Market View 13th March 2023

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

Asian stocks fell, U.S. stock futures surged and the dollar retreated after American financial regulators took steps to shore up the financial sector with a new lending program in the wake of Silicon Valley Bank’s failure. Australian and Japanese shares fell. Investors will be monitoring how Chinese markets react to news that central bank governor Governor Yi Gang was kept in his post, the finance and commerce ministers. The continuity may be welcomed by investors, who have grown sensitive to policy risks from Beijing.  Crude price rose 1.4%, while gold prices increased 1.8% with the rout in equity and bond markets. Bitcoin dived 1.4% to trade below the $20,000 level. Both Indian benchmark indices tanked—Sensex closed 1.12% lower while the Nifty dipped 1%—as PSU, banking and financial stocks dragged on account of weak global cues. The Indian rupee closed lower against the U.S. dollar as the domestic unit tracked weak Asian peers amid fears of faster rate hikes by the U.S. Federal Reserve. At 6:50 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.26% to 17,392.5.

Economic Calendar:

• USD : CPI (YoY) (Feb) on 14th March, 2023
• USD : PPI (MoM) (Feb) on 15^th March, 2023
• INR : CPI (YoY) (Feb) on 13th March, 2023
• INR : WPI Inflation (YoY) (Feb) on 14^th March, 2023

Brokerage Radar:

JPM ON INFOSYS: Neutral, TP Rs 1700; Announced resignation of its President, Mohit Joshi; 2nd loss of a senior leader to a Tier 1 rival over last 6 mths after Ravi Kumar left in Oct 22 for Cognizant; Departures highlight depth, but also bring a near-term rebuild

MS ON ICICI LOMBARD: OW, TP Rs 1400; ICICI Bk receives 1-yr extension to bring down stake to <30% (from current 48.02%) While extension provides time to execute, duration of extension being only 1 yr makes it unlikely to result in any durable relief rally in stock

CITI ON TECH MAHINDRA: Neutral, TP Rs 1120; Appoints Mohit Joshi as CEO; In near term, expect a favorable stock price reaction; Real test of performance will start next CY once Mohit assumes CEO role

International Markets

U.S & Europe: 

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Group stocks/Ambuja Cement: Adani promoters notified that they have fully repaid share backed debt worth $2.15 billion (or Rs 17,623 crore as of 12th March) ahead of month end deadline.

Nazara Technologies: Gaming and sports media platform, Nazara Technologies informed the stock exchanges that two of its subsidiaries have cash balances worth Rs 64 crore in the recently collapsed Silicon Valley Bank.

Hindustan Aeronautics: The Ministry of Defence will procure six Dornier-228 aircraft for the Indian Air Force from the company for Rs 667 crore.

ICICI Bank/ ICICI Lombard General Insurance Company: The RBI granted ICICI Bank time till Sept. 9, 2024, to reduce its stake in ICICI Lombard General Insurance Company to the required 30%.

Canara Bank: The bank raised its lending rates by 10-45 basis points across tenors with effect from March 12.

IndusInd Bank: The RBI approved reappointment of Sumant Kathpalia as MD and CEO of the bank for two more years, effective March 24, 2023.

Lupin: The U.S. FDA completed a pre-approval and GMP inspection of its API manufacturing inspection in Visakhapatnam, India, from March 6-10, 2023, with no observations.

Ujjivan Financial Services: The company announced an interim dividend of Rs 5 per share of Rs 10 each. The record date for the dividend is March 20, 2023.

Godrej Industries: The board approved issuance of 1 lakh non-convertible debentures aggregating to Rs 1,000 crore on private placement basis.

Aster DM Healthcare: Aster Pharmacies Group, a material subsidiary of the company, has incorporated a joint venture Aster Arabia Trading Company in Riyadh establish, manage and operate pharmacy chain across the Kingdom of Saudi Arabia.

Source: Moneycontrol, Bloomberg Quint, Investing

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