Market View 5th June 2023

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

Asian markets were poised to climb on Monday after the S&P 500 rose to the cusp of a bull market amid strengthening bets for a Federal Reserve rate pause this month. Oil rallied on a supply cut from Saudi Arabia. Crude jumped more 3% on the pledge to make an extra 1 million barrel-a-day reduction in July, which trims Saudi Arabia’s production to the lowest level for several years. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring. As stocks rose on Friday, Wall Street’s “fear gauge” plummeted to pre-pandemic levels. The Cboe Volatility Index, or VIX, dropped below 15 from an average of 23 in the past year. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.69%. Crude advanced over 2% above $77-mark, while Bitcoin was trading around 27,000-level. At 5:29 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.48% at 18,717.5.

Economic Calendar:

• USD : Services PMI (May) on 05^th June, 2023
• USD : ISM Non-Manufacturing PMI (May) on 05^th June, 2023
• INR : Nikkei Services PMI (May) on 05^th June, 2023
• INR : Interest Rate Decision on 08^th June, 2023

Brokerage Radar:

JEFFERIES ON M&M FIN:

Hold, TP Rs 270; For May 23, MMFS’s loans grew 1.9% MoM.; Disbursement growth healthy at 39% YoY, broadly as expected. Collection efficiency at 96% was slightly higher vs. May’22 (95%); At 2.1x FY24E BV, risk/reward appears balanced

MS ON SBI LIFE:

OW. TP Rs 1650; Transfer of policyholder-related assets & liabilities of Sahara Life; Co has clarified this is not a merger but a mere transfer of policyholder-related assets & liabilities. These should be less than 0.5% of B/S of co.

UBS ON AEGIS LOGISTICS:

Buy, TP Rs 480; Significant capacity expansion in both LPG and Liquids businesses; Healthy quarter; EBITDA up by 42% YoY

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

SBI Life Insurance:

Insurance regulator IRDAI approved transfer of life insurance business of Sahara India Life Insurance Co. to SBI Life, with immediate effect. Indian Overseas Bank: The Reserve Bank of India imposed a monetary penalty pf Rs 2.20 crore on the bank over regulatory non-compliance.

Tech Mahindra:

The company’s subsidiary Comviva Technologies and step-down subsidiary Comviva Technologies B.V. have agreed to sell 0.04% and 99.96% shareholding, respectively in Comviva Technologies do Brasil Indústria, Comércio, Importação e Exportação to Druid Internet Systems Comércio E Serviços for an upfront payment of $20,000 and deferred payment of $1.42 million.

Tata Chemicals:

The company signed an MoU with the Government of Gujarat to set up a 20 GW capacity lithium-ion cell manufacturing giga factory with an investment of Rs 13,000 crore, the state government said in a statement. The company will reorganise its U.S. operations to rationalise the number of intermediate entities.

Dish TV:

The company cancelled the extraordinary general meeting scheduled on June 9 after the resignation of Zohra Chatterji from the position of non-executive independent director.

Zydus Lifesciences:

The U.S. FDA inspection of the company’s animal health drug manufacturing facility at SEZ, Ahmedabad was closed with nil observations.

NTPC:

The company declared on commercial operation the fifth and last part of 300 MW Nokhra solar PV project of NTPC Green Energy at Bikaner, Rajasthan with 50 MW capacity.

Godrej Properties:

The company bought the remaining 26% stake in Godrej Home Constructions for Rs 14.99 crore, taking its total shareholding to 100%.

PI Industries:

The company completed acquisition of 100% stake of Therachem Research Medilab (India) and Solis Pharmachem, as well as acquisition of certain identified assets of TRM U.S. by PI Health Sciences U.S.A.

Lemon Tree Hotels:

The company started two hotels in Agra and Bhopal, that will be managed by its subsidiary Carnation Hotels.

Source: Moneycontrol, Bloomberg Quint, Investing 

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