Market View 4th June, 2024

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

Most Asia-Pacific markets were trading lower in early Tuesday with all eyes on India’s general election results, scheduled to be out later in the day. The Nikkei 225 was 180.62 points, or 0.46% down at 38,742.41, and the KOSPI was 12.99 points, or 0.48% down at 2,669.53 as of 06:23 a.m. After seven phases of polling, the Election Commission is preparing to announce the results of the Lok Sabha 2024 election on Tuesday. With the counting process underway, public sector enterprises, financials, infrastructure, railway and defence will be in focus. US treasuries climbed as a weak manufacturing reading fueled speculation the Federal Reserve will have room to cut interest rates this year, Bloomberg said. The S&P 500 rose 0.11% and the Nasdaq Composite rose 0.56% as of Monday. The Dow Jones Industrial Average fell by 0.30%. Brent crude was trading 0.22% lower at $78.14 a barrel. Gold rose 0.01% to $2,351.02 an ounce.

Economic Calendar:

• USD : Manufacturing PMI (May) on 03^rd June, 2024
• USD: JOLTs Job Openings (Apr) on 04^th June, 2024
• INR: Nikkei S&P Global Manufacturing PMI (May) on 03^rd June, 2024
• INR: Nikkei Services PMI (May) on 05^th June, 2024

Brokerage Radar:

JEFFERIES ON HINDALCO: Buy, TP raised to Rs 810; Novelis’ 4Q EBITDA rose 28% YoY(+13% QoQ) & inline; Vol grew 2% YoY while EBITDA/t rose 8% QoQ to $540, Raise FY25-26E EPS by 2-3%; Vals reasonable at 6.1x FY25E EV/EBITDA

CITI ON MARICO: Buy, TP raised to Rs 610; 4Q In-line; Pricing Action to Drive Growth Expect trajectory to improve in FY25E:

a)vol growth acceleration

b)pricing-led growth

NOMURA ON LUPIN: Buy, TP Rs 1949; 4Q: EBITDA 8% higher than est. Co expects stronger FY25 (vs FY24) driven by growth across key geographies & improvement in EBITDA margins; Think US product launches & a tight leash on costs could present upside potential to current earnings est.

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Sectors: The public sector enterprises, financials, infrastructure, railway, and defense will be in focus with the Lok Sabha election results to be announced on Tuesday.

ICICI Bank, Adani Group: The bank and Adani One launched co-branded credit cards with airport-linked benefits. The credit cards are to be rolled out in collaboration with Visa.

Adani Power: The company plans to amalgamate its subsidiary, Mahan Energen, with Stratatech Mineral Resources to enhance fuel security and competitiveness in the power market.

Mahindra and Mahindra: The company reported overall disbursements at Rs 4,430 crore in the month of May, up 7% YoY and business assets at Rs 1.05 lakh crore, up 23% YoY, and collection efficiency stood at 96%.

RVNL: The company received an EPC order worth Rs 440 crore from South Central Railway.

Moil: The company reported manganese ore sales up 41% YoY at 2.15 lakh tonnes.

Zee Entertainment Enterprises: The company board meeting is scheduled for June 6 to consider raising funds by way of the issuance of equity shares.

Biocon: The company received a USFDA nod for the antifungal medication Micafungin. Micafungin is used as an antifungal medication to treat fungal or yeast infections.

Wipro: The company appointed Bruno Schenk as Country Head and Managing Director for Switzerland.

Dr. Reddy’s Laboratories: The company’s arm, Aurigene Pharmaceutical, opens a biologics facility in Hyderabad.

Century Textiles: The company arm incorporated a wholly owned subsidiary, Vibhavya Properties for real estate projects.

Techno Electric: The company has acquired NERES XVI Power Transmission from REC Power Development and Consultancy for Rs 7.15 crore.

Source: Moneycontrol, Bloomberg Quint, Investing 

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