MarketBuzz
1285: Marketbuzz Podcast with Hormaz Fatakia: HDFC Bank to determine Nifty moves today
Well, all eyes have been on HDFC Bank through the week, and it hasn't disappointed so far. The stock was the top contributor to the nifty upside on Tuesday, ensuring that the losses on the index were kept in check, and it has also managed to close above that mark of 1,700, which has been a resistance zone for a while now. And today's the day when HDFC Bank is most likely to take the spotlight as well. Now India's largest private lender released its shareholding pattern for the June quarter, which showed that foreign institutional holdings has declined below the mark of 55%, which was essential for the lender to get a weightage increase in the MSCI Emerging Markets Index. Now with that all set to happen, analysts believe that HDFC Bank might get inflows to the tune of $3-4 billion. And of course, HDFC Bank is the index heavy weight, so the moves here will be the deciding factor on how the Nifty and the Nifty Bank move into their session. Its US listed shares or the ADRs ended 4.5% higher overnight, and more details on this HDFC Bank coverage can be viewed on our website, cnbctv18.com. The Nifty Bank in particular will be in focus because the index has lost the 1000 points from the record highs of 53/180 that it had made last Thursday. Now the index was an underperformer yesterday, as despite the moves on HDFC Bank, the other banking constituents, whether it be ICICI, quota or access, all of them are some of the big losers and that dragged the index lower. And today, in particular, will be the one to watch out for on the Nifty Bank because it's the weekly options expiry as well. The Nifty though has remained in the range and remains above that mark of 24,000, which is now a key support level on the downside. Now the index made a new record high on Tuesday as well, near the 24/250 mark, but it could not sustain above those levels. So that becomes the first key level to watch for the Nifty and the movement as well considering the moves that are likely to be seen on HDFC Bank. And since we are on the subject of banks, Quotak Mahindra Bank issued a clarification to the exchanges yesterday, stating that K-India Opportunity Fund managed by Quotak Mahindra International, had received a show-cause notice from market regulator SEBI on the 26th of last month in the Adani Group case on the Hindenburg report. Now it said that the transactions were made by the fund on the advice and for the benefit of its investor, Kingdom. However, they also said that Kingdom never disclosed to them that they had any relationship with Hindenburg, nor that they were acting on the basis of any price-sensitive information. It further said that it denies any allegation of being aware of such a report or acting in collusion in any manner with Kingdom or Hindenburg and that it has extended full cooperation to SEBI and shared all the relevant facts and information. Now business updates continue to trickle in for companies as well and Avenue Supermarts or DMART saw provisional revenues for the quarter rise 18% from last year to cross 13,000 crore rupees. The R&T has 371 stores operating, of which one of them is temporarily shut for customers. Yes, banks saw advances and deposits grow on a year on your basis for the June quarter, but when you compare that number to the March quarter, they were mostly flat. IEX, Mahindra and Mahindra Finance, Hindustan Zinc are some of the other stocks that will react to their business updates that were reported last evening and more details on that are available on our website. KC International won orders worth over 1,000 crore rupees for its T&D and renewables business. Remember, it had just won a big order last week. Now, the YTD order intake has now crossed 5,000 crore rupees. The management had just spoken to us on Monday and they had mentioned that besides the current order book, it is currently L1 in projects worth over 8,000 crore rupees. So keep an eye out on KC International as well. Watch out for Zomato today. The stock is continuing to trade close to its record high. Now, the news here is that one of its arm has withdrawn the application made to the Reserve Bank of India to operate as an NBFC. So that will keep Zomato in focus. Now, a very interesting note has come up on REC and PFC. The PSUs, both of which are still struggling to recover the losses that they had made on the 4th of June, which was the Lok Sabha election results day. Now, that note comes from Bernstein who has initiated coverage on both of these stocks and has written that you may hate them, but REC and PFC are stocks that cannot be ignored. Bernstein's coverage comes with an outperform rating and a price target of 653 on REC and 620 on PFC, which implies a potential upside of at least 20% on both of these stocks. On to global markets, then the US markets continued to extend their record-breaking run with the S&P 500 closing above the mark of 5500 and the NASDAQ closing above the mark of 18,000. I am talking of the NASDAQ composite. Now, this despite Fed's Chair Jerome Powell saying that the Fed has made some progress in bringing inflation down, but it still does not have the confidence to start cutting interest rates. The gains on the NASDAQ were led by Tesla shares of which rose 10% after its deliveries for the quarter were better than feared, although momentum in them is still lacking. Today will be a truncated session on Wall Street and tomorrow is going to be a market holiday on account of Independence Day. Now, the Asian markets have also opened with gains and the gift NFT as we speak is indicating a gap upstart for our own markets, so most likely another record high is in store for the NFT. Now, outside of the market, some terrible news that has come in from Hathras in Uttar Pradesh where at least 116 people have been killed in a stampede that took place at a religious event that was organized there. Now, the event was organized in a Ratibhanpur village of the Sikandra Rao police station area. 18 people are said to be injured and Prime Minister Narendra Modi and Chief Minister Yogi Adityanath have announced compensation for the deceased and the injured. More updates on that are available on our website as well. And that's all for today. We wish you a wonderful trading day ahead and for the sharpest market and economic insights tune in to CNBC TV18 and CNBC TV18.com. [MUSIC]