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

Most Asian markets have opened the new trading week lower as bond yields continue to remain higher. Benchmark indices slipped in Japan and South Korea along with the MSCI Asia-Pacific index. Markets in Australia traded higher. The Turkish Lira fell as much as 15% this morning after President Recep Tayyip Erdogan removed the central-bank governor, following a sharper-than-expected hike in interest rates The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.3% to 14,695, as of 8:10 a.m.

Key Data/ Action, Result and Board meeting to watch

Major economic Data:

  • INR: FX Reserves USD on 26th, March,2021
  • INR: Bank Loan Growth on 26th, March,2021

International

Markets:U.S & Europe

Particulars    19th  Mar. Chg Chg(%)
Nasdaq 13,215.24 99.07 0.76
Dow 32,627.97 -234.33 -0.71
FTSE 6,708.71 -70.97 -1.05
CAC 5,997.96 -64.83 -1.07
DAX 14,621.00 -154.52 -1.05
Dow Fut.*      32,402.00    -101 -0.3

 

Asian markets:

Particulars       22nd Mar. Chg Chg(%)
SGX Nifty 14,745.50 -1.5 -0.01
Nikkei 29,248.90 -543.15 -1.82
Straits Times 3,146.82 12.28 0.39
Hang Seng 29,011.40 20.46 0.07
Shanghai 3,427.78 23.12 0.68

 

ADR Watch:

Particulars                 19th Mar.  Chg Chg(%)
Dr Reddy 59.01 1.03 1.78
HDFC Bank 77.8 0 0
ICICI Bank 16.17 0.29 1.83
Infosys 18.75 0.37 2.01
Tata Motor 21.22 0.51 2.46
Wipro 6.38 0.09 1.43

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 72.41          0.00
Brent 64.43         -0.15
Gold 1736.85         -0.27
Silver       25.77         -2.06

 

FIIs & DIIs

Particulars 19th Mar       18th  Mar
FIIs     1418         1258
DIIs     560        -1116

 

Fund View:

Goldman Sachs On United Spirits Upgrade to buy from neutral Price target of Rs 683 Stock offers the best combination of growth and value Has an opportunity to build on its market share in scotch whiskey See Ebitda margins at 19.6% by FY24 from 16.6% in FY20 owing to improved realisations from its IMFL business and higher scotch contribution FY22/23 EPS estimates are 4-6% higher than Bloomberg consensus Scenario analysis on restructuring of popular brands suggests that the stock can see further upside of 23% to our target.

Nomura on Dr Reddy’s Laboratories Upgrade to buy from neutral Price target cut to Rs 5,065 from Rs 5,165 Risk-reward is favourable following the recent stock correction An approval for Sputnik V is likely in the near-term but financial upsides are uncertain as it will depend on pricing Cut the value of Sputink V opportunity to Rs 41 per share from Rs 98 per share earlier Higher-than-estimated contribution from product specific opportunities, better-than-expected growth in India, API and Emerging markets are key catalysts Price erosion in the U.S. market, delays in approval of key products, adverse currency movements some key risks.

Motilal Oswal On Cholamandalam Investment & Finance Maintains buy rating Price target raised to Rs 640 from Rs 530 Growth trajectory healthy; asset quality performance impressive Margins may expand further with cost of funds declining and trimming of excess balance sheet liquidity Expect AUM growth to decline 10% in FY22 but should improve to mid-teens FY23 onwards Product diversification is margin accretive Return ratios are among the best Stock warrants higher multiples despite sharp rerating over the last three months.

Emkay On Cement Sector Average pan-India prices rose 4-5% month-on-month backed by strong demand and need to mitigate cost escalations Cement demand remains strong mainly led by North, East & Central regions A second round of price hikes of Rs 10-20 per bag has not been implemented to ensure sustainability of the earlier hike Industry may report over 20% year-on-year volume growth in Q4FY21E aided by a low base of March 2020 Sustaining the price hikes would likely support margins amid rising cost pressures.

News Update:

Tata Motors: Former Daimler AG manager Marc Llistosella will not be joining the company as its next Managing Director & CEO as previously announced. Guenter Butschek to continue as the Managing Director & CEO till June 30, 2021.

Power Grid Corporation Of India: Has signed a Share Purchase Agreement with Jaiprakash Power Ventures for acquisition of 74% stake of JVPL in Jaypee Power Grid at an aggregate cost of Rs 351 crore. Subsequently JPL will become a wholly owned subsidiary of the company.

Bharat Dynamics: Ministry of Defence has signed a contract with the company for supply of Milan-2T Anti-Tank Guided Missiles to Indian Army at the cost of Rs 1,188 crore.

Future Group: Filed a appeal against a Delhi High Court ruling pertaining to the sale of its assets to Reliance Industries.

NMDC: Prices of Lump ore raised by 5% to Rs 5,350 per tonne from Rs 5,100 per tonne. Prices of fines increased by 2.4% to Rs 4,310 per tonne from Rs 4,210 per tonne. Prices on March 6 were left unchanged as compared to those in February.

NHPC: The Board of Directors inter-alia approved the proposal to form a JV for implementation of Ratle Hydroelectric Project (850 MW) in the Chenab River Basin of Jammu and Kashmir.

L&T Finance Holdings: Board has approved reappointment of Dinanath Dubhashi as the Managing Director and Chief Executive Officer of the company for a further period of five years, subject to the approval of shareholders i.e. till April 13, 2026.

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