Market View 18th July 2023

View on market: Volatility Prevails, Market is searching for better value

Asian markets are set to edge lower, despite gains on Wall Street, as China’s sluggish economic recovery triggered growth forecast cuts and a warning from U.S. Treasury Secretary Janet Yellen that it could cause ripple effects across the global economy. Hong Kong and Australian futures pointed to modest losses on Tuesday, while Japanese shares will reopen after a public holiday. On Monday, the S&P 500 gained 0.4% and the tech-heavy Nasdaq 100 rose almost 1% on Monday, with Activision Blizzard Inc. advancing after Microsoft Corp. and British regulators held “productive” talks needed to clear the companies’ $69 billion tie-up. Meanwhile, Brent crude was below $79 a barrel and West Texas Intermediate was around the $74-mark. The yield on the 10-year U.S. bond was trading at 3.80%, whereas Bitcoin was above 30,000-level. At 5:33 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.26% or 52 points at 19,790.

Economic Calendar:

• USD : Retail Sales (MoM) (Jun) on 18th July, 2023
• USD : Building Permits (Jun) on 19th July, 2023
• INR : FX Reserves, USD on 21st July, 2023
• INR : Infrastructure Output (YoY) (Jun) on 31st July, 2023

Brokerage Radar:

MS ON LTI MINDTREE: OW, TP Rs 5,450; Management commentary indicated continued softness in demand, based on client conversations; it has now pulled back double-digit growth guidance for F24; Maintained margin F24 exit margin aspiration of 17-18% after a good start

CITI ON HDFC BK: Buy, Rs 2200; Beat on Benign Credit Cost & Treasury Gains; NIMs Stable; 1Q PAT growth of 30% yoy/flat qoq to Rs120bn beat Citi est. of Rs110bn due to benign credit cost at 70bps & treasury gains of Rs5.5bn; With flat core NIMs (qoq), NII grew in line at 21% yoy

International Markets

U.S & Europe:

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: Jio Financial Services to be included in Nifty 50 from July 20. It will also be included in the Nifty 50, Nifty 100, Nifty 200, and Nifty 500 indices, among others, with effect from July 20. Jio Financial will be added to 18 S&P BSE indices on July 20. This is on account of Reliance Industries being a part of the Special Pre-Open Session. After three days, it will be dropped from all the S&P BSE indices at the last traded price.

Patanjali Foods: GQG Partners acquired a 5.96% stake in the company.

Maruti Suzuki India: The automaker has added an Acoustic Vehicle Alerting System for the intelligent hybrid variants of its premium sports utility vehicle, the Grand Vitara. The company has, hence, increased the price of these variants up to Rs 4,000 with effect from July 17.

Infosys: Inked an agreement with one of its existing clients to provide artificial intelligence and automation-led development, modernization, and maintenance services. The deal is valued at $2 billion (Rs 16,411 crore) over the next five years.

Axis Bank: The National Stock Exchange and the Bombay Stock Exchange have approved the promoter reclassification request of the Specified Undertaking of the Unit Trust of India from the Promoter category to the Public Category. The Specified Undertaking of the Unit Trust of India has ceased to be a promoter of Axis Bank.

Reliance Home Finance: Aappointed Shanil Jain as the chief financial officer with effect from July 17, 2023.

Shriram Finance: Fully repaid $248.17 million (Rs 2036.30 crore) of outstanding senior secured notes.

Gujarat Fluorochemicals: The company’s subsidiary, Gujarat Fluorochemicals FZE, started commercial operations in Dubai on July 17, 2023.

Sheela Foam: Acquired a controlling stake of 94.66% in Kurlon Enterprises, maker of Kurl-on mattresses, at an equity valuation of Rs 2,150 crore. The deal is likely to be concluded by Nov. 30. It also bought a 35% stake in online furniture brand HOK-Furlenco for an equity valuation of Rs 857.14 crore. The investment should be completed by August 30.

Source: Moneycontrol, Bloomberg Quint, Investing 

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