Asian markets are trading mixed as investors analyze the recent US inflation data, which came in slightly below estimates. Nikkei is showing a gain of 0.84%, while Hang Seng and Shanghai are both experiencing declines of 0.77% and 0.96%, respectively.

BSE: BSE delivered a soft quarter with a 5% QoQ revenue decline and lower margins due to an increase in investments. The revenue decline was due to a drop in listing revenue but was offset by higher transaction revenue (cash, Star MF). BSE has lost cash/currency market share but has gained ~3% market share in the derivative segment. The launch of a new derivative contract with a Friday expiry appears promising and is scaling new heights every week. BSE has signed up with top broker members for enabling trading in SENSEX derivatives, which can increase UCCs and boost volumes significantly. BSE has not realised any revenue from the derivative segment in Q1 but we expect it to be at least 2% of FY24E revenue. The steps taken by the new management are yielding results and is likely to boost growth for FY24E. The investments in technology, infra (co-location) and hiring of new mid-level managers have led to an increase in cost, but the margins will expand with growth. We expect a revenue CAGR of ~16% over FY23-26E, led by a revival in transaction revenue. We increase our EPS estimates by ~3/6% for FY24/25E and increase core multiple to 25x. We assign a SoTP-based TP of INR 940, based on 25x core June-25E PAT + CDSL stake + net cash ex SGF. The stock is trading at a core P/E of 33/26x FY24/25E. Maintain ADD. Birla Corporation: We maintain our BUY rating on Birla Corporation (BCORP), with an unchanged target price of INR 1,310/share (8.5x Mar-25E consolidated...

Coal India’s (CIL) Q1FY24 EPS of INR 12.9 was 24% and 21% ahead of our and consensus’ estimates, respectively. Key points: 1) FSA realisation was aided by higher supplies to non-regulated sector (NRS); 2) e-auction premium over FSA prices was 144%; and 3) provision of INR 8bn towards wage revision was recognised in Q1FY24.

Strong life insurance premium growth (20% YoY in Jul’23 for private players) and non life GDPI growth (14% YoY during the same month for private players) bode well for the sector. The volume performance increases confidence in life insurance demand being minimally impacted from removal of tax exemptions over the years.

Most Asian markets are trading lower as China's consumer price index fell in Jul'23, marking the first decline in 28 months. Hang Seng is down by 0.23%, while Shanghai is down by 0.26%. and Nikkei is trading lower by 0.42%.

Bajaj Consumer (BaCo), Emami and Jyothy Labs (JYL) – the trio – continue to trade at a considerable discount to Consumer Staples peers (all three companies (still) appear great value picks). These companies have gradually improved execution with: 1) focus toward distribution expansion, 2) improving performance in new-age channels, 3) diversifying their product portfolio (acquisitions, digital-first launches).

The total number of passengers carried by domestic airlines increased by 18.7% YoY in June to 124.9 lakh. Total departures by scheduled carriers also rose by 0.9% YoY to 82,304.

Asian markets are trading mixed as investors await the release of China's trade data in the day ahead. Hang Seng is experiencing a notable decline of 1.59%, while Shanghai is down by 0.52%. However, Nikkei is showing some resilience, trading higher by 0.22%.