Stock Market Live Updates: Asian stocks under pressure amid China’s economic focus

Motilal Oswal Financial Services on Key August highlights:

MSCI India’s outperformance continues since Jan’22; other EMs remain weak;

Dollar index continues to remain strong amid worldwide volatility;

Global interest rates at multi-year highs; Fed rate at a two-decade high;

Mid and small caps outperform large caps; Media and Tech lead the gainers pack;

Market cap contributions of mid and small caps continue to expand from their CY20 lows;

FPI flows positive for six months in a row; DII flows strengthen;

Continued corrections in key commodity costs to benefit corporate margins.

Stocks to Watch: Hero MotoCorp approves ₹550 crore investment in Ather Energy’s rights issue

Hero MotoCorp: The automaker will invest Rs 550 crore in Ather Energy Private’s rights issue. The Splendor-maker, which currently holds 33.1% stake in Ather, will see its shareholding rise in the company. The transaction is expected to be completed before the end of September.

Stocks to Watch: Motilal Oswal Financial Services on Raymond: CMP: INR 1,974 TP: INR 2,600 (+32%) Buy

Raymond is an established apparel brand in India that resonates with consumers seeking premium apparel wear. However, despite its rich heritage, the brand’s market penetration has remained significantly underexplored.

Over the last two to three years, the company has revitalized its standing through strategic initiatives such as: a) strengthening the senior leadership team across various management tiers; b) committing to technological advancements and instilling financial prudence with a healthy 21% reduction in Net Working Capital (NWC) over FY19-23 and turning net cash from peak net debt of INR16b; c) undertaking a comprehensive restructuring of the group’s structure by divesting the FMCG business and announcing the demerger of lifestyle business and real estate; and d) leveraging the brand and scale in each category to drive the quality of growth.

– These efforts are likely to be the key growth drivers going forward. We expect consolidated revenue/PAT growth of 10%/19% over FY23-25

Sectoral Watch: Channel partners report stable 2W and PV/CV retail, tractor sales dip; positive trends in Royal Enfield and EVs

Our interaction with leading channel partners reveals stable to mid/high-single positive retails for 2W, PV/CV and 8-10% MoM decline in tractor retails. In 2W segment, demand trends show no major change, but for growing inquiries at Royal Enfield (10-15% MoM), a positive rub-off from its competitive launches in the premium segment. EV 2Ws saw a sustained pick-up MoM, likely to grow 6-8% MoM, and normalcy expected over 2-3 months. PVs had a good start to Onam; channel partners from South expect 15-20% YoY and mid-single digit growth vis-à-vis peak volumes of FY17/18 (festive to festive). CV retails would likely show a double-digit MoM growth despite a lean month, thanks to a low base. Tractors retails would likely decline MoM due to seasonal factors; Aug’23 have not seen any material farm subsidy-related announcement. — Yes Securities

IPO Watch: Jupiter Life Line IPO will be open between 6-8 Sept.

IPO Watch: EMS Limited IPO will be open between 8-12 Sept.

IPO Watch: Ratnaveer Precision IPO subscribed 5.77 times so far

Ratnaveer Precision IPO has been subscribed 5.77 times so far. Retail investors have subscribed 7.65 times. It is open till 6 Sept.

Stocks to Watch: NLC plans to invest ₹82,174 crore for mining and power generation capacity expansion by 2030

Lignite and power major NLC India Ltd has formulated its Corporate Plan 2030, under which it has proposed a massive capex of ₹82,174 crore for enhancing mining, power generation, and diversification businesses.

BL Interview. UPI and digital trends shaping the future of credit card industry, says Parag Rao of HDFC Bank

The credit card industry is adapting to UPI integration and evolving customer preferences. Regulatory scrutiny has increased as the sector experiences substantial growth and innovation, emphasizing responsible lending practices

Commodities Market: Lead futures: Traders can buy the contract now

Lead futures (continuous contract) on the Multi Commodity Exchange (MCX) moved out of a range on the upside and triggered an upward trend. The September futures of lead broke out of the ₹184-187 range as it closed at ₹188.8 on Friday.

Technical Analysis: Nifty 50, Dow Jones, Smallcap and Midcap indices – How ratio analysis can be an useful tool in identifying investment opportunities

Do you want to know whether Indian equities (Nifty 50) will outperform the US (Dow Jones Industrial Average), going forward? Are you wondering whether a sector will continue to outperform the market or if its fortunes will change? Ratio charts, a tool in technical analysis, can give you the answer.

Stocks to Watch: M&M in advanced talks with Volkwagen for electric components for EVs

Mahindra & Mahindra (M&M) is in advanced talks with Volkswagen on the use of key electric components of the German automaker’s open platform for electric vehicles, called MEB.

Stocks to Watch: Cipla to acquire South Africa’s Actor Holdings and strenghten OTC presence

Drugmaker Cipla is set to acquire South Africa’s Actor Holdings (Pty) Ltd for $48.6 million (about ₹402 crore), strengthening its over-the-counter (OTC) products portfolio.

Stocks to Watch: Havells India evaluating refrigerator manufacturing

Havells India is exploring options to set up a new facility to manufacture refrigerators. This is part of the company’s broader plan to make brand Lloyd a complete consumer durables brand. The company already makes air-conditioners and washing machines in Rajasthan.

Technical Analysis: Day trading guide for Sep 5, 2023: Intraday supports, resistances for Nifty50 stocks

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

Stock to buy today: Torrent Power (₹705.25)

The short-term outlook for Torrent Power is bullish. The stock has begun the week on a strong note by surging about 6 per cent and the stock well above the ₹680-690 resistance zone. It signals the beginning of a fresh leg of upmove within the broader uptrend.

Stock Market Live Updates: Asian stocks under pressure amid China’s economic focus

Asian stocks faced downward pressure as investors refocused on China’s efforts to address its economic challenges. Japanese equities showed limited movement on Tuesday, with traders seeking new cues after a US market holiday. The Nikkei 225 index declined by 0.37% (121.23 points) to 32,812.17, while the broader Topix index dropped 0.48% (11.29 points) to 2,362.56. In South Korea, stocks opened lower due to unexpectedly rapid inflation in August, driven by higher energy prices, potentially prompting the central bank to consider further tightening policies. The KOSPI Composite Index is down 5.07 points at 2,579.96. – Agencies