News & Impact
Focus Today – (Trend positive – Gift Nifty is up 120 points or 0.5%. US Index Future trades flat to positive. US Stocks Rise 0.2%.) US Index gained 5% last week on hope of deeper rate cut by the US Fed. Market will be focus on US Fed minutes meeting and Jackson Hole Economic Symposium next week by the US Fed speech. ADR/GDR – AB Capital up 7%. M&M, Wipro, Tata Steel, Axis Bank, ICICI Bank gained between 1-2%. Ambuja Cement up 3.5%. Hindustan Zinc OFS non-retail segment, govt cut windfall tax. Positive on gold finance stocks after gold finance stocks to record high.
Today’s Market Outlook – The domestic equity market is expected to open on a strong note, driven by a global market rally amid hopes of a significant interest rate cut by the U.S. Federal Reserve in September. Global sentiment has improved due to several positive developments: U.S. July inflation dropped to a three-year low below 3%, the Producer Price Index (PPI) indicated cooling inflation, and both retail sales and jobless claims exceeded expectations. Additionally, disappointing U.S. housing market data has further increased expectations for a more substantial Fed rate cut, with some now anticipating a 50-basis point reduction in September, compared to the earlier expectation of 25 basis points. Gift Nifty is up 120 points, or 0.5%. On previous day, Nifty gained over 1% led by IT, auto and pharma stocks. Last week, the Indian market gained less than 1%, while the U.S. market surged by 5% and Japan’s index rose by 9%. This week is crucial for the market, with key events including the U.S. Federal Open Market Committee (FOMC) meeting minutes on Wednesday and Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday, both of which will be closely watched for indications on future interest rate policy. Nasdaq Composite close above 50-DMA and biggest gained this year. Moreover, US Vix (Volatility Index) declined by 25% to close at 15 level against the previous week close while two week before touched record high of 65 level
Domestic market outlook –On the domestic front, falling oil prices below $80 per barrel, strong quarterly corporate earnings, and robust retail participation are expected to bolster market sentiment. The momentum is likely to continue for exchange-related stocks like CDSL, BSE, MCX, and CAMS, especially with CDSL closing at a record high. The expectation of a Fed rate cut and the rally in the global IT index, Nasdaq Composite, could positively impact IT stocks such as TCS, Cyient, Infosys, and Mphasis. Defense stocks are also looking attractive after impressive quarterly results from HAL, BEL, and Mazagon Dock. Additionally, gold finance stocks may benefit as gold prices surge to record highs, and oil marketing stocks could see gains following the government’s reduction of the windfall tax from Rs 4,600 per ton to Rs 2,100 per ton.
US Market Update Overnight –US market gained quarter percent on Friday after encouraging inflation reports and strong macro data boosted bets for a September interest-rate cut and helped ease recession concerns. US market biggest weekly percentage gains by 5% this year, as worries of an economic downturn eased and investors focused on the Jackson Hole Economic Symposium next week by the US Fed speech. Disappointing reading on the US housing market reinforced expectations of fast and deeper cuts by the US central bank next month.
Asian Market Today – Asian stocks broadly strengthened on Monday ahead of key central bank decisions in the region this week and the annual meeting at Jackson Hole. Taiwan Index gained 2% while Japan Index is trading flat after 9% gained previous week.
European Market Overnight – European stocks ended on a mixed bag on Friday following disappointing US housing market data, but remain on course for their biggest weekly advance in three
months. UK Index declined by 0.5% despite reported better than expected retail sales. However, France and Germany Index soared up to 0.5%. However, European market gained over 2% against the previous week close.
Gold – Gold rose nearly 2% to an all-time high to above $2500/ounce, bolstered by hopes that the US Federal Reserve is edging closer to cutting interest rates. Disappointing reading on the US housing market reinforced expectations of fast and deeper cuts by the US central bank
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Brent Crude – Brent Crude oil futures fell 2% to $79/bbl on Friday as persistent concerns about the demand outlook in China and easing geopolitical risk.
