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

Asian markets are poised for a cautious open as U.S. stock futures slipped in early Asia trading after earnings from companies including Netflix Inc. and Tesla Inc. Equity futures for Japan fell, while contracts for Australia were little changed. A reprieve from a two-day slide in Hong Kong may be in store, with equity futures pointing to a small gain. In official trading Wednesday, the S&P 500 rose for a third day. The tech-heavy Nasdaq 100 ended marginally lower and the blue-chip Dow Jones Industrial Average extended its winning streak into an eighth day, the longest rally since September 2019. Meanwhile, Brent crude was below $80 a barrel and West Texas Intermediate was around the $75-mark. The yield on the 10-year U.S. bond was trading at 3.75%, whereas Bitcoin was below 30,000-level. At 5:32 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 0.15% or 31 points at 19,983.

Economic Calendar:

  • USD : Initial Jobless Claims on 20th July, 2023
  • USD : Existing Home Sales (Jun) on 20th July, 2023
  • INR : FX Reserves, USD on 21st July, 2023
  • INR : Infrastructure Output (YoY) (Jun) on 31st July, 2023

Brokerage Radar:

MS ON CAN FIN HOMES: EW, TP Rs 640; PAT beat est by 9% led by higher NIM & lower operating costs; Calculated NIM expanded 17bp QoQ to 3.6%; GNPA was stable YoY while provision coverage fell both YoY and QoQ. Loans rose 18% YoY/3% QoQ during qtr.

JPM ON KPIT TECH: UW. TP Rs 540; Honda, one of co’s large clients, a couple of weeks back announced a partnership with SCSK (Japan IT co) on software development. Channel checks had indicated KPIT was exclusive partner, but this deal indicates Honda is diversifying vendor base.

International Markets

U.S & Europe:

Particulars 19th July Chg. Chg.(%)
Nasdaq 14358.02 4.38 0.03
Dow 35061.21 109.28 0.31
FTSE 7588.20 134.51 1.77
CAC 7326.94 7.76 0.11
DAX 16108.93 -16.56 -0.10
Dow Fut.* 35054.20 -7.00 -0.02

Asian markets:

Particulars 20th July Chg. Chg.(%)
GIFT Nifty 19828.50 -12.50 -0.06
Nikkei 32521.88 -374.15 -1.15
Straits Times 3269.10 -6.14 -0.19
Hang Seng 18942.89 -9.42 -0.05
Shanghai 3193.94 -4.90 -0.15

ADR Watch:

Particulars   19th July  Chg.       Chg.(%)
Dr. Reddy 63.32 0.31 0.49
HDFC Bank 70.54 -0.17 -0.24
ICICI Bank 24.04 0.18 0.75
Infosys 17.71 -0.17 -0.95
Wipro 5.11 0.02 0.39

Commodities & Currency

Particulars Current Price Chg.(%)
USD/INR 82.02 -0.07
Brent 79.53 0.09
Gold 1988.85 0.43
Silver 25.438 0.20

FIIs & DIIs:

Particulars 19th July 18th July
FIIs                          1165.47 504.66
DIIs -2134.54 195.80

News Update:

Dr. Reddy’s Laboratories: The drug maker received zero observations and no action from the USFDA at its API manufacturing facility in Srikakulam. The inspection was conducted from July 10 to July 19.

Sun Pharmaceutical Industries: Krensavage Asset Management opposed Sun Pharmaceutical’s bid to take Taro private on account of its low offer value. Shareholders could receive $45 per share on liquidation, compared with Sun Pharmaceutical’s offer of $38 apiece, it said. Krensavage Asset Management is the largest minority shareholder of Taro Pharmaceutical Industries.

Olectra Greentech: The company has awarded a Rs 395.12 crore contract to Megha Engineering & Infrastructure to construct a greenfield electric vehicle manufacturing facility at Seetharampur, Hyderabad.

Shree Cement: The company received an inspection notice from the Ministry of Corporate Affairs. The company said it would comply with the directions.

TTK Prestige: The company resumed manufacturing operations at the Roorkee plant after flooding on July 18. It estimated a loss of movables of about Rs 40 lakh. The entire area is under red alert for the next two days.

LIC: Sat Pal Bhanoo, additional zonal manager at the Zonal Office, LIC of India, Bhopal, has been appointed as Managing Director of LIC India.

Reliance Industries: Reliance Strategic Investments has appointed Isha Ambani and Anshuman Thakur as non-executive directors. It also appointed Hitesh Kumar Sethia as managing director and chief executive officer for three years.

Transformers and Rectifiers: Gujarat Energy Transmission Corporation has decided to stop dealing with Transformers and Rectifiers for a period of three years. The ‘Stop Deal’ notice is on the ground that the company had allegedly submitted a forged Material Dispatch Clearance Certificate for certain transformers supplied. The company has conducted inspection tests and is taking steps to defend its position against this allegation.

PNC Infratech: Signed a concession agreement with the National Highways Authority of India for three Hybrid Annuity Mode projects worth Rs 3,264.43 crore.

Avenue Supermarkets: The company has opened a new store in Akola, Maharashtra, taking the total number of stores to 330.

Source: Moneycontrol, Bloomberg Quint, Investing      

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