Listen In: Power stocks that are headed for a re-rerating | The Economic Times Podcast

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Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let’s start with the headlines first.

– Kumar Mangalam Birla may infuse own capital into Vodafone Idea
– Future, Amazon may go for out-of-court settlement
– Coal stocks reach crisis point in more plants
– Seven new PSUs this week, Defence Ministry approves Rs 65,000-cr orders

Now lemme give you a quick glance on the state of the markets.

Dalal Street is likely to have a negative start this morning. Nifty futures on the Singapore Exchange traded 83 points lower at 8:50 hours (IST). Asian shares opened lower on Tuesday after Wall Street slipped, as investors looked for fresh news with inflation worries continuing to weigh. MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.97 per cent.

Elsewhere, the yield on 10-year Treasuries was at 1.61%. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 94.423. Bitcoin paused at about $57,000. Oil prices fell for the first time in four days on Tuesday, taking a breather, analysts said, after weeks of gains fuelled by a rebound in global demand that is contributing to energy shortages in economies from Europe to Asia. Brent crude was down 26 cents, or 0.3%, at $83.39 a barrel.

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That said, here’s what is making news.

Green-energy investments should ensure higher valuations for Reliance Industries (RIL), the country’s most valuable company. Its recent acquisitions in the green-energy space – integrated solar photovoltaic factory of REC and Sterling and Wilson – have underscored RIL’s intent to dominate the energy landscape in an environment where fossil fuels are expected to play an increasingly diminished role.

A decade-long supply overhang seems to be now history as factories hum back to life across India, potentially causing a re-rating for inexpensively valued electricity-generating stocks. Sharp likely recovery in demand, primarily from industrial and commercial segments, lifted sentiment on power stocks, said analysts. Their top picks are Tata Power, IEX, Coal India, NTPC, Power Grid Corporation and JSW Energy.

New SIP account registrations increased to a record 2.68 million in September 2021, according to data from the Association of Mutual Funds in India (AMFI). It was nearly 2.5 times higher than the long-term average. It was the fourth consecutive month of new SIP registrations topping 2 million. The high pace of new SIP registrations boosted net additions to 1.654 million in September 2021 — an all-time high — which offset the pressure from 1.026 million SIP accounts being discontinued in the same month.

LASTLY,

Brokerages have a mixed view on TCS following a weaker-than-expected earnings performance for the quarter ended September 30. CLSA, Credit Suisse and Macquarie have an outperform rating on the stock while Goldman Sachs has a buy rating. IIFL and Kotak Institutional Equities have an add rating. Emkay and IDBI Capital have hold rating while Investec retained its sell recommendation on TCS.

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NOW Before I go, here is a look at some of the stocks buzzing this morning…

Aditya Birla Group chairman Kumar Mangalam Birla is considering infusing some of his own capital into Vodafone Idea while the Vodafone Group may sell at least a part of its stake in tower firm — Indus Towers — and channel the proceeds into the loss-making telco. This will be followed by external funding, ET reported.

Future Group and Amazon are likely to start negotiations for a possible out-of-court settlement of a year-long legal standoff over the proposed sale of Future Group assets to Reliance Retail once the Singapore arbitrator gives its initial rulings later this month.

Sudan has conceded in the arbitration tribunal that it owes ONGC Videsh $100 million for a pipeline built by the Indian company, setting the stage for a favourable award in the $530-million dispute that also includes claims over non-payment for oil lifted by the African government.

Digital-focused brokerage Angel One, formerly known as Angel Broking, has been on an average adding almost four lakh new customers each month so far this fiscal, as it has on-boarded a massive 2.38 million customers during April-September, taking the overall client base to 6.52 million.

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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 with us for all the market news through the day. Happy investing!



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