Market View 15th March 2023

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

Asian markets are poised to rebound on Wednesday as investors wager that the worst of the global fallout from the American banking sector has passed. U.S. stocks rallied into the close, helping set the tone for a shift in sentiment Wednesday. The tech-heavy Nasdaq 100 notched its biggest one-day gain since early February. Consumer price index in the U.S. increased 0.5% in February, slightly ahead of the median estimate of 0.4% and enough to keep pressure on policy makers to hike rates. Meanwhile, the yield on 10-year Treasuries declined to 3.68%. Crude prices were trading around $78-mark, while Bitcoin was trading around 24,000-level. At 6:18 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.52% at 17,200. Both Indian benchmark indices—Sensex and Nifty—closed lower for the fourth day in a row after a volatile session, weighed down by decline in IT and banking stocks. The Indian rupee closed lower against the U.S. dollar for the third consecutive day as domestic equities declined and FPI outflow continued.

Economic Calendar:

• USD : PPI (MoM) (Feb) on 15th March, 2023
• USD : Retail Sales (MoM) (Feb) on 15^th March, 2023
• INR : FX Reserves, USD on 17th March, 2023
• INR : Infrastructure Output (YoY) (Feb) on 31^st March, 2023

Brokerage Radar:

CLSA ON IDFC FIRST BK: Buy, TP Rs 75; Done well on liabilities but asking rate will continue to remain high; Retail transformation post-merger & liabilities doing well but a work in progress; Higher Opex constrains ROE; expect normalisation with a few visible levers

JEFFERIES ON SONA BLW: Initiate Buy, TP Rs 575; Like Sona’s strategy of expanding its component portfolio to address intensifying electrification & autonomous trends in global autos; A large order book provides growth visibility; expect 31%/40% revenue/EPS CAGR over FY23-26E; Valuations appear rich at 38x FY24E PE, but should sustain, given strong outlook. Any PLI benefits pose upside risk to estimates.

NOMURA ON VOLTAS: Buy, TP Rs 1083; On margins, Voltas should be able to touch 9% in near term. On VoltBek, it plans to be more aggressive; In projects biz, it has stopped unconditional bank guarantees

International Markets

U.S & Europe: 

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

NBCC (India): Received a work order from Government of Puducherry to construct Government Medical College and Hospital at Karaikal, Puducherry for Rs 500 crore.

Reliance Industries: The Competition Commission of India has approved the acquisition of Metro Cash & Carry by Reliance Retail Ventures, the retail arm of the oil-to-telecom conglomerate.

Cipla: The company will sell 51.8% stake in its Ugandan subsidiary Cipla Quality Chemical Industries to Africa Capitalworks SSA 3 for $25-30 million. GlaxoSmithKline Pharmaceuticals/ Marksans Pharma/ Wockhardt: Following companies are likely to be impacted as per Bloomberg as the Medicines & Healthcare Products Regulatory Agency, the healthcare regulator in the U.K., ordered the recall for cough and cold medicines that contain pholcodine.

RailTel Corporation of India: The company received a work order from Centre for Development of Advanced Computing for supply, installation, integration, testing and commissioning of IT infrastructure in green field data centre at New Delhi and Bengaluru, along with training and support. The project is worth Rs 287.57 crore.

Honeywell Automation India: Honeywell has appointed Vimal Kapur, its president and COO, as its next CEO. Kapur will succeed incumbent chairman and CEO Darius Adamczyk.

PNC Infratech: The company has been declared the lowest bidder for a NHAI project to construct six-lane 35.2-km greenfield Varanasi-Ranchi-Kolkata highway for a bid project cost of Rs 1,260 crore.

Elgi Equipments: The company’s wholly owned subsidiary Elgi Compressors U.S.A. has acquired 33.33% stake in CS Industrial Services.

LIC Housing Finance: Chairman MR Kumar has resigned from the board of the company upon attainment of superannuation.

 Source: Moneycontrol, Bloomberg Quint, Investing

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