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 Savio Shetty, an equities reporter in Mumbai. Nifty futures point to a muted start, as most Asian markets trade lower this morning on President Trump’s latest tariff threats. Foreign investors snapped up Indian shares worth 48 billion rupees on Tuesday and bulls are hoping for this trend to persist. Meanwhile, Hexaware Technologies Ltd. will begin trading today, marking the country’s first billion-dollar IPO this year.
Hexaware to list as most of 2024 large IPOs underwater
Carlyle-backed Hexaware Technologies is set to debut on the bourses at a time when investor appetite for risk has shrunk considerably. Undermining the mood further is the disappointing performance of last year’s large IPOs, with six of the top 10 trading below the offer price. As India’s first billion-dollar public offering of 2025, Hexaware’s listing will be a litmus test of investor sentiment for new issues. The only factor in the company’s favor is that IT has fared better relative to every other sector, save for banking.
Strong earnings may cushion slide in realty shares
Shares of property developers have been the stock market’s stragglers so far this year, with a sector gauge down over 20%. However, analysts at IIFL believe the pessimism may be overdone, as most companies are likely to meet their guidance. Following the sharp correction, valuations now appear “reasonable,” supported by a robust outlook for pre-sales of under-construction properties. IIFL remains bullish on DLF, Brigade Enterprises and Prestige Estate Projects.
EMS firms stare at redemption
Once hailed as the poster children of India’s booming equity markets, electronics manufacturing companies have now been swept up in the ongoing rout. Some of the top players like Amber Enterprises and Syrma SGS have slumped nearly 30% from their recent peaks. However, the selloff may have been overdone, as most firms posted decent numbers for the latest quarter, potentially putting them on course for a strong rebound.
Three great reads from Bloomberg today:
After a 13% drop from its September highs, the NSE Nifty 50 Index is showing signs of support, particularly on the weekly charts. The index is now resting on a key trendline extending from the March 2020 lows — a level that previously held firm in March and October 2023. While it remains to be seen if the support will hold this time, bulls have something to hang on to for now.
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With assistance from Kartik Goyal and Alex Gabriel Simon.
This article was generated from an automated news agency feed without modifications to text.
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