(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:
- BSE in spotlight
- Shrimp exporters
- Rupee falls, RBI eyed
Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. Nifty futures are set for a weak start this morning amid mixed cues from Asian markets, which are being weighed down by Chinese shares. The good news, though is that it’s going to be a busy day for earnings, with biggies like Reliance Industries and HCL Tech due to report their quarterly earnings.
BSE in demand as NSE volume spillover eyed
Shares of BSE, Asia’s oldest exchange, have jumped more than 50% since mid-September. Driving the optimism are hopes that its rival, the rival National Stock Exchange, could go public shortly after clearing some long-standing cases related to unfair practices. On top of that, many in the market believe that some of the trading volumes from the NSE’s discontinued weekly contracts might shift to BSE, providing a potential upside.
Ecuador’s woes signal revival for shrimp exports
Shares of Indian shrimp exporters, including major players such as Avanti Feeds and Waterbase, have struggled in recent months. After shedding around 20% from their recent peaks, a recovery may be around the corner. Analysts at InCred Equities predict stronger profits in 2025, as Ecuador — a key rival in shrimp exports — struggles following the withdrawal of state subsidies.
As rupee falls, markets look to RBI for relief
On Friday, the rupee broke past the key psychological barrier of 84 per dollar for the first time, as foreigners continued to dump stocks and bonds. Adding to the concerns are firm crude oil prices and doubts about further rate cuts by the US Federal Reserve. However, there’s still hope in the market that the Indian central bank’s formidable reserve level and steady passive bond inflows will provide a floor. Nomura sees the rupee rising to 81.90 by the end of March.
Analysts actions:
- DMart Cut to Underweight at Morgan Stanley; PT 3,702 rupees
- Larsen Rated New Overweight at JPMorgan; PT 4,360 rupees
Three great reads from Bloomberg today:
- China Leaves Economists Wanting More Action to Defeat Deflation
- Volatile Bond Market Puts Traders on Defense Amid Fed-Cut Doubts
- Big Take: Catastrophe Bonds Will Help Florida But Failed Jamaica
And, finally..
Fast-fashion retailer Trent’s market value crossed $35 billion on Friday, the same day its chairman, Noel Tata, was appointed head of Tata Trusts. Trent is now nearing Avenue Supermarts’ valuation, the company behind DMart, India’s most valuable retailer. Trent’s success comes from its focus on affordable fashion and push into smaller cities, which has made its shares among the best-performing in the retail world this year. Trent’s shares are up about 170% this year. Meanwhile, DMart is hurting from the growing popularity of quick commerce services like Zomato and the IPO-bound Swiggy.
--With assistance from Alex Gabriel Simon, Kartik Goyal, Chiranjivi Chakraborty and Ronojoy Mazumdar.
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