Market View 5th February 2024

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

Australia’s markets were trading in the red on Tuesday as investors awaited the Reserve Bank of Australia’s policy announcement. As of 06:13 a.m., the S&P ASX 200 was down 103.10 points, or 1.34%, at 7,596.30. At 2,581.24, the KOSPI was down 34.07 points, or 1.30%. Nonetheless, Japanese stock indices were up, with the Nikkei 225 closing at 36,335.26, up 177.24 points, or 0.49%. A strong jobs report improved corporate America’s outlook, and a surge in big tech helped the U.S. stock market maintain its gains from the previous week. In the vicinity of their all-time highs, stocks have remained resilient, with the S&P 500 surpassing 4,900. Two megacaps, Meta and Amazon, provided a bright outlook that helped the tech-heavy Nasdaq 100 rise 1%.

Economic Calendar:

• USD : Services PMI (Jan) on 05^th February, 2024
• USD : Initial Jobless Claims on 08^th February, 2024
• INR : M3 Money Supply on 07^th February, 2024
• INR : Interest Rate Decision on 08^th February, 2024

Brokerage Radar:

MS ON BHARTI AIRTEL: EW, TP Rs 1015; Announces part prepayment of deferred liability for spectrum acquired in 2015 auctions; Believe this will be positive on an NPV basis over tenure of spectrum.; Assuming yield on cash of 6-7%, est. this prepayment could help earnings by 1% for F25

CITI ON AXIS BANK: Buy, TP Rs 1370; Deposit growth (at 4% QoQ) outpaced peers but was dominated by non-retail TDs (up 12% QoQ). Management signaled its focus on containing LDR & anchoring loan growth to deposit accretion. Amidst deposit challenges, tone down advances growth est.

CLSA ON REC: Buy, TP Rs 510; 3Q net profit of Rs33bn up 14% YoY driven by healthy growth in net interest income; Loan growth of 21% YoY strong; Expected negative credit cost in 3Q, but recoveries in one of resolved projects lower

36bp QoQ decline in GNPA is healthy

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Bajaj Finance: The non-banking financial company will acquire a 7% stake on a fully diluted basis in RMBS Development Co. for an undisclosed amount.

Aurobindo Pharma: The USFDA inspected the company’s unit in Telangana and closed with nine inspections. The company temporarily stopped manufacturing on certain lines.

India Cements: The Enforcement Directorate searched the company’s Chennai office and was looking into certain forex transactions done by associate company India Cements Capital.

H.G. Infra Engineering: The company received a letter of acceptance from the Central Railway for a Rs 716 crore construction project.

Mahindra and Mahindra Financial Services: The company reported disbursement at Rs 4,440 crore, up 11% YoY, and collection efficiency at 95%.

Cochin Shipyard: The company received a contract worth Rs 150 crore from the Indian Navy for medium refits of two vessels.

Torrent Pharmaceuticals: Sudhir Mehta will step down as director and continue to be the chairman emeritus, effective April 1.

Atul: The company completed capacity expansion at the DCDPS plant and approved an investment of Rs 99.5 crore for expansion.

Torrent Power: The company will set up 150 MW of solar power projects at four of Shapoorji’s desalination plants.

India Glycols: The company expanded the capacity of the grain-based distillery plant in Gorakhpur to 290 KLPD from 110 KLPD.

InterGlobe Aviation: The low-cost airline company has registered a massive 110.7 percent on-year growth in profit at Rs 2,998.1 crore for the October–December period of FY24, driven by healthy topline and operating performance. Revenue from operations for the quarter increased by 30 percent to Rs 19,452 crore compared to the corresponding period of the last fiscal. EBITDAR grew by 61 percent year-on-year to Rs 5,475.1 crore during the quarter, with a margin expansion of 530 bps at 28.1 percent for the quarter. Yield increased by 2 percent year over year to Rs 5.48, and load factor improved by 0.7 points to 85.8 percent in Q3 FY24.

Source: Moneycontrol, Bloomberg Quint, Investing 

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