Market View 13th June 2022

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

US equity futures and Asian equities fell early Monday after US inflation print piled the pressure on the Federal Reserve to intensify monetary tightening. Nasdaq 100 contracts lost over 1%, while those for the S&P 500 fell. Asian futures hinted at a decline. The Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell more than 0.8% to 16,048 points as of 6:10 am. The dollar was firm on haven demand while oil retreated below $120 a barrel. Elsewhere, Bitcoin slipped below $27,000.

Economic Calendar:

• INR: WPI Inflation on 13^th June 2022.
• INR: CPI Inflation on 13^th June 2022.
• USD: OPEC Monthly Report 14^th June, 2022.
• USD: US Interest Rate 15^th June, 2022.

Brokerage Radar:

MORGAN STANLEY ON SUN PHARMA: OW, TP Rs 1032 Niche gPentasa – Quick Market Share Ramp Up Latest IQVIA weekly data shows a sharp increase in market share to 34.8%, within 3 weeks of launch Volumes were up 121% week-on-week, versus innovator’s down 31%, Assuming 40-50% discount/rebates & 40-50% volume share, estimate $50-70m sales upside for Sun (3-4% of Sun’s overall US sales) with high margins on a 12-month basis.

BANK OF AMERICA ON CAMPUS ACTIVEWEAR: Initiate Neutral, TP Rs 355 Long runaway for growth; strong innovation, execution Growth driven by industry tailwinds & self-help measures Competitiveness-vertically integrated & local supply chain Risks balanced: inflationary pressure bites.

CREDIT SUISSE ON MEDPLUS HEALTH: Initiate Neutral, TP  Rs 775, High growth phase but threat from e-pharmacies Initiate factoring in Co’s EBITDA margin expanding from 3.2% (4Q FY22) to 7-8% in steady state (prvt label mix increasing to 20%) & annual store addition of 1000 each for next 5 yrs.

CLSA ON RBL BANK: Downgrade to O-P from Buy, TP Rs 130 RBI approves R Subramaniakumar as MD & CEO Appointment raises several questions Leadership flux & liability headwinds, but asset quality manageable

@0.5x FY23/24CL PB STK is cheap, however, lacks material triggers.

UBS ON MARUTI: Buy, TP Rs 10000 SUV action starts 30th June 22 Set to launch next generation Brezza on 30th, followed by Toyota unveiling mid-size SUV Hyryder very next day Expect Maruti’s version of Toyota Hyryder to debut within weeks of Toyota unveil

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

Coal India: The company floated two international competitive bidding e-tenders of 3 million tons each, to source coal from abroad. The bids are for 5,000 GAR (gross as received) quality of thermal grade coal. These two medium term tenders for a total of 6 million tons coal quantity have an option of increasing the bid quantity by 100% to 12 MTs.

Vedanta: The company iron and steel sector has ventured into International Iron ore mining operations in Liberia, West Africa through its subsidiary Western Cluster.

IndInfravit: Brookfield Asset Management Inc. agreed to sell its entire equity shareholding in five road projects to IndInfravit Trust at an enterprise value of $1.2 billion (Rs 9,371.4 crore). The portfolio comprises three toll roads and two annuity roads with nearly 2,400 lane- kilometres in Andhra Pradesh, Bihar, Maharashtra, and Uttar Pradesh, it said.

GlaxoSmithKline Pharmaceuticals: Recommended dividend of Rs 90 per share including special dividend of Rs. 60, on face value of Rs 10 each.

Jammu & Kashmir Bank: Appointed Pratik D Punjabi as the Chief Financial Officer.

Future Supply Chain Solutions: The company has been facing challenges on account of frequent disruption of business operations at a few of its warehouses due to non‐payment/ part payments to the labour and on‐roll manpower who are intermittently disrupting the business activities at various warehouse locations.

Aban Offshore: To sell rig driller to ADNOC Drilling Co. for Rs 218 crore.

Bajaj Auto: Rolls out first electric scooter from plant in Pune; Chetak Tech, vendor partners to invest Rs 750 crore in EV plant.

Berger Paints: Says 1 contractual employee dies in Howrah fire.

Hindustan Zinc: DIPAM secretary says that government plans to sell residual stake in tranches.

IDBI Bank: Expression of interest for IDBI sale may come by July.

Laurus Labs: To spend up to 10% profit on disruptive technologies.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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