(Bloomberg) --
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets.
Good morning, this is Alex Gabriel Simon, an equities reporter in Mumbai. Looks like we’re in for a flat start going by the trend in other Asian markets and ahead of a trading holiday Wednesday. That said, it’s going to a busy day for earnings, with Bajaj Auto and L&T Finance among companies reporting earnings.
More good news likely for Vodafone Idea
The chances of a third private player standing tall in the telecom sector are increasing. After tariff hikes, Vodafone Idea might receive another lifeline, as the top court agrees to hear its case regarding alleged errors in computing dues owed to the telecom department, according to a local media report. A favorable ruling could save the firm up to 350 billion rupees in liabilities. Citi put the stock on positive catalyst watch following the report, while maintaining a price target of 23 rupees.
Auto stocks running out of steam
Earnings and commentary for automakers, including Maruti Suzuki India and Tata Motors will be closely watched. Brokerages such as Citi anticipate an increase in costs due to rising commodity and marketing expenses. Additionally, there are signs of softening demand, especially for cars, with some local media reports indicating inventory build up at dealerships. An index tracking auto stocks has slightly declined over the past month, in contrast to a nearly 5% gain in the benchmark.
Small lender’s earnings renew hopes for sector
Bank of Maharashtra’s impressive first-quarter number offer a glimpse of what may be in store for its larger peers this earnings season. The small state-run lender reported a near 20% growth in net interest income from last year, with an 11 basis point improvement in net interest margin. This bodes well for investors of State Bank of India and Bank of Baroda, who will report their results in the coming weeks.
Analysts actions:
- Bharti Hexacom Rated New Overweight at JPMorgan; PT 1,280 rupees
- SJS Enterprises Rated New Buy at Monarch Networth; PT 965 rupees
Three great reads from Bloomberg today:
- Apple’s India Sales Surge 33% to Record in Shift From China
- Big Take: Xi’s Great Economic Rewiring Cushions China’s Slowdown
- Copper Market’s Biggest Whale Fuels Speculation of a Major Shift
And, finally..
About a month after falling to a record low against the dollar, the rupee is edging toward an all-time low territory once again. It declined along with emerging market peers as traders favored safe-haven assets following the assassination bid on Donald Trump. The Reserve Bank of India is likely to use its reserves to prevent sharp declines, but a larger risk-off move globally could see the central bank allow the rupee to strike a new low, my colleague Ronojoy Mazumdar notes.
--With assistance from Chiranjivi Chakraborty and Ronojoy Mazumdar.
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