Market View 9th June 2023

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

A rally in technology stocks resumed Thursday, pushing the S&P 500’s gains since an October low past 20%, the marker of a bull market. A jump in jobless claims to the highest since October 2021 delivered a boost to the tech sector. The S&P 500 added 0.6% and the tech-heavy Nasdaq 100 rose 1.3% as chipmakers including Nvidia Corp. and Advanced Micro Devices Inc. were among the biggest gainers. Investors are reassessing the trajectory of Fed policy after central banks in Australia and Canada this week unexpectedly raised rates. Back home the policy rates were left unchanged by the RBI at 6.5%. Oil dropped on regional media reports that ignited speculation the U.S. and Iran are nearing a deal that would pave the way for more Iranian crude exports. US officials denied the reports. Meanwhile, the yield on 10-year treasuries in U.S. was trading at 3.72% and Bitcoin was trading below 27,000-level. At 5:33 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.15% at 18,749.

Economic Calendar:

• USD : CPI (MoM) (May) on 13^th June, 2023
• USD : PPI (MoM) (May) on 14^th June, 2023
• INR : FX Reserves, USD on 09^th June, 2023
• INR : CPI (YoY) (May) on 12^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 DR. REDDY’S: Buy Rating; Target Rs 5,161; India Formulations Business Is The Key Focus of the Market; Company Is Attempting To Differentiate Through Innovation; US Generics Business Remains Competitive; Short-term Opportunities Likely In the Current Market; Focus Is On Launching Less Competitive Products; Biosimilars Business Targeting Next Wave Of Patent Expiries; Rituxan Filing Could Help Facility Inspection & Approval By Regulators; China Approvals Are Coming At A Good Pace Now, Allowing Participation In GPO Tenders; Russia’s Market Is Attractive, But Ruble Depreciation Remains The Key Risk; Stock Currently Trading At 16.1x/13.7x On FY24/25 EPS Est Of `289.5/`340.5

International Markets

U.S & Europe:

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Tata Power, Tata Steel: Tata Power Renewable Energy, through subsidiary TP Vardhaman Surya, inked a pact with Tata Steel to set up 966 MW of hybrid renewable power. The project has a hybrid renewable capacity of 379 MW of solar and 587 MW of wind power. Tata Steel will invest 26% of its equity in the project, which is expected to be commissioned by June 1, 2025.

Kotak Mahindra Bank: Canada Pension sought Rs 6,225 crore for a stake sale in Kotak Mahindra Bank. The Canada Pension Plan Investment Board will offer 3.3 crore shares, representing a 1.7% stake, in Kotak Mahindra Bank in a block trade. The shares are offered at Rs 1,792.18 to Rs 1,886.50 each. The price range represents a discount of up to 5% compared to Thursday’s close.

GAIL: GAIL won the bidding for JBF Petrochemicals’ corporate insolvency process and infused a total resolution plan of Rs 2,101 crore. GAIL now adds purified terephthalic acid to its existing petrochemical portfolio through this acquisition.

Blue Dart: The company appointed Sudha Pai as chief financial officer with effect from Sept. 1, 2023. Pai is currently the chief financial officer at DHL Global Forwarding, India. Blue Dart also names VN Iyer as group CFO with effect from Sept. 1.

CEAT: Company inked an agreement to further invest up to Rs 9 crore to acquire 10.89% of Tyresnmore. Upon completion of the agreement, Tyresnmore will become a subsidiary of the company with CEAT, holding a 56.9% stake on a fully diluted basis.

IRB Infrastructure Developers: Company’s gross toll revenue gained 8.9% year-on-year to Rs 864.75 million from Rs 794.32 million a year ago.

NHPC: Company’s unit NHDC was allotted a pump hydro storage site in Madhya Pradesh with a storage capacity of 525 MW x 6 hours by the new and renewable energy department of the Madhya Pradesh government.

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