Equities are poised for a positive start on the final trading day of the week, boosted by soft February inflation data that raises the possibility of further interest rate cuts by the central bank. Asian stocks are also on the rise following a slower-than-expected increase in consumer prices in the US.
Retail investors are continuing to embrace the “no pain, no gain” strategy, with domestic liquidity support becoming increasingly important as Indian stocks struggle to find a bottom. Despite the market challenges, retail investors are maintaining their faith in mutual fund investments. While overall inflows into equity mutual funds slowed in February, systematic investment plans, or monthly recurring plans, still attracted close to a record $3 billion. This demonstrates that small investors are committed for the long term.
Citi analysts believe that Indus Towers may not face a significant threat from Starlink’s entry into the Indian market. Despite a nearly 5% drop in Indus Towers’ shares on concerns about Starlink’s impact, Citi argues that premium pricing for satellite services and potential interference issues could limit Starlink’s scalability. Additionally, Indus Towers has already established landing stations for satellite players, although this has not yet had a significant impact on revenue.
Analysts are optimistic about the prospects of rapid commerce firms such as Zomato and Swiggy, despite recent declines in their stock prices. While concerns remain about store expansion plans and intense competition impacting margins in the short term, JM Financial analysts anticipate improvements from the September quarter as both companies approach their expansion targets by June. They also expect a reduction in marketing spends, discounts, and customer rebates, noting that recent stock price corrections have made valuations more attractive.
In a positive development, President Trump’s tariff policies have led to a 20% drop in crude oil prices from their January highs, bringing them to a key four-year support zone. This decline is beneficial for India, a major oil importer, especially amidst a slowing economy. Lower crude prices could help narrow the current account deficit at a time when foreign investors are withdrawing funds. Coupled with the improving prospects of an RBI rate cut, this could potentially boost sentiment among struggling stock bulls.
For more stories like this, visit bloomberg.com.
