Equities look set for a positive start on the last trading session of the week, thanks to soft February inflation data that increases the possibility of more interest-rate cuts by the central bank. Gains in Asian stocks should also help, which rose on slower-than-expected increase in consumer prices in the US.
Retail investors embrace no pain, no gain strategy
Domestic liquidity support is becoming more crucial than ever as Indian stocks are having a hard time finding a bottom. But despite the market’s struggles, retail investors are not losing faith in mutual fund investments. In February, overall inflows into equity mutual funds slowed, but systematic investment plans — or monthly recurring plans still mopped up close to a record $3 billion. This shows that mom-and-pop investors are in it for the long haul.
Citi sees limited threat to Indus from Starlink’s entry
Indus Towers’ shares dropped nearly 5 per cent Wednesday on concerns Starlink’s entry into India may curb the tower operator’s growth. But Citi begs to differ. The brokerage says that the likely premium pricing for satellite services and interference issues could make it tough for Starlink to scale, meaning its services would likely focus on filling coverage gaps in rural areas rather than posing a big threat. Also, Indus has already set up landing stations for satellite players, though it’s not yet a meaningful contributor to revenue.
Analysts see bright spots for rapid commerce firms
Shares of rapid commerce firms Zomato and Swiggy extended their losing run on Wednesday, falling for the sixth and fourth straight session, respectively. Investors remain concerned as store expansion plans and intense competition are expected to weigh on margins in the near term. However, JM Financial analysts anticipate improvement from the September quarter as both companies approach their expansion targets by June. They also expect the firms to temper marketing spends, discounts, and customer rebates, while noting that recent stock price corrections have made valuations more attractive.
And, finally..
President Trump’s tariff policies have led to a 20 per cent drop in crude oil prices from their January highs, pushing them to a key four-year support zone. For India, a major oil importer, this fall is a blessing amid a slowing economy. Lower crude prices could help narrow the current account deficit at a time when foreign investors are pulling out dollars. Add to that the improving prospects of an RBI rate cut, and this might be just what the battered stock bulls need to turn the mood around.
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