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

After a conflicting US jobs data and a reversal of gains on Wall Street, which saw the S&P 500 shed over 1% of its gain, Asian markets are expected to fall. Futures for benchmarks in Hong Kong, Australia, and Japan declined, as did an index of Chinese stocks with US listings. West Texas Intermediate was trading above the $80 line and Brent crude was at $86.41 a barrel. The yield on a 10-year US bond was 4.03%, and the price of Bitcoin was below the 30,000 mark. The GIFT Nifty, a leading indication of the performance of the Nifty 50 Index in India, was trading 0.22% higher at 19,602.5 at that time.

Economic Calendar:

  • USD : CPI (MoM) (Jul) on 10th Aug, 2023
  • USD : Initial Jobless Claims on 10th Aug, 2023
  • INR : Interest Rate Decision on 10th Aug, 2023
  • INR : Reverse REPO Rate on 10th Aug, 2023

Brokerage Radar:

CLSA ON BHEL: Sell, TP Raised to Rs 78; Order backlog grew 2% YoY, despite a Vande Bharat train order worth $1.7bn, as thermal orders were delayed; Operationally, another weak qtr in 1Q with expanding Ebitda/PAT losses on weak execution driven by non-moving orders

MS ON BOB: OW, TP cut to Rs 235; PAT 19% below est. (lower core PPoP, higher credit costs) RoA 1.1% vs. 1.3% in 4QF23; NIM challenges remain– expect funding costs to rise further; BoB needs to increase passthrough, particularly on corp loans; Prefer large prvt. bks

NOMURA ON MGL: Buy, TP Rs 1250; Robust Q1 driven by record margins; vol in-line; CNG additions picking up pace; vol growth guidance of 5-6% reiterated; Raise FY24F EBITDA by 10% & trim FY25F EPS by 2% on 1)higher unit EBITDA for FY24F of Rs11/scm 2) 2% lower vols for both FY24-25F

International Markets

U.S & Europe:

Particulars 04th August Chg. Chg.(%)
Nasdaq 13909.24 -50.48 -0.36
Dow 35065.62 -150.27 -0.43
FTSE 7564.37 35.21 0.47
CAC 7315.07 54.54 0.75
DAX 15951.86 58.48 0.37
Dow Fut.* 35285.80 69.90 0.20

Asian markets:

Particulars 07th August Chg. Chg.(%)
GIFT Nifty 19617.00 28.50 0.15
Nikkei 32190.31 -2.44 -0.01
Straits Times 3309.39 17.00 0.52
Hang Seng 19543.54 4.08 0.02
Shanghai 3271.10 -16.98 -0.52

ADR Watch:

Particulars   04th August  Chg.       Chg.(%)
Dr. Reddy 69.17 0.26 0.38
HDFC Bank 66.83 0.55 0.83
ICICI Bank 23.55 0.00 0.00
Infosys 16.71 0.20 1.21
Wipro 4.90 0.09 1.87

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 82.70 0.02
Brent 86.19 -0.06
Gold 1976.50 0.02
Silver 23.645 -0.30

FIIs & DIIs:

Particulars   04th August 03rd August
FIIs                          -556.32 -317.46
DIIs 366.61 1729.19

News Update:

NDTV: The company received the government’s permission to uplink and downlink four news channels—NDTV Rajasthan, NDTV Madhya Pradesh/Chhattisgarh, NDTV Gujarati, and NDTV Marathi.

Adani Enterprises: The company’s unit, Adani Digital Labs, has acquired a 70.19% stake in Stark Enterprises, popularly known as Trainman, for Rs 6.8 crore. The company had previously acquired a 29.81% stake in July.

AIA Engineering: The company will acquire a 30% stake in Australia’s MPS for A$7.86 million via a share purchase agreement and shareholders’ agreement. The acquisition will happen via UAE-based Vega Industries, the company’s wholly owned subsidiary. The unit has the option to acquire a 40% stake in Vega MPS, a new company created by MPS promoters, over the next three years.

Brookfield India REIT: The company will garner Rs 400 crore by issuing units to sponsor group entity Project Diamond Holdings on a preferential basis and also plans to raise up to Rs 750 crore through the issue of commercial papers to finance the acquisition of two commercial assets in Gurugram and Mumbai.

Adani Wilmar, KRBL, and LT Foods: The Central government is considering all options, including a reduction in import duty, to contain the rise in wheat prices, Food Secretary Sanjeev Chopra said.

Divgi TorqTransfer Systems: The company won an order of Rs 180 crore from an overseas customer to supply components for their OE Programme. The production will commence in Q4 of FY24.

Ami Organics: The board has approved the issuance of up to 4,43,500 equity shares by way of preferential issue on a private placement basis to raise Rs 51.84 crore. The issue price was fixed at Rs 1169.

ABB India: The company will consider a special dividend at its Aug. 11 board meeting.

Dr. Reddy’s Laboratories: The USFDA issued an Establishment Inspection Report after inspecting its Hyderabad plant. The inspection result was classified as Voluntary Action Indicated.

Aurobindo Pharma: The drugmaker got zero observations and a classification of No Action Indicated from the USFDA inspection at the Telangana plant.

Source: Moneycontrol, Bloomberg Quint, Investing 

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