Market View 29th Jan, 2025

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

Asian shares rose on Wednesday, following a rebound in U.S. stocks, particularly in the technology sector, after a global market selloff. Investors are now focusing on the Federal Reserve’s upcoming decision on interest rates and the start of earnings season for large U.S. companies. Tech stocks, especially Nvidia, surged after losing significant value recently, with Nvidia rebounding strongly. Microsoft is also in discussions about its future plans. In India, the stock market recovered from a two-day decline, with bank stocks driving the gains. Both the Sensex and Nifty indices closed higher, signaling investor optimism. The recovery is linked to the stabilization of global tech stocks and the anticipation of important economic decisions, particularly from the U.S. Federal Reserve, which is expected to influence global market trends. This shift in sentiment has helped restore confidence in the markets, particularly in Asia and India, as investors await further developments.

Key Today’s Q3 Results

ADANIPOWER, AMBUJACEM, ASKAUTOLTD, BAJFINANCE, BANSALWIRE, DEEPAKFERT, ECLERX, HINDMOTORS, JSL, JWL, KPITTECH, MARUTI, ORIENTELEC, SMCGLOBAL, SRF, TATAMOTORS.

Economic Calendar:

• USD: Mortgage Market Index on 29^th January 2025.
• IND: Federal Fiscal Deficit (Dec) on 31^st January 2025.
• USD: ISM Manufacturing PMI (Jan) on 3^rd February 2025.
• IND: Indian Union Budget on 1^st February 2025.

IPO Watch:

Brokerage Radar:

JEFFERIES ON ITC:

Maintain Buy, target price ₹550, Union Budget remains a key event for tobacco taxation, Building in a 5% effective tax rate hike, which would be positive, A 5-9% tax hike would be tough but manageable, Tobacco taxation was last changed in 2023, resulting in a 2% increase in tax per stick, Company should be able to offset this with a 3-4% product price hike, Continues to trade at a 45-50% discount to peers.

JEFFERIES ON KAYNES TECHNOLOGY:

Upgrade to Buy from Hold, target price 5,400 (from ₹6,950), Stock has sharply corrected by 38% in the last month, Most backward-integrated Indian EMS player, Core manufacturing operating margin at 14-15%, much higher than peers.

JEFFERIES ON IGL:

Upgrade to Buy from Underperform, target price ₹505 (from ₹295), Company has secured significant long-term LNG contracts at attractive prices, Raise EPS estimates by 52%/55% for FY26/27E, See limited near-term impact on ROCE, Q3 volume growth muted, but outlook remains positive.

International Markets:

U.S & Europe:

*As per 29^th January.

 Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

NEWS UPDATES

Source: Moneycontrol, Bloomberg Quint, Investing 

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