Market View 26th July, 2024

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

Markets in Asia-Pacific region rose as better than expected US GDP data affirmed investors’ expectation of a rate cut from the US Federal Reserve in September. Wall Street traders, confident in the Fed’s ability to orchestrate a smooth economic adjustment, fueled a rally in higher-risk sectors of the market. This comes after a widespread market downturn that shook global markets in the previous session. Shares of economically sensitive sectors, including financial and industrial companies, led the charge on Thursday. Smaller firms continued their strong performance this month, surging nearly 10%, significantly outpacing the gains of tech giants. The Indian benchmark equity indices ended little changed on Thursday as shares of Tata Motors Ltd. and HDFC Bank Ltd helped them erase losses after a lower open.

Economic Calendar:

• USD : PCE price index on 26 July
• IND: Fx reserves USD announcement on 26 July
• FOMC meeting on 31^st July

Brokerage Radar:

Morgan Stanley on Cyient:

Downgrades to Underweight from Overweight; cuts target price to Rs 1,550 from Rs 2,250.Expect risk to the revised revenue guidance given high ask rate and weak track record. Expect stock to inch closer to last five-year average P/E.EPS CAGR for F24-26 at 1.6%

UBS on Tata Power:

Initiates Buy with target price of Rs 510.Sector opportunities’ robust expansion on climate and shortages. Valuations reasonable given the size of overall opportunities in the renewables space and its leadership position.

Macquarie on Ashok Leyland:

Maintains Neutral with target price of Rs 220.Q1FY25: In-line quarter; Margins improve YoΥ. Continues to outperform peers on growth with 7% YoY MHCV volume growth. Going ahead, competitive intensity and ability to retain / grow market share is key.

International Markets:

U.S & Europe:

*As per26^th July.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

Source: Moneycontrol, Bloomberg Quint, Investing 

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