Jun 20, 2024

Daily Market Check

The Sensex closed at 77,478.93, up 141.34 points or 0.18%, hitting a new record closing high. The Nifty ended at 23,567, up 51 points or 0.22%, also settling at a fresh peak.

Major updates:

Reliance Industries, ICICI Bank, and HDFC Bank led the rally on the back of robust buying by foreign investors.
The rupee depreciated 17 paise to settle at 83.61 against the US dollar amid surging crude oil prices.
ONGC’s board approved the appointment of Devendra Kumar as Chief Financial Officer with immediate effect.
PNB Housing Finance slipped 4% amid reports of a stake sale by Asia Opportunities Fund.
Brigade Enterprises entered into an agreement to develop the third tower of the World Trade Center in Kochi.
Mas Financial initiated a Rs 400 crore qualified institutional placement.
Best Agrolife obtained regulatory approval for its new insecticide formulation Nemagen.

Rupee vs Dollar

According to multiple sources, the Indian rupee traded in the range of 83.57 - 83.67 against the US dollar on June 20, 2024, depreciating to a new record low level amid a stronger US dollar and rising crude oil prices globally.

Top Gainers and Losers

Top Gainers:

Hindalco (up 2.11%)
Grasim (up 1.98%)
Reliance Industries (up 1.73%)
ICICI Bank (up 1.51%)
HDFC Bank (up 1.27%)

Top Losers:

PNB Housing Finance (down 4%)
Som Distilleries & Breweries (down 3.93%)
Ashok Leyland (down 2.5%)
Tata Power (down 2.32%)
Adani Enterprises (down 2.19%)

Global Indices

S&P 500: 5,487.03, up 0.25% Dow Jones: 35,472.88, up 0.15% NASDAQ: 17,862.23, up 0.03% FTSE 100: 8,191.29, up 0.60% Nikkei 225: 33,753.33, down 0.35% DAX: 18,131.97, up 0.35%

The S&P 500 closed at a fresh record high, with the Dow Jones and NASDAQ also ending higher. In Europe, the FTSE 100 and DAX advanced, but the Nikkei 225 in Japan finished modestly lower.

Sector Performance

Top Performing Sectors:

Financials: +1.51% (ICICI Bank, HDFC Bank led gains)
Energy: +1.73% (Reliance Industries was a top gainer)
Materials: +1.98% (Hindalco, Grasim were among top gainers)

Worst Performing Sectors:

Real Estate: -4% (PNB Housing Finance was the top loser, down 4%)
Consumer Discretionary: -2.19% (Adani Enterprises was a major loser, down 2.19%)

Consumer Confidence

The Conference Board Consumer Confidence Index rose to 102.0 in May 2024 from 97.5 in April, driven by a more positive assessment of current conditions. However, consumer expectations for the short-term future remained subdued, with the Expectations Index still in recessionary territory below 80.

Inflation

The annual inflation rate in the US slowed to 3.3% in May 2024, down from 3.4% in April 2024. The monthly inflation rate in May 2024 was 0.0%, compared to 0.3% in April 2024.

Federal Reserve

The Federal Reserve kept its benchmark interest rate unchanged at 5.25%-5.5% in its June 2024 meeting, but revised down its projections, now forecasting only one rate cut in 2024 instead of the three cuts projected earlier. Fed officials have signaled that interest rates are likely to remain higher for longer, with only gradual rate cuts expected in 2024 as the central bank takes a data-dependent approach to fight inflation.

Earnings Outlook

The search results did not provide expected revenue figures for Amazon and Tesla’s upcoming Q2 2024 reports. However, the next earnings report dates are July 17 for Tesla and around August 1 for Amazon.

Nvidia’s Market Cap

Nvidia has surpassed Microsoft to become the world’s most valuable public company by market capitalization, with a market cap of $3.335 trillion. The company’s shares have soared over 240% in the last year, driven by strong demand for its chips used in artificial intelligence, data centers, and gaming.

Target Corp (TGT) Analyst Recommendations

Analysts are overwhelmingly rating TGT as a Buy/Outperform, with the consensus 12-month price target indicating an expected upside of over 22% from current levels to around $174-175 per share.

References: