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

In Asia, while South Korea’s Kospi and Australia’s ASX 200 were trading 1.28% and 0.45% higher.Indices in Japan fell after the release of Japan’s July wage data, which rose at rose 3.6% year-on-year, as against 4.5% in June.Indices in the US kicked off Wednesday’s session in the red; however, they recovered later in the day to end mixed as July job openings reinforced hopes of a September rate cut.Job openings for the month of July in the country fell to 7.67 million against the estimated 8.1 million, the lowest since the start of 2021.Treasury yields fell sharply after data revealed a further slowdown in the US labour market, leading Wall Street to bet on upcoming Federal Reserve rate cuts.The Indian benchmark indices took a breather from a record rally to close lower on Wednesday as sentiment was hit after a rout in global stocks. The closing came after Asian stocks plunged, tracking the overnight losses in the US markets, led by weak economic data and easing oil prices on weak global demand.

Economic Calendar:

  • USD: Initial Jobless Claims on 5th September
  • IND: CPI (YoY) on 12th September

IPO Watch:

Company Opsen Close Price View
Bajaj Housing Finance 09 Sept 11 Sep 66-70 Apply
Tolins Tyres Ltd 09 Sept 11 Sep 215-226 Under review

Brokerage Radar:

GOLDMAN SACHS ON AU SFB:

Initiate Buy with target price of Rs 831, Ready for the next innings; Sector-leading EPS growth beckons, Stock de-rating largely done; drivers in place for re-rating, Valuation de-rating an opportunity on improved earnings dynamics.

GOLDMAN SACHS ON CHOLA FINANCE:

Initiate Buy with target price of Rs 1786, Market share gains amidst commercial retail up-cycle, Structurally better earnings growth story, Expect Chola to deliver an EPS CAGR of 33% over FY24-FY27.

KOTAK ON UNO MINDA:

Downgrade to Sell from Add; Cut target price to Rs 970 from Rs 1000, Speed bump: Slowdown in passenger vehicle segment to weigh on growth,  New product additions and capacity ramp-up to weigh on margins, Multiple partnerships to drive content growth over medium term.

International Markets:

U.S & Europe:

Particulars     4th  Sept   Chg. Chg.(%)
Nasdaq 17,084.30 -52.00 -0.30
Dow 40974.97 38.04 0.09
FTSE 8,269.60 -28.86 -0.35
CAC 7,500.97 -74.13 -0.99
DAX 18,591.85 -155.26 -0.84
Dow Fut.* 41052 1 00

*As per 5th September.

Asian markets:

Particulars   5th Sept Chg. Chg.(%)
GIFT Nifty                  25362.50 114.50 0.45
Nikkei 36,931.64 -115.97 -0.31
Straits Times 3,453.90 12.52 0.36
Hang Seng 17,432.34 -25.00 -0.14
Shanghai                               2,783.05 -1.23 -0.04

Stocks strong on Chart:

Index F&O Cash
RIL CUMMINS IND ASAHI INDIA
ULTRA TECH APOLLO HOS KRYSTEL
ASIAN  PAINT IPCA LAB SKF IND
BPCL OBEROI REALTY NHPC
HUL JK CEMENT ALKYL AMI
  INDIAN HOTEL MUNJAL AU

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.976 00
Brent 73.05 0.48
Gold 71,470.00 0.01
Silver 83,540.00 -0.03

FIIs & DIIs:

Particulars        4th  Sept       3rd Sept
FIIs                          975.46 1029.3
DIIs 97.35 1896.2

News Update:

Company

PNB Housing Finance: The board will consider raising up to Rs 2,500 crore through NCDs on Sept. 9.
Canara Bank: The company will issue five-year $300 million medium-term notes through the IFSC Banking unit.
Suzlon Energy: Executes conveyance deed with OE Business Park for the sale of office space for Rs 440 crore. The company will lease One Earth Property back for five years.
Sona BLW Precision Forgings: The company has set the floor price at Rs 699.01 per share for qualified institutional placement to raise Rs 2,400 crore.
Apollo Hospitals: Apollo Healthco Ltd., an unlisted material wholly owned subsidiary of the company, incorporated a wholly owned subsidiary named Apollo 2417 Insurance Services Ltd. on Sept. 3.

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