Market View 7th December 2022

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

U.S. stocks dipped with as bank CEOs raised alarm over downbeat economic conditions. The S&P 500 fell 1.3% and the tech-heavy Nasdaq fell 1.7%. Yield on 10-year Treasuries declined one basis point to 3.56%. Oil fell 3.6% amid broader market selloff and high interest rates. Gold futures rose 0.1%, while Bitcoin continued to trade around $17,000-level. The Indian benchmark indices had a rough day, as the Sensex lost 208 points and Nifty closed 54 points lower amid mixed global cues. Fifteen of the 19 sectoral indices compiled by BSE Ltd. declined, with BSE Information & Technology, Telecommunication, Metal and Teck falling the most. Rupee fell against U.S. dollar to cross the 82-mark for the first time since Nov. 7.  At 6:24 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — fell 0.29% to 18,698.5.

Economic Calendar:

• USD : Initial Jobless Claims on 8th December, 2022
• USD : PPI (MoM) (Nov) on 9th December, 2022
• INR : Interest Rate Decision on 7th December, 2022
• INR : FX Reserves, USD on 9th December, 2022

Brokerage Radar:

CLSA ON ZEE ENT: Buy, TP Rs 325 ; Ad revenue recovery dragged by FMCG ; Zee-Sony merger ahead will be a stock rerating catalyst, likely by end Fy23; Cut Zee’s 2HFY23/FY25CL ad revenue by 6-8%

MS ON DABUR: Upgrade to OW, TP Raised to Rs 660; Accelerating signs of rural recovery, improving portfolio mix & favorable relative vals make a case for stk outperformance in coming mths; Expect earnings CAGR over F22-F25 of 14%,vs. 6% over F19-F22

JEFFERIES ON HDFC AMC: Buy, TP Rs 2450; Aberdeen Inv. plans to sell its entire 10.2% stake, of which 9.9% to a single buyer; They are seeking SEBI’s approval for stake sale by co-promoter & may need to seek approval from unitholders; May address share-supply overhang & aid re-rating

International Markets:

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

HDFC Asset Management Company: Promoter Abrdn Investment Management has sought required approvals from HDFC Trustee Company and SEBI to sell its entire 10.21% stake in the company and stop being a sponsor of HDFC Mutual Fund.

Ircon International: Won an order for procurement of design, installation, testing, commissioning and certifying of signalling and telecommunication system from Maho junction to Anuradhapura by Sri Lanka Railways under Indian Line of Credit at $14.89 million (Rs 122 crore).

Vedanta: The company’s board is meeting on Dec. 9 to consider the proposal to offer non-convertible debentures aggregating up to Rs 500 crore in one or more tranches.

Apollo Hospitals Enterprise: Issued a letter of comfort worth Rs 400 crore to Axis Bank on behalf of subsidiary Apollo Healthco. The company also issued NCDs worth Rs 105 crore with a coupon of 7.70%.

Siemens: The company emerged as the lowest bidder for the 9,000 HP Electric Locomotives project in Dahod, Gujarat.

Maruti Suzuki India: The company recalled 9,125 units of Ciaz, Brezza, Ertiga, XL6 and Grand Vitara manufactured between Nov 2-28, 2022, to fix fault seat belt assembly.

Vodafone Idea: Preferential issue of optionally convertible debentures worth Rs 1,600 crore ATC Telecom Infrastructure lapsed due to absence of government response.

Bikaji Foods International: Reported a revenue of Rs 576.9 crore for the quarter ended Sept. 30, 2022, up 31.8% year-on-year from Rs 437.6 crore. Consolidated profit grew to Rs 40.92 crore, up 43.5%. The board also approved acquisition of Hanuman Agrofood.

5Paisa Capital: The boards of 5Paisa Capital Ltd. and IIFL  Securities Ltd. approved the transfer of IIFL Securities’ online retail trading business to 5Paisa. IIFL Securities shareholders will receive 1 share of Rs 10 paid up of 5Paisa Capital for every 50 shares of Rs 2 paid up of IIFL Securities held by them as on the record date. 5Paisa customer base will increase by 40% whereas equity dilution is 20%.

Infosys: Share buyback starts today at a price of Rs 1,850 apiece. The software services company will repurchase 5,02,70,270 equity shares, representing 1.19% of the total paid-up share capital, according to an exchange filing.

Source: Moneycontrol, Bloomberg Quint, Investing

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