Market View 3rd July, 2024

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

Most Asia-Pacific markets rebounded Wednesday after the Federal Reserve Chair Jerome Powell indicated that the US is returning to a disinflationary trajectory. This affirmed hopes of monetary easing in the world’s largest economy. Moreover, Powell’s remarks came at a time when US Job Opening and Labor Turnover Survey showed new jobs increased in May, showcasing underlying strength in labour market. The Indian benchmark equity indices ended a volatile session flat on Tuesday after hitting record highs in early trade as shares of banks weighed on them.The Indian currency weakened 6 paise to close at Rs 83.50 against the US dollar.

Economic Calendar:

• INR : Services PMI on 3^rd July 24
• USD: FOMC minutes on 3^rd July
• INR : Parliament session 24th June, 2024 to 3rd July, 2024.

IPO Watch:

Brokerage Radar:

JEFFERIES ON HDFC BANK

Buy Call, Target Rs1880

HDFC Bank’s shareholding for June’24 points that foreign shareholding fell to 54.83% vs 55.54% in Mar’24, MSCI’s threshold to raise foreign inclusion factor (FIF) from 50% to 100% With that, bank may be eligible for jump in index weight at next review in Aug’24.  This could be positive near-term catalyst in stock.  In medium term, strong deposit growth and improving NIMs should be key drivers

BERNSTEIN ON REC, PFC

Initiates Buy Call on REC, Target Rs 653

Initiates Buy Call On PFC, Target Rs 620

They Are One Of Our Most Preferred Plays In Power Cycle, Investors Are Under-Estimating The Duration And Intensity Of This Power Cycle,  NPA Risk For Both Is Much Lower This Cycle Both Have Better ROEs (>20%) & Growth (15%) Than Power Peers They Are Trading Cheaper Than All Of Them, Despite The Rally

International Markets:

U.S & Europe:

*As per 3rd July.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

HDFC BANK The company has reported a reduction in foreign institutional investors’ shareholding to 54.83% in the June 2024 quarter, down from 55.54% in the previous quarter

M&M Finance The company reported disbursements up 5% year-on-year at Rs 12,730 crore for the end of Q1 FY25

YES BANK The company reported loans and advances up 14.8% year-on-year at Rs 2.29 lakh crore, deposits up 20.8% year-on-year at Rs 2.64 lakh crore for the end of Q1 FY25. CASA ratio at 30.7% vs 30.9% QoQ

Puravankara The company acquired a 7-acre land parcel in Bengaluru with a potential gross development of Rs 900 crore.

Britannia Industries The company appointed former RBI Governor Urjit Patel as an independent director for 5 years effective July 2

Source: Moneycontrol, Bloomberg Quint, Investing 

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