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

Asian stocks witnessed a mixed open as U.S. shares slumped following a batch of poor corporate earnings. Australian, South Korean and Japanese shares fell in early trading while futures while equity futures in China and Hong Kong point to early gains a day after Beijing unveiled more measures to stimulate the economy. The Golden Dragon index, a gauge of Chinese shares in the U.S., slumped over 2%. Contracts for U.S. equities declined in Asian trading following Meta Inc.’s fall in after-market trading after reporting its earnings. The tech-heavy Nasdaq 100 index slid 2.5% on Wednesday, weighed by Google’s parent Alphabet Inc.’s disappointing cloud figures and Texas Instruments Inc.’s bearish forecasts. Meanwhile, the yield on the 10-year U.S. bond was trading at 4.95% and Bitcoin was above 34,000-level. Brent crude was trading above $90 a barrel, whereas WTI Crude was above $85-mark. At 5:31 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was down 7 points of 0.03% at 19,186. India’s benchmark stock indices declined for the fifth day on Wednesday, after the Dussehra holiday, as uncertainty stemming from the Israel-Hamas conflict continues to weigh on markets.

Economic Calendar:

  • USD : Fed Chair Powell Speaks on 26th October, 2023
  • USD : GDP (QoQ) (Q3) on 26th October, 2023
  • INR : FX Reserves, USD on 27th October, 2023
  • INR : Infrastructure Output (YoY) (Sep) , USD on 31st October, 2023

Brokerage Radar:

Tech Mahindra Review Macquarie: U-P, TP Rs 1010 Communication vertical declines sharply, margin misses Rev declining 2.4% QoQ & 5.9% YoY in constant currency (CC) terms EBIT margin, at 4.7%, was lower than 1Q’s 6.8% and 2Q FY23’s 11.4%.

Axis BK Review Jefferies: Buy, TP Rs 1250 Key +ve – core NIMs were down just 1bp QoQ to 4.1%, loan growth healthy at 5% QoQ & asset quality held-up. Opex growth of 34% was drag on profit & includes 1-time adj. for card rewards Still delivered on 18% ROE Vals @ 1.5x FY25 adj. PB.

efferies on Sona BLW: Buy, TP Rs 700 Delivered good 2Q with EBITDA & PAT up 35-39% YoY Co emphasized its expanding focus to address evolving trends in mobility, & added several components across differentials, motors & sensors Co secured new orders worth Rs6bn in 2Q

International Markets

 U.S & Europe:

Particulars 25th October Chg. Chg.(%)
Nasdaq 12821.22 -318.65 -2.43
Dow 33035.93 -105.45 -0.32
FTSE 7414.34 24.64 0.33
CAC 6915.07 21.42 0.31
DAX 14892.18 12.24 0.08
Dow Fut.* 32941.65 -94.28 -0.29

Asian markets:

Particulars 26th October Chg. Chg.(%)
GIFT Nifty 19016.00 -106.00 -0.55
Nikkei 30602.44 -667.48 -2.18
Straits Times 3059.28 -19.50 -0.63
Hang Seng 16962.52 -122.81 -0.72
Shanghai 2963.41 -10.70 -0.36

ADR Watch:

Particulars       25th October  Chg.       Chg.(%)
Dr. Reddy 66.11 -0.67 -1.00
HDFC Bank 57.30 0.24 0.42
ICICI Bank 22.04 -0.38 -1.69
Infosys 16.38 -0.40 -2.38
Wipro 4.54 -0.01 -0.22

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.18 0.11
Brent 89.93 -0.23
Gold 1994.45 -0.02
Silver 23.017 0.04

FIIs & DIIs:

Particulars   25th October     23rd October
FIIs                          -4,236.60 252.25
DIIs 3,569.36 1,111.84

News Update:

Tech Mahindra: The board approved the merger of three of the company’s wholly owned subsidiaries with itself. Perigord Premedia India, Perigord Data Solutions India, and Tech Mahindra Cerium will be incorporated under the rearrangement scheme.

Share India Securities: The board approved the proposal for the amalgamation of Silverleaf Capital Services as a going concern with the company.

SH Kelkar and Co: The company has invested 4.99 million euros in its Europe subsidiary, Keva Europe BV. The investment was made by subscribing to 1.39 million equity shares at 3.59 euros per share.

Samvardhana Motherson International: The company has initiated phased operational reconfiguration of a few of its European units. The operational reconfiguration entails a one-time cost of 25–30 million euros.

Karnataka Bank: The bank has entered into a partnership agreement with Vakrangee for providing business correspondent banking services through Vakrangee Kendra outlets on a pan-India basis.

Hero Motocorp: The company has made an investment of Rs 15 crore by way of a rights issue in its subsidiary company, HMC MM Auto. The company’s shareholding in its unit has increased from 60% to 66.32%.

Source: Moneycontrol, Bloomberg Quint, Investing 

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