Foreign brokerages bullish on Ultratech Cement and Dalmia Bharat

Indian Markets:

• Nifty 50 Movement: Indices settled at 16,988.40 after sliding as much as 16,828.35 in early afternoon trade.
• On Monday, the major equity benchmarks experienced a significant decline amidst a period of turmoil in the global banking sector, concerns of a potential recession, and a substantial outflow of foreign fund flows.
• With the exception of the FMCG and Media sectors, all other sectoral indices on the NSE witnessed a decline. Specifically, the Metals, IT, and PSU banks sectors experienced a significant slump.

Global Markets:

• European shares advanced while Asian markets tumbled on Monday after UBS agreed to buy its banking rival Credit Suisse in a $3.2 billion takeover over the weekend.
• The Peoples Bank of China left the loan prime rates for 1-year and 5-year unchanged, after cutting the reserve requirement ratio for almost all banks by 0.25 percentage points last week. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August last year.
• Wall Street closed lower on Friday as investors pulled back from positions in bank shares amid lingering concerns over the state of the U.S. banking sector.

Stocks in Spotlight:

• Indian cement manufacturers are receiving significant attention from foreign brokerages, who are placing their bets on these companies due to falling energy costs and an expected surge in volumes during the upcoming election season. While some analysts have raised concerns about the ability of cement price hikes to sustain given the companies’ rush to meet their year-end volume targets, others have emphasized the importance of cost optimization and savings in driving better performances.
• The stock price of Adani Enterprises fell by over 3 percent following reports that the Adani Group has suspended work on a petrochemicals project worth Rs 34,900 crore at Mundra. This decision comes as the group looks to concentrate on its resources to streamline its operations and address investor concerns in the wake of a report by US short-seller Hindenburg Research, which led to a massive selloff in group shares.
• Goldman Sachs, has given a “buy” rating to Godrej Consumer, with a target of Rs 1,100 per share. According to Goldman Sachs, the company’s turnaround is expected to gain momentum as it has already gone through a reset phase and taken several tough decisions in the past 12 months to enhance long-term growth prospects. However, most of these initiatives have had a near-term impact on FY23 earnings, causing some pain in the short term.

News from the IPO world?

• SEBI, investment bankers turn cautious as IPO market faces uncertainty
• Cabinet approves listing of IREDA on stock exchanges via IPO by past sale of govt stake
• Sula Vineyards shares tumble as 90 day mandatory IPO lick-in period ends

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