Global and Domestic Market Overview
The Indian markets are set to open higher, influenced by strong global cues. Key indicators include a robust performance in the US markets, bolstered by the Federal Reserve Chairman’s positive remarks on inflation control, and a cooling off of US 10-year yields to 4.43%. However, crude oil prices remain elevated but stable, with Brent crude around $187 per barrel.
Key Developments and Stocks in Focus
HDFC Bank:
- FI Holding: Foreign institutional (FI) holding in HDFC Bank has dropped below 55%, creating a potential headroom for additional flows in the range of $3 to $4 billion.
- Market Impact: HDFC Bank is expected to support both Nifty and Nifty Bank indices due to the anticipated increase in MSCI weight and subsequent inflows.
Yes Bank:
- Q1 Update: Deposits rose by 21% year-on-year (YoY), while advances increased by 15% YoY. However, a slight decline in sequential terms was noted.
Mahindra & Mahindra Finance (M&M Finance):
- Operational Update: Disbursements for June increased by 2.8% YoY but fell by 1% month-on-month. Asset quality showed some deterioration, with Stage 3 assets at 3.6% and Stage 2 assets at 6.1%.
Avenue Supermarts:
- Revenue Growth: Standalone revenue for the first quarter rose by 18% YoY. The total number of stores reached 371 as of June 30.
Hindustan Zinc:
- Production Increase: The company reported a 2% increase in mined metal production and a 1% rise in refined zinc production.
Indian Energy Exchange (IEX):
- Business Update: Total electricity volume in June increased by 25% YoY, with significant improvements in green market and real-time market volumes.
KEC International:
- Order Wins: Secured new orders worth approximately ₹1,000 crore in the Transmission & Distribution (T&D) business.
Zee Entertainment:
- Leadership Change: Anurag Bhasin resigned as Chief Business Officer of Zee Music, with Umesh Buel taking over the role.
F&O Segment Insights
- HDFC Bank’s Performance: The stock is poised to hit a fresh 52-week high, driven by potential MSCI reweighting.
- FI Positioning: FIs maintain a net long position of 87%, indicating a positive outlook.
- Options Data: Active positions are seen at the 24,200 call and 23,800 put levels. Immediate resistance is expected around 24,350, with support at 24,000.
With strong global cues and significant domestic developments, particularly around HDFC Bank, the Indian markets are expected to open on a positive note. Investors should keep an eye on key stocks such as HDFC Bank, Yes Bank, M&M Finance, and Avenue Supermarts for potential movements throughout the trading session.
