Market View 9th December 2022

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

Asian markets opened on a positive note on Friday morning, the Japanese shares are higher today as the Nikkei 225 gains 1.05%, as of 6:29 am, IST. U.S. stocks were upbeat on data indicating moderation in the labour market, paving the way for less hawkish Federal Reserve stance. The S&P 500 rose 0.7%, while the tech heavy the Nasdaq 100 was up 1%. The yield of 10-year Treasuries advanced five basis points to 3.44%. Oil was up 0.8% after paring significant gains from a volatile session caused due to shutdown of a crucial pipeline between the U.S. and Canada. Gold futures rose 0.2%, whereas Bitcoin rose 0.7% to trade around $17,000-level. The Indian benchmark indices opened on a marginally positive note and stayed flat through the session before closing higher on the back of a last hour surge. Overseas Investors in Indian equities remained net sellers for the fourth straight day on Thursday. Foreign portfolio investors offloaded equities worth Rs 1,131.67 crore, according to data from the National Stock Exchange. Domestic institutional investors turned net buyers and bought equities worth Rs 772.29 crore. Rupee maintained its upward trajectory against the U.S. dollar for the second day after paring initial losses. At 6:29 a.m., the Singapore-traded SGX Nifty — an early barometer of India’s benchmark Nifty 50 — rose 0.22% to 18,769.5.

Economic Calendar:

• USD : CPI (MoM) (Nov) on 13th December, 2022
• USD : PPI (MoM) (Nov) on 9th December, 2022
• INR : FX Reserves, USD on 9th December, 2022
• INR : CPI (YoY) (Nov) on 12th December, 2022

Brokerage Radar:

CITI ON HUL: Buy, TP Rs 3050; Foray Into Health & Wellbeing: Targeting Growth In New-Age Categories; As per mgmt.,vitamins, minerals & supplements category can potentially become Rs300bn in medium term; Co intends to focus on some high-growth benefit spaces within VMS

MS ON OMCs: India fuel basket is priced at $93/bbl Brent, & if oil remains near $80s, Indian energy equities should see upside risk to expectations, with crude OSPs falling & above-midcycle fuel cracks benefiting refiners BPCL/IOCL; Potential removal of export tax could be +ve

JPM ON RIL: OW, TP Rs 3065; 2023- Earnings should improve; stock returns to be driven mainly by Jio Financial Services; markets not ascribing material value yet; Believe CY23 will likely be mostly about Jio Financial as Consumer biz (Jio, Retail) IPOs are still some time away; While New Energy remains most interesting part of co’s longer-term earnings & val story, do not expect any immediate monetization; Cut FY23 EPS by 8%, expect FY24 to be better on stable refining, better Petrochem, higher E&P & stronger Retail

International Markets:

U.S & Europe

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

One 97 Communications: The board will meet on Dec. 13 to consider a proposed share buyback programme.

Adani Enterprises: Acquired 100% stake of Alluvial Mineral Resources from Adani Infra (India).

Sun Pharmaceuticals: The USFDA has listed the company’s Halol manufacturing facility under ‘Import Alert’. The company has not revised the revenue guidance for the current fiscal.

Ahluwalia Contracts (India): Clarified inter alia that the Rs 55.39-crore contract at Plaksha University, Punjab is a domestic project and will be executed within 15 months.

Hindustan Unilever: Will acquire 100% stake of Zywie Ventures in cash deal, to be completed in two tranches. The company will also acquire 19.8% stake in Nutritionalab for Rs 70 crore.

Lupin: Appointed Spiro Gavaris as the president of its U.S. Generics business.

Max Financial Services: Completed the acquisition of balance 5.17% stake held by Mitsui Sumitomo Insurance Co., Japan in subsidiary Max Life Insurance Co., taking its overall shareholding to 87%.

HCL Tech: Management has indicated that growth for FY23 will come at the lower end of the range that it had indicated post its 2QFY23 results due to higher-than-expected furloughs, according to Nirmal Bang.

Source: Moneycontrol, Bloomberg Quint, Investing

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