Market View 18th July, 2024

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

Asia-Pacific markets declined on early Thursday tracking sharp overnight losses in their US peers as chip stocks stumbled on caution of a strict export restrictions on China.  Biden administration said it’s mulling to put stricter curb on companies like Tokyo Electron and ASML, which continued to give access to China to advance semiconductor technology markets, Bloomberg reported.  The possibility of a greater US and China trade conflict pulled down the Nasdaq Composite index 2.8% lower on Wednesday as Nvidia Corp and Apple Inc led losses.  Overseas investors remained net buyers of Indian equities for the third consecutive session.

Economic Calendar:

• USD: Initial jobless claim on 18 July
• INR : Budget on 23 July

Brokerage Radar:

JPMorgan maintains a neutral call on Asian paints

Poor mix and subdued demand weighed on the revenue, adding that price hikes, rural to aid better growth from Q2 onwards.  Q1 earnings miss on weak margin print and tepid revenue growth.   Lower FY25-27 EPS by 3-5% by further lowering margin assumptions

Macquarie maintains a neutral call on Bajaj Auto

Says ramp-up of E3W volumes & distribution for EVs & premium motorcycle should lend growth support

CLSA maintains an underperform call on Eicher Motors

Royal Enfield holds a market-leading position in premium motorcycle segment with 29.5% market share, however adding that is it is losing market share in the segment as competitors continue to scale up

Goldman Sachs maintains a neutral call on Asian Paints with target of 2750

After the company reported its Q1 results just yesterday. EBITDA decline of 20% YoY In Q1, demonstrates increasing headwinds, adding that the margin was impacted by increase in staff costs and advertising, impact of increased competitive intensity likely to create further pressure going forward.

International Markets:

U.S & Europe:

*As per 18th July.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

ONGC The company commenced production from a coal bed methane block in Bokaro, Jharkhand. Initial production at 1.7 lakh SCMD is expected to be ramped up to 3 lakh SCMD by the end of FY25.

TATA POWER Plans to invest Rs 20,000 crore in capital expenditure in fiscal 2025 to expedite its pivot to renewable energy and augment its transmission and distribution businesses.

KEC INTL Received new orders worth Rs 1,100 crore for transmission and distribution projects in India and overseas

TRIVENI ENG Started commercial operations of its Indian-made foreign liquor business and launched two whisky products, Matsya and The Crafters Stamp.

GMR AIR Reported 8% growth in total passenger traffic year-on-year at 1.06 crore in the month of June and a 6% jump in total aircraft movements at 69,055.

Source: Moneycontrol, Bloomberg Quint, Investing 

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