Market View 10th January 2024

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

While most Asian-Pacific markets saw declines, Japan’s stocks continued their 34-year upward trend early on Wednesday. At 34,230.33, Nikkei was up 1.38% on the trading day. As of 6:31 a.m., the S&P ASX 200 and KOSPI were down 0.12% and 0.43%, respectively. Currently, market players are anticipating the publication of numerous economic reports from the United States and China. Later this week, China will release its trade and inflation statistics. The U.S. Consumer Price Index is expected to be released on Thursday. After a tech-led rally, U.S. stocks varied as oil prices rose and Treasury 10-year rates stayed above 4%. On Tuesday, the Dow Jones Industrial Average and S&P 500 index fell 0.42% and 0.15%, respectively. The Nasdaq 100 saw a 0.17% increase.

Economic Calendar:

• USD : Core CPI (MoM) (Dec) on 11^th January, 2024
• USD : Initial Jobless Claims on 11^th January, 2024
• INR : CPI (YoY) (Dec) on 12^th January, 2024
• INR : FX Reserves, USD on 12^th January, 2024

Brokerage Radar:

CLSA ON TATA POWER: Buy, TP Raised to Rs 955(on roll fwd); Europe, UK & China led significant vol growth in 3Q; CO raised JLR Ebit margin guidance to 8% from 6% for FY24 & expects Ebit margin to reach 10% by FY26; JLR expects to reduce net debt to £1bn by end of FY24

CITI ON ZEE ENT: Buy, TP Rs 340; News Flow Suggests Potential Uncertainty Around Merger Completion; However, assuming merger goes through (base case assumption), expect it to drive advt. & subscription revenue synergies along with potential cost synergies as well

UBS ON BAJAJ AUTO: Sell, TP Rs 5600; Buy-back announced at Rs10k/sh; promoters expected to participate; This means co will buy-back c1.41% of total equity& implies promoter group will potentially receive Rs22bn; Stk has already run-up c6% since news of a board meeting

International Markets:

U.S & Europe:

Asian markets:

ADR Watch:

Commodities & Currency:

FIIs & DIIs:

News Update:

Mahindra and Mahindra: The company will collaborate with a US-based automobile technology company, Mobileye for software solutions and to explore building a full-stack autonomous driving system.

Power Finance Corp: The company received a no-objection letter from the Reserve Bank of India for setting up a finance company in the International Financial Services Centre situated in GIFT City, Gujarat.

Polycab India: The company denied media reports of tax evasion and said that it has not received any communication from the income-tax department regarding the outcome of the search.

Lupin: The pharma major received approval from the USFDA for the launch of Bromfenac Ophthalmic Solution, 0.07% in the United States.

Shyam Metalics And Energy: The company raised Rs 1,385 crore through qualified institutional placement at Rs 576 per share, which indicated a discount of 9.70% to the current market price.

Steel Strips Wheels: The National Company Law Tribunal approved the acquisition of the AMW Autocomponent. The company has also invested Rs 138.15 crore into AMW Autocomponent through a mix of equity for Rs 5 crore and an inter-corporate loan of Rs 133.15 crore.

IRCTC: The Railway Ministry nominated Sanjay Kumar Jain as the chief managing director of the company.  

Life Insurance Corp: The company has increased its stake to 5% from 4.8% in Navin Fluorine.

KIOCL: The company’s operations at the Mangalore pellet plant were suspended due to the non-availability of iron-ore fines.

Karnataka Bank: The private lender partnered with Digivriddhi to offer a host of financial services catering to the needs of dairy farmers and milk societies.

Source: Moneycontrol, Bloomberg Quint, Investing 

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