Market View 1st March 2024

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

The Asia-Pacific markets were experiencing uneven trading as investors evaluated the U.S. Personal Consumption Expenditure data and awaited China’s official PMI number for February. As of 06:56 a.m., the S&P ASX 200 was up 1.50 points, or 0.02%, at 7,700.20, while the Nikkei 225 was up 487.46 points, or 1.24%, at 39,653.65.  The Federal Reserve’s favored inflation indicator, the U.S. PCE Data, increased in line with the expectation, providing markets with some relief that the Fed may lower rates this year. In the meantime, initial claims for unemployment benefits in the largest economy in the world increased to 215,000, above the consensus expectation of 210,000, according to Bloomberg. As of Thursday, the Nasdaq Composite and S&P 500 indexes had increased by 0.90% and 0.52%, respectively. The Dow Jones Industrial Average rose by 0.12%.

Economic Calendar:

• USD : Manufacturing PMI (Feb) on 01^st March, 2024
• USD : Services PMI (Feb) on 05^th March, 2024
• INR : FX Reserves, USD on 01^st March, 2024
• INR : Nikkei S&P Global Manufacturing PMI (Feb) on 01^st March, 2024

Brokerage Radar:

CITI ON GAIL: Buy, TP Rs 200; US Henry Hub prices have fallen sharply, from an avg of $2.7/mmbtu in 3Q to $1.5/mmbtu currently, while PE prices are trending largely flattish (+1%) qoq; Est this could bring down GAIL’s input gas cost in petchem segment by$0.5/mmbtu; Co’s gas trading differentials in 4QTD are trending broadly similar to 2QFY24, implying that trading EBITDA could also be broadly stable. Lastly, impact of APM gas allocation declining could be largely offset by sharp decline in spot LNG prices

CLSA ON HINDALCO: Upgrade to buy, TP Rs 635; Following a sharp correction, believe concern is overdone; Investor feedback: multiple concerns; Novelis IPO: value unlocking or building a war chest? Bear case analyses suggests further 10%-12% downside from current levels; Its existing businesses remain strong with gradual improvement in profitability. Clarity on the use of cash and growth projects are key to watch for.

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

One 97 Communication: The company has likely signed a deal to move its merchant accounts to Yes Bank, NDTV Profit reported exclusively.

Adani Enterprises: The company has divested its entire stake in Vizag Tech Park for Rs 151 crore to Adani Infrastructure and Developers.

Adani Group Stocks: The group reported a record Ebitda growth of 63.6% year-on-year in Q3 FY24, driven by its core infrastructure business.

Vedanta: The company incorporated Hindmetal Exploration Services by Hindustan Zinc, a subsidiary of the company, to explore, discover, develop and tap mineral resources.

Auto Stocks: Automakers will announce their February sales figures on Friday. Companies such as TVS Motor, Bajaj Auto, Tata Motors, Maruti Suzuki India and Hero MotoCorp will be in focus.

CG Power And Industrial Solutions: The company, in partnership with Renesas Electronics Corp., will make an investment of Rs 7,600 crore to set up a semiconductor unit in Gujarat.

ICICI Bank: The company acquired a further stake in ICICI Lombard worth Rs 431 crore. ICICI Lombard is now a subsidiary of the bank.

Suven Pharmaceuticals: The company will merge with Cohance Lifesciences. The shareholders of Cohance will receive 11 shares of the merged company for 295 shares of Cohance.

Biocon: The company arm signed a licence pact with Janssen Biotech and Johnson & Johnson to commercialise Bmab 1200 in the U.S. The USFDA conducted an inspection at the company’s unit between Feb. 20 and 28 and has Form 483s with four observations.

Star Cement: The company received a Letter of Intimation from Coal India on being successful bidders for the procurement of 3.12 lakh metric tonnes of coal per annum for a period of 10 years from the date of entering into fuel supply reements. This is in addition to the existing FSA for subsidiaries.

Source: Moneycontrol, Bloomberg Quint, Investing 

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