Market View 23rd January 2023

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

Asian markets were poised to advance on Monday after a rebound on Wall Street last Friday and Fed comments alleviating fears of aggressive policy moves. Markets in Hong Kong, Shanghai, Singapore and Seoul were closed for Lunar New Year celebrations. Many regional markets will remain closed until midweek and mainland China trading won’t resume until Jan. 30. At 5:53 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.46% to 18,127.5. U.S. stocks recovered from the week’s losses on the back of a rally in tech stocks. The S&P 500 rose 1.9%, while the tech-heavy Nasdaq 100 was up 2.9%. The yield on 10-year Treasuries advanced nine basis points to 3.48%. Crude price declined 0.52%. The Bitcoin rally continued as the cryptocurrency rose around $22,300-level. Domestic benchmark indices closed in the red at the end of week for the second day after dipping in the final minutes of trade.

Economic Calendar:

• USD : GDP (QoQ) (Q4) on 26th January, 2023
• USD : Initial Jobless Claims on 26th January, 2023
• INR : Infrastructure Output (YoY) (Dec) on 31st January, 2023
• INR : Nikkei S&P Global Manufacturing PMI (Jan) on 31st January, 2023

Q3FY23 Results Today: Axis Bank, IDBI Bank, Canara Bank, Container Corporation of India, Amber Enterprises India, Craftsman Automation, Butterfly Gandhimathi Appliances, Gland Pharma, Gravita India, HFCL, Jammu & Kashmir Bank, Jindal Stainless, Poonawalla Fincorp, Route Mobile, Shoppers Stop, Syngene International, Tata Communications, Tamilnad Mercantile Bank, Zensar Technologies

Brokerage Radar:

CLSA ON SBILIFE: Buy, TP Raised to Rs 1700; Lift VNB est 3%-3.5%; 3Q APE strong, up 19% YoY, & its VNB margin rose 480bps YoY to 29.6%. Overall margin profile of its products remains stable & optical margin fall is largely due to an increase in its ULIP mix

MS ON YES BK: UW, TP Cut to Rs 17.5 from Rs 20; Earnings missed MSe owing to higher ageing provisions & lower margins (had a one-off previous quarter/higher funding costs); B/S sheet improved with ARC sale/capital raise, & regulations driving up-front provisions

JEFFERIES ON ULTRATECH: Buy, TP Rs 8300; 3Q Consol EBITDA near expectations – lower 3% YoY at Rs23.4bn (JEFe at Rs23.9bn); On QoQ basis, unit Ebitda improved by Rs95/T to Rs903; Sales vol grew 12% YoY & broadbased; Realisation growth lower than est.

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: The company will raise Rs 20,000 crore via non-convertible debentures. Additionally, KV Kamath has jointed the company’s board as independent, effective Jan. 20, for a term of five years.

State Bank of India/ Canara Bank: The lender will sell its 40% stake in Moscow-based joint venture Commercial Indo Bank LLC to partner State Bank of India for $14.67 million.

Trent: Executed a joint venture agreement with MAS Amity to set up an entity in India for jointly developing a business of intimate wear and other apparel related products.

Page Industries: The board will meet on Feb. 9 to consider third interim dividend for the fiscal and financial results for the quarter ended December 2022.

Lemon Tree Hotels: The company signed a franchised hotel in Kumbhalgarh , Rajasthan, which is expected to open in December 2023.

Strides Pharma: The World Health Organisation completed inspection of the company’s facility in Puducherry from Jan. 16-20.

ITC: Navneet Doda has stepped down from the board of the company as a non-executive director with effect from Jan. 20.

IDFC First Bank: The board of the bank approved approaching RBI for the appointment of Madhivanan Balakrishnan, chief operating officer, as the whole time director designated as executive director and chief operating officer.

Adani Enterprises: Step-down subsidiary Agneya Systems has formed a 56:44 joint venture with Armada Defence Systems manufacturing various types of products and parts for Indian armed forces.

Source: Moneycontrol, Bloomberg Quint, Investing

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