Market View 2nd March 2024

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

Global stock markets will be closed on Saturday, but the Indian market will be open due to a special trading session held by the national bourses that would facilitate a seamless transition to a catastrophe recovery site. Global stock markets will be closed on Saturday, but the Indian market will be open due to a special trading session held by the national bourses that would facilitate a seamless transition to a catastrophe recovery site. Friday’s gains in US markets followed a solid close for their counterparts in Europe and Asia. The S&P ASX 200 concluded 0.61% higher at 7,745.61, while the Nikki 225 finished 1.9% higher at 39,910.82. The S&P 500 broke 5,100 to mark its 15th record of the year as U.S. stocks concluded the week strongly amid a fresh upswing in technology companies. The Nasdaq 100 and S&P 500 indexes increased by 1.14% and 0.80%, respectively, on Friday.

Economic Calendar:

• USD : Services PMI (Feb) on 05^th March, 2024
• USD : JOLTs Job Openings (Jan) on 06^th March, 2024
• INR : Nikkei Services PMI (Feb) on 05^th March, 2024
• INR :     FX Reserves, USD on 08^th March, 2024

Brokerage Radar:

CITI ON GAIL: Buy, TP Rs 200; US Henry Hub prices have fallen sharply, from an avg of $2.7/mmbtu in 3Q to $1.5/mmbtu currently, while PE prices are trending largely flattish (+1%) qoq; Est this could bring down GAIL’s input gas cost in petchem segment by$0.5/mmbtu; Co’s gas trading differentials in 4QTD are trending broadly similar to 2QFY24, implying that trading EBITDA could also be broadly stable. Lastly, impact of APM gas allocation declining could be largely offset by sharp decline in spot LNG prices

CLSA ON HINDALCO: Upgrade to buy, TP Rs 635; Following a sharp correction, believe concern is overdone; Investor feedback: multiple concerns; Novelis IPO: value unlocking or building a war chest? Bear case analyses suggests further 10%-12% downside from current levels; Its existing businesses remain strong with gradual improvement in profitability. Clarity on the use of cash and growth projects are key to watch for.

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Zee Entertainment Enterprise: A Delhi court has ordered Bloomberg to take down an article that alleged corporate governance issues at the company and reported that the market regulator has found a $241 million accounting issue at the company.

One 97 Communications: The Financial Intelligence Unit of India has imposed a penalty of Rs 5.49 crore on Paytm Payments Bank for violations of the bank’s obligations under the Prevention of Money Laundering Act, 2002.

Jio Financial Services: The Bombay Stock Exchange announced its periodic reconstitution of S&P BSE Indices on Thursday, with Jio Financial Services being the only addition to the S&P BSE Large Cap.

Axis Bank: The company approved the raising of Rs 4,000 crore via long-term bonds, non-convertible debentures, and other debt instruments. The fundraise will have a base issue size of Rs 1,000 crore and a green shoe option of Rs 3,000 crore.

Asian Paints: The company will set up a new water-based paint manufacturing facility in Madhya Pradesh with a capacity of 4 lakhs KL per annum. The approximate investment for the facility is Rs 2,000 crore.

Torrent Power: The company received a Rs 2,700 crore order from Railway Energy Management for installing about 325 MW of renewable capacity. The company received a letter of award from NTPC Vidyut Vyapar Nigam to supply power from a a gas-based power project.

Info Edge: Google removes Info Edge’s job search app Naukri and property search app 99acres from Play Store enforcement action.

Tanla Platforms, Vodafone Idea: Tanla Platforms has signed a definitive Memorandum of Understanding with Vodafone Idea Business Services Ltd. to deploy ‘Messaging as a platform’ in India.

Cipla: The U.S. FDA conducted a pre-approval inspection at the manufacturing facility in China from Feb. 26 to March 1 and concluded with zero Form 483 observations.

PVR Inox: The company opened a 4-screen multiplex in Patna and a 14-screen multiplex in Pune.

Larsen and Turbo: The company’s arm has transferred the remaining 25% stake in step-down unit IIML to Allianz Infrastructure Luxembourg on Feb. 29. 

Source: Moneycontrol, Bloomberg Quint, Investing 

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