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

The latest inflation figures increased wagers on Federal Reserve rate hikes, sending Asian markets lower alongside Wall Street. In Australia, South Korea, and Japan, shares decreased. The index of Chinese businesses with American listings, known as Golden Dragon, experienced its biggest monthly decline. After the S&P 500 dipped for the first time in five days, other U.S. equity futures contracts showed little movement, with banks lagging ahead of Friday’s earnings from JPMorgan Chase & Co., Citigroup Inc., and Wells Fargo & Co. The yield on the 10-year U.S. bond was 4.69% at the time, and Bitcoin was trading below the 27,000 mark. While WTI Crude was trading above the $83 level, Brent Crude was trading above $86 per barrel.

Economic Calendar:

  • USD : Retail Sales (MoM) (Sep) on 17th Oct, 2023
  • USD : Building Permits (Sep) on 18th Oct, 2023
  • INR : M3 Money Supply on 18th Oct, 2023
  • INR : FX Reserves, USD on 20th Oct, 2023

Brokerage Radar:

JEFFERIES ON KFIN TECH: Buy, TP raised to Rs 560; While Asian mkt will be organic, it may explore M&A in western mkt.; Domestic MFs & issuer solutions are growing at steady pace; Raise earnings by 1-2% & see 17% Cagr in profit over FY23-26; cashflows can aid M&A.

GS ON TCS: Buy, TP Rs 4020; Rev growth of -0.1% qoq (constant Fx; +2.8% YoY) below GSe of +1% qoq; 1% qoq decline in headcount suggests weak near term rev outlook; Lower rev est. by up to 1%, with FY24 rev growth of 3.8% (constant Fx; vs 5% earlier)

International Markets

 U.S & Europe:

Particulars 12th October Chg. Chg.(%)
Nasdaq 13574.22 -85.46 -0.63
Dow 33631.14 -173.73 -0.51
FTSE 7644.78 24.75 0.32
CAC 7104.53 -26.68 -0.38
DAX 15425.03 -34.98 -0.23
Dow Fut.* 33665.57 34.43 0.10

Asian markets:

Particulars 13th October Chg. Chg.(%)
GIFT Nifty 19695.50 -139.00 -0.70
Nikkei 32356.76 -137.90 -0.43
Straits Times 3191.67 -27.02 -0.84
Hang Seng 17907.02 -331.19 -1.82
Shanghai 3088.83 -19.07 -0.61

ADR Watch:

Particulars       12th October  Chg.       Chg.(%)
Dr. Reddy 66.12 -1.27 -1.88
HDFC Bank 58.80 -0.32 -0.54
ICICI Bank 22.63 -0.15 -0.66
Infosys 16.46 -1.15 -6.53
Wipro 4.86 -0.17 -3.29

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.25 -0.13
Brent 86.64 0.74
Gold 1885.85 0.15
Silver 22.098 0.63

FIIs & DIIs:

Particulars   12th October     11th October
FIIs                          -1862.57 -421.77
DIIs 1532.08 1032.02

News Update:

Infosys: Temasek has extended the Infosys-Temasek digital services JV by five years. Infosys’ Q2 FY24 attrition fell to 14.6% vs. 17.3% QoQ. An interim dividend of Rs 18 per equity share was declared, with the record date set for Oct. 25.

HCLTech: The company clocked the highest ever new bookings of $4 billion in Q2. Its attrition fell to 14.2% vs. 23.8% YoY. An interim dividend of Rs 12 per equity share was declared, with the record date set for Oct. 20.

Tech Mahindra: Company to sell a 33% stake in a South African unit for ZAR 23.95 million (approximately Rs 10.5 crore). Divestment is undertaken to comply with South African Broad-Based Black Economic Empowerment guidelines.

Maruti Suzuki: The company will consider a preferential issue of equity to Suzuki Motor Corp. as consideration for acquiring Suzuki Motor Gujarat.

Airline Stocks: Air passenger traffic grew 18.3% to 1.22 crore in September. Indigo’s market share increased to 63.4% in September from 63.3% in August; Vistara’s share increased to 10% from 9.8%; and AirAsia India’s share fell to 6.7% from 7.1%.

IRB Infrastructure Trust: The company has executed definitive agreements with affiliates of Singaporean sovereign wealth fund GIC as financial investors and SPV Samakhiyali Tollway to implement the Rs 2,092 crore Samakhiyali Santalpur BOT project in Gujarat. The Trust will acquire a 99.96% stake in STPL for a total consideration of Rs 116.2 crore.

GMR Airports Infrastructure: September passenger traffic was up 23% YoY at 94.16 lakh and aircraft movements were up 14% YoY at 62,230.

Dr. Reddy’s Laboratories: The company has been issued Form 483 with nine observations from the U.S. FDA for Bachupally Manufacturing Plant, Hyderabad. The inspection was conducted from Oct. 4 to Oct. 12.

Sun Pharmaceuticals: Sun Pharma’s CEQUA 0.09% phase 4 study data shows sustained improvement in dry eye disease signs and symptoms in patients who switched from Restasis 0.05%.  

Lupin: The company has received tentative approval from the US FDA to market a generic equivalent of Xywav Oral Solution, of Ireland’s Jazz Pharmaceuticals. The product will be manufactured at Lupin’s Somerset facility in the U.S.

Panacea Biotec: The company has been issued Form 483 with nine observations from the U.S. FDA for the Baddi facility in Himachal Pradesh. The inspection was conducted from Oct. 3 to Oct. 12.

Source: Moneycontrol, Bloomberg Quint, Investing 

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