News and Impact   ·         Expects market to open on a positi | SKM INVESTMENT

News and Impact
 
·         Expects market to open on a positive note after cool down sell off in the global markets. However, geo-political tension between US-Russia, global market volatility and worries about US Federal Reserve monetary-policy tightening (US Bond surged to intra-day high of 2% yesterday) may negative impact in the market. Traders avoid aggressive buying interest till the clear trend emerges. In the domestic front, Brent crude spiked to over 7-year high of nearly $97/bbl, CPI Inflation surged to 6-month high above 6%, December IIP fell to 10-month low are major concern in the market. FIIs continued selling in the domestic bourses and net sellers Rs4354cr yesterday.  SGX Nifty is up half percent while US Future are trading flat. Metal stocks like Hindalco, Tata Steel and Nalco are looking attractive.
·         US market fell on Monday as investors continued to assess the possibility of war between Russia and Ukraine and the prospect of interest-rate increases by the Federal Reserve. Dow Jones, S&P 500 and Nasdaq Composite declined nearly half percent each while US 10-year Bond surged to intra-day high of nearly 2%.
·         Asian stocks and U.S. equity futures were steady Tuesday as traders parsed geopolitical risks and worries about Federal Reserve monetary-policy tightening to fight inflation. Shares in Japan, South Korea, Taiwan and Australia Index are trading flat to negative. European stocks fell to a three-week low as investors mulled the risks from geopolitical concerns surrounding Ukraine and assessed the impact of tightening monetary policy on global growth. UK, France and Germany Index declined 2% each.
·         Brent Crude fell from 8-year high of  $97/bbl to $95/bbl  as traders weighed Russia’s intentions toward Ukraine against the outlook for global demand. With the U.S. warning a Russian invasion of Ukraine may be imminent, Moscow is calling for a diplomatic approach while at the same time maintaining thousands of troops along the country’s borders. Russia denies it plans an assault.
·         Gold advanced to the highest price since mid-November at $1871/ounce amid renewed investor demand as geopolitical tensions persist over Ukraine
·         Actionable -  Buy BHEL and Renuka Sugar
·         Brokers Radar - Nomura TGT on Persistent Systems at 5440
·         Events – FM to meet with SEBI, Cipla block deal of 2.5% equity, Ex-dividend – REC Rs6, Dalmia Bharat Rs3, IOL Chemical Rs4, CE Infosystems Rs2, Suven Pharma – Rs3 (including special dividend)
·         Results – Crisil, REC, SpiceJet
·         Market Summary - BHEL bags order to supply compact heat exchanger sets for Tejas aircraft, Reliance Jio partners with SES for satellite broadband in India, SBI expects to recover Rs 8,000 cr from written-off accounts in FY22,  Dr Lal Path  Looking to Buy Diagnostic Firms in South India, Godrej Properties Plans Rs 7,500-Cr Investment In Next 12-18 Months, Govt cuts Tax on Crude Palm Oil Imports to Help Consumers, Refiners, Axis Bank Set to Buy Citigroup’s $2.5 Billion India Retail Unit, SJVN lays out plan for 10 GW of fresh solar in Rajasthan, Nykaa takes up more office space in south Mumbai. IPCA Labs and Grasim announced lower than expected Q3 results. Vedanta, Foxconn to Form JV to Make Semiconductors in India, Eicher Motors announced lower than expected Q3 results.
·         Cipla: Promoters to sell up to 2.5% stake in block deals, according to terms of the deal obtained by Bloomberg. The company’s shares are offered at a price range of Rs 904.8 to Rs 916.7 each (CMP Rs955, 5% discount ) in a secondary placement.- Buying opportunity
·         Vedanta and Hon Hai Technology Group (Foxconn) have signed an MOU to form a joint venture company that will manufacture semiconductors in India. Vedanta will hold the majority of equity in the JV and Vedanta Chairman Anil Agarwal will be chairman of the JV  - Positive