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

U.S. futures rose and oil dropped sharply on signs that the Biden administration is considering a massive release of crude from U.S. reserves to combat inflation. A slide in Chinese technology stocks weighed on Asia.   Shares weakened in China and Hong Kong following data showing contraction in Chinese manufacturing, while Japan’s equities steadied, with the yen pulling back after two days of gains. Earlier, the S&P 500 closed lower for the first time in five days and the tech-heavy Nasdaq 100 dropped as talks between Russia and Ukraine stalled.  Reports that Washington is preparing a plan to release roughly a million barrels of oil a day helped reverse a rebound in crude. The news comes ahead of an OPEC+ supply meeting later Thursday, where the cartel is expected to stick with its strategy of a modest output boost in May. Chinese stocks are under pressure as output data reflect the damage of renewed lockdowns in technology and factory hubs. Further denting sentiment, the Securities and Exchange Commission’s chief tamped down speculation that a deal is brewing to keep about 200 Chinese stocks from losing their listings. Meanwhile, China’s central bank vowed to boost confidence and provide more effective support to the economy.  Treasuries added to gains across the curve, while a portion of the curve has pulled out of a brief inversion that raised concerns about an impending recession. The dollar held a retreat.

Economic Calendar:

  • INR: Export Data on 1st April 2022.
  • INR: Forex Reserve on 1st April 2022.
  • USD: Unemployment Rate 1st April, 2022.
  • USD: Private Non Payroll on 1st April, 2022.

Brokerage Radar:

MORGAN STANLEY ON AXIS BANK: OW, TP Rs 930 Proposed price of $2bn (including est equity & excluding integration costs of $0.2bn) implies 18.7x P/E on normalized C20 financials Deal would help strengthen Bk’s franchise & reduce gap vs. peers Managing customer attrition is key.

JEFFERIES ON AXIS BANK: Buy, TP Rs 1040 Buy Citi’s India consumer & wealth biz It lifts credit-card base by 31% & wealth AUM by 42% Axis will pay $1.6bn + invest $450m in capital & $200m in costs — implies 21x PE on normal FY20 profit Churn in staff, clients key risks.

CLSA ON ASHOK LEYLAND: Buy, TP Cut to Rs 138 from Rs 157 Cut earnings estimates as commodity pressures are likely to impact margins in near term. However, remain positive as commercial vehicle volumes are on an upturn.

JEFFERIES ON HINDALCO: Buy, TP Rs 700 Embarking on a growth phase with plans to spend $8bn over next 5 yts Like rising growth focus after 30% debt reduction in last 1.5 years, although find plan for greenfield expansion at Novelis somewhat aggressive.

International Markets:

U.S & Europe:

Particulars 30th Mar Chg Chg(%)
Nasdaq 14,442.28 -177.36 -1.21
Dow 35228.81 -65.38 -0.19
FTSE 7,578.75 41.5 0.55
CAC 6,741.59 -50.57 -0.74
DAX 14,606.05 -214.28 -1.45
Dow Fut.* 35274.8 43.5 0.13

Asian markets:

Particulars 31st Mar Chg. Chg(%)
SGX Nifty 17,532.00 35 0.2
Nikkei 27,977.98 -49.27 -0.18
Straits Times 3,437.93 -4.68 -0.14
Hang Seng 22,084.42 -147.61 -0.66
Shanghai 3,266.43 -0.17 -0.01

ADR Watch:

Particulars 30th Mar Chg. Chg.(%)
Dr Reddy 56.64 -0.19 -0.33
HDFC Bank 61.23 -0.59 -0.95
ICICI Bank 19.01 0.11 0.58
Infosys 24.97 -0.14 -0.56
Tata Motor 28.25 -0.9 -3.09
Wipro 7.85 -0.19 -2.36

Commodities & Currency:

Particulars Current Price Chg(%)
USD/INR 75.91 -0.09
Brent 106.11 -4.77
Gold 1924.50 -0.47
Silver 24.795 -1.27

FIIs & DII:

Particulars 30th Mar 29th Mar
FIIs 1357.47 -801.41
DIIs 1216.00 1161.70

 

News Update:

Nazara Technologies : Subsidiary Nazara Pte Ltd (Nazara Singapore) will invest $2.5 million in BITKRAFT Funds. Out of which $0.875 million will invest upfront while the balance investment amount of $1.625 million will be deployed over a period of three years.

Tata Steel : Tata Steel transferred its entire stake in Tata Steel Special Economic Zone Limited to Tata Steel Utilities and Infrastructure Services for consideration other than cash. The company has executed an asset transfer agreement for the acquisition of itemised assets from Stork Ferro and Mineral Industries Private Limited to produce ferroalloys.

ONGC : The two-day offer for sale issue will close on March 31. The Government of India has decided to exercise the oversubscription option to the extent of additional 9.4 crore equity shares, in addition to 9.4 crore equity shares of the company. Accordingly, the total offer size for sale will be up to 18.8 crore shares or 1.5 percent of the total paid-up equity.

Axis Bank : The bank has acquired Citibank’s India consumer business from Citibank N.A. and the NBFC consumer business from Citicorp Finance (India), as going concerns, without values being assigned to individual assets and liabilities to either business. The bank has executed business transfer agreements with Citibank N.A. and Citicorp Finance (India) on March 30. The cost of acquisition is Rs 12,325 crore.

Max Healthcare : The block deal will happen today. Kayak Investment will sell $500 m worth of shares through a block deal in Max Healthcare.

Mangalam Cement : Promoter Vidula Consultancy Services acquired 2.26 lakh equity shares in the company through open market transactions. With this, its shareholding in the company stands at 9.92 percent, up from 9.1 percent earlier.

Source: Moneycontrol, Livemint,, Bloomberg, Investing 

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