Nifty Technical Levels –.Nifty The index broke out of its range from the last 8 trading sessions and is holding well above its 50 EMA and 20 EMA. It formed a bullish candle on weekly as well as daily frame and negates its sequence of lower highs – lower lows of last three trading sessions. Now it has to continue to hold above 24400 zones for a bounce towards 24700 then 24900 levels while support is seen at 24400 then 24200 zones.
Bank Nifty Technical Levels –Bank Nifty formed a Morning star pattern on daily scale which is a bullish reversal price pattern and ended with gains of 790 points near 50500 zones. On weekly scale it formed a small bodied candle with long lower shadow which indicates buying is visible at lower zones. Now it has to continue to hold above 50250 zones for a bounce towards 50850 then 51000 levels while support is seen at 50250 then 50000 zones
Previous Day Market Summary –The equity benchmark Sensex surged over 1,300 points, and the Nifty jumped nearly 400 points, closing at a more than two-week high, driven by gains in IT, pharma, and auto stocks. This rally was fueled by positive sentiment following a global market surge. The cooling U.S. July inflation data, better-than-expected retail sales, and a decline in weekly jobless claims had a positive impact on the markets. Investors are optimistic that the U.S. Federal Reserve will cut interest rates next month due to falling inflation and solid economic data. As a result, Japan’s market surged nearly 4% today, while U.S. markets have climbed 5% over the last three trading sessions. The Sensex soared by 1,330 points, or 1.70%, to close at 80,436, marking its best single-day gain in over two months. The Nifty rose by 397 points, or 1.65%, to close at a two-week high of 24,541. IT stocks were the biggest gainers, with the Nifty IT Index jumping 3% today after the Nasdaq Composite, a major global IT index, soared by 5% on hopes of a Fed rate cut. Both FIIs and DIIs were net buyers Rs767cr and 2610cr respectively
Actionable BUY – Mphasis, AB Capital, BSE Ltd. Swan Energy, BEL, Paytm, IREDA, NBCC, Signature Global, CDSL, Zomato and Ircon International,
Events Today – Hindustan Zinc OFS for Retail segment while HNI subscribed 1.37 times
IPO Update – 850-900 a share
Corporate Action –– Reliance Industries Rs10, Chaman Lal Setia Exports Buyback, Dr. agarwals eye hospital Rs2.5,
Brokers Radar –Shriram Finance TGT by HSBC at 3600. Voltas – TGT by Jefferies at 1770 and Goldman Sachs TGT at 1310. JP Morgan TGT on Persistent System 5300 and Cyient TGT at 2100
Global Data Today – US – Retail sales in Auto. UK – House Price Index. Japan Core Machine orders.
Market Summary – Adani in talks to buy Reliance Power’s 600 MW thermal plant. IPCA Lab launches Diulcus to address Diabetic Foot Ulcer (DFU) in India. July exports up 2.81% driven by electronics and pharma as trade deficit widens. SBI hikes lending rate by 10 bps across tenors. Swan Energy to divest LNG terminal for $399 million. A Rs 7,000 crore aim: Army guns for new-age artillery … L&T, Tata and Bharat Forge will be top bidders. Brigade Enterprises Launches New Hotel in Mysuru, India with Accor
L&T, Tata and Bharat Forge Focus – The estimated Rs 7,000 crore acquisition of new Towed Gun Systems is seeing keen interest from the private defence manufacturing sector that has invested heavily in the past few years to develop artillery systems. Both L&T and Bharat Forge are prominent among the top bidders. – positive
Genus Power – Company to installed 37.5 lakh smart pre-paid meters – positive
Brigade Enterprises – Company launched a new 130-room hotel in Mysuru, India in partnership with hospitality firm Accor. ibis Styles is the fourth hotel under the companies’ partnership and their second in Mysuru – positive
Adani Power– Company has begun talks to acquire the 600 MW Butibori thermal power project in Nagpur once owned by Anil Ambani’s bankrupt Reliance Power. A deal is likely in the range of ₹2,400-3,000 crore, translating to ₹4-5 crore per MW
Ipca Labs– Company launches drug Diulcus to treat diabetic foot ulcers. Diulcus gel tube to be launched both in Indian and overseas. Diulcus recieved approval from Drug Standard Control Organisation. Developed in partnership with NovaLead Pharma. – positive
