Market View 20th April 2023

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

Asian markets are primed for a steady opening while U.S. equity futures fell after stocks closed little changed on Wall Street and a gauge of volatility slid to the lowest level in more than a year. Contracts for benchmarks in Japan and Australia were lower while those for Hong Kong’s Hang Seng Index rose slightly. The cautious mood in the U.S. pushed the CBOE VIX index of volatility to the lowest since 2021. First-quarter U.S. earnings were mixed. Tesla Inc. missed profit expectations while International Business Machines Corp. and Morgan Stanley beat forecasts. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.59%. Crude prices traded at $83-mark, while Bitcoin was trading around 28,000-level. At 5:35 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.24% at 17,695.5. Domestic benchmark indices—the Sensex and Nifty—declined three days in a row, with I.T., media, and PSU banking stocks leading the fall. The Indian rupee declined against the U.S. dollar for the third session in a row, as domestic equities continued to remain under pressure and the greenback grew stronger.

Economic Calendar:

• USD : Initial Jobless Claims on 20^th April, 2023
• USD : Existing Home Sales (Mar) on 20^th April, 2023
• INR : Deposit Growth on 21^st April, 2023
• INR : Bank Loan Growth on 21^st April, 2023

Q4 Results Today: HCL Technologies, ICICI Prudential Life Insurance Company, Reliance Industrial Infrastructure, Sterling and Wilson Renewable Energy, Cyient, Oriental Hotels, Rajnish Wellness

Brokerage Radar:

MS ON AU SMALL BK: OW, TP Rs 835; RBI grants Authorized foreign dealer licence

View this +vely, & think will boost fee income over medium term; Project RoE should improve to 17% by F25, from 15% in F23; Strong earnings compounding should support val

CLSA ON ITC: Buy, TP Raised to Rs 430 (on roll fwd); Rerating catalysts playing out & corporate action awaited (like a demerger of the hotels biz, which is key to watch for)

A 4% dividend yield also provides downside support; Increase FY24-25 earnings by 2%-4%

CITI ON ISEC: Sell, TP Rs 440; Weak 4Q; cost pressure monitorable amidst market pangs; While appreciate focus on diversifying its rev profile, near-term cost pressure & market led pangs likely to weigh; Traction in distribution and wealth are key silver linings

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Tata Motors: Jaguar Land Rover, the luxury automotive subsidiary of Tata Motors, said in a statement it will invest £15 billion (Rs 1.53 lakh crore) over the next five years for an electric-first future.

Ultratech Cement: Commissioned 2.2 million tonnes per annum capacity brownfield expansion at its grinding unit in Patliputra, Bihar, taking the overall capacity of the unit to 4.7 million tonnes per annum.

NBCC (India): Received an order worth Rs 207.92 crore for planning, designing and execution of disable accessible platform and providing tertiary treatment plant works for Public Works Department, Puducherry.

Equitas Small Finance Bank: The lender received AD-I licence from RBI approval to act as authorised dealer for foreign exchange.

HDFC: The mortgage lender’s subsidiary HDFC Capital Advisors will acquire additional 1.8% to 2.4% stake in Loyalie IT-Solutions for Rs 89.81 per compulsorily convertible preferential share, taking its overall shareholding to 9% to 9.6%.

ITC: Signed the transaction documents, including the Securities Subscription & Purchase Agreement and the Shareholders Agreement, to acquire entire stake of Sproutlife Foods. The deal is to be closed in three to four years.

Adani Ports and Special Economic Zone: Board of Adani Ports and Special Economic Zone will meet on April 22 to consider first and a partial buyback of certain of its debt securities denominated either in Indian rupees or US dollar during the current financial year.

Source: Moneycontrol, Bloomberg Quint, Investing

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