Market View 31st March 2023

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

Asia markets were set to rise after U.S. technology shares drove gains on Wall Street, despite pressure on financials after Federal Reserve officials reiterated their resolve to lower inflation. Alibaba Group Holding Ltd.’s logistics arm Cainiao Network Technology Co. — currently valued at more than $20 billion — has started preparations with banks for its Hong Kong initial public offering. The S&P 500 climbed 0.6% on Thursday while the tech-heavy Nasdaq 100 rose 0.9%, pushing further into a bull market. The gains on Wall Street came as market watchers digested a round of Fed commentary suggesting more monetary tightening was necessary, even after the collapse of three U.S. banks earlier this month. Meanwhile, the yield on 10-year treasuries was trading at 3.55%. Crude prices rose to $79-mark, while Bitcoin was hovering around 27,000-level. At 5:49 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.04% at 17,253. The Indian markets were shut on account of Ram Navami. On Wednesday, domestic benchmark indices recovered from their respective intraday lows in the last hour of trade after a volatile session. Indian rupee snapped its two-day rally against U.S. dollar amid rising crude prices and a stronger greenback in overseas market.

Economic Calendar:

• USD : Core PCE Price Index (MoM) (Feb) on 31^st March, 2023
• USD : ISM Manufacturing PMI (Mar) on 03^rd April, 2023
• INR : Infrastructure Output (YoY) (Feb) on 31^st March, 2023
• INR : Foreign Debt (USD) (Q4) on 31^st March, 2023

Brokerage Radar:

NOMURA ON LUPIN: BUY, TP Rs 653; Expect investors’ concern to remain high, Number of inspection observations for Pithampur unit is high; 6 observations were for this unit following inspection in Jan 2019; Assessment of the outcome cannot be made until details of the observation are available

NOMURA ON RIL: BUY, TP Rs 2850; Progressing towards listing JFSL; Listing expected in the coming months, Recent decline in the Co’s share price has been underpinned by index-related sell off; Outlook across Co’s businesses remains strong; Expect Co to lay down strong roadmap for growth in financial sector in coming AGM; Equity shareholders of RIL will receive 1 share of JFSL for each share held in RIL

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Bharat Dynamics: Signed a contract for Rs 8,161-crore with the Ministry of Defence for production and supply of Akash Weapon System to the Indian Army. The contract is signed for two regiments of the Indian Army and it is to be executed in three years. Company also received an order of Rs 261 Crore for CMDS for MLH Helicopters.

Rail Vikas Nigam: Received LoA from Ministry of Railways for manufacturing and maintenance of Vande Bharat trainsets including upgradation of the government manufacturing units and trainset depots. The total quantity is 200 trainsets and cost per set of Rs 120-crore. Rail Vikas Nigam Limited share will be 25% and period of execution is 82 months.

Hero MotoCorp: Two-wheeler maker Hero MotoCorp Ltd. on Thursday said it has elevated Niranjan Gupta as its new chief executive officer. Gupta, currently designated as chief financial officer, head-strategy and M&A, takes over as the CEO with effect from May 1, 2023, according to an exchange filing. Pawan Munjal will continue as executive chairman and whole-time director on the company’s board, it added.

Bharat Electronics: The Ministry of Defence signed two contracts with the company jointly worth Rs 2,394 crore. The first contract worth Rs 1,982 crore is for procurement of automated air defence control and reporting system ‘Project Akashteer’ for Indian Army. The second contract of Rs 412 is for acquisition of Sarang electronic support measure systems and associated engineering support package for Indian Navy.

Tata Power: Tata Power Solar Systems, a wholly owned subsidiary of the company, received the letter of award of Rs 1,755 crore to set up a 300 MW solar project for NLC India in Rajasthan.

JSW Energy: JSW Neo Energy, a wholly owned subsidiary of the company, has completed the acquisition of 1,753 MW of renewable energy assets from Mytrah Energy (India).

Source: Moneycontrol, Bloomberg Quint, Investing

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