Broad Strokes, August 28, 2024
- 8sapience
- BroadStrokes , Analysts , Banks
- 28 Aug, 2024
RBI Outlines Financial Future Agenda
- RBI Governor Shaktikanta Das presented a five-point agenda for India’s financial future at the Global Fintech Festival 2024.
- Key focus areas: financial inclusion, digital infrastructure, cybersecurity, sustainable finance, and financial infrastructure.
- Financial Inclusion Index improved from 53.9 in March 2021 to 64.2 in March 2024.
- Potential interlinking of India’s UPI with US payment systems discussed.
NBCC Shares Surge on Bonus Issue Proposal
- NBCC shares up over 5% following announcement of potential bonus share issuance.
- Stock near 52-week high at Rs 192.40.
- Impressive performance: 292.47% increase over the past year, 144% gain in 2024.
- Q1 FY25 results show 39% rise in net profit.
Tata Elxsi Shares Decline After 7-Day Rally
- Nearly 5% decline following Kotak Securities’ ‘sell’ rating.
- Concerns over high valuations (61x one-year forward earnings) and near-term challenges.
- Support levels at Rs 8,600, resistance at Rs 9,100.
- Caution advised despite strong recent performance.
SME IPO Market Booming
- Record-breaking year: 173 listings raising over Rs 5,965 crore.
- QVC Exports listed at 87% premium on NSE SME platform.
- Grey market premiums for upcoming IPOs exceeding 100% in some cases.
- Experts caution about potential overvaluation and market sustainability.
Zee-Sony Merger Settlement Impact
- Zee Entertainment shares up nearly 3% after settlement announcement.
- Mixed brokerage outlook: Citi maintains ‘Sell’ (TP: Rs 137), UBS neutral (TP: Rs 180).
- Zee shares down 46.5% YTD, reflecting ongoing challenges.
- CCI approves RIL-Disney merger deal, intensifying competition.
Swiggy IPO Attracts High-Profile Investors
- Raamdeo Agrawal and Amitabh Bachchan’s family office acquire stakes.
- Swiggy targeting $15 billion valuation, aiming to raise $1-1.2 billion.
- Growing confidence in quick commerce sector.
- Analysts bullish on Zomato, citing turnaround and growth potential.
SEBI Warns Investors on SME Stocks
- Cautionary advisory issued regarding risks in SME investments.
- Concerns over unrealistic portrayals of operations and inflated stock prices.
- Investors advised to conduct due diligence and avoid unverified social media tips.
- SME market volatility and speculation could lead to significant financial losses.
Analyst Predictions for Bank Stocks
- Potential returns of 27-50% predicted over the next year.
- Top picks include Bajaj Finserv and Lupin.
- Power Finance Corporation (PFC) shows bullish indicators.
- Positive outlook based on fundamentals and technical patterns.
