Markets reacted positively on Wednesday after the Bank of Japan decided to keep its yield curve control policy unchanged which forced a sudden spike in USDJPY to 131.5. However, the effect was later neutralized with prices closing below 129 in late night hours of trade. Such wild swings have activated a major breakdown in Dow Jones Index in JPY terms which were trading near the borderline and may trigger a 22% downside in the near term.
In Indian markets, volumes were missing in the recent up move as retail and HNI daily turnover has been trading below Rs 20000 crore. For MSCI India, it was a re-test of the breakdown line after yesterday’s up move with pennant formation and the next leg of a down move should ideally trigger added volatility. We expect selling pressure in Nifty to aggravate below 18130 on the back of strong JPY and high base metal prices.
Earnings Today- Results today- HUL, Asian Paints, AU Small Finance Bank, Can Fin Homes, LnT Technology Services, Happiest Minds, Havells India, Hindustan Zinc, PVR.
MSCI India Net USD & Dow Jones in JPY terms
Stocks to watch
Positive Read through
- IndusInd Bank- NIM at 10-qtr high of 4.27 pct, NII, and PAT above estimates.
- Coal India- Coal Ministry targets one billion tonne production in FY24.
- Dr. Reddys- cuts the price of cardiac drug Cidmus having a market share of 32 pct.
- Persistent- Revenue growth at the upper end of 3-3.5 pct estimates, margin up 78 bps QoQ.
- Oracle Fin- Net profit up 10 pct YoY at Rs 437.3 cr, Revenue rises 5.3 pct.
- Aurobindo – USFDA issues 2 observations for Units 1 and 2 of APL Health.
- Vedanta- successful bidder for Meenakshi Energy, bid value at Rs 1440 cr.
- Goa Carbon- Profit and revenue rise YoY, EBIDTA at Rs 44.9 cr vs Rs 19.8 cr YoY.
- Mahindra Life- bags redevelopment project in Mumbai with revenue potential of Rs 500 cr.
Negative Read through
- Adani Enterprise- FPO price band at Rs 3112-3276 a sh, 9-14 pct discount to CMP.
- Rallis India- EBIDTA down 21 pct, margin contracts, profit slumps 43 pct YoY.
- Alok Inds- net loss expands to Rs 250 cr, EBIDTA loss at Rs 42.4 cr.
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