70 pts lower; IT, Consumer Durable drag; PSU Bank shines.
Most markets ended in red on Thursday after Fed Chair Jerome Powell hinted the Fed would raise interest rates more in the future. Korea, Mainland China and Hong Kong closed lower today, while the European market also traded in red in the morning session.
Analysis-Energy market turmoil shakes Europe’s green power plan
Europe’s plan to roughly double renewable power generation by the end of the decade to cut its emissions and reliance on imported Russian fuel is under threat from market turbulence that has shaken the economics of the shift to low carbon energy.
Russia’s war on Ukraine and the disruption of the gas supplies on which Europe had relied has injected urgency into the European Union’s move toward carbon-free energy.
It is negotiating a legally-binding target to generate 45% of energy from renewable sources by 2030, up from the existing target of 32% and renewable capacity of roughly 22% in 2021.
Oil Falls on Weak Chinese Data, Hawkish Fed Also Weighs
Oil prices retreated from a three-week high on Thursday after weak economic data from China pointed to more trouble in the world’s largest crude importer, while the outlook for demand was also dimmed by the prospect of higher U.S. interest rates.
A private survey showed that China’s massive services sector shrank for a second straight month in October, heralding more economic weakness for the country as it struggles with containing new COVID outbreaks.
Speculation over a possible easing of COVID curbs had somewhat brightened sentiment towards China this week. But lack of official word on the matter swiftly reversed this.
IMPORTANT DATA AND EVENTS Thursday, November 3, 2022 FOMC Press Conference(USD) Interest Rate Decision(INR) Initial Jobless Claims(USD) ISM Non-Manufacturing PMI (Oct)(USD)
Oil prices retreated from a three-week high on Thursday after weak economic data from China pointed to more trouble in the world’s largest crude importer, while the outlook for demand was also dimmed by the prospect of higher U.S. interest rates.
Indices recover with Nifty above 18,000; all eyes on RBI policy outcome
We expect strong growth in advances and deposits, driven by the retail segment. Pick-up in economic activities, ongoing festive/ wedding season, improving asset quality, and strong collection efficiency auger well for the company’s performance in future.
Owing to recent corrections, the stock is now trading at attractive valuations, close to its 52-week low share price. Hence, we upgrade our rating on the stock to BUY with a revised target price of Rs 282 based on 1.8x FY24E BVPS.