Market View 21st December 2022

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

Equities in Asia were mixed on Wednesday morning as Australian shares and Hong Kong equity futures advanced. Japanese shares fell, as did a gauge of US-listed Chinese companies. US share futures climbed after the S&P 500 rose. The S&P 500 rose 0.2%, while the the Nasdaq 100 was mostly unchanged. The yield on 10-year Treasuries advanced 10 basis points to 3.68%. Crude fell 0.2%, while gold futures rose 1.7%. Bitcoin increased 1.5% to trade around $16,800-level. India benchmark gauges closed marginally lower after paring losses from a volatile session. The market breadth was skewed in the favour of bears. Overseas investors in Indian equities turned net buyers on Tuesday, after a three-day selling spree. Foreign portfolio investors mopped up equities worth Rs 455.9 crore, while domestic institutional investors remained net buyers for the tenth day, buying equities worth Rs 494.7 crore, according to NSE data. Rupee depreciated against U.S. dollar after a volatile open, closing lower despite paring some losses against the greenback. At 6:23 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — was down at 0.13% to 18,450.5.

Economic Calendar:

• USD : GDP (QoQ) (Q3) on 22nd December, 2022
• USD : Initial Jobless Claims on 22nd December, 2022
• INR : Federal Fiscal Deficit (Nov) on 30th December, 2022
• INR : Foreign Debt (USD) (Q3) on 30th December, 2022

Brokerage Radar:

INVESTEC ON CITY UNION BANK: Maintain Buy, TP Rs 240; Divergence of ₹260 cr in FY22; no material impact on estimates. Bank has enough headroom to provide & yet meet our estimates for FY23

JPM ON L&T: Maintain OW, TP Rs 2200; L&T/CPPIB together will divest 51%/49% stake in L&T IDPL. L&T IDPL houses 14 road projects and one transmission project; Assets have a negligible contribution to L&T’s P&L

JEFFERIES ON L&T: Buy, TP Rs 2455; Sold 100% stake in L&T IDPL, gor Rs60 bn EV; Rs27.2 bn is gross equity receipts with L&T’s 51% share implying Rs13.9 bn (Rs10/sh) receipt; Over next 12-36 mths, believe Nabha Power & Hyderabad Metro incremental ones being targeted

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Dabur India: Entities of Burman family, who are part of the majority shareholders of the company, have sold approximately 1% shares through a block deal on Dec. 20.

Bharti Airtel: The company entered an agreement to acquire 8% share in technology start-up Immensitas Pvt. Ltd. (Lemnisk).

Sterling and Wilson Renewable Energy: Promoters Shapoorji Pallonji Group and Khurshed Yazdi Daruvala will exercise the oversubscription option for their stake sale as the first day of the issue received 153% demand from the non-retail category.

Uno Minda: The company entered a technical license agreement with Korea’s Ascentec to strengthen its advance automotive sensors product portfolio.

Shyam Metalics and Energy: The company will conclude the acquisition of Mittal Corp. to strengthen its metal portfolio by entering the stainless steel/wire rod and bar mill business.

GAIL (India): The company raised 1,575 crore via issuance of non-convertible debentures on private placement basis to refinance existing borrowings and/or fund its capital expenditure.

Union Bank of India: The bank subscribed 2.01 crore equity shares of Star Union Dai-Ichi Life Insurance Company offered under rights issue by the company at Rs 25 per share, aggregating to Rs 50.20 crore.

City Union Bank: The Reserve Bank of India discovered divergence in additional gross NPA for the fiscal ended March 2022, amounting to Rs 259 crore.

Mindspace Business Parks REIT: The company issued commercial papers worth Rs 100 crore to raise funds to be utilised towards working capital requirements its asset SPVs.

Jubilant Ingrevia: The company issued commercial papers worth Rs 150 crore on Dec. 20, 2022.

Source: Moneycontrol, Bloomberg Quint, Investing

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