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

A cautious opening was predicted by Asian equities futures. Prior to turning their attention later in the week to a meeting of central bankers from around the world in Jackson Hole, Wyoming, investors will be focused on Chinese interest rates and Beijing’s efforts to support the faltering economy on Monday. Contracts for the benchmark shares in Australia and Hong Kong decreased, while those for Japan slightly increased. U.S. equities made some progress in the closing minutes of Friday’s trading session, perhaps as a result of large options expiry. However, it was unable to stop the Nasdaq 100 from edging lower and the S&P 500 from finishing flat. The benchmark for global equities maintained by MSCI Inc. suffered its largest weekly loss since Silicon Valley Bank’s collapse in March. Meanwhile, Brent crude was trading below $85 a barrel and West Texas Intermediate was above the $81-mark. The yield on the 10-year U.S. bond was trading at 4.25% and Bitcoin was below 27,000-level. At 5:19 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was down onw point or 0.01% at 19,452.

Economic Calendar:

  • USD : Existing Home Sales (Jul) on 22nd Aug, 2023
  • USD : Services PMI (Aug) on 23rd Aug, 2023
  • INR : RBI MPC Meeting Minutes on 24th Aug, 2023
  • INR : GDP Quarterly (YoY) (Q1) on 31st Aug, 2023

Brokerage Radar:

JEFFERIES ON GRAPHITES ELECTRODES: HEG – Buy, TP Rs 2170; Graphite – Buy, TP Rs 515; HEG/GRIL are export-oriented plays (70%/50% of sales), benefiting from rising adoption of EAF. HEG’s Q1 beat JEFe, but GRIL missed due to impact of inventory write-down on EBITDA

GS ON NTPC: Buy, TP Rs 275; During month, country witnessed a peak shortage of 9GW, worst since FY14; See this development as a reinforcement of thesis that India has already entered a phase of peak power shortages; Foresee revival in thermal capex as legacy coal biz re-rates

CLSA ON RIL (JIO FIN): Other than stake in RIL, liquids worth Rs207bn ($2.5bn, Rs33/sh) have been demerged into JFS; Looking at peer NBFCs, can support loan bk of $13-15bn; JFS will take nearly 3 yrs to fully use up this amount This takes away need to liquidate its stake in RIL

International Markets

U.S & Europe:

Particulars 18th August Chg. Chg.(%)
Nasdaq 13290.78 -26.16 -0.20
Dow 34500.66 25.83 0.07
FTSE 7262.43 -47.78 -0.66
CAC 7164.11 -27.63 -0.39
DAX 15574.26 -102.64 -0.66
Dow Fut.* 34530.00 29.30 0.09

Asian markets:

Particulars 21st August Chg. Chg.(%)
GIFT Nifty 19317.50 -12.00 -0.06
Nikkei 31748.88 298.12 0.94
Straits Times 3158.89 -15.04 -0.47
Hang Seng 17806.09 -144.76 -0.81
Shanghai 3124.16 -7.79 -0.25

ADR Watch:

Particulars     18th August  Chg.       Chg.(%)
Dr. Reddy 71.40 -0.04 -0.06
HDFC Bank 62.85 -0.39 -0.62
ICICI Bank 22.90 0.03 0.13
Infosys 16.72 -0.25 -1.47
Wipro 4.94 -0.04 -0.80

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.18 0.03
Brent 85.58 0.92
Gold 1920.90 0.23
Silver 22.883 0.66

FIIs & DIIs:

Particulars   18th August 17th August
FIIs                          -266.98 -1510.86
DIIs 339.18 -313.97

News Update:

KEC International: The company secured new orders of Rs 1,007 crore across various businesses. The deals include construction of a multispeciality hospital in India, 380 kV overhead transmission line in the Middle East and supply of cables in India and overseas.

Ashok Leyland: The company would be issuing a corporate guarantee of GBP 82.10 million or Rs 870 crore to cover the lender facilities of U.K. two subsidiaries— Optare and Switch Mobility.

United Spirits: The company signed an extra-neutral alcohol manufacturing contract with Capovitez for a tenure of three years. It covers provisions such as purchase of grain and sale of ENA, delivery, storage, quality in service, material’s price and payment, confidentiality, etc.

Tanla Platforms: Co.’s pact with Vodafone Idea for provision of platform and firewall services will not continue beyond the term limit. This would have a revenue impact of Rs 17 crore and PAT impact of Rs 9 crore on a full-quarter basis post November 2023.

Spandana Sphoorty Financial: Rating agency ICRA has upgraded the ratings and revised the outlook for various instruments. Long-term fund based for Rs 2,105 crore has been upgraded to [ICRA] A from [ICRA]A-, outlook to stable from positive.

Jio Financial Services: Jio Financial Services (formerly, Reliance Strategic Investments), a demerged entity of billionaire Mukesh Ambani-led Reliance Industries, will be listed on the exchanges on August 21. The exchanges in their circular said the scrip would be in Trade-for-Trade segment for 10 trading days. Meanwhile, Jio Financial Services will continue to remain in the FTSE Indices, and will be added to the MSCI Global Standard Index on August 23. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary).

Source: Moneycontrol, Bloomberg Quint, Investing 

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