Market View 11th August 2023

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

In spite of indications that price hikes are slowing, predictions that the Federal Reserve will maintain its strict monetary policy in order to prevent an inflationary flare-up led to mixed openings for Asian stocks. Contracts for Australian equities decreased while those for Hong Kong benchmarks increased. The S&P 500 index erased a rise of as much as 1.3% to close Thursday barely altered, which led to an increase in US equity futures. West Texas Intermediate was trading below the $83 per barrel while Brent crude was at $86.42 per barrel. The yield on a 10-year US bond was 4.11%, while the price of Bitcoin fell below the 30,000 mark. The GIFT Nifty, a leading indication of the performance of the Nifty 50 Index in India, was down 53 points or 0.27% at 19,547 at 5:58 a.m.

Economic Calendar:

• USD : PPI (MoM) (Jul) on 11th Aug, 2023
• USD : Retail Sales (MoM) (Jul) on 11th Aug, 2023
• INR : Industrial Production (YoY) (Jun) on 11th Aug, 2023
• INR : Manufacturing Output (MoM) (Jun) on 11th Aug, 2023

Brokerage Radar:

JEFFERIES ON PRESTIGE ESTATES: Downgrade to Hold, TP Raised to Rs 620; Largest listed developer by pre-sales in 1Q with a strong 30% rise YoY on a good performance of core Bangalore market; Management remains confident of 25% YoY growth on a strong launch pipeline; Net debt rise continued as record capex pace is maintained. A sharp 45% rally since Mar’23 lows has brought valuations near +1sd levels, find upside ltd.

MS ON BAJAJ ELECTRICAL: UW, TP Rs 905; While co maintained share across key categories; but growth in FMEG was flat due to muted demand & un-seasonal rains

Management expects demand to recover in H2 driven by festive season; See downside risks to cons est.

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 ZEE ENT: Buy, TP Rs 300; NCLT today in an unconditional verbal order approved SonyZee will make a filing with ROC after which Zee shares will be delisted & merged co will be relisted; Sony will hold a majority 50.86% of merged co; Merged co will have cash of $1.5bn

International Markets

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

HCL Tech: The company has won a $2.1-billion contract from Verizon Communications to manage the networks for the business customers of U.S.’ biggest telecom operator by subscribers. The deal, with a total contract value of $2.1 billion over the next six years, will see Verizon Business lead sales and development, while HCLTech will take care of post-sale network rollout and support.

Adani Enterprises: The company said no such event concerning the media report on exiting Wilmar venture which requires any disclosure.

NBCC India: The company awarded an order for redevelopment of GPRA Colony at Sarojini Nagar, New Delhi to Varindera Constructions for a total contract value of Rs 955.8 crore.

DLF, Medanta: The companies entered into a 50:50 joint venture in a special purpose vehicle to set up a 400-bed multi-specialty hospital hospital in Delhi.

SJVN: The company’s subsidiary SJVN Green Energy has bagged the 90 MW floating solar project at the Omkareshwar reservoir, Madhya Pradesh. The project cost is Rs 610 crore. It also signed an MoU with ONGC for joint development of renewable energy projects and with Sambhar Salts for development of solar project/park in phases.

Zee Entertainment Enterprises: The company’s unit Zee Studios entered into a share purchase agreement with Elitecast Media to sell Zee Unimedi for Rs 2.4 crore. Carysil: The company acquired 43,379 square meters of land in Bhavnagar, Gujarat, opposite to its existing factory, at the cost of Rs 9.07 crore for the future expansion and the new projects, if any.

Source: Moneycontrol, Bloomberg Quint, Investing 

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