Market View 18th April 2023

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

Asian markets were set for another cautious open on Tuesday ahead of key economic data from China and after stocks on Wall Street eked out small gains late in the session. Futures pointed to a small advance for Japanese equities while Hong Kong and Australia looked set for slight declines. On Monday, the S&P 500 erased losses in afternoon trading and the tech-heavy Nasdaq 100 underperformed major equity benchmarks. The S&P 500 fell 0.2% Friday, trimming its gain for the week to 0.8%, while The Nasdaq 100 managed to squeeze out a 0.1% gain over the five days, as policy-sensitive technology names like Microsoft Inc. and Apple Inc. dragged on the benchmark. Focus in Asia will be on China and the strength of its economic recovery. Figures on Tuesday are projected to show gross domestic product expanded 4% in the first quarter from a year earlier, well below the government’s target for full-year growth of around 5%. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.59%. Crude prices traded above $84-mark, while Bitcoin was below 30,000-level. At 6:30 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.05% at 17,755. Benchmark indices—Sensex and Nifty—ended their nine-day long rally as weak quarterly results from IT major Infosys Ltd. weighed them down. Indian rupee lost its shine against the U.S. dollar, tracking weakness in domestic equities and a stronger greenback overseas.

Economic Calendar:

• USD : Building Permits (Mar) on 18^th April, 2023
• USD : Existing Home Sales (Mar) on 20^th April, 2023
• INR : M3 Money Supply on 19^th April, 2023
• INR : Federal Fiscal Deficit (Mar) on 28^th April, 2023

Q4 Results Today: ICICI Lombard General Insurance Company, Accelya Solutions India, Schaeffler India, Tata Coffee, Crisil

Brokerage Radar:

MS ON SBI CARDS: OW, TP Rs 925; Industry spends growth moderated to 28% YoY in March (vs 38% in Feb); SBIC grew slower (at 21%); F23 market share stood at 18.2%; largely steady in 2H; SBIC market share in cards in force down MoM, with 13% share in incremental cards in March

CLSA ON ADANI PORTS: Buy, TP Raised to Rs 790; Ports & logistics: good end to FY23 but with a traffic miss; Focus on business to return as group concern recedes; ADSEZ has recalibrated its lofty FY22- 25 Capex plans & is focused on bringing down net debt/Ebitda to 2.5x vs 3.5x now

JEFFERIES ON L&T: Buy, TP Rs 2650; Investors appear concerned about pre-election impact on order flow & sh price; However, co’s order flow rose by double-digits in last 3 pre-election-yr periods, despite embargo on Centre’s ordering activity 6 months prior to elections

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Jubilant FoodWorks: Coca Cola India acquired 15% stake in the company’s associate Hashtag Loyalty, which raised Rs 104.68 crore at a pre-money valuation. The company’s stake in Hashtag has been reduced to 29.75% from 35%.

Bank of Maharashtra: The bank hiked lending rates for tenors across the board by 10 basis points, with effect from April 15, 2023.

Kolte-Patil Developers: The company allotted zero-coupon debentures worth Rs 206.5 crore with a tenure of 10 years to Japan’s Marubeni Corp. The funds will be used towards the company’s general corporate purposes.

Subex: Vinod Kumar Padmanabhan has requested an early retirement from the office of managing director and chief executive officer. He will step down from the post at close of business hours on May 1, 2023. Nisha Dutta will occupy the position of chief executive officer for one year, effective May 2, 2023.

IIFL Finance: The company will consider a proposal to raise funds via non-convertible debentures through private placement, as well as the financial results for three months and year ended March 2023.

Source: Moneycontrol, Bloomberg Quint, Investing

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