Maruti Suzuki Stock Gains on Bullish Stance from Global Brokerages
Shares of Maruti Suzuki India gained 1.6 percent to Rs 10,460 per share in Friday’s intra-day to trade among top Sensex and Nifty 50 gainers in an otherwise weak market. The surge came after global brokerages Citi and Morgan Stanley maintained bullish stance on the counter.
Morgan Stanley remained ‘overweight’ on the counter, sharing a target price of Rs 11,963 apiece. Citi, on the other hand, shared a ‘buy’ call on the Maruti, raising target price to Rs 13,600 per share.
Both brokerages cited the company’s improving product mix, with a higher proportion of utility vehicles (UVs), as a key reason for their optimism. They also noted that Maruti Suzuki’s valuation appeared attractive, with a FY25 price-to-earnings (P/E) ratio of 23x, compared to the 10-year median 12-month forward P/E ratio of 25x.
In August 2023, Maruti Suzuki’s total domestic sales jumped 14 percent year-on-year (YoY) to 1.6 lakh units from 1.4 lakh units in the year-ago period. Sale of utility vehicles jumped 118 percent YoY in August 2023. Total export sales, too, increased 14.5 percent to 24,614 units in August 2023 from 21,481 in August 2022.
Overall, the bullish stance from global brokerages and the company’s strong sales performance in August 2023 are providing a boost to Maruti Suzuki stock.
- 22 Sep
Technical Analysis Report for Nifty and Three Buy Calls
The Nifty index has been on a strong uptrend in the past three weeks, but it has recently retraced some of those gains. It is now expected to oscillate within the 19,605 to 19,878 range over the next few sessions. Three stocks that look good for buying over the next 2-3 weeks are Havells India, KSB, and Gujarat Ambuja Exports. All three stocks have strong bullish momentum and are trading above their key moving averages.
- 22 Sep
PNB Gilts Hits Upper Circuit on Inclusion of Indian Bonds in JPMorgan Index
Shares of PNB Gilts hit upper circuit on September 22, 2023, following news that India's inclusion in JPMorgan's bond index is seen driving billions of dollars of inflows. The index provider will add Indian bonds to its widely-tracked emerging market index starting June 28, 2024. PNB Gilts is a primary dealer in government securities and other fixed-income instruments. The inclusion of Indian bonds in JPMorgan's index is expected to attract significant foreign inflows, which is likely to benefit PNB Gilts and other primary dealers in government securities.
- 22 Sep
Indian Bond Markets to Remain Stable in Near Term After JPMorgan Inclusion
Indian bond markets are expected to remain stable in the near term after JPMorgan's inclusion of India in its widely tracked emerging market debt index, according to BlackRock's head of Asia Pacific fixed income, Neeraj Seth. Seth expects inflows of around $20 billion to $25 billion into India after the maximum weight threshold is achieved on the GBI-EM index. Given the size of the global government bond market, this is relatively small and is unlikely to have a significant impact on volatility.
- 22 Sep
Indian market drops on September 22 despite inclusion of Indian bonds in JP Morgan index
Indian benchmark indices Sensex and Nifty fell for the fourth consecutive day on September 22, despite the inclusion of Indian bonds in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024. The market is expected to remain volatile in the near term, with key support at 19,600 for Nifty.
- 22 Sep
Indian Rupee Appreciates on JPMorgan Bond Index Inclusion
The Indian rupee appreciated against the US dollar on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment. The rupee settled 19 paise higher at 82.94 (provisional) against the previous close. Analysts expect India’s inclusion in the bond index will lead to a direct inflow of USD 20-25 billion in the debt over the 18-21 months. However, the impact of the announcement may not be sustainable amid a rally in the greenback and foreign fund outflows from domestic equities.