Market View 31th Dec, 2024

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

Asian shares are facing pressure on the final trading day of the year, following a decline in technology stocks that added to losses on Wall Street. The retreat in technology shares started after the Federal Reserve lowered expectations for interest rate cuts, affecting investor sentiment. As a result, major stock indices in the US ended the year on a negative note, with the losses continuing for a third consecutive session. In Asia, broad-based weakness across markets also weighed on the performance of key indices. Indian markets followed the global trend, with both the NSE Nifty and BSE Sensex closing lower. This decline was part of a broader pattern of market struggles seen globally, affecting investor confidence. The combination of weaker technology stocks and concerns over global economic conditions contributed to the downward movement in stock markets worldwide as the year came to a close.

Economic Calendar:

• USD: Price Index (MoM) (Oct) on 31st December 2024.
• IND: Federal Fiscal Deficit (Nov) on 31^st December 2024.
• USD: Initial Jobless Claims on 2nd January 2024.
• IND: HSBC India Manufacturing PMI (Dec) on 2^nd January 2025.

 

IPO Watch:

Brokerage Radar:

CITI ON INDUS TOWER:

Reiterate our 90-day Positive Catalyst Watch, target price at Rs 485,  Improved visibility of dividend reinstatement in 3Q/4Q, Upcoming pickup in tenancies from Vodafone Idea starting 3Q, with a possible inflection in tenancy ratio from 4Q, Declining capex aiding free cash flow generation, Trading at 6%/8% dividend yield on Buy / high risk price.

ELARA CAPITAL ON CEMENT:

Pan-India average price up Rs 12/bag in December, Sharpest monthly price gain in CY24, Price hike attempts of Rs 5-40/bag likely in January, Industry faced challenges due to winters, limited labour, pollution issues-NCR, Central/North India up Rs 5-15/bag, East India prices up 10-30/bag, South India up Rs 10-15/bag.

UBS ON BANKS:

Microfinance PAR O+ (overdues) was up 110bp MoM in November,  Το 18.6% (up 240bp/620bp since September/March 2024), Higher slippages expected in H2FY25 vs, Effect on collection efficiency of floods/festivals (some geographies) in October might have partially reversed in November, Stress might not peak out in Q3 as believed by some managements.

International Markets:

U.S & Europe:

*As per 31^st December.

Asian markets:

Stocks strong on Chart:

Commodities & Currency:

FIIs & DIIs:

NEWS UPDATES

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