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

Following Wall Street, the majority of other Asian indices fell as expectations for a quick shift by the Federal Reserve to monetary easing were further dampened by positive US economic statistics. Treasuries rose on Monday following yet another decline. A barrel of Brent crude was trading 0.08% higher at $78.05. An ounce of gold was trading at $2,027.94, up 0.14%. India’s key stock indices saw a lower close on Monday, with losses in index heavyweights Reliance Industries Ltd. and Bharti Airtel Ltd. wiping out all morning gains due to last-hour selloffs. The Sensex dropped 0.49%, or 354.21 points, to end at 71,731.42, while the Nifty finished 0.38%, or 82.10 points, lower at 21,771.70. The Sensex climbed 0.42% and the Nifty up to 0.51%.

Economic Calendar:

  • USD : Initial Jobless Claims on 08th February, 2024
  • USD : CPI (MoM) (Jan) on 13th February, 2024
  • INR : M3 Money Supply on 07th February, 2024
  • INR : Interest Rate Decision on 08th February, 2024

Brokerage Radar:

MS ON BHARTI AIRTEL: EW, TP Rs 1015; Steady performance; Key highlights:

  1. a) Beat in India mobile business revenues and EBITDA led by improving subscriber mix;
  2. b) flattish capex qoq coming lower than our estimate;
  3. c) robust cash flow generation.

GS ON ASHOK LEYLAND: Buy, TP Rs 230; 3Q beat as a combination of pricing discipline, favorable RM prices & ongoing optimization in cost Gross margin of 27.8% was 150bps higher than BBG cons; EBITDA margin of 12.%, highest 3Q margin in co’s history (+320bps yoy)

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:

Particulars 05th February Chg. Chg.(%)
Nasdaq 15597.68 -31.28 -0.20
Dow 38380.12 -274.30 -0.71
FTSE 7612.86 -2.68 -0.04
CAC 7589.96 -2.30 -0.03
DAX 16904.06 -14.15 -0.08
Dow Fut.* 38366.41 -13.71 -0.04

Asian markets:

Particulars 06th February Chg. Chg.(%)
GIFT Nifty 21822.50 20.50 0.09
Nikkei 36114.06 -240.10 -0.66
Straits Times 3126.40 -7.89 -0.25
Hang Seng 15824.31 314.30 2.03
Shanghai 2729.21 27.02 1.00

ADR Watch:

Particulars 05th February  Chg.       Chg.(%)
Dr. Reddy 72.87 0.68 0.94
HDFC Bank 55.48 0.68 1.23
ICICI Bank 24.54 -0.06 -0.24
Infosys 20.31 -0.04 -0.20
Wipro 5.77 -0.01 -0.09

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.02 -0.02
Brent 78.05 0.08
Gold 2042.15 -0.04
Silver 22.44 0.07

FIIs & DIIs:

Particulars 05th February 02nd February
FIIs                          518.88 70.69
DIIs -1188.68 2463.16

News Update:

One 97 Communication: Paytm operator One97 Communications Ltd. has denied reports of investigation or violation of foreign exchange rules by the company or its associate Paytm Payments Bank.

Jio Financial Services: The company has denied being in talks to acquire the crisis-hit Paytm wallet of One 97 Communications.

Zee Entertainment Enterprise: The National Company Law Tribunal will hear on Tuesday a plea filed by the company regarding the recently terminated merger with Sony Group Corp.’s Indian subsidiary.

Adani Total Gas, INOX India: The two companies have entered into a mutual support agreement under which ATGL and INOXCVA will mutually accord a “preferred partner” status for the delivery of LNG and LCNG equipment.

Pidilite Industries: The company announced the inauguration of a new manufacturing facility in Sandila, near Lucknow, for its tile adhesive brand, Roff.

Triveni Turbine: The company incorporated a wholly-owned subsidiary, ‘Triveni Turbines Americas Inc.’ in Texas, USA.

Styrenix Performance Materials: The company was awarded the contract to Mott Macdonald to set up the brownfield expansion project to increase the annual capacity of ABS from 85 KT to 210 KT.

Indian Energy Exchange: The total volume stood at 10,893 MU, up 26.1% year-on-year for the month of January.

Hindalco Industries: The company bought a 26% stake in Ayana Renewable Power for Rs 1.63 crore.

JK Cements: The company approved the merger of units Acro Paints and JK Maxx.

SP Apparels: The company acquired a 100% stake in Youn brand apparel, a subsidiary of Bannari Amman Spinning Mills for Rs 223 crore.

Source: Moneycontrol, Bloomberg Quint, Investing 

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