Market View 15th November 2022

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

Asian stocks opened slightly higher Tuesday amid fragile sentiment following a choppy session on Wall Street and ahead of a slew of Chinese economic data. West Texas Intermediate crude benchmark fell 3.3% to $86.06 per barrel, while gold rose 0.2%. Bitcoin rose 1.2% to $16,600-level as optimism returned to the volatile market on plans of Binance Holdings to form a recovery fund to mitigate headwinds from the FTX meltdown. Back home, Indian benchmarks indices Sensex and Nifty closed lower, dragged by losses in FMCG, power, utilities and capital goods stocks. Rupee wiped early gains against the U.S. dollar, dropping 0.54% against the greenback. At 6:40 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.15% to 18,405.5.

Economic Calendar:

• USD : PPI (MoM) (Oct) on 15th November, 2022
• USD : Retail Sales (MoM) (Oct) on 16th November, 2022
• INR : Trade Balance on 15th November, 2022
• INR : Bank Loan Growth on 18th November, 2022

Brokerage Radar:

MS ON PAYTM: OW, TP Rs 695; GMV growth remain strong, though it moderated YoY vs last month; Avg MTU growth sustained at 33% YoY; Loans disbursed of Rs31bn grew by 9% MoM, helped by improving ticket size; Devices deployed rose to 5.1m vs 4.8m in Sep-22

JEFFERIES ON DELHIVERY: Buy, TP Rs 700; 2Q EBITDA loss lower than expected due to 21% YoY decline in staff cost & operating leverage; Believe CMP factor 6-8% express parcel growth in next 3-5 yrs vs 25%+ in past; B2B growth,cost rationalisation & low e-com penetration underestimated

CLSA ON MGL: Buy,TP Rs 1020; Q2 miss due to lower industrial margins; Vols broadly in line; Margins should improve from here; expert panel report keenly awaited; At 10x PE, a 40% PE disc to IGL, 4% dividend yield & cash at 20% of its Mcap suggest an attractive risk-reward

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

NMDC: Registered a 62% year-on-year decline in profit at Rs 885.7 crore for quarter ended September FY23, impacted by lower top line as well as operating income. Numbers were below analysts’ expectations. Revenue from operations for the quarter at Rs 3,328 crore declined 51% and EBITDA fell 73% to Rs 851.2 crore compared to year-ago period.

Apollo Tyres: Recorded 12% YoYgrowth in consolidated profit at Rs 194.5 crore for the quarter ended September FY23, supported by top line. Revenue from operations grew by 17% YoY to Rs 5,956 crore and EBITDA rose 11.6% to Rs 712 crore, though margin contracted 60 bps due to higher input cost.

Larsen & Toubro/L&T Infotech/Mindtree: The conglomerate secured NCLT approval to merge its software units—L&T Infotech and Mindtree—with effect from Nov. 14 to form the merged entity LTIMindtree. L&T Infotech appointed Debashis Chatterjee as CEO and MD, and Vinit Teredesai as CFO.

Thomas Cook (India): The company signed a long-term agreement with KrisFlyer, the loyalty programme of Singapore Airlines, becoming the first forex partner on the platform.

Life Insurance Corporation of India: The insurer diluted its shareholding in Adani Ports and Special Economic Zone to 9.35% from 11.37%.

Biocon: The board approved proposals to raise funds through issuance of non-convertible debentures worth $250 million (Rs 2,024.61 crore) and commercial papers worth $275 million (Rs 2,227.07 crore).

Adani Ports and Special Economic Zone: The company floated a joint venture, Mediterranean International Ports ADGD Ltd., with Israel-based Gadot Group to acquire Haifa Port Company, which operates the Haifa Port in the country.

Adani Enterprises/NDTV: Market regulator SEBI has given its final approval to the company’s open offer for 26% stake of NDTV.

Zomato: Rahul Ganjoo, head of new initiatives at the company, resigned from his post.

 Source: Moneycontrol, Bloomberg Quint, Investing

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