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.
North Asia ramps up stockpiling for winter to cut costly spot LNG buys
Key North Asian economies are stockpiling fuel, diversifying sources and conserving power to ensure adequate supplies for winter, as an unprecedented global energy crisis makes spot liquefied natural gas (LNG) purchases costly.
Major LNG importers – Japan, South Korea and China – have been grappling with soaring prices of the super-chilled fuel after Russia cut supplies to Europe following its invasion of Ukraine, leading to a surge in Asian spot prices as well.
Gold, Copper Slip as Powell Dashes Fed Pivot Hopes
Gold prices fell on Thursday, reversing recent gains as hawkish comments from Federal Reserve Chairman Jerome Powell dashed hopes that interest rate hikes will end soon, while copper prices were also hit by uncertainty over China withdrawing its zero-COVID policy.
The Fed hiked interest rates by an as-expected 75 basis points (bps), and said that it was “very premature” to consider pausing further rate hikes.
While Powell hinted that future rate hikes may be of a smaller magnitude, the central bank appears to be further away from the end of its tightening cycle than previously thought. Powell said that U.S. rates will likely end the cycle higher than previously expected.
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.