Market View 29th November 2022

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

Stocks opened on a cautious note in Asia on Tuesday after Federal Reserve officials stressed that more interest rate hikes were coming and as Covid protests eased in China amid a heavy police presence on city streets. Elsewhere, oil fell Tuesday after gaining Monday when OPEC+ was seen considering deeper output cuts amid a faltering market. Investor anxiety continued to grip Bitcoin, with the crypto market digesting BlockFi Inc.’s bankruptcy filling. The Indian benchmark indices Sensex and Nifty closed at new record highs, led by gains in oil and gas, and energy stocks. Broader market indices outperformed their larger peers. Rupee opened weaker against the U.S. dollar, but pared losses to end 0.02% higher. At 6:40 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.51% to 18,634.

Economic Calendar:

• USD : CB Consumer Confidence (Nov) on 29^th November, 2022
• USD : GDP (QoQ) (Q3) on 30th November, 2022
• INR : Infrastructure Output (YoY) (Oct) on 30th November, 2022
• INR : GDP Quarterly (YoY) (Q2) 30th November, 2022

Brokerage Radar:

UBS ON IGL: Buy, TP Rs 630; Stock is currently trading at 20% discount to its 5-year average PE, not reflecting CNG volume growth, improving margin outlook and 17% earnings CAGR over FY22-25E

CLSA ON PAYTM: Upgrade to Buy from Sell, TP Rs 650; Price correction makes risk-reward favourable; $1bn+ cash on BS; Net take-rate has improved 13bps, but fixed cost absorption remains key; Paytm trades at 16x EV/core Ebitda on an FY26 basis, discounted back to FY24

CITI ON SHRIRAM TRANSPORT: Resume Buy, TP Rs 1650; Near term performance contingent on realizing post-merger cost synergies & ability to drive cross-sell/AAUM growthDespite NIM headwinds, stable asset quality likely push medium-term ROEs to mid-teens.

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

NDTV/Adani Enterprises: NDTV promoter group RRPR Holding issued equity shares constituting 99.5% of its equity share capital to Adani Group-owned Vishvapradhan Commercial on Nov. 28.

Lupin: MedQuímica Indústria Farmacêutica, a Brazil-based wholly owned subsidiary of the company, has acquired all rights to nine medicines from BL Indústria Ótica, a subsidiary of Bausch Health Companies.

Can Fin Homes: The board has declared an interim dividend of Rs 1.50 on each share of face value Rs 2.

Adani Enterprises: The company denied reports that it is looking to raise $5 billion from wealth funds.

Bharat Bijlee: Life Insurance Corporation of India has reduced its shareholding in the company to 4.54% from 6.7%.

NBCC (India): The company has received work orders worth Rs 271.62 crore in two projects of Amrapali Group.

Motilal Oswal Financial Services: Motilal Oswal Alternates, an alternative arm of Motilal Oswal Group, has invested Rs 450 crore in in two projects of Shapoorji Pallonji Real Estate, a statement from the former said.

Lumax Industries: Sets board meeting on Dec. 7 to consider and approve the proposal for setting up a new manufacturing unit in Chakan, Pune and funding options.

Piramal Enterprises: Meeting of the Administrative Committee of the Board of Directors will be held Dec. 1 to consider and approve the issue of NCDs up to Rs 50 crore along with an option to retain oversubscription up to Rs 200 crore on a private placement basis.

Dredging Corp. of India: Plans to foray into foreign dredging market, reports PTI.

Kotak Mahindra Bank: Kotak Alternate Assets, a division of Kotak Investment Advisors plans to raise up to $1 billion to invest in data centre business, reports PTI citing sources.

Source: Moneycontrol, Bloomberg Quint, Investing

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