Market View 4th January 2023

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

Shares in Asia faced a muted opening Wednesday after a decline in US stocks and the price of oil signaled unease about the dimming outlook for the global economy. Treasuries and the dollar rallied and the yen stabilized after a Tuesday jump U.S. stocks declined in the first trading session of the year as rout in major stocks dragged indices. The S&P 500 was trading 1% lower, while the tech Nasdaq 100 was down 1.4%. At 6:10 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, fell 0.34% to 18,243. Crude prices fell 3.1%, while gold was up 1%. Bitcoin broke 0.7% to trade around $16,600-level. Domestic indices recorded gains for the second day in a row, with the market breadth skewed in favour of the bulls. Rupee erased early gains of as much as 8 paise against the U.S. dollar to close lower against the strengthening greenback. Overseas investors were net sellers of Indian equities for the eighth day in a row on Tuesday. Foreign portfolio investors net sold Indian equities worth Rs 628.1 crore, while, the domestic institutional investors bought Rs 350.6 crore worth of Indian stocks.

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 : FX Reserves, USD on 06th January, 2023

Brokerage Radar:

MS ON AVENUE SUPERMART: OW, TP Rs 4590; Growth slower vs pre-Covid trends; Standalone 3Q rev of Rs113bn up 25% YoY (+9% QoQ), led by 16% increase in store count, on avg Est. that implied SSSG was 9%; On a 3-yr CAGR basis, rev up 18.7%, lower than 20.4% in 2Q

MS ON FEDERAL BANK: OW, TP Rs 165; Key positive was strong pickup in deposit growth (6.5% QoQ), led by term deposits (up 8% QoQ) – this was 16% YoY vs. 7% YoY last qtr; Gross Loan growth was also good at +4.3% QoQ (vs. +6.2% QoQ last qtr)

JEFFERIES ON INDUSIND BK: Buy, TP Rs 1600; Loan growth of 19% YoY/ 5% QoQ, which believe is led by uptick in retail loan growth (CVs & MFI); Deposits growth slower at 14% YoY/ 3% QoQ; See bk moving towards c.20% loan Cagr & 2% ROA; Val attractive @1.5x FY24 adj. PB

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: Reliance Consumer Products, the FMCG arm of Reliance Retail Ventures will acquire 50% in stake in Gujarat-based Sosyo Hajoori Beverages.

Advanced Enzyme Technologies: The company acquired 50% stake in Saiganesh Enzytech Solutions, and additional 4.83% stake in subsidiary JC Biotech.

RailTel Corporation of India: The company received a work order worth Rs 186.19 crore from South Eastern Coalfields for providing MPLS VPN services at 529 Locations under SECL Command Area for the period of five years.

NTPC: The company commissioned India’s first green hydrogen blending project in the piped natural gas network of NTPC Kawas township, Surat.

Equitas Small Finance Bank: The Reserve Bank of India allowed SBI Funds Management to acquire up to 9.99% shareholding of the bank through the schemes of SBI Mutual Fund.

PNC Infratech: The company’s subsidiary Akkalkot Highways received appointed date of Dec. 28, 2022, for construction of six-lane with access controlled greenfield highway on a section of NH-150C under Bharatmala Project.

LTIMindtree: Venugopal Lambu resigned from the position of whole-time director and president, Markets II, effective Jan. 10.

Can Fin Homes: The company appointed Apurav Agarwal as chief financial officer, effective Jan.4, 2023, after the resignation of Prashanth Joishy from the post.

Themis Medicare: The company launched Lenzetto, a global brand of Estradiol Novel Drug Delivery System for treatment of menopausal symptoms.

Satin Creditcare Network: The board will meet on Jan. 6 to consider raising funds through private placement of non-convertible debentures.

 Source: Moneycontrol, Bloomberg Quint, Investing

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