Market View 24th May 2023

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

Asian stocks were poised to decline Wednesday as negotiations over raising the U.S. debt ceiling remained at an impasse, sapping sentiment for risk taking. Futures for equity benchmarks in Hong Kong, Japan and Australia were all down at least 0.5%, following drops of more than 1% for the S&P 500 and Nasdaq 100. Contracts for the S&P 500 and the Nasdaq 100 increased about 0.3%, an index of Asian shares also rose 0.3% and Euro Stoxx 50 futures climbed 0.2%. In the U.S., debt negotiations continued but progress appeared limited, with some House Republicans questioning the urgency of a deadline imposed by Treasury Secretary Janet Yellen for when the government will start missing debt payments. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.70%. Crude was trading below $77-mark, while Bitcoin advanced above 27,000-level. At 05:42 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down up 0.44% at 18,280. Domestic benchmarks closed marginally higher as Adani Group stocks led the gains while private banks dragged. Meanwhile, the Indian rupee snapped its four-day decline against U.S. dollar following marginal rise in domestic equities.

Economic Calendar:

• USD : GDP (QoQ) (Q1) on 25^th May, 2023
• USD : Initial Jobless Claims on 25^th May, 2023
• INR : FX Reserves, USD on 26^th May, 2023
• INR : GDP Quarterly (YoY) (Q4) on 31^st May, 2023

Q4 Results Today: Hindalco Industries, Shyam Metalics and Energy, National Aluminium Co., Piramal Pharma, Cummins India, FSN E-Commerce Ventures, Avanti Feeds, Bayer CropScience, Brigade Enterprises, JB Chemicals & Pharmaceuticals, Pennar Industries, Fine Organic Industries, Garden Reach Shipbuilders & Engineers, Life Insurance Corporation of India, Aptech, Ashoka Buildcon, Caplin Point Laboratories, Prudent Corporate Advisory Services, ICRA, Wonderla Holidays, Bannari Amman Sugars, Bigbloc Construction, Gujarat Pipavav Port, GRM Overseas, Hawkins Cookers, Hindware Home Innovation, India Cements, India Glycols, IRCON International, India Tourism Development Corporation

Brokerage Radar:

GOLDMAN SACHS O DIXON TECH: Maintain Neutral, TP Rs.3,370; Comeback quarter, growth to pick-up again, Beaten street estimates after many quarter, Major beneficiary of the Make in India push across products, Neutral as growth largely priced

NOMURA ON ASHOK LEYLAND: Maintain Buy, TP Rs.184; Q4 EBITDA margin beats consensus, Operating leverage and higher gross margins boost EBITDA margin, See further scope of improvement in realization and CV cycle to stay positive

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Ipca Laboratories/Lyka Labs: Ipca Laboratories has increased its shareholding in Lyka Labs by 9.76% in two tranches. It bought 44 lakh shares at Rs 139.50 apiece on March 15 and April 18. Ipca now holds 1.20 crore share of Lyka, or 36.34% of latter’s overall shareholding.

Wipro: The company will integrate Google Cloud’s full suite of Generative AI products and services with its own AI intellectual property to bring the same to its clients.

NTPC: The power company aims to add 16 GW of renewable capacity by the fiscal ended 2026, the management said during its recent earnings call.

Shriram Properties: The company has acquired 100% development rights for an ongoing project at Chennai through its wholly owned subsidiary Shrivision Elevations. The project has a revenue potential of Rs 1,200 crore over next five years.

Century Textiles: The company will raise Rs 400 crore via non-convertible debentures on private placement basis.

Adani Green Energy: The board meeting scheduled on May 24 to consider raising funds was cancelled due to non-availability of directors. The next date of meeting will be announced later.

Punjab National Bank: The bank appointed Amit Srivastava as its group chief risk officer.

 Source: Moneycontrol, Bloomberg Quint, Investing 

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