Market View 20th November 2023

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

U.S. stocks wavered on Friday after a $2.7 trillion rally in November that was fueled by bets the Federal Reserve will end its hiking cycle to prevent an economic recession. The dollar erased its 2023 advance, reports Bloomberg. The S&P 500 index and Nasdaq 100 fell by 0.01% and 0.25%, respectively, as on 10:43 p.m. New York time. The Dow Jones Industrial Average declined by 0.08%. Brent crude was trading 2.71% higher at $79.52 a barrel. Gold also gained 0.10% to trade at $1,982.95 an ounce.

Economic Calendar:

• USD: Existing Home Sales (Oct) on 21^st November, 2023
• USD: FOMC Meeting Minutes on 22^nd November, 2023
• INR: FX Reserves, USD on 24th November, 2023
• INR: GDP Quarterly (YoY) (Q2) on 30th October, 2023

Brokerage Radar:

MS on SBI Cards: OW. TP Rs 950 Impact of RBI measures on Tier 1 ratio will not constrain biz, while the impact on cost of funds should be manageable. Growth in receivables is lower than industry See a lower risk of SBI Cards having to slow unsecured credit growth more sharply.

CITI On NMDC: Buy, TP raised to Rs 190 from Rs 160 NMDC trades at 3.8x FY25 EV/EBITDA on an implied iron ore price of US$115/t (spot $130), global peers trade at 4.5- 6x. NMDC offers FCF yield of ~8.5%

BoFA Sec on Bajaj Fin: Buy, TP Rs 8845 BAF temporarily suspends new EMI cards issuance BAF also confirmed that it does not impact its customer acquisition engine meaningfully and it will continue to offer financing to new/existing customers at dealer stores in normal course of biz

International Markets

 U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Larsen & Toubro: Qatar’s General Tax Authority has imposed a penalty of Rs 111.31 crore for 2016–2017 and Rs 127.64 crore for 2017–2018. An appeal has been filed against the levy of this penalty, as the company believes it is arbitrary and unjustified.

RITES: RITES emerged as the lowest bidder in two tenders from CFM Mozambique. Out of the two tenders, one is for the supply of 10 diesel electric locomotives with incidental service of Rs 3.7 crore, and the other is for the supply of 300 high-side wagons.

Bajaj Finance: The company stopped sanctioning and disbursing loans under its two lending products, namely, ‘eCOM’ and ‘Insta EMI Card’, until the deficiencies observed by the RBI were rectified to their satisfaction.

Dalmia Bharat Sugar: The company informed that there is disruption of operations at Kolhapur and Ninaidevi units in Maharashtra due to farmers’ agitation. Consequentially, there could be a material impact. The company said it is taking all possible steps to restore normalcy.

SBI Cards and Payment Services: The capital adequacy is expected to decline by 400 basis points on account of the RBI’s revised credit risk weights. The bank is well capitalised as of now and well above the regulatory guideline of 15%. It has enough sources and a diversified lender base to manage its impact, and it doesn’t foresee a significant impact on the cost of funds during this fiscal.

Exide Industries: The company settled the chloride trademark dispute with the UK’s Vertiv Group and India’s Vertiv Energy. VCGL and VEPL shall not use the said ‘CHLORIDE’ mark in India, either directly or indirectly, and shall withdraw all their claims over this mark in favour of Exide.

Kalyan Jewellers: Unit Kalyan Jewellers FZE acquired the remaining 30% stake in Kalyan Jewellers LLC, Oman, on Nov. 16. Kalyan Jewellers LLC, Oman, has become a wholly owned subsidiary of Kalyan Jewellers FZE.

Source: Moneycontrol, Bloomberg Quint, Investing 

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