Market View 16th February 2023

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

Asian markets were set to open higher after the U.S. shares climbed and Treasuries sold off as investors weighed fresh data that indicated further Federal Reserve tightening ahead. The S&P 500 climbed 0.3% to close at its session high while the Nasdaq 100 ended the day 0.8% higher. Meanwhile, the yield on 10-year Treasuries advanced to 3.81%. Crude prices were trading around $85-mark, while Bitcoin trading above 24,000-level. At 5:50 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.22% at 18,059.5. MSCI said it’ll postpone implementation of any update on Foreign Inclusion Factors of specific securities associated with the Adani Group to May 2023 Index Review. Meanwhile, S&P Global Ratings placed Adani Transmission Ltd. ESG evaluation under review on potential governance Issues.

Economic Calendar:

• USD : Initial Jobless Claims on 16^th February, 2023
• USD : PPI (MoM) (Jan) on 16^th February, 2023
• INR : FX Reserves, USD on 17^th February, 2023
• INR : GDP Quarterly (YoY) (Q3) on 28^th February, 2023

Brokerage Radar:

CLSA ON VODA IDEA: Sell, TP Rs 5; 3QFY23 revenue, Ebitda below estimates; Arpu increases but subscriber loss continues; Conversion of interest into equity for government; Cut FY23/25CL forecasts by 2-16%. Awaiting fund raising

GS ON APOLLO HOSPITAL: Buy,  TP Rs 5100; Hospitals doing well, focus shifts to pharmacy growth & profitability; Lower FY23-25E EBITDA est. by 2-11% mainly to factor in faster topline growth at pharmacy biz offset by continued elevated startup losses at Apollo 24/7

NOMURA ON MOTHERSON SUMI WIRING: Initiate Buy, TP Rs 62; Leadership in wiring harness, Sumitomo’s high voltage expertise to aid EV share

Premiumisation, autonomous/connected features, EVs to drive WH content; Co to deliver 27% FY23-25F EPS CAGR; value at 35x FY25F

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Vedanta: The company was declared the preferred bidder for Sijimali Bauxite Block, located in Rayagada and Kalahandi districts of Odisha, under the mineral block auction conducted by the Odisha government. The block has estimated reserves of 311 million tonnes of bauxite.

Adani Power: The long stop date under the MoU dated Aug. 18, 2022, to acquire 100% stake in DB Power has expired.

ONGC: ONGC clarified that ONGC Videsh, a wholly owned subsidiary of the company, signed an MoU with Argentina’s state oil company YPF for co-operation in the hydrocarbon sector.

Bharat Electronics: The company signed an MoU with Goa Shipyard for co-operation for supply of products such as autonomous boats, and other systems based on artifical intellegence for naval platforms.

Patel Engineering: The company, along with its joint venture partners, has been chosen for projects worth Rs 1,567 crore in Madhya Pradesh and Maharashtra, to be completed within 36 months.

Ugro Capital: The board will meet on Feb. 20, to consider and approve raising funds via non-convertible debentures through private placement basis.

Dalmia Bharat/Jaiprakash Associates: The Competition Commission of India approved the acquisition of clinker, cement and power plants belonging to Jaiprakash Associates and its associate.

PTC Industries: The company signed an MoU with Hindustan Aeronautics-SED for cooperation and business development for indigenisation of aviation grade raw materials, components, sub-systems, and systems of aero-engines of Russian origin aircraft.

Bharat Dynamics: The company signed ten MoUs with Thales, UAE-based Al Tariq, Bulgaria’s Bultexpro, Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation at the Aero India event. It also launched several products at the event.

Source: Moneycontrol, Bloomberg Quint, Investing

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