Market View 7th July 2023

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

The futures for the Asian markets pointed to declines on Friday, after the Treasury yields spiked on surprisingly strong private hiring data. The S&P 500 declined 0.79% while the Nasdaq 100 fell less than 0.82%, after ADP Research Institute numbers showed US companies added the most jobs in over a year in June, underscoring the inflationary threat from the strong labor market. Brent crude was below $76 a barrel. The yield on the 10-year U.S. bond was trading at 4.03%, whereas Bitcoin was below the $30,000 level. At 5:18 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.29% or 58 points trading at 19,758.0.

Economic Calendar:

• USD : Unemployment Rate (Jun) on 07th July, 2023
• USD : Nonfarm Payrolls (Jun) on 07th July, 2023
• INR : FX Reserves, USD on 07th July, 2023
• INR : CPI (YoY) (Jun) on 12th July, 2023

Brokerage Radar:

MS ON DABUR: OW, TP Rs 606; Improving demand trends in urban and rural markets during F1Q. Management optimistic on the outlook. Gross margin improvement should continue, supporting YoY gains in F2024 EBITDA margins despite higher A&P spending

MS ON TITAN: OW, TP Rs 3207; Initial F1Q trends were strong with 20% YoY company-level growth led by 21% growth in jewellery. Akshaya Tritiya & wedding purchases in June led performance, despite gold price volatility

CITI ON TECH MAH: Sell, TP Rs 905; Stock up 17% from April lows despite weak biz outlook & challenges highlighted by peers; Commonly hear 1 of following reasons for run-up a)Joining of Mohit Joshi &possibility of turnaround; b)Cheap val & FCF yield c)Strong buying by DMF & Ins cos

International Markets

U.S & Europe:

 

Asian markets

ADR Watch:

Commodities & Currency

FIIs & DIIs:

News Update:

Reliance Industries: The National Company Law Tribunal has approved the demerger of Reliance Industries’s financial services undertaking into Reliance Strategic Investments, to be renamed Jio Financial Services. Reliance Industries and Reliance Strategic Investments will take the necessary steps, including fixing the record date for allotment and listing of equity shares of Reliance Strategic Investments.

Indian Hotels: The company signed 11 hotels in the first quarter and opened five new hotels across destinations.

Infosys: The company’s North American-based unit, Infosys Public Services, opened a new subsidiary in Canada.

JK Cement: The company has acquired an additional 20% stake for Rs 60.24 crore in Acro Paints, taking its overall holding to 80%.

Indian Oil and Praj Industries: The companies have signed a term sheet to strengthen biofuel production capacities in India. The joint venture will include the production of sustainable aviation fuel, ethanol, compressed biogas, biodiesel, and Bio-bitumen. In October 2021, the companies inked an agreement to form a JV for this.

Affle (India): The company’s unit in Singapore agreed to acquire the remaining 5% shares of Appnext at a consideration of $1.5 million in tranches within three years. Aster DM Healthcare: The company has acquired an additional 2.36% stake in unit Malabar Institute of Medical Sciences from several minority shareholders, thus increasing its holding from 76.01% to 78.37%.

Ideaforge Technology: The leading drone manufacturing company will make debut on the bourses on July 7. The issue price has been fixed at Rs 672 per share.

Sobha: The south-based real estate developer has recorded a 27.9% year-on-year growth in total sales at Rs 1,465 crore for quarter ended June FY24, which is the highest ever quarterly sales value, while sales volume increased by 2.6% YoY to 1.39 million square feet. Price realisation for the quarter surged 24.6% to Rs 10,506 per square feet compared to same period last year. The company has completed construction of 0.97 million square feet of saleable area (624 homes).

Source: Moneycontrol, Bloomberg Quint, Investing 

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