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

On Wednesday, Asian stocks are expected to open cautiously as markets around the world prepare for a crucial inflation data that is anticipated to provide information about the trajectory of the Federal Reserve’s main interest rate. Despite supply constraints globally, oil prices rose. While contracts for Hong Kong marginally increased and a measure of Chinese businesses with U.S. listings showed little change, futures for Japanese and Australian shares indicated slight drops. The U.S. stock market was negatively impacted by a collapse in technology businesses, with the Nasdaq 100 declining 1.1%. Nearly 2% was lost by Apple Inc., which also revealed the iPhone 15 and other goods. S&P 500 prices fell 0.6%. Prices for Brent Crude were over $92 per barrel at the same time. The yield on the 10-year U.S. bond was trading at 4.28% and Bitcoin was below 26,000-level. At 05:21 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 21 points or 0.10% at 20,148.

Economic Calendar:

  • USD : CPI (MoM) (Aug) on 13th Sep, 2023
  • USD : PPI (MoM) (Aug) on 14th Sep, 2023
  • INR : WPI Inflation (YoY) (Aug) on 14th Sep, 2023
  • INR : FX Reserves, USD on 15th Sep, 2023

Brokerage Radar:

BERNSTEIN ON ZOMATO: Outperform Rating; Target Raised To Rs 120; Continues To Raise Profitability Bar With Break-even 3 Quarters Ahead Of Target; Strong Execution & Profit Has Reinforced Investor Confidence; Stock Has Graduated From ‘GMV Multiple’ To ‘Profit Multiple’; Medium-term EV/EBITDA Multiple Look Reasonable

NOMURA ON HUL: BUY, TP Rs 2950; 2Q24F: Anemic demand; GPM to improve but OPM muted; Weak 2Q expected as demand remains unchanged with ltd. signs of improvement; significant step up in A&P to drag down EBITDA growth; 2Q demand trends: Vol growth in low single-digits y-y

CLSA ON CEMENT: Strength in demand continued in July & Aug; There has been an unseasonal price increase in Sept.  However, that is partly offset by a sharp jump in fuel costs; As such, don’t see a case for upward revision in earnings yet while val remains elevated

International Markets

 U.S & Europe:

Particulars 12th September Chg. Chg.(%)
Nasdaq 13773.62 -144.28 -1.04
Dow 34645.99 -17.73 0.00
FTSE 7527.53 30.66 0.41
CAC 7252.88 -25.39 -0.35
DAX 15715.53 -85.46 -0.54
Dow Fut.* 34599.92 -46.07 -0.13

Asian markets:

Particulars 13th September Chg. Chg.(%)
GIFT Nifty 20057.00 -16.50 -0.08
Nikkei 32675.89 -100.48 -0.31
Straits Times 3207.88 -6.58 -0.20
Hang Seng 17993.19 -32.70 -0.18
Shanghai 3116.97 -20.09 -0.64

ADR Watch:

Particulars       12th September  Chg.       Chg.(%)
Dr. Reddy 68.85 0.57 0.83
HDFC Bank 65.56 0.34 0.51
ICICI Bank 24.02 0.14 0.61
Infosys 18.07 0.12 0.64
Wipro 5.21 -0.05 -0.86

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 82.92 0.11
Brent 92.03 -0.03
Gold 1931.25 -0.20
Silver 23.188 -0.91

FIIs & DIIs:

Particulars   12th September  11th September
FIIs                          -1047.19 1473.09
DIIs 259.49 366.24

News Update:

NTPC: The power company completed the trail operation of Unit 1 of the 800 MW capacity of Stage I of the Telangana Super Thermal Power Project and consequently included it in its installed capacity. With this, the installed capacity of NTPC and the NTPC Group has become 57,838 MW and 73,824 MW, respectively. Infosys: The IT major has tied up with STARK Group, Europe’s largest retailer and distributor of building materials, to establish a state-of-the-art data centre in Denmark, which will serve as the foundation to drive technological advancements with an ‘AI first’ approach powered by Infosys Topaz.

Wipro: Wipro Holdings (UK) has transferred 100% of its shareholding in Wipro 4C NV to Wipro IT Services UK Societas, effective Sept 12. Wipro Holdings (UK) and Wipro IT Services UK Societas are wholly-owned subsidiaries of the company, while Wipro 4C NV is the step-down subsidiary. The rationalisation and simplification of the overall group structure is the objective behind the stake transfer.

IRCTC: The company signed an MoU with NBCC Services for the planning, designing, and execution of interior works for its upcoming office space in Delhi. The cost of the project is Rs 31.4 crore.

Tata Power: Subsidiary Tata Power Solar Systems, signed an MoU with the Small Industries Development Bank of India to finance MSMEs for solar adoption.

Mahindra and Mahindra: Company has been fined Rs 1,69,949 by the Assistant Commercial Taxes Department, Begumpet Division, Hyderabad for not reversing VAT ITC, as per an exchange filing. It also added that it is hopeful for a favourable outcome at the appellate level.

Avenue Supermarts: The retailer has opened a new store in Perungudi, Tamil Nadu, taking the total number of stores to 334.

Source: Moneycontrol, Bloomberg Quint, Investing 

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