View on market: Volatility Prevails, Market is searching for better value

Asian markets were to open lower on Wednesday in subdued trading following a holiday for U.S. markets. Major currencies were little changed. Futures for Hong Kong, Japan and Australia all declined, while contracts for the S&P 500 and Nasdaq 100 edged lower. Global stock market trading was light on Tuesday given the Independence Day celebration in the U.S. Europe’s Stoxx 600 inched up on trading volume that was a third lower than the 30-day average. Meanwhile, Brent crude was trading above $71 a barrel and West Texas Intermediate was above at $76-mark. The yield on the 10-year U.S. bond was trading at 3.84%, whereas Bitcoin was below 31,000-level. At 5:41 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.06% or 12 points at 19,508.5.

Economic Calendar:

  • USD : Initial Jobless Claims on 06th July, 2023
  • USD : JOLTs Job Openings (May) on 06th July, 2023
  • INR : Nikkei Services PMI (Jun) on 05th July, 2023
  • INR : FX Reserves, USD on 07th July, 2023

Brokerage Radar:

MS ON RBL BANK: UW, TP Rs 180; Gross loan growth moderated to +4.1% QoQ vs. +5.1% QoQ in F4Q23; That said, retail loan growth was strong at 9% QoQ vs. +8% QoQ prior qtr; Retail deposit rose 3% QoQ vs. 4% QoQ in F4Q23. Liquidity improved (LCR at 129% vs. 126%)

NOMURA ON BANDHAN BK: Buy, TP Rs 325; CFO resigns, soft pre-1Q update

Reported loans growth of -5% q-q / +7% y-y.; Deposits growth muted at flat q-q/+17% y-y.; CASA deposits declined by -8% q-q/-3% y-y, with CASA ratio at 36% (-330bp q-q / -720bp y-y)

CLSA ON TATA COM: Buy, TP Rs 1755; Kaleyra acquisition will boost co’s CPaaS offering; Kaleyra is a CPaaS provider with proprietary platforms & revenue of $339m of which 54% is from US market; Deal attractively valued at 0.75x vs TCom’s own valuation 2.5x EV/Sales

International Markets

U.S & Europe:

Particulars 03rd July Chg. Chg.(%)
Nasdaq 13816.77 28.85 0.21
Dow 34418.47 10.87 0.03
FTSE 7527.26 -4.27 -0.06
CAC 7386.70 -13.36 -0.18
DAX 16081.04 -66.86 -0.42
Dow Fut.* 34384.50 -34.00 -0.10

Asian markets

Particulars 05th July Chg. Chg.(%)
GIFT Nifty 19500.00 6.50 0.03
Nikkei 33303.00 -119.52 -0.36
Straits Times 3185.13 -18.64 -0.58
Hang Seng 19203.68 -212.00 -1.09
Shanghai 3233.28 -12.07 -0.37

ADR Watch:

Particulars 03rd July  Chg.       Chg.(%)
Dr. Reddy 62.53 -0.58 -0.92
HDFC Bank 70.79 1.09 1.56
ICICI Bank 23.39 0.31 1.34
Infosys 16.14 0.07 0.44
Wipro 4.79 0.07 1.48

Commodities & Currency

Particulars Current Price Chg.(%)
USD/INR 82.03 -0.04
Brent 75.80 -0.59
Gold 1932.50 -0.06
Silver 23.145 -0.13

FIIs & DIIs:

Particulars 04th July 03rd July
FIIs                          2134.33 1995.92
DIIs -785.48 -337.80

News Update:

Bandhan Bank: Quarterly Business Updates Q1 FY24-Total deposits increased 16.6% YoY and 0.4% QoQ to Rs 1.08 lakh crore.-CASA deposits dropped 2.8% YoY and 8% QoQ to Rs 39,076 crore.-Retail deposits increased 5.9% YoY to Rs 77,329 crore.-Pan bank collection efficiency increased to 98% from 96% a year ago.

RBL Bank: Quarterly Business Updates Q1 FY24-Total deposits grew to Rs 85,638 crore, up 8% YoY and 1% QoQ.-CASA increased to Rs 31,927 crore, rising 12% YoY and 1% QoQ.-CASA ration improved to 37.3% from 36% a year ago.-Gross advances increased to Rs 74,792 crore, rising 20% YoY and 4% QoQ

IndusInd Bank: Quarterly Business Updates Q1 FY24-IndusInd Bank’s net advances increased 21% YoY to Rs 3.01 lakh crore-The Bank’s CASA ratio stood at 39.9% YoY-Deposits increased 15% YoY to Rs 3.47 lakh crore

LTIMindree: The company will replace HDFC Ltd. in Nifty 50 after mega HDFC merger. It will move from Nifty Next 50 to Nifty 50. The replacement will come into effect on July 13. The replacement will also be applicable to Nifty50 Equal Weight index.

Samvardhana Motherson International: The company, via unit SMRP B.V., will buy 81% stake in Yachiyo’s 4W business, housed under Japan’s Yachiyo Industry Co. Ltd. The stake is valued at JPY 22.9 billion (Rs 1,301 crore) for 100% stake. Honda Motor will own 19%, making it 81:19 joint venture. 

Jindal Steel & Power: The company will replace HDFC in Nifty 100. 

Mankind Pharma: The company will replace HDFC in Nifty 500, Nifty 200, Nifty Large Midcap 250 and Nifty Total Market.

Bandhan Bank: Bandhan Bank Chief Financial Officer Sunil Samdani has resigned, with effect from Sept. 30, and decided to explore professional opportunities outside the bank. The bank is in the process of identifying a suitable candidate for the office of CFO.

State Bank of India: The lender has approved to acquired entire stake held by unit SBI Capital Markets in SBICAP Ventures for a cash consideration of Rs 708.07 crore.

Aurobindo Pharma: Company’s breast cancer biosimilar product, BP02 Trastuzumab, developed by unit Curateq Biologics has met its primary endpoint in Phase III clinical trials and has shown equivalent efficacy to Herceptin biosimilar.

Source: Moneycontrol, Bloomberg Quint, Investing 

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