Advisory Desk

Advisory Desk 5th July 2023

 

Market Outlook: US futures were trading flat as the cash market was closed yesterday due to a public holiday. Today's release of the FOMC meeting minutes will offer additional insights into the FED's position on inflation, economic growth and interest rates. Meanwhile, Asian markets began with a flat to negative opening ahead of the release of major economies PMI data including India's service PMI. GIFT Nifty is indicating a slightly positive opening. Yesterday, we have witnessed some cool-off in the broader markets due to profit booking. However, buying interest seen at the lower levels. Overall, we expect the momentum to continue with intermittent minor declines.

Actionable: Buy Bank of Baroda, LTIMindtree ltd, Jindal steel and power ltd.

Global market:

DOW:  34418 (unchanged)

GIFT NIFTY:   + 10   (prev. close 19493)

NIFTY 50 : 19389

Sensex : 65479

 

Institution:

FII:                 +   2134    Cr

DII:                 -    785      Cr

NSE:

Advances:  1567  / Declines:  1945

Currency:

Dollar: $ 82.02

Dollar Index: 103.14

 

Commodity:

Gold: $ 1931  per ounce

Crude: $ 75.85  per barrel

 

Bonds:

10 year US bond rate: 3.84

10 year Indian Bond rate: 7.12

Derivative:

PCR: 1.30

VIX:  11.70

Updates:

HDFC Bank - Q1 Business Update - The Bank’s advances jumped around 15.8% YoY, 0.9% QoQ. Domestic retail loans grew by 20% YoY, 4% QoQ. Deposits grew by 19.2% YoY, 1.6% QoQ. CASA grew by 10.7% YoY and were lower by around 2.7% QoQ. CASA ratio stood at around 42.5% vs 45.8% last year and vs 44.4% March quarter. Bank purchased loans aggregating ₹ 116.32 billion through the direct assignment route under the home loan arrangement with HDFC.

IndusInd Bank - Q1 Business Update - June quarter Net advances up 21% YoY,  4% QoQ. Deposits up 15% YoY, 3% QoQ. CASA Ratio at 39.9% from 43.2% last year.

 

LTIMindtree: The Index Maintenance Sub-Committee (Equity) of NSE Indices has decided to exclude HDFC and include LTIMindtree in the Nifty50 with effect from July 13. Jindal Steel & Power is going to replace HDFC in the Nifty 100 index.

 

AU Small Finance Bank - Q1 Business Update - Gross advances rose 29% YoY, 8% QoQ. Deposits grew 27% YoY and flat for QoQ. CASA grew by 14% YoY and decline by 9% QoQ.  Average cost of funds (COF) for Q1was 6.58%, an increase of 29 basis point over COF of Q4’FY23 at 6.29%. During the quarter, the Bank opened 49,000+ savings account via Video banking + AU 0101.

 

RBL Bank - Q1 Business Update - Total deposits grew up by 8% YoY, 1% QoQ. Gross Advances jumped by 20% YoY, 4% QoQ. Retail advances grew 32% YoY while wholesale advances grew 8% YoY. CASA grew by 12% YoY, 1% QoQ.

 

Bandhan Bank - Q1 Business Update - Loans and advances grew nearly 7%, while total deposits rose 16.6%. Retail deposits up 10.6%, while bulk deposits rise 55.4% YoY. CASA ratio at 36% from 43.2% YoY. In other news, the Bank's chief financial officer Sunil Samdani resigned with effect from October 1, 2023.

 

Indian Oil Corporation Ltd (IOC) : said a meeting of its board members is scheduled on Friday to consider raising of capital through right issue of equity shares to meet the capital expenditure plan for its various projects.

 

Strides Pharma Science:  on Monday said it has entered into a binding agreement to sell biologics Unit-3 manufacturing facility of its associate company Stelis Biopharma (SBL) to Syngene International on a slump sale basis for ₹702 crore in an all cash deal. The sale will help Strides in paring its debt.

 

Genus Power - Signs definitive agreements with Gem View Investment Pte Ltd., an affiliate of GIC Singapore to set up a platform for undertaking advanced metering infrastructure service provider concessions. GIC will hold 74 percent stake in the platform. Initial pipeline will have a capital outlay of $2 billion. Chiswick Investment, another GIC affiliate will invest up to Rs.519 crore via preferential warrant allotment.

 

Securities in ban: IBULHSGFIN.

 

Derivative View: On option front, weekly maximum Call OI is at 19400 then 19500 strike while Maximum Put OI is at 19300 then 19000 strike. Option data suggests an immediate trading range in between 19250 to 19500 zones.

Advisory Desk

From Advisory Desk 27th June 2023

 

Market Outlook: US market closed lower due to profit booking in heavyweight stocks. However, futures were trading slightly higher ahead of FED Chairman Powell's speech. Asian markets have begun with a mixed performance, while the SGX Nifty is indicating a flat to positive opening. On the domestic front, there has been a significant decrease in monsoon deficiency from 47% to 28% within a week, which is positive for our market, particularly for sectors like Auto and FMCG. Yesterday, Nifty did not follow the selling trend seen in the previous two sessions and is holding above the lower end of the current range and 20 DEMA. We continue with our buy on dips strategy with a stock-specific approach. Today being weekly expiry, we expect Finnifty's range to be 19300/19400-19625/19778. Tomorrow, our market will be closed due to a public holiday.

