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

Stocks rose in Asia Friday amid a global bond rally, as investors reassessed expectations for inflation and interest-rate hikes on escalating fears of an economic downturn. Equities gained in Japan and South Korea but fell in Australia after US shares closed near session highs, adding more than 3% over three days.As of 6:30 am, the Singapore-traded SGX Nifty–an early barometer of India’s benchmark Nifty 50–rose 0.18% to 15,593. Oil rebounded to about $105 a barrel. Elsewhere, Bitcoin scaled $21,000.

Economic Calendar:

  • INR: Forex Reserve on 24th June 2022.
  • INR: Fiscal Deficit Data 30th June 2022.
  • USD: Core Durable Goods Order 27th June, 2022.
  • USD: Pending Home sales 27th June, 2022.

Brokerage Radar:

JP MORGAN ON MARUTI: (Contra view on new launches) Neutral, TP raised to Rs 8200 (on roll fwd) Remain cautious, believe model launches will not result in a meaningful uptick in market share Competitive intensity has not abated Market share loss in rural India & CNG are additional risks.

MOTILAL OSWAL ON TUBE INVESTMENT: Initiate Buy, TP Rs 1900 Sound framework to drive 25% PAT CAGR & grow beyond auto parts Seeding new platforms for future growth Acquisition-led growth (PE model) | CG Power is already 33% of SOTP Trades at 25.7x/20.6x FY23E/FY24E consol. EPS.

MORGAN STANLEY ON DELHIVERY: Initiate EW, TP Rs 540 Is one of largest & fastest-growing logistics cos in India Achieved size, sound unit economics in express biz & B/S strength Expect revenue growth CAGR of 29% over F22-26, >3x nominal GDP growth over same period.

MORGAN STANLEY ON AUTOS:Over past 2 wks. met multiple OEMs Vol outlooks across segments constructive; cos have taken price hikes but cost pressures are easing, as are supply chain issues gradually Top OWs- MSIL, AL, Tata Mot, M&M, & Eicher Key EWs- Bajaj & SAMIL Key UWs- Amara, TVS & Hero.

CLSA ON MACROTECH: U-P TP Rs 1061 Enters Bangalore market, remains a challenging market to penetrate due to strong incumbent players Contribution from newer markets like Pune & Bangalore will be key for achieving its target of 20% Cagr in presales in midterm.

CLSA ON SBI: Buy, TP Rs 615 Growth, margins & asset quality all heading in right direction Credit growth holding up better High certainty of improving margins No asset quality worry, lower credit costs to more than offset MTM loss Val @ 0.8x FY24 bk undemanding

International Markets:

U.S & Europe:

Particulars      23rd June    Chg Chg(%)
Nasdaq 11,232.19 179.11 1.62
Dow 30677.36 194.23  0.64
FTSE 7,020.45 -68.77 -0.97
CAC 5,883.33 -33.3 -0.56
DAX 12,912.59 -231.69 -1.76
Dow Fut.* 30808.2 126.40 0.40

Asian markets:

Particulars    24th June    Chg. Chg(%)
SGX Nifty 15,649.00 84.5 0.54
Nikkei 26,362.24 190.99 0.73
Straits Times 3,107.00 14.2 0.46
Hang Seng 21,518.16 244.29 1.15
Shanghai 3,344.73 24.58 0.74

ADR Watch:

Particulars     23rd June Chg. Chg.(%)
Dr Reddy 55.84 0.57 1.03
HDFC Bank 56.57 0.92 1.65
ICICI Bank 17.9 0.27 1.53
Infosys 18.44 0.12 0.66
Tata Motor 25.88 0.52 2.05
Wipro 5.42 0.09 1.69

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 78.30  -0.11
Brent 109.94  -0.10
Gold 1826.05  -0.20
Silver 21.005  -0.19

FIIs & DII:

Particulars        23rd June                                  22nd June
FIIs -2319.06                         -2920.61                       
DIIs   2438.31  1859.07

News Update:

Hindustan Unilever (HUL): The chairman of India’s largest fast-moving consumer goods maker sees demand coming in from all quarters, aiding the company’s growth in the long term, even as inflation weakens the pace in the near term.

Hero MotoCorp: India’s largest two-wheeler maker has increased ex-showroom prices of its scooters and motorcycles by up to Rs 3,000, effective from July 1.

Tata Steel: Tata Steel Mining Ltd., a wholly owned subsidiary, has completed acquisition of 10% stake in Rohit Ferro-Tech for Rs 20.6 crore.
ONGC: ONGC Videsh, a wholly owned subsidiary, has made an oil discovery in a recently drilled well in Llanos Basin, Colombia. HCL Technologies: The company has announced the opening of its new delivery centre in Vancouver, Canada.
HCL Technologies: The company has announced the opening of its new delivery centre in Vancouver, Canada.

DCM Shriram: The company has approved equity investment of Rs 65 crore for a 26% stake in a special purpose vehicle to be created for setting up a wind-solar hybrid renewable power project. Jammu & Kashmir Bank: To consider capital raising on June 28.

Thermax: First Energy, a wholly owned subsidiary, has acquired Jalansar Wind Energy and Kanakal Wind Energy for Rs 1 lakh each.

Systematix Corporate Services: Promoter Chandra Prakash Khandelwal was arrested under Section 3 and 4 of the Prevention of Money Laundering Act, 2002. It would have no impact on the company as the matter does not pertain to it.

Unitech Ltd.: The Enforcement Directorate has attached the company’s real estate properties worth Rs 257 crore.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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