Indian Food Delivery Company Zomato And Jio Financial Eye Nifty Inclusion

(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:

Zomato, Jio Financial Eye Nifty Spot
Investors flip IPO shares quickly
Consumption growth a silver lining

Good morning, this is Alex Gabriel Simon, an equities reporter in Mumbai. Indian markets are set for a muted start after the main gauges ended the month’s first session at another new high. While investors are turning cautious, the Nifty is still a coiled spring that keeping inching up.

Zomato, Jio Financial edge closer to Nifty 50 inclusion

The odds on food-delivery company Zomato and Jio Financial entering the Nifty next year got a significant boost after the market regulator Friday approved rules for F&O eligibility. Nuvama Wealth Management expects that both stocks will be added to the derivatives segment under the new norms, meeting a key requirement to become benchmark stocks. If all goes according to plan, Zomato and Jio Financial could join Nifty before mid-2025.

Investors flip IPO shares quickly amid market frenzy

Investors are dumping more than half their IPO shares within a week of the stock’s trading debut, highlighting the bullish fervor that’s made the country one of the top spots globally for new share sales this year. According to a study by the market regulator, banks flipped about 80% of their allocation during this period. The data also supports the market’s suspicion that investors tend to sell good stocks quickly while holding onto loss-making ones for too long, hoping to recover their capital.

Consumption growth may shift focus to staples stocks

Private consumption emerged as a bright spot, despite India’s economy growing at a slower-than-expected pace last quarter. Consumption, which makes up about 60% of the economy, saw its fastest expansion in nearly two years. For traders, this trend may be accelerate the shift away from capex-led stocks. The data also suggests that consumption, previously concentrated largely in the premium segments, is likely to broaden, bringing staples stocks like Hindustan Unilever, Dabur and Nestle into focus.

Analysts actions:

Gujarat Gas Raised to Neutral at Phillip Secs; PT 580 rupees
Coforge Cut to Hold at Indsec Securities & Finance

Three great reads from Bloomberg today:

World’s No. 1 Air-Conditioner Maker to Expand Capacity in India
T. Rowe Manager Who Predicted Yen Shock Sees Another One Coming
India’s Deposit Crunch Has Taste of China’s Past: Andy Mukherjee

And, finally..

Overseas funds can’t get enough of India’s government bonds. Last month, they bought 239 billion rupees ($2.8 billion) of these index-eligible securities, marking the fastest buying spree since JPMorgan Chase & Co. announced their inclusion in September last year. Expectations of a rate cut by the Fed also contributed to this surge. These inflows are expected keep coming as India’s weight in JPMorgan’s index is set to reach 10% by March 2025.

--With assistance from Ronojoy Mazumdar, Chiranjivi Chakraborty and Ashutosh Joshi.