(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets.

Good morning, this is Ashutosh, an equities reporter in Mumbai. Finally it’s Friday and traders are ready to sign off a week that saw the stock market reach new peaks. With the main indexes set for a fifth weekly advance, the focus is shifting to the earnings season, which kicks off next week. Guidance from software giants like Tata Consultancy Services will be closely watched as a barometer of the much-awaited recovery.

Rising freight costs lift Indian shipping stocks 

Global shipping rates have started rising again, with the WCI Shanghai to Rotterdam rate spiking 139% since May, according to IIFL Securities. Asian ports face severe congestion, with delays extending into August. This benefits Great Eastern Shipping Co., whose stock has jumped over 25% since June 4. Those gains may accelerate as the June and September quarter earnings get a boost from the worsening global shipping traffic, according to the brokerage.

Mixed signal for consumer demand: cold beverages shine, tea falters

Consumer demand is a mixed bag. Urban areas have recovered from Covid lows, but rural regions are still struggling. Analysts are hoping the monsoon and some populist measures will give demand a boost. Companies with summer products like cold beverages and glucose drinks have done well in the north and central India, according to Elara Securities. On the flip side, categories like tea have taken a hit.

Large caps get larger in revamp of stock categories

India’s mutual fund industry body just updated how it classifies stocks based on their market value. A company needs to hit 843 billion rupees to be considered large-cap (up from 670 billion in December), and 276 billion rupees to be a mid-cap (up from 220 billion). Some big names in the auto sector like Hero Honda, Samvardhana and Bosch got bumped up, while insurers ICICI Prudential Life and ICICI Lombard got moved down to the mid-sized segment, according to Nuvama Institutional Equities.

Analysts actions:

  • Aegis Logistics Rated New Buy at HDFC Securities
  • Cello World Reinstated Buy at William O’Neil

Three great reads from Bloomberg today:

  • India’s Hopes for Tesla Investment Cool as Musk Ceases Contact
  • Surging Hoax Bomb Threats on Indian Airlines Cause Flight Chaos
  • Singapore Housing Race Leads to Early Marriages That Some Regret

And, finally..

State-run defense enterprises are clear winners in the rally that lifted the stock market to successive records this week. Five manufacturers, including Hindustan Aeronautics and Mazagon Dock have added about $50 billion in market value year to date. With Modi administration’s push to make defense equipment locally and its aim to double exports over the next five years, this winning streak looks set to continue. 

 

--With assistance from Chiranjivi Chakraborty.

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