Market View 13th January 2023

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

Asian stocks opened with tailwinds from easing inflationary pressure in the U.S. and expectations that central banks can slow the pace of interest rate hikes. U.S. stocks moved little while Treasury yields dropped as inflation figures moderated. At 6:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.40% to 17,990. Indian benchmark indices closed marginally lower after remaining under pressure through Thursday as market participants turned cautious ahead of India’s retail inflation numbers. Rupee appreciated against the U.S. dollar after a weak opening tracking the overall weakness in the currency. Overseas investors in Indian equities were net sellers for the 15th day in a row on Thursday. Foreign portfolio investors offloaded stocks worth Rs 1,662.63 crore, while the domestic institutional investors mopped up stocks worth Rs 2,127.65 crore.

Economic Calendar:

• USD : Retail Sales (MoM) (Dec) on 18th January, 2023
• USD : PPI (MoM) (Dec) on 18th January, 2023
• INR : Deposit Growth on 13th January, 2023
• INR : Bank Loan Growth on 13th January, 2023

Brokerage Radar:

CLSA ON HCL TECH: O-P, TP Rs 1200; 3Q well ahead of est. on all counts; Deal wins strong; Management optimistic of sustaining momentum in 4QFY23, which should give a strong base for FY24; Modest val (18x FY24CL EPS) & 4.3% dividend yield attractive

MS ON L&T TECH: UW. TP Rs 3300; Announces acquisition of SWC from L&T; A bold move – one of largest M&A deals by LTTS since its inception; This could be a good way to add capabilities, but transitioning out of SWC’s current domestic biz to a global clientele profile will not be easy

CLSA ON INFOSYS: Buy, TP Rs 1800; 3Q rev growth ahead of est. helped by higher-than expected pass-through rev (but that, in turn, affected margins; Large deal wins healthy; Minor upgrade to FY23 rev growth guidance points to a stable near-term demand outlook

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

HCL Technologies: The company has been selected by Mattel to drive transformation across the latter’s global technology landscape cutting across applications, infrastructure and information security domains.

PVR/Inox Leisure: The Mumbai bench of NCLT approved the merger of the two companies.

Rail Vikas Nigam: The company letter of approval for provision of automatic block signaling in Taduku-Renigunta section and replacement of EI/RRI at Taduku, Pudi and Sri Venkata Perumal Raju Puram stations of Chennai Division in Southern Railway for Rs 38.97 crore.

Asian Paints: The company incorporated a subsidiary, Asian Paints (Polymers), with a share capital of Rs 100 crore to operate a manufacturing facility for vinyl acetate ethylene emulsion and vinyl acetate monomer in India.

Rama Steel Tubes: The company signed an MoU with Uttar Pradesh government to set up a steel processing unit with a proposed investment of Rs 600 crore.

Cigniti Technologies: The company Partners with LambdaTest to offer smart test orchestration platform that can help clients run end-to-end automation tests at faster speeds.

Shyam Metalics: The company received consent to operate from Odisha government for additional pellet capacity of 1.2 MT at its plant in Sambalpur, Odisha.

Larsen & Toubro/L&T Technology Services: L&T Technology Services, a subsidiary of Larsen & Toubro, will acquire smart world and communication business of its parent company for Rs 800 crore.

Linde: The company started construction of its new air separation plant in Ludhiana, Punjab, which is expected to start operations towards the end of 2023. V-Guard Industries: The company completed the acquisition of 100% shareholding of Sunflame Enterprises for an aggregate consideration of Rs 680.33 crore.

Source: Moneycontrol, Bloomberg Quint, Investing

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