Market View 2nd March 2023

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

Asian markets were poised for lower opening on Thursday as investors positioned for a higher peak in interest rates following another round of hawkish comments from Federal Reserve officials. Equity futures for benchmarks in Japan and Hong Kong fell while Australian shares edged higher. The headwinds for Asia come after the S&P 500 closed near the lowest in six weeks and Treasury yields climbed. Meanwhile, the yield on 10-year Treasuries advanced to 3.99%. Crude prices were trading around $84-mark, while Bitcoin was trading above 23,500-level. At 6:15 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.22% at 17,480.5. The domestic benchmark indices snapped their eight-day-long losing streak, supported by a rally in metal and bank stocks. The rupee closed higher against the U.S. dollar for the second day in a row as domestic equities recovered and crude prices eased.

Economic Calendar:

• USD : Initial Jobless Claims on 02^nd March, 2023
• USD : ISM Non-Manufacturing PMI (Feb) on 03^rd March, 2023
• INR : FX Reserves, USD on 03^rd March, 2023
• INR : Industrial Production (YoY) (Jan) on 10^th March, 2023

Brokerage Radar:

CLSA ON AXIS BANK: Buy, TP Rs 1250; Key +ve – post-deal CET-1 would be +13.7%, & this reduces risk of an immediate capital raise; Attrition in biz between 5%-20% for cards & deposits; Management maintained its profitability est. at Rs8bn-Rs8.5bn

MS ON MCX: UW, TP Rs 1125; Average daily traded value (ADTV) is a key driver of MCX’s profits and share price. In February 2023, ADTV (futures + 50%*options) was up ~12% MoM to Rs432bn owing to higher volumes in options. However, stock was down 7.4% during mth

NOMURA ON L&T TECH: Initiate Reduce, TP Rs 3050; Broad-based ER&D service providers gained market share vs pure-play players; Challenging macro to weigh on discretionary ER&D spend; Co’s attractive portfolio suit will be tested during slowing macro & SWC integration

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

CreditAccess Grameen: As per the fresh assessment order dated Feb. 28, 2023, received from the Assessment Unit of Income Tax Department the company Income Tax for AY18-19 was quashed from Rs 2,333 crore to Rs 122.63 crore.

Axis Bank Ltd.: The bank completed the acquisition of Citibank consumer business in India at a total cost of Rs 11,603 crore. The acquisition added over 1.8 million credit cardholders and deposits worth Rs 39,900 crore into Axis Bank’s fold.

Rail Vikas Nigam Ltd.: The company emerged as the lowest bidder for manufacturing-cum-maintenance of Vande Bharat train sets, including upgradation of the government manufacturing units and trainset depots, in joint venture with selected partners. The total quantity is 200 trainsets and cost per set is Rs 120 crore.

Sunteck Realty Ltd.: The company leased out two lakh square feet of its Mumbai-based premium commercial building, Sunteck BKC51, to Upgrad Education Pvt. for 29 years. The total revenue generated from the project will amount close to Rs 2,000 crore over the entire lease tenure.

Hindustan Aeronautics Ltd.: The Cabinet Committee on Security approved procurement of 70 HTT-40 basic trainer aircraft from the company for Rs 6,828 crore over six years. The board of the company will meet on March 10 to consider an interim dividend.

Larsen and Toubro Ltd.: The Union Cabinet approved signing of a contract with the company for acquisition of three cadet training ships at an overall cost of Rs 3,108.1 crore.

Dreamfolks Services Ltd.: The board approved acquisition of 60% stake in Vidsur Golf Pvt. for Rs 1.5 crore. The company will have a subsidiary in Singapore for this purpose.

Bajaj Finserv Ltd.: The company received certificate of registration from market regulator SEBI to commence its mutual fund operations under Bajaj Finserv Mutual Fund.

Adani Ports and Special Economic Zone Ltd.: Adani Agri Logistics Ltd., a step-down subsidiary of the company, incorporated a subsidiary named HM Agri Logistics to develop and operate silo complexes across the nation.

 Source: Moneycontrol, Bloomberg Quint, Investing

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