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

Following a drop in US stocks and Treasuries, Asian stocks are expected to open neutral as attention turns to Friday’s jobs report for guidance on the direction of the Federal Reserve’s next moves. Benchmark index futures for Japan indicated a drop, while those for Australia and Hong Kong indicated little change and increases, respectively. Both the S&P 500 and the Nasdaq 100 had a third day of declines, putting them on pace to have their worst weeks since the middle of March. West Texas Intermediate was trading above the $80 level, and Brent oil was trading around $85.14 per barrel. The yield on a 10-year US bond was 4.18%, while the price of Bitcoin fell below the 30,000 mark. At 5:09 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was trading 0.03% lower at 19,451.5.

Economic Calendar:

  • USD : Nonfarm Payrolls (Jul) on 04th Aug, 2023
  • USD : Unemployment Rate (Jul) on 04th Aug, 2023
  • INR : FX Reserves, USD on 04th Aug, 2023
  • INR : Bank Loan Growth on 04th Aug, 2023

Brokerage Radar:

HSBC ON MARICO: Buy, TP Rs 610; 1Q domestic volume up 3% amid weak rural demand; value down 7% due to price cuts; international delivers 16% CC growth; Volumes to pick up in 2H; margin headwinds waning and Marico expects a gross margin expansion of 300-350bp in FY24e

MS ON NAVIN FLOURINE: OW, TP cut to Rs 4951; Co’s constructive outlook across specialty chem & contract manuf. in a tough global demand backdrop was a surprise; A balanced biz mix, still resilient agchem portfolio, new CDMO order wins & upside levers to vol/margins keep us OW

JEFFERIES ON CHOLA FIN: Buy, TP Rs 1350; Adj PAT Rs7bn (23% YoY), 9% below est. due to tad lower NII & higher prov. AUM rose 40% YoY; NIM fell 33bpsQoQ due to higher CoF(38bps QoQ) Board approved QIP of Rs40bn, can be 23% BV accretive if equity is issued at CMP

International Markets

U.S & Europe:

Particulars 03rd August Chg. Chg.(%)
Nasdaq 13959.71 -13.73 -0.10
Dow 35215.89 -66.63 -0.19
FTSE 7529.16 -32.47 -0.43
CAC 7260.53 -52.31 -0.72
DAX 15893.38 -126.64 -0.80
Dow Fut.* 35285.80 69.90 0.20

Asian markets:

Particulars 04th August Chg. Chg.(%)
GIFT Nifty 19490.00 38.50 0.20
Nikkei 32130.94 -28.34 -0.09
Straits Times 3296.25 -7.81 -0.24
Hang Seng 3296.25 -7.81 -0.24
Shanghai 3284.42 3.96 0.12

ADR Watch:

Particulars   03rd August  Chg.       Chg.(%)
Dr. Reddy 68.91 -0.44 -0.63
HDFC Bank 66.28 -0.40 -0.60
ICICI Bank 23.55 -0.47 -1.96
Infosys 16.51 -0.01 -0.06
Wipro 4.81 -0.04 -0.82

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 82.76 -0.09
Brent 85.25 0.13
Gold 1970.85 0.10
Silver 23.613 -0.35

FIIs & DIIs:

Particulars   03rd August   02nd August
FIIs                          -317.46 -1877.84
DIIs 1729.19 -2.23

News Update:

Vedanta: S&P Global Ratings revised the rating outlook on Vedanta Resources to negative from stable to reflect the heightened refinancing risk due to its large debt maturities up until March 2025. Moreover, its promoter entity, Twin Star Holdings, sold 15.4 crore shares (4.1%) at Rs 258.55 apiece in a bulk deal.

Mining companies: The parliament passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023, to provide a fixed 50-year production lease for offshore minerals. Under this legislation, the government aims to introduce auctions as the route to awarding production leases for offshore minerals.

Maruti Suzuki: The board will meet on Aug. 8 to consider the mode of payment for Suzuki Motor Corporation’s stake in the Suzuki Motor Gujarat plant by way of either ash or preferential issuance of equity shares.

Paytm: The company’s average monthly users rose by 19% YoY to 9.3 crore. Payment volumes for merchants, or Gross Merchandise values, rose 39% on-year to Rs 1.47 lakh crore.

KEC International: The company has secured new orders of Rs 1,065 crore across its various businesses, including energy transmission and distribution and cables. The year-to-date order intake stands at Rs 4,500 crore, a growth of 30% y-o-y. NBCC: The company won a contract worth Rs 301 crore to construct a hostel-cum-residential block at the University of Delhi.

Torrent Power: The company, through its subsidiary, will supply 132 MW of solar power to Shapoorji Pallonji for its desalination plants in Gujarat. The project cost is Rs 700 crore.

JM Financial: The board approved the appointment of Nishit Shah as the Chief Financial Officer in place of Manish Sheth, effective Oct. 1.

Radico Khaitan: The company re-appointed Sushmita Singha, Tushar Jam, and Sharad Jaipura as Independent Directors for a second term of five years. Hatsun Agro Product: The company inaugurated its chocolate manufacturing unit in Telengana. The unit has a capacity to manufacture 7,000 kg of chocolate per day.

Source: Moneycontrol, Bloomberg Quint, Investing 

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