Market View 23rd December 2022

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

Asian equities opened lower on Friday amid a downbeat tone in the markets owing to a slump in U.S. technology stocks and more economic data justifying case for the Federal Reserve to keep raising the interest rates. Shares fell in Japan, South Korea and Australia while Hong Kong futures and an index of US-listed Chinese companies dropped. Meanwhile, the S&P 500 closed down 1.5% and the tech-heavy Nasdaq 100 declined 2.5%, with sentiment battered by a bleak outlook from chipmaker Micron Technology Inc.   U.S. stocks reversed gains as investors grappled with data that established Federal Reserve’s claims of the economy being robust enough to stand further tightening. The dollar was steady against most of its major counterparts Friday after edging higher Thursday as the policy-sensitive two-year Treasury yield climbed to 4.27%.  Treasuries were little changed in early Asian trading. Australian and New Zealand government bond yields rose. Crude fell 0.7%, while gold futures declined 1.3%. Bitcoin dropped 1.2% to trade around $16,600-level. India benchmark indices pared their gains from opening trade and closed lower at the end of a volatile session. All 20 sectoral indices compiled by BSE Ltd. closed in red. Rupee snapped its losing run against the U.S. dollar, rising as much as 0.21% to 82.64, and closing higher. At 6:44 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.61% to 18,067.

Economic Calendar:

• USD : Core Durable Goods Orders (MoM) (Nov) on 23rd December, 2022
• USD : New Home Sales (Nov) on 23rd December, 2022
• INR : FX Reserves, USD on 23rd December, 2022
• INR : Foreign Debt (USD) (Q3) on 30th December, 2022

Brokerage Radar:

MS ON SBI CARD: OW, TP Rs 1100; Continued to gain market share in cards in force, with 30% share in incremental cards & 17bp MoM uptick in outstanding cards in force

Spends market share marginally improved MoM to 18.3% in Nov; YTD market share maintained at 18%

MOSL ON RIL: Buy, TP Rs 2850; Assuming that Metro Cash & Carry can achieve about 7% (Pre IND-AS 116) EBITDA margin, under Reliance Retail’s fold, it could add enterprise value of Rs 167.5b at 40x EV/EBITDA (Reliance Retail SOTP) after adjusting for Rs 28.5b cash consideration

GS ON BANDHAN BK: Neutral, TP Rs 297; Sale of written-down portfolio a +ve surprise; RoA normalization & diversification key; Proposed sale 1 of largest asset sale deals being done in microfinance Industry; Est. to deliver RoA/RoE of 2.7%/20% over FY23-FY25E

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: Indian Oil Corporation has selected the company’s telecom arm Reliance Jio Managed Network Services for retail automation and critical business processes at its retail outlets. Reliance Projects and Property Management Services, a wholly owned subsidiary of the company, acquired 100% stake ion Reliance Infratel. Reliance Projects & Property Management Services, another subsidiary of the company, acquired 23.3% stake in robotics company Exyn Technologies for $25 million.

Yes Bank: The bank transferred invoked shares of seven companies identified as stressed assets to JC Flowers ARC.

Rail Vikas Nigam: Won the contract worth Rs 198.93 crore by Gujarat Metro Rail Corporation for construction of Bhesan depot cum workshop for Surat Metro Rail Project Phase-1.

NTPC: Signed an MoU with GE Power India to reduce carbon intensity at the former’s coal fired units.

Lupin: Recalled four lots of Quinapril tablets in the U.S. market due to potential presence of a nitrosamine impurity.

Ingersoll-Rand (India): The board of the company approved setting up a new manufacturing plant in Gujarat to increase the manufacturing capacity of the existing products and as well as manufacture new products.

GAIL (India): The Life Insurance Corporation of India increased its stake in the company to 6.833% from 4.815%.

Info Edge (India): The Life Insurance Corporation of India increased its stake in the company to 5.008% from 4.988%.

Source: Moneycontrol, Bloomberg Quint, Investing

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