Market View 7th June 2023

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

Asian equity futures pointed to advances around the region on Wednesday, with signs of stimulus in China. A rotation into financial shares on Tuesday suggested the breadth of the S&P 500’s recent rally might extend beyond technology soon. While a decline in Apple Inc. crimped gains, the benchmark gauge still rose 0.2%.Futures for Japanese and Australian shares registered small rises while those for Hong Kong jumped 1.9%. The small gain on Wall Street still left the S&P 500 just short of a bull market on Tuesday. The World Bank said in a report Tuesday the global economy is in a precarious situation as sharp interest rate hikes hit activity and stir vulnerabilities in lower income countries. Meanwhile, the yield on 10-year Treasuries in U.S. was trading at 3.66%. Crude was trading around $76-mark, while Bitcoin rose 1% to above 27,000-level. At 05:40 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.35% at 18,745.

Economic Calendar:

• USD : Initial Jobless Claims on 08^th June, 2023
• USD : CPI (MoM) (May) on 13^th June, 2023
• INR : Interest Rate Decision on 08^th June, 2023
• INR : Cash Reserve Ratio on 08^th June, 2023

Brokerage Radar:

JEFFERIES ON CAN FIN HOMES:

Lagged repricing of loans should be a tailwind to NIMs, but this will be partly offset by lower yield in new segment; Has adequate provn. to absorb slippages in restructured bk; Believe NIMs can surprise +vely; EPS should grow at 18% CAGR over FY23-26E

NOMURA ON HUL:

Buy, TP Rs 3025; Gradual uptick in growth & margin improvement continues; Expect FY24F to be yr of vol growth & margin recovery; Best-in-class execution, product superiority & digital investments widening its competitive lead vs peers

UBS ON PVR:

Buy, TP cut to Rs 1950 from Rs 2300; Healthy content slate; improving movie release frequency; Merger complete; integration and potential synergies over the next two years; Steady capacity addition plan; to add 125 screens net in FY24

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

News Update:

Adani Group:

BSE revised price bands for four Adani group companies: Adani Wilmar, Adani Green and Adani Transmission from 5% to 10%. It revised price band of Adani Power from 5% to 20%.  

Bank of Maharashtra:

Lender approved QIP issue at issue price of Rs 28.5 apiece, which is at a discount of 4.94% to the floor price of Rs 29.98. An aggregate of Rs 1,000-crore will be allotted to eligible qualified institutional buyers. 

Torrent Power:

Company signed memorandum of understanding with Government of Maharashtra to develop three pumped storage hydro projects of 5,700 MW capacity in Maharashtra with an investment of about Rs 27,000 crore. Torrent plans to execute these projects over five years.

GMR Airports Infrastructure:

Company divested 8.18 lakh square-feet warehouse facility by selling 100% stake in unit GMR Hyderabad International Airport to ILP Core Ventures. The resulting cashflows will help in expansion and other growth opportunities at Hyderabad Airport Land Development portfolio. 

Engineers India:

Company won order worth Rs 5.05 crore from National Aluminium Company for providing consultancy services for updating project report for Pottangi Bauxite Mines. It got an order worth Rs 15.50 crore from Jindal Steel and Power to supply basic engineering and detail engineering for direct reduced iron plant in Odisha.  

G R Infraprojects:

Company’s unit GR Hasapur Badadal Highway executed concession agreement to construct six lane Surat-Nashik-Ahmednagar-Solapur- Maharashtra/Karnataka border greenfield stretch on hybrid annuity mode at a bid project cost of Rs 872.17 crore.

JSW Ispat Special Products:

Chief Financial Officer Kiran Menon resigned from post with effect from Jun. 5, 2023 to pursue opportunities outside the Group.

MPS:

Company dissolved U.K. unit Highwire Press On Jun.6. Highwire Press is not a material subsidiary and its dissolution will not affect revenue or business of company.

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