Swiggy's $1.3 Billion IPO May Face Lukewarm Retail Interest

(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:

Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. The verdict of the US presidential election looms large over Wednesday’s session. Nifty futures are hinting at a slight dip, despite Asian markets mostly trading higher and US shares rallied overnight. However, concerns over slowing earnings and persistent withdrawals by foreign investors may cap any gains in India. Meanwhile, Swiggy’s IPO opens to the public, with some nerves over retail interest.

Swiggy’s IPO may face lukewarm retail interest

Swiggy is a household name in urban India, but that may not be enough to get retail investors excited about the food platform giant’s $1.3 billion share sale when it opens today. Indications from the grey market point to a muted listing-day gain. Combined with its rich valuation, this could make retail investors wary — similar to how they reacted to Hyundai Motor India’s recent debut. Still, foreign investors are likely to be big buyers, given their optimism about India’s long-term consumption growth, even if Swiggy’s shares don’t come cheap.

L&T joins AI boom with E2E stake

Engineering giant Larsen & Toubro’s move to invest $167 million in E2E Networks, a cloud computing firm partnered with Nvidia, shows how Indian conglomerates are getting more serious about AI. Just last month, Nvidia teamed up with Reliance Industries to build AI infrastructure in the country. The craze around AI is clear from the share price jumps in companies such as Black Box and Techno Electric, both of which have more than doubled over the past year. But investors in India would do well be cautious — their global counterparts are becoming wary of overpaying for AI stocks.

Bonds keep their cool before coin-toss US election

Indian government bonds have been a picture of calm in the six months leading up to the close US presidential race, with benchmark 10-year yields moving within a narrow 40-basis-points range. That’s a contrast to US Treasury yields, which have swung by as much as 100 basis over the same period. Foreign investors have certainly noticed this stability. While Indian equities saw record outflows in October, rupee bonds have enjoyed six straight months of net inflows.

Analysts actions:

Three great reads from Bloomberg today:

And, finally..

The US elections may not yet have thrown a clear winner, but for traders, what really matters is how Indian stocks perform in the aftermath of this pivotal event. Indian stocks have enjoyed a seasonal tailwind in the year following the election in the world’s largest economy, based on trends from the previous four cycles. While the recent slowdown in earnings growth has tempered some of enthusiasm for India, long-term investors still see plenty of reasons to stay optimistic.

--With assistance from Ashutosh Joshi and Ronojoy Mazumdar.

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