News and Impact - 29 Aug 2022 ·       Expect market to open o | CENTRE FOR RETAIL INVESTORS

News and Impact - 29 Aug 2022

·       Expect market to open on a weak note on account of sharp decline across the global market. Sentiment has been dampened after the US Federal Reserve Chair Jerome Powell's hawkish inflation speech at the Jackson Hole meeting. The Dow plummeted 1,008 points, or 3 while Nasdaq Composite dropped nearly 4% or 500 points on Friday. Asian markets slipped over 2% and SGX Nifty declined by 400 points or over 2%. US Dow Future fell by 300 points or 1%. US Fed Chairman signaled the Fed will likely keep raising interest rates and leave them elevated for a while to contain high inflation. His comments disappointed investors who had hoped inflation had peaked and the Fed would shift from raising rates to lowering them sometime next year. Expectation that the US Fed to hike more than 75bps interest rate in the next policy meeting and may continue till the inflation fell to reasonable level. US Dollar Index surged 20-year to 109 and 10-year bond spiked by 5bps to 3.10%. Traders caution apply in the market. However, domestic sentiment is positive due to above normal monsoon, impressive quarterly results and stable oil price. Short term traders buying opportunity at lower level on auto (Maruti, M&M), banks (SBI, HDFC Bank, ICICI Bank), FMCG (Hindustan Unilever), metal (Hindalco, Tata Steel), Trent, ABFRL.

·       Asian markets declined sharply following Fed Chairman Jerome Powell’s speech at Jackson Hole on Friday. He warned that rising interest rates will cause “some pain” to the U.S. economy, saying higher interest rates likely will persist “for some time.” Japan, South Korea, Taiwan and Australia Index declined over 2% each.

·       US Market plunged on Friday following hawkish comments from Federal Reserve Chairman Jerome Powell that the fight against stubborn inflation would continue, and be painful. Dow Jones fell more than 1000 points, or 3% and Nasdaq Composite declined nearly 500 points or 4%. Speaking Friday at Jackson Hole, Powell said the Fed is committed to taming inflation, which is at 40-year-highs. "While higher interest rates, slower growth and softer labor market conditions will bring down inflation.

·       European bourses closed sharply lower Friday after the US Federal Reserve Chair Jerome Powell said the central bank will remain focused on fighting inflation and warned of "sustained period" of lower growth. Both Germany and France Index slipped 2% each while the UK Index fell 1%.

·       Brent Crude surged 2% to above $101/bbl as investors balanced expectations of weaker demand with signs that the OPEC+ oil-producers group was considering cutting production at its next meeting

·       Gold slipped 1% to $1738/ounce after the US Federal Reserve Chair Jerome Powell warned against any idea that the US central bank would start loosening monetary policy soon.

·       Actionable -   HAL, Indian Hotel, Adani Ports, Poonwala

·       Brokers Radar – HSBC TGT on Power Grid at 200, Sun Pharma TGT by Macquarie at  1100, Tata Power TGT by HSBC at 195, , NTPC TGT by HSBC at 190, Cipla TGT by Macquarie at 1205, Lupin TGT by Macquaire at 790.  CITI TGT on Tech Mahindra at 1135, Wipro TGT at 385, TCC TGT at 3015 and Infosys TGT at 1725. Dr Reddy 4805, Macquaire  TGT on Aurobindo Pharma 475, IPCA Labs TGT at       785, Eris Lifescience TGT at 785

·       Corporate Action  - Ex-dividend – RSWM Limited Rs25, ION Exchange Rs10, Data Pattern Rs3.50, SIS Share Buy-Back, Kritika Wires stock splits from Rs10 to Rs2, India Glycols Rs7.50.

·       Event – Reliance AGM

·       Global Data –Dallas Fed Nat Activity Index (US). Consumer Confidence, Retail sales and Business Confidence (France)

·       Market Summary – Suzuki: Road to electrified vehicles will pass via hybridisation, UltraTech Cement commissions 1.3 MTPA at Dalla Cement Works, UP, Top Court Raises Iron Ore Mining Limit in Karnataka State, Adani Unit Says NDTV Deal Doesn’t Violate SEBI Restraint Order, SAIL expands adoption of HPE GreenLake, Diageo Halts Some Whiskey Sales in India to Force Price Hikes