Market View 28th May, 2024

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

Benchmarks in Asia-Pacific markets were trading slightly lower as investors exercised caution before release of a slew of economic data from the region. The Nikkei 225 was 41.39 points or 0.11% lower at 38,858.63, and the S&P ASX 200 was 0.90 points or 0.01% down at 7,787.40 as of 06:36 a.m. inflation data from Japan, Australia, and euro region are scheduled to be released later this week. Financial markets in the US were closed on Monday for Memorial Day. Brent crude oil contract for delivery in July was trading 0.04% lower at $83.06 per barrel as of 06:40 a.m. Gold was trading 0.01% lower at $2,350.76.

Economic Calendar:

• USD : CB Consumer Confidence (May) on 28^th May, 2024
• USD : GDP (QoQ) (Q1) on 30^th May, 2024
• INR : FX Reserves, USD on 31^st May, 2024
• INR : RBI Monetary and Credit Information Review on 31^st May, 2024

Brokerage Radar:

JEFFERIES ON HINDALCO: Buy, TP raised to Rs 810; Novelis’ 4Q EBITDA rose 28% YoY(+13% QoQ) & inline; Vol grew 2% YoY while EBITDA/t rose 8% QoQ to $540, Raise FY25-26E EPS by 2-3%; Vals reasonable at 6.1x FY25E EV/EBITDA

CITI ON MARICO: Buy, TP raised to Rs 610; 4Q In-line; Pricing Action to Drive Growth Expect trajectory to improve in FY25E:

a)vol growth acceleration

b)pricing-led growth

NOMURA ON LUPIN: Buy, TP Rs 1949; 4Q: EBITDA 8% higher than est. Co expects stronger FY25 (vs FY24) driven by growth across key geographies & improvement in EBITDA margins; Think US product launches & a tight leash on costs could present upside potential to current earnings est.

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

HPCL: The board recommended a bonus issue of 1 share for every 2 shares held.

Asian Paints: The Singapore-based arm signed a pact to acquire a 24.3% stake in SCIB for Rs 34.42 crore. Arm APIPL to hold an 85.6% stake in SCIB post-stake acquisition.

Jyoti Structures: The company rights have been subscribed by 207%, with the company receiving applications worth Rs. 361.66 crores pursuant to its rights issue as against an issue size of Rs. 174.63 crores.

Adani Energy Solutions: The board approved a fund-raising plan for an aggregate amount not exceeding Rs 12,500 crore through QIP or another permissible mode.

Praveg: The company bought a 51% stake in Abhik Advertising and Bidhan Advertising.

Diamond Power Infrastructure: Founder Monarch Infraparks and GSEC will sell a 2.44% stake each in the company via OFS on May 28 and 29. The company has set the OFS floor price at Rs. 855 per share.

ZF Commercial Vehicle Control Systems India: The company has partnered with IIT Madras to forge a pioneering partnership to build global mobility digital infrastructure.

Concord Biotech: Shareholder Ontario Inc plans to sell 3.4% of shares worth Rs 468.40 crore in Concord Biotech, as reported by CNBC-TV18 sources. The share sale could have a floor price of Rs 1,320 per share. After the transaction, Ontario Inc will have a residual stake of 2% in the company, with a 90-day lock-in period before any sale of this residual stake.

Timken India: Parent entity Timken Singapore is looking to sell a 6.6% stake worth Rs 1,775 crore in Timken India, according to CNBC-TV18 sources. The share sale is expected to have a floor price of Rs 3,550 per share, which represents a 10.2% discount to Monday’s closing price.

TARC: The company announced board approval for the re-appointment of Anil Sarin as Chairman, effective from May 28.

ICICI Bank: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on ICICI Bank for non-compliance with RBI directions on Loans and Advances – Statutory and Other Restrictions.

Source: Moneycontrol, Bloomberg Quint, Investing 

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