M&M Financial Services partners with BigHaat to offer health & motor insurance
European markets updates
Tapan Patel, Senior Analyst (Commodities), HDFC Securities:
Crude oil prices traded lower with benchmark NYMEX WTI crude oil prices fell by 4.58% near $104.56 per barrel. Crude oil prices plunged amid a push by US President Joe Biden to bring down soaring fuel costs, including pressure on major US firms to help ease the pain for drivers during the country’s peak summer demand. US President Joe Biden is expected on Wednesday to call for temporarily suspending the 18.4-cents a gallon federal tax on gasoline, a source briefed on the plan told Reuters.
We expect crude oil prices to trade lower with resistance at $108 per barrel with support at $102 per barrel. MCX Crude oil July contract has important support at Rs 8010 and resistance at Rs 8350 per barrel.
Market update at 2 PM: Sensex is down 708.57 points or 1.35% at 51823.50, and the Nifty shed 231 points or 1.48% at 15407.80.
BofA Securities remain cautious on Indian market; Nifty target at 14,500
We are cautious on markets despite the recent market correction. In addition to globally tightening monetary conditions and a slowing economic outlook, including fears of a recession in the US, we see other risks: (1) likely earnings cut for Nifty in 2Q/3Q FY23 as effects of cheaper inventory buffers fade; (2) headwinds from higher crude likely sustaining; (3) Nifty valuation, though corrected, still appears vulnerable close to its 10yr average.
We maintain a cautious stance with defensive sectoral skew & a revised year-end Nifty target of 14.5k. Potential clarity on macro & monetary policy outlook in the US/India could lead markets to bottom by Aug/Sept 2022.
Punit Patni, Equity Research Analyst, Swastika Investmart:
LIC stock price has seen an extremely disappointing trend post listing falling almost 30% from its IPO price. The current correction has priced in the concerns with the company like low VNB margins, losing market share to private players, high reliance on agency channels, etc.
Further, the valuation of 0.8 Price to Embedded Value discounts any volatility or reduction in embedded value due to stock market correction.
We believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential.
LIC has several competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. In short, these levels are the best to accumulate this stock for the long term.
CRISIL reaffirms long term credit rating on Generic EngineeringCRISIL has reaffirmed its long term credit rating on Generic Engineering Construction and Projects’ bank loan facilities as BBB with stable outlook and short term rating as A3+.
Nearly 100 stocks touched 52-week low on the BSE. These included JK Cement, Axis Bank, JSPL, SPICEJET, Shalby, IDFC First Bank. Click here to get a complete list of stocks that have touched their 52-week lows during the day
Today’s Stock Market Action
Bears rule 2022 but in some nooks of Dalal Street bulls are rejoicing like it’s 2021
In some corners of Dalal Street, it’s raining multi-bagger stocks like it’s 2021 as the euphoric sentiments of the last year appear not to have dimmed to any extent.
BSE Capital Goods index shed 1 percent dragged by the Suzlon Energy, Sona BLW Precision Forgings, Elgi Equipments
Bond Yields Updates
