Market View 19th January 2023

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

Stocks in Asia were poised to decline Thursday after US shares fell and the treasuries rallied. Shares edged lower in Australia and a gauge of US-listed Chinese companies slumped 2.5%. At 5:51 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.45% to 18,139.5. U.S. stocks extended losses as economic data sparked concerns over growth outlook. The S&P 500 closed Wednesday 1.6% lower, the biggest decline in a month. The yield on 10-year Treasuries declined to 3.37%. Crude price rose declined by nearly a percent. Bitcoin broke its rally to fall below $21,000-level. Indian benchmark indices maintained their upward trend for the second day in a row, with the Sensex reclaiming the 61,000-mark. Rupee snapped its two-day downfall against the U.S. dollar to close at its highest level since Dec. 2, 2022.

Economic Calendar:

• USD : Initial Jobless Claims on 19th January, 2023
• USD : Existing Home Sales (Dec) on 20th January, 2023
• INR : Infrastructure Output (YoY) (Dec) on 31st January, 2023

Q3FY23 Results Today: Hindustan Unilever, Asian Paints, AU Small Finance Bank, Can Fin Homes, L&T Technology Services, Happiest Minds Technologies, Havells India, Hindustan Zinc, Anant Raj, IIFL Wealth Management, IndiaMART InterMESH, ICICI Securities, Mphasis, Polycab India, PVR, Sterling and Wilson Renewable Energy

Brokerage Radar:

UBS ON TITAN: Downgrade to Neutral, TP cut to Rs 2600; However, in long term, expect Titan’s jewellery segment growth to remain strong; Already trading at 56x FY24E earnings as consensus is factoring 17% CAGR rev growth, therefore, don’t see any further upside potential for stk

MS ON INDUSIND BK: OW, TP Raised to Rs 1525; Both core PPoP (+25% YoY, 5% above MSe) & credit costs (at 160bps; 6bps below MSe) surprised +vely; -Ves were further moderation in SA ratio (partly cyclical) & slower MFI growth pickup

MACQUARIE ON SUN PHARMA: O-p, TP Rs 1275; For Dec’22, Ilumya unit sales in US were down 6% MoM but up 29% YoY; Cequa market share continues to inch up in dry eye market, with 4.6% market share in Dec’22 vs 3.8% in Mar’22; Winlevi TRx growth accelerated, seeing 8% MoM growth

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Enterprises: The company filed the RHP for its Rs 20,000-crore follow-on public offering, with floor price at Rs 3,112 apiece and cap price at Rs 3,276 per share. The company also announced a discount of Rs 64 per share for retail buyers. Vedanta: The company will acquire the debt-laden Meenakshi Energy for Rs 1,440 crore.

State Bank of India: The bank raised Rs 9,718 crore through 15-year infrastructure bonds at 7.7% coupon rate.

Aurobindo Pharma: The company’s subsidiary APL Health Care received Form 483 with two observations from U.S. FDA following an inspection of its unit I and III, an orals and derma manufacturing facility in Jadcherla, Telangana.

Coal India: In a coal ministry review, the company was found to have produced 513 million tonnes of coal so far in fiscal 2023, and is expected to surpass the target of 700 million tonnes for the current fiscal. The ministry has pegged the production target for the company during 2023-24 at 780 million tonnes.

Kotak Mahindra Bank: The board in its meeting scheduled on Jan. 21 will consider raising funds via non-convertible debentures during the remaining period of FY 2022-23, and by the way of NCDs, bonds or other debt securities during FY24.

Welspun Enterprises: The board of the company has approved voluntary liquidation of subsidiary Welspun Natural Resources to streamline the structure and reduce administrative overheads of the group.

Mahindra Lifespaces Developers: The company has been selected to redevelop two adjacent residential societies in Santacruz West, Mumbai. The project has a revenue potential of Rs 500 crore.

Wipro: The company opened Wipro-AWS Launch Pad Center in Toronto, Canada.

 Source: Moneycontrol, Bloomberg Quint, Investing

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