Market View 18th January 2023

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

U.S. stocks struggled to rise as earnings outlook and Fed’s prospective plans weighed on investor sentiments. The S&P 500 changed little by mid-day, while Nasdaq 100 rose 0.2%. Meanwhile, the yield on 10-year Treasuries advanced three basis points to 3.53%. Crude price fell 0.5%, while gold declined 0.6%. Bitcoin rose 0.3% to trade around the $21,200-level. Indian benchmark indices closed higher after opening with steady gains, with 17 out of 20 sectoral indices compiled by BSE ending in green. Rupee continued to fall against the U.S. dollar tracking recovery in the greenback and firm crude prices.

Economic Calendar:

• USD : Retail Sales (MoM) (Dec) on 18th January, 2023
• USD : PPI (MoM) (Dec) on 18th January, 2023
• INR : Infrastructure Output (YoY) (Dec) on 31st January, 2023

Q3FY23 Results Today: IndusInd Bank, Alok Industries, CCL Products (India), Central Bank of India, Oracle Financial Services Software, Persistent Systems, PSP Projects, Rallis India, Shemaroo Entertainment, Surya Roshni

Brokerage Radar:

CLSA ON ICICI PRU: Buy, TP raised to Rs 620; 3Q mixed, with APE down 6% YoY but VNB margin improvement continuing to +vely surprise; Credit life and annuity continue to drive growth & ICICI Bank retains its selective approach (down 50% YoY).

MS ON BOI: OW, TP Rs 125; F3Q23 saw 1-off interest income on IT refund, which was used to up-front provisions scheduled for F4Q23; PBT ex 1-offs grew 57% QoQ but was 5% below MSe.; Expect sharp 23`uptick in PAT run-rate from Rs10bn to Rs18-20bn starting next qtr

JEFFERIES ON ICICI LOMBARD: Buy, TP Rs 1620; Delivered a healthy 17% rise in premium led by health-insurance & fire; While profit growth of 11% YoY to Rs3.5bn missed est., it was due to upfront charge-off of sales costs; Stake sale is an overhang

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

ITC: The company will acquire 100% stake of Sproutlife Foods for a cash consideration. Initially, Rs 255 crore will be invested to acquire 47.5% stake till March 2025.

Rail Vikas Nigam: The company has emerged as the lowest bidder for two projects by under Surat Metro Rail Project Phase-I and Ahmedabad Metro Rail Project Phase-II worth Rs 673.80 crore and 384.30 crore, respectively.

Adani Enterprises/Ashok Leyland: The company has signed an agreement with Ashok Leyland and Canada’s Ballard Power for a pilot project to develop and launch hydrogen fuel cell electric truck in 2023.

REC: The entire shareholding of WRSR Power Transmission with REC Power Development & Consultancy, a subsidiary of the company, has been transferred to Adani Transmission.

Glenmark Pharmaceuticals: The company will divest select brands and sub-brands from its dermatology segment for India and Nepal territories to Eris Oaknet Healthcare for Rs 340.48 crore.

Jammu & Kashmir Bank: The board will meet on Jan. 23 to consider raising Tier-I capital via employee stock purchase scheme.

Coforge: Life Insurance Corporation increased its stake in the company to 5.03% from 4.98%.

Tata Metaliks: Reported profit at Rs 9.48 crore for December FY23 quarter, falling 74% year-on-year dented by weak operating performance. Input cost and finance cost hit bottomline. However, revenue from operations grew by 14.5% YoY to Rs 790.23 crore for the quarter.

Source: Moneycontrol, Bloomberg Quint, Investing

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