Bond yields signalling boom time
Eicher sales growing, but stock has limited upside for now
ABB stock breaks 13-year consolidation range
Crypto traders see ray of hope in HDFC Bank report
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked set for a gap-up start as Nifty futures on the Singapore Exchange traded some 50 points up at 7 am (IST). Among other Asian markets, shares fluctuated in Japan, South Korea and Australia. US stock markets were closed on Monday for an official holiday.
Elsewhere, the dollar weakened and then recouped some ground. Unusually quiet cryptocurrencies showed some signs of volatility in holiday-stricken trading with bitcoin rising 4% to $37,000 while its smaller rival Ethereum climbed 8% to $2,578. Oil climbed as Opec and its allies forecast that inventories will fall sharply this year..
That said, here’s what is making news?
In what is being seen as a ray of hope for cryptocurrency in India, the in-house economic research team at HDFC Bank, India’s largest private lender, in a report said it “thinks it is just a matter of time before Indian investors have legal access to crypto plays.” That’s when HDFC Bank has been busy clamping down on cryptocurrency transactions. The researchers said Bitcoin, like gold, can evolve into a major asset class. “Interestingly, we find a positive correlation between gold and Bitcoin’s daily returns. Though the correlation was weak to start with, it has been rising,” the report said.
The ABB India stock on Monday decisively broke past a 13-year consolidation phase to trade above Rs 1,600 apiece. Analysts said if it sustains above that level, it can easily give a 20% return in the near term, according to technical analysts. ABB India is better placed to gain from the expected pickup in capex in the coming months, said analysts.
The trend of growing sales volume of Eicher Motors seen in the March 2021 quarter is likely to continue in the current and the next fiscal year given the sustained demand for its recently launched model, rising export, and scheduled new bike launches. However, a steep valuation premium over the mass market peers and intense competition in the premium bike segment may limit the upside for the stock in the medium term.
India’s economy grew at a better-than-expected rate of 1.6% in the March quarter from a year ago, but the severe second Covid wave has created economic uncertainty and dampened sentiment, economists said. The fourth-quarter performance helped moderate the full FY21 contraction to 7.3%, from the 8% decline estimated earlier, still the steepest in at least 70 years.
LASTLY,
The momentum in registration of property transactions in Mumbai, the country’s biggest and costliest realty market, has started receding owing to the combination of the lockdown and the government’s decision to withdraw the benefit of lower stamp duty. The government’s revenue collection has also fallen, given the lower number of deals, even though stamp duty rates are higher.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
In a move that will trigger an open offer under Sebi’s takeover laws, US-based Carlyle has consolidated its investment in PNB Housing Finance and has brought in Aditya Puri as a minority investor
Adar Poonawalla has taken over as chairman of Magma Fincorp, the NBFC he acquired in February 2021 and has brought in Vijay Deshwal from ICICI Bank to run the business.
TVS Motor Company on Monday said it will launch two new products in Iraq as part of its expansion plan in that country
Civil engineering and construction company J Kumar Infraprojects on Monday said it has bagged an order worth Rs 1,307.88 crore from the Mumbai Metropolitan Region Development Authority.
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
