Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.74%. It closed at 6.73% on Wednesday, according to data on Bloomberg.
Rupee Strengthens Against US Dollar
Rupee strengthened by 6 paise to open 83.66 against the US dollar. It closed at 83.60 on Wednesday, according to data on Bloomberg.
HSBC Runs Check At Ola Electric Service Centres
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HSBC does a reality check at Ola Electric service centres and finds most of them overwhelmed with service requests.
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Rating: Buy; Target Price Rs 140 which implied 34.6%. Most service centres are struggling to provide adequate service quality
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A huge backlog of service requests, almost 5-10 times the capacity Servicing capacity lagging compared to sales in the past two years
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Regular service requirements also piled up due to staff shortage
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Many issues are transitory, multiple initiatives afoot to improve the situation
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Availability of spare parts has improved, software issues with motor are largely fixed
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Ola Electric proactively engaged to fix service issues, targets servicing of 5-7 vehicles per day, per executive
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TP stays at Rs 140/share as an improvement in service quality is required before the critical launch of motorcycles
Nomura On HDFC Bank
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Maintain Neutral with target price of Rs 1,720 which implied a 3%
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Quotes NDTV Profit report on HDFC Bank selling down 60-70,000 crore of loans
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Sell-downs likely to accelerate LDR resolution but impact Loan to Deposit Ratio but affect EPS and ROE
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HDFC Banks sell-down could be ~30-35% of the securitisation loan market in FY25
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ROE improvement to be gradual and to come at cost of loan growth
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See limited upside with 2x June 26 Book Value
Top Picks: ICICI Bank, Kotak Bank, SBI, Federal Bank
Bernstein On PB Fintech
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Maintains outperform with a target price Rs 1,720 which implied neither upside and nor downside.
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PB Fintech is talking about backward integration with hospitals
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Founder seems convinced this is the way forward, and working towards this
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Stock is down 13% in the last two days
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Likely plan to provide hospital bed inventory to customers in the Delhi-NCR region
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If it works, PB could become (much) more dominant in the health insurance distribution market
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The company has $650 million on balance sheet to build this model
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Some may look at the backward integration as a meaningful shift from its capital-light business model
Stocks To Watch: IDFC First Bank, Infosys, Pharma Companies In Focus
Pharma Companies: India’s apex drug regulatory body, the Central Drugs Standard Control Organisation, has flagged 53 drug samples for failing to meet quality standards. Major pharmaceutical companies, including Sun Pharma Laboratories Ltd., Glenmark Pharmaceuticals Ltd., and Alkem Health Science Ltd., are implicated in this quality lapse, according to the CDSCO’s August report.
Oil and Natural Gas Corp's board approved Rs 10,501 crore investment in ONGC Petro additions. Vedanta's board will consider the fourth interim dividend on Oct. 8.
NCLT approved the merger of IDFC financial holdings with IDFC and the resulting entity's merger into IDFC First Bank. Hindustan Copper approved the sale of the Malanjkhand copper ore tailing plant in Madhya Pradesh.
Infosys is to establish Tech Hub for Sweden-based Polestar in Bengaluru. Uno Minda's arm is in a pact with Korea-based Hyundai Mobis to manufacture licensed products like speakers.
Stocks To Watch: Pharma Companies, Five-Star Business, ASK Automotive, ONGC, IDFC
Global Cues: Dollar Index Steady Ahead Of US GDP Data
The dollar index was trading steady in Asian trade as market participants await second estimate of the US GDP for April–June, jobless claims data, scheduled for release later today. These data will provide fresh cues about the Federal reserve's policy in near future.
In its September meeting, the US central bank said that they will monitor upcoming economic data before considering future path of the monetary policy.
The dollar index, which gauges the strength of the greenback against six major currencies, was trading 0.02% higher at 100.93, against Wednesday's close of 100.92.
The yield on the benchmark 10-year US treasury note declined in Asian trade before the release of a slew of economic data from the world's largest economy.
The benchmark yield rose Wednesday as much as 1.63% to 3.79% as investors received new supply of five-year notes from the auction, Bloomberg reported. It was trading 0.05% lower 3.78% as of 08:31 a.m.
Crude oil prices were trading largely steady on Thursday morning as supply outlook improved after the Libyan faction came to a "compromise" about the leadership of Organization of the Petroleum Exporting Countries' central bank, Bloomberg reported.
The November contract of brent crude on Intercontinental exchange was trading 0.18% higher at $73.59 a barrel as of 08:35 a.m.
Asian Markets Soars As Technology Stocks Rise
Markets in Asia-Pacific region surged on Thursday tracking gain in technology stocks, Bloomberg reported. The upward move in the share indices was influenced by after-hour rally in Micron Technology Inc., a Nasdaq 100 constituent, after it forecasted for a strong revenue, according to Bloomberg.
The KOSPI jumped over 2% over led by gains in technology and financial stocks, as reported by Dow Jones Newswires. The Nikkei 225 also gained over 2% as the yen remained relatively weaker against the dollar index.
The KOSPI and Nikkei 225 were trading 2.02% and 2.40% higher, respectively as of 8:15 a.m.
The CSI 300 is on path to post seven-day winning streak. The index was trading 0.98% higher as of 08:17 a.m.
The GIFT Nifty was trading above 26,000 in early hours of Thursday session. Market participants will monitor share prices of IDFC First Bank, Infosys Ltd., Oil and Natural Gas Corp., and Vedanta Ltd. because of the news flow.
The GIFT Nifty was trading 18.50 points or 0.07% higher at 26,048.50 as of 07:48 a.m.
The benchmarks will also take cues from gains in Asian shares and overnight movement in the US stocks.
"As far as levels are concerned, 26,200-26,250 is the next potent resilience for the benchmark index. On the lower end, 25,850-25,800 is likely to cushion any short-term blips with a series of support placed from 25,700-25,500 in positional view," said Osho Krishnan, a senior analyst, technical and Derivatives, Angel One.
The NSE Nifty 50 and BSE Sensex recovered from day's low in the last leg of the trade to end the Wednesday's at record close. HDFC Bank Ltd. and Axis Bank Ltd. added to the gains to the index. This is the fifth consecutive session the India's benchmarks recorded fresh highs.
The Nifty 50 ended 63.75 points or 0.25% higher at 26,004.15, and the Sensex ended 255.83 points or 0.30% higher at 85,169.87
The Nifty 50 ended at the highest closing level for fourth session in a row.
Sensex, Nifty Post Record Close In Last Hour Recovery, Axis Bank, HDFC Bank Lead: Market Wrap. Read more on Markets by NDTV Profit.