Bank stocks climb 1% making it best performing sector; Hyundai IPO in focus
Source: Business Standard
Bank stocks had a good day on Thursday, climbing 1 per cent, making them the best performing sector. | Representative Picture
Nifty futures signal a positive start on Friday, tracking gains in most other Asian markets. US equities fell overnight following hotter-than-expected core inflation that reduces the probability of a jumbo rate cut by the Federal Reserve at its November meet. The earnings season started on a sober note with software bellwether Tata Consultancy Services missing analysts’ profit estimates.
Hyundai IPO in Focus
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The excitement around India’s largest IPO is being dampened by evident weakness in demand for cars in India as well globally. Traders say the premium for Hyundai shares in the IPO grey market has halved over the last week to below 10 per cent. The closely watched IPO ‘s success will be crucial to how investors respond to subsequent public offerings.
Banks’ earnings outlook remains dim
Bank stocks had a good day on Thursday, climbing 1 per cent, making them the best performing sector. The bounce comes after a rough patch — a gauge of lenders fell 7 per cent in the previous six sessions — and may not sustain. Analysts at Elara aren’t very optimistic about the upcoming September-quarter earnings. They expect ongoing pressure on net interest margins, a possible rise in defaults, softer loan growth, and deposit growth that’s below trend.
Another false dawn for steel stocks
Investors betting that China’s stimulus bazooka would boost steel demand are disappointed once again. Not only has the package been underwhelming, but there’s also been an increase in steel imports from China, according to Systematix. Out of 10 analyst ratings on Tata Steel issued this month, only one is a ‘buy’. JSW Steel fared slightly better, with three ‘buys’ ratings out of nine recommendations.
Analysts actions:
Kotak Mahindra Cut to Hold at Nirmal Bang; PT Rs 2,048
Cummins India Cut to Sell at Goldman; PT Rs 2,900
ideaForge Rated New Add at IIFL; PT Rs 801
Three great reads from Bloomberg today:
China Investors Expect $283 Billion of New Stimulus This Weekend
Tata’s Brother Among Contenders for Head of $165 Billion Group
Big Take: Uber, Lyft Use Loophole to Deny NYC Drivers Millions
And, finally..
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 11 2024 | 9:10 AM IST
