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(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
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Insurance stocks
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Kalyan’s woes
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Cement revival
Good morning, this is Alex Gabriel Simon, an equities reporter in Mumbai. Nifty futures are pointing to a steady start even as key Asian markets are upbeat this morning. Flows into Chinese equity exchange traded funds spiked on Friday on hopes that the conversation between President Xi Jinping and US President-elect Donald Trump may signal better trade relations between the two countries. That may not be good news for India at a time when foreign investors remain net sellers. Quarterly earnings from new-age tech firms Zomato and Paytm will be among the key quarterly earnings in focus today.
Insurers shine amid weak earnings season start
Life insurers have emerged as surprise outperformers in India’s corporate earnings season, which has otherwise seen a lackluster start. Ventures controlled by leading lenders HDFC and State Bank of India have delivered impressive numbers, driven by their strong distribution networks, improved operating metrics, and parentage benefits. HDFC Life’s strong new business addition and lower-than-expected impact of policy surrender value rules have sparked a rally in sector, with most players closing the week on a high. Additionally, insurance firms are benefiting from investors’ shift toward defensive stocks, as signs of a market rebound begin to fade.
Shares of India’s No. 2 jeweler slump as rumors mount
Kalyan Jewellers has had a rough start to the year, with the shares plummeting about 35% this month alone. That’s a reversal for the jeweler’s shares, which had more than doubled in 2024, and in the preceding year. The slump may be due to a compression in margins stemming from its franchisee-model expansion and concerns over falling gold prices due to a strong dollar, said Deven Choksi, managing director at DRChoksey FinServ. Lower gold prices could also result in mark-to-market inventory losses. For now, various rumors about the sudden decline are swirling.
Worst may be over for cement makers
Cement prices, currently near the lowest in four years due to sluggish demand, are showing signs of recovery, according to JM Financial. This follows the recent consolidation within the industry that’s led to a 3% sequential increase in prices in December, the most in 10 months. The brokerage is bullish on ACC, Ambuja Cements, Birla Corp. and Ultratech Cement.