View on market: Volatility Prevails, Market is searching for better value
After U.S. equities surged and Treasury yields dropped as a result of weak economic data supporting the Federal Reserve’s decision to suspend interest rate hikes, shares in Asia were expected to rise. In line with a surge in American stocks, equity futures for Japan, Australia, and Hong Kong all increased on Thursday. The Nasdaq 100 increased 1.6%, while the S&P 500 closed 1.1% higher, its biggest day since June. Early Asian trade saw a compounding of these gains as futures contracts for the two benchmarks rose in response to positive earnings reports from Nvidia Corp. West Texas Intermediate was trading below the $79 mark while Brent crude was trading above that level. The yield on a 10-year US bond was 4.19%, and the price of Bitcoin fell below the 27,000 mark. At 5:33 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was up 58 points or 0.30% at 19,488.5.
Economic Calendar:
- USD : Core Durable Goods Orders (MoM) (Jul) on 24th Aug, 2023
- USD : Initial Jobless Claims on 24th 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
CLSA ON RIL: Buy, TP Rs 3050; QIA picks up 1% stake for US$1bn, valuing retail biz @ $100bn; Val almost doubled in 3 yrs; More investors, if this is a wider second round of stake sale, will validate this valuation & act as a soft floor for RIL stock
NOMURA ON SUN PHARMA: Buy, TP Rs 1313; Deuruxolitinib patent held invalid; no impact; Have est. peak sales in excess of $500n, & DCF value of asset at $400m (with sales touching $800m by FY37F when patent expires); Have yet to factor in any rev upside from deuruxolitinib in est.
International Markets
U.S & Europe:
Particulars | 23rd August | Chg. | Chg.(%) |
Nasdaq | 13721.03 | 215.16 | 1.59 |
Dow | 34472.98 | 184.15 | 0.54 |
FTSE | 7320.53 | 49.77 | 0.68 |
CAC | 7246.62 | 5.74 | 0.08 |
DAX | 15728.41 | 22.79 | 0.14 |
Dow Fut.* | 34523.18 | 50.20 | 0.15 |
Asian markets:
Particulars | 24th August | Chg. | Chg.(%) |
GIFT Nifty | 19523.50 | 19.00 | 0.10 |
Nikkei | 32146.33 | 136.07 | 0.42 |
Straits Times | 3178.53 | 4.35 | 0.14 |
Hang Seng | 18038.05 | 192.13 | 1.08 |
Shanghai | 3078.83 | 0.43 | 0.01 |
ADR Watch:
Particulars | 23rd August | Chg. | Chg.(%) |
Dr. Reddy | 72.77 | 1.30 | 1.82 |
HDFC Bank | 63.83 | 0.87 | 1.38 |
ICICI Bank | 23.58 | 0.68 | 2.97 |
Infosys | 17.27 | 0.28 | 1.65 |
Wipro | 5.09 | 0.10 | 2.00 |
Commodities & Currency:
Particulars | Current Price | Chg.(%) |
USD/INR | 82.53 | -0.03 |
Brent | 82.82 | -0.47 |
Gold | 1947.45 | -0.03 |
Silver | 24.310 | -0.34 |
FIIs & DIIs:
Particulars | 23rd August | 22nd August |
FIIs | 614.32 | -495.17 |
DIIs | 125.03 | 533.75 |
News Update:
Reliance Industries: Qatar Investment Authority to invest Rs 8,278 crore (0.99% stake) in Reliance Retail Ventures at a pre-money equity value of Rs 8.278 lakh crore via a wholly-owned subsidiary.
NHPC: The company signed an MoU with Andhra Pradesh Power Generation Corporation for renewable energy projects in the state. The MoU allows parties to form a JV to implement techno-commercially viable pumped storage hydropower projects and other renewable energy projects allotted by the state.
Procter & Gamble Health: For the quarter ended June (Q4FY23), the FMCG company reported a revenue of Rs 301.18 crore, up 1.78% year-on-year, while its net profit was down 27.6% at Rs 29.82 crore. The board recommended a dividend of Rs 50 per share for the financial year ended June 30, 2023.
SJS Enterprises: Promoter Evergraph Holdings sold 29.53% of its stake in the open market, reducing its stake to 4.63%.
Borosil: Its subsidary Klass Pack has executed a share purchase agreement to acquire an additional 4.56% in Goel Scientific for Rs 91.12 lakh. This follows KPL’s 90.17% acquisition of Goel Scientific, for which the acquisition price has been agreed at Rs 21.5 crore. KPL’s stake increases to 94.73%.
PNB Housing Finance: ICRA revised the rating outlook on NCDs and Tier II bonds to positive from stable.
Redtape: Promoter Yasmin Mirza has acquired by way of gift 15.96% from Shahid Ahmad Mirza, 16.03% from Tauseef Ahmad Mirza, and 14.11% from Tasneef Ahmad Mirza. Yasmin’s stake increased to 50.27% from 4.18%, while the other three promoters’ stakes were reduced to nil.
Vascon Engineers: The company received an order worth Rs 605.65 crore from Bihar Medical Services and Infrastructure Corporation for the construction of Lohia Medical College and Hospital, including a hospital and residential building in Supau.
Source: Moneycontrol, Bloomberg Quint, Investing
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