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

Asian stocks advanced on Monday, amid volatility in equity, bond, currency and commodity markets. Equities in Japan and Australian rose 1% each after a decline in S&P 500 and Nasdaq 100 contracts. The Wall Street ended in the green on Friday and will be closed for the Independence Day break. At 6:20 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.63% to 15,844. Crude oil was near $108 a barrel. Bitcoin hovered at $19,000 level.

Economic Calendar:

  • INR: Service PMI on 5th July 2022.
  • INR: IIP Data 12th July 2022.
  • USD: Non-Manufacturing PMI 06th July, 2022.
  • USD: Factory Output 05th July, 2022.

Brokerage Radar:

HAITONG ON FEDERAL BANK: Reiterates ‘outperform’ and maintains target price at Rs 123 apiece Sees improvement in growth momentum from Q1 business update. Gross loans grew 16.3%/4.6% YoY/QoQ compared to 9.5%/2.8% in March quarter. Retail loans grew 16.7% YoY Vs 10.4% YoY in Q4FY2021-22. Retail of wholesale book ratio remained similar to FY2022 numbers Retail customers deposits growth of 10% YoY.

JEFFERIES ON METALS:Cut FY23-24 EPS for JSTL/HNDL/TATA by 2-34% & are 10-31% below Street Believe it’s still early to turn constructive as PB vals remain above historical troughs, earnings visibility is poor, & consensus downgrades will continue Retain Hold- TATA/HNDL U-P- JSW.

MORGAN STANLEY ON RIL: OW, TP Rs 3253 $16bn M Cap erosion following July 1 regulations implies a permanent $6-7/bbl lower refinery margin for RIL With govt looking to review every fortnight, RIL can sustain refinery margins at $15/bbl or above Even $15/bbl GRM would imply earnings upgrades

International Markets:

U.S & Europe:

Particulars      01st June    Chg Chg(%)
Nasdaq 11,127.84 99.1  0.9
Dow 31097.26 321.83 1.05
FTSE 7,168.65 -0.63 -0.01
CAC 5,931.06 8.2 0.14
DAX 12,813.03 29.26 0.23
Dow Fut.* 30880.5 -216.80 -0.70

Asian markets:

Particulars    04th July    Chg. Chg(%)
SGX Nifty 15,710.00 -34.5 -0.22
Nikkei 26,085.07 149.45 0.58
Straits Times 3,115.15 19.56 0.63
Hang Seng 21,675.83 -183.96 -0.84
Shanghai 3,385.68 -1.96 -0.06

ADR Watch:

Particulars     01st June Chg. Chg.(%)
Dr Reddy 15,710.00 -34.5 -0.22
HDFC Bank 26,085.07 149.45 0.58
ICICI Bank 3,115.15 19.56 0.63
Infosys 21,675.83 -183.96 -0.84
Tata Motor 3,385.68 -1.96 -0.06
Wipro 5.41 0.1 1.88

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 79.05  0.10
Brent 111.21 -0.38
Gold 1810.25  0.49
Silver 19.773 0.54


Particulars         01st June         30th June 
FIIs -2324.74                      -1138.05                      
DIIs  1310.71 1378.20

News Update:

HDFC Bank, HDFC: Stock exchanges give nod for HDFC Bank-HDFC merger. Observation letters of ‘no adverse observations’ from BSE and ‘no objection’ from NSE for HDFC Bank – HDFC merger.

HDFC: The company’s profit on sale of investment on account of the Corporation’s 10% stake sale in HDFC Capital Advisors during quarter ended June 30 was Rs 184 crore. Gross income from dividend for the quarter was Rs 184 crore. Gross income from dividend for the quarter was Rs 687 crore. Pursuant to the buyback option embedded in the home loan arrangement between the company and HDFC Bank, the company assigned loans to HDFC Bank amounting to Rs 9,533 crore.
CSB Bank: The company’s Q1FY23 Business Update showed that advances grew 2.1% QoQ (15% YoY) to Rs 16,333 crore. Gold advances grew 8.2% QoQ to Rs 7,099 crore. Non-gold advances fell 2.1% QoQ to Rs 9,233 crore. Deposits rose 0.4% QoQ while CASA improved to 35.1% from 33.7% QoQ.

IDFC First Bank: The company’s Q1FY23 Business Update showed that advances grew 6.7% QoQ & 21% YoY to Rs 1,37,685 Cr. Retail business represents 65.7% of the overall funded assets as of June 30, 2022 and Commercial business (CV, Business Banking etc.) constitutes 7.8% of the total funded assets. Mortgage business including home loans grew by 32% on a Y-o-Y basis and constituted 37.5% of the retail book. Deposits grew by 9.8% QoQ & 21% YoY and CASA improved to 50.3% vs QoQ 48.4%.

Avenue Supermart (Dmart): The Company reported Q1FY23 standalone sales of Rs 9,806.89cr Vs YoY Rs 5,031.75cr (+95%) QoQ Rs.8606cr (+14%). As Q1 of FY21 and Q1 of FY22 both were disrupted due to Covid, comparing it with Q1FY20 the sales has grown at 19.2% CAGR in last 3 year in Q1FY23. Share is trading at PE of 68 FY 24 EPS.

Karnataka Bank: The company reported YoY Advances growth of 12.59% in Q1FY23.

Deepak Nitrite: The company carried our restoration steps and submitted stability certificates to government with respect to fire incident at Nandeswari plant. Gujarat Pollution Control Board has issued directions revoking the closure order and allowed the company to operate a part of the plant, 50% of consented capacity of Nitro section.

Hindustan Zinc: The company shared its Q1FY23 business update in which Mined Metal Production came at 252 kilo tonnes vs 295 kilo tonnes QoQ (-15%) and 221 kilo tonnes YoY (+14%). Sequentially it was lower on account of lower ore production at mines & overall metal grades. Integrated metal and zinc production rose 10% YoY eah while lead production rose 11%.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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