(Bloomberg) -- 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:
- Ola Electric’s historic test
- India Inc. feels the heat
- An opening for textile makers
Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. As a wild week for global markets comes to a close, investor anxiety is easing somewhat. Nifty futures point to a strong start to the day, mirroring the upbeat sentiment in global markets. This improved outlook may benefit SoftBank Group Corp.-backed Ola Electric, which makes its highly anticipated market debut today.
E-scooter major gears up for its big listing moment
Ola Electric’s $734 million IPO, India’s largest since the Life Insurance Corp.’s splashy debut in May 2022, is treading a familiar path. Like many Indian start-ups, Ola is hitting the market while still in the red. Some of these firms initially struggled, with shares falling below their IPO prices before eventually bouncing back as they shifted their focus to profitability. Zomato and PB Fintech, for example, have nearly doubled their share prices this year. The big question now is whether Ola will follow a similar trajectory.
Corporate India feels the heat
Extreme weather has become a major concern for Indian corporates and stock analysts. The word ‘heatwave’ appeared over 80 times in NSE Nifty 500 firms’ analyst call transcripts this June quarter, up from just seven times a year ago. The impact has been broad, from construction workers unable to work in over 50°C heat to banks struggling to efficiently collect loan payments. While other issues like elections and supply chain problems also hurt profits, this earnings season highlights how massive the climate change impact on businesses has become.
Bangladesh crisis is $250 million/month export opportunity
India’s readymade garment makers, such as KPR Mills, Gokaldas Exports and Arvind, are set to benefit from the political turmoil in Bangladesh. The country had surpassed India in capturing market share surrendered by China, becoming a key player in global RMG brands’ supply chains. However, the current crisis presents an opportunity for Indian firms to boost exports by up to $250 million per month, potentially expanding to $350 million in the medium term, according to CareEdge Ratings.
Analysts actions:
- Century Ply Raised to Neutral at YES Research; PT 701 rupees
- Lupin Raised to Overweight at JPMorgan; PT 2,400 rupees
- Raised to Buy at Elara Secs India; PT 2,392 rupees
- Raised to Buy at KR Choksey; PT 2,443 rupees
- Safari Ind India Cut to Hold at IDBI Capital Market
Three great reads from Bloomberg today:
- Stock Meltdown Turns Spotlight on EM Asia’s Underowned Markets
- SoftBank-Backed Billionaire to Double Fortune on E-Scooter IPO
- BOJ’s ‘Damage Control’ Leaves Traders Guessing About True Aims
And, finally..
The Reserve Bank of India has often said it doesn’t target a particular level for the rupee but works to keep things stable. That’ll be the focus in the coming days, as letting the dollar-rupee pair to breach the 84 mark all at once might attract speculators testing the central bank’s limits. One thing’s for sure, the RBI has more than enough firepower to handle any dips, with a record $675 billion in reserves.
--With assistance from Chiranjivi Chakraborty, Harshita Swaminathan and Ronojoy Mazumdar.
©2024 Bloomberg L.P.
