Market View 10th Oct, 2024

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

On Thursday, Asia-Pacific indexes advanced, after S&P 500 and Nasdaq touched multi-year highs, as traders awaited the release of the September US CPI. This data is essential for the analysis of the future Federal Reserve actions. Wall Street hit fresh record highs, led by the main technology giants, as the market looked positive before the inflation data. On the other hand, India’s benchmark equity indices touched the red zone investing a brief upturn to end lower in the final an hour of trading. These lows brought the herders to the vicinity of Wednesdays worst levels, signifying a gracious market instability due to changing client trends. Lastly, while the larger picture painted the positive trend across the region, India painted a slightly more concerned picture as traders responded to domestic factors and international signals.

Economic Calendar:

• USD: Reserve Balances with Federal Reserve Bank on 10^th October 2024
• IND: Foreign Exchange Reserves (USD) on 11^th October 2024.
• USD: Core PPI (MoM) (Sep) on 11^th October 2024.
• IND: WPI Inflation (YoY) (Sept) on 14^th October 2024.

IPO Watch:

Brokerage Radar:

HSBC ON VARUN BEVERAGES:

Maintain Buy with target price of Rs 780, Equity issuance to further strengthen the balance sheet, QIP amount implies 4% equity dilution, Faster ROIC expansion is possible as value shifts from debt to equity holders.

GOLDMAN SACHS ON GODREJ CONSUMER:

Maintain Buy with target price of Rs 1525, HUL’s soap price increases improve GCPL’s ability to hike prices, HUL has raised prices 5-7% in a number of SKUs in its soap portfolio  Soaps business contributes 35% of GCPL’s India business, Expect GCPL to also follow suit which will gradually lower the margin pressures over next 6 months.

EQUIRUS ON MAS FINANCIAL:

Initiate Long with target price of Rs 401,  Consistent, conservative and compliant – a classic lending model, Shifting towards direct retail channel, geo-diversification,  Aims to double AUM every 2-3 years over the decade, Healthy asset quality trends,  Profitability to remain intact despite business model tweak.

International Markets:

U.S & Europe:

*As per 10^th October.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

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