Market View 8th June 2023

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

Asian markets are poised to open lower in the wake of a slide on Wall Street as traders boosted bets on a U.S. rate hike after a surprise increase by the Bank of Canada. Futures for shares in Australia, Japan and Hong Kong declined. Tech shares bore the brunt of jitters over higher rates, sending the S&P 500 down for a second day this week and the Nasdaq 100 to its worst day since April. Contracts on the U.S. benchmarks were slightly lower in early Asian trading. U.S. stocks gained early in the session on Wednesday, bringing the S&P 500 to the brink of a bull market. India’s Monetary Policy Committee is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.80%. Crude was trading around $77-mark, while Bitcoin fell below 27,000-level. At 5:31 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.06% at 18,823.

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:

MACQUARIE ON HUL: O-p, TP Rs 3050; Expect 5% vol growth in 1Q, vs 4% in 4Q

Realisation growth will moderate to 3-4% ; Gross margin improvement should be partly offset by higher media intensity, resulting in sequentially flattish EBITDA margin & in turn 12% EBITDA growth

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

GS ON DEVYANI INT.:

Buy, TP Rs 200; Demand recovery unlikely before 2HFY24, margin recovery to continue in KFC; Costa has reached critical mass, could be a driver of long-term value creation; KFC- addition of chicken rolls & kiosks promising initiatives

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Bank Stocks:

To be in focus ahead of the Monetary Policy Committee decision on policy repo rate. MPC is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth.

Life Insurance Corp:

Company increased stake in Tech Mahindra by 2%, from 6.87% to 8.89%. The holding increased at an average cost of Rs 1,050.77.

Lemon Tree Hotels:

Company signed a license agreement for a 60-room property in Rajahmundry in Andhra Pradesh. The hotel is expected to be operational by the third quarter of fiscal 2025. Company’s unit Carnation Hotels will be operating this hotel. 

Stove Kraft:

Chief Financial Officer Balaji A S has resigned from the company citing personal reasons. The company is in the process of hiring a professional for the position of chief financial officer.

Sula Vineyards:

Company said it has identified a new chief financial officer who will join the company in August. It has also added three new lakeside villas in Nasik, Maharashtra.

Mazagon Dock Shipbuilders:

Company signed a memorandum of understanding with Thyssenkrupp Marine Systems for building submarines in and for India. Thyssenkrupp Marine Systems will contribute to the engineering and design of the submarines and provide consultancy support. Mazagon will take responsibility for constructing and delivering the respective submarines.

Titagarh Wagons:

The board will meet on Jun. 10 to consider, evaluate and approve the proposal to raise funds by issue equity of shares or other securities through preferential issue, qualified institutional placement, rights issue, or through any other permissible mode.

Gati:

Total volume, including surface and air express, rose 8% sequentially in May. It rose 1% from the year ago period. Company said volumes in May continued to show an improving trend owing to an uptick in preparations for the upcoming festive season starting in the last week of May. This is expected to continue over the coming months.

 

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