Market View 21st March 2023

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

Asian markets advanced following the gains on Wall Street as immediate concerns over the strength of the global financial system dissipated. All 11 groups in the index rose as regulators worldwide rushed to shore up market confidence. Contracts for the gauge and the Nasdaq 100 were steady in early Asian trading. Banks enjoyed relief after days of turmoil that triggered last week’s 15% rout in an index of U.S. lenders. UBS Group AG rose as investors focused on the upside of its Credit Suisse Group AG takeover. Investors have increased bets on a quarter-point hike as the recent financial turmoil has spurred speculation on a slower pace of tightening from major central banks worldwide. Meanwhile, the yield on 10-year treasuries were trading at 3.48%. Crude prices were trading around $73-mark, while Bitcoin was around 27,000-level. At 5:50 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.49% at 17,107.5. Indian benchmark indices, Sensex and Nifty, snapped their two-day rally to close in the red, dragged by losses in metal and PSU stocks. The Indian rupee pared opening gains to close lower against the U.S. dollar as investors remained cautious in the face of a global banking crisis and an upcoming FOMC meeting.

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

CLSA ON RIL: Buy, TP Rs 2970; A paltry $9bn is being ascribed to 100% expansion in retail selling space + progress in ecom & 5G investments; Ramp-up of its FMCG biz, launch of Airfiber to catapult wireless broadband penetration & IPO of Jio &/or retail are possible large triggers

JEFFERIES ON INDIAN FINANCIALS: While equities & global bonds saw pressure off late, local bond mkt is stable; Post correction, vals of some are near/below Covid lows

ICICI Bank, IIB, SBI are top bank picks; BAF, Chola among NBFCs

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Enterprises: The company clarified that the green PVC project in Mundra has been held up on account of financial closure pending with the lenders. The same is expected to be cleared within six months, it said in a statement.

Indian Oil Corporation/NTPC: Indian Oil Corporation and NTPC Green Energy, a wholly owned subsidiary of NTPC, will form a joint venture for setting up of renewable energy power plants to meet round the clock power requirement of new projects of the former’s refineries.

Uno Minda: The company will acquire 81.69% stake in Kosei Minda Aluminum Company and 49.9% stake in Kosei Minda Mould from joint venture partner Kosei, Japan in share swap deals to consolidated four-wheeler alloy business.

Sterling and Wilson Renewable Energy: The company emerged as the successful bidder for a package comprising of four blocks of 300 MW each in the proposed 1200MW Solar PV Project of NTPC Renewable Energy at Khavda RE Power Park, Rann of Kutch. The total bid value, including operation and maintenance for three years, will be Rs 2,100 crore.

Lupin: The company’s alliance partner Caplin Steriles received final approval from the U.S. FDA to market its Thiamine Hydrochloride injection USP and Rocuronium Bromide injection.

Dr. Reddy’s Laboratories: Coya Therapeutics in a statement, announced a worldwide agreement with Dr. Reddy’s Laboratories to license the latter’s proposed Abatacept biosimilar for the development of Coya’s combination product for neurodegenerative diseases, COYA 302.

Rail Vikas Nigam: The company formed a JV with Jakson Green for clean energy EPC projects globally.

Source: Moneycontrol, Bloomberg Quint, Investing

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