Market View 12th June 2023

View on market: Volatility Prevails, Market is searching for better value

Asian stocks were set for a cautious open on early Monday as traders braced for a week that brings interest rate decisions from the U.S. and Europe to China and Japan. Equity futures for Japan suggested a small gain, while contracts for Hong Kong pointed to a minor loss. Australian markets were closed for a holiday. Futures for U.S. benchmarks rose slightly in Asia after the S&P 500 inched further into bull-market territory on Friday. Technology shares have continued to climb amid bets the Federal Reserve is nearing the end of its hiking cycle. The European Central Bank is projected to lift its benchmark rate on Thursday. Oil held losses amid persistent concerns around the demand outlook as Goldman Sachs Group Inc. cut its price forecast again. Meanwhile, Brent futures traded below $75 a barrel and West Texas Intermediate was below $70. The yield on the 10-year U.S. bond was trading at 3.74%, whereas Bitcoin was below 26,000-level. At 05:33 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.28% at 18,662.

Economic Calendar:

• USD : CPI (MoM) (May) on 13^th June, 2023
• USD : PPI (MoM) (May) on 14^th June, 2023
• INR : CPI (YoY) (May) on 12^th June, 2023
• INR : Manufacturing Output (MoM) (Apr) on 12^th June, 2023

Brokerage Radar:

MACQUARIE ON TVS MOTORS:

O-P, TP Rs 1418; Credit subsidiary fund raise at marginal premium; On a premoney basis, values TVS CS at Rs96/sh (after factoring 25% holding co disc.) vs current value at Rs85/sh; PI’s investment could cap future TVS CS’ capital requirement, which is +ve

NOMURA ON KEC INT.:

Buy, TP Rs. 598; Focus on improving EBITDA margin & cash flows; part of pending Afghanistan receivables to flow in 1QFY24F; ordering outlook robust; KECI to witness a gradual trajectory of EBITDA margin improvement in FY24E

JEFFERIES ON SPECIALITY CHEMICAL:

New project investments announced reached $91bn in FY23; Gross block/rev/EBITDA rose 2.7x/2.8x/3x over FY17-23. Prefer NFIL on 35% EPS CAGR over FY23-25E with upside optionality; Await pullback in SRF to potentially turn more constructive

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

News Update:

Cochin Shipyard:

Company won a contract by Indian Navy for MR/Mid Life Upgrade of an Indian naval ship at an estimated contract value of Rs 300 crore. The estimated duration of the contract is around 24 months.

Gati, Allcargo Logistics:

Allcargo completed acquisition of 30% stake in Gati-Kintetsu Express from KWE-Kintetsu World Express and KWE Kintetsu Express. Allcargo Logistics now holds 30% stake and Gati holds the existing 70% stake in Gati-Kintetsu.

TVS Motor Company:

TVS Credit Services has successfully raised equity capital of ₹480 crore from Premji Invest. Premji Invest will buy additional equity shares for Rs 257 crore. After completion of primary and secondary investments Premji Invest will hold a 9.7% equity stake in TVS Credit.

Info Edge:

Company has agreed to sell its entire shareholding, held through unit Startup Investments (Holding) Ltd., in its associate company Happily Unmarried Marketing to VLCC Health Care for approximately Rs 61 crore through a mix of cash and share swap. 

Karnataka Bank:

Srikrishnan Hari Hara Sarma has formally assumed the responsibilities of managing director and the chief executive officer of the company.

Karur Vysya Bank: Lender revised base rate to 11.20% from 10.75% and benchmark prime lending rate to 16.20% from 15.75% with effect from Jun. 16.

Easy Trip Planners: EaseMyTrip.com has become the official travel partner of the World Padel League 2023. The partnership will provide travel solutions to players, officials and fans attending the game. 

GHCL: BSE and NSE have granted approval for the listing and admission to dealings of equity shares of company’s unit GHCL Textiles with effect from Jun. 12.

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