Market View 16th March 2023

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

Asian markets headed for declines after the U.S. stocks fell and government bonds and the dollar rallied. A fresh turmoil at Credit Suisse Group AG roiled markets days after the collapse of three American lenders. This casts doubt on whether the Federal Reserve will increase interest rates next week. U.S. futures showed fledgling signs of stability after the S&P 500 fell 0.7% on Wednesday. The U.S. benchmark pared earlier losses after Switzerland’s central bank said Credit Suisse would receive a liquidity backstop if needed. The KBW Bank Index, one of the broadest measures of the US banking system, fell 3.6%, undoing a rally from the prior session. Brent crude slipped below $75 a barrel for the first time since December 2021, intraday. Gold prices surged as investors moved away from riskier assets. The yield on 10-year treasuries declined to 3.43%, while Bitcoin was trading around 24,000-level. At 6:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.29% at 16,925. Indian benchmark indices—Sensex and Nifty—tanked for the fifth consecutive day to end at their lowest respective levels since October, as financial and banking stocks led the decline. The Indian rupee maintained its downward trajectory against the U.S. dollar for the fourth day in a row amid a surge in demand for the greenback and continued FPI outflow.

Economic Calendar:

• USD : Initial Jobless Claims on 16th March, 2023
• USD : Building Permits (Feb) on 16^th March, 2023
• INR : FX Reserves, USD on 17th March, 2023
• INR : Infrastructure Output (YoY) (Feb) on 31^st March, 2023

Brokerage Radar:

MS ON AXIS BK: OW, TP Rs 1200; Expects deposit growth to accelerate next yr, driven by improving real rates as well as greater traction on its strategy; Asset quality performing well, with net slippages & credit cost at benign levels

MS ON SBI: OW, TP Rs 715; Expects banking sector to remain resilient despite recent local/global macro concerns; Loan growth trends to remain healthy; Margins would improve over next two qtrs.; Doesn’t expect to raise capital in near term

JPM ON TITAN: OW, TP Rs 3000, Preferred discretionary play; Expect margin to stay stable at 12-13% as drag from rising gold price competitiveness and growing share of exchange should be mitigated by better mix & operating leverage benefits

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Samvardhana Motherson International: Sumitomo Wiring Systems to sell approximately 3.4% stake or 23 crore shares via JPMorgan, reports Bloomberg. The size of the deal will be around $195 million (approximately Rs 1,613-crore) at a floor price of Rs 69.90 apiece.

Patanjali Foods: Stock exchanges BSE and National Stock Exchange have frozen shareholding of promoters and promoter group in the company as it could not increase public shareholding to the required 25% within the stipulated deadline. The action, which affected 29.26 crore shares, will remain in effect till the mandated public shareholding levels are met.

Ceat: Ceat Specialty, a division of Ceat Tires, entered into an agreement with CNH Industrial to supply agricultural radial tires for their machines being produced in Brazil and Argentina, the company said in a statement.

ITC: ITC Infotech India, a wholly owned subsidiary of the company, incorporated a subsidiary in Germany under the name ITC Infotech GmbH.

BLS International: BLS E-Services, a subsidiary of the company, increased its stake in Zero Mass to 90.42%.

Federal Bank: The board of the bank will meet on March 18, 2023, to consider raising Rs 1,000 crore via tier-II bonds on a private placement basis.

JSW Energy: The Finance Committee of the company approved allotment of 25,000 non-convertible debentures of Rs 1 lakh each to raise Rs 250 crore.

Godawari Power & Ispat: The board of directors will meet on March 18 to consider a share buyback programme.

Sarda Energy & Minerals: The company received consent to operate from Chhattisgarh Environment Conservation Board for expansion in existing rolling mill from 1.8 lakh tonnes per annum to 2.5 lakh tonnes per annum.

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