Market View 27th February 2023

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

Asian markets are set to fall after a heavy selling on Wall Street late last week as investors weighed-in on forecasts for the U.S. interest rates following hot inflation data. The S&P 500 and Nasdaq 100 dropped more than 1% Friday, dragging the two U.S. indexes each to their worst week since December. The Nasdaq Golden Dragon index of Chinese companies fell 3.9% Friday in another sign of likely selling pressure in Asia Monday. Meanwhile, the yield on 10-year Treasuries advanced to 3.94%. Crude prices were trading around $83-mark, while Bitcoin was trading below 24,000-level. At 5:35 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.21% at 17,505. Domestic benchmark indices Sensex and Nifty erased opening gains and logged the lowest weekly loss in eight months, on Friday. Rupee erased gains from the opening trade to close marginally lower against the U.S. dollar in the last session of the week.

Economic Calendar:

• USD : Pending Home Sales (MoM) (Jan) on 27th February, 2023
• USD : ISM Manufacturing PMI (Feb) on 01st March, 2023
• INR : GDP Quarterly (YoY) (Q3) on 28^th February, 2023
• INR : Federal Fiscal Deficit (Jan) on 28^th February, 2023

Brokerage Radar:

CITI ON MPHASIS: Sell. TP Rs 1705; Interacted with CFO; Deal TCV to rev conversion is slowing in current macro environment; Mortgage biz likely to remain muted in 4Q; Overall growth will likely improve post 4Q; On margins, guided range of 15.25% to 17% in FY23E

GS ON VOLTAS: Sell, TP Rs 840; Stock up 15% in last 15 days on newsflow around an early onset of summer in India; Voltas stk tends to outperform during onset of summer

Also, even during peak warm years industry growth has remained at a CAGR of 6-8% over last 10-15 yrs

NOMURA ON CROMPTON CONS: Buy, TP Rs 377; Co’s R&D center came up in 2019 & is ramping up; Benefits of these will start flowing over next few yrs In near term, believe margins could be slightly impacted due to price cut in pumps & increased marketing expenses

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Piramal Enterprises: The board is scheduled to meet on March 1 to issue non-convertible debentures worth Rs 100 crore on private placement basis, with an option to retain oversubscription up to Rs 500 crore.

Power Grid Corporation of India: A directors’ panel approved aggregate investment to the tune of Rs 804 crore in four projects.

Indiabulls Housing Finance: The company will issue non-convertible debentures worth Rs 100 crore, with the option to retain oversubscription up to Rs 800 crore, aggregating up to Rs 900 crore.

SpiceJet: The company’s board will now meet on Feb. 27 to consider issue of shares on preferential issues and raising fresh capital through issue of eligible securities to qualified institutional buyers.

NBCC India: The company received an order worth Rs 350 crore for planning, design, execution/ construction of buildings and its services and other maintenance and upgradation works of existing buildings at Motilal Nehru National Institute of Technology, Allahabad. In the month of January 2023, the company secured total business of Rs 194.17 crore.

PVR: The company opened an 11-screen multiplex at Lulu Mall in Lucknow, Uttar Pradesh.

Edelweiss Financial Services: The company has received shareholders’ approval for the proposed demerger of its wealth management business.

Bharat Electronics: The company opened its new software development centre in Visakhapatnam, which will offer SaaS services for various applications to both defence and non-defence sectors.

Source: Moneycontrol, Bloomberg Quint, Investing

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