Market View 29th June 2022

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

Stocks are set to log losses in Asia Wednesday on heightened worries about a gloomy economic outlook, amid monetary policy tightening and rise in crude oil prices. Futures fell for Japan, Australia and Hong Kong. US contracts were volatile after the S&P 500 tumbled and the tech-heavy Nasdaq 100 lost over 3%. As of 4:50 am, the Singapore-traded SGX Nifty–an early barometer of India’s benchmark Nifty 50–fell 0.94% to 15,705. Oil held gains, hovering around $112 a barrel. In cryptocurrencies, Bitcoin settled near $20,000 amid generally poor sentiment.

Economic Calendar:

• INR: M3 Money Supply on 29^th June 2022.
• INR: Fiscal Deficit Data 30^th June 2022.
• USD: Mortgage Market Index 29^th June, 2022.
• USD: Factory Output 05^th July, 2022.

Brokerage Radar:

JP MORGAN ON TATA STEEL: (management meet takeaways) OW, TP Rs 1400, India vol pick up as consumer de-stocking behind us; 2Q to see full impact of lower ASP/t & higher coal See upside risk to our net debt reduction forecast for FY23 given strong underlying cash flows, Strong Europe; India de-stocking over; net debt ($1bn) reduction on track,TATA Europe (TSE) remains strong: Large contracted sales volumes gives ASP visibility.

CLSA ON COLGATE: Sell, TP Rs 1490 Two key challenges with Colgate India are its contracting market share & high revenue concentration in oral care category. Expect parent entity to empower new CEO with local decision making, which is critical for its core segment.

CLSA ON MARUTI: Sell, TP Rs 7053,50% share in FY24 remains a dream Per our est, incremental vol of 291k units in FY24 would result in regaining 50% market share .This would lead to incremental rev of Rs233bn & incremental Ebitda of Rs28bn, with an Ebitda margin of 10.8% in FY24CL.

JEFFERIES ON 2Ws: Preferred buys – Eicher & TVS, followed by Bajaj Auto Over FY22-24, see EPS rising 120% for EIM/TVS &60-75% for BJAUT/HMCL,Abnormal 35% fall in 2W vols over FY19-22 has created a favorable base for double-digit CAGR in coming yrs.

ANTIQUE ON ASIAN PAINTS: Upgrade to Buy,However, in subsequent years, APNT has regained its margins by calibrated price hikes & operating scale,Foray of Grasim could impact smaller/regional players . Post recent correction & sustained demand for decorative paints, upgrade to buy

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update:

Reliance Industries: Reliance Jio Infocomm names Mukesh Ambani’s son Akash Ambani as Chairman.

SBI/ICICI Bank: The banks will invest Rs 4.03 crore each to pick up 9.54% stake in Perfios, an account aggregator.

HDFC Bank: The bank will invest Rs 4.02 crore for 9.54% stake in Perfios.

Route Mobile: The Company approved buyback of shares for an aggregate amount of Rs 120 crore. It will buyback 705,882 shares, representing 1.12% of the total paid up share capital at maximum buyback price of Rs 1,700 per share.

Jammu and Kashmir Bank: The bank will raise Rs 500 crore by equity and Rs 1500 crore via bonds in FY23.

ONGC: The Company said four die and five rescued in helicopter accident.

Glenmark Pharma: The Company’s U.S. arm acquired four OTC ANDAs from Wockhardt.

Godawari Power & Ispat: The Company has acquired 78.96% stake in Alok Ferro Alloys for Rs 126.98 crore.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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