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

Asian equity futures were mixed after the Federal Reserve hiked interest rates to a 22-year high and indicated that further tightening would be “data dependent.” In the U.S., stocks rebounded from session lows, with the Dow Jones Industrial Average notching its 13th straight advance — the longest winning run since 1987. Another driver of trading Wednesday was the large batch of earnings reports. Meanwhile, Brent crude was below $83 a barrel and West Texas Intermediate was around the $79-mark. The yield on the 10-year U.S. bond was trading at 3.87% and Bitcoin was below 30,000-level. At 5:38 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was unchanged at 19,990.

Economic Calendar:

  • USD : GDP (QoQ) (Q2) on 27th July, 2023
  • USD : Initial Jobless Claims on 27th July, 2023
  • INR : FX Reserves, USD on 28th July, 2023
  • INR : Infrastructure Output (YoY) (Jun) on 28th July, 2023

Brokerage Radar:

MS ON PNB: UW, TP Rs 55; PAT missed est – employee provisions stayed elevated & credit costs were higher than expected, but helped improve NPL coverage (76% vs. 71%). Impaired loans fell QoQ – a +ve; Continue to see better risk-reward at peer & prefer BOB & BOI

JEFFERIES ON BAJAJ FINANCE: Buy, TP raised to Rs 8830; 1Q profit rise of 32% YY strong & ahead of est. Delivering strong & broad-based AUM growth of 32%; Fall in NIM on expected lines; Some pressure on asset quality, led by rural mkts, lead to 10-15bps hike in credit cost guidance

JEFFERIES ON TECH MAHINDRA: U-P, TP cut to Rs 900; Revenues, down 4% QoQ, 440bps fall in EBIT margins & 39% QoQ decline in deal bookings disappointed.

Sharp 9% QoQ decline in CME vertical & single digit margins were key -ve surprises; Cut FY24-26 earnings est by 4-20%

International Markets

U.S & Europe:

Particulars 26th July Chg. Chg.(%)
Nasdaq 14127.28 -17.27 -0.12
Dow 35520.12 82.05 0.23
FTSE 7676.89 -14.91 -0.19
CAC 7315.07 -100.38 -1.37
DAX 16131.46 -80.13 -0.50
Dow Fut.* 35533.70 13.60 0.04

Asian markets:

Particulars 27th July Chg. Chg.(%)
GIFT Nifty 19856.00 50.00 0.25
Nikkei 32685.83 17.49 0.05
Straits Times 3325.08 20.12 0.61
Hang Seng 19590.22 225.08 1.16
Shanghai 3236.37 13.34 0.41

ADR Watch:

Particulars   26th July  Chg.       Chg.(%)
Dr. Reddy 68.05 2.14 3.25
HDFC Bank 70.81 0.31 0.44
ICICI Bank 24.66 0.22 0.90
Infosys 16.62 0.24 1.47
Wipro 4.91 0.00 0.00

Commodities & Currency

Particulars Current Price Chg.(%)
USD/INR 81.91 -0.18
Brent 83.37 0.98
Gold 1980.65 0.54
Silver 25.247 1.11

FIIs & DIIs:

Particulars 26th July 25th July
FIIs                          922.84 1088.76
DIIs 470.10 -333.70

News Update:

Aurobindo Pharma: The company has set up a step-down subsidiary, Auro Pharma LLC, in Russia to pursue pharma business operations there. The drugmaker has proposed making an initial investment of around $10 million. As many as 100% of the shares of Auro Pharma LLC are held by Auro Active Pharma Private Limited.

Mahindra and Mahindra: The company acquired a 3.53% stake in RBL Bank. The stake was valued at Rs 417 crore. Mahindra may consider further investment subject to pricing, regulatory approvals, and required procedures. The circumstance will the company’s stake in RBL Bank will exceed 9.9%.

Poonawala Fincorp: The company completed the sale of 24.9 crore equity shares held in Poonawalla Housing Finance, an entity affiliated with TPG Global. Poonawalla Fincorp has received a post-tax amount of Rs 3,004 crore for the stake sale.

Rail Vikas Nigam: The government will sell up to 5.36% of its stake in Rail Vikas Nigam via the offer for sale route. This includes the green shoe option of selling a 1.96% stake. The offer opens Thursday for non-retail investors. The floor price for the OFS will be Rs 119 per share.

Marico: The company has acquired a 32.75% stake in Satiya Nutraceuticals on a fully diluted basis and has majority control overboard. It will buy the remaining 25.25% stake in tranches by May 2025.

Reliance Industries: Jio Financial Services, and BlackRock have signed joint venture pacts to foray into the asset management sector. The 50:50 joint venture, Jio BlackRock, will deliver tech-enabled access to affordable investment solutions. Both parties will initially invest $150 million (Rs 1230.19 crore) each in the joint venture.

IDFC First Bank: The lender will discuss and consider a proposal to raise funds in the next one year by issuing equity shares or other equity-linked securities.

Source: Moneycontrol, Bloomberg Quint, Investing 

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