The Shanghai Cooperation Organisation summit in Tianjin aimed to reshape global order. Xi Jinping proposed a new vision challenging U.S. dominance. India, China, and Russia signaled alignment. India emphasized 'One Earth, One Family, One Future' and demanded action against terrorism. The summit addressed digital governance, energy cooperation, and financial self-reliance.
Emkay Investment Managers' Kashyap Javeri believes India's sovereign rating upgrade and inclusion in global bond indices will attract significant foreign portfolio inflows, enhancing its standing among emerging markets. While short-term allocations depend on global factors, sectors with export exposure and companies benefiting from lower capital costs stand to gain. Automobile, CDMO Pharma, and capital goods sectors present exciting investment opportunities.
Vaibhav Shah of Mirae Asset Investment Managers (India) advocates for international diversification, citing limited domestic exposure to high-growth themes like AI and semiconductors. He highlights the potential for better risk-adjusted returns and currency diversification through global investments. The Mirae Asset Global Allocation Fund offers a strategic mix of developed and emerging market exposure, leveraging Mirae's global expertise.
Optivalue Tek Consulting will launch its IPO on Tuesday. The IPO aims to raise Rs 51.82 crore. The price band is set at Rs 80-84 per share. Investors can subscribe for a minimum of 3,200 shares. The company plans to use the funds for product development and expansion.
Oil prices experienced an increase due to growing concerns about potential supply disruptions stemming from the escalating conflict between Russia and Ukraine. Ukrainian drone attacks have significantly impacted Russia's oil processing capacity, leading to heightened anxieties. Geopolitical tensions are further amplified by China's pursuit of a new global order, challenging the U.S.
Asian stocks saw modest gains, driven by technology and AI sectors, particularly Alibaba's surge. Investors are eyeing upcoming jobs and inflation data, along with the Federal Reserve's rate decision, amid historical September market weakness. Meanwhile, Indonesian markets face political risks, and longer-maturity bonds brace for a potentially challenging month.
Jubilant Ingrevia shares are recovering after a period of decline. Domestic operations and limited US exposure shield it from tariffs. EU's anti-dumping duty on Chinese choline chloride benefits the company. Capacity expansion and agriculture sector opportunities drive growth. Cost optimization measures are expected to improve margins. The company anticipates higher choline chloride exports to Europe.
Mark Mobius believes India is still a strong market. He says US tariffs will impact some Indian exports. However, Indian entrepreneurs are finding ways to navigate these challenges. Mobius expects foreign investors to return to India in a few months. The Indian government's efforts to reduce bureaucracy will also help manufacturers.
Emerging-market equities experienced a rally, driven by AI-related stocks in Hong Kong and China, following Alibaba's report of surging AI revenue. Alibaba's shares jumped significantly, boosting the MSCI EM Index. Meanwhile, the Indonesian rupiah saw the largest gain against the dollar in Asia as Bank Indonesia intervened to stabilize the currency amid political concerns.
Mumbai stock market is set for a change. Derivative contracts will now expire on different days. National Stock Exchange contracts move to Tuesdays. Bombay Stock Exchange contracts will expire on Thursdays. This shift follows regulator Securities and Exchange Board's directive. Traders anticipate increased activity earlier in the week. The change aims to reduce market volatility.
