Market View 13th July 2023

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

Asian markets were set to climb Thursday after U.S. inflation slid to a two-year low, easing pressure on global markets from rising interest rates in the world’s biggest economy. Futures for benchmarks in Hong Kong and Australia pointed to strong opening gains while contracts for Japan suggested a smaller move upward, in part reflecting the drag from the recent rebound of the yen. The U.S. consumer price index rose 3% in June from a year ago. The core measure, which economists view as the better indicator of underlying inflation, advanced just 4.8%, the lowest since 2021. The inflation data propelled the S&P 500 to finish at its highest since April 2022. The tech-heavy Nasdaq 100 outperformed with a jump of 1.2%. At 05:24 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was unchanged at 19,591.5.

Economic Calendar:

• USD : Initial Jobless Claims on 13th July, 2023
• USD : PPI (MoM) (Jun) on 13th July, 2023
• INR : WPI Inflation (YoY) (Jun) on 14th July, 2023
• INR : Bank Loan Growth on 14th July, 2023

Brokerage Radar:

JPM ON TCS: UW, TP cut to Rs 2650; 1Q24 broadly in-line with expectations of CC QQ flat & margins declining 130bps QQ; Growth dragged down by Telecom, Hitech & BFSI; Co witnessing near term softness driven by uncertainty driving project pauses & deferrals

JEFFERIES ON HCL TECH: Hold, TP Rs 1205; 1Q missed est mainly due to unexpected rev decline in both Services & Software segments; Deal wins soft though management expects stronger deal wins in 2Q; Despite miss, co maintained guidance of 6-8% YoY cc for growth &18-20%for margins

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Oil Stocks: To be in focus after Brent crude futures hit $80.05 a barrel amid signs of tightening supplies and slower-than-expected U.S. inflation.

Titan Company, Kalyan Jewellers India, and Jewellery Stocks: The Central Government has restricted the import of unstudded gold and certain gold articles. Importers would require permission from the government to import these gold products. Restrictions will not apply to imports under the India-UAE free trade agreement.

JSW Steel: The company will replace HDFC on the S&P BSE Sensex from July 13. On July 5, the stock exchange made the announcement. HDFC, which merged with HDFC Bank earlier this month, will delist from the benchmark index today.

Patanjali Foods: The company’s promoter will sell a 7% stake over two trading days. Patanjali Ayurved will sell 2.53 crore shares, or a 7% stake, in Patanjali Foods on July 13 and 14. The floor price of the offer shall be Rs 1000 apiece. The promoter will have the option to additionally sell up to 2% in the event of oversubscription.

SpiceJet: Promoter to invest Rs 500 crore to strengthen the airline’s financial position. Ajay Singh, also the CMD of SpiceJet, will infuse capital through equity and or convertible securities on a preferential basis. Funds to be considered equity shares of promoters in the government’s ECLG scheme.

Dr. Reddy’s Laboratories: The drugmaker’s biologics license application for its proposed biosimilar rituximab has been accepted by the U.S. Food and Drug Administration, the European Medicines Agency, and the U.K. Medicines and Healthcare Products Regulatory Agency. The biosimilar will be used in the treatment of rheumatoid arthritis, non-Hodgkin’s lymphoma, chronic lymphocytic leukaemia, pemphigus vulgaris, granulomatosis with polyangiitis, and microscopic polyangiitis.

Aurobindo Pharma: The company’s unit, APL Healthcare, has received final approval from the U.S. Food and Drug Administration to manufacture and sell Sevelamer Hydrochloride Tablets in doses of 400 mg and 800 mg, equivalent to Renagel Tablets of Genzyme Corporation. The drug has an estimated market size of around $37 million for the twelve months ending May 2023, according to IQVIA. Sevelamer Hydrochloride Tablets are used to treat chronic kidney disease.

Hindalco Industries: The company approved a proposal to sell its land at Kalwa in Maharashtra for Rs 595 crore and 1.5% of the sales revenue to Birla Estates, a unit of Century Textiles and Industries.

Source: Moneycontrol, Bloomberg Quint, Investing 

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