Market View 3rd January 2023

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

Australian stocks were steady on their first trading day of the year after European shares rallied Monday, shaking off some of the tumult of 2022.Australian stocks were steady on their first trading day of the year after European shares rallied Monday, shaking off some of the tumult of 2022. Indian stocks are likely to follow domestic cues and China’s Covid fallout as the U.S. markets were closed on Monday, the New Year’s Day. At 5:29 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was up 0.35% to 18,286. Domestic indices—Sensex and Nifty—inched up to close with marginal gains on the first trading session of the year after opening flat. The rupee had a poor start to the year as it closed marginally lower against the U.S. dollar amid surge in crude prices and continuous foreign fund outflows. Overseas investors started the year by net selling stocks worth Rs 211 crore. This was the seventh session of foreign outflows. Foreign portfolio investors off loaded equities worth Rs 212.57 crore, while domestic institutional investors bought equities worth Rs 743.35 crore, as per NSE. Among global assets, Bitcoin was trading 0.65% higher around $16,700-level.

Economic Calendar:

• USD : JOLTs Job Openings (Nov) on 04th January, 2023
• USD : ISM Manufacturing PMI (Dec) on 04th January, 2023
• INR : Nikkei Services PMI (Dec) on 04th January, 2023
• INR : CPI (YoY) (Dec) on 12th January, 2023

Brokerage Radar:

UBS ON RIL: Buy, TP Rs 3250; Strong performance across segments to drive YoY/QoQ EBITDA growth; improving subs/ARPU for Jio; Retail rev growth continue

Higher transport fuel spreads & lower export taxes to lift O2C earnings; Retail rev growth & New Energy opportunities not priced in

JEFFERIES ON PIRAMAL PHARMA: Initiate Buy, TP Rs 150; CDMO biz is on cusp of a turnaround +steady growth for complex hospital generics & scaleup of consumer health should drive 12%/21% revenue/Ebitda Cagr over FY22-25E; Trades at attractive val of 13.3x/10.6x FY24/FY25 EV-EBITDA

JEFFERIES ON M&M FIN: U-P, TP Rs 175; For 3Q, reported healthy disbursement growth of 22% QoQ; Biz assets rose 20% YoY to Rs770bn, a tad softer than est; Collection eff. stable YoY at 95%; MMFS expects stage 3 assets to be c. 6.2% in 3Q (2Q 6.7%), which is encouraging

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Zee Entertainment Enterprises: The company will contest the insolvency plea by operational creditor Indian Performing Right Society over claims of Rs 211.42 crore.

Zomato: Gunjan Patidar, co-founder and chief technology officer of the company, resigned due to undisclosed reasons.

Maruti Suzuki: The production volumes of the company in December declined almost 18% y-o-y to 1.25 lakh units in December.

SBI/ICICI Bank/HDFC Bank: The Reserve Bank of India marks these three banks in its list of domestic systematically important banks.

Dabur India: The company completed acquisition of 51% shareholding of Badshah Masala pursuant to the share purchase agreement and shareholders agreement with the latter’s promoters and shareholders.

ONGC: The company’s Sagar Samrat offshore drilling rig, which has been commissioned as a mobile offshore production unit, started oil and gas production in Arabian Sea.

HFCL: The company and its subsidiary HTL have received an order worth Rs 95.38 crore from Reliance Projects & Property Management Services for supply of optical fiber cables.

Birlasoft: Chandrasekar Thyagarajan, chief financial officer of the company, has resigned due to personal reasons, effective Feb. 2, 2023.

L&T Technology Services: The board will meet on Jan. 19 consider and approve the financial results for quarter ended December 2022.

Angel One: The board will meet on Jan. 16 to consider and approve financial results for three months to Dec. 31, 2022 and the third interim dividend for the current fiscal.

Source: Moneycontrol, Bloomberg Quint, Investing

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