Indian Software Stocks Lag on Weak Earnings
Good morning, I'm Chiranjivi Chakraborty in Mumbai. Indian markets may open slightly higher today, supported by Wall Street’s rally and positive regional cues. However, activity could stay muted due to a weak start to earnings season and uncertainty around a potential US-India trade deal. Key things to watch today:
Key Market Movers
US-India Trade Talks: India aims for a better deal than Indonesia, which cut tariffs from 32% to 19%. With rising trade tensions and competition from Hong Kong, India needs favorable terms to attract supply chain investors under the “China+1” strategy.
SBI Share Sale: State Bank of India’s $2.9 billion share sale will test investor appetite. It comes amid pressure on bank margins and slow loan growth. Axis Bank’s Q1 results later today could further sway sentiment in the banking sector.
Tesla’s India Launch: Morgan Stanley expects limited impact on local automakers due to Tesla’s high pricing. The imported Model Y costs ?6 million—five times India’s average car price—keeping it in the premium 1% market segment.
Analyst Updates
HCL Tech: Cut to Sell at Elara; target ?1,490
ICICI Lombard: Cut to Hold at Investec; target ?2,150
INOX India: Initiated at Buy by Monarch Networth; target ?1,500
In Focus
Software Exporters Struggle: Nifty IT continues to underperform, facing its third straight quarter of lagging the broader market. A weak start to earnings adds to the pressure. Still, technical indicators show the sector nearing support levels, with RSI near oversold territory—suggesting downside may be limited.
Worth Reading
Trump considers 10–15% tariffs on over 150 countries
China's crackdown on industrial overcapacity and what it means for commodities
A chilling story on tourism's dark side: Murder on Rainbow Mountain
share News