Market View 16th April 2024

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

Benchmarks across Asia-Pacific region were trading lower for second session in a row Tuesday, tracking overnight losses on Wall Street. Traders are awaiting a slew of economic data from China, including GDP, retail sales. The Nikkei 225 was trading 736.53 points or 1.91% lower at 38,470.78, and the S&P ASX 200 was trading 101.03 points or 1.30% down at 7,651.50 as of 07:09 a.m. The S&P 500 Index and Nasdaq Composite settled 1.20% and 1.79% lower, respectively, as of Monday. The Dow Jones Industrial Average declined 0.65%. U.S. Treasuries sold off on Monday as solid retail sales spurred bets the Federal Reserve will be in no rush to cut interest rates, with traders also getting ready for a flurry of bank debt sales, reported Bloomberg. Brent crude was trading 0.51% higher at $90.61 a barrel. Gold was higher by 0.07% at $2,385.02 an ounce.

Economic Calendar:

• USD : Fed Chair Powell Speaks on 16^th April, 2024
• USD : Building Permits (Mar) on 16^th April, 2024
• INR : M3 Money Supply on 17^th April, 2024
• INR : FX Reserves, USD on 19^th April, 2024

Brokerage Radar:

JEFFERIES ON TCS: Hold, TP Rs 4030; 4Q beat estimates, but demand pressures persist. Despite strong deal bookings, management commentary was cautious. Continued headcount decline & sharp reduction in subcontractors do not offer comfort on growth.

MS ON EXIDE: OW, TP raised to Rs485 from Rs373

Share price could rise significantly over next 10 yrs, as it could become a leading player in battery cell localisation. Govt. support for “Made in India” EVs, strong auto & industrial customer tie-ups, tech tie-ups, all in its favor; Addressable TAM for Exide could rise sharply, as est. 150GWh/US $13bn TAM by 2030 for India’s lithium battery segment; Hyundai/Kia contract validates capabilities; Likely a multi-year contract

CLSA ON VEDANTA: Upgrade to Buy, TP Raised to Rs 390 from Rs 260; Co guided for group Ebitda to rise from US$5bn (VEDL: US$4.7bn) to US$6bn/US$7.5bn by FY25/27. While debt at parent Vedanta Resources (VRL) has now declined meaningfully, leverage at VEDL has increased

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Jio Financial Services: The company announced the formation of a 50:50 joint venture with BlackRock and BlackRock Advisors Singapore to undertake wealth management business in India. It will also incorporate a wealth management company and a brokerage company in India.

Adani Energy Solutions: The company’s transmission and smart metering business saw system availability of 99.6% in Q4 and added 174 ckms to the operational network during the quarter. The company’s distribution loss remained low at 5.09% in Q4 and maintained a supply reliability of more than 99.9%.

TCS: The company announced a new delivery centre in Brazil to transform their technology, with a focus on strategic areas such as digital transformation, artificial intelligence, and cognitive business operations.

JSW Infra: The company approved the re-appointment of Arun Maheshwari as CEO for three years, effective April 18.

Cipla: The company will acquire the cosmetics and personal care business undertaking of Ivia Beaute for Rs 130 crore.

Allcargo Terminals: The company’s March CFS volume of 54.7 ‘000 TEUs is up 1% YoY and up 8% month-on-month.

Gujarat Gas: The company signed a non-binding MoU to broaden the scope and accessibility of energy solutions for consumers. The alliance between two major players in the energy sector is set to deliver an extensive range of products and services throughout GGL’s authorised areas.

Manappuram Finance: The company will consider a $500 million fund-raising proposal on April 19 via external commercial borrowings.

General Insurance Corporation: The company approved the appointment of V. Balkrishna as CFO effective May 1.

Sula Vineyards: The company has acquired N D Wines, now holding 100% of its equity share capital, making it a wholly owned subsidiary.

Source: Moneycontrol, Bloomberg Quint, Investing 

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