Market View 30th May 2023

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

Asian markets were poised for a cautious open on Tuesday as White House and Republican congressional leaders stepped up lobbying to ensure Congress passes a debt-accord to head off a U.S. default. Futures for Japan and Australia pointed to the slimmest of moves when those two markets open, while contracts for Hong Kong suggest more declines. A key gauge of Chinese shares is within a whisker of a bear market as a wobbling economic recovery, intensifying geopolitical tensions and a weaker yuan kept investors away. Contracts on the S&P 500 and Nasdaq 100 rose 0.3% and 0.5%, respectively, as they opened in Asia after each making small gains Monday in holiday-thinned trading. U.S. markets were closed for Memorial Day. European stocks wavered in muted holiday-affected trading Monday. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.77%. Crude was trading above $77-mark, while Bitcoin traded around 28,000-level. At 05:33 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, up 0.02% at 18,694.5. Domestic benchmarks held on to steady gains to end higher as U.S. lawmakers reached a debt ceiling limit settlement, with NBFC and consumer durable stocks leading the advance. The Indian rupee closed lower against the U.S. dollar as it faced a stronger greenback in the overseas markets.

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: Patanjali Foods, Adani Ports and Special Economic Zone, Apollo Hospitals Enterprise, Welspun Corp, Torrent Pharmaceuticals, Aegis Logistics, Prestige Estates Projects, Mazagon Dock Shipbuilders, V-Guard Industries, Rhi Magnesita India, Graphite India, Action Construction Equipment, FIEM Industries, Greenply Industries, Lemon Tree Hotels, 3M India

Brokerage Radar:

MS ON RIL: Monthly margin tracker points to an oil to chemicals margin recovery despite volatility in fuel margins; Chemicals to drive EPS upgrade cycle; RIL’s energy vertical is key to keeping net debt/EBITDA below one; It usually invests $17 billion annually in chemicals, telecoms, new energy and retail

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: