Market Movers: Zomato hits record high in wait of passive inflow deluge

Earlier this month, MSCI added the stock to one of its indices. FTSE Russell is likely to do the same. The inclusion in the indices of the two global index aggregators is likely to cause inflows of around Rs 2,000 crore over the coming weeks.

On top of that, Edelweiss Securities expects the stock to be classified as a large-cap when AMFI releases its bi-annual list in January. The move could send large-cap mutual fund managers scampering to add the stock to their portfolio given the company’s robust growth potential.

The shares of the company soared over 5 per cent to hit a record high during the session in preparation for what seems like a deluge of passive money.


Steel stocks are losing sheen

What started as a great year for steel sector stocks is likely to end on a whimper. One of the best wealth-generating cohorts in the Indian equity market this year is facing a possibility of muted returns and possible selling in the coming months.

Earlier this year, steel stocks rallied on ever-increasing product prices, swelling margins and shrinking debt on the balance sheet. Today, the sector is facing the possibility of not being able to sustain the price increases as the demand environment remains muted and China suffers.

Steel futures in China have been tumbling for a while and as domestic prices reach parity with export prices, analysts are wondering if the peak in terms of price hikes is now behind. Shares of Tata Steel, JSW Steel, SAIL, and Jindal Steel fell 1.5-3.3 per cent.


Sigachi makes jaw-dropping debut

If investors needed a sign of whether this bull market still had legs, they got it today. The primary market had been dishing out gems throughout the year, with several debutant stocks doubling on their listing day and IPO subscription numbers hitting multiples of hundreds. Yet, nothing would have prepared investors for the jaw-dropping debut made by pharmaceutical company Sigachi Industries today. The company’s stock is listed at a premium of 250 per cent to its issue price, in effect, proving that perhaps you don’t need time in the market to have multibaggers in your portfolio. Sigachi’s performance will only fuel the hunt for stocks that will make them millionaires overnight.


Thermax back in spotlight

The September quarter earnings of capital goods manufacturer Thermax will give further optimism to investors. The company’s new business wins were higher than before the pandemic, suggesting that demand for intermediate goods is more than just green shoots.

With the government expected to ramp up infrastructure spending in the coming five months and the private sector likely to join the party next year, things are looking up for the old-economy stock. No surprise then that Kotak Institutional Equities upgraded the stock to a buy from sell as Thermax’s results strengthen confidence in corporate capex revival.