Market View 26th June 2023

View on market: Volatility Prevails, Market is searching for better value

Oil and U.S. equity futures edged higher on Monday while major currencies traded within narrow ranges. Contracts for the S&P 500 and the Nasdaq 100 rose about 0.1%. Contracts for the S&P 500 and the Nasdaq 100 rose about 0.1%. Oil added about 0.7%. The yen fluctuated, the euro strengthened and commodity-linked currencies such as Australia dollar and Norwegian krone were little changed. The S&P 500 Index ended the previous shortened holiday week 1.4% lower while the Nasdaq 100 benchmark fell 1.3% as investors took profits from the year’s winning technology names. Meanwhile, Brent crude rose to $74 a barrel and West Texas Intermediate was trading around $70-mark. The yield on the 10-year U.S. bond was trading at 3.73%, whereas Bitcoin rose above 30,000-level. At 5:18 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 0.08% at 18,699.5.

Economic Calendar:

• USD : New Home Sales (May) on 27th June, 2023
• USD : GDP (QoQ) (Q1) on 29^th June, 2023
• INR : Federal Fiscal Deficit (May) on 30^th June, 2023
• INR : Infrastructure Output (YoY) (May) on 30^th June, 2023

Brokerage Radar:

MS ON UPL: OW, TP Rs 856; De-merger of Specialty Chemical & AI business

Rationale: 1) To create a separate pure-play platform with greater operational flexibility, a dedicated team, and improved capital allocation; 2) to potentially unlock shareholder value in future

CLSA ON EICHER MOTORS: Buy, TP Rs 4,266; Pricing of new competitor models & distribution expansion is key; Share of 250cc motorcycle segment is going up in premium motorcycle segment; Making money at RE price point is quite difficult

NOMURA ON SBI CARDS: Downgrade to reduce, TP cut to Rs 700 from Rs 1030; Profitability to remain under pressure; Credit card industry growth moderating; SBI Cards continues to lose market share; Industry landscape changing with an increase in riskier consumer segments.

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Tata Consultancy Services:

TCS said that the media report on the purported ‘recruitment scam’ is incorrect. It has launched a review to examine the allegations in the whistleblower complaint and media reports claiming a “recruitment scam.” The issue relates to breaches of the company’s code of conduct by certain employees and vendors providing contractors. The review found that it does not involve any fraud by or against the company and has no financial impact. No key managerial person in the company has been found to be involved.

HDFC Life Insurance:

The company received a GST demand notice for Rs 942 crore. The demand pertains to the period from July 2017 to FY 2022, and the matter relates to the claiming of an input tax credit against the supply of services that the authority believes are ineligible for such claims. The company has deposited Rs 250 crore under protest.

IPCA:

The U.S. FDA has issued a Form 483 with eight observations to the company’s Pithampur facility in Madhya Pradesh.

Yes Bank:

The Board of Yes Bank approved raising Rs 2,500 crore through the issue of debt securities.

Rail Vikas Nigam:

The company bagged a project worth Rs 394.89 crore from Maharashtra Rail Corporation for the design and construction of an elevated metro viaduct. The project is expected to be executed in 30 months.

Axis Bank:

The RBI imposed a monetary penalty of Rs 30 lakh after the bank levied penal charges in certain accounts for late payment of credit card dues, even though the customers had paid the dues by the due date, through third-party platforms.

Zydus Lifesciences:

The company’s subsidiary, Zydus Animal Health and Investments, has entered into an agreement to acquire a 6.5% stake in Mylab Discovery Solutions. It will buy the stake from Rising Sun Holdings for Rs 106 crore. The company aims to participate in the growing diagnostics space through increased penetration of in-clinic solutions with point-of-care testing devices.

Bank of Maharashtra:

RBI imposed a monetary penalty of Rs 1.45 lakh for non-compliance with directions issued by RBI on Loans and Advances – Statutory and Other Restrictions.

 

Source: Moneycontrol, Bloomberg Quint, Investing 

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