Market View 5th July 2022

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

Asian stocks opened with gains Tuesday as investors evaluate the possible scrapping of some US tariffs on Chinese consumer goods. The Nikkei, Topix, Kospi rose while S&P ASX 200 advanced. Japan and China are set to release PMI reading as well. U.S. markets were closed overnight for a holiday. At 8:00 am, the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.26% to 15,864.50. Crude climbed toward $111 a barrel. Bitcoin retook the $20,000 level.

Economic Calendar:

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

Brokerage Radar:

MORGAN STANLEY ON AU SMALL BANK: OW, TP Rs 825 Initial update for F1Q23 – AUM growth strong at +5% QoQ and up 37% YoY vs. 27% YoY (partly helped by a weak base). Incremental funding cost increased by 40 bps QoQ. Collection efficiency remains strong.

JP MORGAN ON CEMENT: Remain cautious: further cuts in consensus earnings likely if coal prices stay high; pricing power Ltd Seasonally, demand recovers post rains in 2H, & any sharp decline in Asian coal prices should drive stks higher Dalmia – Top OW.

MOTILAL OSWAL ON LIC: Initiate buy, TP Rs 830 Biz drivers in place; execution remains key Est to deliver 10% CAGR in NBP during FY22-24E while VNB margin is likely to improve to 13.6% on improving product mix & higher profit retention However, Est operating RoEV to remain modest at 9.7%

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency

FIIs & DII:

News Update:

Tata Consultancy Services: A U.S. court reduced the punitive damages to $ 140 million in a trade secrets case with American software firm Epic Systems Corp. The company said that it has been advised that the order is appealable in the higher court.
Marico: The company increased its stake in Apcos Naturals by 4.14% to 56.52% for undisclosed consideration.

Cipla: The United States Food and Drug Administration conducted a pre-approval inspection at the company’s Indore plant from June 27 to July 1. It has received two observations on FDA Form 483 with respect to ANDA filed for the product to be manufactured at the said plant. There is no data integrity observation. The company said that it will submit its response to the U.S. FDA within the stipulated time.

Vedanta: The company reported 3% yoy increase in production of Aluminum in Q1 to 5.65 lakh tons. It also increased mining of domestic Zinc’s by 14% yoy to 2.52 lakh tons in the first quarter. Oil and Gas gross production reduced 10% yoy to 1.35 crore barrels of oil equivalent.

Kotak Mahindra Bank: The Reserve Bank of India imposed a penalty of Rs 1.05 crore due to inability of bank to credit amount involved in unauthorised electronic transactions within 10 working days. The Bank did not maintain/apply required margin on advances to stockbrokers. It failed to credit required amount to depositor education fund.

IndusInd Bank: The Reserve Bank of India imposed a penalty of Rs 1 crore for non-compliance with customer due diligence procedures in accounts opened via E-KYC.

Kirloskar Ferrous: The company has upgraded Mini Blast Furnace II at Koppal plant, Karnataka leading to increase in production capacity of pig iron 1.8 lakh metric ton p.a. to 2.176 lakh metric ton p.a. Consequently, total manufacturing capacity of pig iron at company level has increased to 6.09 lakh metric ton p.a.

Tata Steel: Tata Steel, through its subsidiary Tata Steel Long Products has completed the acquisition of Neelachal Ispat Nigam.

Tata Power: Company to invest Rs 3,000 crore to set up Tamil Nadu solar plant.

LIC: The company approved investment of Rs 127.07 crore in LIC (Nepal) via rights issue.

Emami: The company has increased its stake in its subsidiary company Brillaire Science from 72.02% to 77.53%.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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