on India digitalization; Execution & margins to pick up as services/exports recover & semiconductor lead times reduce; Expect turnaround in 2HFY23F continuing into FY24F

Trading @55x, FY24F EPS

International Markets:

U.S & Europe

Asian markets

 

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Kalpataru Power Transmission: The company raised Rs 99 crore via allotment of non-convertible debentures on a private placement basis.

PSP Projects: The company received a letter of intent from Nila Spaces for a project worth Rs 121.51 crore to construct high-rise residential towers.

Emami: The company increased its shareholding in subsidiary Brillare Science from 77.53% to 80.59%.

Bank of Baroda: The bank hike MCLR rates in the range of 25-30 basis points across tenors, with effect from Dec. 12.

IDFC: The scheme of amalgamation for the merger of wholly owned subsidiary companies IDFC Alternatives, IDFC Trustee Co., IDFC Projects with IDFC became operative from Dec. 9. Bharti Airtel: After receipt of notice for conversion of FCCBs of principle value of $8.6 mn from certain holders of FCCBs, board members have approved allotment of 11.88 lakh shares at conversion price of Rs 521 per share to such FCCBs holders.

Himatsingka Seide: Board will meet on December 15 to consider fund raising up to Rs 108 crore. They will also consider an issue of NCDs up to Rs 500 crore, to identified investors.

NTPC: Commences commercial operations of first part capacity of 162.27 MW out of 230 MW Ettayapuram Solar PV Project.

Jaypee Power: Meeting of board to apprise the board of the recommendations of the audit committee to consider the proposal of divestment of Jaypee Nigrie Cement Grinding Unit.

Zydus Lifesciences: Receives two final approvals from the USFDA for Silodosin capsules and Pregabalin capsules The drugs will be manufactured at the group’s formulation manufacturing facility at Moraiya, Ahmedabad, India. Silodosin capsules had annual sales of $14 million in the United States according to IQVIA data. Pregabalin capsules had annual sales of $242 million in the United States according to IQVIA data.

Source: Moneycontrol, Bloomberg Quint, Investing

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