Market Bizzz

​Every company has a journey so every company might start small, but some of those then are able to acquire market share and become big. So I am sure there are companies in microcap tomorrow, which can become a small cap, mid cap, and maybe, a small percentage can also go and become a large cap tomorrow.

Investors are preparing for central bank meetings from the US, Europe and Japan this week and the US inflation data. The MSCI Asia-Pacific shares index outside Japan lost ground, but the Nikkei 225 climbed 0.7%, and the Hang Seng Index opened 0.3% higher. China’s economic recovery remains weak. Expectations of further policy stimulus have been bolstered by weak manufacturing output and export figures. Investors are unsure which path the Federal Reserve will take this week, but they believe the European Central Bank meeting on Thursday will set higher interest rates and remain hawkish.

Gold prices slipped slightly in Asian trading as the dollar held strong and investors prepared for several central bank policy meetings this week, anticipating a likely pause in rate hikes by the US Federal Reserve. The focus is now on the release of US consumer price and producer price index data on Tuesday and Wednesday, respectively. Gold usually increases in uncertain times, however, the low-interest rates also make the zero-yield asset more attractive. Physical gold demand decreased in China and India last week, leading to discounts being offered by dealers.

Maruti Suzuki India’s addition of Jimny to its fleet and a blitzkrieg of EV model launches could see its stock become a multibagger in the next four to five years, says Vinit Bolinjkar, Head of Research at Ventura Securities. Maruti Suzuki launched Jimny and plans to release more models during the next year, with Bolinjkar predicting a 50% upside in Maruti stocks over the next two years, becoming a multibagger in the following four to five years. Analysts are unsure how the Jimny product launch will fare and see competition as fierce, with the EV market being a key arena for Maruti to improve its performance.

The Nifty50 index remained within a narrow trading range, and closed with a slight gain of 29.30 points on a weekly basis, despite flirting with important resistance zones. Weak market breadth and the very low level of the India VIX are delaying an otherwise imminent breakout, and if the breakout occurs in these conditions, a questionable rally is expected. The RRG analysis shows Nifty Consumption, Auto, and MidCap 100 indices are inside the leading quadrant and may outperform broader markets, while Nifty Financial Services and BankNifty have shifted to the weakening quadrant.

Life Insurance Corporation of India (LIC) has raised its stake in state-owned steel production firm SAIL by about 2 per cent through an open market acquisition. LIC bought 8.26 crore shares or 2.001 per cent of equity capital at an average price of Rs 66.18 per unit, the insurer said in a regulatory filing

The Securities and Exchange Board of India (SEBI) has cancelled the registration of Emkay Commotrade for giving access to illegal ‘paired contracts’ on the defunct National Spot Exchange (NSEL). SEBI said it raised doubts on the company’s competency to act as a registered securities market intermediary and that the company cannot be called a ‘fit and proper person’ for holding the certificate of registration. The NSEL’s ‘paired contracts’ trading scheme saw investors incur a loss of INR 5,500 crore ($736.8m). Emkay’s clients must withdraw or transfer their securities or funds within the next 15 days.

Indian electric scooter maker Ola Electric is kicking off meetings with potential investors in Singapore and the US to gauge interest in its planned $1bn initial public offering. The fundraising drive, expected in late 2023, will target $600m to $1bn. CEO Bhavish Aggarwal will hold talks including with BlackRock, Singapore’s GIC, and T Rowe Price. Though Ola is yet to file regulatory papers for approval, it is thought to be planning to do so by August. It wants to explain the growth and potential of India’s nascent electric vehicle market to investors.