Market View 19th Sept, 2024

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 20^th September.
• IND: FX Reserves, USD on 20^th September.

IPO Watch:

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:

*As per 19^th September.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

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