Market View 13th June, 2024

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

Markets in Asia-Pacific rose on Thursday after the US Federal Reserve kept its benchmark federal rates unchanged for seventh time, and as inflation data came softer than anticipated. The Nikkei 225 was 47.60 points or 0.12% higher at 38,924.31, and the S&P ASX 200 was 37.70 points or 0.49% higher at 7,753.20 as of 06:42 a.m. The US Consumer Price Index fell to 3.3% on year in May, against 3.4% analysts projected in a Bloomberg survey. Core CPI, which keeps aside volatile food and energy prices, eased to 3.4% compared to 3.5% analysts forecasted. The US stocks reached new all-time peaks as a widespread easing of inflation led to a sharp drop in bond yields, prompting traders to wager that the Federal Reserve may cut rates for two times despite dot plots indicating one. The current federal fund rate range stands at 5.25-5.50%. The S&P 500 Index and Nasdaq 100 rose 0.85% and 1.53%, respectively, as of Wednesday. The Dow Jones Industrial Average decline 0.09%.

Economic Calendar:

• USD: PPI (MoM) (May) on 13^th June, 2024
• USD: Initial Jobless Claims on 13^th June, 2024
• INR: WPI Inflation (YoY) (May) on 14^th June, 2024
• INR: FX Reserves, USD on 14^th June, 2024

Brokerage Radar:

JEFFERIES ON HINDALCO: Buy, TP raised to Rs 810; Novelis’ 4Q EBITDA rose 28% YoY(+13% QoQ) & inline; Vol grew 2% YoY while EBITDA/t rose 8% QoQ to $540, Raise FY25-26E EPS by 2-3%; Vals reasonable at 6.1x FY25E EV/EBITDA

CITI ON MARICO: Buy, TP raised to Rs 610; 4Q In-line; Pricing Action to Drive Growth Expect trajectory to improve in FY25E:

a)vol growth acceleration

b)pricing-led growth

NOMURA ON LUPIN: Buy, TP Rs 1949; 4Q: EBITDA 8% higher than est. Co expects stronger FY25 (vs FY24) driven by growth across key geographies & improvement in EBITDA margins; Think US product launches & a tight leash on costs could present upside potential to current earnings est.

International Markets:

U.S & Europe:

 

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

 

News Update:

Tata Power: The company strengthens its nationwide e-bus charging network with high-capacity, fast charging points.

Firstsource Solution: Prasant Nadella has resigned as President and Chief Operating Officer and Senior Management Personnel of the company.

L&T Finance: Shareholders of the company are to offer 8.82 crore shares at Rs 169.7 apiece, as per Bloomberg data.

Nestle India: The board approved the continuation of royalty payments at the current rate of 4.5% to the parent company.

Amber Enterprises: The company acquired an additional 4.6% stake in IL JIN Electronics for Rs 33 crore.

Dr. Reddy’s Laboratories: The company’s step-down subsidiary, Dr. Reddy’s USA and Ingenus Pharmaceuticals have entered into a license agreement under which Dr. Reddy’s USA has licensed from Ingenus the exclusive rights to commercialise cyclophosphamide injection RTD in the United States.

Arvind: The strike at Santej Plant is called off by workers. The potential revenue loss due to the strike is Rs 180 to Rs 200 crore.

Gensol Engineering: The company received a Gujarat Urja Vikas Nigam Limited 250 MW battery energy storage project worth Rs 1,340 crore to supply electricity on an “on-demand” basis to Gujarat State’s DISCOMs during peak and off-peak hours.

Whirlpool of India: The company signed a three-year joint marketing pact with HUL for product marketing and advertorials.

Exide Industries: The company invested Rs 75 crore by subscribing to the right issue of subsidiary Exide Energy Solutions. The total investment stands at Rs 2,452.24 crore.

Sobha: The company approved the rights issue to open on June 28 and close on July 4 at a price of Rs 1,651 per share.

Source: Moneycontrol, Bloomberg Quint, Investing 

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