Stage Shares Ambani With Huang Nvidia Fails To Raise Reliance Shares

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(Bloomberg) — Before the trading day begins, we’ll cover the key news and events that could move the market. Today we look at:

• Reliance AI moment
• Realty faces the test of the festive season
• borrow companies

Good morning, this is Chiranjivi Chakraborty an equity reporter in Mumbai. Stock investors will be happy to see a tough weekend, as the Nifty faces its fourth straight weekly loss. Sales by foreigners remain, with the exodus now being bonds. Upcoming earnings reports from Coal India and Bank of Baroda could set the trajectory for state-owned stocks.

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No AI relief for Reliance stock

Mukesh Ambani sharing the stage with Nvidia’s Jensen Huang during his visit to India should be a sentiment booster for Reliance Industries investors. However, shares of India’s most valuable company fell, although this PR period had no effect. Reliance shares have fallen more than 16% from their record high in July, as the main energy and retail verticals struggle, while the telecom business faces new challenges from Elon Musk. This reflects the broader market climate, where investors are now demanding to see earnings growth after paying steep valuations for many years.

Time calculation for developers

Realty stocks were among the notable laggards on Thursday, with the sectoral index down more than 1%. All eyes will be on DLF and Macrotech Developers for their festive season outlook when they announce their quarterly numbers on Friday. The realty index has fallen 10% from its June peak. While anecdotal evidence points to an ongoing boom in the property market, share prices suggest a possible peak may be imminent.

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Corporate borrowers are facing tough times

The cost of borrowing for companies has risen to a two-week high and is expected to remain elevated as liquidity in the banking system tightens. Increased consumer spending ahead of the Diwali festival has reduced excess cash, while RBI Governor Shaktikanta Das warned against rate cuts and the central bank’s crackdown on errant creditors also forced them to do higher, making financing more expensive for companies.

Analyst actions:

• Colgate India Raised to Buy at Centrum Broking; PT 3,781 rupiah
• DCB Bank Raised to Buy at Dolat Capital; PT 150 rupiah

Three great reads from Bloomberg today:

• Indian Bond Flows Highlight Impact of Swap Trade Unwinding
• China Refuses to Remove Tariff Policy After Record Cuts
• Big Take: Wall Street Takes Tax-Loss Harvesting to the Next Level

And, finally..

It’s not just stocks – foreigners are also pulling in Indian debt. Index-eligible bonds saw their first monthly outflows in six months as foreigners shed their popular swap trades used to tap the $1.3 trillion sovereign debt market. Fully Accessible Route bonds – a special category of debt that is freely available to foreigners – have seen outflows of around 40 billion rupees ($476 million) so far this October.

—With assistance from Subhadip Sircar and Kartik Goyal.

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