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

Asian stocks displayed bullish sentiment on Wednesday following the US Federal Reserve’s decision to cut key interest rates by 50 basis points to a range of 4.75-5.00%, the first reduction in over four years. This anticipated move aligned with market expectations, as traders speculated on potential deeper cuts ahead. Concurrently, India’s benchmark equity indices declined, ending a two-day gain, amid cautious trading. The India VIX, a measure of market volatility, rose by 6.2%. The Fed also revised its inflation forecasts downward, projecting 2.3% for overall inflation and 2.6% for core inflation. After the announcement, US stocks initially reached record highs but later pulled back as the Fed signaled a careful stance on future policy easing. The ‘Magnificent Seven’ megacap stocks saw a slight decline of 0.1%, while small-cap benchmarks remained stable amidst the shifting market dynamics.

Economic Calendar:

  • USD: CFTC Gold Speculative net position 20th September.
  • IND: FX Reserves, USD on 20th September.

IPO Watch:

Company Opsen Close Price View
Western carriers  Ltd 13 Sept 19 Sept 163-172 Apply
Northern Arc capital ltd 16 Sept 19 Sept 249-263 Apply
Arkade Developers Ltd 16 Sept 19 Sept 121-128 Apply

Brokerage Radar:

CITI ON EXIDE:

Maintain Buy; Cut target price to Rs 560 from Rs 610,  Sluggishness in Auto OEM Volumes Likely to Impact Revenue Growth, but not significantly, Exide cannot remain unscathed from this moderation in CV/PV volumes, However, the company is expected to benefit from the replacement demand.

EMKAY ON TATA MOTORS:

Upgrade to Buy from Add; target price at Rs 1175, China relatively smaller for JLR; profitability, deleveraging story largely intact, Demand and margin outlook improving for domestic CV business, PVs: Relatively better placed than industry on new launches, lower inventory.

JPMORGAN ON WESTLIFE FOOD:

Maintain Overweight with target price of Rs 925, Value efforts helping traffic and comps will follow, ‘Chicken’ and ‘Coffee’ could be significant AUV enhancers; Desserts is another key lever to play, Growing salience of digital assets widens consumer accessibility dep, Stores to incrementally skew towards N South/smaller towns/Drive-Thru stores.

International Markets:

U.S & Europe:

Particulars     18th  Sept   Chg. Chg.(%)
Nasdaq 17,573.30 -54.76 -0.31
Dow 41503.10 -103.08 -0.25
FTSE 8,253.68 -56.18 -0.68
CAC 7,444.90 -42.52 -0.57
DAX 18,711.49 -14.59 -0.08
Dow Fut.* 42096 188 0.45

*As per 19th September.

Asian markets:

Particulars   19th Sept Chg. Chg.(%)
GIFT Nifty                  25437 40.90 0.16
Nikkei 37,316.84 936.67 2.57
Straits Times 3,600.43 8.01 0.22
Hang Seng 17,673.76 13.74 0.08
Shanghai                               2,714.65 -2.63 -0.10

Stocks strong on Chart:

Index F&O Cash
ICICI BANK MAX FIN VARUN
HDFC BANK BIOCON MAX HEALTH
BAJAJ FIN CHAMBAL FERT OLECTRA
M & M HAVELLS UTI AMC
TCS SIEMENS DEVYANI
LT SAMVARDHAN JIO FIN

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.680 -0.01
Brent 73.31 -0.46
Gold 73,031.00 -0.03
Silver 88,255.00 -0.05

FIIs & DIIs:

Particulars        18th Sept        17th Sept
FIIs                          1,153.69 482.69
DIIs 152.31 874.15

News Update:

Company

Nazara Technologies: The company raised up to Rs 900 crore via preferential issue of shares at an issue price set at Rs 954.27 per share and to acquire 19.35% stake in subsidiary Absolute Sport (Sportskeeda) for Rs 145 crore.
ION Exchange: The company received Rs 161 crore order from Adani Power for a water and environment management solution.
Aditya Birla Capital: The company received ‘no objection’ from the RBI for the proposed amalgamation of Aditya Birla Finance Ltd. with itself; it will create a large unified operating NBFC.
IREDA: Department of Investment and Public Asset Management has allowed dilution of up to 7% government holding via QIP.
BL Kashyap: The company secured a new order worth Rs 221 crore from SSS Realty & Co. for construction work in Bangalore. The total order book as of date stands at Rs 3,546 crores.

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