Market View 24th March 2023

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

Asian markets decline after a technology-driven rally on Wall Street failed to ease the pressure over the banking sector. U.S. investors piled into top technology companies including Apple Inc. and Microsoft Corp. to push the Nasdaq 100 close to the threshold of a bull market after an almost 20% surge from its December low. Banking stocks missed out on the rally, with a gauge of U.S. financial heavyweights such as Wells Fargo & Co. and Bank of America Corp. sinking to the lowest since November 2020. Treasury Secretary Janet Yellen clarified to the lawmakers the U.S. would be prepared for further steps to protect deposits if needed. Meanwhile, the yield on 10-year treasuries were trading at 3.39%. Crude prices were trading around $75-mark, while Bitcoin was hovering around 28,000-level. At 6:21 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.12% at 17,104.5. The Indian benchmark indices—Sensex and Nifty—snapped their two-day rally on the back of a volatile session to close 0.5% and 0.44% lower, respectively. Indian rupee strengthened against the U.S. dollar, closing at its highest level in seven days, as the greenback came under pressure in overseas markets with a dovish Federal Reserve.

Economic Calendar:

• USD : Core Durable Goods Orders (MoM) (Feb) on 24^th March, 2023
• USD : CB Consumer Confidence (Mar) on 28^th March, 2023
• INR : Bank Loan Growth on 24^th March, 2023
• INR : Infrastructure Output (YoY) (Feb) on 31^st March, 2023

Brokerage Radar:

MS ON IT: More +ves than -ves for India IT; Preferred picks -LTIM, Infosys & HCLT; Nomura on IT (Accenture read through); Demand continues to shift towards cost optimization; Top picks: Infy, & TechM, Coforge & Persistent

JEFFERIES ON RIL: Buy, TP cut to Rs 3060 from Rs 3100; While there is a growing concern that telecom tariff hikes may only take place after general elections in May-24, note this could lead to accelerated market share shifts & in theory an effective duopoly; While cut Jio’s est. by 1-6% to factor tariff hike delays, reiterate BUY; RIL offers 36% upside to revised PT of Rs 3,060 & 28% upside even if tariff hikes don’t materialize till Mar-25

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Hindustan Aeronautics: The government will exercise the greenshoe option to sell additional 1.75% stake in the company as the offer for sale was subscribed 4.5 times its base size. The issue will open for retail investors on Friday.

Reliance Industries: Jio-bp, a joint venture between Reliance Industries and bp, and Piramal Realty, the real estate arm of Piramal Group, have entered a partnership to set up EV charging solutions across all of latter’s residential projects in the Mumbai Metropolitan Region.

Life Insurance Corporation of India: The Financial Services Institutions Bureau has recommended Siddhartha Mohanty as the chairperson of the insurer.

Bharat Electronics: The company secured two contracts worth Rs 3,700 crore from Ministry of Defence for supply of medium power radars ‘Arudhra’ and 129 DR-118 radar warning receivers for the Indian Air Force.

Tata Steel: The company acquired the balance 1.35 crore shares (24.06%) of indirect wholly owned subsidiary Tata Steel Advanced Materials from wholly owned unit Tata Steel Downstream Products for Rs 17.33 crore.

Vedanta: The board of the company will meet on March 28 to consider its fifth interim dividend for the current fiscal.

Infosys: The company’s U.S.-based subsidiary Infosys Public Services deployed Quantum Global Digital Management System for United Nations Development Programme, which will offer services to eight agencies of United Nations with a user base of 50,000 across 170 countries.

Lupin: Received tentative approval from U.S. FDA to market its abbreviated new drug application Obeticholic acid tablets, a generic equivalent of Intercept Pharmaceuticals’ Ocaliva tablets.

IDFC First Bank: Board has approved the allotment of 37.75 crore shares of Rs 58.18 apiece to wholly owned subsidiary IDFC Financial Holding Company on preferential basis by way of private placement, taking the latter’s stake in the bank up to 39.99%.

Source: Moneycontrol, Bloomberg Quint, Investing

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