(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:
- Ola beats pre-IPO valuation
- Zomato shrugs off block sale
- Market-linked firms surge
Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Indian stock traders brace for a lukewarm start after Asian markets saw selling pressure and a muted close on Wall Street overnight. Investors may stay wary of taking outsized bets for the rest of the week ahead of Federal Reserve Chair Jerome Powell’s speech at Jackson Hole on Friday.
Ola’s tops pre-IPO value expectation
Ola Electric Mobility is emerging as one of India’s most successful large IPOs. Its shares have surged 80% from the offer price, giving the company a market value of more than $7 billion. This valuation is what Ola’s founder had initially sought before facing investor pushback. Despite being India’s top e-scooter maker, it remains unprofitable. Yet, the growing adoption of EVs, combined with the monster rallies in new-age tech firms such as Zomato and PB Fintech, continues to fuel investor frenzy in Ola’s shares.
Zomato shrugs off Antfin’s share sale, closes higher
Nothing seems to faze the rally in India’s largest food delivery company Zomato. Antfin’s $569 million secondary market sale found eager buyers, with the stock finishing the day in the green. That underscores the strong demand for the consumer tech giant, which is finally living up to the hype that surrounded its IPO three years ago. What’s next for the Bengaluru-based firm? Closing the market value gap with the US-based delivery giant DoorDash Inc., which has a $25 billion lead on it.
Bull run continues for stock market-linked companies
The surge in shares of companies tied to the stock market shows that the bullish fervor remains strong. From stock brokers like Angel One and ICICI Securities to money manager UTI Asset Management, these companies were among the most sought after on Tuesday and are likely to remain in demand in the coming days. Strong data on investor participation, from mutual fund flows to trading accounts, point to further earnings upside. The only concern is valuation, which may deter those who care about it.
Analysts actions:
- Tata Motors Raised to Investment Grade by S&P on Group Support
- Tata Steel Upgraded to BBB by S&P, Outlook Stable
- Tech Mahindra Cut to Hold at CLSA; PT 1,625.78 rupees
- Godrej Agrovet Cut to Reduce at Axis Capital Limited
Three great reads from Bloomberg today:
- A $2 Trillion Bill Looms as Ports Become Political Pawns
- Byju’s Hedge Fund Ally Seeks to Keep Lawyers as Cash Runs Out
- RBI Governor Das Says Inflation Must Slow to 4% For a Rate Cut
And, finally..
The rupee has sat out the rally in Southeast Asian currencies against the dollar this month, with the Reserve Bank of India’s intervention likely curbing any gains. The central bank has been supporting the rupee in recent months, helping it beat regional peers in the first half of 2024. Even while the rupee underperformed, it remains one of the least volatile currencies in the world thanks to the central bank’s tight grip on it.
--With assistance from Malavika Kaur Makol and Ronojoy Mazumdar.
©2024 Bloomberg L.P.
