Market View 29th December 2022

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

Fresh concerns about the spread of Covid-19 from China unnerved investors, dragging Asian stocks lower in trade. Australian shares fell and contracts for equity benchmarks in Japan, Singapore and Taiwan dropped. US shares were lower for a second day on Wednesday after, the S&P 500 slid 1.2% to the lowest level in more than a month. The 10-year Treasury yield climbed and the dollar strengthened. The crude also fell, declining 1.7%, whereas gold futures dipped 0.8%. Bitcoin declined 0.5% to trade around $16,600-level. Indian benchmark indices snapped their two-day rally to close in the red, tracking weak performance of their Asian peers. Overseas investors in Indian equities remained net sellers for the fourth day in a row on Wednesday. Foreign portfolio investors offloaded equities worth Rs 872.6 crore, while the domestic institutional investors remained net buyers for the 16th day in a row and mopping up stocks worth Rs 372.9 crore, according to NSE data. The rupee closed mostly flat against the U.S. dollar with support from softening crude prices.  At 6:21 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.39% to 18,066.5.

Economic Calendar:

• USD : Initial Jobless Claims on 29th December, 2022
• USD : ISM Manufacturing PMI (Dec) on 04th January, 2023
• INR : Infrastructure Output (YoY) (Nov) on 30th December, 2022
• INR : Foreign Debt (USD) (Q3) on 30th December, 2022
• INR : Bank Loan Growth on 30th December, 2022

Brokerage Radar:

MOSL ON IPCA LABS: Buy, TP Rs 1000; Progressing steadily to reclaim growth path

Domestic formulation is key driver of its sales growth, fueled by market outperformance in pain/dermatology/urology and supported by higher MR base; Exports likely to revive from FY24

PHILIPCAP ON BIOCON: Buy, TP Rs 350; Successfully closed ambitious acquisition of Viatris’ biosimilar operation; Acquisition makes BBL a vertically integrated global biosimilar player; est. to achieve global scale with sales/EBITDA of US$ 1.58bn/ US$ 425mn in FY24

KOTAK INST EQ ON GMR AIRPORTS: Buy, TP Rs 43; GAL partly monetizing stake in assets; these materializing can help increase GMRI’s retail quotient of biz & take out corporate + GAL standalone debt; remaining project capex is already fully funded

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

KFin Technologies: The financial services platform will make its debut on the BSE and NSE on December 29. The issue price has been fixed at Rs 366 per share.

Wipro: The company completed the acquisition of remaining 3.3% stake in Encore Theme Technologies.

Mahindra & Mahindra: The company will raise its stake in associate MITRA Agro Equipments to 100% from the current 47.33%.

Tata Power: The company’s subsidiary Tata Power Renewable Energy received the letter of award from Tata Power Delhi Distribution Ltd. for setting up a 255 MW hybrid wind and solar) power project in Karnataka.

Ashoka Buildcon: The company has been awarded three projects worth Rs 754.57 crore from Madhya Pradesh PoorvKshetra Vidyut Vitaran Company.

Spandana Sphoorty Financial: The company will transfer stressed loan portfolio, including written off loans, worth Rs 323.08 crore to an asset reconstruction company for a consideration of Rs 95 crore.

JSW Energy: The company implemented the NCLT-approved resolution plan for Ind-Barath Energy (Utkal) and acquired the same. Garware Technical Fibres: The company closed its buyback scheme are buying 2.4 lakh shares at Rs 3,750 apiece.

Bank of India: The public sector lender infused capital of Rs 1.13 crore in PSB Alliance as a part of strategic investment. With this, the bank raised stake in PSB Alliance to 8.33%, from 7.14% earlier.

Source: Moneycontrol, Bloomberg Quint, Investing

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