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

Markets in Asia-Pacific region rose on Monday as traders await key data points from US to assess the health of the world’s largest economy. Market participants also await India’s CPI data due to be published later on Monday. On Friday, stocks on Wall Street ended higher, bouncing back from Monday’s steep sell off as US Federal Reserve official expressed confidence in inflation slow down. The S&P 500 and Dow Jones Industrial Average ended 0.47% and 0.13% higher, respectively. The Nasdaq Composite ended up 0.51%.India’s benchmark equity indices closed higher on Friday but logged a second consecutive weekly loss, weighed by various global and Indian macro cues, including the yen carry trade, US recession fears, and the RBI governor’s hawkish commentary during policy. Overseas investors turned net buyers after five straight days of net selling equities.

Economic Calendar:

  • USD : Federal budget balance announcement on 12 August
  • IND: CPI (YOY) July announcement on 12 August

IPO Watch:

Company Open Close Price View
Saraswati saree deposit 12 Aug 14 Aug 152-160 Listing gains
Orient technology 21 Aug 23 Aug Under review

Brokerage Radar:

Goldman Sachs on Info Edge:

Maintain Sell; hike target price to Rs 5,700 from Rs 5,470.Q1 in line; see elevated investments as positive for long-term growth. Improving trends though still limited near-term visibility. Forecast revenue CAGR of 15% during FY24-26

Investec on Aurobindo Pharma:

Maintain Buy with target price of Rs 1,400.EBITDA margin remains healthy @21.4%; dipped QoQ due to the new Pen-G plant. Key to watch on concall – comments on US biz/macro, update on Pen-G plant ramp-up and update on Biologics CDMO.

Citi on Jubilant Food:

Maintain Buy; hike target price to Rs 715 from Rs 663.Q1: Outperformance journey has just started. Operational performance continued to improve despite no improvement in consumer sentiment.

International Markets:

U.S & Europe:

Particulars 9thAugust   Chg. Chg.(%)
Nasdaq 16745.30 85.28 0.51
Dow 39497.54 51.05 0.13
FTSE 8168.10 23.13 0.28
CAC 7269.71 22.26 0.31
DAX 17722.88 42.48 0.24
Dow Fut.* 39634 -6 -0.02

*As per 12thAugust.

Asian markets:

Particulars   12thAugust Chg. Chg.(%)
GIFT Nifty                           24369.50 -34.5 -0.14
Nikkei 35081 257.50 0.74
Straits Times 3240.27 -21.56 -0.67
Hang Seng 17087 -3.23 -0.02
Shanghai                                  2860.46 -0.07 -2.01

Stocks strong on Chart:

Index F&O Cash
DR REDDY CHAMBAL NCC
HDFC FED BANK HBL POWER
BAJAJ AUTO AARTI IND K FINTECH
LUPIN DIXON TANLA
RELIANCE ALKEM ORIENT CEMENT
SRI RAM FIN MUTHOOT FIN  

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.96 -0.02
Brent 79.85 0.28
Gold 69850 0.21
Silver 80510 -0.04

FIIs & DIIs:

Particulars        9th August 8th August
FIIs                          406.72 -2626.73
DIIs 3979.50 577.30

News Update:

Company
Mahindra and Mahindra The company denied media reports of a $3 billion JV with China’s Shaanxi Automobile.
ONGC The company received a government nod to invest an additional Rs 10,502 crore in ONGC Petro additions via equity
ATUL The US FDA inspected the unit’s Ambernath facility in Maharashtra and concluded with zero observations
Anup Engineering The company received two orders worth Rs 100 crore.
TATA MOTORS Tata Motors share exhibits strong bullish momentum.
Source: Moneycontrol, Bloomberg Quint, Investing 

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