Market View 2nd September, 2024

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

Most markets in Asia-Pacific region fell on Monday after data from China showed factory activity slowed in the economy despite government’s recent efforts. Most countries in Asia Pacific conduct substantial business with the world’s second largest economy. A rally in US stocks faded at the end of a turbulent month on Wall Street as equities experienced only modest movements on Friday. Despite the volatility in global markets, August is concluding on a relatively calm note. India’s benchmark stock indices ended at a record closing high on Friday, with the Nifty 50 extending gains for the 12th consecutive session, marking the best rally since its launch in 1996. Sensex rose for the ninth consecutive session.

Economic Calendar:

• USD: Manufacturing PMI(Aug) on 3^rd September
• IND: S&P global manufacturing index on 2^nd September

IPO Watch:

Brokerage Radar:

UBS on Axis Bank:

Maintain Buy; Hike target price to Rs 1250 from Rs 1150.Sectoral headwinds and weak Q1 has led to the recent underperformance. Structural changes to protect metrics, however weakness likely in near term. Valuations discount to peers has increased and appear reasonable currently

Equirus on Gujarat Gas:

Upgrade to Add from Reduce; Hike 1000 target price to Rs 667 from Rs 580.Gujarat Gas to emerge as one of the largest Integrated Players. Huge cash flow generation and by existing Rs 3500 cr of cash. EPS accretive from 1st year.

MACQUARIE ON CEMENT:

Consolidation bodes well for medium-term margins; near-term risks persist. Healthy demand and cost moderation offset by muted cement prices. Expect Q2/Q3 earnings to remain subdued. Delivery on cost efficiency targets could also be margin accretive. Suggest waiting for better entry points on better earnings visibility/valuation.

International Markets:

U.S & Europe:

*As per 2^nd September.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

News Update:

Company

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