Market View 2nd December 2022

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

Stocks edged lower in Asia after US equities struggled for direction, with traders awaiting a jobs report later Friday for clues on the Federal Reserve’s next policy steps.  The Bloomberg Dollar Spot Index steadied after sinking to its lowest since June. Elsewhere, oil fluctuated after four days of gains with China further easing Covid restrictions and the US considering a pause in sales from its strategic reserves. Gold steadied. The Indian benchmark indices continued their record-breaking rally for the eighth day to close at new record highs. The broader market indices outperformed their larger peers, as the market breadth favoured bulls. Rupee continued to rise against the U.S. dollar for the second day closing higher against the greenback despite paring early gains. At 6:30 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.3% to 18,964.

Economic Calendar:

• USD : Unemployment Rate (Nov) on 2nd December, 2022
• USD : Nonfarm Payrolls (Nov) on 2nd December, 2022
• INR : FX Reserves, USD on 2nd December, 2022
• INR : Bank Loan Growth on 2nd December, 2022

Brokerage Radar:

CLSA ON PAYTM: Buy, TP Rs 650; On profitability, co expects to become free cash flow +ve in next 12-18 mths, in line with view of cash burn ending in next 4-6 qtrs; Co has more than $1bn net cash(equating to more than 25% of its current M Cap

MS ON PAYTM: EW, TP Rs 695; a) Management sounded confident of strong growth as well as achieving its adj. EBITDA break-even target by Sept-23, b) Management doesn’t see any significant risk to its payment margins, c) Per management, net payment margin should remain broadly steady

UBS ON RIL: Buy, TP raised to Rs 3250; Gearing up for India’s e-B2B expansion; Est. RIL’s e-B2B (new commerce) biz to grow 57% CAGR in FY22-30E reaching $30bn in FY30E; Est RIL to invest $50bn in New Energy biz, & segment’s EBITDA to reach Rs470bn in FY30E

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Yes Bank: The Reserve Bank of India allowed Advent and Carlyle to pick up 9.99% stake each in Yes Bank on a conditional basis.

NMDC: The government has invited expressions of interest to divest its 50.79% stake in the company. The company also reported a rise in production and sale of iron ore during November.

ONGC/Reliance Industries/GAIL: The government halved windfall tax on domestic crude to Rs 4,900 per tonne and reduced levy on diesel exports to Rs 6.5 per litre.

Hero MotoCorp/Maruti Suzuki/Tata Motors/Mahindra & Mahindra/Bajaj Auto/ Eicher Motors: Auto companies reported their monthly sales data for November.

PB Fintech: SoftBank’s SVF India Holdings is offering 22.8 million shares of the company at a floor price of Rs 440.2 each in a block trade, Bloomberg News reported citing terms of the deal.

Hindustan Unilever: The company has formed an ESG committee to assist the board in overseeing the company’s strategy relating to ESG and sustainability matters.

Man Infraconstruction: Suketu R Shah resigned from the position of Joint Managing Director of the company, with effect from Dec. 1.

Oberoi Realty: Shareholders of the company approved the purchase of premises from Oasis Realty, a joint venture entity.

MOIL: The company’s production increased 60% sequentially and sales grew 82% on-month during November.

NLC India: The company signed an MoU with Odisha government for setting up ground mounted/ floating solar power projects, pumped hydro storage projects, green hydrogen projects and any other renewable projects in the state.

SJVN: The company’ subsidiary SJVN Green Energy has signed an MoU with Grid Corporation of Odisha for developing 1000 MW Hydro Electric Projects and 2000 MW Solar Power Projects in Odisha by incorporating a joint venture company.

Source: Moneycontrol, Bloomberg Quint, Investing

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