Market View 25th July 2023

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

China is set to lead Asian stocks higher on optimism of more economic stimulus to come from Beijing, while Wall Street markets started the week with gains ahead of key central bank rate decisions. Future contracts for Hong Kong stocks rallied almost 3%, while those in Japan and Australia also pointed to solid rises in early Tuesday trading. The Dow Jones Industrial Average rose for an 11th straight day — its longest winning run since 2017. The S&P 500 traded near 4,550, while the Nasdaq 100 underperformed after a “special rebalance” that took effect Monday. Meanwhile, Brent crude was above $82 a barrel and West Texas Intermediate was around the $78-mark. At 5:39 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was unchanged at 19,981.

Economic Calendar:

• USD : Building Permits on 26th July, 2023
• USD : Fed Interest Rate Decision on 26th July, 2023
• INR : FX Reserves, USD on 28th July, 2023
• INR : Infrastructure Output (YoY) (Jun) on 28th July, 2023

Brokerage Radar:

EMS ON SRF: OW, TP Rs 2968; It also highlighted near-term risks to specialty chemicals earnings amid the ongoing inventory destocking seen globally; Believe these challenges pose 18-20% downside to earnings est.

EUBS ON TVS MOTORS: Buy, TP raised to Rs 1570; In-line results, strong commentary

EDelivers margins expansion despite elevated cost; Exports to keep improving in FY24; Major inv for FY24 done in Q1; Co while assuring investments will remain below Rs10bn (1Q at Rs6.2bn

ENOMURA ON ITC: Buy, TP Rs 485; Demerger of Hotels biz announced; Key +ves; Value unlocking with creation of pure play Hotels entity; Will improve its B/S,capital allocation & RoCE profile; Surplus cash & higher dividend payout profile with no capex of Hotels

International Markets

U.S & Europe:

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

EReliance Industries: The company will invest Rs 378 crore in Mercury Holdings, a 50:50 joint venture between Brookfield Infrastructure and Digital Realty. It also committed to further invest up to Rs 622 crore via equity and debt.

EMaruti Suzuki: The carmaker has recalled 87,599 S-Presso and Eeco models manufactured between July 5, 2021, and Feb. 15, 2023. The recall is over a possible defect in a part of the steering tie rod that may break and affect vehicle steerability and handling.

EVedanta: The company’s application under the government’s Modified Semi-Scheme for fab manufacturing is under consideration for approval. The company will also apply for display manufacturing under the Modified Display Scheme.

EFederal Bank: The lender has approved allocating 23 crore shares at Rs 131.9 apiece to eligible, qualified institutional buyers.

ESJVN: The company has bagged five hydropower projects totalling 5097 MW in Arunachal Pradesh’s Dibang Basin. The investment will be worth Rs 50,000 crore.

ETata Steel: The company approved re-appointing T. V. Narendran as the chief executive officer and managing director of the company for a further period of five years from Sept. 19, 2023, till Sept. 18, 2028.

EAstraZeneca Pharma India: The Drugs Controller General of India has granted permission to the company to import pharmaceutical formulations of a new drug for sale or distribution in Form CT-20, which is a marketing authorisation, for Dapagliflozin tablets of dosage 10 mg. Dapagliflozin Tablets are used to treat heart failure in adults.

EWipro: Wipro FullStride Cloud has partnered with data storage solutions company Pure Storage to incorporate sustainable technology practices into clients’ technology infrastructure.

Source: Moneycontrol, Bloomberg Quint, Investing 

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