Analyst Stock Recommendations:
- Eicher Motors raised to ‘add’ and Buy for price target: Rs 2,795
- Divi’s Labs cut to ‘reduce’ at Neal Bhai price target: Rs 4,628
Rupee Traders To Watch Flows From Paytm Share Sale
Rupee traders will watch for inflows as India’s biggest initial share sale opens for subscription. Bond traders are likely to weigh the impact of a cut in excise duty on gasoline and diesel on inflation and government finances.
- The float by One97 Communications, the parent of Paytm, is priced in a band of Rs 2,080-2,150 and aims to raise as much as Rs 18,300 crore ($2.5 billion); offer closes Nov. 10
- USD/INR fell 0.3% to 74.4600 on Wednesday
- Onshore markets were shut Thursday and Friday for the Diwali holiday
- Implied opening from forwards suggests spot may start trading around 74.24
- 10-year yields little changed at 6.36% on Wednesday
- Global funds sold net Rs 401 crore of India stocks Wednesday: NSE
- They did not sell sovereign bonds under limits available to foreign investors, and withdrew Rs 63 crore of corporate debt
- State-run banks bought Rs 738 crore of sovereign bonds on Nov. 3: CCIL data. Foreign banks sold Rs 359 crore of bonds
Source: Bloomberg