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

Asian indices opened with mixed outcomes, with Japan’s Nikkei seeing the biggest drop after Shigeru Ishiba was elected as party the head. Increased hostilities in West Asia had a detrimental effect on market mood as well. The majority of US equity indices closed lower as predictions for rate cuts grew. After two days of advances, the NSE Nifty 50 lost its six-session winning run, while the S&P BSE Sensex also dropped. For the third week in a row, Indian benchmarks ended the week higher, nevertheless. While domestic institutional investors continued to be active buys, acquiring sizeable shares for five days in a row, foreign portfolio investors were net sellers, selling stocks worth over a thousand crore.

 

Economic Calendar:

  • USD: S&P Global US Manufacturing PMI (Sept) on 1st October 2024.
  • IND: Federal Fiscal Deficit (Aug) on 30th Sept 2024.
  • USD: Fed Chair Powell Speaks on 30th Sept 2024.
  • IND: HSBC India Manufacturing PMI (Sept) on 1st October 2024.

IPO Watch:

Company Open Close Price View
Diffusion Engineers 26 Sept 30 Sept 159-168 Apply

Brokerage Radar:

MORGAN STANLEY ON BERGER PAINTS:

Maintain underweight target price at Rs 497, Raise FY25 EBIDTA margin assumption to 16.2% from 15.5%, Lower commodity costs, FY25 earnings expected to be higher by 7%.

MORGAN STANLEY ON ASIAN PAINTS:

Maintain underweight target price at Rs 2522, Raise FY25 EBIDTA margin assumption to 19% from 18.4%, Lower commodity costs, FY25 earnings expected to be higher by 4%.

GOLDMAN SACHS ON NEULAND LABS:

Reiterate Buy, target price 12,975 from Rs 11,400, FDA approval for Cobenfy is a key event, FY26 Xanomile estimates to be up 55-60%, CDMO business multiple raised to 40x from 37x.

International Markets:

U.S & Europe:

Particulars     27th  Sept   Chg. Chg.(%)
Nasdaq 18,119.59 -70.70 -0.39
Dow 42313 137.89 0.33
FTSE 8,320.76 35.85 0.43
CAC 7,791.79 49.70 0.64
DAX 19,473.63 235.27 1.21
Dow Fut.* 42643 -13 -0.03

*As per 30th September.

Asian markets:

Particulars   30th Sept Chg. Chg.(%)
GIFT Nifty                  26280 -65.15 -0.25
Nikkei 37,977.56 -1,844.36 -4.63
Straits Times 3,578.51 5.15 0.14
Hang Seng 20,978.37 346.07 1.68
Shanghai                               3,197.94 110.41 3.58

Stocks strong on Chart:

Index F&O Cash
RIL BEL MAX ESTATE
BPCL APOLLO TYRE JIO FINANCE
ITC SAMVARDHAN PRATAAP SNA
TATA MOTOR IOC BARBEQUE
SBI POLYCAB BLUE STAR
BAJAJ FIN TATA POWER CEAT

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.716 0
Brent 71.74 0.28
Gold 74,930.00 0.10
Silver 91,400.00 0

FIIs & DIIs:

Particulars        27th Sept        26th Sept
FIIs                          -1,209.10 629.96
DIIs 6886.65 2405.12

News Update:

Company

BSE: The company revised Sensex option trade fee to Rs 3,250 per crore of premium turnover value and Bankex option trade fee to Rs 3,250 per crore of premium turnover. The changes will be effective from Oct. 1.
IDFC First Bank: The company’s merger with IDFC Financial, IDFC to be effective from Oct. 1. The record date for determining eligible shareholders is set as Oct. 10.
Adani Green Energy: The company is in a business transfer agreement with unit North Maharashtra Power for carving out Dahanu station.
ICICI Prudential Life Insurance Co: The company has received an income tax demand notice worth Rs 361 crore, including interest.
PNB: The company raised Rs 5,000 crore through a QIP, having initially aimed for Rs 7,000 crore. The bank allotted 48.2 crore shares at a price of Rs 103.75 each, with key investors including Citi Group, Bank of America Securities, SBI Contra Fund, Morgan Stanley, and Goldman Sachs.
DR Reddy’s Laboratories: The company has finalized a $620 million investment in its Switzerland unit.

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