Market View 27th Aug, 2024

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

US stock traders, buoyed by the anticipated Federal Reserve rate cuts, pushed down tech megacaps just days before Nvidia Corp.’s earnings report. Most S&P 500 shares saw gains as Wall Street continued its trend of shifting funds away from big tech stocks. On Monday, the S&P 500 hovered near 5,600 and fell 0.19% and the Nasdaq 100 dropped 0.82%.The NSE Nifty 50 logged its longest stretch of gaining streak in more than a year to end above the psychologically crucial 25,000 mark on Monday after 16 sessions and the S&P BSE Sensex extended its gains for the fifth consecutive session. The rally came after dovish commentary by US Fed Chair Jerome Powell at the Jackson Hole symposium, which confirmed a September rate cut in the US.

Economic Calendar:

• USD: CB Consumer Confidence 27 August
• IND: GDP Quarterly (YoY) Session on 30th August.

IPO Watch:

Brokerage Radar:

BofA on Indus Towers:

Maintain Buy with target price of Rs 490.Room for multiple re-rating & potential dividend. Business fundamentals strong. Key events to- new contract by VIL, past dues recovery and market share in new businesses.

JPMorgan on ONGC:

Maintain Neutral; Hike target price to Rs 306 from Rs 280.Stock upside is more specific (pricing) than structural (volumes).FCF based valuations could still have upside if these came through. Virtually no development pipeline beyond KG 98/2 to support production medium term. Even the near term volume guidance appears at risk.

JPMORGAN ON IRON ORE:

NMDC remains least preferred stock. Believe FY24 total exports at 48MT could be a peak and exports as % of production could start declining over the coming years. Believe this should happen due to softness in iron ore prices and strong Indian steel consumption and potential implementation of iron ore beneficiation policy by the govt. Potential supply demand mismatch may further tighten the seaborne market.

International Markets:

U.S & Europe:

*As per 27^th August.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

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