European Markets Updates
Devang Mehta, Head- Equity Advisory, Centrum Wealth on Sensex at 60,000:
Markets are just 3- 4 percent off their life time highs. I think, clearly the sentiment along with liquidity & macro plus micro fundamentals are supportive for a long term rally but yes it will have its share of speed breakers & volatility. Clearly the day when US inflation came in at 9.1 percent, a lot more than expectations, markets factored in an aggressive rate hike and moved forward. While inflation & interest rates can still come & haunt the economies & markets, but a confluence of factors including low valuations be it P/E, P/BV, Mcap to GDP, oversold markets, the fall in commodity prices etc helped markets to move northwards. Add to it, crude from130 to 93, is a huge tailwind for our own economy & hence markets. The return of Foreign institutional investors, credit growth in mid teens for the banking sector, decent monsoon, commentary on impending capex & above all the first quarter earnings season, which did not disappoint the street, were catalysts for this up move. With festive season in India for the next few months, revenge shopping, eating out & revenge travel, a lot of consumption oriented sectors would find favour t & with credit growth and capex coming back, BFSI would also be a beneficiary.
Market update at 2 PM: Sensex is up 332.77 points or 0.56% at 60174.98, and the Nifty up 97.10 points or 0.54% at 17922.40.
Singer up over 40% in 2 days after Jhunjhunwala’s RARE Investments picks up stake
RARE Investments, Rakesh Jhunjhunwala’s investment firm, has bought 4,250,000 shares of Singer India at Rs 53.50 apiece
Energy Prices Update:
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Sensex hits 60k level after 4 month period led by consumption related stocks & sectors. From the macro factors, crude oil prices helped our markets to revive from lower levels.
At one point Sensex was about to break the psychological level of 50k but the confidence in the domestic economy from the retail investors, domestic institutions and fund manager managers helped the markets to stay above it. The market is not far from crossing the levels all time highest levels.
India Ratings and Research (Ind-Ra) has upgraded IRB Infrastructure Developers Limited’s (IRB) Rating to ‘IND AA-’ from ‘IND A+’. The Outlook is Stable. IRB Infrastructure Developers was quoting at Rs 258.15, down Rs 0.60, or 0.23 percent on the BSE.
Geojit on Tata Chemicals
Tata Chemicals has been reporting solid performance consistently despite a challenging environment. We remain optimistic about continued soda ash demand across geographies, which will boost the topline.
The ongoing global soda ash shortage will further improve realisations through heightened pricing. The management expects the positive momentum to continue in the near to short term and aims to leverage digitalisation for further growth. Hence, we reiterate our BUY rating on the stock, with a revised target price of Rs 1,340 using a target multiple of 20x P/E on FY24E adj. EPS.
Tata Chemicals was quoting at Rs 1,118.55, down Rs 4.10, or 0.37 percent.
JUST IN | UK July CPI Inflation at 10.1% YoY against estimates of 9.8%
Asia gas prices surge to highest since war began on fuel crunch
The Asian benchmark spot LNG price jumped close to $60 per million British thermal units on Tuesday, the highest level since early March when Russia’s invasion of Ukraine upended energy markets.
Nifty PSU Bank index rose over 1 percent supported by the Bank of Baroda, Canara Bank, Indian Bank
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
The ferocity of this rally has proved wrong the majority of experts who believed that this is a bear market rally. It appears that the market may remain resilient. There is global support to this rally since Nasdaq and S&P 500 have rebounded by 24% and 18% from the June lows.
Nifty too has rebounded 18% from the June lows. The decline in inflation has increased the possibility of a soft landing for the US economy. In India, the decline in inflation, declining crude, strong growth momentum, good monsoon and above all FIIs turning consistent buyers have turned the sentiments in favour of the bulls. However, high valuation is a concern.