Market View 5th May 2023

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

Asian markets were set for a weak start on Friday after a rout in regional banks rattled Wall Street, with brewing anxiety about the next financial shoe to drop making traders increase their bets on Federal Reserve rate cuts. U.S. futures rose slightly in early Asia trading after the S&P 500 tumbled 0.7% on Thursday. Contracts for Australia dropped, while those for Hong Kong were little changed. Japanese markets are shut for a holiday. Another round of trading halts in the financial industry hit U.S. lenders including Western Alliance Bancorp, PacWest Bancorp and First Horizon Corp., while a probe into Goldman Sachs Group Inc.’s role in Silicon Valley Bank’s deal also weighed on sentiment. Apple Inc. rose in late hours after reporting earnings. Nevertheless, Wall Street’s fear gauge, the Cboe Volatility Index (VIX), spiked to hit the key 20 mark. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.38%. Crude prices were trading below $73-mark, while Bitcoin declined to trade below 29,000-level. At 5:47 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.36% at 18,220. Domestic benchmark—BSE Sensex and NSE Nifty 50—continued moving upwards to close at their highest levels in a month. Indian rupee ended its three-day decline against the U.S. dollar on the day after U.S. Fed announced a 25-basis-point hike and signalled a rate pause in future.

Economic Calendar:

• USD : Nonfarm Payrolls (Apr) on 05^th May, 2023
• USD : Unemployment Rate (Apr) on 05^th May, 2023
• INR : Deposit Growth on 05^th May, 2023
• INR : Bank Loan Growth on 05^th May, 2023

Q4 Results Today: Britannia Industries, Bharat Forge, One 97 Communications, Federal Bank, Marico, Gujarat Fluorochemicals, Alembic Pharmaceuticals, Piramal Enterprises, Blue Dart Express, Ajanta Pharma, Equitas Small Finance Bank, DCB Bank, Stylam Industries, Go Fashion India, Tatva Chintan Pharma Chem, KFin Technologies, Artemis Medicare Services, Tata Investment Corporation, Sundaram-Clayton

Brokerage Radar:

GS ON DABUR: Buy, TP Rs 600; Weak 4QFY23 marred by one-offs; Secondary sales growth at 10% ahead of reported growth at 5% indicates pipeline correction; EBITDA margins sharply correct driven by mix & one-offs

JPM ON TVS MOTORS: OW, TP Rs 1330; Q4 broadly in line; Management commentary ticked all right boxes – Only negative is that elevated investments (capex + subsidiaries) have delayed FCF delivery

MS ON GODREJ PROP: Upgrade to EW, TP Rs 1354; Co now generating meaningful cash flows from operations which are largely sufficient to fund its new project acquisitions; It has achieved meaningful geographic diversification, making its biz model resilient

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Manappuram Finance: The Enforcement Directorate has frozen the company’s assets worth Rs 143 crore following searches at six premises belonging to the firm and its managing director VP Nandakumar, the probe agency said in a statement. Bank of India/Future Lifestyle Fashions: The National Company Law Tribunal admitted the plea of Bank of India to initiate insolvency proceedings against Future Lifestyle Fashions on alleged default of Rs 495.91 crore.

Indraprastha Gas: The company signed a memorandum of understanding with diversified renewable energy firm ACME to set up infrastructure for supplying green hydrogen.

Zydus Lifesciences: The company received approval from USFDA to manufacture and market Sucralfate tablets used to treat and prevent ulcers in intestines.

SBI Life Insurance Company: The board approved extending the term of Mahesh Kumar Sharma as managing director and chief executive officer of the company up to Sept. 30, 2023, subject to approvals from regulator Insurance Regulatory and Development Authority of India and shareholders.

ICICI Prudential Life Insurance Company: Insurance regulator IRDAI approved the appointment of Anup Bagchi as the executive director and chief operating officer of the company from May 1, 2023, and as managing director and CEO of the company from June 19, 2023.

Source: Moneycontrol, Bloomberg Quint, Investing

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