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

Following a tech-driven sell-off on Wall Street, Asian equities futures traded slightly lower as investors awaited U.S. monthly inflation data that will help determine the outlook for the Federal Reserve’s upcoming actions. American futures saw a small increase in early Asian trading. While contracts for Australian shares barely changed, those for benchmarks in Japan and Hong Kong declined. Wednesday saw a 0.7% loss in the S&P 500 and a 1.1% decline in the Nasdaq 100 due to a 4.7% decline in Nvidia Corp. On worries that a potential escalation of the war between Russia and Ukraine may choke off additional supply in an already constricting market, oil rose to its highest level in over nine months. Meanwhile, Brent crude was trading around $87 a barrel and West Texas Intermediate was below the $85-mark. The yield on the 10-year U.S. bond was trading at 4% and Bitcoin was below 30,000-level. At 5:17 a.m., the GIFT Nifty was down 88 points or 0.44% at 19,759.

Economic Calendar:

  • USD : CPI (MoM) (Jul) on 10th Aug, 2023
  • USD : Initial Jobless Claims on 10th Aug, 2023
  • INR : Interest Rate Decision on 10th Aug, 2023
  • INR : Reverse REPO Rate on 10th Aug, 2023

Brokerage Radar:

UBS ON SIEMENS: Buy, TP Rs 4500; Topline beat of 7% vs expectation, while EBITDA missed est. by 2%, driven by 100bps miss on EBITDA margins; PAT ahead by 7% largely driven by higher other income; On new order intake, quarterly run rate remains well above Rs50bn for past 3 qtrs now

MS ON TRENT: EW, TP raised to Rs 1624; Earnings beat est.; Continued strong fashion topline growth delivery momentum, reduced subsidiary losses & better investor disclosure are +ves

CITI ON BHARAT FORGE: Sell, TP Rs 800; 1Q above Est., Driven By Defence Exports; Mgmt. outlook +ve across segments; Though demand environment is benign, new biz should drive rev & profit growth; Think +ves from defence export orders are now well priced in

CLSA ON MAX FIN: Buy, TP Raised to Rs 1025; Steady 1Q24 with VNB margins up 1% YoY; Axis Bank to increase stake to +19% in Max Life; VNB margin of 22.2% given cyclical quarter; Healthy traction in retail protection, non-par savings & proprietary channel

International Markets

U.S & Europe:

Particulars 09th August Chg. Chg.(%)
Nasdaq 13722.02 -162.31 -1.17
Dow 35123.36 -191.13 -0.54
FTSE 7587.30 59.88 0.79
CAC 7322.04 52.57 0.72
DAX 15852.58 77.65 0.49
Dow Fut.* 35244.30 120.90 0.34

Asian markets:

Particulars 10th August Chg. Chg.(%)
GIFT Nifty 19609.00 -3.00 -0.02
Nikkei 32338.95 134.62 0.42
Straits Times 3305.73 -8.06 -0.24
Hang Seng 19088.51 -157.52 -0.82
Shanghai 3245.59 1.10 0.03

ADR Watch:

Particulars    09th August  Chg.       Chg.(%)
Dr. Reddy 71.54 1.55 2.21
HDFC Bank 66.83 0.31 0.47
ICICI Bank 23.64 -0.02 -0.08
Infosys 16.71 -0.06 -0.36
Wipro 5.00 0.02 0.40

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 82.84 -0.10
Brent 87.41 -0.16
Gold 1950.85 -0.01
Silver 22.742 0.05

FIIs & DIIs:

Particulars   09th August 08th August
FIIs                          644.11 -711.34
DIIs -597.88 537.31

News Update:

Axis Bank: The board has approved the proposal to infuse Rs 1,612 crore in Max Life through preferential allotment. The bank’s direct stake in Max Life will increase to 16.22%, and the collective stake of Axis Entities will increase to 19.02%. The bank will acquire 14.25 crore shares with a face value of Rs 10 each and a market value of Rs 113.06 apiece.

Rate-sensitive sectors: The RBI will announce its interest rate decision along with its economic outlook on Thursday. In focus will be the banking and financial services, auto, real estate, and consumer durables sectors.

Bombay Dyeing: The board approved the termination of the deposit agreement and the delisting of GDR from the Luxembourg Stock Exchange.

Zee Entertainment: The NCLT will pronounce its verdict today on the Zee-Sony merger. On July 10, the tribunal reserved its order on the merger.

Suzlon Energy: The company set the floor price at Rs 18.44 apiece for Qualified Institutional Placements that opened on Aug. 9. It aims to raise Rs 1,500 crore, with a green shoe option of Rs 500 crore.

Angel One: The board approved the Scheme of Arrangement involving the transfer of business undertakings to two subsidiaries—Angel Securities and Angel Crest. No cash consideration is payable for slump sales.

FDC: The board approved the acquisition of an additional 7% stake in its subsidiary FDC SA from other existing shareholders and the settlement of their existing outstanding loan with interest. It also approved the buyback of up to 31 lakh shares (1.87% of the total paid-up equity capital) at a price of Rs 500 apiece, for an aggregate amount not exceeding Rs 155 crore.

Source: Moneycontrol, Bloomberg Quint, Investing 

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