Market View 20th June 2023

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

Asian markets are poised for a mixed open on Tuesday as the rally in global equities shows signs of wavering and investors fret over China’s tepid post-pandemic recovery. Futures for Japan suggested a dip at the open following a 1% slump Monday in Europe’s main equity gauge. Contracts for U.S. benchmarks fell about 0.2% as they reopened after Wall Street was closed for a holiday Monday. Futures for Hong Kong and Australia pointed to marginal early gains. Monday’s slump in tech companies in China including Alibaba Group Holding Ltd, JD.com Inc. and Baidu Inc. underscore the pressure on the market, particularly for big tech firms. The yen strengthened slightly versus the dollar, after weakening to 142 on Monday as Japan’s loose monetary policy weighs on the currency. Meanwhile, Brent crude was trading around $76 a barrel and West Texas Intermediate was around $71. The yield on the 10-year U.S. bond was trading at 3.76%, whereas Bitcoin was below 27,000-level. At 05:26 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 0.26% at 18,826.

Economic Calendar:

• USD : Building Permits (May) on 20^th June, 2023
• USD : Initial Jobless Claims on 22^nd June, 2023
• INR : FX Reserves, USD on 23^rd June, 2023
• INR : Foreign Debt (USD) (Q1) on 30^th June, 2023

Brokerage Radar:

MS ON INTERGLOBE AVIATION: OW, TP Rs.3,126; Announced another order of 500 A320 family aircraft, which will be delivered over 2030-35. With this order, IndiGo’s pending aircraft orders reach around 1,000 aircraft; Market share & margin trends r two key drivers, both inching up

CITI ON COFORGE: Sell, TP Rs.3,980; Co reiterated their overall cc FY24 revenue guidance of 13% to 16%; Gross margin likely to improve by 50bps in FY24E, while adjusted EBITDA margins will likely be at similar levels as FY23

JPM ON BOB: OW, TP Rs 230; Market share improving; Retail loan growth faster than even prvt bks; Unique model for attracting talent from prvt sector; ROA still have levers on NIM, costs & provisions; Value crystallization in subs added trigger

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

InterGlobe Aviation/Air India: IndiGo places a 500-aircraft order with Airbus SE, surpassing the recent historical 470-aircraft order of Air India in March. IndiGo’s now 1,000-strong order book comprises a mix of A320NEO, A321NEO, and A321XLR aircraft.

HDFC: The company has sold a 90% stake in HDFC Credila to a consortium of Baring Private Equity Asia and ChrysCapital for Rs 9,060.4 crore. HDFC Credila will receive additional fresh capital of Rs 2003.61 crore as a part of the proposed transaction. The company will hold less than 10% of Credila after the stake sale.

HDFC AMC: Abrdn Investment Management will exit the company as its promoter through the sale of its 10.2% stake. It will offer 2.17 crore shares in the price range of Rs 1,800–1,892.45 apiece, representing a discount of up to 4.9% on Monday’s closing price.

ITC: The company will acquire a further stake in Mother Sparsh through 857 compulsory convertible preference shares of Rs. 10 each. Its stake in the Mother Sparsh will increase from 22% to 26.50% (on a fully diluted basis).

Timken India: Timken Singapore will offer 6.3 million shares of Timken India at the floor price of Rs 3,000 apiece, representing a discount of up to 14% on Monday’s closing price. The seller has a 90-day lockup.

IIFL Securities: SEBI barred the company from onboarding any new client for two years in respect of its business as a stockbroker. Funds from its credit balance clients’ were used to not only fund trades of its debit balance clients but also to fund its own trades, it said. However, the company plans to appeal before SAT against the SEBI order.

Sun Pharmaceuticals: The company announced Health Canada’s approval of PRWINLEVI (clascoterone cream 1%) for topical treatment of acne in patients 12 years of age and older.

Zydus Lifesciences: The company has received final approval from the United States Food and Drug Administration for Minocycline Hydrochloride Extended-Release Tablets USP, 55 mg, 65 mg, and 115 mg.

Source: Moneycontrol, Bloomberg Quint, Investing 

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