Market View 1st February 2023

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

Asian markets were headed for gains after the U.S. shares ended January on a high note as signs of cooling inflation encouraged risk appetite ahead of the Federal Reserve’s Wednesday meeting. Japanese, Australian and Hong Kong equity benchmarks edged higher. The S&P 500 rose 1.5% to close out its best month since October. The tech-heavy Nasdaq 100 index rallied 1.6% for its best month since July and strongest start to a year since 2001. Adani Enterprises Ltd., a member of the Indian benchmarks, successfully raised $2.5 billion (Rs 20,000 crore) in a closely watched follow-on equity sale Tuesday. The transaction provides some relief for Gautam Adani after allegations by short seller Hindenburg Research. At 5:30 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.73% at 17,882. The yield on 10-year Treasuries declined one basis point to 3.53%. Crude price rose 1.3%, while gold was up 0.3%. Bitcoin rose 1.8% to trade around $23,100-level.

Economic Calendar:

• USD : ISM Manufacturing PMI (Jan) on 01^st February, 2023
• USD : Fed Interest Rate Decision on 2^nd February, 2023
• INR : Indian Union Budget on 01^st February, 2023
• INR : Nikkei Services PMI (Jan) on 03^rd February, 2023

Q3FY23 Results Today: Redington, Britannia Industries, Tata Chemicals, Raymond, Prism Johnson, Whirlpool of India, Alembic Pharma, Lakshmi Machine Works, Jubilant FoodWorks, Mahindra Logistics, Sundram Fasteners, Ajanta Pharma, Timken India, UTI Asset Management, MAS Financial Services, Ashok Leyland, IDFC, Hindustan Copper, Gillette India, ZF Commercial Vehicle Control Systems India

Brokerage Radar:

CS ON ADANI PORTS: Upgrade to O-P from Neutral, TP cut to Rs 825; Upgrade on attractive vals (10x Sep 2024E EV/EBITDA) post recent correction & a strong underlying asset base (178 MT vol & 1H FY23 EBITDA of Rs65.5bn); Revise EPS by -1%/-9/-8% for FY23/24/25E

MS ON ACC: UW, TP Rs 1850; EBITDA weaker than expectations, led by higher opex, partially offset by a slightly better showing on realizations; Vol remain weak, growing at 3% YoY; Maintain relative UW given ltd expansion & hence growth visibility in medium term

CLSA ON CHOLA FIN: Upgrade to buy, TP raised to Rs 875; Strong loan growth across segments; Spreads largely maintained; opex remains elevated; Better valuations & strong earnings momentum prompt an upgrade; Upgrade PAT est. by 4-6% on stronger NII

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Ports and Special Economic Zone: The Israel government handed over the Haifa port to the joint venture formed by the company and its local partner Gadot Group.

Adani Power: The company and AdaniConnex mutually agreed to extend the validity of MoU for sale of Support Properties to the latter by March 31, 2023. The sale was originally to be completed by January 2023.

Reliance Industries: Reliance Consumer Products, the FMCG arm of Reliance Retail Ventures, announced a strategic partnership with Sri Lanka-based Maliban Biscuit Manufactories to strengthen its portfolio in the biscuit segment.

Vodafone Idea: The board approved preferential issue of 1,600 optionally convertible debentures of Rs 10 lakh each to ATC Telecom Infrastructure.

Tata Motors: TPG subscribed to 3.75 crore compulsorily convertible preference shares of the face value of Rs 1,000 each in Tata Passenger Electric Mobility for an aggregate consideration of Rs 37.50 crore as the second tranche of securities subscription agreement dated Oct. 12, 2021.

Punjab National Bank: The state-run lender hiked lending rates by 10 basis points across tenures with effect from FFeb. 1, 2023.

India Infrastructure Finance Co.: The board approved raising Rs 2,500 crore via issuance of non-convertible debentures on private placement basis.

Valiant Organics: The board allowed material subsidiary of the company Valiant Laboratories to raise funds via the IPO route

Source: Moneycontrol, Bloomberg Quint, Investing

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