Market View 12th July, 2024

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

US stock traders cheered signs of disinflation, causing bond yields to plummet on Thursday. This comes as the markets expect the Federal Reserve to soon reduce interest rates. These expectations also triggered a significant shift in the stock market. Traders exited the long-favored safety trade of technology megacaps and moved towards small caps. The S&P 500 fell 0.74% to 5,592 after its longest rally this year. The Dow Jones Industrial Average rose 0.05%.The Indian benchmarks opened positively but relinquished all gains within the first hours of trading. Under pressure from selling, the Nifty fell below 24,200. However, it recovered all losses during the second half of the session, ultimately closing nearly unchanged. Overseas investors turned net sellers of Indian equities after being buyers for six days. Foreign portfolio investors offloaded stocks worth Rs 1,137.01 crore, while domestic institutional investors stayed net buyers for the fourth session and bought equities worth Rs 1,676.47 crore.

Economic Calendar:

• IND: Bank loan growth 12th July
• IND: CPI June on 12th July
• IND: BUDGET on 23^rd July

Brokerage Radar:

UBS maintain buy on TCS with target of 4600

UBS gives buy call on TCS, says co’s GenAI deal pipeline at $1.2 bn vs $900 m (QoQ) is worth watching. There were small but many positives in Q1 results, Another quarter of outperformance could lead to a re-rating

 Jefferies on TCS

upgrades to Buy from Hold; hikes target price to Rs 4,615 from Rs 4,030.Q1 .TCS is hiring at a seven-quarter high as emerging signs of revival. TCS offers value relative to Nifty as its current PE premium is below its 5-yr avg

UBS on ABB India:

Downgrade to Neutral from Buy; Hike target price to Rs 9100 from Rs 8830.Quarterly order run-rate beyond Rs 3800 cr from mobility or higher base order growth driving better earnings growth. Robust margins in the emerging portfolio in electrification driving ABB’s margins higher.

International Markets:

U.S & Europe:

*As per 12th July.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

Hindustan Zinc The state-owned company received renewable power from Serentica’s 180 MW solar project

Adani Wilmar The Ahmedabad-based company will acquire a 67% stake in specialty chemical company Omkar Chemical Industries at an enterprise of Rs 56.25 crore

Vodafone Idea Shareholders approved the issuance of preferential shares

Infosys The technology giant received a contract from the Delaware Department of Labor to upgrade its legacy systems

Pitti Engineering The company raises Rs 360 crore via QIP to allot 34.14 lakh shares at Rs 1054.25 per share.

JIO FIN Jio Financial gets RBI approval to become a core investment company

Oriental Rail Oriental Rail Infra’s arm gets order worth ₹432 cr for manufacture & supply of 1,200 BVCM-C Wagons

Source: Moneycontrol, Bloomberg Quint, Investing 

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