Market View 8th May 2023

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

Asian markets were poised to climb on Monday after a chaotic week for financial markets ended Friday with a rebound in U.S. regional banks and a rally in risk assets. Solid jobs data has tempered fears of a U.S. recession, improving sentiment that saw treasuries fall and Wall Street’s favorite volatility gauge, the VIX, snap a four-day surge. Equity futures pointed to gains of slightly less than 1% in Hong Kong and Australia. Contracts for Japan were marginally lower as traders there return from national holidays. The advance on Wall Street on Friday halted the S&P 500’s longest losing streak since February, with the gauge climbing 1.9%. The KBW Bank Index of financial heavyweights rebounded from its lowest since September 2020. The Nasdaq 100 rose 2.1%, with strong earnings at Apple Inc helping lift the megacap tech space as the world’s most-valuable company climbed almost 5%. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.44%. Crude prices were trading above $75-mark, while Bitcoin declined below 29,000-level. At 05:44 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 0.30% at 18,178.5. Domestic benchmark indices—BSE Sensex and NSE Nifty 50—crashed after a stellar run to close at their lowest level in seven weeks, dragged lower by the HDFC twins.

Economic Calendar:

• USD : CPI (MoM) (Apr) on 10^th May, 2023
• USD : PPI (MoM) (Apr) on 11^th May, 2023
• INR : CPI (YoY) (Apr) on 12^th May, 2023
• INR : Industrial Production (YoY) (Mar) on 12^th May, 2023

UPL, Canara Bank, Indian Bank, Kalpataru Power Transmission, Apar Industries, Pidilite Industries, CG Power and Industrial Solutions, Kansai Nerolac Paints, Aarti Industries, Mahanagar Gas, Birlasoft, Carborundum Universal, Craftsman Automation, VIP Industries, Happiest Minds Technologies, Apollo Pipes, Andhra Paper, Avadh Sugar & Energy, Exide Industries, HFCL, IndInfravit Trust, IRB InvIT Fund,

Brokerage Radar:

GS ON ONE 97 COM (PAYTM): Buy, TP Rs 1150; 4Q in line: 2nd consecutive qtr. of profitability; improving credit metrics an additional +ve; Expect co to become most profitable within India Internet coverage starting FY25E; Resolution of outstanding regulatory issues next catalysts

NOMURA ON BHARAT FORGE: Upgrade to buy, TP Rs 929; Est. incremental revenue of Rs 15bn by FY25F from guns & 20%+ margins on this as IPRs are owned by BHFC; Also maintain view that India MHCVs will continue to grow (+10% /+5%) over next 2 years given view on CV demand

MS ON BRITANNIA: OW, TP Raised to Rs 5184; 4Q strong & management sound +ve on growth outlook; Believe co is leading charge on driving distribution, innovation & premiumisation (DIP) led growth in its biscuit and non-biscuit businesses

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Aditya Birla Fashion and Retail: The company has signed a definitive agreement to acquire 51% stake in TCNS Clothing for Rs 1,650 crore. The company will acquire between 22% to 30.81% stake from TCNS promoters and up to 29% stake through open offer at Rs 503 per share.

TCNS Clothing: The company entered into definitive agreements for combining with ABFRL, part of the Aditya Birla group. As a part of the deal, ABFRL will hold 51% stake in TCNS Clothing for Rs 1,650 crore. Under the merger public shareholders of TCNS (as on effective date) will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.

SJVN: The company’s subsidiary SJVN Green Energy bagged a 100 MW connected wind power plant project from Gujarat Urja Vikas Nigam to be set up anywhere in India at approximately Rs.800 crore. The company also won a contract from Rajasthan Urja Vikas Nigam to set up a 100 MW solar power project at a cost of Rs 600 crore.

Lupin: The company will acquire entire share capital of French pharmaceutical company Medisol for €18 million (Rs 161.89 crore). This consideration includes upfront payment of €14.5 million (Rs 130.41 crore) and earn-outs up to €3.5 million (Rs 31.48 crore).

Bharat Forge: The board approved the appointment of Kedar Dixit as chief financial officer, with effect from July 1, 2023, after Kishore Saletore resigned from the position, effective June 30, 2023.

Source: Moneycontrol, Bloomberg Quint, Investing

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