Market View 3rd May 2023

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

Shares in Asia are set to decline after Wall Street fell on renewed concern about the banking sector before a Federal Reserve’s decision on Wednesday where policy makers are expected to raise interest rates. Equity futures in Japan, Australia and Hong Kong all declined, while U.S. contracts edged lower in early Asian trade. The S&P 500 slipped 1.2% Tuesday with the financial sector the second-worst performer after energy. U.S. regional lenders PacWest Bancorp and Western Alliance Bancorp both slid at least 15% just a day after JPMorgan Chase & Co.’s acquisition of First Republic Bank seemed to bolster confidence in the sector. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.42%. Crude prices fell 5% below $76-mark, while Bitcoin was trading above 28,000-level. At 5:42 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.39% at 18,149.5. Domestic benchmark indices—BSE Sensex and NSE Nifty 50—started the week strong by closing 0.4% and 0.46% higher, respectively, carried on the back of a rally in metals, IT and energy stocks. Indian rupee continued its downtrend against the U.S. dollar for a third day as strong domestic equities failed to spur investor interest ahead of the U.S. Fed policy announcement.

Economic Calendar:

• USD : Services PMI (Apr) on 03^rd May, 2023
• USD : Fed Interest Rate Decision on 03^rd May, 2023
• INR : Nikkei Services PMI (Apr) on 03^rd May, 2023
• INR : M3 Money Supply on 03^rd May, 2023

Q4 Results Today: Petronet LNG, Adani Wilmar, Titan Company, KEC International, Havells India, Tata Chemicals, SIS, ABB India, Solar Industries, KPR Mill, Godrej Properties, Sona BLW Precision Forgings, Jyothy Labs, Anupam Rasayan, Bajaj Consumer Care, MRF, Reliance Power, Cholamandalam Investment & Finance, Sula Vineyards

Brokerage Radar:

CS ON INTERGLOBE AVIATION: O-P, TP Rs 2450; GoFirst bankruptcy adds to tailwinds; Reasonable spread at comparatively lower yields on lower fuel prices to drive sustainable growth

CLSA ON AMBUJA CEMENT: U-P, TP Rs 395; 4Q largely in line; guidance reiterated of an Rs300-400/t Ebitda improvement in FY24 & doubling of capacity in 5 yrs ; Lower costs lead to sequential rise in profitability; Factor in a c.9% vol Cagr over FY23-26 & Ebitda/t Cagr of 15%

MS ON TATA STEEL: EW, TP Rs 110; Standalone EBITDA much stronger, led by both better realizations and lower opex. This drove good beat on consol basis; European business, however, continues to struggle & was a big drag

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Mahindra & Mahindra Financial Services: April Monthly Business Updates (YoY)-Overall disbursement increased 39% to Rs 3,775 crore.-Collection efficiency improved to 92%, against 90% a year ago.-Stage-3 and Stage-2 assets have remained range-bound compared with March.-The NBFC has a liquidity chest of around three months’ requirement.

Vedanta/Hindustan Zinc: Promoter Vedanta had encumbered 8.05 crore shares of subsidiary Hindustan Zinc on April 28, representing 1.91% of the total share capital of the latter, for a loan to raise long-term working capital.

Indostar Capital Finance: The company will open its two-day offer for sale on May 3, where promoters Everstone Capital Partners II LLC and Indostar Capital will offload more than 1.93 crore shares, representing 14.21% stake of the company.

Ahluwalia Contracts: The company received an order worth Rs 2,450 crore from Rail Land Development Authority for redevelopment of Chhatrapati Shivaji Maharaj Terminus at Mumbai.

Infosys: The IT bellwether has collaborated with software provider SolarWinds to help the latter advance to a new SaaS model.

Indian Bank: The bank reduced treasury bills linked lending rates across tenors in the range of 5-25 basis points, effecting May 3, 2023. The bank has kept marginal cost of funds based lending rates unchanged across tenors.

Source: Moneycontrol, Bloomberg Quint, Investing

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