Anand Shah of ICICI Prudential AMC expresses caution on India's IPO market, citing stretched valuations and unrealistic growth assumptions. He believes genuine value lies in established listed companies with proven earnings, strong business moats, and rational pricing, especially amidst a time-correcting market.
Foreign investors have withdrawn substantial funds from top Indian stocks. However, a shift is occurring with expectations that the worst is over. Domestic mutual funds are increasing their holdings, providing market stability. Analysts are optimistic about India's future growth prospects, projecting potential gains for the Nifty index.
Global markets opened subdued as investors adopted a cautious stance. US equity futures edged lower, mirroring a lackluster Wall Street session. Investors are keenly awaiting economic data and Federal Reserve policy signals. The yen weakened against the dollar, prompting warnings from Japanese authorities. Oil prices extended their decline. Attention is also on the US government shutdown's resolution.
Tata Steel reported a significant profit jump in the September quarter. India operations drove strong volume growth. The Netherlands unit saw a sharp rise in operating profit. The company also narrowed losses in its UK operations. Sales increased year-on-year. Earnings before interest, tax, depreciation, and amortisation rose substantially.
Mutual fund managers actively rebalanced portfolios in October as equities rose, with significant activity in the banking sector. Private banks and finance companies saw both substantial buying and selling. Selective interest also emerged in IT stocks like HCL Tech and Tech Mahindra, indicating a focus on undervalued companies with potential for valuation expansion.
Fujiyama Power Systems is set to raise 828 crore via IPO to boost solar panel and battery production, aiming to reduce import reliance. The company has shown impressive revenue and profit growth, with expanding EBITDA margins. Despite elevated debt, its valuation appears attractive compared to peers, making it a compelling option for risk-tolerant investors.
The Indian rupee's trading range has significantly tightened recently. This is due to increased intervention by the Reserve Bank of India. The central bank is actively managing the currency to prevent it from reaching record low levels. This strategy marks a shift in policy. Market participants are observing the RBI's actions closely.
A Sebi-formed committee has proposed classifying the Sebi chairman and whole-time members as 'insiders' under insider trading rules. This move aims to prevent them from trading on price-sensitive information, aligning Sebi with global regulatory practices and addressing past conflict-of-interest concerns.
