Market View 24th February 2023

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

Asian markets were mixed at opening after the U.S. stocks closed higher in a volatile session as investors await inflation data for clues on the Federal Reserve’s rate-hike campaign. The S&P 500 came back higher on Thursday, halting a four-day selloff, while the Nasdaq 100 outperformed. Oil rose after snapping its longest losing streak since December as commodity currencies strengthened in an indication that risk appetite may be picking up. Meanwhile, the yield on 10-year Treasuries advanced to 3.86%. Crude prices were trading around $82-mark, while Bitcoin was trading below 24,000-level. At 6:10 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.22% at 17,629. On the day of monthly F&O expiry, domestic benchmark indices Sensex and Nifty closed marginally lower after struggling with volatility throughout the session on Thursday. Rupee extended gains from the opening trade to close higher against the U.S. dollar, snapping a two-day fall.

Economic Calendar:

• USD : New Home Sales (Jan) on 24th February, 2023
• USD : Pending Home Sales (MoM) (Jan) on 24th February, 2023
• INR : Deposit Growth on 24^th February, 2023
• INR : GDP Quarterly (YoY) (Q3) on 28^th February, 2023

Brokerage Radar:

CS ON SUN PHARMA: Neutral, TP Rs 950; Winlevi: Avg. realizations very low but can improve; vol trajectory is a bigger concern; Winlevi constituted <2% of acne market’s vol but high genericization (85% of vol) could be an impediment even though its efficacy is superior

MOSL ON DEEPAK NITRITE: Neutral, TP Rs 1890; Headwinds to persist as new capacities are added; Phenolic division margins expected to remain under pressure; Downstream products to lead next leg of vol growth; DN is expected to turn net cash +ve by FY24

MS ON ZOMATO: OW, TP Rs 82; Announced a pilot of its home cooked meals at an affordable price in Gurgaon; See this initiative increasing its TAM/contribution profit pool (but diluting profit/order) See this as an experiment, which can be closed if it doesn’t work

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Axis Bank: The lender sees reasonable possibility of completing the acquisition of India consumer business from Citibank NA and NBFC consumer business from Citicorp Finance (India) by March 1, 2023.

Rail Vikas Nigam: The company received letter of award for a project worth Rs 196.77 crore in Bhopal region of MP Madhya Kshetra Vidyut Vitaran Company Ltd.

Zee Enterprises: Appellate tribunal NCLAT has listed the plea challenging insolvency proceedings against the company on Friday for hearing. The National Stock Exchange has excluded the company from the futures and options segment following the bankruptcy board’s move to admit it for insolvency proceedings.

Isgec Heavy Engineering: The company received an order from a major steel company for seven waste heat recovery boilers for its DRI sponge iron kiln.

Adani Transmission: Fitch Ratings affirmed the ‘BBB-‘ ratings on the $400 million senior secured notes issued by the restricted group of the company, with outlook at stable.

Mahindra Lifespace Developers: Arvind Subramanian has resigned from the position of managing director and chief executive officer of the company, with effect from close of business on May 22, 2023, to pursue personal interests. Amit Kumar Sinha assume the office from May 23 for a period of five years.

Alkem Laboratories: The company submitted a detailed corrective and preventive action plan to the US FDA against one observation issued by the regulator after inspecting the company’s Indore plant in July. The inspection has now been closed.

Bharat Forge: The Company has decided to house all its defense related investments under subsidiary KSSL for a better strategic alignment, transferring its stake in another subsidiary Aeron.

West Coast Paper Mill: The contract workers’ strike was called off and production at the paper and paper board division at the company’s Dandeli facility was restarted with marginal production loss.

Source: Moneycontrol, Bloomberg Quint, Investing

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