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

The latest remarks from a Federal Reserve member, which indicated to additional rate hikes to manage inflation, have dampened Wall Street euphoria as Asian stocks prepare for a mixed morning after US shares recovered from their worst week since March. Australian and Japanese equities futures rose, but Hong Kong contracts decreased. West Texas Intermediate was trading above the $80 line while Brent crude was at $85.34 a barrel. The yield on a 10-year US bond was 4.09%, and the price of Bitcoin was below the 30,000 mark. The GIFT Nifty, an early predictor of the performance of the Nifty 50 Index in India, was trading at 19,783 at 5:08 in the morning.

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 07th August Chg. Chg.(%)
Nasdaq 13994.40 85.16 0.61
Dow 35473.13 407.51 1.16
FTSE 7554.49 -9.88 -0.13
CAC 7319.76 4.69 0.06
DAX 15950.76 -1.10 -0.01
Dow Fut.* 35431.60 -41.50 -0.12

Asian markets:

Particulars 08th August Chg. Chg.(%)
GIFT Nifty 19645.00 -36.50 -0.19
Nikkei 32358.10 103.54 0.32
Straits Times 3310.06 0.19 0.01
Hang Seng 19307.16 -230.76 -1.18
Shanghai 3266.29 -2.54 -0.08

ADR Watch:

Particulars    07th August  Chg.       Chg.(%)
Dr. Reddy 69.13 -0.04 -0.06
HDFC Bank 66.96 0.13 0.19
ICICI Bank 23.77 0.22 0.93
Infosys 16.78 0.07 0.42
Wipro 4.94 0.04 0.82

Commodities & Currency:

Particulars Current Price Chg.(%)
USD/INR 82.81 -0.03
Brent 85.57 0.27
Gold 1968.90 -0.06
Silver 23.230 -0.01

FIIs & DIIs:

Particulars   07th August 04th August
FIIs                          -1892.77 -556.32
DIIs 1080.80 366.61

News Update:

Adani Green Energy: Qatar Sovereign Wealth arm, INQ Holding bought 2.7% stake in a bulk deal. Infinite Trade and Investment, a promoter entity, sold 4.48 crore shares (2.8%) at Rs 920.43 apiece.

BEML: The company secured a letter of acceptance from Bangalore Metro Rail Corporation for supply of rolling stock contract 5RS-DM valued at Rs 3,177 crore.

One 97 Communications: PWC India resigned as auditor of Paytm Payments Services. The resignation follows an Aug. 2 letter by One 97 Communications which cited change in auditor at holding company level. Keeping in mind the company’s practice of aligning auditor of holding company with material subsidiary, PWC submitted its resignation.

Lloyds Metal and Energy: An accident occurred within the company’s mines in the Gadchiroli district of Maharashtra on Sunday. This accident was caused due to the overturn of a Dumper on a Camper, operated and owned by the MDO, resulting in the loss of three lives and two injuries.

RailTel Corporation of India: The company has received the work order from Pimpri Chinchwad Smart City for providing end-to-end services for monetisation of PCSCL city network infrastructure on revenue sharing model. The estimated annual revenue from the contract is Rs 70 crore and the total revenue for 10 years is Rs 700 crore.

MMTC: Securities and Exchange Board of India has cancelled the registration of the company as a stockbroker for its involvement in an illegal “paired contract” in the case pertained to the defunct National Spot Exchange Ltd.

Gravita India: The company announced that ‘pure lead’ of 99.98 % purity and above produced by the company from its Phagi, Jaipur plant has been empaneled as approved ‘Lead Brands’ deliverable against MCX lead futures contract.

Welspun Specialty Solutions: The company has received orders for aggregative amount of Rs 37 crore for supply of stainless steel bars from a domestic customer, unrelated party. The said order is expected to be executed by the end of October 2023.

Privi Speciality Chemicals: The company has invested the second tranche of Rs 3.64 crore by subscribing to 36.46 lakh equity shares of Rs 10 each equivalent to approximately 26% of the issued and paid-up capital of the Special Purpose Vehicle – Radiance MH Sunrise Ten.

Source: Moneycontrol, Bloomberg Quint, Investing 

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