Market View 23rd May 2023

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

U.S. equity futures rose and contracts for Asian benchmarks pointed to small gains on Tuesday after Republican House Speaker Kevin McCarthy said he’d had productive talks with President Joe Biden on the debt ceiling. Stocks in Japan and Hong Kong were poised for early advances with contracts for Australian shares suggesting marginal increases. S&P 500 futures increased 0.2%, with the investors still on guard as McCarthy said there was no deal yet to ensure the U.S. doesn’t default. This followed fluctuating fortunes in U.S. markets on Monday, with the S&P 500 drifting between gains and losses before closing flat. The tech-heavy Nasdaq 100 advanced 0.3%, though chipmakers were under pressure after China said products by Micron Technology Inc. failed a cybersecurity review. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.71%. Crude was trading below $76-mark, while Bitcoin declined below 27,000-level. At 05:23 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.14% at 18,362. Domestic benchmarks extended gains to close in green, with Adani Group stocks leading the rally along with Infosys Ltd. and Tata Consultancy Services Ltd. The Indian rupee closed lower against the U.S. dollar for the fourth day as the greenback grew stronger in the overseas market.

Economic Calendar:

• USD : Building Permits on 23rd May, 2023
• USD : Services PMI (May) on 23^rd May, 2023
• INR : FX Reserves, USD on 26^th May, 2023
• INR : GDP Quarterly (YoY) (Q4) on 31^st May, 2023

Q4 Results Today: NMDC, Biocon, Dixon Technologies (India), Amara Raja

Batteries, JSW Energy, Fortis Healthcare, Varroc Engineering, Bajaj Electricals, Galaxy Surfactants, GE T&D India, Gabriel India, Johnson Controls-Hitachi Air Conditioning India, Somany Ceramics, Dishman Carbogen Amcis, Sudarshan Chemical Industries, Metro Brands, Bikaji Foods International, CMS Info Systems, Indoco Remedies

Brokerage Radar:

JEFFERIES ON BANDHAN BK: Maintain Buy, TP Rs.340; Growth in loans & NII was weak, but can improve, Profit aided by fall in credit costs with improved credit quality & collections, NPL formulation normalises down & should stay controlled next year

BOFA ON DIVIS LAB: Maintain Neutral, TP Rs.3,250; Q4 margin lagged expectation given moderation in raw material/freight costs, contribution from a high-margin product and improved operating leverage, Margin does not reflect the revenue growth, Meaningful recovery likely in H2

International Markets

U.S & Europe:

 

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Vedanta: The company announced the first interim dividend of Rs 18.50 per share for the financial year 2023-24, with a total outgo of Rs 6,877 crore.

JSW Steel: The resolution plan of company’s subsidiary JSW Steel Coated Products for National Steel and Agro Industries has been approved by the NCLT. The company has also signed an MoU with JFE Steel, Japan to set up a cold rolled grain oriented electrical steel manufacturing joint venture in India.

Coal India: The Joint Bipartite Committee for the Coal Industry signed the National Coal Wage Agreement for the period five years, effective July 1, 2021. The company has made provisions to the tune of Rs 9,252.24 crore for this effect for 21 months from July1, 2021 to March 31, 2023. The final impact of this is not likely to be significant.

ITI: The company has received an advance purchase order worth Rs 3,889 crore from BSNL for planning, engineering, supply, installation, commissioning and AMC of 4G network for 23,633 sites in west zone of BSNL Network.

Torrent Power: The board of the company will consider raising Rs 3,000 crore via private placement of non-convertible debentures, along with the financial results for the March quarter and a final dividend for financial year 2022-23.

Reliance Industries/Bharti Airtel/Vodafone Idea: Reliance Jio gained 3.05 million subscribers, whereas Bharti Airtel added 1.03 million users in March, as per TRAI data. Vodafone Idea lost 1.21 million users during the month.

Source: Moneycontrol, Bloomberg Quint, Investing

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