Market View 2nd May 2023

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

Asian equity futures point to a mixed opening as trading resumes in most of the region’s markets following a holiday on Monday. Investors are weighing JPMorgan Chase & Co.’s purchase of First Republic Bank along with expectations the Federal Reserve will hike interest rates once again this week. Japanese stocks are poised to rise while Hong Kong and Australian shares may open little changed. U.S. shares steady on Monday after notching two straight months of gains as traders waded through a batch of corporate results. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.57%. Crude prices traded below $80-mark, while Bitcoin was trading above 28,000-level. At 5:35 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.15% at 18,246. After a week of last-hour rallies, BSE Sensex closed above 61,000 and NSE Nifty 50 closed above 18,000 on Friday, with IT, public sector banks and media stocks leading the advance. Indian rupee erased early gains to close lower against the U.S. dollar for the second day in a row.

Economic Calendar:

• USD : JOLTs Job Openings (Mar) on 02^nd May, 2023
• USD : Services PMI (Apr) on 03^rd May, 2023
• INR : Nikkei Services PMI (Apr) on 03^rd May, 2023
• INR : M3 Money Supply on 03^rd May, 2023

Q4 Results Today: Tata Steel, Adani Total Gas, Ambuja Cements, Varun Beverages, KEI Industries, Spandana Sphoorty Financial, Newgen Software Technologies, Astec Lifesciences, Home First Finance Company India, UCO Bank, Punjab & Sind Bank, Cigniti Technologies, DCM Shriram, Fino Payments Bank, Sasken Technologies

Brokerage Radar:

JEFFERIES ON FINOLEX CABLES: Buy,  TP raised to Rs 1020; Despite stk up +60% YTD, trades at 23xPE on FY24e EPS, at a disc. of 15-26% to peers; Optic Fiber Cables can benefit from impending 5G roll-out; FMEG margins have now turnaround

Est. RoCE to rise by +500bps over FY22-25e

CLSA ON ULTRATECH CEMENT: Downgrade to U-P, TP Rs 7900; 4Q in line but val offers ltd. room; Profitability largely in line & cost support to continue; Capacity expansion largely on track; Forecast a 9% volume Cagr & Ebitda/t to reach Rs1,300 by FY26

MS ON SBI CARDS: OW, TP raised to Rs 965; +ves: cost of funds pressure likely reducing; revolver share flat but balances growing (25% YoY, 5% QoQ), signaling no underlying problems; -ve: marginally higher credit costs; Believe stock will see +ve sentiment as rates peak

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Jet Airways: Sanjiv Kapoor, the CEO-designate of the grounded airline resigned, confirmed owner Jalan-Kalrock Consortium said in a statement.

Ultratech Cements: The board approved merger three subsidiaries—Ultratech Nathdwara Cement, Swiss Merchandise Infrastructure, and Merit Plaza—with the company. The appointed date of the scheme of amalgamation is April 1, 2023.

Life Insurance Corporation of India: The finance ministry has approved the appointment of managing director Siddhartha Mohanty as chairperson till June 29, 2024, and thereafter as chief executive officer and managing director till June 07, 2025.

Biocon: Biocon Biologics’ monoclonal antibodies drug substance manufacturing facility in Bengaluru has received a Certificate of GMP Compliance for biosimilar Bevacizumab from Health Products Regulatory Authority, Ireland.

Gujarat Alkalies and Chemicals: GACL-NALCO Alkalies & Chemicals, a joint venture between the company and National Aluminium Company, has commissioned the second unit of 130MW captive power plant at Dahej.

Coromandel International: Dare Ventures, a wholly owned subsidiary of the company acquired 7.4% in Dhaksha Unmanned System for Rs 15.99 crore, increasing its overall stake to 16.82%.

Dalmia Bharat: The company’s subsidiary Dalmia Cement (Bharat) will sell its entire investment of 1.87 crore shares, representing 42.36% of the share capital, of associate company Dalmia Bharat Refractories for Rs 800 crore to promoter group company Sarvapriya Healthcare Solutions.

Source: Moneycontrol, Bloomberg Quint, Investing

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