Market View 25th May 2023

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

U.S. stock futures opened higher at the start of Asian trading as risk sentiment turned positive following a sharp jump in sales forecasts from Nvidia Corp., the world’s most valuable chipmaker. Nasdaq 100 futures rallied 1.6%, following a 0.5% drop in the underlying index on Wednesday amid concerns over the debt-ceiling impasse in the U.S. and the risk of another rate hike from the Federal Reserve. Contracts for the S&P 500 jumped 0.6%. As per Bloomberg, before Nvidia’s 27% surge in after-hours trading, major Asia equity indices had looked likely to decline on Thursday, with futures lower for Hong Kong, Japan and Australia. The S&P 500 fell 0.7% on Wednesday, led by losses in financials and real estate, as negotiations over the U.S. debt ceiling continued without a deal. Minutes from the Fed’s meeting in early May showing policymakers were split on the path for U.S. interest rates further knocked sentiment. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.73%. Crude was trading above $78-mark, while Bitcoin traded below 27,000-level. At 05:45 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down 0.19% at 18,250. Domestic benchmark indices ended their three-day rally to close lower as the HDFC twins and Adani Enterprises Ltd. dragged. Meanwhile, the Indian rupee closed higher against the U.S. dollar for the second day in a row on the back of substantial forex inflows.

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: Vodafone Idea, Gujarat State Fertilizers & Chemicals, Zee Entertainment Enterprises, Infibeam Avenues, ITD Cementation India, AIA Engineering, Triveni Engineering & Industries, Medplus Health Services, Page Industries, Strides Pharma Science, Heritage Foods, Emami, GMM Pfaudler, Bharat Dynamics, Prince Pipes and Fittings, Eclerx Services, Kolte-Patil Developers,

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

CLSA ON HINDALCO: Maintain Buy, TP Rs.550; India profitability ahead of estimate and debt declined as well, Guidance look conservative; Leverage to remain low

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Adani Ports and Special Economic Zone: The company will make long-term investment of $10 billion in Vietnam, including $3 billion in ports and wind and solar power projects.

Wipro: The company’s Engineering Edge business line partnered with automated mobility sensor software provider Spartan Radar to build advanced vehicle solutions. Wipro Ventures, the corporate investment arm of the company has invested in Spartan Radar’s B round funding.

Infosys: The leading IT services firm has announced its collaboration with Adobe to transform the digital workforce through Infosys’ online learning platform, Infosys Springboard, under its Tech for Good charter. Both organizations will aim to create over 10,000 new Adobe certified experts globally by 2025.

Somany Ceramics: The tiles manufacturer said the board has approved appointment of Amit Sahai, as Chief Executive Officer-tile business with effect from May 23. The board also approved the issuance of redeemable non-convertible debentures/bonds/other similar instruments upto Rs 50 crore.

BL Kashyap and Sons: The civil engineering and construction company has secured new order worth Rs 132 crore from Indian School of Business. The total order book stood at Rs 2,650 crore till date.

Source: Moneycontrol, Bloomberg Quint, Investing 

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