View on market: Stay Cautious, be with quality business:
Asian markets declined following a slump on Wall Street as the Federal Reserve pushed back against bets for interest rate cuts this year while Treasury Secretary Janet Yellen rattled bank shares. U.S. traders got a double dose of stress on Wednesday that reversed an initial rally in shares following the Fed’s expected 25-basis-point rate hike. In a broad-based selloff, the S&P 500 dropped 1.7%. All 22 stocks in the KBW Bank Index retreated, with the measure of US financial heavyweights down almost 5%. Additionally, Yellen told lawmakers that the government wasn’t considering “blanket” deposit insurance to stabilize the banking system while Fed chief Jerome Powell said he was prepared to keep raising rates until inflation shows signs of cooling. Meanwhile, the yield on 10-year treasuries were trading at 3.46%. Crude prices were trading around $76-mark, while Bitcoin was hovering around 27,000-level. At 6:22 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.41% at 17,087. Both the Indian benchmark indices—Sensex and Nifty—closed around 0.2% higher, with pharma, healthcare and PSU stocks leading the rally. The currency markets were closed on Wednesday on account of Gudi Padwa celebrations.
Economic Calendar:
- USD : Initial Jobless Claims on 23rd March, 2023
- USD : New Home Sales (Feb) on 23rd March, 2023
- INR : Bank Loan Growth on 24th March, 2023
- INR : Infrastructure Output (YoY) (Feb) on 31st March, 2023
Brokerage Radar:
MS ON HAL: OW, TP Rs 3216; Size is less than market expectations of >5%, & removes an overhang; Remain OW & would look to use any weakness to add to positions
MS ON M&M: OW, TP Rs 1472; IFC To Invest US$73 mn in New Last Mile Mobility Subsidiary; LMM forms 2.2% of M&M’s total net worth & revenue; Given FY22revenues of Rs13bn, the deal is valued at 4.6x EV/Sales
JEFFERIES ON INDUSIND BK: Buy, TP Rs 1550; CEO highlighted even though extension of tenure by 2yrs, bk is on track to deliver healthy growth, improvement in core franchise & ROA; Continue to build on domain specialization to ramp up on liabilities; Vals attractive at 1.3x FY24E PB
International Markets
U.S & Europe:
| Particulars | 22nd March | Chg. | Chg.(%) |
| Nasdaq | 11669.96 | -190.15 | -1.60 |
| Dow | 32030.11 | -530.49 | -1.63 |
| FTSE | 7566.84 | 30.62 | 0.40 |
| CAC | 7131.12 | 18.21 | 0.26 |
| DAX | 15216.19 | 20.85 | 0.14 |
| Dow Fut.* | 32191.30 | 161.20 | 0.50 |
Asian markets
| Particulars | 23rd March | Chg. | Chg.(%) |
| SGX Nifty | 17140.50 | -17.50 | -0.10 |
| Nikkei | 27400.37 | -66.24 | -0.24 |
| Straits Times | 3213.19 | -7.79 | -0.24 |
| Hang Seng | 19700.25 | 108.82 | 0.56 |
| Shanghai | 3268.07 | 2.32 | 0.07 |
ADR Watch:
| Particulars | 22nd March | Chg. | Chg.(%) |
| Dr. Reddy | 54.36 | -0.01 | -0.02 |
| HDFC Bank | 62.81 | -1.78 | -2.76 |
| ICICI Bank | 20.63 | -0.14 | -0.67 |
| Infosys | 16.60 | -0.29 | -1.72 |
| Wipro | 4.38 | -0.09 | -2.01 |
Commodities & Currency
| Particulars | Current Price | Chg.(%) |
| USD/INR | 82.37 | -0.16 |
| Brent | 76.12 | -0.74 |
| Gold | 1978.00 | 1.46 |
| Silver | 23.043 | 1.13 |
FIIs & DIIs:
| Particulars | 22nd March | 21st March |
| FIIs | 61.72 | -1454.63 |
| DIIs | 383.51 | 1946.06 |
News Update:
Hindustan Aeronautics: The central government will sell up to 3.5% stake in the company via offer for sale route on March 23 and March 24 at a price of Rs 2,450 per share.
Hero MotoCorp: The company will hike prices for certain motorcycles and scooters from April 1 to cover cost increases on account of transition to On-Board Diagnostic II. The price hike will be around 2% and vary by specific models and markets.
Larsen & Toubro: The company signed an agreement with France-based McPhy Energy for a long-term partnership where the latter will grant an exclusive manufacturing license of its pressurised alkaline electrolyser technology to the former, including future product upgrades.
Reliance Industries: Reliance Consumer Products, the FMCG arm of the company’s retail subsidiary Reliance Retail Ventures, expanded its FMCG portfolio with the launch of personal and home care products.
Power Grid Corporation of India: The company acquired six special purpose vehicles from REC Power Development and Consultancy for a cumulative consideration of Rs 80.23 crore. The SPVs have been mostly formed for the construction of Transmission Projects in Khavda region of Gujarat.
GR Infraprojects: The company emerged as the lowest bidder for six-laning of Surat-Nashik-Ahmednagar-Solapur greenfield stretch from Hasapur to Badadal in Maharashtra at a cost of Rs 872.17 crore. It has also been selected for construction of civil works at the Dibang Multipurpose Project in Arunachal Pradesh for Rs 3,637.12 crore.
PNC Infratech: The company’s subsidiary Sonauli Gorakhpur Highway received the appointed date of March 6, 2023 for the four-laning of Sonauli-Gorakhpur section of NH-29 national highway in Uttar Pradesh.
Chalet Hotels: The company will acquire 100% stake of Sonmil Industries for 74.65 crore and 82.28% stake in The Dukes Retreat. Sonmil owns the land in Khandala where The Dukes Retreat runs a property.
Source: Moneycontrol, Bloomberg Quint, Investing
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