Market View 17th May 2023

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

Asian markets were set for a mixed start to trading while U.S. contracts posted muted gains after leaders in Washington expressed cautious optimism about a bipartisan deal after debt-ceiling talks Stocks futures for Australia and Hong Kong fell while Japanese contracts ticked higher, indicating further gains for the country’s share benchmarks after the Topix Index closed at the highest level in 33 years on Tuesday. Wall Street strategists pointed to the country’s corporate reforms and loose monetary policy as reasons for further optimism. U.S. stock futures traded in the green in early trading after the Nasdaq 100 managed a small advance and the broader S&P fell following a rapid decline in the final minutes of trade. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.53%. Crude was below $75-mark, while Bitcoin advanced above 27,000-level. At 5:45 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.13% at 18,306. Domestic benchmarks ended their two-day rally as decline in HDFC twins weighed upon the indices. The Indian rupee gained against the U.S. dollar on the back of forex inflows and softening crude prices.

Economic Calendar:

• USD : Building Permits (Apr) on 17^th May, 2023
• USD : Initial Jobless Claims on 18^th May, 2023
• INR : M3 Money Supply on 17^th May, 2023
• INR : Bank Loan Growth on 19^th May, 2023

Q4 Results Today: Jindal Stainless, Jindal Saw, Quess Corp, JK Tyre & Industries, Thermax, Deepak Fertilisers & Petrochemicals Corporation, Endurance Technologies, Teamlease Services, Sterlite Technologies, Jubilant Foodworks, SKF India, Honeywell Automation India, Glaxosmithkline Pharmaceuticals, Timken India, Devyani International, Zydus Wellness, Railtel Corporation Of India, Restaurant Brands Asia, Eris Lifesciences, Sanghi Industries, MTAR Technologies, Anup Engineering, Electrosteel Castings, Hester Biosciences, JSW Ispat Special Products

Brokerage Radar:

JPM ON BK OF BARODA: OW, TP Rs 230; 4Q net income 16% ahead of JPMe, led by a beat on core PPOP & lower provisions despite an accelerated provision on airline a/c; Over last 4Qs, profits have more than doubled; Core PPOP up 26% y/y; Guidance of 1% ROA for FY24 is conservative

MS ON IOC: OW, TP Rs 100; Robust 4QF23; Core earnings ahead of Street estimates; with full-year F23 profits, book value expanded 6% vs. prior expectations of a decline.

Discounted crude supported integrated margins at 2x 5-yr avg. & helped recover past losses

UBS ON BHARTI AIRTEL: OW, TP Rs 995; Q4 slightly softer than expected; consol rev up 0.6% QoQ (+14% YoY); India mobile rev up 1% QoQ (vs 2.7% est.  driven by flat ARPUs (vs 2.4% growth est.) ; EBITDA margins remaining almost flat QoQ

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Bharat Petroleum Corporation: The company will set up an ethylene cracker project at Bina Refinery in Madhya Pradesh with a capex outlay of Rs 49,000 crore. It will set up 50 MW wind power plant for captive consumption at Bina Refinery and Mumbai Refinery in Maharashtra, with total project cost of Rs 978 crore. It will also build petroleum oil lubricants and lube oil base stock storage installations worth Rs 1,903 crore, with receipt pipelines at Rasayani in Maharashtra.

MRF: The company has signed a purchase agreement with First Energy 4 for acquisition of 19.1% stake and purchasing solar power. The acquisition will be done for a cash consideration of Rs 1,3.09 crore.

Aurobindo Pharma: The company received tentative approval from U.S. FDA for its Abacavir tablets, used in treatment of HIV infection.

KPI Green Energy: The company and its subsidiary KPIG Energia received commissioning certificates from Gujarat Energy Development Agency for solar power projects with a cumulative capacity of 10.18 MW, to be set up for five clients.

One 97 Communications: The parent company of Paytm appointed Bhavesh Gupta as president and chief operating officer.

Reliance Industries: Jio-bp, the fuel vending joint venture between Reliance Industries and bp, launched premium diesel fuel at a price below that charged by state-run oil companies.

Source: Moneycontrol, Bloomberg Quint, Investing

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