Market Bizzz

Most Asian stocks fell on Tuesday as investors awaited more information on central bank interest rate hikes. The US dollar and oil remained steady. The MSCI Asia-Pacific index was down 0.1%, Japan’s Nikkei share average fell 1.1%, and China’s mainland benchmark and Hong Kong’s Hang Seng Index both declined by 0.2%. Wall Street stocks and Treasury yields were slightly up on Monday’s shortened session. Economic data and uncertainty about the Federal Reserve’s policy path are being closely monitored.

Golden Cross is an important technical indicator of bullishness. It occurs when the short-term moving average crosses over the major long-term moving average on the upside.

After the recent 12% rally from the March 2023 lows, we can see some retracement/consolidation but the uptrend remains intact given the strong earnings growth trajectory.

Indian macroeconomic variables like inflation, growth and current account are quite stable, unlike some of the developed economies who are struggling to bring down inflation and facing challenges with respect to growth too.

The fund was launched in Sep’07 just as the markets were reaching manic highs. However, we exercised caution and refrained from fully deploying our capital, keeping a significant portion in cash. When the crisis struck, we were well prepared with only 20-25% of our fund deployed.

Sebi has penalised Cyquator Media Services, a promoter entity of ZEE Entertainment Enterprises Ltd (ZEEL), for certain disclosure lapses. A fine of Rs 4 lakh has been imposed on Cyquator for failing to make adequate disclosures regarding certain trades in shares of ZEEL.

Muthoot Microfin has refiled a draft red herring prospectus for an IPO of Rs 1,350 crore with SEBI. The IPO consists of a fresh issue of shares worth up to Rs 950 crore and an offer for sale by promoters and institutional investors worth up to Rs 400 crore. The microfinance firm aims to use the proceeds to augment its capital base and meet capital adequacy requirements. Muthoot Microfin is the fourth-largest microfinance company in India and the third-largest in South India. ICICI Securities, Axis Capital, JM Financial, and SBI Capital Markets are the book-running lead managers.

According to Rajesh Palviya of Axis Securities, the Nifty has been experiencing strong upward momentum and could potentially reach levels between 19,350 and 19,400 in the coming week. The underperforming sectors have started to contribute, and market breadth has significantly improved. The Bank Nifty is also nearing its target of 45,000. In the auto sector, Maruti is expected to continue its momentum and reach a target of Rs 10,000, while Hero Moto and Bajaj Auto are also looking attractive. L&T, TCS, and Jubilant Food are the stocks to watch in the upcoming week.

The merger of HDFC Investments and HDFC Holdings into HDFC is effective on Friday. Commercial papers of HDFC Ltd will be transferred to HDFC Bank from July 7. Shareholders of HDFC will receive 42 new HDFC Bank shares for every 25 shares held. The merger is expected to create the world’s fourth-largest lender with a market cap of $172 billion.