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

Following overnight losses in tech stocks on Wall Street, the markets in Japan and Australia saw a dip in early trade on Wednesday. This came after Federal Reserve Chair Jerome Powell stated that it is doubtful that the central bank will begin lowering interest rates in March.  Following a two-day policy meeting, the Federal Market Open Committee maintained its benchmark rate at 5.25–5.50%, in line with market expectations, according to Bloomberg. Powell’s remarks, however, gave the impression that the decision-makers in the biggest economy in the world are not in a rush to loosen monetary policy anytime soon. Similar to Wednesday, the S&P 500 index and Nasdaq 100 had declines of 1.61% and 1.94%, respectively. The decline in the Dow Jones Industrial Average was 0.82%.

Economic Calendar:

  • USD : Manufacturing PMI (Jan) on 01st February, 2024
  • USD : Initial Jobless Claims on 01st February, 2024
  • INR : Indian Union Budget on 01st February, 2024
  • INR : FX Reserves, USD on 02nd February, 2024

Brokerage Radar:

MS ON BHARTI AIRTEL: EW, TP Rs 1015; Announces part prepayment of deferred liability for spectrum acquired in 2015 auctions; Believe this will be positive on an NPV basis over tenure of spectrum.; Assuming yield on cash of 6-7%, est. this prepayment could help earnings by 1% for F25

CITI ON AXIS BANK: Buy, TP Rs 1370; Deposit growth (at 4% QoQ) outpaced peers but was dominated by non-retail TDs (up 12% QoQ). Management signaled its focus on containing LDR & anchoring loan growth to deposit accretion. Amidst deposit challenges, tone down advances growth est.

CLSA ON REC: Buy, TP Rs 510; 3Q net profit of Rs33bn up 14% YoY driven by healthy growth in net interest income; Loan growth of 21% YoY strong; Expected negative credit cost in 3Q, but recoveries in one of resolved projects lower
36bp QoQ decline in GNPA is healthy

International Markets:

U.S & Europe:

Particulars 31st January Chg. Chg.(%)
Nasdaq 15187.45 -322.44 -2.08
Dow 38150.30 -317.01 -0.81
FTSE 7630.57 -35.74 -0.47
CAC 7656.75 -20.72 -0.27
DAX 16903.76 -68.58 -0.41
Dow Fut.* 38216.93 66.63 0.17

Asian markets:

Particulars 01st February Chg. Chg.(%)
GIFT Nifty 21822.00 24.50 0.11
Nikkei 36024.29 -262.42 -0.73
Straits Times 3144.13 -8.88 -0.28
Hang Seng 15675.91 190.84 1.23
Shanghai 2790.90 2.35 0.08

ADR Watch:

Particulars 31st January  Chg.       Chg.(%)
Dr. Reddy 72.08 2.68 3.87
HDFC Bank 55.50 -0.22 -0.39
ICICI Bank 24.41 0.04 0.16
Infosys 19.86 -0.09 -0.45
Wipro 5.67 0.02 0.27

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.05 -0.05
Brent 81.06 0.63
Gold 2064.50 -0.14
Silver 23.11 -0.26

FIIs & DIIs:

Particulars 31st January 30th January
FIIs                          1660.72 -1970.52
DIIs 2542.93 1002.70

News Update:

One 97 Communications: The Reserve Bank of India introduced further restrictions against Paytm Payments Bank. No further deposits or credit transactions are allowed in any customer account after Feb. 29. No other banking services, apart from withdrawal or utilisation of balances, are to be allowed after Feb. 29.

Infosys: The IT major signed a seven-year strategic collaboration with Musgrave to automate Musgrave’s IT operations by leveraging its industry-leading AI and cloud offerings.

UltraTech Cement: Moody’s Investors Service Inc. affirmed the company’s ‘Baa3’ issuer rating as well as its ‘Baa3’ senior unsecured rating, citing a solid balance sheet and substantially strong credit metrics.

Paras Defence and Space Technologies: The company received an optical periscope contract from the Ministry of Defense.

Deepak Nitrite: The company’s unit, Deepak Chem Tech, signed a Memorandum of Understanding worth Rs 9,000 crore with the Gujarat government.

Kaynes Technologies: Nanotech company Digi Lens announced a partnership with the company for scaling waveguide manufacturing.

Havells India: The company launched for the first time a ‘Made in India’ heat pump water heater to meet the demands of residential applications.

Federal-Mogul Goetze: The company appointed T. Kannan as managing director for three years, effective Feb. 1.

HG Infra Engineering: The company was declared an L-1 bidder for the Rs 440 crore South Central Railway project.

Gujarat Gas: The company signed a Memorandum of Understanding with HPCL for liquid fuels and CNG facilities.

Lux Industries: The company has completed its project of setting up a manufacturing and warehousing facility and commenced commercial operation at Jagadishpur, West Bengal, Kolkata.

Prestige Estates: The company completed the Rs 1,000 crore Hyderabad Residential Project.

Source: Moneycontrol, Bloomberg Quint, Investing 

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