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

Asian markets dipped as Wall Street saw more turbulence as traders anticipated a possible escalation of the Middle East crisis and scrutinized Federal Reserve chairman Jerome Powell’s comments for hints on the direction of policy. Australia, South Korea, and Japan’s stocks also declined. Contracts for Hong Kong called for an open flat. The S&P 500 had its third straight drop on Thursday after a series of turns and turns, driven down by weak Tesla Inc. earnings. U.S. share futures trade declined in early Asian trading as the dollar moved higher. The yield on the 10-year U.S. bond was 4.98% at the time, while Bitcoin was trading above the 28,000 mark. While WTI Crude was trading above the $90 barrier, Brent crude was trading below the $93 mark.

Economic Calendar:

  • USD : Services PMI (Oct) on 24th Oct, 2023
  • USD : Building Permits on 25th Oct, 2023
  • INR : FX Reserves, USD on 20th Oct, 2023
  • INR : RBI MPC Meeting Minutes on 20th Oct, 2023

Brokerage Radar:

JEFFERIES ON KFIN TECH: Buy, TP raised to Rs 560; While Asian mkt will be organic, it may explore M&A in western mkt.; Domestic MFs & issuer solutions are growing at steady pace; Raise earnings by 1-2% & see 17% Cagr in profit over FY23-26; cashflows can aid M&A.

GS ON TCS: Buy, TP Rs 4020; Rev growth of -0.1% qoq (constant Fx; +2.8% YoY) below GSe of +1% qoq; 1% qoq decline in headcount suggests weak near term rev outlook; Lower rev est. by up to 1%, with FY24 rev growth of 3.8% (constant Fx; vs 5% earlier)

International Markets

 U.S & Europe:

Particulars 19th October Chg. Chg.(%)
Nasdaq 13186.17 -128.13 -0.96
Dow 33414.17 -250.91 -0.75
FTSE 7499.53 -88.47 -1.18
CAC 6921.37 -44.62 -0.64
DAX 15045.23 -49.68 -0.33
Dow Fut.* 33395.80 -18.37 -0.05

Asian markets:

Particulars 20th October Chg. Chg.(%)
GIFT Nifty 19529.50 -81.50 -0.42
Nikkei 31266.84 -163.78 -0.52
Straits Times 3096.91 -2.69 -0.09
Hang Seng 17261.67 -34.22 -0.20
Shanghai 3002.44 -2.95 -0.10

ADR Watch:

Particulars       19th October  Chg.       Chg.(%)
Dr. Reddy 67.21 -0.54 -0.80
HDFC Bank 57.25 -0.15 -0.26
ICICI Bank 22.37 0.00 0.00
Infosys 17.09 -0.05 -0.29
Wipro 4.67 -0.05 -1.06

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.16 0.03
Brent 93.33 1.03
Gold 1992.20 0.59
Silver 23.258 0.99

FIIs & DIIs:

Particulars   19th October     18th October
FIIs                          -1093.47 -1831.84
DIIs 736.15 1469.50

News Update:

Grasim Industries: The company received a Rs 141 crore demand notice from the Rajasthan Stamps Collector for non-payment of stamp duty on a scheme of arrangement between Indian Rayon and the company from FY1999.

Indoco Remedies: A U.S. FDA inspection at the company’s Solid Oral Formulation facility ended with four observations. The U.S. FDA conducted a pre-approval inspection at the Goa facility from Oct. 12 to 18.

Cyient: The company approved the merger of wholly-owned arms Citec Engineering and Cyient Insights. The board also approved an interim dividend of Rs 12 per share.

Natco Pharma: U.S. FDA inspection at Natco Pharma’s Hyderabad facility ended with eight observations. Inspections were conducted between Oct. 9 to 18.

Tata Steel: NCLT approves the merger of Tata Steel and Tata Steel Long Products. Tata Steel is also set to acquire a 26% stake in unit TP Vardhaman Surya for Rs 1.3 lakh.

RVNL: RVNL JV gets a Rs 174.27 crore contract from the Vadodara Division of Western Railway for civil engineering works in Gujarat. The project is to be executed in 24 months.

Gulf Oil: The company and S-Oil Seven inked a pact to expand business in India. In this partnership, Gulf Oil will oversee the production, distribution, and promotion of OEMs like the KIA India dealer network. Gulf also has the exclusive rights to manufacture and distribute the S-OIL SEVEN range throughout its network.

Gati: Registrar of Companies approves the name change of Gati to Allcargo Gati,

Tejas Networks: The company received an order worth Rs 107.73 crore from TCS to supply equipment for BSNL’s Pan-India 4G and 5G networks.

Tata Motors: The company signed a Securities Subscription Agreement for acquiring a 26.79% stake in Freight Tiger for Rs 150 crore. SSA includes provisions allowing the company to invest an additional Rs 100 crore over the next two years.

Elecon Engineering: The company got an order for supply and supervision of a pipe conveyor system from Arcelormittal Nippon Steel India worth Rs 51.41 crore.

Vakrangee: The company has partnered with Karnataka Bank Ltd. to provide BC Banking services from Vakrangee Kendra outlets across Pan India.

Piramal Enterprises: Company’s board will meet on Oct. 24 to consider and approve the issuance of non-convertible debentures on a private placement basis. CCL Products: NCLT has sanctioned the scheme of arrangement between Continental Coffee Pvt. (the demerged company) and CCL Products (India) (the resulting company).

Source: Moneycontrol, Bloomberg Quint, Investing 

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