Market View 27th March 2023

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

Australian shares opened marginally higher while the futures for other Asian markets pointed to mixed sentiment.Australian shares opened marginally higher while the futures for other Asian markets pointed to mixed sentiment. U.S. stock futures made small gains while a gauge of dollar strength fell fractionally in cautious trading early Monday amid growing concern over the risk of recession. Contracts for the S&P 500 and the Nasdaq 100 rose about 0.4% after both benchmarks posted small gains on Friday. With the banking crisis casting a shadow over markets, traders are in for another bumpy week. Fed Minneapolis President Neel Kashkari said over the weekend that bank turmoil had increased the risk of a U.S. recession. Additionally, multiple Federal Reserve officials will speak this week, a key measure of the U.S. inflation is due and there are renewed geopolitical tensions with Russia to station tactical nuclear weapons in Belarus. Meanwhile, the yield on 10-year treasuries were trading at 3.37%. Crude prices were trading around $75-mark, while Bitcoin was hovering around 27,000-level. At 06:00 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.70% at 17,037.5. The Indian benchmark indices—Sensex and Nifty—closed lower for a second straight day after a volatile session tracking weak Asia and U.S. trade sparked by a sell-off in banks and a rally in IT stocks. The Indian rupee closed lower against the U.S. dollar as domestic equity market registered heavy outflows.

Economic Calendar:

• USD : CB Consumer Confidence (Mar) on 28^th March, 2023
• USD : Pending Home Sales (MoM) (Feb) on 29^th March, 2023
• INR : Infrastructure Output (YoY) (Feb) on 31^st March, 2023
• INR : Foreign Debt (USD) (Q4) on 31^st March, 2023

Brokerage Radar:

MS ON NBFCs: Move SBI Cards (OW) lower down as near-term pressures on stk could weigh on investor sentiment; Amid volatility in global interest rates & macro outlook, remain constructive given stronger-than-ever b/s, improving ROE, a potential Goldilocks phase ahead

CLSA ON KOTAK BK: Upgrade to buy, TP Rs 2080; Growth leader among large banks & valuation less demanding now; STK underperformed peers 50%-130% over past 3 years, Sustaining liability improvement key; Cost growth should moderate; expect cost income improvement; CEO transition an overhang (clarity should emerge in next 3-4months) Analysis suggests an IDBI Bk takeover (at 25% premium) would be 30% book accretive & 15%-18% earnings accretive, providing strong M&A optionality

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: The company appointed Srikanth Venkatachari as Chief Financial Officer with effect from June 1, 2023. Alok Agarwal, the incumbent CFO, will assume the role of Senior Advisor to RIL Chairman Mukesh Ambani.

Butterfly Gandhimathi/Crompton Greaves: Boards of the two companies have proposed a merger. In the scheme, public shareholders of Butterfly as on the record date will receive 22 equity shares of Crompton for every 5 equity shares held by them in Butterfly.

Bharat Electronics: The company signed a contract worth Rs 3,000 crore with defence ministry for supply of integrated electronic warfare systems for the Indian Army. The company also received several contracts aggregating to Rs 1,300 crore during last fortnight from the Indian Navy.

Sun Pharmaceutical Industries: The pharma major will acquire 60% shareholding in animal healthcare player Vivaldis Health and Foods for a consideration of Rs 143.3 crore, and the remaining 40% in future as per certain terms and conditions.

Karur Vysya Bank: The Reserve Bank of India imposed a fine of Rs 30 lakh against the bank for failure to report a few accounts as frauds to the regulator within a week of the respective Joint Lenders’ Forum decisions to do so.

Tata Steel: The company acquired 4.65 lakh shares of Tata Steel Utilities and Infrastructure Services at a premium of Rs 205 per share for Rs 10 crore.

Mahindra & Mahindra: The company will acquire around 7.68 crore shares of subsidiary Mahindra Aerospace, taking its shareholding to 100%, for Rs 31.47 crore.

NBCC (India): HSCC (India), a subsidiary of the company has been awarded a contract for vertical expansion of service block from first to ninth floor at AIIMS, New Delhi at a value of Rs 81.19 crore.

 Source: Moneycontrol, Bloomberg Quint, Investing

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