Market-Report-August 24

       Global

• US markets show stability with positive closes; Nasdaq gains for 3rd day; Nvidia reports strong earnings, driving stock up 7%.

• European markets close higher; UK’s services PMI at 48.7, manufacturing PMI at 42.5.

• Oil prices dropped due to worries about a weak global economy and uncertain interest rates before Powell’s speech; Brent crude fell to $82.94 per barrel, WTI crude to $78.58 per barrel; Poor manufacturing data raises concerns about demand.

• India’s G20 Presidency focuses on global issues like debt resolution, climate change, and MDB reforms; highlights include expert groups for reforms, crypto regulations, UPI’s global influence, and positive member country reception.

• Jerome Powell, the Fed Chair, focuses on the neutral real rate of interest in monetary policy, influenced by Alan Greenspan’s patient approach. He’s likely to wait for evidence on inflation trends and economic impacts, employing a “wait one more meeting” strategy.

       India

• In the recent Banking Transformation Summit, Uday Kotak said Kotak Mahindra Bank is undergoing a tech-centered transformation. Also, he believes in Jio Financial Services’ growth while expressing confidence in India’s economy.

• GAIL India’s shares rise 1% as it plans Rs 30,000 crore capex for pipelines, petrochemicals, and hydrogen projects in the next three years.

• NHPC shares rise 2% to Rs 51.40 as it signs MoU with APGENCO for joint venture hydropower and renewable energy projects in Andhra Pradesh.

• July’s consumer price inflation surged to 7.44%, driven by higher food prices, impacting spending, companies’ revenues, and profits, leading to potential long-term structural measures by the government and businesses to mitigate inflation effects.

• Suzlon Energy reached a 52-week high at Rs 22.85 after winning a 31.5 MW wind power project order from Integrum Energy Infrastructure. The project aims to benefit 20,000 households, reduce 0.81 lakh tones of CO2 emissions annually and is set to commission in May 2024.

• Jefferies predicts that Indian IT firms’ margins might be impacted in FY24-25 due to elevated employee costs caused by mid-level attrition and remuneration pressures. This could limit margin expansion to around 67% of sales for covered IT firms.

• Jio Financial Services (JFS) shares continue to drop as passive funds sell them due to the anticipation of JFS’s exit from Nifty and Sensex indices. The exclusion date from the indices has been postponed to August 29 due to circuit hits in the initial days.

• FMCG companies’ advertising spending in FY23 rose compared to FY22, despite stable ad spending as a percentage of revenue. The increase was influenced by high raw material costs in H1 FY23, leading companies to focus on maintaining gross margins rather than extensive advertising.

• Sterling and Wilson Renewable Energy: Promoter Khurshed Yazdi Daruvala sold 20 lakh shares.

• Advanced Enzyme Technologies: Promoter Advanced Vital Enzymes sold 17,000 shares between.

• Shriram Properties: Omega TC Sabre Holdings sold 12.8 lakh shares (0.7%) at Rs 83.58 apiece.

• Atul Auto: Societe Generale bought 1.4 lakh shares (0.6%) at Rs 409.54 apiece.

• Gensol Engineering: Basant Traders – Prakash Satyanarayan Jalan bought one lakh shares (0.8%) at Rs 1,749.99 apiece.

• HULST BV is selling its entire 26.63% stake in Coforge through a block deal with a floor price.

• Coforge’s share price surged by over 9% as a block deal involving 1.54 crore shares took place.

• Max Financials’ share price increased by 2% due to a substantial block deal involving 3.6% stake.

• Manappuram Finance’s shares dipped over 2% as a block deal involving 11% of the company’s equity occurred.

• RBL Bank and Sapphire Foods were involved in block deals, but details were not provided

• Nvidia’s Q2 revenue reached $13.51 billion, surpassing expectations with a 101% YoY and 88% QoQ increase.

• Strong revenue forecast reflects sustained growth in generative AI technologies.

• Nvidia’s chips are driving the booming Generative AI sector.

• Impressive quarter driven by global transition to accelerated computing and generative AI.

• Positive Q3 outlook: Expected revenue of $16.00 billion, gross margins at 71.5% (GAAP) and 72.5% (non-GAAP) and estimated operating expenses.