(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. We’re set for a tepid start to the day, with Nifty futures trading only slightly in the red amid mixed cues from global peers. Foreigners and local investors remain net buyers and that may keep the momentum intact even as the broader market continues to consolidate.  

Morgan Stanley expects $100B market value boost for Reliance 

Mukesh Ambani’s Reliance Industries invested $60 billion from 2021-2023, its shortest investment cycle since decades. Analysts at Morgan Stanley expect a big payoff, potentially adding $100 billion in market cap as new cash flows emerge and business cycles improve, my colleague Alex Gabriel Simon notes. They expect Reliance’s moves into new energy and expanding retail to take market share from the unorganized sector. The stock jumped more than 7% last week to a record, but Morgan expects it to go higher. It has raised its price target by 16%.

Discount brokers may feel the heat from new fee structure rule 

Large discount brokers will be in focus today after SEBI directed stock exchanges to charge uniform fees for all members, irrespective of the size of the market participants. Currently, brokers pay fees based on a tiered system that rewards higher turnover. The regulator argues that this model is unfair and not transparent, and creates a disadvantage for smaller brokers. The new uniform fee structure will take effect on Oct. 1.

Global bond investors flock to India as market opportunities grow

India’s inclusion in JPMorgan Chase & Co’s emerging market index creates ample opportunities for global investors to gain exposure to local debt. More funds will register in India and directly buy the nation’s bonds once the their weight in JPM’s gauge hits 5% by October, my colleagues Saikat Das and Subhadip Sircar note. With the nation’s equities already at record highs, investing in its debt could offer a double bonanza for investors.

Analysts actions:

  • Avenue Supermarts Rated New Buy at Avendus Spark
  • Indian Oil Affirmed at BBB- by Fitch
  • Indoco Remedies Rated New Buy at Ventura Securities Ltd
  • Neogen Chemicals Raised to Buy at IDBI Capital Market
  • Prudent Corporate Rated New Buy at Avendus Spark

Three great reads from Bloomberg today:

  • India ETFs Lead Inflows in June on Growth Optimism Post-Election
  • Adani Joins Tata and Ambani in Race for Elusive India SuperApp
  • Big Take: ‘Upflation’ Frenzy Hits Shoppers Buying Everyday Items

And, finally..

Aditya Birla Group, one of India’s oldest conglomerates, is on a tear. Its debt-laden wireless carrier is recovering, its financial services are flourishing, and its paints venture is gathering momentum. Analysts at Jefferies see higher confidence in the paints business, which is aiming for 50,000 dealers next year. The group’s combined market value is nearing $110 billion milestone, with $20 billion added this year alone!

--With assistance from Alex Gabriel Simon.

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