Market View 17th November 2022

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

Stocks in Asia climbed Thursday and Treasuries held on to a rally that inverted the US yield curve by the most in four decades.  Crude slipped 2.9% as supply from pipeline carrying Russian oil to Europe resumed while demand concerns lingered. Gold changed little, while Bitcoin fell 2.3% to dip below $16,500-level. Indian benchmarks Sensex and Nifty closed with slight gains, aided by advances in banking, capital goods and industrials stocks. Rupee fell sharply against the U.S. dollar a day after a strong close on the back of disappointing trade data and forex outflows. At 6:50 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.23% to 18,437.

Economic Calendar:

• USD : Initial Jobless Claims on 17th November, 2022
• USD : Existing Home Sales (Oct) on 18th November, 2022
• INR : Bank Loan Growth on 18th November, 2022
• INR : GDP Quarterly (YoY) (Q2) on 30th November, 2022

Brokerage Radar:

BOFA ON ABB: Neutral, TP Rs 3231; Robust orders/strong backlog provide near-term visibility; Margins continue to expand on short cycle and better mix; Outlook strong; Valuations at 60 est. 2yr fwd PE (at +2SD level) prices in +ves

MS ON HAL: OW, TP Rs 3024; Improving visibility & margin guidance revised upwards; F23rev growth guidance maintained at 7-8%, & EBITDA margin guidance revised to 26-27% (vs 24-25% earlier); H2F23 margin would be lower than H1F23 due to expected increase in share of manuf rev

CITI ON HIND ZINC: Neutral, TP Rs 285; Announced 2nd interim dividend of Rs15.5/sh, cash outflow of Rs88.7bn ($1.1bn); Total dividend for FY23 thus far- Rs36.5/sh, implying a payout of 147% on est. cash outflow of $1.9bn; Trades at 7x 1-yr fwd EV/EBITDA

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Wipro: Reached an agreement with employee representatives on setting up a European Works Council (EWC). Wipro’s EWC is the first to be established by an India-headquartered company. The creation of an EWC follows a request by employees under an EU directive establishing the opportunity in companies with more than 1,000 employees across multiple European locations.

Tata Power/Union Bank of India: Tata Power Solar Systems, a subsidiary of Tata Power, has tied up with Union Bank of India to facilitate solar rooftop adoption in MSME sector.

Hindustan Zinc: The company will pay an interim dividend of Rs 15.50 per share, amounting to Rs 6,549.24 crore.

Ircon International: The company emerged as the lowest bidder for construction of balance work of Bahuti Canal Project by Water Resource Department, Madhya Pradesh government on turnkey basis.

Asian Paints: The company has entered into technology and other allied agreements with Kellogg Brown & Root for manufacturing of Vinyl Acetate Monomer in India.

Tata Motors: Thierry Bollor, the CEO of Jaguar Land Rover and independent director of Tata Motors, has resigned, effective December 31. Adrian Mardell will take over as interim CEO at Jaguar Land Rover.

Aurobindo Pharma: The U.S. FDA inspection of the company’s API non-antibiotic manufacturing facility in Pydibhimavaram, Srikakulam District, Andhra Pradesh has been completed with the reception of an establishment inspection report.

One 97 Communications: SoftBank is planning to sell 29 million shares, comprising 4.5% stake, at Rs 555-601.45 each in a block deal.

Gujarat Themis Biosyn: The company’s board will convene on Nov. 21 to consider a dividend for the current fiscal.

Balrampur Chini Mills: The company commenced commercial production of industrial alcohol at its new distillery in the Maizapur Unit, with a capacity of 320 KLPD.

Source: Moneycontrol, Bloomberg Quint, Investing

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