Market View 3rd June 2022

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

Asian shares rose on Friday after US equities snapped a two-day slide ahead of a key jobs report. Stocks gained in Japan, Korea and Australia while US futures edged up. Markets are shut in Hong Kong and China. On Thursday, the S&P 500 rose 1.8%, led by gains in consumer discretionary shares, while the tech-heavy Nasdaq 100 surged nearly 3%.The Singapore-traded SGX Nifty, an early barometer of India’s benchmark Nifty 50, rose 0.88% to 16,758.59 points as of 6:50 am. Elsewhere, OPEC+ agreed to increase the size of its oil-supply hikes by about 50% in July and August. Yet oil continued to rise.

Economic Calendar:

• INR: Cash Reserve Ratio on 8^th June 2022.
• INR: Interest Rate Decision on 8^th June 2022.
• USD: Wholesale Trade Sale 8^th June, 2022.
• USD: Unemployment Rate 3^rd June, 2022.

 

Brokerage Radar:

MORGAN STANLEY ON ULTRATECH: OW, TP Rs 8800 Expansion Plan Announced This is in line with our thesis of upcoming demand upcycle & Ultratech,as largest player, is gearing up for it. Moreover, its b/s is well-capitalised.

CLSA ON ULTRATECH: Buy, TP Cut to Rs 7640 Announced capacity expansion of 22.6mt, taking total capacity to 159mt by FY25 At $76/T expansion cost, est this will generate post-tax ROCE of 11% 23% capacity market share will further cement leadership position

JEFFERIES ON TCI EXPRESS: Buy, TP Rs 2300 Mgmt focused on doing profitable biz which reflects 25%+ ROE Believe co is in a sweet spot as GST accelerates organized players’ share in logistics Continuing double-digit rev growth, 30% EPS CAGR in FY22-25E are upside potential triggers
CREDIT SUISSE ON DELHIVERY: Initiate O-P, TP Rs 675 Deep moat with scale, growth & profitability O-P based on 1)favourable industry structure 2)structural growth (30%+) in e-com vols 3)strong moat 4)recent breakeven 5)diversified growth 6) potential merit as an internet play

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DII:

News Update

Bajaj Auto: Dealers are grappling with a severe shortage of inventory as the chip crunch and vendor issues are hurting the maker of Pulsar motorcycles.

UltraTech Cement: The company will invest Rs 12,886 crore towards 22.6 mtpa capacity expansion after the board approved mix of brown field and green field expansion. The move comes weeks after Adani Group aquired Holcim India’s Ambuja Cements Ltd. and ACC Ltd. to emerge as the country’s second largest cement maker.

GR Infraprojects: Subsidiary GR Madanpalli Pileru Highway Pvt. Ltd. has executed the concession agreement with the National Highways Authority of India.

Hindalco Industries: The company has completed the disinvestment process of Hindalco Do Brazil Industria Comercia de Alumina LTDA, a wholly owned stepdown subsidiary.

McDowell Holdings: The company approved the appointment of CA Krishna Mohan Maddula as CFO with effect from May 31, 2022.

Omaxe: The company incorporated a wholly-owned subsidiary, Worldstreet Sports Center.
May #AutoSales | Class 8 Truck Sales

Bharat Forge: North America class 8 truck sales at a 6-month low of 13,300 units,N America class 8 truck sales down 43.6% YoY & down 15% MoM

Balaji Amines: The company has approved fundraising by subsidiary Balaji Speciality Chemicals via an initial public offering comprising a fresh issue of Rs 250 crore and/or an offer for sale “by certain existing and eligible shareholders”.

Lupin hired an ex-US FDA officer to head their compliance operations. However, this is not the first time a former #US FDA officer has joined the Indian pharma sector.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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