Today’s Market Outlook: A Flat Start, Eyeing Powell
The Indian market is anticipated to open on a relatively flat note, influenced by the upcoming speech from
US Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Overnight, US markets
experienced a decline of up to 1.5% following hawkish comments from US policymakers. The Federal
Reserve Bank of Kansas City President, Jeffrey Schmid, expressed a need for more data before
supporting interest rate cuts.
However, there are positive factors to consider. The US Dollar Index has reached a one-year low, and the
US 10-Year Treasury yield has remained stable. While the market is expected to be range-bound today,
individual stocks could continue to exhibit specific movements. There is a general expectation that
Powell’s commentary might lean dovish, given the recent decline in US Consumer Price Index (CPI) and
Wholesale Inflation.
Mid-cap and small-cap stocks are likely to be in focus today. Additionally, the US manufacturing sector’s
contraction at the fastest pace this year, due to weakness in production, orders, and factory employment,
could provide a positive sentiment. Furthermore, the increase in existing-home sales in the US for the first
time in five months is another favorable factor.
Asian markets Today – Asian equities faced early declines on Friday after markets adjusted
wagers on the pace of US interest-rate cuts ahead of Jerome Powell’s Jackson
Hole appearance.
Stock for Taiwan, Australia and Hong Kong dropped, while
Japan Index marginally gain.
US market Update – US. stocks ended lower on
Thursday, as investors readied for a speech by Federal Reserve Chair Jerome
Powell at the central bank’s annual Jackson Hole conference due Friday. The Dow
Jones Industrial fell by 177 points, or 0.43 percent and the Nasdaq Composite
Index shed 299.63 points, or 1.67 percent
European
Market Update –European stocks marginally advanced on optimism over future
interest-rate cuts ahead of a keenly anticipated speech from Federal Reserve
Chair Jerome Powell
IPO Update – Orient Tech IPO subscribed by 15time in Day -2
Corporate Action –– CDSL EX-Bonus 1:1, ABB India Rs10, A. K capital services Rs8, Godfrey
phillips india Rs56, Gujarat hotels Rs2.5, IRCTC Rs4, KFin Technologies Rs5.75, Kuantum papers Rs3,
LIC housing Rs9, Vedant Fashions Rs8.5, Mayur uniquoters Rs3 and buyback, Natco pharma Rs3, ONGC
rsS2.5, R.J.shah & co Rs2.5, Surya roshni Rs2.5, VENKY’S (INDIA) Rs7, The Yamuna Syndicate Rs400.
Global Data Today – US – US Fed chairman statement at Jackson Hole economic symposium and
New Home Sales data. Business Confidence and Manufacturing Confidence (France).
Market Summary – Hindalco To Invest $10 Billion In Indian Operations, Novelis Expansion: KM
Birla. Gail and Petron Sign Pact to Explore Bioethylene Plant in India. Adani Group looking to sell up to
5 percent stake in Adani Power, Ambuja Cements,.proceed to repay debt. Dabur India Signs MoU With
Tamil Nadu Government. Bajaj Auto receives approval for 13 vehicles under PLI scheme. Paytm
proposes revised remuneration structure for board members. HUDCO and YEIDA sign pact for long-term
financial assistance
Hindalco Industries – Company will invest $10 billion in its Indian operations and US-based
subsidiary Novelis, according to Kumar Mangalam Birla, chairperson of Aditya Birla Group. The funds
will be used for existing projects and new ventures, including expansions of aluminum and copper
smelters, a new alumina refinery in eastern India, and Novelis’ Bay Minnette project, Birla said during the
annual – long term positive
BEL – Company received orders worth Rs 695 crore. major orders comprise of Combat
Management System, Communication equipment, Stabilized Optronic Pedestal, Upgrades, Spares,
Services etc. – positive
Bajaj Auto – Company has received approval for all the 13 vehicles under production-linked
incentives (PLI). The company has received PLI approval for two- and three-wheelers. The company is
the only one to have received the nod for all products it had sought PLI incentives for, – media report –
positive
Paytm – Company has proposed a revamped remuneration structure for its Non-Executive
Independent Directors. The new framework, beginning April 1, 2024, decreases yearly remuneration to
₹48 lakh, with a fixed component of ₹20 lakh. The remainder will be flexible, depending on factors such
as meeting attendance and leadership responsibilities in the board’s several committees. – positive
Hudco – Company announced the signing of a Memorandum of Understanding (MoU) with the
Yamuna Motorway Industrial Development Authority (YEIDA), a government of Uttar Pradesh initiative-
Positive
LTTs – Company his collaboration will use Thales’ software monetisation platform, Thales Sentinel,
to provide innovative revenue models to LTTS customers. – positive
Focus on Adani Power, Ambuja Cement and Adani Enterprises – Promoters of Adani Group are
looking to sell 5 per cent stake in Adani Power and Ambuja Cements each, the report claimed. Promoters
may offload shares through Offer for Sale or Block Deals, aiming to sell shares worth Rs 15,000-20,000
crore across Adani Group companies., the report added. The proceeds are expected to be used to pay
down debt and reduce leverage through these stake sales. At the end of June quarter, held a 72.71% stake
in Adani Power and a 70.33% stake in Ambuja Cements
GAIL– Company has signed an initial agreement with US-based Petron Scientech to jointly explore
setting up a 5lakh -ton bioethylene plant – positive
Transformers and Rectifiers – Company secured export orders totaling $16.80 million from Linxon
Global Sweden and Arcelor Mittal Mexico.- positive
Dabur India – Company signs MoU with Tamil Nadu govt to set up manufacturing facility to set up
a Rs 400-crore manufacturing plant. The MoU outlines an approved Phase 1 investment of Rs 135 crore,
scaling up to Rs 400 crore over five years, Dabur India said – Positive
Paras Defense – Company to consider fund raising via share sales on August 27 board meeting –
Long term positive
Transport Corporation – The board of directors of the industry-specific logistics solutions company
will meet on Aug. 24 to consider a buyback of its equity shares – Positve
August PMI Data – Services PMI at 60.4 vs 60.3 in July, Manufacturing PMI at 57.9 vs 58.1 in July
and Composite PMI at 60.5 vs 60.7 in July- July PMI data reported flat against the previous month and
maintaining growth –
PVR – PVR Inox shares were sold on August 20 by the promoters, according to the exchange filing.
After offloading the stock, promoters now hold 59.61 lakh PVR Inox shares, or 6.07% stake in the
company as against 62.86 lakh equity shares, or 6.40% stake, held by them before.
Sicagen India – promoter AMI Holdings bought 39 lakh shares (0.98%) on Wednesday.- positive
Weizman – Company announced share buy-back up to 3.65 lakh shares or 2.5% equity at Rs160 a
share (CMP 135)
ICICI Prudential offloads Stake In TVS Motor – ICICI Prudential MF cuts stake in company by
2.01%. ICICI Prudential MF’s stake in company now stands at 7.23% – We are positive on TVS Motor
Escort – NCLT approves merger of Escorts Kubota India, Kubota Agriculture Machinery &
company- Positive
TVS Motor – The company launched TVS Jupiter 110, which is equipped with Nextgen lightweight
compact futuristic High-performance engine and iGO Assist- positive
Wonder Electricals – Company approved splitting each share into 10
Nucleus Software – Company approved share buy-back of 1.67% equity at Rs1615 a share. Record
date for determining eligibility on Sept. 3, 2024 and buyback through tender offer (CMP 1440)
Central Bank of India – Company forging a co-lending partnership with Piramal Capital & Housing
Finance for MSME LAP and home loans.
