Market View 15th May 2023

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

U.S. stock futures declined whereas, the picture for Asian stocks was mixed, with futures for Hong Kong down, those for Japan up and contracts for Australia’s benchmark marginally lower. The S&P 500 ended the week down 0.3% while the Nasdaq 100 eked out a 0.6% advance. Inflation concerns persist, with a preliminary University of Michigan sentiment survey showing consumers expect prices to rise at a 3.2% annual rate over the next five to 10 years, a 12-year high. In China inflationary pressure has been in retreat, raising speculation that the central bank may ease monetary policy. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.78%. Crude prices fell below $75-mark, while Bitcoin declined below 27,000-level. At 5:34 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.37% at 18,256.5. Domestic benchmark indices reversed early losses to close with gains, supported by advances in banking and auto stocks. The Indian rupee continued its downward trend against the U.S. dollar as a stronger greenback attracted investor attention.

Economic Calendar:

• USD : Retail Sales (MoM) (Apr) on 16^th May, 2023
• USD : Building Permits (Apr) on 17^th May, 2023
• INR : WPI Inflation (YoY) (Apr) on 15^th May, 2023
• INR : Trade Balance on 15^th May, 2023

Q4 Results Today: Pfizer, PVR Inox, Kalyan Jewellers India, Suryoday Small Finance Bank, Tube Investments of India, Asahi India Glass, Century Plyboards (I), Astral, Cantabil Retail India, Coromandel International, Goodluck India, HIL, Patel Engineering, PCBL, Procter & Gamble Health, SJS Enterprises, Skipper, Subex, Ugro Capital, Uttam Sugar Mills, Vesuvius India.

Brokerage Radar:

JEFFERIES ON TATA MOTORS: Buy, TP raised to Rs 665; 4Q EBITDA rose 47% YoY (in-line with JEFe), to a new high. EBITDA/vehicle rose 7-24% QoQ across JLR & India CV/PV; net auto debt fell 24% QoQ; Co aims to deliver £2bn+ free cash flow in FY24 (JEFe £2.2bn)

CLSA ON DLF: Buy, TP Rs 540; Presale guidance of Rs110bn-Rs120bn for FY24 looks conservative; Office demand from third-party players is weak, but steady from GCCs; Raise presale estimates for FY24/25 by 21%/14%

NOMURA ON COLGATE: Neutral, TP Rs 1650; 4Q: OPM all-time high but vols decline for 5th qtr. in a row; Anaemic sales growth; rural weakness weighing down on category growth; Higher investments & execution will be key to co’s 4-pillar growth strategy; Trades at 35x Mar-25F EPS

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Transmission: The board approves Rs 8,500 crore qualified institutional placement. The fundraise is subject to the receipt of the necessary approvals including the approval of the members of the company and other regulatory, statutory approvals, as may be required. The board will also seek shareholder approval for the fundraise.

Adani Enterprises: The board approves fundraise of Rs 12,500 crore via QIP. It will seek the approval of shareholders for the aforesaid issuance.

Birla Corporation: Wholly owned subsidiary RCCPL Pvt. Ltd. acquired limestone mining rights over 889.76 hectares in Katni, Madhya Pradesh in a tripartite agreement with the Madhya Pradesh government and Sanghi Infrastructure, for a consideration of Rs 5,155.49 crore.

Rail Vikas Nigam: A Rail Vikas Nigam-SCC Infrastructure joint venture received the letter of award for a project worth Rs 2,248.94 crore to plan, design and construction of main canal and structures to provide Irrigation facility to 41,903 hectares for Upper High-Level Canal of Mahi Bajaj Sagar Project in Banswara, Rajasthan. RVNL has 51% share in the joint venture.

Canara Bank: The Reserve Bank of India imposed a penalty of Rs 2.92 crore penalty on Canara Bank on regulatory violations.

Sun Pharmaceuticals: The company received tentative approval from U.S. FDA for its linagliptin tablets.

Source: Moneycontrol, Bloomberg Quint, Investing

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