Markets continued to inch lower, but recovery in the last hour of trade helped Sensex to regain above 59952. With the USDJPY breaching the critical support of 130, global markets could turn weak. The Dow Jones Index in JPY terms is a mere 0.7% higher from critical breakdown levels below which we may see a steep slide by 23%.
A sharp shrink in non-institutional turnover below Rs 19000 crores indicates that retail participants are waiting on the sidelines. We expect a sharp upswing in commodity prices which brings the risk of stagflation in the near term. We expect basket selling to resume after Sensex breaks 59952 on a closing basis with an immediate hit towards 17200 in Nifty and 18.70 in India VIX.
Dow Jones in JPY and MSCI India Net USD
Stocks to watch
Positive Read Through
- Finolex Cables-May hive off divisions into separate entities in the future.
- HUL, Colgate, and Mondelez hike prices between 2-58 pct.
- LnT Tech is acquiring Smart World and communication from LnT in an all-cash deal worth Rs 800 cr.
- PVR – Inox merger approved by NCLT Mumbai.
- Lupin, Cipla in focus- Govt releases more than 52,000 courses of Tamiflu generic from National stockpile.
- Infosys- FY23 revenue guidance raised to 16-16.5 pct from 15-16 pct, deal wins strong at USD 3.3 bn
- HCL Tech- Q3 revenue and margin beat estimates, FY23 revenue and margin guidance narrowed
- Anand Rathi Wealth- Revenue up 1.4 pct at Rs 138 cr, EBIDTA up 2.2 pct YoY
- RVNL- Bags order worth Rs 38.97 cr
Negative Read Through
- Paytm- Reports say Alibaba sells 1.92 cr shares at Rs 536 a sh via block deal
- Shriram Finance- PE Fund Apax Partners to sell up to 5.3 pct stake in co via a block deal.
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