Market Bizzz

The dollar weakened against the euro and sterling as concerns about a far-right French government eased. Market focus shifted to key reports and comments from the Federal Reserve for rate cut clues.

GameStop shares fell 11.6% after CEO Ryan Cohen hinted at operating fewer stores without detailing cash plans. Cohen aims for a more profitable business with a smaller network and value-added items.

It is difficult to put incremental money in these pockets and so ABB is 50 times EV by EBITDA, 80-90 times earnings and probably the next four-five-year order book is probably in the price.

A large chunk of this month’s $11.2 billion share sale was allocated to foreign investors, leading one person involved in the process to describe it as the deal the IPO was supposed to be. Its success could create a template for future Aramco sell-downs, which now seem likely as the Crown Prince – who’s known as MBS – seeks cash to help fund his multitrillion-dollar Vision 2030 economic transformation project.

Indian corporates are likely to reduce overseas dollar loans due to expensive current rates. There is a ‘huge pent-up demand’ for investing in local firms’ equity. Borrowing costs in the US have increased sharply, leading to a preference for IPOs and follow-ons in India.

The post-election rally has taken everyone by surprise and both indices now are currently sustaining well above their short-term moving averages after testing their 200 day moving averages.

​Axis Securities says that the market may continue to find direction based on a “Feel good” factor on policy continuity, pre-budget expectations, progress of monsoon, development on the CAPEX agenda, fiscal consolidation path and expectation of rural recovery in the second half.​

​Our selection criteria focused on stocks with a market capitalization under Rs 1000 crore and a share price below Rs 20. Additionally, we chose stocks with a last traded volume exceeding 50 lakh​

The Dow Jones Industrial Average fell 57.94 points, or 0.15%, to 38,589.16. The S&P 500 lost 2.14 points, or 0.04%, at 5,431.6 and the Nasdaq Composite added 21.32 points, or 0.12%, at 17,688.88.

​The entire space, some of them have gone to 5x, so never write it off. And I think valuations are reasonable in some of the large names like HCL Tech, even a bit of Tech Mahindra with new leadership coming in. But I think the focus has to shift from services to more products, software and platforms.