Market-View-Feature-Image

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

Share indices in Asia-Pacific region were trading higher in early trade on Tuesday as market participants await China’s loan prime rate, and the Reserve Bank of Australia’s August policy minutes .US stocks rose for the eighth consecutive session, marking the longest winning streak of 2024, as investors anticipate that the Federal Reserve may soon signal a shift towards reducing interest rates. The Indian benchmark indices ended mixed on Monday as the NSE Nifty 50 closed 31.50 points or 0.13%, higher at 24,572.65, and the S&P BSE Sensex settled 12.16 points or 0.02%, lower at     80,424.68.Overseas investors turned sellers of Indian equities on Monday after a session of buying. Foreign portfolio investors offloaded stocks worth Rs 2,667.5 crore, while domestic investors stayed net buyers for the 11th consecutive session and bought equities worth Rs 1802.9 crores.

Economic Calendar:

  • USD: Crude oil inventory announcement on 21August2024
  • IND: M3 money supply announcement on 21 August 2024

IPO Watch:

Company Open Close Price View
Interarch building 19 Aug 21 Aug 850-900 Apply
Orient technology 21 Aug 23 Aug   195-206 Under review

Brokerage Radar:

Macquarie on TCS:

Maintain Outperform; hike target price to Rs 5,740 from Rs 4,750.Served to remind us that although TCS still spends only 1-1.2% of its revenue/ year on R&D, it is now a large figure. See Al making legacy modernization possible with much greater accuracy and at lower cost. See potential for a pickup in demand medium-term from a wave of legacy modernization programs

CITI ON RIL:

Downgrade to Neutral from Buy; Hike target price to ₹ 2910 from ₹2600.In-line Q3 – O2C Softer, Oil & Gas Stronger.O2C below; oil & gas ahead; Jio & retail in- line. Downgrade to Neutral on Balanced Risk/Reward.

Nomura on IndusInd Bank:

Maintain Neutral with target price of Rs 1580.Receives RBI approval to set up AMC subsidiary. Can now generate revenue as a ‘manufacturer’ of mutual funds. Positive development at the margin, but scale will take time. Remains to be seen if this sets a precedent for the rest of the sector.

International Markets:

U.S & Europe:

Particulars 19thAugust   Chg. Chg.(%)
Nasdaq 17876.77 245.05 1.39
Dow 40869.53 236.77 0.58
FTSE 8356.94 45.53 0.54
CAC 7502.01 52.31 0.7
DAX 18421.69 99.29 0.54
Dow Fut.* 41028 8 0.02

*As per 20th August.

Asian markets:

Particulars   20thAugust Chg. Chg.(%)
GIFT Nifty                          24632 42 0.17
Nikkei 38015.87 627.25 1.65
Straits Times 3367.76 12.20 0.36
Hang Seng 17514.06 -55.51 -0.32
Shanghai                                       2869.41 -25.39 -0.88

Stocks strong on Chart:

Index F&O Cash
TCS VOLTAS NCC
RELIANCE IOC HBL POWER
ASIAN PAINT   BEL K FINTECH
INFY LAURUS TANLA
VEDANTA MARICO ORIENT CEMENT
  INDUS TOWER  

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.6 0.03
Brent 77.28 -0.49
Gold 71598 0.02
Silver 84344 0.01

FIIs & DIIs:

Particulars        19th August 16th August
FIIs                          -2667.46 766.52
DIIs 1802.92 2606.18

News Update:

Company

Tata Motors The company sets Sept. 1 as the record date for determining shareholders eligible for DVR share swaps.
IndusInd Bank The bank received the RBI’s nod for undertaking mutual fund business via a new subsidiary
Vedanta The company’s shareholding in Hindustan Zinc was reduced to 63.42% after an offer for sale
Olectra Greentech The company’s stake in a special purpose vehicle for executing a MSRTC contract falls to 1% from the initial 34%.
Hazoor Multi Projects The company emerged as the lowest bidder for Maharashtra State Infra Development Corp.’s project worth Rs 274 crore
Poly Medicure The company opened its qualified institutional placement and set the floor price at Rs 1,880.69 per share.

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