Market View 20th March 2023

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

After a frenetic weekend in finance the street expects small but mostly positive moves in markets on Monday, with U.S. After a frenetic weekend in finance the street expects small but mostly positive moves in markets on Monday, with U.S. equity futures rising and a dollar gauge weakening slightly. Two weeks featuring multiple U.S. bank failures followed by more problems at Credit Suisse had added to the rising conviction that global economies will struggle. However, Swiss investment bank UBS announced the takeover of its beleaguered compatriot Credit Suisse in a deal backed by the Swiss government. UBS will pay CHF 3 billion ($3.2 billion) in an all-stock deal to acquire Credit Suisse, according to a Bloomberg report. Credit Suisse’s market capitalisation stood at $8 billion as of close on March 17. Futures for the S&P 500 rose about 0.4% after the index dropped more than 1% on Friday, dragged down by the financial sector. Contracts for the Nasdaq 100 also gained about 0.4% after the gauge notched its best week since November with a jump of 5.8%, despite a slump Friday. Also, investors continue to debate whether the Federal Reserve will deliver another quarter-point hike or pause at its March 21-22 meeting. Meanwhile, the yield on 10-year treasuries were trading at 3.50%. Crude prices were trading around $73-mark, while Bitcoin was around 28,000-level. At 6:16 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.68% at 17,045. For a second consecutive session, the Indian benchmark indices, Sensex and Nifty, closed higher after braving volatility for the day. The Indian rupee ended in green against the U.S. dollar on the last day of the week, ending a five-day losing streak, on the back of rise in domestic equities.

Economic Calendar:

• USD : Existing Home Sales (Feb) on 21st March, 2023
• USD : Fed Interest Rate Decision on 22^nd March, 2023
• INR : Bank Loan Growth on 24^th March, 2023
• INR : Infrastructure Output (YoY) (Feb) on 31^st March, 2023

Brokerage Radar:

MS ON PB FINTECH: OW, TP Rs 705; Superior quality of Biz Originated relative to agency channel is a key differentiator; increasing strength of franchise should help keep market spend growth much lower; Reiterated its profit guidance of Rs.1,000 cr. for FY27 & adj. EBITDA break-even in Q4

GS ON GODREJ CONS: BUY, TP Rs 947; Turnaround is likely to gather momentum as reset phase is behind; taken multiple tough decisions over past 12 months for improving long-term growth; most of these initiatives caused near-term pain to FY23 earnings.

JPM ON TCS: UW, TP Rs 3000; Surprising change at top in an uncertain year with slowing momentum; Krithi has spent 38 yrs at TCS across different roles & is known a dedicated co man that should keep strategies largely unchanged

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Samvardhana Motherson International: Sumitomo Wiring Systems to sell approximately 3.4% stake or 23 crore shares via JPMorgan, reports Bloomberg. The size of the deal will be around $195 million (approximately Rs 1,613-crore) at a floor price of Rs 69.90 apiece.

Patanjali Foods: Stock exchanges BSE and National Stock Exchange have frozen shareholding of promoters and promoter group in the company as it could not increase public shareholding to the required 25% within the stipulated deadline. The action, which affected 29.26 crore shares, will remain in effect till the mandated public shareholding levels are met.

Ceat: Ceat Specialty, a division of Ceat Tires, entered into an agreement with CNH Industrial to supply agricultural radial tires for their machines being produced in Brazil and Argentina, the company said in a statement.

ITC: ITC Infotech India, a wholly owned subsidiary of the company, incorporated a subsidiary in Germany under the name ITC Infotech GmbH.

BLS International: BLS E-Services, a subsidiary of the company, increased its stake in Zero Mass to 90.42%.

Federal Bank: The board of the bank will meet on March 18, 2023, to consider raising Rs 1,000 crore via tier-II bonds on a private placement basis.

JSW Energy: The Finance Committee of the company approved allotment of 25,000 non-convertible debentures of Rs 1 lakh each to raise Rs 250 crore.

Godawari Power & Ispat: The board of directors will meet on March 18 to consider a share buyback programme.

Sarda Energy & Minerals: The company received consent to operate from Chhattisgarh Environment Conservation Board for expansion in existing rolling mill from 1.8 lakh tonnes per annum to 2.5 lakh tonnes per annum.

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