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

The strong sentiment on Wall Street, which saw the S&P 500 end July with its best sequence of monthly advances in nearly two years, gave Asian equities hope that the new month would begin with higher prices. Early on Tuesday, Japanese, Hong Kong, and Australian futures all pointed to gains as worries about an overheating share market and declining company earnings subsided. The S&P 500 closed at a 16-month high on Monday after slightly increasing its value to about 4,590 points. Since August 2020, the Nasdaq 100 has experienced the longest run of monthly advances. West Texas Intermediate was trading below the $82 level while Brent crude was trading around $85. The yield on a 10-year US bond was 3.96%, and the price of Bitcoin was below the 30,000 mark. At 5:32 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 53 points or 0.26% at 19,894.5.

Economic Calendar:

  • USD : JOLTs Job Openings (Jun) on 01st Aug, 2023
  • USD : ISM Manufacturing PMI (Jul) on 01st Aug, 2023
  • INR : Nikkei S&P Global Manufacturing PMI (Jul) on 01st Aug, 2023
  • INR : Nikkei Services PMI (Jul) on 03rd Aug, 2023

Brokerage Radar:

MS ON SBI CARDS: OW, TP Rs 1155; NIM flat QoQ, despite a sharp rise in cost of funds, as earning assets grew strongly; Credit costs high as guided by SBIC; While sensed concerns around asset quality on call, think EPS growth should inflect from F2Q

CLSA ON NTPC: Buy, TP Rs 240; 1Q demonstrate improved quality in operations & financials, with a massive 609bp rise in availability of its coal plants driving rec. PAT up 12% YoY. Expect NTPC to expand its regulated equity 22%, driving its ROE up 180bps over FY23-25CL

JEFFERIES ON PIRAMAL ENT: Downgrade to U-P, TP cut to Rs 920; PBT (ex one offs) well below due to lower NII. NII fell 26% QoQ; Fall in stress book, stabilizing provns & planned buyback are +ves, but seem priced; At 0.85x FY24E BV, risk reward seems -ve given

International Markets

U.S & Europe:

Particulars 31st July Chg. Chg.(%)
Nasdaq 14346.02 29.37 0.21
Dow 35559.53 100.24 0.28
FTSE 7699.41 5.14 0.07
CAC 7497.78 21.31 0.28
DAX 16446.83 -22.92 -0.14
Dow Fut.* 35568.30 8.80 0.02

Asian markets:

Particulars 01st August Chg. Chg.(%)
GIFT Nifty 19883.00 -3.00 -0.02
Nikkei 33418.53 246.31 0.74
Straits Times 3364.47 -9.51 -0.28
Hang Seng 20081.10 2.16 0.01
Shanghai 3287.22 -3.82 -0.12

ADR Watch:

Particulars   31st July  Chg.       Chg.(%)
Dr. Reddy 68.68 -0.13 -0.19
HDFC Bank 68.28 0.19 0.28
ICICI Bank 24.57 0..18 0.74
Infosys 16.66 0.20 1.22
Wipro 4.89 0.05 1.03

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 82.31 0.03
Brent 85.12 -0.36
Gold 1998.45 -0.54
Silver 24.788 -0.74

FIIs & DIIs:

Particulars 31st July 28th July
FIIs                          -701.17 -1023.91
DIIs 2488.07 1634.37

News Update:

Maruti Suzuki: The car maker approved terminating the contract manufacturing agreement with Suzuki Motor Gujarat Ltd. It exercised its option to acquire shares of Suzuki Motor Gujarat from Suzuki Motor Corporation.

South Indian Bank: The lender has agreed to raise funds via QIP, FPO, and other methods. It will raise Rs 1000 crore via QIP, FPO, Rights issues, and other methods. It has also agreed to raise an additional Rs 500 crore via debt.

State Bank of India: The lender has raised Rs 10,000 crore via an infrastructure bond issue at a coupon rate of 7.54%. The tenor of these bonds is 15 years. The proceeds of bonds will be utilised to enhance long-term resources for funding infrastructure and affordable housing.

EaseMyTrip: The company will buy 51% stakes in Guideline, Tripshope, and Dook in an all-stock deal. The consideration will be paid by issuing equity shares to the selling shareholders of the companies on a preferential basis.

Gas company stocks: These stocks are in focus after domestic natural gas prices were raised from Aug. 1, 2023, to Aug. 30, 2023. Domestic natural gas prices were raised to $7.85/mmBtu from $7.48/mmBtu. The price of gas from ONGC and OIL nomination fields will have a ceiling of $6.50/mmBtu on a gross calorific value basis.

InterGlobe Aviation: The DGCA gave approval to Air India and IndiGo to import aircraft.

Rail Vikas Nigam: The company has received a Letter of Award for Packages 16 and 17 from Madhya Pradesh Poorv Kshetra Vidyut Vitran Company. The project costs for Packages 16 and 17 are Rs 149.63 crore and Rs 182 crore, respectively. The order is scheduled to be executed within 24 months.

Oberoi Realty: The company has approved the merger of Oberoi Constructions Ltd., Oberoi Mall Ltd., and Evenstar Hotels Pvt. Ltd. with Oberoi Realty. Incline Realty Pvt. Ltd. will not be merged, as opposed to earlier, due to commercial reasons.

Source: Moneycontrol, Bloomberg Quint, Investing 

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