Actionable: Buy M&M, Godrej Properties, Trent.

 

Global market:

DOW:  - 12

SGX NIFTY:   + 30   (prev. close 18704)

NIFTY 50 : 18691

Sensex : 62970

 

Institution:

FII:                 -     409    Cr

DII:                +     250    Cr

NSE:

Advances:  1797  / Declines:  1860

Currency:

Dollar: $ 82.04

Dollar Index: 102.62

 

Commodity:

Gold: $ 1937  per ounce

Crude: $ 74.70  per barrel

 

Bonds:

10 year US bond rate: 3.72

10 year Indian Bond rate: 7.07

Derivative:

PCR: 0.90

VIX:  11.39

 

Updates:

 

Bharti Airtel: The telecom major has announced changes in its leadership team in Airtel Business. Ajay Chitkara has resigned as CEO and will continue with the company until the third week of August.

 

Aditya Birla Capital: The Aditya Birla Group company has opened its qualified institutional placement (QIP) issue with the floor price set at Rs.175.99 per share. Sources told that the fund raising is likely to be at Rs.1,750 crore.

 

ICICI Prudential - The company received a show cause cum demand notice from the Directorate General of GST Intelligence for not paying tax of Rs.492.06 crore from July 2017 to July 2022. The company also deposited Rs.190 crore without accepting liability in this case.

HAL: Board to meet today to discuss equity share split and also, to recommend the final dividend for the FY22-23.

City Union Bank: The Board of the bank has approved raising capital up to Rs.500 crore through the QIP route.

 

Securities in ban: HINDCOPPER, RBL BANK.

 

Derivative View: On option front, monthly maximum Call OI is at 18800 then 18700 strike while Maximum Put OI is at 18700 then 18600 strike. Option data suggests an immediate trading range in between 18550 to 18800 zones.

 

From Advisory Desk

From Advisory Desk 21st June 2023

 

Market Outlook: US market ended lower ahead of FED Chairman Powell's testimony today. Additionally, market participants will closely monitor several speeches by FED speakers this week for any further cues. Asian markets have started on a mixed note, while the SGX Nifty is indicating a flat opening. Yesterday, Nifty recovered smartly from day's low and closed higher by 0.30% despite mixed global cues. We expect the uptrend momentum to continue towards new all-time highs with intermittent minor declines. Anticipate momentum in defence stocks to continue, driven by optimism for strong defence agreements with the US.

Actionable: Buy Tata Motors, L&T, REC.

Delivery Ideas: Buy Shriram Finance Ltd, Blue Dart ( Upgraded to Buy, with a revised target price of INR8,040, 20% upside).

 

Global market:

DOW:  - 245

SGX NIFTY:   - 20   (prev.close 18881)

NIFTY 50 : 18816

Sensex : 63327

 

Institution:

FII:                 -   1943     Cr

DII:                +   1973     Cr

NSE:

Advances:  1865  / Declines:  1637

Currency:

Dollar: $ 82.12

Dollar Index: 102.57

 

Commodity:

Gold: $ 1948  per ounce

Crude: $ 76.15  per barrel

 

Bonds:

10 year US bond rate: 3.74

10 year Indian Bond rate: 7.06

Derivative:

PCR: 0.99

VIX:  11.13

Updates:

HDFC/HDFC Life - Competition Commission of India has given a go-ahead to the proposed acquisition of an additional stake by HDFC in HDFC Ergo General Insurance and HDFC Life. After the merger, the combined entity of HDFC Bank will possess a majority stake of over 50% in HDFC Life. HDFC Ltd holds 49.98% of HDFC ERGO and 48.65% of HDFC Life.

 

Piramal Enterprises/Shriram Finance - Piramal Enterprises selling its entire 8.34% holding in Shriram Finance through block deal today for around Rs.4630 crore. Piramal will offload about 3.1 crore shares at a price of Rs 1,483 per unit, which is a 5% discount from CMP.

 

Pidilite Industries - Company launched its manufacturing facilities under its two joint ventures, Pidilite Litokol and Tenax Pidilite in Amod, Gujarat. They have transfered technology to Pidilite as part of joint ventures. This development will strengthen Pidilite's presence in the tile and stone care range.

 

Rail Vikas Nigam - The company issues clarification on report of breakdown of joint venture with Russia-based Transmashholding (TMH). The company has termed the report as factually incorrect and the memorandum of understanding between the two parties is still valid.

GR Infraprojects - The company has bagged a hybrid annuity mode order for four lanes of NH 530B in Uttar Pradesh from NHAI with a project cost of Rs.1,085.47 crore. Company has executed another agreement order worth Rs.758cr for Multi Modal Logistics Park (MMLP) Indore near Pitampur.

Securities in ban: BHEL, DELTACORP, HAL, HINDCOPPER, IBULHSGFIN, INDIACEM, L&TFH.

 

Derivative View: On option front, weekly maximum Call OI is at 19000 then 18900 strike while Maximum Put OI is at 18700 then 18800 strike. Option data suggests an immediate trading range in between 18650 to 18900 zones.