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

Following the lead set by Wall Street’s overnight advances, the majority of markets in the Asia-Pacific area saw higher opening activity on Wednesday. At 6:30 a.m., the KOSPI index was up 31.35 points, or 1.22%, at 2,607.55 and the S&P ASX 200 was up 42.80 points, or 0.56%, at 7,624.40. Japan’s markets were trading negatively, defying the overall trend. As of 06:31 a.m., the Nikkei 225 was down 67.64 points, or 0.19%, at 36,093.02. Following a two-day meltdown, the U.S. bond market recovered as investors looked to a number of Federal Reserve speakers for indications about how the most recent economic data would affect their rate forecast, according to Bloomberg. On Tuesday, the Nasdaq 100 and the S&P 500 index both saw increases of 0.23%. The Dow Jones Industrial Average rose by 0.37%.

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 06th February Chg. Chg.(%)
Nasdaq 15609.00 11.32 0.07
Dow 38521.36 141.24 0.37
FTSE 7681.01 68.15 0.89
CAC 7638.97 49.01 0.64
DAX 17033.24 129.18 0.76
Dow Fut.* 38565.62 46.25 0.12

Asian markets:

Particulars 07th February Chg. Chg.(%)
GIFT Nifty 22112.50 108.00 0.49
Nikkei 36122.57 -38.09 -0.11
Straits Times 3160.29 34.61 1.11
Hang Seng 16236.71 99.84 0.62
Shanghai 2813.70 24.21 0.87

ADR Watch:

Particulars 06th February  Chg.       Chg.(%)
Dr. Reddy 73.25 0.40 0.54
HDFC Bank 56.04 0.57 1.03
ICICI Bank 24.66 0.12 0.49
Infosys 20.60 0.30 1.48
Wipro 5.95 0.18 3.03

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 83.05 -0.02
Brent 78.71 0.15
Gold 2050.80 -0.03
Silver 22.46 -0.09

FIIs & DIIs:

Particulars 06th February 05th February
FIIs                          92.52 518.88
DIIs 1096.26 -1188.68

News Update:

UPL: Moody’s Investors Service downgraded the company’s senior unsecured rating to ‘Ba1’ from ‘Baa3’ on deterioration in the agrochemical industry fundamentals.

JB Chemicals & Pharmaceuticals: The company appointed Narayan Saraf as chief financial officer effective Feb. 23.

Biocon: The company received USFDA tentative approval for Dasatinib tablets, which are used in the treatment of the Philadelphia chromosome.

Lupin: The company received USFDA approval from ANDA for bromfenac ophthalmic solution, which is a generic of bromsite.

Power Finance Corp: The company incorporated Bhadla-III and Bikaner-III transmission as a wholly owned subsidiary for the development of transmission system strengthening for interconnections of the Bhadla III and Bikaner-II complexes.

Yasho Industries: The company begins a trial run at the Bharuch unit for manufacturing industrial chemicals.

Karnataka Bank: The company received an RBI nod for exercising the call option on bonds.

Mahindra Lifespace Developers: The company received an Irdai nod for a Rs 1,612 crore capital infusion by Axis Bank, subject to CCI approval.

Mahindra Life: The company received a Rs 2.3 crore penalty for non-adherence to forest norms.

One 97 Communications: Paytm’s Founder Vijay Shekhar Sharma has met Finance Minister Nirmala Sitharaman, reports CNBC-TV18, quoting sources. Sharma is likely to have to discuss the current situation with respect to Paytm.

FSN E-Commerce Ventures: The Nykaa brand operator has recorded a 106 percent on-year growth in net profit at Rs 17.5 crore for the quarter ended December FY24, with revenue increasing 22 percent to Rs 1,788.8 crore and gross merchandise value growing 29 percent over a year-ago period. EBITDA for the quarter jumped 26 percent YoY to Rs 98.8 crore, with a margin expansion of 20 bps at 5.5 percent in Q3 FY24.

Source: Moneycontrol, Bloomberg Quint, Investing 

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