Positive for oil marketing companies – The central government has reduced the windfall tax on petroleum crude to Rs 2,100 per metric tonne, down from Rs 4,600 per tonne – expect positive for HPCL, BPCL, IOC
JIO Financials – Company incorporates Jio Financial platform to distribute financial products – positive
Jubilant Pharmova: The company’s unit, Jubilant Biosys, will add drug discovery and preclinical development capabilities. Capabilities to be added via a new company incorporated in France, which will acquire Pierre Fabre’s R&D Centre in the country. The company is to invest up to €14.4 million over seven years, including €4.4 million for an 80% stake in the new company. – positive
DCX Systems: The company gets Rs 107 crore orders from domestic and overseas customers. – positive
KPI Green Energy: The company raised Rs 100 crore via QIP and allotted 1.06 crore shares to QIBs at Rs 935 per share. – positive
Techno Electric & Engineering Company: The company partnered with IndiGrid to develop greenfield transmission projects.- positive
URJA Global: The company announced the pre-launch of its new high-speed electric scooter, CHETNA. – positive
Bata India: Anil Somani resigned as CFO effective Sept. 5. – Company announced poor Q1 results
Mphasis: Aravind Viswanathan to replace Manish Dugar as CFO, effective immediately. – positive
Samvardhana Motherson International: The company incorporated a new unit in Abu Dhabi for auto component manufacturing. – positive
Aurobindo Pharma – Company has received a warning letter from the US FDA for unit III of the formulation manufacturing facility of the company’s wholly-owned subsidiary Eugia Pharma Specialities – Any sharp decline will be long term buying opportunity
Tamilnad Mercantile Bank: The RBI approved the appointment of Salee Sukumaran Nair as MD and CEO for three years.- positive
July exports up 2.81% driven by electronics and pharma as trade deficit widens – Exports showed moderate growth in July 2024, rising by 2.81% y/y to $62.42bn. The increase was largely driven by a surge in shipments of electronic goods and pharmaceuticals. Electronic goods exports rose by 37.31% y/y, reaching $2.81bn while pharmaceutical exports climbed 8.36% to $2.31bn. – Expect positive for pharma stocks – Lupin, Sun Pharma, Glenmark Pharma, Aurobindo Pharma
Brigade Enterprises – Company will open abCofee outlets at six of its commercial office spaces in Bengaluru, as part of a new partnership between the two companies. – positive
Strides Pharma – Company ceased operation of an US unit from last Tuesday. Strides Pharma, as a part of its optimization exercises, dissolved Altima Innovations Inc., a step down wholly owned subsidiary of the company- positive
SBI – Company has raised the Marginal Cost of Funds-based Lending Rate (MCLR) by 10 basis points (0.1 percentage point), across tenors – positive – it will be improve Net Interest Margin
Intellect Design – Company has opened a new Global Partnership Office in Bengaluru, India to help drive the growth of its financial technology unit eMACH.ai led Global Alliances Intellect Design Arena – Long term positive
Swan Energy – Company plans to sell its part in a floating liquefied natural gas (LNG) terminal to Turkey’s state-run Botas for $399 million. Company reported the transaction in a stock exchange filing, stating that it expects to close the sale within the next six months, subject to shareholder and regulatory approval.- positive
Techno Electric – Company partners with IndiGrid for developing greenfield transmission projects- positive
Ambuja Cement – completes 100% acquisition of Penna Cement Industries. Penna Cement Industries becomes wholly-owned subsidiary of company – Long term positive
Glenmark Life Sciences – Company said the closure notice by the Gujarat Pollution Control Board for its Ankleshwar, India facility has now been revoked it is now in the process of restarting operations at the unit – positive
Ashapuri Gold (BSE Liste)– Company securing an order worth ₹105 crores from several jewellers, including Malabar Gold, Kalyan Jewellers amongst others to supply antique gold jewellery. – positive
