Market View 14th December 2022

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

Stocks in Asia followed equities on Wall Street by rising marginally after US inflation cooled ahead of the Federal Reserve’s policy decision later Wednesday. Asian markets opened in green on Wednesday as the Japanese Nikkei 225 was up 0.15%, while the Australian ASX was flat, trading at 0.06%, as of 6:18 am IST. U.S. stocks went through a volatile session on Tuesday. The S&P 500 rose 0.3%, while the tech heavy the Nasdaq 100 was up 0.4%. Meanwhile, the yield on 10-year Treasuries dropped 12 basis points to 3.50%. Crude rose 3.6% amid moderation in U.S. inflation and demand returning with China reopening. Gold futures rose 1.4%, while Bitcoin surged 3.1% to trade around $17,700-level. Domestic benchmark gauges shed losses to end in green after two days of fall, with market breadth in favour of bulls. Rupee continued to depreciate against the U.S. dollar in the face of forex outflows and anticipation around the Fed policy announcement. At 6:13 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.29% to 18,756.

Economic Calendar:

• USD : Fed Interest Rate Decision on 15th December, 2022
• USD : Core Retail Sales (MoM) (Nov) on 15th December, 2022
• INR : WPI Inflation (YoY) (Nov) on 14th December, 2022
• INR : Trade Balance on 15th December, 2022

Brokerage Radar:

UBS ON DR LAL PATHLABS: Buy, TP Rs 2800; Minimal impact of additional free testing by Delhi Govt.; Believe 80-90% of testing requirements are already being met & hence additional tests may have a minimal impact; DLPL drives around 20-25% of rev from Delhi

MS ON PAYTM: EW, TP Rs 695; Proposes buyback of Rs8.5bn, with a max Rs 810; Board highlighted that this is a sign of confidence that co is on a clear path to deliver cash flow profitability & that this will not impact future performance; Cash position strong at Rs91.8bn as of Sept22

CS ON HAVELLS: O-P, TP Rs 1450; Management meet takeaways; Rating change in fans likely to have relatively lower impact; Lighting segment dynamics have reduced with end of price erosion; Expect margin improvement in electrical portfolio from 2HFY23 & in consumer durables from 4QFY23

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

One97 Communications: The company will buy back up to 1.05 crore shares for up to Rs 850 crore at a maximum Rs 810 apiece.

HDFC/HDFC Bank: The NBFC received in-principle approval from BSE and National Stock Exchange for transfer of non-convertible debentures to HDFC Bank under the merger deal between the two lenders.

Yes Bank: The board approved allotment of 361.61 crore equity shares and 255.97 crore warrants to Carlyle Group’s CA Basque Investments and Advent-controlled Verventa Holdings.

Bank of Baroda: The bank will divest its 98.57% shareholding in Nainital Bank.

UltraTech Cement: The company commissioned 1.9 MTPA greenfield clinker backed grinding capacity at Pali Cement Works, Rajasthan.

Adani Transmission: The company incorporated a wholly owned subsidiary Adani Cooling Solutions to carry on district cooling system business.

Reliance Industries: Heads Up Ventures has entered into a contract with Reliance Retail for sale of its products on the latter’s e-commerce platform.

TVS Motor Company: The company is planning to launch five Euro-5 compliant two-wheelers in Turkey.

Piramal Enterprises: The company’s subsidiary Piramal Capital & Housing Finance acquired 100% stake in step down subsidiary PRL Agastya.

Bayer CropScience: The operations at the company’s crop protection formulations plant in Himmatnagar, Gujarat have been discontinued on directions from Gujarat Pollution Control Board.

IFB Industries: The board approved infusion of Rs 97 crore in promoter group company IFB Refrigeration.

 Source: Moneycontrol, Bloomberg Quint, Investing

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