Gold remained steady on Friday, poised for its seventh consecutive weekly gain, driven by expectations of further U.S. interest rate cuts and concerns over a government shutdown. The precious metal, a traditional safe haven, touched an all-time high on Thursday. Markets anticipate a significant Fed rate cut this month, bolstering gold's appeal.
Wall Street indexes closed at record highs, primarily driven by the technology sector and AI chip companies, amidst a U.S. government shutdown. Investors, monitoring private labor data, anticipated potential Fed rate cuts. The shutdown also raised concerns about its duration and impacted specific stock performances.
WeWork India is set to launch a 3,000 crore IPO, which will reduce the promoter's stake to 48.1%. Despite higher revenue and Ebitda than competitors, the company's recent FY25 profit of 128 crore is primarily attributed to a deferred tax credit. Geographic concentration and lower occupancy rates in mature centres compared to peers are noted.
India's credit growth, currently below 10%, is poised to accelerate as new RBI measures could unleash 5 lakh crore in demand. Easing corporate exposure norms and allowing M&A financing are key drivers for this potential surge. While these relaxations are positive, weak credit demand remains a significant hurdle for faster economic expansion.
Consumption and financial services stocks are in focus due to recent GST boosts and RBI policy changes. Analysts highlight several stocks, including United Spirits, Aditya Birla Capital, and Axis Bank, which saw above-average rollovers to the October series. Based on technical and derivatives data, experts recommend fresh long positions and anticipate potential northward moves for these scrips.
RBI's dovish monetary policy prompts investors to recalibrate fixed income portfolios. Fund managers advise a core allocation to accrual funds, with a tactical bet on duration funds. This strategy anticipates at least one 25-basis point rate cut this fiscal year, potentially boosting bond prices and offering capital gains.
Jio Financial Services has been the most traded stock with borrowed funds from margin trading, with a combined amount financed of about 1416.6 crore. Tata Consultancy Services and Tata Motors also have funded bets worth 1,365.8 crore and 1,388.4 crore, respectively.
