Market Bizzz

​I think SEBI is engaged with that. So, let me not intrude into SEBI’s territory and start talking about the stock markets. I think SEBI is fully seized of what is happening in the markets and we have our regular interactions with the SEBI as a part of the FSDC, the Financial Stability and Development Council, we have also a subcommittee which is chaired by the governor.

Atul Suri says the bull market is about those sectors and themes that did not do well for a decade. In this market most people are going to be in positions in private sector banks and largecap IT, but the bull market is happening somewhere else. The market is never about consensus.

In a parliamentary address on Tuesday, Bank of Japan Governor Kazuo Ueda hinted at the possibility of an upcoming interest rate increase, contingent upon forthcoming economic indicators. Ueda emphasized the necessity for further evaluation to ascertain if underlying inflation trends align with the central bank’s 2% target over the long term.

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.​