Indian market indexes are set to open higher on Thursday with investors encouraged by sign of the resilient US economy despite Federal Reserve's policy tightening & lower Brent crude prices. Technology stocks have led the gains since Nov 14, when soft US inflation data elevated doubts that interest rate will be increased further. Foreign and domestic institutional investors also continue to buy.
Open FlipIndia has seen tremendous investment interest this year from foreign sources, despite pulling money out of most other developing economies. India is seeing strong economic growth in the 6%-plus range, despite wide USD and US interest rate increases. This wealth has been concentrated across just 200,000 families, though the urban rich are clearly visible in their spending.
Open FlipIndian primary markets witness rush of investors buying into IPOs; RBI flags risk of loan contagion between banks, NBFCs; Adani Group seeks multiple buyers for entire stake in edible oil maker joint venture; Apple exports over $5 billion worth of iPhones from India; IndiGo to challenge Rs 1666 cr tax demand; AU Small Finance Bank to raise $100m from IFC; creditors withdrawing insolvency.
Open FlipOPEC+ postponed its ministerial meeting, leading to speculation of a less than initially expected oil output cut. This coupled with U.S. data showing an 8.7 million barrel build, and Gulf of Mexico production being disrupted by a pipeline leak, caused Brent and WTI futures to drop 1% and 0.9%, respectively. Despite this, investor concerns were eased when sources revealed the delay.
Open FlipThe benchmark indices have been gaining strength, with the Nifty50 closing at a two month high of 19,811.8 on November 22. Stocks such as Aegis Logistics, JSW Energy, and Gland Pharma saw buying interest, and experts give advice on how best to invest in these stocks with targets and stop losses in view.
Open FlipOver the last 3-year period, small and mid caps stocks have outperformed large caps returns; Nifty 50 – TRI delivering about 16%, while Nifty Midcap 150 – TRI and Nifty Smallcap 250 – TRI giving 31% and 36% returns respectively. But fund managers are now cautiously recommending overweight in large caps, equal weight in midcaps and underweight in small caps due to higher certainty of earnings.
Open FlipThe Tata Technologies IPO is catching investors fancy due to its attractive pricing and parentage of the renowned Tata Group, which has not launched an IPO in 19 years. It presents a niche play in the ER&D and digital solutions industry, especially in automotive segment, with strong financials and reduced dependence on anchor clients. Other IPOs lined up are from ITC Hotels, Oyo Rooms.
Open FlipThe benchmark Sensex and Nifty are expected to open marginally higher on November 23 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 5 points. On the downside, 19,670–19,650 is the key support level, while resistance lies at 19,930. The US markets saw a broad-based rally while yields slumped to their two-month low on Wednesday. In Asia-Pacific!
Open FlipMayank Mehraa, a manager at Craving Alpha and an investment professional for over 10 years, is bullish on pharma and IT stocks which he believes have been neglected for too long. He believes a risk-on rally is possible driven by easing inflation, optimism before the elections and support from global central banks. However, concerns about slowing growth and valuations are likely to limit.
Open FlipIndian Overseas Bank is auctioning off a ₹457 crore non-performing asset portfolio from MSMEs, which it expects to recover at least 60% of the debt in cash. Bidding will begin on November 28th and preference will be given to those with a higher cash portion. This auction indicates the potential rise of NPAs within the retail and MSME accounts due to increasing interest rates in recent times.
Open FlipThe Nifty traded sideways with positive sentiment, while the Bank Nifty experienced significant selling pressure; however, both major indices managed to maintain crucial support areas. There are three recommended buy calls for short term gains: Bharat Forge, India Pesticides and Uno Minda. All stocks demonstrate potential bullish momentum, evidenced by promising indicators such as RSI crossover.
Open FlipForeign and domestic institutional investors have increased stakes in ICICI Securities in anticipation of better delisting terms. Mutual funds have taken an active interest in ICICI Securities, buying up shares as they anticipate a re-rating that would bring better returns for public shareholders than the current swap ratio. However, many analysts see the deal undervaluing the company's growth.
Open Flipression and the start of holiday season, markets swung between gains and losses to finally close in positive territory. A strong US dollar, FII/DII action, dull Asian markets and a falling rupee kept movements mostly muted.Consolidation could continue in the absence of major events.
Open FlipRBI Governor Shaktikanta Das emphasizes the need for NBFCs and banks to ensure sustainable credit growth while avoiding exuberance and be vigilant about any risks posed by concentrated borrowing linkages between them. He urges banks to evaluate their own exposure while NBFCs must focus on expanding sources of funding. He also calls upon MFIs to use flexibility in setting rates judiciously.
Open FlipToday’s market focus will be on key stocks, such as Tata Steel, Indigo, Welspun Corp, Walchandnagar Ind, Cipla and Mamaearth for various reasons (eg. investment announcement, warning from US FDA, labour strike). Tamilnad Mercantile Bank will also be in focus as they have finalised the names of three candidates for MD and CEO post.
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