Market View 12th January 2024

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

Japan’s Nikkei index rose more than 1%, along with other Asian indices, on Thursday after surpassing the 35,000 mark for the first time since 1990. Investors are currently awaiting Chinese trade statistics. The 3.4% year-over-year increase in the U.S. CPI in December exceeded the 3.2% increase predicted by Bloomberg for the same month. Furthermore, the print exceeds the 3.2% CPI that was released in November. Investors became less optimistic about a rate cut by the Federal Reserve anytime soon in response to the higher U.S. CPI data. The S&P 500 index dropped by 0.07% and the Nasdaq 100 increased by 0.17% on Thursday, marking a turbulent session for Wall Street. The decline in the Dow Jones Industrial Average was 0.44%. A barrel of Brent crude was trading for $77.41, up 0.79%. An ounce of gold was trading at $2,031.18, up 0.11%.

Economic Calendar:

• USD : PPI (MoM) (Dec) on 12^th January, 2024
• USD : Retail Sales (MoM) (Dec) on 17^th January, 2024
• INR : CPI (YoY) (Dec) on 12^th January, 2024
• INR : FX Reserves, USD on 12^th January, 2024

Brokerage Radar:

CLSA ON TATA POWER: Buy, TP Raised to Rs 955(on roll fwd); Europe, UK & China led significant vol growth in 3Q; CO raised JLR Ebit margin guidance to 8% from 6% for FY24 & expects Ebit margin to reach 10% by FY26; JLR expects to reduce net debt to £1bn by end of FY24

CITI ON ZEE ENT: Buy, TP Rs 340; News Flow Suggests Potential Uncertainty Around Merger Completion; However, assuming merger goes through (base case assumption), expect it to drive advt. & subscription revenue synergies along with potential cost synergies as well

UBS ON BAJAJ AUTO: Sell, TP Rs 5600; Buy-back announced at Rs10k/sh; promoters expected to participate; This means co will buy-back c1.41% of total equity& implies promoter group will potentially receive Rs22bn; Stk has already run-up c6% since news of a board meeting

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Polycab India: The company denied receiving communication from the Income Tax department regarding the outcome of the search, a day after authorities alleged detection of unaccounted cash sales of Rs 1,000 crore and non-genuine expenses.

Infosys: The company will acquire semiconductor design services provider, InSemi for Rs 280 crore.

Tata Power: The company’s unit Tata Power Renewable Energy signed a memorandum of understanding with the Gujarat government to develop 10,000 MW of renewable energy power projects across multiple sites in Gujarat.

UltraTech Cement: The company acquired a 26% stake in Amplus Ages for Rs 49 crore to meet green energy needs, and optimise energy costs.

H.G Infra Engineering: won the bid for a Rs 716 crore construction order from the Central Railway. The order involves the construction of a new 49.45-kilometer broad-gauge railway line between Dhule (Borvihir) to Nardana in Maharashtra.

Life Insurance Corp: The insurer received two tax demand orders worth of Rs 3,529 crore from Mumbai tax authorities.

Mahindra and Mahindra: The company will invest Rs 630 crore in Mahindra Electric Automobile by subscribing to a rights issue.

Vedanta: Billionaire Anil Agarwal tried to assuage concerns over the company’s debt burden by posting a message on social media that the company has a comfortable financial situation and has never defaulted on payments.

Container Corp: The company reported total volumes at 11.5 lakh TEU, up 6% YoY, and export-import volumes at 9.02 lakh TEU, up 8.3% YoY and domestic volumes at 2.48 lakh TEU, down 1.25% YoY.

apacite Infraprojects: The company raised Rs 200 crore via QIP, allocating 79.47 lakh shares to investors at Rs 251.65 apiece, a discount of 5% to the floor price. Bank of Baroda: The Reserve Bank of India waived off a penalty worth Rs 5 crore. Ugro Capital: The company reported assets under management at over Rs 8,300 crore, up 60% YoY, and gross loan origination at Rs 2,810 crore, up 50% YoY.

Source: Moneycontrol, Bloomberg Quint, Investing 

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