Market View 21st April 2023

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

Asian equity markets were poised for declines on Friday after technology stocks dragged Wall Street and bonds rose on data showing softening labour market, housing and a gauge of business outlook. Futures for equity benchmarks in Australia, Japan and Hong Kong all signal markets will open lower. S&P 500 futures were little changed as of 8:22 a.m. Tokyo time, while the S&P 500 fell 0.6%. Nasdaq 100 futures rose 0.1% while the Nasdaq 100 fell 0.8%. Hang Seng futures fell 0.6%. S&P/ASX 200 futures fell 0.5% and Nikkei 225 futures fell 0.2%. Meanwhile, U.S. stocks declined as the labour market, housing and a business outlook measure showed signs of softening. The S&P 500 fell 0.4%, while the tech-heavy Nasdaq 100 declined 0.2% by 12:42 p.m. in New York. The yield on 10-year Treasuries declined six basis points to 3.53%. Crude price fell 2.6%, and gold price gained 0.5%. Bitcoin lost 2.2% to trade around $28,600 level. On the other hand, domestic benchmark indices—the Sensex and Nifty—closed higher, on Thursday, for the first time this week, supported by gains in media, consumer durables and private banks stocks. The Indian rupee bounced back from its three-day decline against the U.S. dollar as domestic equities ended in green and crude prices softened. At 6:12 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.15% at 17,692.

Economic Calendar:

• USD : New Home Sales (Mar) on 25^th April, 2023
• USD : CB Consumer Confidence (Apr) on 25^th April, 2023
• INR : Deposit Growth on 21^st April, 2023
• INR : Bank Loan Growth on 21^st April, 2023

Q4 Results Today: Reliance Industries, Hindustan Zinc, Tejas Networks, Tanfac Industries, Wendt (India), Rajratan Global Wire

Brokerage Radar:

MS ON ICICI PRU LIFE: OW, TP Rs 600; VNB 14% ahead of est. due to much stronger APE growth in non-linked segment owing to changes in Union Budget; A more durable +ve was stronger pick up in retail protection; VNB margin was lower; Trim VNB forecasts for F2024-25

CLSA ON HCL TECH: O-P, TP Rs 1200; Broadly in-line 4Q23 print & FY24 guidance, & a healthy dividend yield; Deal wins were steady with a ‘near all-time high’ pipeline that is skewed towards US$500m+ deals. Growth in service biz could stay ahead of peers in FY24CL

CLSA ON TATA COM: Buy, TP cut to Rs 1550; Data biz rev up 11% YoY but Ebitda miss with jump in staff costs; Management’s focus on data biz has led to sustained double-digit data rev growth.Also, FY23 cash generation at Rs25.4bn was up 16% YoY Val reasonable at 8.6x FY24CL EV/Ebitda

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Rail Vikas Nigam/Siemens: The consortium of Rail Vikas Nigam and Siemens received two separate orders from Gujarat Metro Rail, for phase 1 of Surat Metro and phase 2 of Ahmedabad Metro. Siemens share in the order is Rs 678 crore.

Suven Pharmaceuticals: The Competition Commission of India approved acquisition of 76.1% stake of the company by Berhyanda.

Vodafone Idea: The company appointed Kumar Mangalam Birla as additional director with effect from April 20, 2023.

India Grid Trust: International Finance Corporation subscribed to a listed NCD issuance of the company, worth Rs 1,140 crore.

Cyient: The company appointed Prabhakar Atla as chief financial officer, with effect from April 21, 2023.

Laxmi Organic Industries: The board approved the proposal to raise funds through equity and/or debt, as well as borrow Rs 2,000 crore.

Finolex Cables: The company will set up a plant in its Urse facility in Pune at a cost of Rs 290 crore to produce optical fibre preforms with initial capacity of 100 tonnes.

Greenpanel Industries: The company resumed manufacturing operations at MDF plant in Rudrapur, Uttarakhand on the April 19. The plant was closed on April 1 for routine maintenance.

PVR: The name of the company has been changed to PVR-Inox with effect from April 20.

Source: Moneycontrol, Bloomberg Quint, Investing

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