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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:
Company | Open | Close | Price | View |
Baazar Style Retail Ltd | 30 Aug | 3 Sept | 370-389 | Under review |
Premier Energies | 27 Aug | 29 Aug | 427-450 | Apply |
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:
Particulars | 28th August | Chg. | Chg.(%) |
Nasdaq | 17,556.03 | -198.79 | -1.12 |
Dow | 41091.42 | -159.08 | -0.39 |
FTSE | 8,343.85 | -1.61 | -0.02 |
CAC | 7,577.67 | 11.89 | 0.16 |
DAX | 18,782.29 | 100.48 | 0.53 |
Dow Fut.* | 41231 | 53 | 0.13 |
*As per 29th August.
Asian markets:
Particulars | 29th August | Chg. | Chg.(%) |
GIFT Nifty | 25004.50 | -50.50 | -0.20 |
Nikkei | 38,220.34 | -151.42 | -0.39 |
Straits Times | 3,394.21 | 3.18 | 0.09 |
Hang Seng | 17,547.56 | -144.89 | -0.82 |
Shanghai | 2,816.19 | -21.24 | -0.75 |
Stocks strong on Chart:
Index | F&O | Cash |
BHARTI AIR | ABB | NCC |
SUN PHARM | CAN FIN | HBL POWER |
BAJAJ AUTO | IEX | K FINTECH |
CIPLA | TATA POWER | TANLA |
INFY | INDUS TOW | KEC |
BLUE STAR |
Commodities & Currency:
Particulars | Current Price | Chg.(%) |
USD/INR | 83.920 | -0.05 |
Brent | 77.77 | 0.24 |
Gold | 71,732.00 | -0.02 |
Silver | 83,925.00 | -0.06 |
FIIs & DIIs:
Particulars | 28th August | 27th August |
FIIs | -1,347.53 | 1,503.76 |
DIIs | 439.35 | -604.08 |
News Update:
Company
One97 communication: | The company received a nod from the Finance Ministry for downstream investment into Paytm Payment Services. Paytm Payment Services will resubmit the payment aggregator license and will continue to provide online payment aggregation services to existing partners. |
Genus Power Infrastructure: | The company’s arm received letters of award for three orders worth Rs 4,469 crore for the appointment of advanced metering infrastructure service providers. The company’s total order book stood at Rs 32,500 crore. |
Tata Steel: | The company acquired 178 crore shares for Rs 2,348 crore in Tata Steel Holdings. Tata Steel Holdings will continue to be an arm of the company post-acquisition. |
Reliance Industries: | CCI approved the Reliance-Disney merger subject to compliance with voluntary modifications. |
Sonata Software: | The company received a multi-year, multi-million-dollar IT outsourcing contract from a US-based healthcare and wellness company. |
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