Market Bizzz

FDI equity inflows into India rose 43.1% YoY to $13.6 billion in Q2 FY25. Total FDI grew 29.4% YoY to $19.8 billion. August saw the highest FDI of $6.3 billion in the quarter.

Home First Finance promoters are likely to sell a 14.7% stake via a block deal on Monday. The floor price is set at Rs 968, an 8% discount to the current market price. Kotak and Nomura are the brokers for the deal.

Dr Reddy’s Laboratories will be in the spotlight on Friday following the launch of toripalimab, an immune oncology drug designed to treat adults with a rare and aggressive form of head and neck cancer originating in the nasopharynx.

Overseas investors are identifying opportunities in India despite significant outflows. Notable inflows have been seen in industrials, healthcare, and telecommunication stocks. Prime Minister Modi’s push for manufacturing and increases in telecom prices are contributing factors. Financial stocks have been less attractive due to narrowing margins and asset quality concerns. Overall market trends indicate sector-specific investments are prominent.

Mayuresh Joshi from Marketsmith India discusses the current performance of IT stocks and advises on key stocks like Infosys and Persistent. He also recommends Adani Ports due to its promising outlook. Joshi highlights PSU banks’ potential, especially Bank of Baroda. Additionally, rural and infra stocks like Swaraj Engines and Azad Engineering are mentioned as promising investments.

Indian equity indices opened flat on Thursday, mirroring Asian markets, amid US policy concerns. Sensex and Nifty50 saw marginal gains. Adani Group stocks surged up to 9.3% following clarifications on a US indictment. HUL and ITC led Sensex gainers, while Infosys and Tech Mahindra declined.

Goldman Sachs maintains a Buy rating on Marico, citing resilience and growth despite inflation. Jefferies is bullish on Colgate-Palmolive, highlighting its expansion and growth strategy.

Motilal Oswal recommends buying L&T Finance, setting a target price of Rs 180. The company reported strong Q2 earnings and is strategically positioned for growth, despite moderating its MFI business due to industry stress. Analysts believe L&T Finance is well-placed to weather the current credit cycle and anticipate a stock rerating.

Ola Electric shares are in focus following the launch of two new affordable electric scooter ranges, the S1 Z and Gig, starting at Rs 39,000. The scooters feature removable batteries and are aimed at urban commuters and gig workers. Deliveries will begin in April 2025. Ola’s shares rose 5.7%, despite a 41% decline over the past three months, with a market cap of Rs 32,406 crore.

Hyundai Motor is attracting attention from global brokerage firms like JPMorgan and Morgan Stanley, both giving it an ‘Overweight’ rating. They predict substantial returns for investors, setting target prices of Rs 2,200 and Rs 2,418 respectively. Hyundai’s strong SUV and EV portfolio, coupled with India’s growing auto market and premiumization trend, positions it for success.