Market View 17th October 2022

View on market: Volatility Prevails, Stay put with quality business

Asian equities fell and major currencies appreciated against the dollar in a cautious open to the week after further weakness on Wall Street and a defiant message to the world from China’s Communist Party congress. Stocks declined in Japan, Australia and South Korea while futures for Hong Kong fell. Contracts for the S&P 500 and Nasdaq 100 rose after tumbling Friday, when Treasury yields climbed as year-ahead inflation expectations increased. U.S. Yields fell slightly at the open in Asia. At 6:35 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.96% to 17,047.5. Oil clawed back some losses after a weekly slump as fears over an economic slowdown continue to weigh on the outlook for demand. Gold was little changed.

Economic Calendar:

• USD : Existing Home Sales (Sep) on 20th October, 2022
• USD : CB Consumer Confidence (Oct) on 25th October, 2022
• INR : M3 Money Supply on 19th October, 2022
• INR : Federal Fiscal Deficit (Sep) on 31st October, 2022

Q2FY23 Result Today: ACC, Can Fin Homes, Craftsman Automation, Heidelbergcement India, PVR, Tata Coffee, Tata Metaliks, RPG Life Sciences, Spandana Sphoorty Financial, Indowind Energy, Bank of Maharashtra, Star Housing Finance, Thangamayil Jewellery

Brokerage Radar:

MS ON ICICI PRU LIFE: OW, TP cut to Rs 650; VNB beat due to favourable APE mix shift; management sees upward bias to VNB margin; Expects retail protection APE to come to growth in 2HF23; Cut TP due to lower EV & higher COE

UBS ON BAJAJ AUTO: Neutral, TP Rs 4000; Q2 EBITDA beat UBS-e/ consensus by 9%/6% driven by superior mix in exports & one-offs; Export ASP up 12% QoQ/ 22% YoY driven by higher proportion of Pulsar/ Dominar/ KTM exports & better USD realisation

NOMURA ON L&T INFOTECH: Reduce – TP Rs 3690; Modest beat in 2QFY23; Robust deal wins & headcount addition +ve; Revenue growth beats consensus; strong outlook for 3QFY23F; EBIT below expectations; will likely remain range-bound in the near-term

News Update:

Tata Power: Suffered a cyberattack on its IT infrastructure, impacting some of its systems. The company has taken steps to retrieve and restore the systems and all critical operational systems are functioning.

Tata Steel: Tata Steel said it is actively engaged with the U.K. government for financial support for its business there, amid reports of that the company is looking to divest their steel business in the country, PTI reported.

Adani Ports and Special Economic Zone: Adani Agri Logistics, a wholly-owned subsidiary of Adani Logistics, has received a letter of award from the Food Corporation of India, to develop and operate silo complexes at Kanpur, Gonda and Sandila in Uttar Pradesh and Katihar in Bihar.

Bharat Petroleum Corporation: Aimed to convert its 7,000 conventional retail outlets into energy stations providing multiple fueling options including EV charging facility.

State Bank of India: Hiked MCLR by 25 basis points across tenors. The revised rates will come into effect from Oct. 15, 2022.

HDFC: NCLT has ordered the company to hold shareholders meeting on Nov. 25, 2022, to approve the merger deals of wholly owned subsidiaries HDFC Investments and HDFC Holdings with and into the company, and HDFC with and into HDFC Bank.

L&T Finance Holdings: Market regulator SEBI approved sale of L&T Investment Management and L&T Mutual Fund to HSBC Mutual Fund.

IRB Infrastructure Developers: The company will transfer Vadodara Kim Expressway Project to an InvIT arm, following which, it will receive Rs 342 crore as against sponsor contribution and debt of Rs 955 crore will reduce from its consolidated debt.

Authum Investment & Infrastructure: Acquired debt-ridden Reliance Commercial Finance, a wholly owned subsidiary of Reliance Capital, for Rs 1 crore.

 

*As per 17^th October.

Asian markets:

 

ADR Watch:

 

Commodities & Currency:

 

FIIs & DIIs:

 

 Source: Moneycontrol, Bloomberg Quint, Investing  

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