Market View 1st June 2023

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

Asian stock futures fell after Wall Street closed lower as investors looked beyond the debt ceiling to instead focus on the path for interest rates and concern in earnings reports. Contracts for benchmarks in Japan, Hong Kong and Australia all slid, adding pressure to the region’s equities, which fell more than 1% Wednesday against the backdrop of worries about Chinese growth. Manufacturing data for China due Thursday is forecast to show a further contraction in activity. Contracts for U.S. equities were flat in early Asian trading after declines on Wednesday. The S&P 500 closed 0.6% lower, narrowly clinging to a small gain for May to mark three consecutive monthly advances. The Nasdaq 100 index fell 0.7%, weighed down by a decline for Nvidia Corp. shares after a rapid rally that has tripled the stock price this year. Comments from Federal Reserve Governor Philip Jefferson signaled the central bank is inclined to keep interest rates steady in June to assess the economic outlook. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.63%. Crude declined nearly 1% below $73-mark, while Bitcoin was above 27,000-level. At 05:36 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down 0.37% at 18,595. Domestic benchmark indices ended lower as banks and financial stocks, including the HDFC twins, Axis Bank Ltd. and State Bank of India dragged. The Indian rupee closed flat against the U.S. dollar as domestic equities came under pressure and the greenback retained its strength.

Economic Calendar:

• USD : Initial Jobless Claims on 01^st June, 2023
• USD : ISM Manufacturing PMI (May) on 01^st June, 2023
• INR : Nikkei S&P Global Manufacturing PMI (May) on 01^st June, 2023
• INR : Bank Loan Growth on 02^nd June, 2023

Brokerage Radar:

MACQUARIE ON CITY UNION BK: Downgrade to Neutral Rating; Target Cut To Rs 140 from 175; Reduce Sustainable RoA 10 bps on Outlook for Reduced Growth & Lower Margin; Significant Underperformance in Growth Relative to Peers; Expect FY24 RoA To Be Contingent On Healthy Recoveries

HSBC ON TORRENT PHARMA: Upgrade To Buy Rating from Hold; Target Raised to Rs 2,030 from 1,745; Reported Q4FY23 Operationally In-line With Expectations; Healthy Performance in Key Markets like India and Brazil; Potential Levers for Operating Margin Growth: Rising Profitability of Curatio Portfolio, Revlimid Launch Potential Levers for Op Margin Growth; Resolution of US FDA GMP Issues Is Key Catalyst

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Coal India: The government will sell up to 18.48 crore shares of the company, representing a 3% stake, via an offer for sale on June 1 and 2. The floor price of the offer has been pegged at Rs 225 per share.

MOIL: The company increased prices of manganese ore grades BGF452, CHF473 and GMF569 by 10%, effective from the June 1.

Tata Motors: The company is looking to buy back external commercial bonds worth $250 million from bond holders.

HFCL: The company will spend Rs 470 crore to expand current optical fibre capacity to 33.9 million fibre kilometer per annum from 10 million fibre kilometer per annum at its manufacturing facility in Telangana.

Bank of India: The bank hiked marginal cost of funds-based lending rates by five basis points across tenures, effective June 1.

Mahindra & Mahindra: Subsidiary Mahindra Holdings completed the sale of 30% stake of Mahindra Susten to 2452991 Ontario, a wholly owned subsidiary of Ontario Teachers’ Pension Plan Board. Additional 9.99% stake of Mahindra Susten will be completed by March 31.

Laurus Labs: The company will acquire additional 7.24% stake in Immunoadoptive Cell Therapy for Rs 80 crore. Some promoters and senior management of the company will also acquire 0.54% stake in ImmunoACT for Rs 4 crore through secondary purchases. The company already holds 26.62% stake in ImmunoACT.

Vinati Organics: Bought additional 65.97 lakh shares of subsidiary Veeral Organics for Rs 6.59 crore.

 Source: Moneycontrol, Bloomberg Quint, Investing 

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