Market View 29th Aug, 2024

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

On Wednesday, markets in the United States sank ahead of Nvidia Corp.’s highly anticipated earnings the announcement, with the Nasdaq losing 1% as technology stocks dropped 2%. Investors are eagerly waiting to see if Nvidia can match the high expectations surrounding its AI technology, hailed as a huge opportunity. The Dow Jones Industrial Average declined 0.49%, while the S&P 500 and Nasdaq 100 also had declines of 0.52% and 1.14%, respectively. In the same period, gold fell 0.91% to $2,501.55 an ounce and Brent crude fell 0.38% to $79.25 a barrel. After four days of buying, foreign investors in India sold about Rs 1,347.5 crore worth of stocks, while domestic investors purchased about Rs 439.4 crore worth of stocks.

Economic Calendar:

• USD: Initial Jobless claim 29 August.
• IND: GDP Quarterly (YoY) Session on 30th August.

IPO Watch:

Brokerage Radar:

BERNSTEIN ON FINANCIALS:

We do not see India going through a 1101 sharp rate cut cycle, Do expect ~50 bps rate cut in the current cycle, with the real rate settling at 1%-1.5%, When the rate cut cycle commences, NBFCs (SBI Cards, BAF) with their higher share of fixed rate loans and also a higher share of borrowings within their liabilities mix face a tactical tailwind, Banks due to gradual repricing of deposits remain unfavorably placed.

GOLDMAN SACHS ON AUTOS:

August 2024 (3M rolled) indicates that 2Ws grew +9% YoY, while PVs remained flat YOYODO, CVs were down -2% YoY, while 3Ws grew +8% YoY, Rural and urban 2W demand increased by +11% and +7% YoY, respectively, The electric car sales ratio of 1.9% wasр down -50bps MoM in August, In 2Ws, Honda gained +170bps market share YoY, while Hero lost -110bps market share YoY in August.

BERNSTEIN ON RETAIL & RESTAURANTS:

Bernstein initiates on Retail & Restaurants, Demand beyond top-10% of pyramid and beyond top-40 cities can be unlocked, Demand unlocking offers a tremendous value creation opportunity, Prefer retail to restaurants.

International Markets:

U.S & Europe:

*As per 29^th August.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

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