Market View 4th May 2023

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

U.S. stocks rallied and bond yields dipped as the Federal Reserve signaled a pause in rate hikes in the coming days. The S&P 500 inched up 0.2%, whereas the Nasdaq 100 gained 0.3% shortly after the Fed policy announcement. The yield on 10-year Treasuries declined four basis points to 3.38%. Crude price tanked 3.8% to slightly above $68 a barrel, while gold price rose 0.6%. Meanwhile, Bitcoin declined 0.4% to trade around $28,600 level. 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 snapped its three-day decline against the U.S. dollar to close in green for a third day as strong domestic equities failed to spur investor interest ahead of the U.S. Fed policy announcement.

Economic Calendar:

• USD : Initial Jobless Claims on 04^th May, 2023
• USD : Nonfarm Payrolls (Apr) on 05^th May, 2023
• INR : Deposit Growth on 05^th May, 2023
• INR : Bank Loan Growth on 05^th May, 2023

Q4 Results Today: Tata Power Company, Adani Enterprises, Hero MotoCorp, TVS Motor Company, Ceat, Dabur India, Blue Star, United Breweries, Sundram Fasteners, Mindspace Business Parks REIT, Housing Development Finance Corporation, IDFC, Choice International, Bombay Dyeing and Manufacturing Co., Jammu & Kashmir Bank

Brokerage Radar:

JEFFERIES ON SONA BLW: Buy, TP Rs 600; Strong 4Q with revenues, EBITDA & PAT up 35-57% YoY, 6-14% above JEFe; A new order win for bundled differential system for class-4 electric CVs, although small in quantum, underlines Sona’s rising product capability & customer traction

NOMURA ON ABB: Neutral, TP Rs 3274; Q1CY23 beat led by significantly higher than profitability of electrification segment; Gross margin at 40.4% (up 360bp y-y, +175bp q-q) was higher than est. of 37.1%; EBITDA margin at 11.8% beat est. of 9.9%

Trades at 66x CY24F EPS of INR52.5

MS ON TITAN: OW, TP Rs 3003; 4Q broadly in line with estimates. Management pleased with 4Q performance & optimistic on future growth as mature & emerging businesses continue to grow well

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Central Bank of India: The state-run bank clarified that it has a total exposure of Rs 1,987 crore to Go Air as of March 31, 2023, representing 0.91% of total advances. SJVN: The company bagged an order of Rs 1,200 crore from Gujarat Urja Vikas Nigam to develop a 200 MW grid-connected solar power project in Khavda Solar Park, Gujarat.

GR Infraprojects: The company has been selected as the lowest bidder for the construction of four-lane highway along the NH-731A in Kausambi, Uttar Pradesh. The bid project cost is Rs 737.17 crore.

AstraZeneca Pharma India: The company has received approval from Central Drugs Standard Control Organisation to import breast cancer drug Trastuzumab deruxtecan, or Enhertu, for sale and distribution in India.

TVS Motor Company: The company declared a goodwill benefit scheme for customers who paid over and above the threshold limit fixed by FAME scheme. The overall cost impact of the scheme is expected to be under Rs 20 crore.

Dabur India: Dabur Nepal, a subsidiary of the company, received the approval of Investment Board of Nepal for an additional investment of 969 crore Nepalese rupees (approximately Rs 608 crore) . The capital will enable Dabur Nepal to fund its capacity expansion, product diversification, factory upgradation, etc. over next four to five years.

HG Infra Engineering: The company will sell its entire shareholding in four wholly owned subsidiaries—Gurgaon Sohna Highway, HG Rewari Ateli Highway, HG Ateli Narnaul Highway, and HG Rewari Bypass—to Highway Infrastructure Trust for an equity value of Rs 531 crore.

Bosch: Markus Bamberger has resigned as the chairman and director of the company, with effect from close of business hours on Aug. 1, 2023, as part of succession planning.

Source: Moneycontrol, Bloomberg Quint, Investing

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