Market View 29th May 2023

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

U.S. stock futures advanced as appetite for risk taking returned to global markets following the deal between President Joe Biden and House Speaker Kevin McCarthy on the U.S. debt ceiling. Contracts for the S&P 500 and Nasdaq 100 both gained about 0.5% as trading opened in Asia on Monday. Futures for benchmarks in Japan and Australia pointed upward and a gauge of U.S.-listed Chinese stocks rallied on Friday in a positive sign for Hong Kong traders returning from a long weekend. The agreement struck by Biden and McCarthy over the weekend needs to be passed by Congress, with the clock ticking down on June 5, when Treasury Secretary Janet Yellen has said cash will run out. There is plenty in the deal that Democrats and Republicans won’t like. U.S. markets are closed on Monday for a holiday, as are those in the U.K. and some parts of Europe. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.80%. Crude was trading above $77-mark, while Bitcoin gained 2% to trade around 28,000-level. At 5:21 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, up 0.46% at 18,632.5.

Economic Calendar:

• USD : CB Consumer Confidence (May) on 30^th May, 2023
• USD : JOLTs Job Openings (Apr) on 31^st May, 2023
• INR : Federal Fiscal Deficit (Mar) on 31^st May, 2023
• INR : GDP Quarterly (YoY) (Q4) on 31^st May, 2023

Q4 Results Today: Torrent Power, Allcargo Logistics, Adani Transmission, Ipca Laboratories, NHPC, KNR Constructions, Natco Pharma, Indian Railway Catering and Tourism Corporation, Sobha, Suprajit Engineering, Heidelbergcement India, Jamna Auto Industries, SML Isuzu, NIIT, Campus Activewear, NOCIL, Techno Electric & Engineering Company, Stove Kraft, Andrew Yule & Company, Asian Star Co., BCL Industries, Bengal & Assam Company, Best Agrolife, Confidence Petroleum India, Cosmo First, Dynamatic Technologies, Elpro International, Eureka Forbes

Brokerage Radar:

JEFFERIES ON GRASIM: Maintain Buy, TP Rs.2,105; Global Macro continue to weigh on standalone earnings; FY25 is likely to be a watershed year with paints foray planned from Q4FY24;  Slight trend reversal seen in VSF segment; Chemicals segment profitability slips further

NOMURA ON ASHOK LEYLAND: Maintain Buy, TP Rs.184; Q4 EBITDA margin beats consensus, Operating leverage and higher gross margins boost EBITDA margin, See further scope of improvement in realization and CV cycle to stay positive

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: Reliance Consumer Product, the FMCG arm of the company, partnered with U.S.-based General Mills to launch international corn chips snacks brand Alan’s Bugles in India.

Tata Motors: Moody’s Investor Service changed outlook for the company to positive from outlook over robust credit metrics and affirmed its B1 rating.

Central Bank of India: RBI imposed a penalty of Rs 84.50 lakh on Central Bank of India for failing to report certain accounts as fraud and recovering SMS alert charges from customers on flat basis.

HDFC: Market regulator SEBI has granted final approval for the proposed change in control of HDFC Capital Advisers in its capacity of an investment manager of the HCARE Funds and investment manager cum sponsor of HDFC Build Tech Fund.

Lupin: The company received approval from Health Canada to market generic version of tiotropium bromide inhalation powder under the name Spiriva for treatment of chronic obstructive pulmonary disease in Canada.

Godrej Properties: The company increased stake in Wonder City Buildcon to 100% from 74%, acquiring 2.9 crore shares (26% of overall shareholding) for Rs 45.13 lakh.

RITES/Power Finance Corporation: RITES and Power Finance Corporation signed an MoU  to explore avenues of mutual collaboration for consultancy works in transport and logistics, energy, water and sanitation, communication, social and commercial infrastructure.

GAIL/Axis Bank: GAIL (India) has partnered with Axis Bank to digitise bank guarantees under Society for Worldwide Interbank Financial Telecommunication.

Source: Moneycontrol, Bloomberg Quint, Investing 

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