Markets surged on back of highly dovish stance by US Fed that helped Nifty to surge beyond 1% while Nifty service sector which has mainly technology and financial stocks rallied by more than 1.5%. At present, the expectations have been priced in of a 160-bps rate cut in 2024 which has led to US Dollar weakening against developed currencies and put a unwinding risk from carry trade. The spike in Japanese Yen, Euro and GBP against rupee may pose major risk of portfolio unwinding in the near term if current momentum in Rupee depreciation continues. For the Indian markets, Sensex has already surpassed weekly resistance line at 70,400 but it would be important to watch whether weekly closing occurs above these levels or market triggers profit booking. Based on rupee weakness against Euro, Yen and GBP the reversal levels in Nifty futures have moved higher 20,873 and should be seen as early warning signal before we see portfolio-based selling from FIIs.
Sensex 30 Chart
Stocks to watch
Positive Read through
- Hero Moto – To up stake in Ather Energy by 3 pct to 39.7 pct with Rs. 1400 mn investment.
- PVR Inox – Plenty Pvt Group & Multiples may sell 2.33 pct via block deals.
- Shriram Fin – Reports of company reviving stake sale plans in housing fin business.
- M&M Fin – To foray into Life, Health & General Insurance.
- BHEL – Signs MoU with CMTI for Hydrogen Value Chain Development.
- Exide Ind – Invests Rs. 1,000 mn in unit Exide Energy Solutions.
- Texmaco Rail – Gets work order worth Rs. 13,744 mn from Ministry of Railways.
- Sterling & Wilson – Got settlement amount of Rs.2,542 mn from Jinko Solar.
- Genus Power – Gets letter of award worth Rs. 10,260 mn for advanced Metering Infra.
- Ami Organics – Signs another definitive agreement with Fermion.
- Jupiter Wagons – Gets worth Rs 16,170 mn from Ministry of Railways.
- Zydus Lifesciences – Gets U.S. FDA nod for generic cancer treatment capsules.
Negative Read through
- Kfin tech – General Atlantic may sell up to 10 pct stake via block deal.
- PB Fintech – I-T officials visited Paisabazzar and enquired about certain vendors of the company.
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