(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
- Waaree IPO demand
- Hyundai India bulls
- Chemicals stocks
Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Hyundai Motor India’s record $3.3 billion IPO listing takes center stage, despite a tepid response from retail investors. That could deflect attention from an otherwise sluggish start to the day amid Asian and Wall Street weakness.
A glimmer of hope for Hyundai IPO bulls
Hyundai’s unlisted shares traded at a 5% premium just a day before their market debut later today, according to websites tracking unofficial prices. This comes as a relief to IPO subscribers, since the shares were trading below the issue price in recent days. The IPO coincided with weakening demand for cars, and an auto stock index has been among the worst performing sub-gauges this month. Opening day performance will also hinge on whether wealthy individuals and retail investors, who were largely indifferent to the issue, decide to buy shares in the open market.
Waaree IPO surge shows retail investors still in the game
Retail investors returned in hordes for Waaree Energies Ltd.’s IPO, helping the share sale garner full subscription just hours after it opened on Monday. This sudden shift in mood suggests that last week’s lukewarm response to Hyundai Motor India’s IPO was just a blip! The usual retail frenzy has returned with vigor for a company that’s India’s largest solar panel producer and backed by marquee Wall Street firms.
Value opportunity seen in chemicals stocks
The prolonged slump in chemical stocks is making the sector look like a value pick, with some analysts betting on a revival in global prices. However, Axis Securities points out that China’s aggressive capacity additions post-Covid and unused capacities could keep global prices in check. Indian companies that stand to benefit are those that can boost market share through higher volumes or process innovations. Axis is bullish on Deepak Nitrite, SRF and Navin Fluorine.
Analysts actions:
- City Union Bank Raised to Buy at Avendus Spark; PT 182 rupees
- Tata Consumer Cut to Add at ICICI Securities; PT 1,225 rupees
- AU Small Finance Rated New Neutral at JPMorgan; PT 700 rupees
Three great reads from Bloomberg today:
- Indian Rupee Faces Slow Grind Lower on Oil, China Rotation Risks
- Fed’s Daly Says She Doesn’t See Reasons to Stop Cutting Rates
- Big Take: Vicious Cycle Plagues 12 Million People in the Amazon
And, finally..
The stimulus-induced rally in Chinese equities has helped assets managed by the largest China-focused ETF listed in the US close the gap with its counterpart that invests in Indian equities, according to data compiled by Bloomberg. US investors have poured billions of dollars into the China ETFs after the country unleashed measures to jumpstart growth, while cutting back on investments in India. The jury is still out on whether these measures will pay off, but many believe Chinese stocks are closer to hitting their bottom valuations compared to Indian stocks right now.
--With assistance from Ashutosh Joshi, Alex Gabriel Simon and Kartik Goyal.
©2024 Bloomberg L.P.