Market View 22nd May, 2024

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

Most stocks in the Asia-Pacific region were trading lower despite their Wall Street peers rising to a record high on Tuesday, ahead of Nvidia Corp.’s quarterly results. The Nikkei 225 was trading 150 points or 0.39% lower at 38,798, while the S&P ASX 200 was 21.13 points or 0.27% up at 7,872 as of 06:17 a.m. Meanwhile, South Korea’s benchmark was down 0.10% in early trade. In the US, the S&P 500 rose to another record ahead of results from giant chipmaker Nvidia Corp. that traders see as a gauge for the sustainability of the bull market, Bloomberg reported. The S&P 500 Index rose 0.25%, and the Nasdaq Composite rose 0.22%, as of Monday. The Dow Jones Industrial Average was up by 0.17%.

Economic Calendar:

• USD : Existing Home Sales (Apr) on 22^nd May, 2024
• USD : Initial Jobless Claims on 23^rd May, 2024
• INR : Nikkei Services PMI on 23^rd May, 2024
• INR : FX Reserves, USD on 24^th May, 2024

Brokerage Radar:

JEFFERIES ON HINDALCO: Buy, TP raised to Rs 810; Novelis’ 4Q EBITDA rose 28% YoY(+13% QoQ) & inline; Vol grew 2% YoY while EBITDA/t rose 8% QoQ to $540, Raise FY25-26E EPS by 2-3%; Vals reasonable at 6.1x FY25E EV/EBITDA

CITI ON MARICO: Buy, TP raised to Rs 610; 4Q In-line; Pricing Action to Drive Growth Expect trajectory to improve in FY25E:

a)vol growth acceleration

b)pricing-led growth

NOMURA ON LUPIN: Buy, TP Rs 1949; 4Q: EBITDA 8% higher than est. Co expects stronger FY25 (vs FY24) driven by growth across key geographies & improvement in EBITDA margins; Think US product launches & a tight leash on costs could present upside potential to current earnings est.

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

TVS Motor: The company launched the TVS iQube electric scooter in Sri Lanka.

Suyog Telematics: The company signed a 15-year pact with BSNL for the rollout of sites across India.

Indoco Remedies: The company received final approval from the USFDA for an abbreviated new drug application for pregabalin capsules.

Biocon: The company’s arm, Biocon Biologics, announced that the USFDA has approved the company’s first-to-file application for Yesafili.

G R Infraprojects: The company emerged as the lowest bidder for the Pune Ring Road project worth Rs 1,997 crore and the Wardha Expressway road project worth Rs 2,350 crore.

Royal Orchid Hotels: The company to open a 5-star resort in Kevadia, Gujarat.

Reliance Industries: The company signed a license agreement with Nel Hydrogen Electrolyser in which the company will get an exclusive license for Nel’s alkaline electrolysers in India and allow RIL to manufacture Nel’s alkaline electrolysers for captive purposes globally.

United Spirits: The company’s Nanded unit received notice from the Water Resources Department to pay water charges of Rs 345.45 crore. The company has filed a petition in the Bombay High Court for the same.

HG Infra Engineering: The company emerged as the lowest bidder for two MSRDC projects worth Rs 4,142 crore.

PNC Infratech: The company emerged as the lowest bidder for two road projects worth Rs 4,994 crore from MSRDC.

Apollo Tyres: Warburg Pincus’s arm is likely to sell a 3.5% stake in Apollo Tyres for Rs 1,040 crore. White Iris Investment, a subsidiary of Warburg Pincus, will conduct the sale on May 22 through a block deal, aiming to raise Rs 1,040 crore.

Indian Emulsifiers: The trading in company’s equity shares will commence on the NSE Emerge with effect from May 22. The issue price has been fixed at Rs 132 per share. Its equity shares will be available for trading in the trade-for-trade surveillance segment.

Source: Moneycontrol, Bloomberg Quint, Investing 

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