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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