Good morning, this is Alex Gabriel Simon from Mumbai. Indian equities are poised for a quiet start today despite global markets being upbeat over possible U.S. Fed rate cuts. While benchmark indices ended last week with their second straight gain, concerns loom this week as new U.S. tariffs take effect on Wednesday. A recent bond market selloff may also push up corporate borrowing costs, adding to investor caution. Market focus will center on IT stocks, Q1 GDP data, and sovereign bonds.
InterGlobe Aviation (IndiGo) joins the Nifty after a 30%+ rally this year, backed by strong analyst sentiment—20 of 25 rate it a ‘buy’. However, Crisil warns that operating profits of leading airlines may fall 14% this fiscal, despite low fuel prices. Still, passenger traffic is expected to rise 7–9%, showing continued travel demand.
Real estate developers recorded their best-ever quarter, with pre-sales up 45% year-on-year. Yet, realty stocks remain under pressure due to high valuations and modest volume growth, down 4% over last year.
In a positive development, IDBI Bank’s divestment moves ahead, with LIC’s stake reclassified as public, clearing a key hurdle. The government plans to invite bids by year-end.
