Market View 15th June 2022

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

Asian stocks struggled for direction on Wednesday after S&P 500 fell for a fifth straight trading session–the longest losing streak in five months. US treasury yields and the dollar rose ahead of an FOMC decision due tonight. Shares dipped in Japan, Australia and South Korea. As of 6:45 am, the Singapore-traded SGX Nifty–an early barometer of India’s benchmark Nifty 50–was 0.07% higher at 15, ,711.50 points. Elsewhere, bitcoin traded below $22,000. Oil held under $120 a barrel.

Economic Calendar:

• INR: FX Reserve USD on 17^th June 2022.
• INR: Bank Loan Growth on 17^th June 2022.
• USD: FOMC Statement 15^th June, 2022.
• USD: US Interest Rate 15^th June, 2022.

Brokerage Radar:

CLSA ON IPL RIGHTS: IPL TV broadcasting rights in India for 2023-27 have been won in auction by Disney Star for Rs235.8bn/US$3.1bn IPL India composite digital rights have been won by Viacom 18 (owned by Reliance Industries) for Rs235bn/US$3.1bn, Analysis shows 15% Cagr in ad revenue is needed for next 5 yrs to equate to Disney Star TV rights bid cost, while 57% Cagr in ad revenue is needed for next 5 yrs to equate to Viacom 18 digital rights bid cost, Besides Viacom 18, OTT “VOOT” has been lagging, & IPL digital rights loss will be a significant hit to Disney Hotstar Meanwhile, Zee Sony did not win IPL rights but will likely gain from the improved competitive landscape in OTT.

UBS ON  IPL RIGHTS: IPL media rights auctioned for Rs484bn Linear broadcast rights retained by Star Viacom18 bags the digital rights Results a positive for both Zee Ent & Sun TV, Had assumed auction price at cRs400bn in estimates for Sun, & therefore, see some upside following result Zee Ent – Neutral, TP Rs 350 Sun TV– Buy, TP Rs 630.

MACQUARIE ON HDFC BANK: O-P, TP Rs 2005 ROE recovery could be delayed by 2 years post merger with HDFC Effective CASA could take 4-5 years to recover back to pre-merger levels HDFC BK Top pick & Marquee idea Core P/BV at 1.9x FY24E is cheap.

GOLDMAN SACHS ON CEMENT: Part of substantial price hike in April rolled back in May, largely due to choppy demand Given further rise in fuel costs, expect margins(in EBITDA/T) to decline sequentially in 1QFY23 (by Rs50-Rs100/T Expect vol growth of 13% yoy in 1QFY23

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

GR Infraprojects: CBI has filed an FIR against GR Infraprojects and three of the company’s officials under Prevention of Corruption Act.

LIC: The company’s stake in Hero MotoCorp has increased from 9.163% to 11.256%. It has also increased its stake in HUL to 5.008%.

SBI: India’s largest public sector lender has increased MCLR-based lending rates across tenors by 20 basis points.

NTPC: The company has started commercial operations for 15 MW out of 56 MW Kawas Solar PV Project at Kawas, Gujarat, taking its total operational capacity to 54,666.68 MW.

Wipro: The Bengaluru-based IT firm will increase its headcount in Norway to 350 to help clients capitalise on digital transformation.

Asian Paints: The company has acquired 51% stake in Weatherseal Fenestration for Rs 19 crore to make it a subsidiary.

Cipla: The drugmaker, along with Drugs for Neglected Diseases initiative, has launched an HIV drug for children in South Africa.

Bajaj Auto: Shekhar Bajaj has resigned as the non-executive director of the company due to health reasons.

Engineers India: The company was appointed as project management consultant by Nayveli Lignite Corp. for 1200 TPD lignite to methanol project. The project is expected to be commissioned in 2027.

Biocon: The Competition Commission of India has approved the sale of the global biosimilars portfolio of Viatris Inc. to the company.

IIFL Wealth: The Competition Commission of India has approved purchase of 24.98% stake of the company by Bain Capital.

GR Infraprojects: GR Bandikui Jaipur Expressway, a wholly owned subsidiary of the company, executed the concession agreement with the National Highways Authority of India. Pledged Shares Details

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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