Market View 16th December 2022

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

U.S. stocks dipped with as bank CEOs raised alarm over downbeat economic conditions. The S&P 500 fell 1.3% and the tech-heavy Nasdaq fell 1.7%. Yield on 10-year Treasuries declined one basis point to 3.56%. Oil fell 3.6% amid broader market selloff and high interest rates. Gold futures rose 0.1%, while Bitcoin continued to trade around $17,000-level. The Indian benchmark indices had a rough day, as the Sensex lost 208 points and Nifty closed 54 points lower amid mixed global cues. Fifteen of the 19 sectoral indices compiled by BSE Ltd. declined, with BSE Information & Technology, Telecommunication, Metal and Teck falling the most. Rupee fell against U.S. dollar to cross the 82-mark for the first time since Nov. 7.  At 6:24 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.29% to 18,698.5.

Economic Calendar:

• USD : Building Permits (Nov) on 20th December, 2022
• USD : GDP (QoQ) (Q3) on 22nd December, 2022
• INR : Bank Loan Growth on 16th December, 2022
• INR : Federal Fiscal Deficit (Nov) on 30th December, 2022

Brokerage Radar:

JEFFERIES ON SHRIRAM TRANSPORT: Hold, TP Rs 1365; Revise FY23-25 EPS by -4%/4% factoring in merger; Believe AUM should grow at 15% CAGR over FY23-25e, but with some NIM pressure, Shriram should deliver moderate 13% EPS CAGR & 14% ROE over FY23-25e; Risk-Supply from large non-promoter

BOFA ON HDFC BK: Buy, TP Rs 1900; Earnings delivery to be ahead of mkt expectations; Merger & beyond – focus shifts to execution & synergy; Standalone – branches, digital, NIMs, op leverage; Risk-reward very attractive at current vals

CS ON BANKS: Larger banks driving deposit rate hike; FII ownership in PSU banks is relatively low at 8-10% for SBI & BOB vs 30-45% for larger private banks, which limits potential risk from FII selling; Continue to prefer larger banks, BOB, SBI, IndusInd, & ICICI

International Markets:

U.S & Europe

Asian markets

ADR Watch

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: Reliance Consumer Products launched FMCG brand ‘Independence’ in Gujarat to cater to demand in categories like edible oil, staples, processed foods, beverages and other daily essentials. Reliance Digital Health, another subsidiary of the company, signed a deal to acquire 2.25% stake in New York-based Synchron.

Wipro: The company signed deals with a five-year, multi-million-dollar deal with Mazda Motor Logistics Europe to help industrialise Mazda IT, digitise processes, and enable agile DevOps. It signed another deal with fintech player Finastra to deploy its trade finance solutions in Middle East.

Deepak Fertilisers and Petrochemicals Corporation: The board approved a composite scheme of arrangement to restructure the company’s mining chemical and fertiliser businesses.

Hindustan Petroleum Corporation: The company will raise Rs 10,000 crore debt via non-convertible debentures, bonds or notes.

HDFC Asset Management Company: Life Insurance Corporation of India increased its stake in the company to 9.053% from 7.024%.

AIA Engineering: The company will buy 26% stake in Clean Max Meridius.

Hindustan Foods: The company will purchase Himachal manufacturing plant of Reckitt Benckiser for Rs 156 crore.

Shriram Transport Finance: The board will meet on Dec. 24 to consider the proposal for a dividend.

Shriram Pistons & Rings: The company will acquire majority stake in Singapore-backed electric motor design and manufacturing specialist company EMF Innovations through subsidiary SPR Engenious for a consideration of Rs 78 crore.

SJVN: Subsidiary SJVN Green Energy achieved financial closure of its 1,000 MW solar power project at Bikaner, Rajasthan.

IRCTC: The offer for sale by the company was oversubscribed 3.08 times on the first day. It will open on Dec. 16 for retail investors.

Source: Moneycontrol, Bloomberg Quint, Investing

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