>> Select midcaps, smallcaps seeing solid price target upgrades
>> Metal stocks in for some profit taking
>> Cement price hikes likely to lift stocks in a depressed market
>> Voda fund-raising talks hit a hurdle
Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh.
Let’s start with a quick glance on the state of the markets.
Dalal Street might just start from where it had left on Thursday, with another bout of correction looking imminent this morning. Nifty futures on the Singapore Exchange traded some 157 points lower at 7 am (IST), signalling further selloff. Asian stocks followed US peers lower after Fed Chairman Jerome Powell avoided any indication that the US central bank might step up bond purchases to hold down longer-term interest rates.
Oil prices leapt towards the $65 mark, after the Opec+ alliance surprised traders with its decision to keep output unchanged. The US dollar strengthened nearly 1%, rising against nearly all major peers, But the bitcoin fell with other risk assets. Bullion is coming under pressure. In international markets, gold price dropped 0.4% this morning to $1,691.92 an ounce.
That said, here’s what else is making news.
Select midcaps and smallcaps are seeing solid price target upgrades after December quarter earnings, as their prospects have improved with the economy showing signs of being on the mend. NCC, KNR Constructions, JK Lakshmi Cement and Timken India are among the stocks that have seen their consensus price targets rise 25 to 60% since January 1, Bloomberg estimates showed. Among the largecaps, SBI has seen the biggest target price upgrade.
This list may show you where to look in the ongoing selloff
Cement stocks are also having their day in the sun. They surged on Thursday bucking the declining trend in other frontline shares, after leading manufacturers raised retailing prices of the primary building material in the peak season for construction. The move, analysts said, points to both lower competitive intensity and better-than-expected demand revival. Prices climbed by about Rs 20-30 per bag, or up to Rs 600 a tonne, in the south and Rs 10-15 per bag in other states, as leading manufacturers passed some of the input cost increases.
Tatas have put to rest all speculation around a partnership with Tesla. Tata Sons Chairman N Chandrasekaran on Wednesday said there was “no dialogue” with the Elon Musk-owned car company for a partnership in India. He said Tata will do it on its own and confirmed the group’s aggressive plans for Tata Motors and its British subsidiary Jaguar and Land Rover in the electric vehicles space.
It remains to be seen if this clarity can dampen some of the euphoria that we have seen on the Tata Motors counter in recent weeks.
Vodafone Idea’s big-ticket fundraising plans have hit air pocket following differences with key members of the prospective lenders’ consortium such as Oak Hill and Varde Partners over funding terms and furnishing of guarantees in case of payment defaults. While talks between the two sides have not fallen through completely, the telecom JV between UK’s Vodafone Group and Aditya Birla Group is already exploring other potential funding partners and is confident of securing funding by the end of this month
LASTLY…
Metals stocks such as Hindalco, Vedanta, Hindustan Copper and Nalco could be in for a bout of profit booking, as rising US bond yields are causing a global sell-off in the dollar-denominated assets. Market strategists expect a short-term correction of 5.5-12% in these stocks from recent record highs. The selling pressure in the stocks was evident in the higher delivery volumes versus the three-month average as some of these stocks corrected 1.5-5% on Thursday.
Well, be cautious over there!
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Wipro has announced acquisition of London-based global management and tech consultancy Capco for $1.5 billion to bolster its presence in the BFSI space.
A consortium led by Foresight Group may rope in a private equity investor as it readies a war chest to acquire Shipping Corporation of India that has been put up for privatisation
Metal tycoon Lakshmi Mittal has revived plans to build a steel plant in the iron ore-rich Odisha as he doubles down on his bet on India.
Anil Ambani-led Reliance Power on Thursday said the company, along with partner JERA of Japan, has achieved financial closure for its 745 MW Bangladesh unit
Bank of Baroda, the lead lender heading the resolution for Reliance Home Finance, has petitioned the Delhi High Court asking it to vacate its stay on disposal of assets of the Anil Ambani firm in a case involving inter-corporate deposits of Shapoorji Pallonji Group.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing!
