Market View 17th February 2023

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

Asia markets declined, following a drop in the U.S. benchmarks after comments by two Federal Reserve officials that they were considering 50 basis-point interest rate hikes to battle persistently high inflation. The S&P 500 Index lost 1.4% and the Nasdaq 100 sank 1.9%, while the yield on the benchmark 10-year Treasury surged to the highest level this year. Meanwhile, the yield on 10-year Treasuries advanced to 3.87%. Crude prices were trading around $85-mark, while Bitcoin was trading below 24,000-level. At 6:01 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.38% at 17,999.5. India’s benchmark stock indices ended firm for the third day in a row on Thursday, led by gains in I.T., metal and realty stocks. Rupee snapped its three-day decline against the U.S. dollar on account of a broadly weaker greenback and stronger domestic equities.

Economic Calendar:

• USD : Existing Home Sales (Jan) on 21^st February, 2023
• USD : GDP (QoQ) (Q4) on 23^rd February, 2023
• INR : FX Reserves, USD on 17^th February, 2023
• INR : GDP Quarterly (YoY) (Q3) on 28^th February, 2023

Brokerage Radar:

CS ON DR REDDY’S: U-P, TP Rs 4100; Indivior expects launch of gSuboxone by Apotex in 1QFY24; Suboxone still constitutes 7% of DRL’s’ base EBITDA; Entry of Apotex can potentially impact 2/5th of its EBITDA from gSuboxone

MS ON NESTLE: UW, TP Rs 15315; 4Q below expectations on top line but ahead on margins; Remain UW, given weaker growth in largest category, margin pressure & likely mix deterioration, & relative valuation

JPM ON KFIN TECH: Initiate Neutral, TP Rs 320; Co’s guidance of maintaining EBITDA margins at 40-45% will need monitoring given B2B nature of biz & inherent operating leverage impact as AUM growth moderates.

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Vedanta: The company was selected as the preferred bidder for receiving composite licence for Kelwardabri block in Chhattisgarh, which has reserves of nickel, chromium and associated platinum group elements.

REC: Fitch Ratings has assigned ‘BBB-’ rating to proposed senior unsecured notes of the company, which will be issued from its existing $7 billion global medium-term note programme.

RailTel Corporation of India: The company received a work order worth Rs 27.07 crore from Bangalore Metro Rail Corporation for supply, installation testing and commissioning of the IT network infrastructure, and a comprehensive annual maintenance contract of Rs 6.22 crore per year for 5 years, extendable to 10 years. Vodafone Idea/Bharti Airtel/Reliance Industries: Vodafone Idea lost 2.47 million subscribers in December last year, while Bharti Airtel and Reliance Jio Infocomm added 1.53 million and 1.7 million subscribers during the month, respectively, as per data released by telecom regulator TRAI.

Angel One: Narayan Gangadhar resigned from the position of CEO of the company, effective close of business hours on May 16, 2023, due to personal reasons. The day-to-day affairs of the company will be under chairman and managing director Dinesh Thakkar for now.

Engineers India: The company signed an memorandum of agreement with Oil India to carry out technological studies and feasibility reports for the upstream, midstream and the downstream value chain.

UltraTech Cement: The company commissioned 1.30 mtpa brownfield cement capacity in Hirmi, Chhattisgarh and 2.80 mtpa greenfield grinding capacity in Cuttack, Odisha, taking its total cement manufacturing capacity in India to 126.95 mtpa.

Hindustan Aeronautics/Bharat Forge: Hindustan Aeronautics, Saarloha Advanced Materials and Bharat Forge signed an MOU for collaboration in development and production of aerospace grade steel alloys.

Power Grid Corporation of India: POWERGRID Bhuj Transmission, a wholly owned subsidiary of the company, commissioned the transmission system for providing connectivity to renewable energy projects at Bhuj-II in Gujarat.

Source: Moneycontrol, Bloomberg Quint, Investing

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