Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at:
- IPO Hopes for NSE
- NSE’s Expiry Day
- Defence stocks
Good morning, this is Savio Shetty, an equities reporter in Mumbai. The outlook for stocks this morning is as hazy as the city’s skyline, with Nifty futures signalling a tepid start and Asian shares struggling for traction. Key focuses today include a potential stake sale in IndiGo by the promoter family and NSE’s plans to apply for Tuesday expiry, alongside BSE Ltd. Additionally, the weather office’s forecast for monsoon rains, crucial for local equity market performance in the next quarter, will be closely watched.
NSE’s inches toward IPO with SEBI deal
The National Stock Exchange may finally be on the verge of reviving its IPO, which has been stuck for nearly a decade. It’s offering a record 10 billion rupees ($118 million) to settle a long-pending dispute with SEBI, a move that could clear the path for a long-awaited public listing. The regulator is inclined to accept the offer, according to people familiar with the matter, likely removing the final hurdle to NSE getting a no-objection certificate. Meanwhile, investor interest remains strong: NSE’s private market valuation has jumped from $36 billion in September to $50 billion, according to a post on Linkedin by US-based investment firm Drew Investments.
NSE eyes Tuesday’s expiry day to take on BSE
The battle between India’s two major stock exchanges just got more interesting. The NSE, the world’s largest derivatives exchange by volume, is planning to shift its contract expiry day from Thursday to Tuesday, a move aimed at rival BSE Ltd., according to a person familiar with the matter. This follows a new SEBI rule that limits expiry days to either Tuesday or Thursday to curb excessive trading. With BSE already using Tuesday and NSE currently on Thursday, the stage is set for a head-to-head clash for F&O market share.
Premium valuations of defence can sustain: IIFL
The Nifty India Defence Index hit a record high on Monday even as a section of the market is beginning to fret over expensive valuations. IIFL analysts expect the sector to outperform others, with strong order visibility and positive sentiment helping sustain premium valuations. Besides increased spending on defence locally, global budgets too are growing, creating export markets for Indian companies, they say. Bharat Electronics is IIFL’s top pick by virtue of having the best execution track record among state-owned companies.
Analysts actions:
- Varun Beverages Rated New Buy at Goldman; PT 600 rupees
- Rainbow Medicare Raised to Add at Choice Equity; PT 1,474 rupees
- HealthCare Global Cut to Reduce at Choice Equity; PT 575 rupees
Three great reads from Bloomberg today:
- Why This River in India and Pakistan Is Causing Angst: QuickTake
- EU Plans to ‘Fast Track’ Trade Talks With US Amid Tariff Fight
- Big Take: Zuckerberg’s MAGA Phase Risks Leaving Meta Friendless
And, finally..
Automobile stocks are picking up pace once again, with a gauge tracking the sector set to record its largest monthly outperformance of the Nifty 50 Index in a year. Expectations of a normal monsoon and demand boost from income tax cuts are bringing back interest into the sector after several months of underperformance since August last year. Healthy fourth-quarter earnings from Maruti Suzuki as well as Mahindra & Mahindra are also supporting sentiment.
More stories like this are available on bloomberg.com
Published on May 27, 2025
