Market View 1st September 2023

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

After a quiet session on Wall Street, stocks in Asia were neutral as investors awaited Friday’s jobs report to determine the direction of Federal Reserve policy. Australia’s shares fell, while Japan’s shares increased little. According to earlier data, Japanese companies reduced their expenditure for the first time in five quarters, which may cause the second-quarter economic growth figures to be revised downward. West Texas Intermediate and Brent crude were both trading above the $83 per barrel barrier at the time. The yield on a 10-year US bond was 4.11%, and the price of Bitcoin fell below the 26,000 mark. The GIFT Nifty, a leading indication of the performance of the Nifty 50 Index in India, was at 19,424 at 7:00 a.m., down 15 points or 0.08%.

Economic Calendar:

• USD : Average Hourly Earnings (MoM) (Aug) on 01^st Sep, 2023
• USD : Unemployment Rate (Aug) on 01^st Sep, 2023
• INR : Nikkei S&P Global Manufacturing PMI (Aug) on 01^st Sep, 2023
• INR : FX Reserves, USD on 01^st Sep, 2023

Brokerage Radar:

JPM ON EICHER MOTORS: Neutral, TP Rs 3050; RE launching a refresh of Bullet model (17% of vol); Bullet an important product for RE in <Rs200K price point & important against backdrop of a) growth stagnation for Classic + Meteor b) Rising competitive intensity in  >Rs200K category

JEFFERIES ON REAL ESTATE: Residential property markets have continued to see double-digit vol & pricing gains, well into 2Q, as indicated by consultant & registration & rising launch activity ahead of festive season; Godrej Prop, Macrotech & DLF preferred picks

CLSA ON FOOD DELIVERY: Growth concerns should ease; MTUs expected to rise by 2.1x by FY30; tailwinds in place for 2HFY24; Profitability firmly established; ONDC volumes fell after withdrawal of discounts; CWC’23 to boost demand

International Markets

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Reliance Industries: The company’s media unit Viacom 18 bagged both TV and digital rights of the Indian cricket team’s home series for the next five years with a cumulative bid of approximately Rs 6,000 crore, beating Star India and Sony in a three-way battle. The rights will come into effect with India’s three-match home series against Australia beginning Sept. 22 and ending March 31, 2028.

Jio Financial Services: The scrip will be removed from S&P BSE indices before trading starts on Sept. 1.

Sula Vineyards: Verlinvest Asia Pte sold a 12.6% stake in Sula Vineyards Ltd. for Rs 513.17 crore on Thursday. HDFC Mutual Fund, through its three funds, bought a combined 35.2 lakh shares, or a 4.2% stake. Other buyers include Morgan Stanley Asia (1.6%), Societe Generale (0.8%), and Ghisallo Master Fund (0.6%).

Punjab National Bank: The bank has raised lending rates by 5 bps across tenures, effective Sept. 1.

Punjab National Bank: The bank has raised lending rates by 5 bps across tenures, effective Sept. 1.

LIC: Mini Ipe has ceased to be the MD, and Gajraj Singh Gill has ceased to be the Executive Director (Senior Business Associate) with effect from Aug. 31 upon superannuation.

CONCOR: Sanjay Swarup to be appointed as Chairman and Managing Director with effect from Oct. 1.

Nykaa: Co. invested Rs 3.97 crore in its international arm, FSN International, by acquiring 39.78 lakh shares of Rs 10 each on a rights basis for providing long-term funds.

Aditya Birla Fashion and Retail: The company said that it has completed the acquisition of a 29% stake in TCNS Clothing pursuant to the open offer. It also plans to raise Rs 750 crore on or after Sept. 4 through bonds on a private placement basis. Auto Stocks: To be in focus as auto makers announce the wholesale figures for the month of August.

Genus Power Infrastructure: The company’s step-down wholly owned subsidiary has bagged a Rs 2,247.37 crore order for 24.18 lakh smart metres, including their design, supply, installation, and commissioning. The total order book now stands at around Rs 11,000 crore.

 Source: Moneycontrol, Bloomberg Quint, Investing 

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