Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Nifty futures point to a positive start this morning after stocks last week posted their biggest gain since mid-May. Strength in other Asian markets and recent technical breakouts should further boost sentiment. The focus this week will be on HDB Financial’s listing and monthly automobile sales data.
Strong response for HDB IPO to spur Tata Capital
The strong demand for HDB Financial’s $1.5 billion initial public offering may nudge Tata Capital Ltd.’s decision-makers into fast-tracking their offering once regulatory approval comes through. The market response to the HDB IPO also signals an appetite for reasonably priced papers at a time when local stocks trade at a near-record valuation. That’s the other lesson for Tata Capital, which is poised to be the year’s largest IPO: leave something on the table for investors.
Near term challenges seen for cement stocks
Elara expects cement firms to face monsoon-related weakness, affecting demand and pricing. Also, continued capacity addition is expected to keep utilization levels within a range. However, demand could rebound this financial year, driven by improved execution of government initiatives for rural housing and irrigation, the analysts note.
Profitability of local non-ferrous companies can improve: JM
JM Financial analysts see steady crude derivatives, weaker caustic soda prices, and stable thermal coal costs aiding the profitability of domestic non-ferrous companies. In particular, aluminum prices are expected to be supported by the 45 metric tonnes per annum cap on Chinese aluminum capacity, higher European defense outlay, and lower LME inventory levels, they note. JM’s preferred picks are Hindalco and Nalco.
Three great reads from Bloomberg today:
The euphoria surrounding India’s $5.3 trillion equity market is cooling as earnings growth slows and the government cuts back on infrastructure investment. To make matters worse, improving sentiment toward Hong Kong-listed Chinese shares is threatening to lure global funds away and prolong the underperformance of Indian shares versus their Asian peers.
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This article was generated from an automated news agency feed without modifications to text.
