Market View 22nd February 2023

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

Asian markets declines on Wednesday after the S&P 500 tumbled by the most in two months and Treasury yields rose sharply as investors price in higher interest rates. The S&P 500 tumbled 2% on Tuesday in a decline that touched all major sectors, while the tech-heavy Nasdaq 100 dropped 2.4%. Weak forecasts from the U.S. retailing bellwethers added to the negative tone. Meanwhile, the yield on 10-year Treasuries sharply advanced to 3.94%. Crude prices were trading around $83-mark, while Bitcoin was trading around 24,000-level. At 6:18 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.30% at 17,791.5. India’s benchmark indices Sensex and Nifty ended lower for the third day in a row following a volatile session, led by declines in PSU and realty stocks. Rupee ended lower against the U.S. dollar on account of weaker domestic equities and a stronger greenback in the overseas market.

Economic Calendar:

• USD : GDP (QoQ) (Q4) on 23^rd February, 2023
• USD : Initial Jobless Claims on 23^rd February, 2023
• INR : Deposit Growth on 24^th February, 2023
• INR : GDP Quarterly (YoY) (Q3) on 28^th February, 2023

Brokerage Radar:

UBS ON MARUTI: Buy, TP Rs 12600; Maruti’s SUV appeal set to rise with Real Driving Emission norms; Expect consumers to shift away from diesel post RDE (diesel a/c for 33% of industry ex-Maruti vols with c50%- 60% in mid-size SUVs & 20-25% share in compact SUVs)

MS ON TORRENT POWER: EW, TP Rs 510; Whilst Q3 was a miss on est. do not see a material impact on biz fundamentals in thermal & licenced distribution businesses. Stronger-than-expected improvement in AT&C losses in franchise biz is offset by impact of lower wind PLF

JEFFERIES ON VOLTAS: Buy, TP Rs 1050; IMD recently issued 1st heat wave alert of 2023; Normally, March is when temperatures rise but in Feb itself trends are showing

Dealers highlighting lower commodity prices have not been passed on; This points to improved vol & margin outlook

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Mahindra & Mahindra: Entered into an Asset Transfer Agreement for transfer of certain identified assets related to four-wheeler passenger electric vehicles to Mahindra Electric Automobile. The transfer of balance assets will be completed by June 30, 2026. The investment of Rs 1,925 crore in the proposed EV company by the company and British International Investment each would take place in two or more tranches.

Mirza International: The Allahabad bench of NCLT has approved the composite scheme of arrangement between RTS Fashions, Mirza International and Redtape.

Bharat Electronics: The company signed an MoU with Aeronautical Development Agency under Defence Research and Development Organisation for the Advanced Medium Combat Aircraft programme.

Hindustan Zinc: The shareholders of the company will meet on March 29 to consider reorganisation of capital, pursuant to the NCLT order in this regard.

HCL Technologies: HCL America, a wholly owned subsidiary of the company, increased the buyback limit of its $500 million senior notes to $247.8 million from earlier announced $125 million.

ITI: The company has appointed Rajesh Rai as the chairman and managing director for five years, effective Feb. 21, 2023.

Sapphire Foods India: The company will increase its shareholding in Gamma Island Food, which operates Pizza Hut and KFC restaurants in Maldives, to 75% from the current 51%.

LIC Housing Finance: ICICI Prudential Mutual Fund has increased its shareholding in the company to 7.07% from 5.04%.

Petronet LNG: The board extended the tenure of chief financial officer Vinod Kumar Mishra for two years, effective April 18, 2023.

Biocon: The company raised Rs 1,070 crore via non-convertible debentures issued on private placement basis.

Source: Moneycontrol, Bloomberg Quint, Investing

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