Market Bizzz

Brokerage firm Jefferies has retained its buy recommendation for IndusInd Bank and Piramal Pharma, while JP Morgan holds a neutral stance on Colgate. Additionally, Investec and Goldman Sachs have also issued buy ratings for Dixon Technologies and ITC.

Over the last three years, the drivers of domestic demand have been urban consumption and premiumisation. This is changing. From here on, domestic demand – will be driven by a recovery in rural demand and a pickup in mass consumption. A good monsoon and a bumper kharif harvest are expected to improve farm incomes. Furthermore, higher social spending by state governments is also helping the rural economy recover cyclically for the first time after COVID-19.

In the near term, the markets may remain volatile amid geo-political conflict, upcoming US Presidential elections and Q2FY25 result season.

Major asset management firms like BlackRock, Amundi, and Janus Henderson’s Tabula have launched new ETFs focused on Indian debt following JPMorgan’s inclusion of Indian bonds in its emerging-market index. This is expected to attract $5 to $10 billion, with professionals driving initial interest.

Gurmeet Chadha of Complete Circle Consultants highlights selective investments amid a market sell-off. They are focusing on financials like ICICI and SBI, tier II banks like Federal Bank, select NBFCs, and some auto ancillary stocks. Chadha is optimistic about PSU banks, especially after positive updates from Bank of Baroda, and believes current corrections are temporary, anticipating a quick bounce back.

Goldman Sachs has revised Indian equities from overweight to neutral due to slowing economic growth and weakening corporate earnings. High valuations and declining consumer spending contribute to a cautious outlook, with a projected 10% upside for the NSE Nifty 50 Index.

Bajaj Finserv will announce its September quarter earnings today. Previously, the company saw a 10% year-on-year profit rise for the June quarter. Allianz may exit their joint ventures, but remains committed to the Indian market. Bajaj Finance reported a 13% net profit increase for the September quarter.

Nykaa’s top executives, Anchit and Adwaita Nayar, discuss their omni-channel expansion strategy in the Middle East, focusing on a high consumption market with underdeveloped e-commerce infrastructure. They emphasize profitability goals and notable market trends, including a strong online play and growth in men’s lifestyle consumption. Despite stock price concerns, long-term value creation remains a priority.

The SME IPO of Danish Power is set to open for subscription on Tuesday and will close on October 24. The company plans to raise ₹197 crore through this offering, aiming to list its shares on the NSE SME platform.